City of Euless

Annual Investment Report Fiscal Year 2024-2025

201 N. Ector Drive, Euless, TX 76039 www.eulesstx.gov

* Compliance Summary - Legislative Requirements Introduction Investment Strategy Compliance

* Annual Review, Fiscal Year 2025 I. Portfolio Summary II. Performance Summary III. Interest Income Summary IV. Collateral Review V. Broker Selection Process VI. Summary

* Certification

* Minutes from 1/13/2026

* Appendices Appendix A - Investment Portfolio by Fund Appendix B - Investment Purchases Appendix C - Investment Maturities Appendix D - Investment Types and Institutions

* Investment Policy

* Broker / Dealers

* Economic News

Investment Committee Meeting 1/27/2026

INTRODUCTION

The information contained in this report will quantitatively and graphically demonstrate the achievement of these City objectives for Fiscal Year 2024-25.

This report is written and submitted in accordance with Chapter 2256 of the Texas Government Code entitled the "Public Funds Investment Act," which states that "at least once each year, the investment officer of a state agency or political subdivision shall prepare a written report concerning the agency's or subdivision's local funds investment transactions for the preceding year and describing in detail the investment position of the agency or subdivision as of the date of the report."

The City's investment policy designates the Investment Officers as the responsible managers of the City's investment program. The daily investment procedures are monitored by the City's Finance department and reviewed by the Investment Officers. This report has been signed by each Investment Officer as required by the Public Funds Investment Act and the City's investment policy.

In compliance with the City's investment policy, the Finance department fulfills four main objectives:

compliance, safety, liquidity, and yield, in that order. Compliance is maintained through regular reporting to City management on a monthly, quarterly and annual basis. Safety is insured by 1) investing only in securities allowed by Chapter 2256 of the Texas Government Code entitled the "Public Funds Investment Act;" 2) using delivery vs. payment for all purchases; 3) protecting all non-government securities (cash and bank certificates of deposit) with collateral including Federal Deposit Insurance Corporation (FDIC) Insurance, Federal Savings and Loan Insurance Corporation (FSLIC) Insurance and/or eligible securities as defined in Government Code Chapter 2257 Collateral for Public Funds Section 2257.002; and 4) diversifying investment purchases into different security markets to minimize individual market risk.

Liquidity is met by matching investment terms to future operating cash needs such as payroll, accounts payable, debt service, and capital improvement disbursements. The City also utilizes money market funds and local government investment pools to provide daily liquidity needs. Per the Investment Policy, the yield or rate of return which the City receives is measured against the 90-day treasury bill yield.

101 General Fund 250 Glade Parks TIRZ #3 Fund 201 Hotel-Motel Tax Fund 260 Cable PEG Fund 202 Juvenile Case Fund 265 Glade Parks PID #2 Fund 210 ½¢ Sales Tax Operations Fund 270 Midtown PID Fund 220 Crime Control & Prevention District Fund 275 Midtown TIRZ #4 Fund 221 Police Seized Asset Fund 501 Water & Wastewater Fund 223 PD Financial Crimes Recovery Fund 504 Service Center Fund 225 PD Narcotics Task Force Fund 510 Drainage Utility Fund 227 Elementary SRO Fund 520 Recreation Classes Fund 230 Police Drug DEA Awards Fund 521 Arbor Daze Fund 231 Police Drug State Awards Fund 530 PATS Operations Fund 232 Local Drug Seizure Fund 540 TSGC Operations Fund 240 Car Rental Tax Fund 601 Equipment Replacement Fund 243 American Rescue Plan Fund 610 Health Insurance Fund 245 Glade Parks PID Fund 615 Risk Management/Worker's Comp Fund

301 Developer's Escrow Fund 330 Car Rental CIP Fund 305 Streets CIP Fund 502 Water & Wastewater CIP Fund 310 ½¢ Sales Tax CIP Fund 505 Water Impact Fees Fund 320 General CIP Fund 508 Wastewater Impact Fees Fund 321 Redevelopment CIP Fund 511 Drainage CIP Fund 322 Midtown Development CIP Fund 543 TSGC CIP Fund 325 Police Facility CIP Fund 552 PATS CIP Fund

401 Debt Service/General Obligation Fund 410 ½¢ Sales Tax Debt Service Fund 402 Star Center Debt Service Fund 506 Water & Wastewater Debt Service Fund 403 Glade Parks Debt Service Fund 541 TSGC Debt Service Fund 404 Midtown Development Debt Service Fund

102 General Fund Emergency 507 Water & Wastewater Emergency Fund 103 General Fund Contingency 509 Water & WW Rate Stabilization Reserve Fund 211 ½¢ Sales Tax Debt Reserve Fund 532 PATS Reserve Fund 240 Car Rental Tax Fund ($4,000,000 Reserve) 542 TSGC Reserve Fund 323 Midtown Development Reserve Fund 705 Star Center Escrow Fund 503 Water & Wastewater Debt Reserve Fund

Janina Jewell Director of Finance

Ross Fairclo Assistant Director of Finance

-Emergency, Contingency, Operating and Debt Service Reserve funds will have the ability to generate a dependable revenue stream to the appropriate fund from securities with a low degree of volatility. Such securities will tend to hold their value during economic cycles. The stated final maturity dates of securities held should not exceed five years. These funds include:

Based on the above strategies, the investment portfolio reported herein is in compliance with the City's adopted investment policy.

The strategy for all pooled funds is to assure that cash flows are matched with projected needs and provide adequate liquidity and safety. This may be accomplished by purchasing high quality securities in a laddered structure or utilizing an investment pool. Furthermore, the following purposes are also considered when investing.

Investment Strategy Compliance

-Operating Funds will be structured in such a way as to minimize volatility during economic cycles. This may be accomplished by purchasing high quality short-term securities. The weighted average maturity on these funds will remain within the 6 to 9 month range. These funds include:

-Funds for Capital Improvement Projects (CIP) and Special Purposes may purchase securities which allow for flexibility and unanticipated project outlays by having a portion of their investments in highly liquid securities. The stated final maturity dates of securities held should not exceed the estimated project completion date. These funds include:

-Debt Service Funds should assure adequate liquidity to cover the debt service obligations on the required payment dates. These funds include:

Instrument $ Cost % of

Portfolio

Weighted Average

Yield

Weighted Avg. Yield Prior Qtr.

Agencies & CD's 60,727,270$ 33% 1.41% 1.43%

Gov't Pools 124,339,949$ 67% 2.83% 2.85%

185,067,219$ 100.00%

I. PORTFOLIO SUMMARY

The City's investment portfolio at the end of the fiscal year, September 30, 2025, is summarized by instrument as shown below.

Distribution by Instrument

The Distribution by Instrument table shows approximately 67% of City funds are invested in overnight investment pools, while the remaining 33% is invested in government agencies and CD's. As of the date of this report, the weighted average yield on the portfolio was 4.24%. When compared to prior quarter levels, the yield on the portfolio has begun to decline due to Fed rate cuts, the early redemption of debt, reinvestment in the overnight market and utilizing proceeds from maturities and calls for cash flow purposes. The portfolio composition below demonstrates the diversity within the portfolio.

FFCB

13%

FHLB

13%

FNMA

1%

FAMCA

3%

CD

3%

TexPool 23%

TexStar 22%

TexasClass 22%

Other 67%

Portfolio Composition as of September 30, 2025

# of months $ Cost % of Portfolio Overnight 124,339,949$ 67% < 1 mo 240,000$ 0% up to 6 mos 13,673,820$ 7% 6 to 9 mos 7,918,040$ 4% 9 to 12 mos 2,479,600$ 2% 12 to 18 mos 17,719,000$ 10% 18 to 24 mos 5,198,060$ 3% > 24 mos 13,498,750$ 7%

185,067,219$ 100%

I. PORTFOLIO SUMMARY (CONTINUED)

The City's investment portfolio at the end of the fiscal year, September 30, 2025, is summarized by maturity as shown below.

Distribution by Maturity

The Distribution by Maturity table reflects the degree of liquidity in the City's portfolio. Currently, access to 67% of the portfolio is available within 24 hours, with an additional 7% available within 6 months. This liquidity strategy was followed to meet cash flow requirements for construction projects, payroll, debt service, and other operating expenses. An additional 6% of the portfolio matures within one year. The City has 10% of the portfolio invested from 12 - 18 months, with 3% invested in the 18-24 month range. The remaining 7% is invested in the greater than 24 month range. The weighted average maturity on the portfolio is currently

145.38 days.

$124.3

$0.2

$13.7

$7.9

$2.5

$17.7

$5.2

$13.5

$0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0

Overnight

< 1 mo up to 6 mos

6 to 9 mos

9 to 12 mos

12 to 18 mos

18 to 24 mos

> 24 mos

Investment Maturity Distribution as of September 30, 2025

Shown in millions

Institution $ Cost % of Portfolio Duncan Williams 8,000,000$ 4%

FHN Financial 11,000,000$ 7% Hilltop Securities 9,999,250$ 5%

Financial Northeastern 8,738,000$ 5% Samco Capital 11,994,170$ 7%

Vining Sparks KNA Stifel 10,995,850$ 6% TexPool 41,548,201$ 22% TexStar 41,446,655$ 22%

TexasCLASS 41,345,093$ 22% 185,067,219$ 100%

-No more than 33% in money market mutual funds, and -No more than 33% by individual brokerage firms.

The chart below demonstrates the City's compliance with the above guidelines.

I. PORTFOLIO SUMMARY (CONTINUED)

The City's investment portfolio at the end of the fiscal year, September 30, 2025, is summarized by institution as shown below.

Distribution by Institution

The City strives to not only diversify the portfolio by the type of instruments that are purchased, but also by the institution from which they are purchased. The City uses the following guidelines:

-No more than 10% in repurchase agreements, -No more than 33% in investment pools with any single institution, $0.0 $10.0 $20.0 $30.0 $40.0 $50.0

Duncan

FHN

Hilltop

FNS

Samco

Vining/Stifel

TexPool

TexStar

TexasCLASS

$8.0

$11.0

$10.0

$8.7

$12.0

$11.0

$41.5

$41.4

$41.3

Investments by Institution as of September 30, 2025

Shown in millions

City of Euless Pooled Portfolio Summary for Fiscal Year Ending September 30, 2025

Cost Book Market Principal Only Value Value

Investments at June 30, 2025 207,357,091$ 207,336,013$ 207,497,161$

Investment Purchases/Dividends 27,823,322$

Investment Maturities (50,113,194)$

Investments at September 30, 2025 185,067,219$ 185,046,623$ 185,260,951$

Janina Jewell Director of Finance

Ross Fairclo Assistant Director of Finance

Summary of Investments by Fund

Cash & Investment Cash & Investment Increase/ at Market Value at Market Value (Decrease)

6/30/2025 9/30/2025 In Fund

101 General Fund 31,049,700$ 26,775,765$ (4,273,936)$ Operating expenses 102 General Fund Emergency 496,567$ 499,225$ 2,658$ 103 General Fund Contingency 996,542$ 1,000,000$ 3,458$ 201 Hotel-Motel Tax Fund 2,076,158$ 2,140,706$ 64,547$ 202 Juvenile Case Fund 284,903$ 293,788$ 8,885$ 210 ½¢ Sales Tax Operations Fund 3,160,568$ 3,785,749$ 625,180$ tax revenue 211 ½¢ Sales Tax Debt Reserve Fund 401,125$ 401,125$ -$ 220 Crime Control & Prevention District Fu 976,554$ 1,347,359$ 370,805$ tax revenue 221 Police Seized Asset Fund 179,951$ 179,107$ (844)$ 223 PD Financial Crimes Recovery Fund 6$ 6$ (0)$ 225 PD Narcotics Task Force Fund 182,963$ 178,873$ (4,090)$ 227 Elementary SRO Fund (324,161)$ (93,825)$ 230,336$ pmt received 230 Police Drug DEA Awards Fund 232,053$ 235,342$ 3,290$ 231 Police Drug State Awards Fund 254,798$ 258,384$ 3,587$ 232 Local Drug Seizure Fund 127,012$ 128,652$ 1,641$ 235 Public Safety Grant Fund 38,101$ 74,201$ 36,100$ 236 Police Grant Fund -$ -$ -$ 237 Texas Transportation Grant Fund (8,347)$ (10,585)$ (2,238)$ 240 Car Rental Tax Fund 5,597,745$ 11,782,161$ 6,184,416$ Motor vehicle tax collection

240-R Car Rental Reserve Fund 4,027,985$ 4,036,873$ 8,888$ 243 American Rescue Plan Fund 5,941,274$ 5,940,491$ (783)$ 245 Glade Parks PID Fund (0)$ (0)$ -$ 250 Glade Parks TIRZ #3 Fund 3,641,577$ 1,217,778$ (2,423,799)$ Early redemption of debt 260 Cable PEG Fund 628,685$ 641,793$ 13,108$ 265 Glade Parks PID #2 Fund -$ -$ 270 Midtown PID Fund 49,169$ 6,823$ (42,346)$ 275 Midtown TIRZ #4 Fund 939,198$ 1,137,154$ 197,956$ 301 Developer's Escrow Fund 2,972,494$ 3,020,822$ 48,328$ Capital outlay 305 Streets CIP Fund 3,498,722$ 3,471,555$ (27,168)$ 310 ½¢ Sales Tax CIP Fund 6,481,248$ 7,373,234$ 891,986$ 320 General CIP Fund 14,599,145$ 14,398,728$ (200,417)$ Project expense 321 Redevelopment CIP Fund 2,076,634$ 2,076,156$ (478)$ 322 Midtown Development CIP 61,136$ 58,163$ (2,973)$ 323 Midtown Development Reserves Fund 1,003,376$ 1,003,194$ (183)$ 325 Police Facility CIP 19,808,865$ 16,324,286$ (3,484,579)$ Project expense 330 Car Rental CIP Fund 3,259,253$ 5,900,333$ 2,641,080$ Monthly transfers from ops 401 Debt Service/General Obligation Fund 2,315,003$ 1,481,815$ (833,188)$ Debt service payments 402 Star Center Debt Service Fund 440,283$ 0$ (440,283)$ Final debt pmt 403 Glade Parks Debt Service Fund 5,741,681$ 26,536$ (5,715,145)$ Early redemption of debt 404 Midtown Development Debt Service F 1,761,788$ 1,254,588$ (507,200)$ Debt service payments 410 EDC Debt Service Fund 250,176$ 29,671$ (220,505)$ Debt service payments 501 Water & Wastewater Fund 8,371,849$ 9,618,151$ 1,246,301$ Operating expenses 502 Water & Wastewater-CIP Fund 4,843,101$ 4,004,030$ (839,071)$ Capital outlay 503 Water & Wastewater Debt Reserve F 695,299$ 695,299$ -$ 504 Service Center Fund 366,975$ 395,350$ 28,375$ 505 Water Impact Fees Fund 3,046,360$ 3,148,638$ 102,278$ 506 Water & Wastewater-Debt Service Fu 1,305,488$ 616,180$ (689,308)$ Debt service payments 507 Water & Wastewater-Emergency Fun 500,000$ 500,000$ -$ 508 Wastewater Impact Fees Fund 747,099$ 732,833$ (14,266)$ 509 W/WW Rate Stabilization Fund 4,343,817$ 4,422,576$ 78,759$ 510 Drainage Utility Fund 405,376$ 516,244$ 110,869$ 511 Drainage CIP Fund 812,785$ 824,506$ 11,721$ 520 Recreation Classes Fund 983,392$ 995,896$ 12,504$ 521 Arbor Daze Fund 93$ 93$ 0$ 530 Parks @ Texas Star Operations Fund 1,152,877$ 1,155,368$ 2,490$ 532 PATS Debt Reserve Fund 458,278$ -$ (458,278)$ Elimination of reserve 540 TSGC Operations Fund 1,958,847$ 2,036,194$ 77,348$ 541 TSGC Debt Service Fund 1,233,073$ -$ (1,233,073)$ Early redemption of debt 542 TSGC Debt Reserve Fund (0)$ -$ 0$ 543 TSGC CIP Fund 2,458,369$ 377,264$ (2,081,105)$ Project expense 552 PATS CIP Fund 172,375$ 643,432$ 471,057$ 601 Equipment Replacement Fund 22,561,997$ 26,792,696$ 4,230,700$ Transfer in 610 Health Insurance Fund 6,337,277$ 8,359,458$ 2,022,181$ Ins receivable/stop loss credits 615 Risk Management/Worker's Comp Fu 2,828,475$ 3,445,969$ 617,495$ Receivable contractor damages 701 Payroll Clearing Fund 810,502$ 809,420$ (1,082)$ 705 Star Center Escrow Fund 1,430,841$ 1,436,017$ 5,175$

TOTAL 193,044,477$ 189,901,641$ (3,142,835)$

The following is a summary of cash and investments held by each fund at June 30, 2025 and September 30, 2025. The changes include all investment purchases, maturities, revenues, expenses, and transfers that occurred during the fourth quarter of FY2025.

II. PERFORMANCE SUMMARY

Consolidated Invested Percentage FY2024 Cash Balance Invested October 877,082$ 187,969,814$ 100% November 737,755$ 190,433,269$ 100% December 709,748$ 201,046,385$ 100% January (1,985,978)$ 215,054,592$ 101% February 371,307$ 214,698,628$ 100% March (363,275)$ 199,681,870$ 100% April 670,718$ 201,734,179$ 100% May 356,421$ 202,342,748$ 100% June 290,608$ 203,580,348$ 100% July 1,077,864$ 202,992,629$ 99% August 593,590$ 201,104,210$ 100% September 1,301,817$ 201,536,170$ 99% Average 386,471$ 201,847,904$ 100%

Consolidated Invested Percentage FY2025 Cash Balance Invested October 914,557$ 199,331,580$ 100% November 450,921$ 201,187,775$ 100% December 500,192$ 204,734,831$ 100% January 148,660$ 218,882,112$ 100% February (9,182)$ 221,932,140$ 100% March 606,590$ 206,258,987$ 100% April 1,238,448$ 209,255,848$ 99% May 232,831$ 208,748,189$ 100% June 919,409$ 207,357,091$ 100% July (2,642,685)$ 196,803,211$ 101% August (33,298)$ 192,877,470$ 100% September 6,781,702$ 185,067,219$ 96% Average 759,012$ 204,369,704$ 100%

This graph shows how the City's funds continue to be invested, always in pursuit of 100%.

Cash and Investment Balances - Full utilization of funds and minimization of idle cash is necessary to pursue additional interest income for the City. The average percent of invested funds is 100% for FY2025. The monthly data below shows the continued utilization of City funds through investments.

85.00%

90.00%

95.00%

100.00%

105.00%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Pe rc en t I nv es te d

Fiscal Year

Average City's Number Estimated 90-day Invested Days in Interest

Month T-bill Yield Balance Month Earnings October 4.44% 199,331,580$ 31 $751,671 November 4.39% 201,187,775$ 30 $725,930 December 4.23% 204,734,831$ 31 $735,531 January 4.20% 218,882,112$ 31 $780,779 February 4.24% 221,932,140$ 28 $721,857 March 4.24% 206,258,987$ 31 $742,758 April 4.23% 209,255,848$ 30 $727,522 May 4.23% 208,748,189$ 31 $749,949 June 4.24% 207,357,091$ 30 $722,625 July 4.24% 196,803,211$ 31 $708,707 August 4.05% 192,877,470$ 31 $663,446 September 3.86% 185,067,219$ 30 $587,145 Estimated earnings at benchmark yields $8,617,920 Actual FY2025 interest income (un-audited) $9,116,841 Earnings over benchmark $498,921

Annual Average 4.22% 204,369,704$ $8,624,402

Benchmark City's Basis 90-day Wtd Avg Point

Month T-bill yield Portfolio Yld Difference October 4.44% 4.87% 43 November 4.39% 4.73% 34 December 4.23% 4.57% 34 January 4.20% 4.44% 24 February 4.24% 4.39% 15 March 4.24% 4.36% 12 April 4.23% 4.33% 10 May 4.23% 4.29% 6 June 4.24% 4.28% 4 July 4.24% 4.30% 6 August 4.05% 4.28% 23 September 3.86% 4.24% 38

Average 4.22% 4.42% 21

Cash management performance - effectiveness of the cash management program has been measured utilizing actual figures for FY2025 as shown below:

The Federal Reserve cut rates three consecutive times in 2025. September, October, and December bringing the target range to 3.5% from 3.75%. These decisions to cut rates were influenced by ongoing economic conditions, including inflation trends and labor market dynamics. Fed Chairman Jerome Powell stated, “Inflation has eased significantly from its highs in mid-2022, but remains somewhat elevated relative to our 2% longer run goal.” Current expectations are for only one cut to rates in 2026.

Key rate comparisons - an objective of the investment policy is for the City's average rate of return to consistently exceed that of the three-month U.S. Treasury Bill, as stated before. Therefore, returns for both have been presented for comparative purposes below.

III. INVESTMENT INTEREST INCOME SUMMARY*

FY21 Audit 165,992$ FY22 Audit 978,477$ FY23 Audit 6,277,548$ FY24 Audit 10,414,532$ FY25 Unaudited 9,116,841$ FY25 Budgeted 6,647,230$

* amounts exclude OPEB Trust Fund earnings

Investment income exceeded budget expectations for FY2025 by $2,469,611. This was due to a combination of conservative revenue estimates, the Federal Funds Rate being reduced later than projected, and higher investable balances than estimated. Investment income revenues were less than FY2024 primarily due to the reinvestment of proceeds from maturities and called securities at lower market rates as well as the fourth quarter decline in investable balances. The benchmark 90-Day T-Bill averaged 5.15% in FY2024 and 4.22% in FY2025. The City’s weighted average portfolio yield averaged 5.16% in FY2024 and 4.42% in FY2025. Current expectations are for one rate cut during 2026 by the Federal Reserve. The fourth quarter of the fiscal year saw a substantial decrease in funds available for investment throughout the quarter. This is due in large part to the early redemption of debt as well as capital project expenditures/expenses.

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

FY21 Audit FY22 Audit FY23 Audit FY24 Audit FY25 Unaudited

FY25 Budgeted

In te re st

E ar n in gs

Investment Interest Income Summary

Investment Interest Income By Fund For Fiscal Year Ending September 2025

# Fund FY 24 FY 24 Actual FY 25 FY 25 Actual Diff FY25 Budget (Unaudited) Budget (Unaudited) Bud.-Act.

101 General 112,404$ 1,276,816$ 341,793$ 1,325,687$ 983,894$ 201 Hotel/Motel 27,755$ 128,229$ 89,180$ 99,718$ 10,538$ 202 Juvenile Case Fund 6,251$ 11,309$ 8,406$ 11,383$ 2,977$ 210 1/2 Cent Sales Tax-Operations 28,432$ 266,579$ 83,404$ 206,801$ 123,397$ 211 1/2 Cent Sales Tax-Reserve -$ -$ -$ -$ -$ 220 Crime Control & Prevention District 21,181$ 26,877$ 7,588$ 49,858$ 42,270$ 221 Police Seized Asset Funds 9,826$ 10,201$ 5,873$ 7,902$ 2,029$ 225 PD Narcotics Task Force Fund -$ 480$ 12,692$ -$ (12,692)$ 230 Police Drug DEA Awards 8,369$ 12,499$ 9,874$ 10,249$ 375$ 231 Police Drug State Awards 7,360$ 11,934$ 9,040$ 10,975$ 1,935$ 232 Local Drug Seizure Fund -$ -$ -$ 3,652$ 3,652$ 240 Car Rental Tax 352,750$ 1,302,552$ 570,462$ 947,391$ 376,929$ 245 Glade Parks PID -$ -$ -$ -$ -$ 250 Glade Parks TIRZ 137,686$ 277,141$ 196,089$ 118,399$ (77,690)$ 260 Cable PEG Fund 21,602$ 31,570$ 20,343$ 27,848$ 7,505$ 270 Midtown PID 5,143$ 2,413$ 2,304$ 829$ (1,475)$ 301 Developer's Escrow 2,454$ 132,269$ 99,118$ 130,238$ 31,120$ 305 Streets CIP 332,754$ 519,084$ 491,777$ 385,920$ (105,857)$ 310 1/2 Cent Sales Tax - CIP 26,919$ 172,648$ 107,025$ 262,319$ 155,294$ 320 General Capital Projects 371,795$ 1,001,632$ 643,396$ 697,915$ 54,519$ 321 Redevelopment CIP Fund 73,531$ 67,264$ 129,431$ 92,059$ (37,372)$ 322 Midtown Development CIP -$ -$ -$ -$ -$ 323 Midtown Development Reserves -$ -$ -$ -$ -$ 325 Police Facility CIP 858,969$ 1,351,445$ 1,912,124$ 990,459$ (921,665)$ 330 Car Rental CIP 2,759$ 28,457$ 22,898$ 164,231$ 141,333$ 401 GO Debt Service 98,256$ 134,369$ 80,000$ 139,225$ 59,225$ 402 Star Center Debt 14,886$ 21,008$ 11,913$ 74,943$ 63,030$ 403 Glade Parks Debt Service 5,494$ 9,904$ 9,863$ 106,800$ 96,937$ 404 Midtown Development Debt Service 72,019$ 121,051$ 94,528$ 70,760$ (23,768)$ 410 1/2 Cent Sales Tax Debt Service 3,725$ 7,178$ 4,776$ 5,273$ 497$ 501 Water and Wastewater 14,226$ 674,782$ 247,204$ 559,287$ 312,083$ 502 Water and Wastewater CIP 5,826$ 353,568$ 155,041$ 226,338$ 71,297$ 503 Water and Wastewater Reserve -$ -$ -$ -$ -$ 504 Service Center Fund -$ -$ -$ -$ -$ 505 Water Impact Fees 4,261$ 145,132$ 110,740$ 133,415$ 22,675$ 508 Wastewater Impact Fees 1,429$ 37,869$ 29,467$ 31,391$ 1,924$ 509 W/WW Rate Stabilization 21,000$ 199,987$ 75,090$ 195,854$ 120,764$ 510 Drainage 7,207$ 13,253$ 9,858$ 10,290$ 432$ 511 Drainage CIP 2,030$ 49,372$ 32,411$ 39,667$ 7,256$ 520 Recreation Classes 6,000$ 33,403$ 23,970$ 36,226$ 12,256$ 521 Arbor Daze -$ 1$ -$ 1$ 1$ 530 Parks At Texas Star 1,044$ 38,069$ 27,759$ 49,323$ 21,564$ 531 PATS Debt Service -$ -$ -$ -$ -$ 532 PATS Reserve 2,000$ 21,836$ -$ 18,184$ 18,184$ 540 Texas Star Golf Course 30,000$ 78,289$ 53,003$ 73,884$ 20,881$ 541 TSGC Debt Service 28$ 3,021$ 500$ 39,736$ 39,236$ 542 TSGC Reserve 10,000$ 41,042$ -$ 3,981$ 3,981$ 543 TSGC CIP Fund 315$ 6,143$ 36,947$ 80,347$ 43,400$ 550 Parks At Texas Star -$ -$ -$ -$ -$

552 TSSC CIP 243$ 7,554$ 21,524$ 8,430$ (13,094)$

601 Equipment Replacement 489,775$ 1,163,705$ 658,456$ 1,179,131$ 520,675$ 610 Health Insurance 68,008$ 356,099$ 123,824$ 363,562$ 239,738$ 615 Risk Mgmt/Worker's Comp 70,419$ 138,281$ 77,539$ 126,961$ 49,422$

Total 3,336,131$ 10,286,315$ 6,647,230$ 9,116,841$ 2,469,611$

Note that investment earnings are being produced on all investable City funds and great efforts go into meeting budgeted levels while ensuring compliance with the Public Funds Investment Act and City policy. Several funds were budgeted conservatively or not at all due to the volatility of revenues and expenditures/expenses. However, these funds are used for investment purposes when available.

Collateral Analysis for

Bank Deposits as of 09/30/25

Pledged Pledging Safekeeping Securities Security Market Value Bank Difference Institution Location Description Market Value (w/FDIC Ins.) Deposits Over/(Under)

Frost Bank 7,352,208$ 7,602,208$ 7,063,764$ 538,444$ Bank of New Payroll 34,109$ York Mellon various bonds $7,352,208 Operating 7,029,655$

Insurance -$

Produced By:

Director of Finance

Reviewed by:

Assistant Director of Finance

This review is practiced on a regular basis assuring coverage. Another regular practice is reviewing each individual instrument pledged. This assures compliance with the investment policy and consideration of the underlying security. This separate but thorough practice has protected the City's portfolio against derivative products.

The first and most important objective of investing public funds is safety. One way to ensure the safety of the City's assets is to have them fully secured with "collateral." Acceptable collateral is defined in the City's investment policy as Federal Deposit Insurance Corporation (FDIC) Insurance, Federal Savings and Loan Insurance Corporation (FSLIC) Insurance and/or eligible securities as defined in Government Code Chapter 2257 Collateral for Public Funds Section 2257.002. Bank balances are monitored daily to assure full coverage. The amount of collateral required by the depository bank varies with the expected level of deposits (typically correlates with large receipts such as property taxes, franchise taxes and investment maturities).

IV. COLLATERAL REVIEW

V. BROKER SELECTION PROCESS

1.

2.

3.

4.

5.

VI. SUMMARY

Ross Fairclo Director of Finance Assistant Director of Finance

All brokers are notified after the selection is complete.

The primary objectives of compliance, safety, liquidity and yield have been achieved for the reporting period as evidenced by this report. These objectives will continue to be pursued for the City of Euless as provided by the investment policy. This year proved to be another successful year for the investment program. The City of Euless, like all other local governments, is faced with the challenge of meeting benchmark levels triggered by the Fed's actions. The City's investment program will continue to seek new techniques, instruments, etc. to enhance the return on the City's funds, as well as the return of all City funds.

The investment committee will meet on January 27, 2026 to discuss the Annual Investment Report. Once the annual report is approved by the committee, it will be forwarded to the City Council.

Janina Jewell

This section of the report is to provide a brief explanation of the process undertaken to select brokers with which the City invests. The broker/dealer list is reviewed annually, and additions/deletions are made as necessary. The City currently maintains a list of six broker/dealers. The process is outlined below:

Brokers express an interest in doing business with the City.

A questionnaire is sent to the broker which requests the necessary information for management to review including references, capital adequacy ratios, etc.

The Finance Department reviews all received questionnaires, summarizes the information and recommends the desired list of brokers with explanatory notes in conjunction with the first quarter investment report.

The list is presented to the investment committee annually for their approval.

CERTIFICATION

This report has been examined and approved by the Investment Officers of the City of Euless.

Information presented in this report to the Investment Committee and City Council exemplifies an accurate depiction of the City's investment activity for the fiscal year ending September 30, 2025. This report meets all requirements specified by the Public Funds Investment Act and the Investment Policy of the City of Euless.

Investment Officers

Janina Jewell Director of Finance

Ross Fairclo Assistant Director of Finance

Minutes – 01/13/2026 4:00 p.m. Investment Committee Meeting

Members: Linda Martin, Mayor Chris Barker, City Manager Lawrence Bryant, Assistant City Manager Janina Jewell, Director of Finance

Committee members present included Chris Barker, Lawrence Bryant, and Janina Jewell. Non-committee present included Steven Viera, Assistant City Manager and Jeremiah Vasquez-Zavala, Budget/Treasury

Manager.

Jewell presented the Third Quarter Investment Report for Fiscal Year 2025. She stated it was in compliance with Chapter 2256 of the Public Funds Investment Act. Jewell referred the committee to page 2 that showed the City’s investment strategy for the various funds of the City as of June 30, 2025. She noted that operating funds were invested with a weighted average maturity (WAM) ranging from 6 to 9 months, capital improvement projects (CIP) and special purpose funds were invested in accordance with drawdown schedules of the projects and would not exceed the estimated project completion dates, debt service funds were invested to assure adequate liquidity to cover the debt service obligations on the required payment date, and finally that emergency, contingency, operating and debt service reserve funds could not exceed five year investment timelines. She noted that there were no changes made that quarter to the strategy.

Jewell stated that the presented investment portfolio followed those strategies for the third quarter of Fiscal

Year 2025.

Jewell referred the committee to page 3 where she noted significant increases and decreases in fund investments since March 31, 2025. She specifically noted most of the change occurred due to the outflow of capital projects expenses. Overall there was a decrease of almost $14 million. The total market value of cash and investments was stated to be $193,044,477.

On page 4 Jewell pointed out the portfolio shows its diversity in investment types on this page. She noted that the weighted average yield on the portfolio was 4.28% and was down 8 basis points from the last quarter.

On page 5 she noted the diversity of the portfolio by maturity and specifically cited that 80% of the portfolio maturity had a maturity of less than one year. The WAM on the portfolio was 168.82 days which is well within the 365-day guideline in the investment policy. Jewell noted it was previously 175.89 days. Page 6 noted the portfolio diversity by institution and that no one institution had more than a third of the City’s portfolio invested with them. She noted that as investments matured we have chosen to keep those funds in overnight pools. Page 7 was noted to show the market value of the portfolio as of June 30, 2025, of

$207,497,161 which, if investments had been liquidated, the City would have to show a gain of $161,148.

On page 8 Jewell noted the comparison of average 90 day T-Bills for the quarter compared to the portfolio average maturity. The portfolio averaged about 6.7 basis points above the 90 Day T-Bill benchmark. This page also showed that cash was on average 100% invested for the quarter. Jewell noted on page 9 that the

City was fully collateralized as of June 30, 2025.

Jewell then noted that the report was certified by City Investment Officers. Mr. Barker made a motion to approve the quarterly investment report. Mr. Bryant seconded the motion and the vote was unanimous in favor.

Minutes for the May 13, 2025, Investment Committee Meeting were presented. Mr. Barker motioned to approve. Mrs. Jewell seconded the motion and the committee approved unanimously.

Mrs. Jewell commented on the economy including that the Fed Funds rates have changed now with the range from 3.5% to 3.75%. She noted the labor market has stabilized. Feds are buying mortgage bonds and consumer confidence is strong. Sales tax revenue is up this year 7% and car rental revenues are flat. Jewell updated us that the CPI has risen but sits at 2.7%. Jewell noted the events in Venezuela have had negligible effect on the markets.

Mrs. Jewell informed us of reviewing the investment policy at the next council meeting. She suggested no recommendations to change the investment policy. Mr. Barker approved no recommended changes to the investment policy. Mr. Bryant seconded the motion. Jewell suggested no recommendation of changes to list of financial advisors. She commented our current list of advisors are doing a wonderful job. Mr. Bryant made a motion to approve no recommendation of change to list of advisors. Mr. Barker seconded it.

The meeting adjournment at 4:18 p.m.

APPENDICES

APPENDIX A

Change in Portfolio Values by Asset and Investment Fund

For the Quarter Ending September 30, 2025

Inv. CUSIP Maturity/ Par Market Value Market Value Change in Book Value Book Value Change in Type Number Call Date Value 09/30/2025 06/30/2025 Market Value 09/30/2025 06/30/2025 Book Value

OPERATING FUNDS:

CD 61768EF57 11/17/2025 240,000 240,350 241,685 (1,335) 240,000 240,000 -

CD 130162BG4 11/21/2025 240,000 240,372 242,019 (1,647) 240,000 240,000 -

CD 05580A4M3 05/18/2026 240,000 242,028 242,940 (912) 240,000 240,000 -

CD 61690DHA9 11/16/2026 240,000 243,382 243,848 (467) 240,000 240,000 -

FHLB 3130B0TC3 10/09/2026 1,000,000 1,000,530 1,003,569 (3,039) 1,000,000 1,000,000 - FHLB 3130B0RE1 04/27/2027 1,000,000 1,000,030 1,003,516 (3,486) 1,000,000 1,000,000 - FHLB 3130B0Q77 10/08/2027 1,000,000 1,000,350 1,003,643 (3,293) 1,000,000 1,000,000 -

CD 82869AFY6 11/14/2025 240,000 240,269 241,371 (1,102) 240,000 240,000 -

CD 06051XDQ2 05/18/2026 240,000 241,817 242,409 (593) 240,000 240,000 -

FFCB 3133ERGA3 06/04/2026 1,000,000 1,007,680 1,010,355 (2,675) 1,000,000 1,000,000 -

CD 38150VUZ0 06/11/2026 240,000 242,083 242,834 (751) 240,000 240,000 -

CD 465076UP0 06/12/2026 240,000 242,088 242,837 (749) 240,000 240,000 -

CD 32026U5X0 12/14/2026 240,000 243,485 243,842 (358) 240,000 240,000 -

CD 23204HPM4 06/11/2027 240,000 244,459 244,339 120 240,000 240,000 -

CD 34520LBD4 06/14/2027 240,000 244,478 244,354 124 240,000 240,000 -

FFCB 3133ERMK4 01/26/2026 1,000,000 1,001,950 1,003,706 (1,756) 1,000,000 1,000,000 -

FFCB 3133ERWM9 01/05/2026 1,000,000 999,160 996,960 2,200 1,000,000 1,000,000 -

FFCB 3133ERWB3 04/03/2026 1,000,000 998,600 995,235 3,365 1,000,000 1,000,000 -

FHLB 3130B34S9 10/06/2027 1,000,000 1,000,190 997,364 2,826 999,250 999,250 -

FHLB 3130B3BV4 10/15/2027 1,000,000 999,690 997,568 2,122 1,000,000 1,000,000 -

FHLB 3130B3JC8 10/22/2027 1,000,000 1,001,810 999,955 1,855 1,000,000 1,000,000 - FHLB 3130B3N82 11/05/2026 1,000,000 999,650 1,000,342 (692) 1,000,000 1,000,000 - FHLB 3130B3SN4 11/12/2026 1,000,000 999,510 1,001,155 (1,645) 1,000,000 1,000,000 - FHLB 3130B3MH3 11/05/2027 1,000,000 1,000,660 1,000,799 (139) 1,000,000 1,000,000 -

FFCB 3133ERA92 11/12/2027 1,000,000 1,008,730 1,004,515 4,215 997,000 997,000 -

FHLB 3130B43H2 12/11/2025 1,000,000 1,000,050 999,553 497 997,750 997,750 -

FFCB 3133ERP96 09/24/2026 1,000,000 1,005,370 1,003,389 1,981 998,800 998,800 -

FFCB 3133ERP96-1 09/24/2026 1,000,000 1,005,370 1,003,389 1,981 1,000,000 1,000,000 -

FFCB 3133ERK42 12/26/2026 1,000,000 1,004,350 1,002,136 2,214 1,000,000 1,000,000 - FAMCA 31424WSD5 12/17/2027 1,000,000 1,007,290 1,004,789 2,501 1,000,000 1,000,000 -

FHLB 3130B4G62 01/06/2026 1,000,000 1,000,120 999,736 384 998,200 998,200 -

FHLB 3130B4P47 01/21/2026 1,000,000 1,000,250 999,727 523 997,600 997,600 -

FFCB 3133ERS93 01/13/2027 1,000,000 1,006,540 1,004,722 1,818 997,000 997,000 -

FHLB 3130B4MH1 01/15/2027 1,000,000 1,000,910 1,001,599 (689) 1,000,000 1,000,000 - FHLB 3130B4RL7 01/29/2027 1,000,000 1,000,510 1,000,891 (381) 1,000,000 1,000,000 -

FFCB 3133ER2H3 02/03/2026 1,000,000 1,000,610 999,885 725 1,000,000 1,000,000 -

FFCB 3133ER2H3-2 02/03/2026 1,000,000 1,000,610 999,885 725 997,420 997,420 -

FHLB 3130B55P9 02/18/2026 1,000,000 1,000,930 1,000,959 (29) 998,500 998,500 -

FAMCA 31424WUZ3 02/10/2027 1,000,000 1,006,520 1,004,950 1,570 1,000,000 1,000,000 - FHLB 3130B53F3 02/19/2027 1,000,000 1,001,250 1,002,320 (1,070) 1,000,000 1,000,000 -

FFCB 3133ER5L1 11/28/2025 1,000,000 999,940 999,730 210 999,250 999,250 -

FHLB 3130B5F60 03/03/2026 1,000,000 1,000,780 999,987 793 998,740 998,740 -

FFCB 3133ER7H8 03/18/2026 1,000,000 1,000,400 998,832 1,568 1,000,000 1,000,000 -

CD 149159UT0 10/09/2025 240,000 240,000 240,000 - 240,000 240,000 -

CD 49306SS72 01/05/2026 240,000 240,000 240,000 - 240,000 240,000 -

CD 27004PGG2 04/09/2026 240,000 240,065 240,000 65 240,000 240,000 -

CD 669331CU2 01/14/2026 240,000 240,000 240,000 - 240,000 240,000 -

FFCB 3133ETEP8 04/24/2026 1,000,000 999,980 1,000,000 (20) 996,874 996,572 302

CD 744039CU0 05/11/2026 240,000 240,353 240,000 353 240,000 240,000 -

CD 33767GJU3 10/09/2026 240,000 240,590 240,000 590 240,000 240,000 -

FFCB 3133ETCU9 10/14/2026 1,000,000 1,001,810 1,000,000 1,810 1,000,000 1,000,000 -

CD 92512KAC7 04/05/2027 240,000 240,974 240,000 974 240,000 240,000 -

FFCB 3133ETCP0 04/14/2027 1,000,000 1,001,140 1,000,000 1,140 996,040 995,860 180

CD 29367SMD3 05/08/2026 240,000 240,422 240,000 422 240,000 240,000 -

CD 857894Z69 08/10/2026 240,000 240,586 240,000 586 240,000 240,000 - 19

Change in Portfolio Values by Asset and Investment Fund

For the Quarter Ending September 30, 2025

Inv. CUSIP Maturity/ Par Market Value Market Value Change in Book Value Book Value Change in Type Number Call Date Value 09/30/2025 06/30/2025 Market Value 09/30/2025 06/30/2025 Book Value

FFCB 3133ETHY6 11/23/2026 1,000,000 1,003,030 1,000,000 3,030 1,000,000 1,000,000 -

CD 02589AHF2 05/07/2027 240,000 241,090 240,000 1,090 240,000 240,000 -

FHLB 3130B6B70 05/07/2027 1,000,000 998,860 1,000,000 (1,140) 1,000,000 1,000,000 -

FHLB 3130B6JZ0 11/22/2027 1,000,000 1,000,490 1,000,000 490 1,000,000 1,000,000 -

FHLB 3130B6Q25 06/10/2026 1,000,000 1,002,920 1,000,000 2,920 1,000,000 1,000,000 -

FFCB 3133ETKW6-220 12/11/2026 500,000 502,325 500,000 2,325 500,000 500,000 -

FFCB 3133ETKW6-601 12/11/2026 250,000 251,163 250,000 1,163 250,000 250,000 -

FFCB 3133ETKX4-615 06/11/2026 250,000 250,360 249,813 548 249,438 249,438 -

FFCB 3133ETKX4-101 06/11/2026 250,000 250,360 249,813 548 249,438 249,438 -

Purchases None

Maturities

CD 70212YBM3 09/17/2025 240,000 - 240,738 (240,738) - 240,000 (240,000)

CD 87164DXA3 08/15/2025 240,000 - 240,749 (240,749) - 240,000 (240,000)

FHLB 3130B1CV7 08/13/2026 1,000,000 - 1,002,795 (1,002,795) - 1,000,000 (1,000,000) FAMCA 31424WJV5 08/01/2025 1,000,000 - 1,002,541 (1,002,541) - 1,000,000 (1,000,000)

FFCB 3133ERPC9 08/12/2026 1,000,000 - 999,937 (999,937) - 1,000,000 (1,000,000)

FHLB 3130B2CK9 02/12/2027 1,000,000 - 999,996 (999,996) - 1,000,000 (1,000,000)

FHLB 3130B35W9 04/08/2026 1,000,000 - 999,556 (999,556) - 1,000,000 (1,000,000)

FAMCA 31424WSA1 12/16/2025 1,000,000 - 999,331 (999,331) - 1,000,000 (1,000,000)

Total Operating:

Par total does not include maturities 45,290,000$ 45,391,669$ 51,852,908$ (6,461,239)$ 45,261,299$ 51,740,817$ (6,479,518)$

CIP FUNDS

FFCB 3133ERHH7 12/14/2026 1,000,000 1,011,960 1,012,313 (353) 1,000,000 1,000,000 -

FFCB 3133ERPX3 11/19/2025 1,000,000 1,000,010 999,840 170 1,000,000 1,000,000 -

CD 78658RQK0 02/06/2026 239,000 239,263 239,091 172 239,000 239,000 -

CD 938828GA2 02/13/2026 239,000 239,096 239,112 (16) 239,000 239,000 -

FFCB 3133ER5M9 06/03/2026 1,000,000 1,001,900 1,001,220 680 1,000,000 1,000,000 - FAMCA 31424WWB4 11/05/2026 1,000,000 1,003,290 1,000,764 2,526 1,000,000 1,000,000 - FHLB 3130B5K64 03/10/2027 1,000,000 1,005,400 1,001,250 4,150 1,000,000 1,000,000 - FHLB 3130B5KQ0 03/25/2027 1,000,000 1,000,120 1,000,280 (160) 1,000,000 1,000,000 -

FAMCA 31424WWM0 09/13/2027 1,000,000 1,004,900 1,000,212 4,688 998,500 998,500 -

FAMCA 31424WZK1 11/06/2026 1,000,000 1,001,700 1,000,000 1,700 1,000,000 1,000,000 -

FFCB 3133ETKW6-310 12/11/2026 250,000 251,163 250,000 1,163 250,000 250,000 -

FFCB 3133ETKX4-330 06/11/2026 500,000 500,720 499,625 1,095 498,875 498,875 -

Purchases

None - - - - - -

Maturities

CD 20415WBG0 09/08/2025 240,000 - 240,030 (240,030) - 240,000 (240,000)

Total CIP:

Par total does not include maturities 9,228,000$ 9,259,521$ 9,483,737$ (224,216)$ 9,225,375$ 9,465,375$ (240,000)$

Change in Portfolio Values by Asset and Investment Fund

For the Quarter Ending September 30, 2025

Inv. CUSIP Maturity/ Par Market Value Market Value Change in Book Value Book Value Change in Type Number Call Date Value 09/30/2025 06/30/2025 Market Value 09/30/2025 06/30/2025 Book Value

RESERVE FUNDS:

FHLB 3130B0YH6 04/19/2029 1,000,000 1,018,700 1,017,965 735 1,000,000 1,000,000 -

FHLB 3130B2PZ2 09/12/2028 500,000 499,225 496,567 2,658 500,000 500,000 -

FHLB 3130B3M67 11/13/2029 1,000,000 1,005,410 1,000,506 4,904 1,000,000 1,000,000 -

FFCB 3133ERP70 12/27/2027 1,000,000 1,011,720 1,008,090 3,630 1,000,000 1,000,000 -

FAMCA 31424WTB8 01/07/2028 1,000,000 1,010,750 1,008,776 1,974 1,000,000 1,000,000 -

CD 43711MAH4 05/19/2026 240,000 240,648 240,274 374 240,000 240,000 -

CD 10421ABK2 08/19/2026 240,000 240,900 240,612 288 240,000 240,000 -

FNMA 3136GACT4 03/06/2028 1,000,000 1,001,530 1,000,255 1,275 1,000,000 1,000,000 -

CD 68621KDH1 01/07/2028 240,000 240,929 240,000 929 240,000 240,000 -

Purchases None -

Maturities

FHLB 3130B2UW3 06/10/2027 500,000 - 996,542 (996,542) - 1,000,000 (1,000,000)

CD 319735CQ7 07/18/2025 240,000 - 240,506 (240,506) - 240,000 (240,000)

CD 9475475V3 08/13/2025 240,000 - 240,602 (240,602) - 240,000 (240,000)

Total Reserve:

Par total does not include maturities 6,220,000$ 6,269,812$ 7,730,695$ (1,460,884)$ 6,220,000$ 7,700,000$ (1,480,000)$

OVERNIGHT INVESTMENTS:

Beginning Bal Ending Bal

Texpool Balance 45,184,999 41,548,201 41,548,201 45,184,999 (3,636,798) 41,548,201 45,184,999 (3,636,798)

Purchases 12,648,439 Maturities 16,285,238

Texstar Balance 45,672,991 41,446,655 41,446,655 45,672,991 (4,226,336) 41,446,655 45,672,991 (4,226,336) Purchases 11,238,122 Maturities 15,464,457

TexasCLASSBalance 47,571,831 41,345,093 41,345,093 47,571,831 (6,226,738) 41,345,093 47,571,831 (6,226,738) Purchases 3,936,761 Maturities 10,163,499

Total Overnight: 124,339,949$ 124,339,948$ 138,429,821$ (14,089,872)$ 124,339,948$ 138,429,821$ (14,089,872)$

Total Portfolio Par total does not include maturities 185,077,949$ 185,260,951$ 207,497,161$ (22,236,211)$ 185,046,623$ 207,336,013$ (22,289,390)$

APPENDIX B

Schedule of Purchases

FY2025 4th Quarter

Cost Accrued Inv. CUSIP Purchase Maturity Call Term Price Par Book Value Coupon Interest Seller Total Cost

Type Number Date Date Date (in days) Per $100 Value (Prin. Only) YTM Rate Purchased Inst. Discount Premium Fund of Investment

Texpool Jul 2,641,250 2,641,250 - - Various 2,641,250

Texpool Aug 2,521,180 2,521,180 - - Various 2,521,180

Texpool Sep 7,009,385 7,009,385 - - Various 7,009,385

Texstar Jul 2,000,000 2,000,000 - - Various 2,000,000

Texstar Aug 4,707,469 4,707,469 - - Various 4,707,469

Texstar Sep 4,061,486 4,061,486 - - Various 4,061,486

TexasCLASS Jul 0 0 - - Various 0

TexasCLASS Aug 2,942,058 2,942,058 - - Various 2,942,058

TexasCLASS Sep 521,441 521,441 - - Various 521,441

Totals 26,404,269$ 26,404,269$ -$ -$ -$ 26,404,269$

Texpool Dividends Reinvested Jul 166,967 166,967 - Texpool - - Various 166,967 Aug 158,581 158,581 - Texpool - - Various 158,581 Sep 151,077 151,077 - Texpool - - Various 151,077

Texstar Dividends Reinvested Jul 166,455 166,455 - Texstar - - Various 166,455 Aug 157,746 157,746 - Texstar - - Various 157,746 Sep 144,966 144,966 - Texstar - - Various 144,966

TexasCLASS Dividends Reinvested Jul 166,796 166,796 - TexasCLASS - - Various 166,796 Aug 156,682 156,682 - TexasCLASS - - Various 156,682 Sep 149,785 149,785 - TexasCLASS - - Various 149,785

Totals including Dividends 27,823,322$ 27,823,322$ -$ -$ -$ 27,823,322$

APPENDIX C

Schedule of Maturities

FY2025 4th Quarter

Term to Cost Accrued Inv. CUSIP Purchase Maturity Call Mat'y Price Par Book Value Yield To Coupon Interest Seller Total Cost

Type Number Date Date Date (in days) Per $100 Value (Prin. Only) Maturity Rate Purchased Inst. Discount Premium Fund of Investment

Texpool Jul 4,615,348 4,615,348 - - - Various 4,615,348

Texpool Aug 2,679,930 2,679,930 - - - Various 2,679,930

Texpool Sep 8,989,960 8,989,960 - - - Various 8,989,960

Texstar Jul 5,000,000 5,000,000 - - - Various 5,000,000

Texstar Aug 4,507,469 4,507,469 - - - Various 4,507,469

Texstar Sep 5,956,988 5,956,988 - - - Various 5,956,988

TexasCLASS Jul 4,600,000 4,600,000 - - - Various 4,600,000

TexasCLASS Aug 3,142,058 3,142,058 - - - Various 3,142,058

TexasCLASS Sep 2,421,441 2,421,441 - - - Various 2,421,441

CD 319735CQ7 02/18/25 07/18/25 N/C 150 100.0000 240,000 240,000 4.25% 4.250% 0 FNS - - 509 240,000

FHLB 3130B35W9 10/09/24 04/08/26 07/08/25 539 100.0000 1,000,000 1,000,000 4.30% 4.300% 0 Duncan - - 101 1,000,000

FAMCA 31424WJV5 06/03/24 08/01/25 N/C 418 100.0000 1,000,000 1,000,000 5.19% 5.180% 0 Hilltop - - 240 1,000,000

CD 9475475V3 02/10/25 08/13/25 N/C 184 100.0000 240,000 240,000 4.25% 4.250% 0 FNS - - 509 240,000

CD 87164DXA3 05/15/24 08/15/25 N/C 457 100.0000 240,000 240,000 5.10% 5.100% 0 FNS - - 240 240,000

FFCB 3133ERPC9 08/12/24 08/12/26 08/12/25 720 100.0000 1,000,000 1,000,000 4.52% 4.520% 0 FHN - - 501 1,000,000

FHLB 3130B2CK9 08/12/24 02/12/27 08/12/25 900 100.0000 1,000,000 1,000,000 4.42% 4.420% 0 Duncan - - 601 1,000,000

FHLB 3130B1CV7 05/13/24 08/13/26 08/13/25 810 100.0000 1,000,000 1,000,000 5.13% 5.125% 0 Samco - - 601 1,000,000

CD 20415WBG0 02/07/25 09/08/25 N/C 213 100.0000 240,000 240,000 4.20% 4.200% 0 FNS - - 320 240,000

CD 70212YBM3 03/17/23 09/17/25 N/C 915 100.0000 240,000 240,000 4.90% 4.900% 0 FNS - - 101 240,000

FAMCA 31424WSA1 12/16/24 12/16/25 09/16/25 360 100.0000 1,000,000 1,000,000 4.35% 4.350% 0 Samco - - 240 1,000,000

FHLB 3130B2UW3 09/24/24 06/10/27 09/10/25 976 100.0000 1,000,000 1,000,000 4.00% 4.000% 0 Duncan - - 103 1,000,000

TOTAL 50,113,194$ 50,113,194$ 4.55% -$ -$ -$ 50,113,194$

APPENDIX D

Investment Portfolio General Information

Investment Types and Institutions

Investment Types Texstar Local Gov't Pool FNMA Fed. Nat'l Mort. Assoc. FHLMC Fed. Home Loan Mort. Corp Texpool Local Gov't Pool FFCB Fed. Farm Credit Bank FAMCA Farmer Mac TexasCLASS Local Gov't Pool FHLB Fed. Home Loan Bank CD Certificates of Deposit US Bank US Bank B of T Bank of Texas TBILL Treasury Bill

Institution Texstar TexSTAR FHN First Horizon Hilltop Hilltop Securities Texpool TexPool Samco Samco Capital Duncan SouthState Duncan Williams TexasCLASS TexasCLASS B of T Bank of Texas FNS Financial Northeastern Securities US Bank US Bank Vining/Stifel Vining Sparks KNA Stifel

DATE: June 26, 1990 PREPARED BY:Finance Department REV: January 28, 2025 REVIEWED BY:City Manager RE: Investment Policy APPROVED BY:City Council

I. SCOPE

This investment policy applies to the investment activities of the Government of the City of Euless, Texas. This policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy. The policy and strategy shall be reviewed annually by the Investment Committee and any modifications must be approved by the Investment Committee and forwarded to City Council for final approval. The City Council must adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and investment strategies. Any changes made to either the policy or strategies will be recorded in this written instrument. This Investment Policy, as approved, is in compliance with Chapter 2256 of the Texas Government Code, also known as “The Public Funds Investment Act.”

A. FUNDS INCLUDED All financial assets of all funds, including the General Fund and any other accounts of the City not specifically excluded in these policy guidelines are included.

These funds, as well as funds that may be created from time-to-time, shall be administered in accordance with the provisions of these policies. All funds will be pooled for investment purposes. The strategy developed for this pooled fund group will address the varying needs, goals, and objectives of each fund.

B. FUNDS EXCLUDED None.

II. OBJECTIVES AND STRATEGY

A. COMPLIANCE The City must adopt rules, designate staff to manage local funds, and submit related reports as outlined by Chapter 2256 of the Texas Government Code, also known as the Public Funds Investment Act (“PFIA”). All investments made on behalf of the City must comply with the Public Funds Investment Act and all federal, state, and local statutes, rules, or regulations. In conjunction with the annual comprehensive financial audit and report, the City will perform, or have performed, a compliance audit of management controls on investments and adherence to the City’s approved investment policy.

B. SAFETY OF PRINCIPAL The primary objective of the City’s investment activity is the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

1. Credit Risk – The City of Euless will minimize credit risk, which is the risk of loss due to the failure of the security issuer or backer, by:

a. Limiting investments to the types of securities listed in Section V of this investment policy.

CITY OF EULESS

FINANCE POLICY

b. Pre-qualifying the financial institutions, broker/dealers and advisors with whom the City of Euless will do business.

c. Diversifying the investment portfolio so that the impact of potential losses from any type of security or from any one issuer will be minimized.

2. Interest Rate Risk – The City of Euless will minimize interest rate risk, which is the risk that the market value of securities in the portfolio will fall due to changes in market interest rates by:

a. Structuring the portfolio so that securities mature to meet cash requirements for ongoing operations, avoiding the need to sell securities prior to maturity.

b. Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools.

C. LIQUIDITY The City’s investment portfolio will remain sufficiently liquid to enable the City to meet operating requirements that might be reasonably anticipated. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets.