Page 459 - FortWorthFY23AdoptedBudget

liquidity, marketability of securities, diversification controls and reasonably
attainable yield. The strategies will utilize competitive bidding practices and other
controls as established by this policy for all transactions.

The investment strategy for each portfolio incorporates the specific considerations
and the unique characteristics of the fund groups represented in that portfolio. Both
portfolios shall be invested in high credit quality investments. For the Short-Term
Portfolio the City shall pursue a strategy which fully utilizes its cash assets to obtain
a competitive yield while also allowing the City to meet projected cash flow
needs, to minimize the cost of liquidity, and to maintain the objectives set forth in
this policy. The investment strategy for the Long-Term Portfolio will be focused
on appreciation while also meeting the objectives set forth in this policy.

At all times the City shall maintain a cash buffer to meet daily anticipated liquidity
requirements by structuring the Short-Term Portfolio to maintain approximately
10% in liquid investments. Based upon the analysis of historic cash flow patterns,
the Short-Term Portfolio shall not exceed a weighted average maturity (WAM) of
two and one-half (2.5) years, and no security in this portfolio shall exceed a
maximum stated maturity of five (5) years. In the Long-Term Portfolio the
maximum WAM shall not exceed seven and one half (7.5) years, and no security
shall exceed a maximum stated maturity of ten (10) years. Notwithstanding the
foregoing, if state law and/or this policy provides for a lower maximum stated
maturity for a particular type of investment, that more restrictive requirement shall
control.

Investment earnings from both portfolios shall be allocated to the various
participating funds based on each fund's pro rata ownership in the portfolio and in
accordance with generally accepted accounting principles. Investment earnings will
be allocated to the participating funds or their corresponding debt service funds as
determined in the City's annual budget process.

Securities may be sold before they mature if market conditions present an
opportunity for the City to benefit from the sale. The Investment Officer(s)
and/or Investment Advisor will continuously monitor the contents of each portfolio,
the available markets, and the relative value of competing instruments to adjust
each portfolio in response to market conditions.

Securities lending, as more fully described in Authorized Investments (Section IX),
may be used to add incremental income to both portfolios when it proves to be
beneficial to the City.

VI. Standard of Care

The standard of prudence to be used for all City investments shall be the

Page 459 of 623