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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2021
<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, 2021, are classified as follows:
<br />Statement of net position:
<br />Cash and investments 188,988,955$
<br />Cash and investments - restricted 4,729,673
<br />Cash and investments held by fiscal agents 7,719,761
<br />Fiduciary Funds:
<br />Cash and investments 4,373,657
<br />Cash and investments with fiscal agents 449,010
<br />Total cash and investments 206,261,056$
<br />Cash and investments as of June 30, 2021, are classified as follows:
<br />Deposits with financial institutions 12,714,356$
<br />Investments 193,546,700
<br />Total cash and investments 206,261,056$
<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. In accordance with the Policy,
<br />the City manages its exposure to declines in fair values by limiting the weighted average maturity of its
<br />investment portfolio to 5 years or less. The City is in compliance with 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 Typ e Fair Value
<br /> 12 Months or
<br />Less 13 to 24 Months 25 to 60 Months
<br />44,399,562$ 9,159,397$ 9,016,368$ 26,223,797$
<br />Mone y Market Fund 88,694 88,694 - -
<br />U.S. Treasur y Notes 37,668,393 11,314,203 10,472,452 15,881,738
<br />Local Agency Investment Fund (LAIF )74,557,857 74,557,857 - -
<br />Medium-Term Notes 20,593,467 4,956,347 7,015,739 8,621,381
<br />Asset Backed Securities 1,055,080 - - 1,055,080
<br />Supranationals 2,816,956 808,496 2,008,460 -
<br />Commercial Pa per 4,197,870 4,197,870 - -
<br />Held by fiscal agent:
<br /> U.S. Treasury Mone y Market Funds 8,168,821 8,168,821 - -
<br />Total 193,546,700$ 113,251,685$ 28,513,019$ 51,781,996$
<br />Federal Agency Securities
<br />53314
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