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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 />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 (FHLB)
<br />Federal Home Loan Mortgage Corporation (FHLMC)
<br />Federal National Mortgage Association (FNMA)
<br />Toyota
<br />Total
<br />Disclosures Relating to Credit Risk
<br />Percentage of
<br />Amount Invested Investments
<br />$ 14,254,108
<br />20.55%
<br />5,416,042
<br />7.81%
<br />6,523,374
<br />9.41%
<br />5,315,904
<br />7.67%
<br />$ 31,509,428
<br />45.44%
<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 />Minimum
<br />Fair Legal Exempt From
<br />Investment Type Value Rating Disclosure Not Rated A-1 A-1+ AAA AA+
<br />Federal Agency Securities
<br />Money Market Fund
<br />U.S. Treasury Notes
<br />Local Agency Investment Fund
<br />Medium -Term Notes
<br />Asset Backed Securities
<br />Supranationals
<br />Con rnercial Paper
<br />Held by fiscal agent:
<br />U.S. Treasury Money Market
<br />Total
<br />$ 27,195,934
<br />17,234,044
<br />37,623,921
<br />59,237,328
<br />26,886,311
<br />7,267,010
<br />4,417,518
<br />3,582,336
<br />N/A $ - $
<br />N/A
<br />N/A 37,623,921
<br />N/A
<br />A
<br />AAA
<br />AA
<br />A-1+
<br />- $ - $ - $ - $ 27,195,934
<br />17,234,044
<br />59,237,328
<br />1,990,240 1,592,096
<br />1,154,990 908,910
<br />7,267,010
<br />4,417,518
<br />553,930 A 553,930
<br />$183,998,332 $ 37,623,921 S 59,237,328 $ 1,990,240 $1,592,096 $ 30,627,492 $ 28,104,844
<br />AA AA- A+ A A-
<br />Medium-TermNotes $ 2,987,884 $ 5,498,661 $ 2,288,821 $ 11,492,624 $ 2,554,421
<br />W1
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