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CASH FLOW REVIEW/RIGHT-SIZING PORTFOLIO <br />Meeder's investment approach looks at the entire financial picture of the entity. We determine how to invest the <br />portfolio together with how much should be invested, how long, and whether the entity's bank/LGIP rates are <br />competitive. Meeder right -sizes a client's core investment portfolio to: <br />Prudently structure a consistent maturity schedule <br />Monitor seasonal cash trends and investment balances, along with daily cash inflows and outflows <br />Efficiently manage cash and attain proper positions for ongoing, long-term benefit <br />„ Minimize idle and low -yielding funds due to uncertainty around revenues and expenses <br />Our investment management approach is to conduct a cash flow analysis to determine how much should be invested <br />vs. remaining liquid. We call this process right sizing your core portfolio. This strategy focuses on maximizing income <br />over the long term. <br />It is common to see excess cash sitting idle due to the uncertainty surrounding revenues and expenses. Our process <br />minimizes idle and low yielding funds. With proper cash flow analysis and planning, along with prudently structuring <br />a consistent maturity schedule, we are able to help our clients efficiently manage cash and attain proper positions for <br />ongoing, long-term benefit. <br />Our cash flow modeling and forecasting tool will break down historical low points on cash and help to determine a <br />baseline cash policy for the City. Below is an example of the annual cash balances from data provided in the City's <br />annual comprehensive financial reports. <br />CASH FLOW ANALYSIS <br />HISTORICAL DATA <br />600,000,000 <br />500,000,000 <br />400,000,000 <br />300,000,000 <br />200,000,000 <br />100,000,000 <br />2019 2020 2021 <br />■ Business -Type Activities <br />2022 <br />■ Governmental Activities <br />2023 <br />1-1 t <br />MEEDER <br />FU..,D FUNDS <br />City Council 22 — 16 5/7/2024 <br />3 <br />