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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 />Concentration of Credit Risk
<br />
<br />The City’s Policy states that the investment portfolio shall be designed with the objective of attaining a
<br />rate of return throughout budgetary and economic cycles, commensurate with the City’s investment risk
<br />constraints and the cash flow characteristic of the portfolio. Purchases of mutual funds must not exceed
<br />20% of the value of the portfolio. Investments in U.S. agencies exceed 5% of total portfolio, and Federal
<br />agency investments exhibited below exceeded 5% percent or more of the total investments in any one
<br />issuer:
<br />
<br />U.S. Agencies Amount Invested
<br />Percentage of
<br />Investments
<br />Federal agency securities:
<br />Federal National Mortgage Association (FNMA)6,945,545$ 7.15%
<br />Total 6,945,545$ 7.15%
<br />Disclosures Relating to Credit Risk
<br />
<br />Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
<br />of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
<br />rating organization. Presented below is the minimum rating required by (where applicable) the California
<br />Government Code, the Entity’s investment policy, or debt agreements, and the actual rating as of year-end
<br />for each investment type.
<br />
<br />The City’s policy requires that the management company of mutual funds must have attained the highest
<br />rating provided by not less than two of the three largest nationally recognized rating organizations.
<br />
<br /> Fair
<br />Minimum
<br />Legal Exempt From
<br />Investment Type Value Rating Disclosure Not Rated AAA AA+
<br />Federal agency securities 18,140,147$ N/A 18,140,147 $
<br />Money Market Fund 953,667 N/A 953,667 $
<br />U.S. Treasury Notes 10,802,784 N/A 10,802,784$
<br />Local Agency Investment Fund 50,883,632 N/A 50,883,632$
<br />Medium-Term Notes 9,899,764 A 1,002,780
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market Funds 6,521,630 A 6,521,630
<br />Total 97,201,624$ 10,802,784$ 50,883,632$ 953,667 $ 25,664,557 $
<br /> AA AA- A+ A A-
<br />Medium-Term Notes 1,180,408 $ 1,748,518$ 2,187,373$ 3,273,400 $ 507,285 $
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