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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2018
<br />I 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, 2018, are classified as follows:
<br />Statement of net position:
<br />Cash and investments
<br />Cash and investments held by trustee
<br />Fiduciary Funds:
<br />Cash and investments
<br />Cash and investments with fiscal agents
<br />Total cash and investments
<br />Cash and investments as ofJune 30, 2018, are classified as follows:
<br />Interest Rate Risk
<br />Deposits with financial institutions
<br />fuvestments
<br />Total cash and investments
<br />$ 125,349,674
<br />460,433
<br />19,866,259
<br />657,390
<br />$ 146,333,756
<br />$ 4,097,224
<br />142,236,532
<br />$ 146,333,756
<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 />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 />12Months or
<br />Investment Type Fair Value Less 13 to 24 Months 25 to 60 Months
<br />Federal Agency Securities $ 18,225,360 $ 6,892,790 $ 7,079,175 $ 4,253,395
<br />Money Market Fund 14,930,759 14,930,759
<br />U.S. Treasury Notes 23,835,115 11,008,235 2,078,446 10,748,434
<br />Local Agency Investment Fund (lAIF) 61,320,822 61,320,822
<br />Medium-Term Notes 14,517,363 9,048,578 689,290 4,779,495
<br />Asset Backed Securities 3,061,187 3,061,187
<br />Supranationals 5,227,927 896,976 987,245 3,343,706
<br />Held by fiscal agent:
<br />U.S. Treasury Money Market Funds 1,117,999 1,117,999
<br />Total $ 142,236,532 $ 105,216,159 $ 10,834,156 $ 26,186,217
<br />53 518
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