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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2015
<br />
<br />
<br />NOTE 2 - CASH AND INVESTMENTS (Continued)
<br />
<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, 2015, are classified as follows:
<br />
<br />Statement of net position:
<br />Cash and Investments 87,084,960$
<br />Cash and Investments held by trustee 4,195,982
<br />Fiduciary Funds:
<br />Cash and Investments 5,011,554
<br />Cash with fiscal agents 5,695,111
<br />Total cash and investments 101,987,607$
<br />Cash and investments as of June 30, 2015, are classified as follows:
<br />Deposits with financial institutions 4,785,983$
<br />Investments 97,201,624
<br />Total cash and investments 101,987,607$
<br />Interest Rate Risk
<br />
<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 />
<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 />
<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 />
<br />Investment Type Fair Value
<br /> 12 Months or
<br />Less 13 to 24 Months 25 to 60 Months
<br />18,140,147$ 6,835,490$ 4,347,283$ 6,957,374$
<br />Money Market Fund 953,667 953,667
<br />U.S. Treasury Notes 10,802,784 2,349,015 3,139,430 5,314,339
<br />Local Agency Investment Fund (LAIF)50,883,632 50,883,632
<br />Medium-Term Notes 9,899,764 1,887,501 3,331,296 4,680,967
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market Funds 6,521,630 6,521,630
<br />Total 97,201,624$ 69,430,935$ 10,818,009$ 16,952,680$
<br />Federal agency securities
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<br />50
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