|
CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2019
<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, 2019, are classified as follows:
<br />Statement of net position:
<br />Cash and investments 159,919,206$
<br />Cash and investments held by fiscal agents 96,073
<br />Fiduciary Funds:
<br />Cash and investments 27,940,331
<br />Cash and investments with fiscal agents 457,865
<br />Total cash and investments 188,413,475$
<br />Cash and investments as of June 30, 2019, are classified as follows:
<br />Deposits with financial institutions 4,415,143$
<br />Investments 183,998,332
<br />Total cash and investments 188,413,475$
<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 />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 />Investment Type Fair Value
<br /> 12 Months or
<br />Less 13 to 24 Months 25 to 60 Months
<br />27,195,934$ 9,799,184$ 7,777,479$ 9,619,271$
<br />Money Market Fund 17,234,044 17,234,044 - -
<br />U.S. Treasury Notes 37,623,921 10,153,827 12,995,053 14,475,041
<br />Local Agency Investment Fund (LAIF) 59,237,328 59,237,328 - -
<br />Medium-Term Notes 26,886,311 1,597,218 9,770,244 15,518,849
<br />Asset Backed Securities 7,267,010 - 741,086 6,525,924
<br />Supranationals 4,417,518 998,350 2,612,792 806,376
<br />Commercial Paper 3,582,336 3,582,336 - -
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market Funds 553,930 553,930 - -
<br />Total 183,998,332$ 103,156,217$ 33,896,654$ 46,945,461$
<br />Federal Agency Securities
<br />53200
|