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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
<br />Federal Agency Securities
<br />Money Market Fund
<br />U.S. Treasury Notes
<br />Local Agency Investment Fund (LAIF)
<br />Medium -Term Notes
<br />Asset Backed Securities
<br />Supranationals
<br />Commercial Paper
<br />Held by fiscal agent:
<br />U.S. Treasury Money Market Funds
<br />Total
<br />553,930 553,930 - -
<br />$ 183,998,332 $ 103,156,217 $ 33,896,654 $ 46,945,461
<br />53
<br />12 Months or
<br />Fair Value
<br />Less
<br />13 to 24 Months
<br />25 to 60 Months
<br />$ 27,195,934
<br />$ 9,799,184
<br />$ 7,777,479
<br />$ 9,619,271
<br />17,234,044
<br />17,234,044
<br />-
<br />-
<br />37,623,921
<br />10,153,827
<br />12,995,053
<br />14,475,041
<br />59,237,328
<br />59,237,328
<br />-
<br />-
<br />26,886,311
<br />1,597,218
<br />9,770,244
<br />15,518,849
<br />7,267,010
<br />-
<br />741,086
<br />6,525,924
<br />4,417,518
<br />998,350
<br />2,612,792
<br />806,376
<br />3,582,336
<br />3,582,336
<br />-
<br />-
<br />553,930 553,930 - -
<br />$ 183,998,332 $ 103,156,217 $ 33,896,654 $ 46,945,461
<br />53
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