Page 434 - FortWorthFY22AdoptedBudget

targeted diversification may change in accordance with these conditions.

Guidelines for target investment diversification for the combined Short-Term and
Long-Term Portfolios are as follows:

US Obligations 80 %
US Agencies/Instrumentalities 80 %
Any one issuer 35 %
Depository Certificates of Deposit 30 %
Any one bank 10 %
Commercial Paper 20 %
Any one issuer 5 %
Local Government Investment Pools 80 %
Money Market Mutual Funds 80 %
Brokered Certificate of Deposit Securities 10 %
Municipal Obligations 35 %
Any one issuer 5 %
Repurchase Agreements 50 %
Flex in one specific bond fund (100 %)
Bankers Acceptances 15 %

Fluctuations in cash flows may cause the portfolios to vary. Comparison to these
diversification targets will be reported as part of all regular monthly and quarterly
investment reports. Securities need not be liquidated to realign the portfolios.

The following table provides a guideline for targets in laddering maturities in the
Short-Term Portfolio. Market calls and advantageous trades prior to maturity
swaps may cause the portfolio to deviate from these guidelines. Securities need not
be liquidated to realign the portfolios so long as the weighted average maturity for
the overall portfolio remains at or below the maximum two and one half (2.5) year
limitation.

Maturity Range

Liquidity 10%
1 month – 1 year 30%
1 year – 2 year 15%
2 year – 3 year 15%
3 year – 4 year 15%
4 year – 5 year 15%

XIII. Internal Controls

The Investment Officer(s) have the responsibility of establishing and maintaining
an internal control structure designed to provide reasonable assurance that assets

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