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LL �t�'.`'f FINANCE COMMITTEE <br />Loll sville COMMUNICATION <br />COLORADO • SINCE 1878 <br />SUBJECT: CASH & INVESTMENTS REPORT FOR THE YEAR ENDED <br />DECEMBER 31, 2022 <br />DATE: APRIL 20, 2023 <br />PRESENTED BY: RYDER BAILEY, CPA, FINANCE DIRECTOR <br />SUMMARY: <br />Attached is the December 31, 2022 Quarterly Report from Chandler Asset Management, <br />the City's Investment Advisor. <br />As of December 31, total reported cash and investments equaled $60.8 million, an <br />increase of $400 thousand since September 30 and an increase of $9.7 million since the <br />beginning of the year. The average rate of return on total reported cash and investments <br />for the year 2022 was approximately-0.73%. <br />Julie Hughes, Senior Portfolio Strategist, Chandler Asset Management, will provide a Q1 <br />Investment Update and Economic Update at the next Finance Committee Meeting <br />scheduled on May 18t", 2023. <br />BACKGROUND: <br />Per the City's Financial Investment Policy — Section 6.1 —The primary objectives of <br />investment activities shall be safety, liquidity, and iy eld (in that order): <br />• Safety. Safety of principal is the foremost objective of the investment program. <br />Investments shall be undertaken in a manner that seeks to ensure the preservation of <br />capital in the overall portfolio through the mitigation of credit risk and interest rate risk. <br />• Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating <br />requirements that may be reasonably anticipated. <br />• Yield. The investment portfolio shall be designed with the objective of attaining a market <br />rate of return throughout budgetary and economic cycles, taking into account the <br />investment risk constraints and liquidity needs. Return on investment is of secondary <br />importance compared to the safety and liquidity objectives described above. <br />FINANCE COMMITTEE COMMUNICATION <br />20/71 <br />