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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 />• Asset-backed Securities, the bulk of which are mortgage-backed securities, entitle their
<br />purchasers to receive a share of the cash flows from a pool of assets such as principal and interest
<br />repayments from a pool of mortgages (such as CMOs) or credit card receivables.
<br />Concentration of Credit Risk
<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 />US Government Agency Securities
<br />Federal agency securities:
<br />Federal Home Loan Bank (FI-ILB)
<br />Total
<br />Disclosures Relating to Credit Risk
<br />Amount Invested
<br />$ 7,729,460
<br />$ 7,729,460
<br />Percentage of
<br />Investments
<br />6.14%
<br />6.14%
<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 />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 />Minimum
<br />Fair Legal Exempt From
<br />Investment Type Value Rating Disclosure Not Rated AAA AA+
<br />Federal Agency Securities $ 18,225,360 NIA $ -$ -$ -$18,225,360
<br />Money Market Fund 14,930,759 NIA 14,930,759
<br />U.S. Treasury Notes 23,835,115 NIA 23,835,115
<br />Local Agency Investment Fund 61,320,822 NIA 61,320,822
<br />Medium-Term Notes 14,517,363 A 639,750 946,202
<br />Asset Backed Securities 3,061,187 AAA 3,061,187
<br />Supranationals 5,227,927 AA 5,227,927
<br />Held by fiscal agent:
<br />U.S. Treasury Money Market Funds 1,117,999 A 1,117,999
<br />Total $ 142,236,532 $ 23,835,115 $61,320,822 $ 24,977,622 $19,171,562
<br />AA AA-A+ A A-
<br />Medium-Term Notes $ 516,590 $ 3,546,282 $ 3,714,315 $ 4,394,732 $ 759,492
<br />55 520
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