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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 />Investments Authorized by the City’s Investment Policy and California Government Code <br />The table below identifies the investment types that are authorized for the City by the City’s Investment <br />Policy. The table also identifies certain provisions of the California Government Code that address <br />interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of <br />debt proceeds held by bond trustee that are governed by the provisions of the related bond documents. <br />Investment Type Maximum Maturity Maximum Percentage of *Portfolio <br />U.S. Treasury Obligations 5 years None <br />U.S. Agency Securities 5 years None <br />Bankers Acceptances 180 days 40% <br />Commercial Paper 270 days 25% <br />Negotiable Certificate of Deposit 5 years 30% <br />Repurchase Agreements 1 year 20% <br />Reverse Repurchase Agreements 92 days 20% <br />Medium-Term Notes 5 years 30% <br />Mutual Funds N/A 20% <br />Money Market Mutual Funds N/A 20% <br />Local Agency Investment Fund (LAIF)N/A $75 million per account <br />Passbook Accounts 5 years None <br />City Issued Securities N/A None <br />Supranational Securities 5 years 30% <br />Asset Backed Securities 5 years 20% <br />Mortgage Backed/Pass-Through Securities 5 years 20% <br />Collateralized Mortgage Obligations 5 years 20% <br />Other investment pools N/A None <br />*excluding amounts held by bond trustee that are not subject to California Government Code restrictions. <br />Investments in Local Agency Investment Fund <br />The City invests in the Local Agency Investment Fund (LAIF), a State of California external investment <br />pool. <br />The fair value is calculated by multiplying the account balance with LAIF times a fair value factor of <br />1.00008297 which is determined by LAIF. This fair value factor was determined by dividing all LAIF <br />participants’ total aggregate amortized cost by total aggregate fair value. <br />The City’s investments with Local Agency Investment Funds (LAIF) at June 30, 2021, included a portion of <br />the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the <br />following: <br />Structured Notes are debt securities (other than asset-backed securities) whose cash-flow <br />characteristics (coupon rate, redemption amount, or stated maturity) depend on one or more <br />indices and/or that have embedded forwards or options. <br />54315