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Item 3B2 - Monthly Financial Report13 CITY OF S0UTHLA1<,..-E 0 MONTHLY FINANCIAL REPORT 11 1 April 2024 PERFORMANCE AT A GLANCE Year to Date 1 3 year Trend Reference General Fund Exp. Vs. Rev. Positive Positive Page 3 Sales Tax Revenue (2 months 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 Positive I = Positive variance or negative variance <1 % compared to seasonal trends. Warning I = Negative variance of 1-4% compared to seasonal trends Negative I = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 5/16/2024 ECONOMIC INDICATORS NATIONAL ECONOMY National GDP: 1.6% GDP is defined as the output of goods and services produced by labor and property located in the United States, The Bureau of Labor and Economic Analysis reported that the "advance" estimated GDP for the 1st quarter of 2024 increased at a rate of 1.6%. In the 4th quarter of 2023, GDP increased at a rate of Housino Starts: t/ 0.4% Single-family housing starts in April 2024 were at a seasonally adjusted rate of 1,031,000, which is 0.4% below the previous month revised figure of 1,035,000. UNEMPLOYMENT RATES National: 1/ 3.9% The National Unemployment rate for April 2024 slightly increased to 3.9% when compared to 3.8% in March 2024. State-wide: V 3.9% The Texas Unemployment rate for March 2024 (preliminary) remained unchanged at 3.9% from February 2024. DFW Area: 3.9% The Dallas/Fort Worth/Arlington Metropolitan Area unemployment rate for March 2024 (preliminary) decreased to 3.9% when compared to 4.2% in February 2024. FINANCIAL ACTIVITY $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 2020* 2021* 2022* 2023* 2024* *October- March Construction permit values City of Southlake Monthly Financial Report 2 5/16/2024 OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2024 GENERAL FUND FY 2024 FY 2024 FY 2024 REVENUE FY 2024 EXPENDITURE 2023 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 855,780 $ 3,014,402 $ (2,158,622) $14,000,000 Nov $ 2,752,442 $ 4,319,159 $ (1,566,717) Dec $ 10,340,523 $ 5,289,496 $ 5,051,027 $12,000,000 Jan $ 13,058,828 $ 4,234,303 $ 8,824,525 Feb $ 9,417,330 $ 4,129,715 $ 5,287,615 $10,000,000 Mar $ 2,984,935 $ 3,928,073 $ (943,138) $8 000,000 Apr $ 2,359,208 $ 3,850,929 $ (1,491,721) May $ - $ - $ $6,000,000 Jun $ $ $ Jul $ - $ $ - $4,000,000 Aug $ $ $ Sep $ $2,000,000 Tot $ 41,769,046 $ 28,766,077 $ 13,002,969 CHART OUTLOOK: I POSITIVE I Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The outlook for the year is positive as overall revenues and expenditures are on target with budget. The expenditures are higher than revenues by $13.OM. The significant variance is due to the significant portion of property tax revenue collected (approximately 95%) of the budgeted property tax revenue sources for the general fund. REVENUE ANALYSIS GENERAL FUND SALES TAX 2024-2022 COMPARISON FY 2024 FY 2023 FY 2022 � FY 2024 � FY 2023 FY 2022 Oct $ 1,639,596 $ 1,814,981 $ 1,613,415 $3,000,000 Nov $ 1,701,432 $ 1,813,575 $ 1,652,674 Dec $ 2,383,801 $ 2,507,299 $ 2,456,532 $2,500,000 - Jan $ 1,643,095 $ 1,539,514 $ 1,602,323 , Feb $ 1,458,994 $ 1,436,621 $ 1,388,859 $2,000,000 Mar $ 1,859,641 $ 1,836,177 $ 1,975,175 o Apr $ - $ 1,708,466 $ 1,714,270 �� $1,500,000 May $ - $ 1,745,742 $ 1,725,777 Jun $ $ 1,819,551 $ 1,792,755 $1,000,000 Jul $ - $ 1,620,652 $ 1,607,427 Aug $ 2,618,139 $ 1,659,141 $500,000 - Sep $ 1,968,439 $ 1,640,639 Tot $ 10,686,559 $ 22,429,156 $ 20,828,987 $- Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: I POSITIVE Year to date collections are trending below FY 2023 (2.4%) and slightly below FY 2022 (0.02%) collections. March sales are above March 2023 (1.3%) and below March 2022 (5.9%) collections. However year to date collections are above budget for the year therefore the outlook is considered positive. Staff will continue to closely monitor collections. City of Southlake Monthly Financial Report 3 5/16/2024 REVENUE ANALYSIS (continued) FY 2024 FY 2023 FY 2022 Oct $ 577,913 $ 380,169 $ 653,703 Nov $ 2,012,904 $ 2,011,080 $ 2,017,203 Dec $ 8,236,314 $ 4,964,620 $ 6,068,454 Jan $ 10,376,818 $ 12,756,146 $ 11,588,414 Feb $ 5,623,897 $ 6,290,070 $ 5,872,247 Mar $ 532,180 $ 560,775 $ 584,684 Apr $ 257,466 $ 221,968 $ 554,247 May $ - $ 158,917 $ 151,717 Jun $ - $ 502,789 $ 502,344 Jul * $ - $ (1,226,605) $ (1,310,741) Aug $ $ 69,910 $ 69,630 Sep $ $ 41,259 $ 111,205 Tot $ 27,617,492 $ 26,731,098 $ 26,863,107 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund GENERAL FUND PROPERTY TAX 3 YEAR TREND ■ FY 2024 ■ FY 2023 FY 2022 $14,000,000 - $12,000,000 - $10,000,000 - $8,000,000 - $6,000,000 - $4,000,000 - $2,000,000 $- $(2,000,000) Oct Nov Dec Jan Feb Mar Apr May Jun $(4,000,000) P"R Aug As of April, the 2024 YTD property tax collections ($27,617,492) are approximately 1.6% and 1.0% higher than 2023 YTD ($27,184,828) and 2022 YTD ($27,338,952), respectively. 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 trending below budget. FY 2024 FY 2023 FY 2022 Oct $ 110,053 $ 137,332 $ 214,445 $900,000 Nov $ 284,653 $ 118,803 $ 185,109 Dec $ 69,759 $ 88,212 $ 94,663 $800,000 Jan $ 90,986 $ 231,884 $ 167,045 $700,000 Feb $ 93,595 $ 249,097 $ 111,545 Mar $ 226,182 $ 98,675 $ 154,046 $600,000 Apr $ 121,572 $ 77,670 $ 277,691 $500,000 May $ - $ 187,731 $ 788,270 $400,000 Jun $ $ 143,738 $ 133,244 Jul $ - $ 92,872 $ 192,902 $300,000 Aug $ - $ 136,528 $ 184,578 $200,000 Sep $ 157,382 $ 154,833 Tot $ 996,800 $ 1,719,924 $ 2,658,371 $100,000 CHART OUTLOOK: I POSITIVE PERMIT REVENUE 2024-2022 COMPARISON � FY 2024 � FY 2023 FY 2022 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep The value of new construction permits ($102.6M+) issued for FY 2024 YTD is approximately 21.8% and 19.3% higher when compared to FY 2023 and FY 2022, respectively. FY 2024 YTD permit revenue is approximately 0.5% and 17.3% lower when compared to FY 2023 and 2022, respectively. The permit revenue year to date is trending above budget therefore the outlook is considered positive. City of Southlake Monthly Financial Report 4 5/16/2024 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY FY 2024 ACTUAL FY 2023 ACTUAL FY 2024 BUDGET FY 2023/2024 YTD YTD (APRIL) YTD (APRIL) YTD (APRIL) VARIANCE BUDGET VARIANCE FY 2024 %SPENT CIAO $ 647,890 $ 593,641 $ 705,815 $ 54,249 $ 57,925 91.79% COMM $ 423,732 $ 360,875 $ 499,674 $ 62,857 $ 75,942 84.80% CS $ 3,971,667 $ 3,455,999 $ 4,658,425 $ 515,668 $ 686,758 85.26% C5O $ 325,333 $ 326,320 $ 404,885 $ (987) $ 79,552 80.35% DIPS $ 12,720,795 $ 10,952,809 $ 14,595,392 $ 1,767,986 $ 1,874,597 87.16% ED $ 209,896 $ 183,943 $ 224,876 $ 25,953 $ 14,980 93.34% FIN $ 1,823,838 $ 1,620,015 $ 2,021,574 $ 203,823 $ 197,736 90.22% HR $ 540,939 $ 516,450 $ 612,850 $ 24,489 $ 71,911 88.27% IT $ 1,903,454 $ 1,768,086 $ 2,653,281 $ 135,368 $ 749,827 71.74% PDS $ 1,383,346 $ 1,322,659 $ 1,601,596 $ 60,687 $ 218,250 86.37% PW $ 3,167,842 $ 2,757,858 $ 3,587,422 $ 409,984 $ 419,580 88.30% SS $ 1,647,345 $ 1,196,980 $ 1,790,689 $ 450,365 $ 143,344 92.00% Totals $ 28,766,077 $ 25,055,635 $ 33,356,479 $ 3,710,442 $ 4,590,402 86.24% � FY 2024 ACTUAL YTD (APRIL) FY 2023 ACTUAL YTD (APRIL) FY 2024 BUDGET YTD (APRIL) $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 $- CIAO COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated above, 2024 expenditures are are higher than the 2023 expenditures for the same period with an increase of 14.8% primarily due to to approved pay plan adjustments, increase in property insurance and legal settlements. The outlook is positive expenditures are on pace to be within budgeted expenditures for the fiscal year. City of Southlake Monthly Financial Report 5 5/16/2024 iEXPERIENC SOUTHLF April 23.,2024 The Marq Financial Review 10/l/2023 9/30j2024 NLARQ cc 66.00% 108.83% 73.00% 110.10% T-ug AIT T.Ez t AIT 2.51M I SA9M 2.23M I 2.78M R.el-- R.P�_e R— E.P—. CEDC FINANCIAL DASHBOARD as of: 412 3/20 24 9:03 AM LH THE NIARQ RENTALS REVENUE (NET) /[C-Re rtal-Revenue 0LH-Rent3l-Revenue 6UR SOL 40[ ■• 38.00% I 101.5246 T.pt r� w« 275.36K 713.77K ReL�e �-e qK Apr 2023 Mar 2023 Jun 2023 J. 12023 Aug 2023 5-2023 Oct 2023 N-2023 Oec 7023 Jan 2024 Fab 2024 M-2024 Rpc 2024 NET REVENUE: CURRENT & PREVIOUS YE.A.R THE -NL RQ MEMBERSHIP REVENUE (NET) /CCR /LXR �TMil Rc�en�c LY 40M 3001E Em WX OK CHAMPIONS CLUB MEMBERSHIP TRENDS 3537 3564 3587 3557 354_ 3447 3443-'�485- -3f95' 3509 3358 3374 3414 - 3236 3287 3150 3191 3754 3=55 30TF 3QQ3 y 300a 2825 2751 2655 �-- 2 Q<' 2452' _362i' 250a N !1 N� 2009 L a .0 G a 1509 1009 50a a Jan 2022 Jul2022 Jan2023 Ju12023 Jan2024 Period CC MEMBERSHIPS CHANGES BY FISCAL YEAR & MONTH - JOINS Fiscal Year —FY21 FY22 — FY23 — FY24 300 C 200 O 100 0 2 4 Fiscal Month � �� JOINs, FY21 119 112 117 163 131 155 200 320 312 228 233 192 FY22 172 205 209 254 173 192 239 350 310 253 292 185 FY23 216 258 244 286 206 212 204 326 268 266 294 203 FY24 188 182 236 318 236 225 0 CC MEMBERSHIPS CHANGES BY FISCAL YEAR & MONTH - TERMS Fiscal Year — FY21— FY22 — FY23 — FY24 300 w C 0 200 E u 100 0 - 2 4 6 Fiscal Month TERMP ATIONS S 10 12 FY21 133 111 140 161 130 98 119 116 159 167 228 253 FY22 165 142 148 175 158 135 150 191 223 197 231 230 FY23 206 191 181 213 201 171 175 240 236 253 320 253 FY24 197 184 180 229 254 201 MULTI -YEAR CC 11EMBERSEUPS, ANALYSIS BY MEMBERSHW TYPE - JOINS Package Category $Adult @Family $Family No Child Watch *Senior •Youth 1000 876 845 s77 582 n a NO459 462 � kL 274 313198 191 H21 FY24 Fiscal Ye=i JOINS Package FY21 FY22 FY24 Lategory AL Adult 582 766 946 462 Family 459 599 677 292 Family No 876 1006 965 392 Child Watch Senior 200 274 313 161 Youth 157 198 191 95 MRTI-YEAR CC MEMBERSHIPS ANALYSIS BY MEMBERSH P TYPE - TER1IINATTON Package Category $Adult IfFamily $Family No Child Watch *Senior GYouth 773 773 804 730 635 C H 604 568 C 453 @ 393 389 398 400 338 6 254 192 N. 169 176 200 127 124 100 4& fl =Y21 FY22 FY23 FY24 Fiscal Year Package Category iL Adult Family Family No Child Watch Senior Youth TERMINATIONS FY21 453 635 773 389 338 393 568 260 730 773 974 398 121 169 254 100 129 176 182 98 992 Im MULTIYEAR CC MEMBERSHIP TERNU ATIONS BY REASON Fiscal Year OFY20 $ FY21 • FY22 IIDFY23 • FY24 N � 579 L 539 518 C Soo 449 H LL 36135Q 290 216 id 181186-- 149 147 22 51 51 41 13 2F 31 34 10 32 16 52 36 11 Q 0 0 CDVID-19Closure Failed Payments No Reason/Other Not Utilizing Membership RelondngjTrawel Selected other service Transfer UnsatisAedw0Facility Dr provider Amenities Reason and Fiscal Year FiscalYear COVID-19 Closure Failed Payments No Reason/Other Not Utilizing Relocating/Travel Selected other service Transfer Unsatisfied with Facility or OL A A Membership provider M Amenities FY20 5:39 350 51 381 149 13 156 32 FY21 1811 716 51 306 186 22 174 16 FY22 22 802 147 412 361 31 203 52 FY23 0 992 216 518 449 34 290 36 FY24 0 579 41 282 147 10 112 11 EXPERIENCE SOUTHLAI<,.,.,E Three Year Revenue Comparison by Month ,'I OG ■ Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 EXPERIENCE SOUTHLAI<,.,.,E INVESTMENT REPORT City of Southlake January 1 to March 31, 2024 r Hilltop Securities J�* Contents Investment Management Team Scott McIntyre Market Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Senior Portfolio Manager 512.481.2009 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 The extreme bond market volatility continued in March as investors tried to determine exactly when the Fed would begin cutting the overnight target rate. Economic growth and labor market conditions proved much more resilient than expected while inflation measures failed to cool enough to quell market concerns.The result was higher yields during the month and the expectation that rate policy would remain higher for longer. The first market -moving release in March actually nudged yields Iower.The February ISM Services index slipped from 53.4 to 52.6, suggesting the service sector might be taking a breather.The following day, the February employment report appeared mixed as nonfarm payrolls increased by a solid +275k while the previous two months were revised lower by-167k.The separate household survey told a wildly contrasting story as the number of employed workers fell -184k, after dropping by a combined -151 k in the previous two months.The headline unemployment rate increased from 3.7%to 3.9%, the highest since January 2022, as +150k workers entered (or reentered) the civilian labor force in February. Consumer inflation was once again warmer -than -expected. Headline consumer price index (CPI) climbed +0.4% in February, which boosted the year -over -year pace up from +3.1 % to +3.2%. Shelter costs and gasoline combined to account for over 60% of the monthly gain. The annual CPI core rate (which excludes food and energy) slipped from +3.9%to +3.8% but missed the more hopeful +3.7% median forecast. Producer prices followed the same uncomfortably warm path with headline PPI jumping +0.6%, double both the January increase and the February median forecast. On a year -over - year basis, overall PPI rose at a mostly benign +1.6% pace, up from +1.0% in January, while core PPI held steady at +2.0%. Although producer prices were more in line with the Fed's target, the shift upward was a concern. Retail sales were generally expected to rebound after bad weather contributed to a January sales slump, but that bounce -back wasn't nearly as strong as analysts expected with February retail sales climbing by+0.6%, a bit weaker than the +0.8%forecast. On top of that, the previously reported decline in January sales was revised lower from-0.8%to -1.1 %, City of Southlake As of March 31, 2024 while the December sales increase was revised downward from +0.4%to+0.1 %."Control group"sales were unchanged in February after falling a revised -0.3% in January. Because the control group is used to calculate GDP, it suggested slower Q1 GDP growth. With a huge batch of fresh economic data to consider, Fed officials met in mid -March and voted unanimously to leave the overnight funds rate unchanged for the fifth consecutive meeting.The Fed's updated"dot plot"continued to show total of 75 basis points in rate cuts this year, leaving the median funds forecast for the end of 2024 at 4.6%.The 2025 projection showed one fewer cut, moving the yearend funds forecast up from 3.6%to 3.9% and the 2026 forecast from 2.9% to 3.1 %, although Powell noted that the dot plot is fluid and not a plan. The committee's GDP forecast for 2024 increased from +1.4% at the December meeting to +2.1 %, while the 2025 forecast was revised upward from +1.8% to +2.0% and the 2026 forecast from +1.9%to +2.0%. In the Fed's mind, the likelihood of recession continues to fade.The committee acknowledged recent higher -than -expected price pressures by revising 2024 yearend core PCE higherfrom +2.4%to +2.6%, although the 2025 and 2026 core inflation forecasts were unchanged at+2.2%and +2.0% respectively. Both Q1 GDP forecasts and the early data suggest growth has slowed quarter to quarter. Just how quickly this softening of demand translates into lower prices will dictate the timing and magnitude of rate cuts later this year. Page 3 Securities � City of Southlake Hillto i� As of March 31, 2024 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 Investment Officers 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. Nicole Bradshaw The investment portfolio complied with the PFIA and the Entity's approved Investment Policy and Strategy throughout the period. Nicole Bradshaw Deputy Director of Finance 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. Sharen Jackson Sharen Jackson Chief Financial Officer Page 4 Hilltop Securities J�*Portfolio Overview Portfolio Summary Income Summary 31 Prior - Current 'Current Period 1 Jan-24 to 31 Mar-24 ParValue 159,130,603.68 155,146,458.52 Interest Income 2,103,684.46 Original Cost 159,440,589.03 155,334,990.75 Net Amortization/Accretion (11,553.42) BookValue 159,162,213.53 155,008,311.83 Realized Gain/(Loss) 0.00 Market Value 159,077,077.68 154,980,775.52 Net Income 2,092,131.04 Accrued Interest 76,534.98 47,230.68 BookValue Plus Accrued 159,238,748.51 155,055,542.50 • Market Value Plus Accrued 159,153,612.66 155,028,006.20 Net Income 4,097,589.26 Net Unrealized Gain/(Loss) (85,135.85) (27,536.31) Asset Allocation Transaction Summary City of Southlake January 1, 2024 - March 31, 2024 Portfolio Characteristics Yield to Maturity 5.216% 5.193% Yield to Worst 5.216% 5.193% Days to Final Maturity 7 13 Days to Effective Maturity 7 13 Duration 0.26 0.55 Buy 5,000,000.00 (4,841,796.88) (43,028.85) (4,884,825.73) 0.00 Maturity (5,000,000.00) 5,000,000.00 0.00 5,000,000.00 0.00 E LGIP 93.97% Coupon 0.00 0.00 134,375.00 134,375.00 0.00 MUNI2.90% US GOVT 3.13% Page 5 Hilltop Securities J�* Portfolio Overview City of Southlake As of March 31, 2024 Maturity Distribution by Security Type Top Ten Holdings LGIP 93.97% E MUNI 2.90% ■ US GOUT 3.13% Issuer Allocation 100%u 94.0 TEXSTAR 30.48% TEXPOOL 28.45% LONESTRGOV 14.72% LONESTRCRP 11.11 % 50% TXCLASS 9.20% United States Department ofTheTreasury 3.13% Texas A&M University System Board of Regents 2.90% 2.9 3.1 0% - e`�`�,cc � car`' � ter`' � ter`' �o�r5 yeas years ,eats yea�5 0 0 0 Maturity Distribution by Security Type OvernightiSecurityType LGIP 145,661,458.52 — — 145,661,458.52 MUNI — 4,496,626.20 — — 4,496,626.20 US GOVT — 4,850,227.10 — 4,850,227.10 Total 145,661,458.52 4,496,626.20 — — 4,850,227.10 — — — 155,008,311.83 Hilltop Securities J�* Asset Allocation Asset Allocation by Security Type as of 31-Dec-2023 Book Value Basis Security Distribution AGCY CALL LGIP MUNI US GOVT PortfolioTotal AGCY CALL 3.14% LGIP 94.02% MUNI 2.84% 4,995,938.55 3.14% (3.14%) 149,645,603.68 94.02% (0.05%) 4,520,671.30 2.84% 0.06% 0.00 0.00% 3.13% 159,162,213.53 100.000/0 City of Southlake As of March 31, 2024 Asset Allocation by Security Type as of 31-Mar-2024 LGIP 93.97% MUNI 2.90% US GOVT 3.13% 0.00 0.00% 145,661,458.52 93.97% 5.347% 4,496,626.20 2.90% 0.400% 4,850,227.10 3.13% 5.007% 155,008,311.83 100.000/0 5.193% Page 7 Hilltop Securities J�* Credit Rating Summary Rating Distribution Local Government Investment Pools & Money Market Funds AAA Total Local Government Investment Pools & Money Market Funds Long Term Rating Distribution AAA Total Long Term Rating Distribution PortfolioTotal 145,661,458.52 93.97% 145,661,458.52 93.97% 9,346,853.31 6.03% 9,346,853.31 6.03% 155,008,311.83 100.000/0 City of Southlake As of March 31, 2024 Allocation by Rating ■ AAA 100.00% �. 6i Hilltop Securities J�* Benchmark Comparison - City of Southlake 6 Month CMT - 1 Year CMT TexPool 7.50% 5.00% 2.50% City of Southlake As of March 31, 2024 0.00% `,L'L �•1'L �'ti \.1'L ��yti .L'y �,1'L ,�'L `,y'L ��"� `,1'S L,L''� ��'� \,y'� �ti3 ��3 p� �o Qe �a �¢ �a PQ �a �J �J PJ heQ Op Yield Overview City of Southlake 0.44 0.59 0.79 1.10 1.49 1.91 2.23 2.64 2.92 3.23 3.38 3.55 3.78 4.00 4.22 4.37 4.61 4.75 4.91 5.07 5.22 5.20 5.21 5.19 6 Month CMT 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 5.47 5.50 5.48 5.43 5.39 5.36 1 Year CMT 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 5.01 5.06 5.08 5.09 5.09 5.12 TexPool 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 5.36 5.37 5.37 5.35 5.33 5.32 Hilltop Securities. Fund Overview General Operating 159,162,213.53 159,077,077.68 (4,096,302.16) 155,008,311.83 154,980,775.52 2,092,131.04 Total 159,162,213.53 159,077,077.68 (4,096,302.16) 155,008,311.83 154,980,775.52 2,092,131.04 City of Southlake January 1, 2024 - March 31, 2024 13 5.193% 5.193% 13 5.193% 5.193% Page 10 Hilltop Securities J�* Detail of Security Holdings General Operating LNSTCRP LGIP LoneStarCorpO/N 03/31/24 LNSTGOV LGIP LoneStarGovO/N 03/31/24 TEXPOOL LGIP TexPool 03/31/24 TEXSTAR LGIP TexSTAR 03/31/24 TXCLASS LGIP Texas CLASS 03/31/24 BOARD OF REGENTS 88213AKBO 09/29/20 MUNI TEXAS A & M UNIVERSITY 2.549 05/15/24 SYSTEM 91282CED9 03/12/24 US GOVT U.S.Treasury Note 1.750 03/15/25 Total General Operating Grand Total City of Southlake As of March 31, 2024 17,224,044.10 100.000 17,224,044.10 17,224,044.10 100.000 17,224,044.10 1 5.483 5.483 AAA 22,813,398.78 100.000 22,813,398.78 22,813,398.78 100.000 22,813,398.78 1 5.333 5.333 AAA 44,103,041.93 100.000 44,103,041.93 44,103,041.93 100.000 44,103,041.93 1 5.316 5.316 AAA 47,252,925.34 100.000 47,252,925.34 47,252,925.34 100.000 47,252,925.34 1 5.299 5.299 AAA 14,268,048.37 100.000 14,268,048.37 14,268,048.37 100.000 14,268,048.37 1 5.465 5.465 AAA 4,485,000.00 107.731 4,831,735.35 4,496,626.20 99.720 4,472,442.00 45 0.400 0.400 AAA 5,000,000.00 96.836 4,841,796.88 4,850,227.10 96.938 4,846,875.00 349 5.007 5.007 AAA 155,146,458.52 155,334,990.75 155,008,311.83 154,980,775.52 13 5.193 5.193 155,146,458.52 155,334,990.75 155,008,311.83 154,980,775.52 13 5.193 5.193 Page 11 Hilltop Securities J�* Earned Income General Operating 3130ASXL8 AGCY CALL FHLB LNSTCRP LGIP LoneStar Corp O/N LNSTGOV LGIP LoneStar Gov O/N TEXPOOL LGIP TexPool TEXSTAR LGIP TexSTAR TXCLASS LGIP Texas CLASS BOARD OF REGENTS TEXAS A&MUNIVERSITY 88213AKBO MUNI SYSTEM 91282CED9 US GOVT U.S. Treasury Note Total General Operating Grand Total City of Southlake January 1, 2024 - March 31, 2024 61,927.08 28,697.92 90,625.00 0.00 0.00 4,061.45 0.00 32,759.37 0.00 208,614.59 208,614.59 0.00 0.00 0.00 0.00 208,614.59 0.00 228,998.06 228,998.06 0.00 0.00 0.00 0.00 228,998.06 0.00 790,628.89 790,628.89 0.00 0.00 0.00 0.00 790,628.89 0.00 619,757.78 619,757.78 0.00 0.00 0.00 0.00 619,757.78 0.00 193,643.29 193,643.29 0.00 0.00 0.00 0.00 193,643.29 14,607.89 28,580.66 0.00 0.00 43,188.56 (24,045.10) 0.00 4,535.56 0.00 4,763.27 43,750.00 (43,028.85) 4,042.12 8,430.22 0.00 13,193.49 76,534.98 2,103,684.46 2,176,017.61 (43,02835) 47,230.68 (11,553.42) 0.00 2,092,131.04 76,534.98 2,103,684.46 2,176,017.61 (43,028.85) 47,230.68 (11,553.42) 0.00 2,092,131.04 Page 12 Hilltop Securities J�* Investment Transactions General Operating Buy 91282CED9 Total Buy Coupon 3130ASXL8 91282CED9 Total Coupon Maturity 3130ASXL8 Total Maturity 03/11/24 03/12/24 USGOVT U.S. Treasury Note 02/28/24 02/28/24 AGCY CALL FHLB 03/15/24 03/15/24 US GOVT U.S. Treasury Note 02/28/24 02/28/24 AGCY CALL FHLB City of Southlake January 1, 2024 - March 31, 2024 1.750 03/15/25 5,000,000.00 96.836 4,841,796.88 43,028.85 4,884,825.73 0.00 5.007 5.007 5,000,000.00 4,841,796.88 43,028.85 4,884,825.73 0.00 3.625 02/28/24 0.00 0.00 90,625.00 90,625.00 0.00 — — 1.750 03/15/25 0.00 0.00 43,750.00 43,750.00 0.00 — — 0.00 0.00 134,375.00 134,375.00 0.00 3.625 02/28/24 (5,000,000.00) 100.000 5,000,000.00 0.00 5,000,000.00 0.00 — — (5,000,000.00) 5,000,000.00 0.00 5,000,000.00 0.00 Page 13 Hilltop Securities J�* Investment Transactions Totals Total Buy 5,000,000.00 (4,841,796.88) (43,028.85) (4,884,825.73) 0.00 Total Maturity (5,000,000.00) 5,000,000.00 0.00 5,000,000.00 0.00 Total Coupon 0.00 0.00 134,375.00 134,375.00 0.00 City of Southlake January 1, 2024 - March 31, 2024 5.007 5.007 4.151 4.151 Page 14 Hilltop Securities J�* Amortization and Accretion General Operating 3130ASXL8 09/16/22 AGCY CALL 88213AKBO 09/29/20 MUNI 91282CED9 03/12/24 US GOVT Total General Operating Grand Total City of Southlake January 1, 2024 - March 31, 2024 FHLB 0.00 0.000 0.00 4,061.45 0.00 0.00 0.00 BOARD OF REGENTSTEXAS A& M UNIVERSITY SYSTEM 4,485,000.00 107.731 4,831,735.35 (24,045.10) (335,109.15) 11,626.20 4,496,626.20 U.S. Treasury Note 5,000,000.00 96.836 4,841,796.88 8,430.22 8,430.22 (149,772.90) 4,850,227.10 9,485,000.00 9,673,532.23 (11,553.42) (326,678.92) (138,146.69) 9,346,853.31 9,485,000.00 9,673,532.23 (11,553.42) (326,678.92) (138,146.69) 9,346,853.31 Page 15 Hilltop Securities J�* Projected Cash Flows General Operating City of Southlake March 31, 2024 to March 31, 2025 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 91282CED9 U.S. Treasury Note 09/16/24 43,750.00 43,750.00 91282CED9 U.S. Treasury Note 03/17/25 43,750.00 43,750.00 91282CED9 U.S. Treasury Note 03/17/25 5,000,000.00 5,000,000.00 Grand Total 144,661.32 9,485,000.00 9,629,661.32 Page 16 Hilltop Securities. Projected Cash Flows Totals City of Southlake March 31, 2024 to March 31, 2025 May 2024 57,161.32 4,485,000.00 4,542,161.32 September 2024 43,750.00 43,750.00 March 2025 43,750.00 5,000,000.00 5,043,750.00 Total 144,661.32 9,485,000.00 9,629,661.32 $7,500,000 $ 5,000,000 $2,500,000 $0 May-24 ■ Interest ■ Nrinup,. Page 17 Hilltop Securities J�* Disclosures & Disclaimers City of Southlake As of March 31, 2024 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. It is important to review and save all source documents provided by a product sponsor or brokerage firm which may contain notices, disclosures and other information important to you and may also serve as a reference. If conflicts between this report and sponsor reports or confirmations exist, the information provided by the product sponsors shall prevail. Fees and sales charges paid may not be reflected in the information. The information and data contained herein is obtained from sources believed to be reliable but its accuracy or completeness is not guaranteed. Additionally, the information may contain assets held away from HTS, therefore investors should contact customer service or other representatives from the respective distributors or issuers to determine SIPC coverage for heldaway assets. HTS and HSAM do not guarantee the information contained herein or its accuracy or completeness regarding contributions, withdrawals, protected values. All information is subject to further review with client to validate final values. It is not possible to directly invest in an index. Financial forecasts, rates of return, risk, inflation, and other assumptions may be used as the basis for illustrations.They should not be considered a guarantee offuture performance or a guarantee of achieving overall financial objectives. Past performance is not a guarantee or a predictor of future results of either the indices or any particular investment. S&P rates the creditworthiness of individual bonds from: AAA highest to D lowest. Investing in fixed income securities involves interest rate risk, credit risk, and inflation risk. Interest rate risk is the possibility that bond prices will decrease because of an interest rate increase. When interest rates rise, bond prices and the values offixed income securities fall. When interest rates fall, bond prices and the values of fixed income securities rise. Credit risk is the risk that a company will not be able to pay its debts, including the interest on its bonds. Inflation risk is the possibility that the interest paid on an investment in bonds will be lower than the inflation rate, decreasing purchasing power. Cash alternatives typically include money market securities and U.S. treasury bills. Investing in such cash alternatives involves inflation risk. In addition, investments in money market securities may involve credit risk and a risk of principal loss. Because money market securities are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency, there is no guarantee the value of your investment will be maintained at $1.00 per share, and your shares, when sold, may be worth more or less than what you originally paid for them. U.S. Treasury bills are subject to market risk if sold prior to maturity. Market risk is the possibility that the value, when sold, might be less than the purchase price. Investing in stock securities involves volatility risk, market risk, business risk, and industry risk. The prices of most stocks fluctuate. Volatility risk is the chance that the value of a stock will fall. Market risk is the chance that the prices of all stocks will fall due to conditions in the economic environment. Business risk is the chance that a specific company's stock will fall because of issues affecting it. Industry risk is the chance that a set offactors particular to an industry group will adversely affect stock prices within the industry. Securities offered by HTS: (1) are not FDIC (Federal Deposit Insurance Corporation) insured; (2) are not bank deposits; (3) are not guaranteed by any bank or by any other federal government agency. None ofthe named entities are affiliates of HTS or HSAM.Hilltop Securities Asset Management (HSAM) is an SEC -registered investment advisor. 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. Content Providers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use ofthe Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the content is not a recommendation to buy, sell or hold such investment or security, does not address the suitability of an investment or security and should not be relied on as investment advice. Credit ratings are statements of opinions and are not statements of fact. Page 18