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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2013
<br />NOTE 2 - CASH AND INVESTMENTS (Continued)
<br />Information about the sensitivity of the fair values of the City's Investments to market interest rate
<br />fluctuations is provided by the following table that shows the distribution of the City's investment by
<br />maturity:
<br />Investment Type
<br />Federal agency securities
<br />Money Market
<br />U.S. Treasury Notes
<br />Local Agency Investment Fund (LAIF)
<br />Commercial paper
<br />Corporate bonds
<br />Held by Bond Trustee:
<br />U.S. Treasury Money Market Funds
<br />Total
<br />6,302,690 6,302,690
<br />$85,948,604 $61,222,944 $10,994,939 $13,730,721
<br />Investments Authorized by the City's Investment Policy and California Government Code
<br />The table below identifies the investment types that are authorized for the City by the City's Investment
<br />Policy. The table also identifies certain provisions of the California Government Code that address
<br />interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of
<br />debt proceeds held by bond trustee that are governed by the provisions of the related bond documents.
<br />Investment Type
<br />12 Months or
<br />13 to 24
<br />25 to 60
<br />Fair Value
<br />Less
<br />Months
<br />Months
<br />$19,900,612
<br />$3,193,605
<br />$7,163,418
<br />$9,543,589
<br />22,256
<br />22,256
<br />40%
<br />Commercial Paper
<br />6,061,697
<br />2,413,850
<br />2,049,223
<br />1,598,624
<br />46,321,747
<br />46,321,747
<br />1 year
<br />20%
<br />673,913
<br />673,913
<br />20% of base value
<br />Medium Term Notes
<br />6,665,689
<br />2,294,883
<br />1,782,298
<br />2,588,508
<br />6,302,690 6,302,690
<br />$85,948,604 $61,222,944 $10,994,939 $13,730,721
<br />Investments Authorized by the City's Investment Policy and California Government Code
<br />The table below identifies the investment types that are authorized for the City by the City's Investment
<br />Policy. The table also identifies certain provisions of the California Government Code that address
<br />interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of
<br />debt proceeds held by bond trustee that are governed by the provisions of the related bond documents.
<br />Investment Type
<br />Maximum Maturity
<br />Maximum Percentage of*Portfolio
<br />U.S. Treasury Obligations
<br />5 years
<br />None
<br />U.S. Agency Securities
<br />5 years
<br />None
<br />Local Agency bonds
<br />5 years
<br />None
<br />Bankers Acceptances
<br />180 days
<br />40%
<br />Commercial Paper
<br />270 days
<br />30%
<br />Negotiable Certificate of Deposit
<br />5 years
<br />30%
<br />Repurchase Agreements
<br />1 year
<br />20%
<br />Reverse Repurchase Agreements
<br />92 days
<br />20% of base value
<br />Medium Term Notes
<br />5 years
<br />10%
<br />Mutual Funds
<br />N/A
<br />20%
<br />Money Market Mutual Funds
<br />N/A
<br />20%
<br />Mortgage Pass -Through Securities
<br />5 years
<br />20%
<br />County Pooled Investment Funds
<br />N/a
<br />None
<br />Local Agency Investment Fund (LAIF)
<br />N/A
<br />$40 million per account
<br />Other investment pools
<br />N/A
<br />None
<br />*excluding amounts held by bond trustee that are not subject to California Government Code
<br />Investments in Local Agency Investment Fund
<br />The City invests in the Local Agency Investment Fund (LAIF), a State of California external investment
<br />pool. LAIF determines fair value on its investment portfolio based on market quotations for those
<br />securities where market quotations are readily available and based on amortized cost or best estimate for
<br />those securities where market value is not readily available.
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