Finance Committee Agenda and Packet 2023 10 19

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LLCity�f Louisville COLORADO -SINCE 1.878 FINANCE COMMITTEE COMMUNICATION SUBJECT: Q3 CASH & INVESTMENTS UPDATE DATE: OCTOBER 19, 2023 PRESENTED BY: RYDER BAILEY, CPA, FINANCE DIRECTOR SUMMARY: ITEM 3 Attached is the September 30, 2023 Quarterly Report from Chandler Asset Management, the City's Investment Advisor. As of December 31, total reported cash and investments equaled $62.4 million, an increase of $700 thousand since June 30 and an increase of $1.6 million since the beginning of the year. The average rate of return on total reported cash and investments for the most recent quarter is 1.16%, while 2023 year to date return of 2.74%. BACKGROUND: Chandler Asset Management Contract On October 3, 2022 Louisville City Council authorized a two-year agreement (with three one-year options to renew) with Chandler Asset Management for Investment Management Services. Per the City's Financial Investment Policy — Section 6.1 —The primary objectives of investment activities shall be safety, liquidity, and iy eld (in that order): • Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio through the mitigation of credit risk and interest rate risk. • Liquidity. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. • Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. FINANCE COMMITTEE COMMUNICATION 20/47