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CM Report - 3B-3 Monthly Financial Report
Item 3B-3 now - 19 CITY OF SOUTHLAI<,.-E 0 MONTHLY FINANCIAL REPORT September 2025 PERFORMANCE AT A GLANCE Year to Date 3 year Trend Reference Gen�FundVs. 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 = Positive variance or negative variance <1 % compared to seasonal trends. Warning = Negative variance of 1-4% compared to seasonal trends Negative = Negative Variance of > 4% compared to seasonal trends. City of Southlake Monthly Financial Report 1 10/14/2025 ECONOMIC INDICATORS NATIONAL ECONOMY 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 "third" estimated GDP for the 2nd quarter of 2025 increased at a rate of 3.8%. In the $200,000,000 1st quarter of 2025, GDP decreased at a rate of 0.6%. $180,000,000 $160,000,000 Housing Starts: 4 7.00% Single-family starts in August 2025 were at a $140,000,000 seasonally adjusted rate of 890,000, 7.0% below the previous month's figure in July. $120,000,000 $100,000,000 $80,000,000 UNEMPLOYMENT RATES National: d 4.3% The National Unemployment rate for August 2025 $60,000,000 slightly increased to 4.3% when compared to 4.2% in July 2025. $40,000,000 State-wide: 4.1 % The Texas Unemployment rate for August 2025 $20,000,000 (preliminary) increased slightly to 4.1 % when compared to 4.0% in July 2025. $- FINANCIAL ACTIVITY V Area: 1/ 4.4% 2021* 2022* 2023* 2024* 2025* Dallas/Fort Worth/Arlington Metropolitan Area �*October-May ■ Construction permit values nployment rate for August 2025 (preliminary) rased to 4.4% when compared to 4.0% in July City of Southlake Monthly Financial Report 2 10/14/2025 GENERAL FUND OVERALL FUND PERFORMANCE: GENERAL FUND REVENUE VS EXPENDITURES 2025 FY 2025 FY 2025 FY 2025 REVENUE FY 2025 EXPENDITURE 2024 EXPEND. REVENUE EXPENDITURE VARIANCE Oct $ 995,965 $ 3,045,596 $ (2,049,631) $18,000,000 Nov $ 2,899,854 $ 4,712,733 $ (1,812,879) $16,000,000 Dec $ 6,811,678 $ 4,042,253 $ 2,769,425 Jan $ 16,742,515 $ 4,736,543 $ 12,005,972 $14,000,000 Feb $ 9,551,595 $ 4,119,025 $ 5,432,570 $12,000,000 Mar $ 3,025,087 $ 3,771,340 $ (746,253) Apr $ 2,459,629 $ 4,233,724 $ (1,774,095) $10,000,000 May $ 3,880,915 $ 5,043,930 $ (1,163,015) $8,000,000 Jun Jul $ 2,976,792 $ 1,574,060 $ 3,851,863 $ 3,776,435 $ $ (875,071) (2,202,375) $6,000,000 . Aug Sep $ 3,216,266 $ 2,373,001 $ 3,806,397 $ 5,714,069 $ $ (590,131) (3,341,068) $4,000,000 — Tot $ 56,507,357 $ 50,853,908 $ 5,653,449 $2,000,000 CHART OUTLOOK:—F POSITIVE 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 the final amended budget. The expenditures exceed revenues by almost $5.7 million. REVENUE ANALYSIS GENERAL FUND SALES TAX 2025-2023 COMPARISON FY 2025 FY 2024 FY 2023 FY 2025 FY 2024 FY 2023 Oct $ 1,792,542 $ 1,639,596 $ 1,814,981 $3,000,000 Nov $ 1,815,114 $ 1,701,432 $ 1,813,575 Dec Jan $ 2,552,523 $ 1,722,503 $ 2,383,801 $ 1,643,095 $ $ 2,507,299 1,539,514 $2,500,000 ' Feb $ 1,470,957 $ 1,458,994 $ 1,436,621 $2,000,000 Mar Apr $ 1,961,273 $ 1,828,118 $ 1,859,641 $ 1,749,381 $ $ 1,836,177 1,708,466 $1,500,000 ' _ May $ 1,836,616 $ 1,660,932 $ 1,745,742 Jun $ 1,837,179 $ 1,777,233 $ 1,819,551 $1,000,000 6 Jul $ 1,806,454 $ 1,653,109 $ 1,620,652 Aug $ 1,717,354 $ 1,710,382 $ 2,618,139 $500,000 Sep $ - $ 1,690,978 $ 1,968,439 Tot $ 20,340,633 $ 20,928,572 $ 22,429,154 $- — Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE Year-to-date collections are trending higher than FY 2024 (5.7%) and slightly lower than FY 2023 (0.6%) collections. August 2025 sales are marginally higher than those in August 2024 (0.4%) but significantly lower than those in August 2023 (52.5%). August 2023 sales included an audit adjustment, which accounted for 36% of the sales tax collected for the month. Year-to-date collections are above budget for the year; therefore, the outlook is considered positive. City of Southlake Monthly Financial Report 3 10/14/2025 GENERAL FUND REVENUE ANALYSIS (continued) PROPERTY TAX 3 YEAR TREND FY 2025 FY 2024 FY 2023 ■ FY 2025 ■ FY 2024 FY 2023 Oct $ 415,744 $ 577,913 $ 380,169 $16,000,000 Nov $ 2,389,817 $ 2,012,904 $ 2,011,080 $14,000,000 Dec $ 4,489,786 $ 8,236,314 $ 4,964,620 $12,000,000 Jan $ 14,130,006 $ 10,376,818 $ 12,756,146 $10,000,000 Feb $ 5,620,386 $ 5,623,897 $ 6,290,070 Mar $ 640,868 $ 532,180 $ 560,775 $8,000,000 Apr $ 295,560 $ 257,466 $ 221,968 $6,000,000 May $ 205,571 $ 198,604 $ 158,917 $4,000,000 Jun $ 460,606 $ 516,677 $ 502,789 $2,000,000 Jul * $ (1,089,408) $ (1,139,094) $ (1,226,605) $- - Aug $ 107,845 $ 88,418 $ 69,910 $(2,000,000) act Nov Dec Jan Feb Mar Apr May Jun JulAug Sep $ 21,654 $ 16,945 $ 41,259 Tot $ 27,688,435 $ 27,299,042 $ 26,731,098 * Net transfer of TIF revenues to CHART OUTLOOK: POSITIVE TIF fund FY 2025 year-to-date property tax collections ($27,688,435) are approximately 1.4% and 3.6% higher than the 2024 YTD ($27,299,042) and 2023 YTD ($26,731,098), respectively. As indicated on the chart, the majority of the property tax revenue is collected in the second quarter of the fiscal year. FY 2025 collections are slightly higher than the final amended budget of $27,487,889. PERMIT REVENUE 2024-2022 COMPARISON FY 2025 FY 2024 FY 2023 � FY 2025 � FY 2024 ---FY 2023 Oct $ 332,221 $ 110,053 $ 137,332 $350,000 Nov $ 121,292 $ 284,653 $ 118,803 Dec $ 104,932 $ 69,759 $ 88,212 $300,000 Jan $ 133,336 $ 90,986 $ 231,884 Feb $ 145,396 $ 93,595 $ 249,097 $250,000 Mar $ 135,536 $ 226,182 $ 98,675 Apr $ 137,408 $ 121,572 $ 77,670 $200,000 May $ 192,289 $ 198,453 $ 187,731 Jun Jul Aug $ 152,593 $ 124,896 $ 112,085 $ 159,935 $ 135,053 $ 100,564 $ $ $ 143,738 $150,000 92,872 $100,000 136,528 - Sep $ 117,989 $ 156,642 $ 157,382 $50,000 - Tot $ 1,809,973 $ 1,747,447 $ 1,719,924 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep CHART OUTLOOK: POSITIVE The value of new construction permits ($180.OM+) issued for FY 2025 YTD is approximately 10.4% and 24.9% higher than in FY 2024 and FY 2023, respectively. FY 2025 YTD permit revenue is 3.6% and 5.2% higher than in FY 2024 and 2023, respectively. The permit revenue exceeds the budget, so the outlook is considered positive. City of Southlake Monthly Financial Report 4 10/14/2025 EXPENDITURE ANALYSIS DEPARTMENTAL EXPENDITURES SUMMARY AMENDED FY 2025 BUDGET FY 2025 ACTUAL FY 2024 ACTUAL YTD FY 2024/2025 YTD YTD (SEPTEMBER) YTD (SEPTEMBER) (SEPTEMBER) VARIANCE BUDGET VARIANCE FY 2025 % SPENT CIAO $ 1,208,839 $ 1,226,422 $ 1,282,875 $ (17,583) $ 74,036 94.23% COMM $ 842,732 $ 728,462 $ 905,509 $ 114,270 $ 62,777 93.07% CS $ 6,685,521 $ 7,254,123 $ 7,287,078 $ (568,602) $ 601,557 91.74% CSO $ 614,507 $ 621,990 $ 672,400 $ (7,483) $ 57,893 91.39% DPS $ 23,484,572 $ 22,709,370 $ 24,131,839 $ 775,202 $ 647,267 97.32% ED $ 466,129 $ 439,279 $ 583,626 $ 26,850 $ 117,497 79.87% FIN $ 3,128,792 $ 3,086,368 $ 3,294,580 $ 42,424 $ 165,788 94.97% HR $ 736,547 $ 889,043 $ 924,739 $ (152,496) $ 188,192 79.65% IT $ 3,594,239 $ 3,314,137 $ 4,289,173 $ 280,102 $ 694,934 83.80% PDS $ 2,397,098 $ 2,481,778 $ 2,665,760 $ (84,680) $ 268,662 89.92% PW $ 5,434,817 $ 5,703,869 $ 6,008,180 $ (269,052) $ 573,363 90.46% SS $ 2,260,115 $ 2,529,005 $ 2,444,092 $ (268,890) $ 183,977 92.47% Totals $ 50,853,908 $ 50,983,846 $ 54,489,851 $ (129,938) $ 3,635,943 93,33% FY 2025 ACTUAL YTD (SEPTEMBER) FY 2024 ACTUAL YTD (SEPTEMBER) AMENDED FY 2025 BUDGET YTD (SEPTEMBER) $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 $- CMO COMM CS CSO DPS ED FIN HR IT PDS PW SS CHART OUTLOOK: POSITIVE As indicated above, 2025 expenditures are slightly lower than those in 2024 for the same period, with a decrease of 0.25%. There are still outstanding expenditures for the fiscal year that will be posted over the next 30 days. The outlook is positive, as expenditures are expected to fall within the budgeted amount for the fiscal year. City of Southlake Monthly Financial Report 5 10/14/2025 INVESTMENT REPORT City of Southlake July 1 to September 30, 2025 i t , S f L { �r Ta.M1 -4 1 Hilltop Securities J�* Contents Market Recap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Investment Officers'Certification ...........................4 Portfolio Overview....................................5 Portfolio Overview....................................6 Asset Allocation......................................7 Credit Rating Summary.................................8 Benchmark Comparison.................................9 Fund Overview.....................................10 Detail of Security Holdings..............................11 Earned Income.....................................12 Investment Transactions................................13 Investment Transactions Totals ............................14 Amortization and Accretion .............................15 Projected Cash Flows..................................16 Projected Cash Flows Totals..............................18 Disclosures & Disclaimers...............................19 Investment Management Team Scott McIntyre Senior Portfolio Manager 512.481.2009 ScottMclntyre@HilltopSecurities.com Greg Warner Senior Portfolio Manager 572.487.2072 Greg.WGmer@HilltopSecurities.com Jodi Jones Investment Reporting Manager 512.487.2076 Jodi.Jones@HilltopSecurities.com ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 2 Hilltop Securities J�* Market Recap The Fed officially pivoted in September, lowering the fed funds rate by 25 basis points to a new target range of 4.00% to 4.25%. While the move was widely priced -in, Chair Powell called it a"risk management" cut. He emphasized that"inflation risks remain tilted to the upside;' pointing to persistent price pressures in services and energy. At the same time, he acknowledged that"employment risks are increasingly tilted to the downside;' reflecting the overwhelming concern over labor market weakness. The FOMC action came on the heels of weak data.The Augustjobs report showed nonfarm payrolls rising byjust+22k, well below consensus expectations of+75k. Revisions to prior months subtracted another 21 kjobs, bringing the three-month average to a mere +29k. The unemployment rate rose to 4.3%, its highest level since early 2022.The fewjob gains were concentrated in health care, while private sector hiring remained soft. Wage growth also slowed, with average hourly earnings rising +0.3% MoM. The August CPI report showed headline inflation rising +0.4% MoM and +2.9%YoY, driven by higher energy and transportation costs. Core CPI rose +0.3% MoM and held steady at +3.1 %YoY. Services inflation remained elevated, particularly in medical care and shelter. Goods prices were mixed, with declines in apparel and electronics offset by increases in household items and auto insurance.The persistence of sticky inflation, especially in non - discretionary categories, continues to complicate the Fed's path to more accommodative monetary policy. Despite the soft labor data, the broader economic picture was buoyed by a large upward revision to Q2 GDPThe final estimate showed real GDP grew at an annualized rate of+3.8%, up from the prior estimate of +3.3%.The massive upward revision was driven by stronger consumer spending and a narrowing trade deficit, with real final sales to private domestic purchasers revised up to +2.9%.The data underscores the resilience of the U.S. economy, even as pockets of weakness emerge. Equity markets responded positivelyto the Fed's pivot and the Q2 GDP revision.The S&P 500 and Nasdaq posted their best September performance in over 15 years, rising +3.3% City of Southlake As of September 30, 2025 and +5.3%, respectively. The rally was fueled by strong earnings, optimism around artificial intelligence, and expectations for further rate cuts. Year-to-date, the S&P 500 is now up nearly+15%, with growth stocks and tech leading the charge. Treasury yields fluctuated throughout the month. Short-term rates eased modestly following the Fed's rate cut, while longer -term yields remained elevated amid persistent inflation concerns and fiscal uncertainty.The yield curve steepened slightly, reflecting diverging expectations for near -term policy easing versus long-term inflation risks.The government shutdown, which began on September 29th, adds further confusion, raising concerns about delays in key data releases and fiscal stability. Political dynamics remain tense. Stephen Miran,Trump's newly appointed Fed Governor, publicly advocated for a deeper 50bps rate cut. His comments drew sharp criticism from more hawkish members of the FOMC, underscoring the growing divide within the Committee. Powell reiterated the Fed's commitment to'data dependency, but acknowledged that the path forward may require "greater flexibility" given the evolving economic landscape. With persistent inflation, faltering job growth, and political dysfunction escalating, the Fed faces a tough road ahead. September's rate cut may mark the beginning of a broader easing cycle, with markets currently pricing in a 100% probability of another rate cut at the end of October. ©Hilltop Securities Asset Management, LLC. All rights reserved. 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, 2025 Nicole Bradshaw Investment Officers Nicole Bradshaw Deputy Director of Finance Sharen Jackson Sharen Jackson Chief Financial Officer ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 4 Hilltop Securities J�* Portfolio Overview Portfolio Summary ParValue Original Cost BookValue Market Value Accrued Interest BookValue Plus Accrued Market Value Plus Accrued Net Unrealized Gain/(Loss) Asset Allocation 338,972,588.57 344,261,419.51 338,038,995.17 343,398,429.31 338,227,426.68 343,613,191.75 338,587,908.99 344,085,259.66 1,374,327.39 1,144,636.03 339,601,754.06 344,757,827.78 339,962,236.38 345,229,895.69 360,482.31 472,067.91 AGCY 4.96% LGIP60.61% MMFUND 5.81% US GOVT 28.61 % Income Summary Interest Income Net Amortization/Accretion Realized Gain/(Loss) Net Income Net Income Transaction Summary Maturity Coupon (13,000,000.00) 0.00 3,568,159.29 96,934.13 0.00 3,665,093.41 13,108,652.93 13,000,000.00 0.00 City of Southlake July 1, 2025 - September 30, 2025 Portfolio Characteristics Yield to Maturity Yield to Worst Days to Final Maturity Days to Effective Maturity Duration 4.289% 4.226% 4.289% 4.226% 167 132 167 132 1.15 1.04 0.00 13,000,000.00 0.00 1,409,125.00 1,409,125.00 0.00 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 5 City ake Hillto Securities. p As of September 30, 2025 m er30, 025 Portfolio Overview Maturity Distribution by Security Type Top Ten Holdings ■ AGCY 4.96% LGIP 60.61% ■ MMFUND 5.81a/o Issuer Allocation ■ US GOVT 28.61 % United States Department ofTheTreasury 28.61 % 75% 66.4 TEXSTAR 22.70% TXCLASS 12.73% 50% TEXPOOL 12.66% LONESTRGOV 7.13% I nvesco 5.81 % 25% 18.7 LONESTRCRP 5.39% 4.4 4.9 4.4 Federal Farm Credit Banks Funding Corporation 3.50% 1.2 0% Federal Home Loan Banks 1.46% yea yea yea yea �o� hoc hoc e Vol �1ti Maturity Distribution by Security Type SecurityType Overnight 0-3 Months 3-6 Months 6-9 Months 9-12 Months 1-2Years 2-3Years 3-4Years 4-5Years PortfolioTotal AGCY 7,004,471.03 10,025,186.94 17,029,657.97 LGIP 208,280,965.57 208,280,965.57 MMFUND 19,980,453.94 19,980,453.94 USGOVT 3,992,786.27 15,023,776.19 9,976,673.26 15,003,778.24 54,325,100.32 98,322,114.27 Total 228,261,419.51 3,992,786.27 15,023,776.19 16,981,144.28 15,003,778.24 64,350,287.26 — — — 343,613,191.75 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 6 Hilltop Securities. Asset Allocation Asset Allocation by Security Type as of 30-Jun-2025 AGCY 7.70% LGIP 60.46% MMFUND 1.62% US GOVT 30.22% Book Value Basis Security Distribution City of Southlake As of September 30, 2025 Asset Allocation by Security Type as of 30-Sep-2025 AGCY 4.96% LGIP 60.61 % MMFUND5.81% US GOVT 28.61 % AGCY 26,038,802.69 7.70116 (2.741/6) 17,029,657.97 4.96% 4.413% LGIP 204,479,906.35 60.46% 0.16% 208,280,965.57 60.61% 4.268% MMFUND 5,492,682.22 1.62% 4.19% 19,980,453.94 5.81% 4.140% US GOVT 102,216,035.42 30.22% (1.61 %) 98,322,114.27 28.61 % 4.122% PortfolioTotal 338,227,426.68 100.000/0 343,613,191.75 100.000/0 4.226% ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 7 Hilltop Securities. Credit Rating Summary Rating Distribution Local Government Investment Pools & Money Market Funds AAA 228,261,419.51 66.43% Total Local Government Investment Pools & Money Market Funds Long Term Rating Distribution AA+ 228,261,419.51 115,351,772.24 66.43% 33.57% Total Long Term Rating Distribution 115,351,772.24 33.57% PortfolioTotal 343,613,191.75 100.000/0 City of Southlake As of September 30, 2025 Allocation by Rating ■ AAA 66.43% ■ AA+ 33.57% ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 8 Hilltop Securities J�* Benchmark Comparison - City of Southlake 6 Month CMT - 1 Year CMT TexPool 6.W 5.50% 5.00% 4.50% City of Southlake As of September 30, 2025 4.00% �L3 O,�S e`y3 a �tia a` 1a `titx ya tx \vk ��a 1a �tia ,titx `titx tih ti� `yh `n') y� yh Lh 1h yh O� �o Oe lay` Fe �a PQ �a� �Jc �J� PJA heQ Yield Overview City of Southlake 4.91 5.07 5.22 5.20 5.21 5.19 5.19 5.31 5.29 5.29 5.25 5.14 4.93 4.78 4.66 450 4.43 435 4.35 432 4.29 4.28 4.27 4.23 6 Month CMT 5.47 5.50 5.48 5.43 5.39 5.36 5.33 5.33 5.34 5.34 5.29 5.16 5.00 4.84 4.66 4.50 4.39 4.34 4.30 4.28 4.27 4.28 4.25 4.18 1 Year CMT 5.01 5.06 5.08 5.09 5.09 5.12 5.15 5.17 5.16 5.12 5.04 4.93 4.82 4.75 4.69 4.64 4.58 4.50 4.40 4.31 4.23 4.16 4.11 4.08 TexPool 5.36 5.37 5.37 5.35 5.33 5.32 5.31 5.32 5.31 5.32 5.30 5.16 4.91 4.73 4.56 4.39 4.36 4.33 4.34 4.31 4.30 4.31 4.31 4.25 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 9 Hilltop Securities J�* Fund Overview General Operating City of Southlake July 1, 2025 - September 30, 2025 or bOOK value vrior iviamet value - Value current KooK value current iviamet value Net income uays io rmai imy r i ivi r i uv Total 338,227,426.68 338,587,908.99 5,497,350.67 343,613,191.75 344,085,259.66 3,665,093.41 132 4.226% 4.226% ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 10 Hilltop Securities J�* Detail of Security Holdings General Operating scoGov't&Agency INVSCSLAK MMFUND In LNSTCRP LGIP LoneStarCorpO/N LNSTGOV LGIP LoneStarGovO/N TEXPOOL LGIP TexPool TEXSTAR LGIP TexSTAR TXCLASS LGIP Texas CLASS 91282CGA3 06/24/24 US GOVT U.S.Treasury Note 91282CJV4 06/18/25 US GOVT U.S. Treasury Note 91282CGR6 03/13/25 US GOVT U.S.Treasury Note 91282CGV7 06/11/25 US GOVT U.S.Treasury Note 3133ERDZ1 05/10/24 AGCY FFCB 3133ERGA3 06/24/24 AGCY FFCB 91282CHM6 06/11/25 US GOVT U.S.Treasury Note 91282CLH2 02/21/25 USGOVT U.S. Treasury Note 91282CLS8 03/13/25 US GOVT U.S.Treasury Note 91282CME8 03/13/25 US GOVT U.S.Treasury Note 91282CMH1 03/13/25 USGOVT U.S. Treasury Note 3133EP6K6 02/21/25 AGCY FFCB 91282CKJ9 06/11/25 US GOVT U.S.Treasury Note 912828ZS2 03/13/25 US GOVT U.S. Treasury Note 3130AWBZ2 06/11/25 AGCY FHLB 91282CFB2 06/11/25 US GOVT U.S.Treasury Note 91282CFH9 02/21/25 USGOVT U.S. Treasury Note City of Southlake As of September 30, 2025 09/30/25 19,980,453.94 100.000 19,980,453.94 19,980,453.94 100.000 19,980,453.94 1 4.140 4.140 AAA 09/30/25 18,518,566.21 100.000 18,518,566.21 18,518,566.21 100.000 18,518,566.21 1 4.370 4.370 AAA 09/30/25 24,483,778.40 100.000 24,483,778.40 24,483,778.40 100.000 24,483,778.40 1 4.250 4.250 AAA 09/30/25 43,516,600.96 100.000 43,516,600.96 43,516,600.96 100.000 43,516,600.96 1 4.252 4.252 AAA 09/30/25 78,009,576.35 100.000 78,009,576.35 78,009,576.35 100.000 78,009,576.35 1 4.214 4.214 AAA 09/30/25 43,752,443.65 100.000 43,752,443.65 43,752,443.65 100.000 43,752,443.65 1 4.350 4.350 AAA 4.000 12/15/25 4,000,000.00 98.730 3,949,218.75 3,992,786.27 100.000 4,000,000.00 76 4.902 4.902 AA+ 4.250 01 /31 /26 5,000,000.00 99.988 4,999,414.06 4,999,794.49 100.063 5,003,125.00 123 4.263 4.263 AA+ 4.625 03/15/26 10,000,000.00 100.523 10,052,343.75 10,023,981.70 100.328 10,032,812.50 166 4.088 4.088 AA+ 3.750 04/15/26 10,000,000.00 99.633 9,963,281.25 9,976,673.26 99.949 9,994,921.90 197 4.192 4.192 AA+ 4.750 05/08/26 3,000,000.00 99.820 2,994,588.00 2,998,313.79 100.547 3,016,401.00 220 4.846 4.846 AA+ 5.000 06/04/26 4,000,000.00 100.429 4,017,141.00 4,006,157.24 100.788 4,031,536.00 247 4.765 4.765 AA+ 4.500 07/15/26 10,000,000.00 100.367 10,036,718.75 10,026,831.12 100.559 10,055,859.40 288 4.150 4.150 AA+ 3.750 08/31/26 5,000,000.00 99.242 4,962,109.38 4,976,947.12 99.996 4,999,804.70 335 4.270 4.270 AA+ 4.125 10/31/26 10,000,000.00 100.164 10,016,406.25 10,011,248.29 100.434 10,043,359.40 396 4.018 4.018 AA+ 4.250 12/31/26 10,000,000.00 100.422 10,042,187.50 10,029,858.17 100.645 10,064,453.10 457 4.002 4.002 AA+ 4.125 01 /31 /27 10,000,000.00 100.227 10,022,656.25 10,016,405.19 100.535 10,053,515.60 488 3.997 3.997 AA+ 4.500 03/26/27 5,000,000.00 100.467 5,023,355.05 5,016,894A9 101.177 5,058,865.00 542 4,263 4.263 AA+ 4.500 04/15/27 5,000,000.00 100.832 5,041,601.56 5,035,078.20 101.234 5,061,718.75 562 4.025 4.025 AA+ 0.500 05/31/27 10,000,000.00 92.676 9,267,578.13 9,444,744.12 94.953 9,495,312.50 608 3.984 3.984 AA+ 4.125 06/11/27 5,000,000.00 100.195 5,009,738.25 5,008,292A5 100.739 5,036,960.00 619 4,023 4.023 AA+ 2.750 07/31/27 5,000,000.00 97.457 4,872,851.56 4,890,610.82 98.434 4,921,679.70 669 4.001 4.001 AA+ 3.125 08/31/27 5,000,000.00 97.316 4,865,820.31 4,897,155.54 99.070 4,953,515.60 700 4.260 4.260 AA+ Total General 344,261,419.51 343,398,429.31 343,613,191.75 344,085,259.66 132 4.226 4.226 Operating Grand Total 344,261,419.51 343,398,429.31 343,613,191.75 344,085,259.66 132 4.226 4.226 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page I I Hilltop Securities J�* Earned Income General Operating City of Southlake July 1, 2025 - September 30, 2025 3130131 FH5 AGCY FHLB 117,352.78 9,897.22 127,250.00 0.00 0.00 (51.79) 0.00 9,845.43 91282CFE6 US GOVT U.S. Treasury Note 46,961.33 15,538.67 62,500.00 0.00 0.00 9,170.12 0.00 24,708.79 3130AWS92 AGCY FHLB 59,041.67 38,458.33 97,500.00 0.00 0.00 (3,607.48) 0.00 34,850.85 INVSCSLAK MMFUND I nvesco Gov't & Agency MM 59,763.45 140,715.75 138,410.17 0.00 62,069.03 0.00 0.00 140,715.75 LNSTCRP LGIP LoneStarCorp C/N 0.00 203,902.89 203,902.89 0.00 0.00 0.00 0.00 203,902.89 LNSTGOV LGIP LoneStar Gov O/N 0.00 262,963.68 262,963.68 0.00 0.00 0.00 0.00 262,963.68 TEXPOOL LGIP TexPool 0.00 470,193.90 470,193.90 0.00 0.00 0.00 0.00 470,193.90 TEXSTAR LGIP TexSTAR 0.00 832,675.29 832,675.29 0.00 0.00 0.00 0.00 832,675.29 TXCLASS LGIP Texas CLASS 0.00 480,579.71 480,579.71 0.00 0.00 0.00 0.00 480,579.71 91282CGA3 US GOVT U.S. Treasury Note 6,994.54 40,218.58 0.00 0.00 47,213.11 8,848.84 0.00 49,067.42 91282CJV4 US GOVT U.S. Treasury Note 88,639.50 53,412.13 106,250.00 0.00 35,801.63 296.99 0.00 53,709.12 91282CGR6 US GOVT U.S. Treasury Note 135,733.70 115,958.29 231,250.00 0.00 20,441.99 (12,973.86) 0.00 102,984.44 91282CGV7 US GOVT U.S. Treasury Note 78,893.44 94,262.30 0.00 0.00 173,155.74 11,000.58 0.00 105,262.87 3133ERDZ1 AGCY FFCB 20,979.17 35,625.00 0.00 0.00 56,604.17 685.03 0.00 36,310.03 3133ERGA3 AGCY FFCB 15,000.00 50,000.00 0.00 0.00 65,000.00 (2,253.60) 0.00 47,746.40 91282CHM6 US GOVT U.S. Treasury Note 207,596.69 112,783.75 225,000.00 0.00 95,380.43 (8,261.30) 0.00 104,522.45 91282CLH2 US GOVT U.S. Treasury Note 62,669.84 47,136.79 93,750.00 0.00 16,056.63 6,178.69 0.00 53,315.48 91282CLS8 US GOVT U.S. Treasury Note 69,497.28 103,125.00 0.00 0.00 172,622.28 (2,529.17) 0.00 100,595.83 91282CME8 US GOVT U.S. Treasury Note 1,154.89 106,250.00 0.00 0.00 107,404.89 (5,843.10) 0.00 100,406.90 91282CMH1 US GOVT U.S. Treasury Note 172,064.92 103,682.37 206,250.00 0.00 69,497.28 (2,934.32) 0.00 100,748.04 3133EP6K6 AGCY FFCB 59,375.00 56,250.00 112,500.00 0.00 3,125.00 (2,729.26) 0.00 53,520.74 91282CKJ9 US GOVT U.S. Treasury Note 47,336.07 56,557.38 0.00 0.00 103,893.44 (5,358.48) 0.00 51,198.90 912828ZS2 US GOVT U.S. Treasury Note 4,234.97 12,568.31 0.00 0.00 16,803.28 8Q935.33 0.00 93,503.64 3130AWBZ2 AGCY FHLB 11,458.33 51,562.50 0.00 0.00 63,020.83 (1,187.62) 0.00 50,374.88 91282CFB2 US GOVT U.S. Treasury Note 57,354.97 34,560.79 68,750.00 0.00 23,165.76 14,551.18 0.00 49,111.97 91282CFH9 US GOVT U.S. Treasury Note 52,224.86 39,280.66 78,125.00 0.00 13,380.52 12,997.35 0.00 52,278.01 Total General Operating 1,374,327.39 3,568,159.29 3,797,850.64 0.00 1,144,636.03 96,934.13 0.00 3,665,093.41 Grand Total 1,374,327.39 3,568,159.29 3,797,850.64 0.00 1,144,636.03 96,934.13 0.00 3,665,093.41 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 12 Hilltop Securities J�* Investment Transactions General Operating Coupon City of Southlake July 1, 2025 - September 30, 2025 91282CHM6 07/15/25 07/15/25 US GOVT U.S. Treasury Note 4.500 07/15/26 0.00 0.00 225,000.00 225,000.00 0.00 - - 313061 FH5 07/15/25 07/15/25 AGCY FHLB 5.090 07/15/25 0.00 0.00 127,250.00 127,250.00 0.00 - - 91282CFB2 07/31/25 07/31/25 US GOVT U.S. Treasury Note 2.750 07/31/27 0.00 0.00 68,750.00 68,750.00 0.00 - - 91282C1V4 07/31/25 07/31/25 US GOVT U.S. Treasury Note 4.250 01/31/26 0.00 0.00 106,250.00 106,250.00 0.00 - - 91282CMH1 07/31/25 07/31/25 US GOVT U.S. Treasury Note 4.125 01/31/27 0.00 0.00 206,250.00 206,250.00 0.00 - 91282CFE6 08/15/25 08/15/25 US GOVT U.S. Treasury Note 3.125 08/15/25 0.00 0.00 62,500.00 62,500.00 0.00 - - 91282CFH9 08/31/25 08/31/25 US GOVT U.S. Treasury Note 3.125 08/31/27 0.00 0.00 78,125.00 78,125.00 0.00 - - 91282CLH2 08/31/25 08/31/25 US GOVT U.S. Treasury Note 3.750 08/31/26 0.00 0.00 93,750.00 93,750.00 0.00 - - 3130AWS92 09/12/25 09/12/25 AGCY FHLB 4.875 09/12/25 0.00 0.00 97,500.00 97,500.00 0.00 - - 91282CGR6 09/15/25 09/15/25 US GOVT U.S. Treasury Note 4.625 03/15/26 0.00 0.00 231,250.00 231,250.00 0.00 - - 3133EP6K6 09/26/25 09/26/25 AGCY FFCB 4.500 03/26/27 0.00 0.00 112,500.00 112,500.00 0.00 - - Total Coupon 0.00 0.00 1,409,125.00 1AW,125.00 0.00 Maturity 313061 FH5 07/15/25 07/15/25 AGCY FHLB 5.090 07/15/25 (5,000,000.00) 100.000 5,000,000.00 0.00 5,000,000.00 0.00 - - 91282CFE6 08/15/25 08/15/25 US GOVT U.S. Treasury Note 3.125 08/15/25 (4,000,000.00) 100.000 4,000,000.00 0.00 4,000,000.00 0.00 - - 3130AWS92 09/12/25 09/12/25 AGCY FHLB 4.875 09/12/25 (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 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 13 Hilltop Securities J�* Investment Transactions Totals Total Maturity (13,000,000.00) 13,000,000.00 0.00 13,000,000.00 0.00 Total Coupon 0.00 0.00 1,409,125.00 1,409,125.00 0.00 City of Southlake July 1, 2025 - September 30, 2025 4.847 4.847 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 14 Hilltop Securities J�* Amortization and Accretion General Operating City of Southlake July 1, 2025 - September 30, 2025 3130131FH5 05/20/24 AGCY FHLB 0.00 0.000 0.00 (51.79) 0.00 0.00 0.00 91282CFE6 05/10/24 US GOVT U.S. Treasury Note 0.00 0.000 0.00 9,170.12 0.00 0.00 0.00 3130AWS92 08/09/24 AGCY FHLB 0.00 0.000 0.00 (3,607.48) 0.00 0.00 0.00 91282CGA3 06/24/24 US GOVT U.S. Treasury Note 4,000,000.00 98.730 3,949,218.75 8,848.84 43,567.52 (7,213.73) 3,992,786.27 91282CJV4 06/18/25 USGOVT U.S. Treasury Note 5,000,000.00 99.988 4,999,414.06 296.99 380.43 (205.51) 4,999,794.49 91282CGR6 03/13/25 US GOVT U.S. Treasury Note 10,000,000.00 100.523 10,052,343.75 (12,973.86) (28,362.05) 23,981.70 10,023,981.70 91282CGV7 06/11/25 USGOVT U.S. Treasury Note 10,000,000.00 99.633 9,963,281.25 11,000.58 13,392.01 (23,326.74) 9,976,673.26 3133ERDZ1 05/10/24 AGCY FFCB 3,000,000.00 99.820 2,994,588.00 685.03 3,725.79 (1,686.21) 2,998,313.79 3133ERGA3 06/24/24 AGCY FFCB 4,000,000.00 100.429 4,017,141.00 (2,253.60) (10,983.76) 6,157.24 4,006,157.24 91282CHM6 06/11/25 USGOVT U.S. Treasury Note 10,000,000.00 100.367 10,036,718.75 (8,261.30) (9,887.63) 26,831.12 10,026,831.12 91282CLH2 02/21/25 USGOVT U.S. Treasury Note 5,000,000.00 99.242 4,962,109.38 6,178.69 14,837.74 (23,052.88) 4,976,947.12 91282CLS8 03/13/25 USGOVT U.S. Treasury Note 10,000,000.00 100.164 10,016,406.25 (2,529.17) (5,157.96) 11,248.29 10,011,248.29 91282CME8 03/13/25 USGOVT U.S. Treasury Note 10,000,000.00 100.422 10,042,187.50 (5,843.10) (12,329.33) 29,858.17 10,029,858.17 91282CMH1 03/13/25 USGOVT U.S. Treasury Note 10,000,000.00 100.227 10,022,656.25 (2,934.32) (6,251.06) 16,405.19 10,016,405.19 3133EP6K6 02/21/25 AGCY FFCB 5,000,000.00 100.467 5,023,355.05 (2,729.26) (6,460.56) 16,894.49 5,016,894.49 91282CKJ9 06/11/25 USGOVT U.S. Treasury Note 5,000,000.00 100.832 5,041,601.56 (5,358.48) (6,523.36) 35,078.20 5,035,078.20 912828ZS2 03/13/25 US GOVT U.S. Treasury Note 10,000,000.00 92.676 9,267,578.13 80,935.33 177,165.99 (555,255.88) 9,444,744.12 3130AWBZ2 06/11/25 AGCY FHLB 5,000,000.00 100.195 5,009,738.25 (1,187.62) (1,445.80) 8,292.45 5,008,292.45 91282CFB2 06/11/25 USGOVT U.S. Treasury Note 5,000,000.00 97.457 4,872,851.56 14,551.18 17,759.26 (109,389.18) 4,890,610.82 91282CFH9 02/21/25 USGOVT U.S. Treasury Note 5,000,000.00 97.316 4,865,820.31 12,997.35 31,335.23 (102,844.46) 4,897,155.54 Total General 116,000, 0.00 115,137,009.80 96,934.13 214,762A4 (648,227.76) 115,351,772.24 Operating Grand Total 116,000,000.00 115,137,009.80 96,934.13 214,762.44 (648,227.76) 115,351,772.24 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 15 Hilltop Securities J�* Projected Cash Flows General Operating City of Southlake September 30, 2025 to September 30, 2026 91282CGV7 U.S. Treasury Note 10/15/25 187,500.00 187,500.00 91282CKJ9 U.S. Treasury Note 10/15/25 112,500.00 112,500.00 91282CLS8 U.S. Treasury Note 10/31/25 206,250.00 206,250.00 3133ERDZ1 FFCB 11/10/25 71,250.00 71,250.00 912828ZS2 U.S. Treasury Note 12/01/25 25,000.00 25,000.00 3133ERGA3 FFCB 12/04/25 100,000.00 100,000.00 3130AWBZ2 FHLB 12/11/25 103,125.00 103,125.00 91282CGA3 U.S. Treasury Note 12/15/25 80,000.00 80,000.00 91282CGA3 U.S. Treasury Note 12/15/25 4,000,000.00 4,000,000.00 91282CME8 U.S. Treasury Note 12/31/25 212,500.00 212,500.00 91282CHM6 U.S. Treasury Note 01/15/26 225,000.00 225,000.00 91282CFB2 U.S. Treasury Note 02/02/26 68,750.00 68,750.00 91282CJV4 U.S. Treasury Note 02/02/26 106,250.00 106,250.00 91282CJV4 U.S. Treasury Note 02/02/26 5,000,000.00 5,000,000.00 91282CMH1 U.S. Treasury Note 02/02/26 206,250.00 206,250.00 91282CFH9 U.S. Treasury Note 03/02/26 78,125.00 78,125.00 91282CLH2 U.S. Treasury Note 03/02/26 93,750.00 93,750.00 91282CGR6 U.S. Treasury Note 03/16/26 231,250.00 231,250.00 91282CGR6 U.S. Treasury Note 03/16/26 10,000,000.00 10,000,000.00 3133EP6K6 FFCB 03/26/26 112,500.00 112,500.00 91282CGV7 U.S. Treasury Note 04/15/26 187,500.00 187,500.00 91282CGV7 U.S. Treasury Note 04/15/26 10,000,000.00 10,000,000.00 91282CKJ9 U.S. Treasury Note 04/15/26 112,500.00 112,500.00 91282CLS8 U.S. Treasury Note 04/30/26 206,250.00 206,250.00 3133ERDZ1 FFCB 05/08/26 71,250.00 71,250.00 3133ERDZ1 FFCB 05/08/26 3,000,000.00 3,000,000.00 912828ZS2 U.S. Treasury Note 06/01/26 25,000.00 25,000.00 3133ERGA3 FFCB 06/04/26 100,000.00 100,000.00 3133ERGA3 FFCB 06/04/26 4,000,000.00 4,000,000.00 3130AWBZ2 FHLB 06/11/26 103,125.00 103,125.00 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 16 Hilltop Securities J�* Projected Cash Flows City of Southlake September 30, 2025 to September 30, 2026 91282CME8 U.S. Treasury Note 06/30/26 212,500.00 212,500.00 91282CHM6 U.S. Treasury Note 07/15/26 225,000.00 225,000.00 91282CHM6 U.S. Treasury Note 07/15/26 10,000,000.00 10,000,000.00 91282CFB2 U.S. Treasury Note 07/31/26 68,750.00 68,750.00 91282CMH1 U.S. Treasury Note 07/31/26 206,250.00 206,250.00 91282CFH9 U.S. Treasury Note 08/31/26 78,125.00 78,125.00 91282CLH2 U.S. Treasury Note 08/31/26 93,750.00 93,750.00 91282CLH2 U.S. Treasury Note 08/31/26 5,000,000.00 5,000,000.00 3133EP6K6 FFCB 09/28/26 112,500.00 112,500.00 Grand Total 4,022,500.00 51,000,000.00 55,022,500.00 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 17 Hilltop Securities J�* Projected Cash Flows Totals City of Southlake September 30, 2025 to September 30, 2026 October 2025 506,250.00 506,250.00 November 2025 71,250.00 71,250.00 December 2025 520,625.00 4,000,000.00 4,520,625.00 January 2026 225,000.00 225,000.00 February 2026 381,250.00 5,000,000.00 5,381,250.00 March 2026 515,625.00 10,000,000.00 10,515,625.00 April 2026 506,250.00 10,000,000.00 10,506,250.00 May 2026 71,250.00 3,000,000.00 3,071,250.00 June 2026 440,625.00 4,000,000.00 4,440,625.00 July 2026 500,000.00 10,000,000.00 10,500,000.00 August 2026 171,875.00 5,000,000.00 5,171,875.00 September 2026 112,500.00 112,500.00 Total 4,022,500.00 51,000,000.00 55,022,500.00 ■ Interest ■ Principal $15,000,000 $10,000,000 $5,000,000 $0 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-2 Jul-26 Aug-26 Sep-26 ©Hilltop Securities Asset Management, LLC. All rights reserved. Page 18 Hillto Securities � City of Southlake i� As of September 30, 2025 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. 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. 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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 2025, S&P Global Market Intelligence. 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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. OHilltop Securities Asset Management, LLC. All rights reserved. Page 19