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City of San Leandro
<br />Notes to Basic Financial Statements
<br />For the year ended June 30, 2010
<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 Code, the City's
<br />Cash and investments as of June 30, 2010, are classified as follows:
<br />Statement of net assets:
<br />Cash and Investments $ 75,797,973
<br />Cash and Investments held by trustee 18,006,538
<br />Fiduciary Funds:
<br />Cash and Investments 1,734,982
<br />Cash with fiscal agents 448,960
<br />Total cash and investments $ 95,988,453
<br />Cash and investments as of June 30, 2009, are classified as follows:
<br />Deposits with financial institutions $ 12,307,431
<br />Investments 83,681,022
<br />Total cash and investments $ 95,988,453
<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 investment.
<br />Generally, the longer the maturity of an investment, there is a greater sensitivity of its fair value to changes in market
<br />interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of
<br />shorter term and longer term investments and by timing cash flow from maturities so that a portion of the portfolio is
<br />maturing or coming close to maturity evenly over time as necessary to provide cash flow and liquidity needed for
<br />operations.
<br />hi accordance with the Policy, the City manages its exposure to declines in fair values by limiting the weighted
<br />4 average maturity of its investment portfolio to 5 years or less. The City is in compliance with this provision of the
<br />Policy.
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<br />Information about the sensitivity of the fair values of the City's Investments to market interest rate fluctuations is
<br />provided by the following table that shows the distribution of the City's investment by maturity:
<br />Fair Market 12 Months or
<br />Investment Type Value Less -
<br />Federal agency securities $ 20,109,996 $ 4,460,120
<br />Money Market 203,465 203,466
<br />U.S. Treasury Notes 7,211,600 4,673,539
<br />Mutual Fund 344,843 344,843
<br />Local Agency Investment Fund (LAIF)
<br />Held by Bond Trustee:
<br />U.S. Treasury Money Market Funds
<br />Total
<br />50,497,592 50,497,592
<br />13 to 24 More Than 60
<br />Months 25-60 Months Months
<br />$ 15,649,875 $ - $ -
<br />2,538,061 - -
<br />5,313,526 5,313,526 - - -
<br />$ 83,681,022 $ 65,493,086 $ 18,187,936 $ - $ -
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