|
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 />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 Amount Invested
<br />Percentag e of
<br />Investments
<br />Federal agency securities:
<br />Federal Home Loan Bank (FHLB) 14,254,108$ 20.55%
<br />Federal Home Loan Mortgage Corporation (FHLMC) 5,416,042 7.81%
<br />Federal National Mortgage Association (FNMA)6,523,374 9.41%
<br />Toyota 5,315,904 7.67%
<br />Total 31,509,428$ 45.44%
<br />Disclosures Relating to Credit Risk
<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 mutual funds must have the highest rating provided by not less than two of
<br />the three largest nationally recognized rating organizations.
<br /> Fair
<br />Minimum
<br />Legal Exempt From
<br />Investment Type Value Rating Disclosure Not Rated A-1 A-1+ AAA AA+
<br />Federal Agency Securities 27,195,934$ N/A -$ -$ -$ -$ -$ 27,195,934$
<br />Money Market Fund 17,234,044 N/A 17,234,044
<br />U.S. Treasury Notes 37,623,921 N/A 37,623,921
<br />Local Agency Investment Fund 59,237,328 N/A 59,237,328
<br />Medium-Term Notes 26,886,311 A 1,154,990 908,910
<br />Asset Backed Securities 7,267,010 AAA 7,267,010
<br />Supranationals 4,417,518 AA 4,417,518
<br />Commercial Paper 3,582,336 A-1+1,990,240 1,592,096
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market 553,930 A 553,930
<br />Total 183,998,332$ 37,623,921$ 59,237,328$ 1,990,240$ $1,592,096 30,627,492$ 28,104,844$
<br /> AA AA- A+ A A-
<br />Medium-Term Notes 2,987,884$ 5,498,661$ 2,288,821$ 11,492,624$ 2,554,421$
<br />55202
|