Laserfiche WebLink
CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2014 <br />NOTE 2 - CASH AND INVESTMENTS (Continued) <br />B. Investments <br />Under the provisions of the City's investment policy, and in accordance with California Government <br />Code, the City's Cash and investments as of June 30, 2014, are classified as follows: <br />Statement of net position: <br />Cash and Investments $ 77,802,307 <br />Cash and Investments held by trustee 3,706,982 <br />Fiduciary Funds: <br />Cash and Investments 7,594,407 <br />Cash with fiscal agents 13,413,676 <br />Total cash and investments $ 102,517,372 <br />Cash and investments as of June 30, 2014, are classified as follows: <br />Deposits with financial institutions $ 5,834,115 <br />Investments 96,683,257 <br />Total cash and investments $ 102,517,372 <br />Interest Rate Risk <br />Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an <br />investment. Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair <br />value to changes in market interest rates. One of the ways that the City manages its exposure to interest <br />rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash <br />flow from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over <br />time as necessary to provide cash flow and liquidity needed for operations. <br />In accordance with the Policy, the City manages its exposure to declines in fair values by limiting the <br />weighted average maturity of its investment portfolio to 5 years or less. The City is in compliance with <br />this provision of the Policy. <br />51 <br />