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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2022
<br />NOTE 2 – CASH AND INVESTMENTS (Continued)
<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 Type Fair Value
<br /> 12 Months or
<br />Less 13 to 24 Months 25 to 60 Months
<br />33,541,703$ 8,807,997$ 13,224,547$ 11,509,159$
<br />Money Market Fund 32,993 32,993 - -
<br />U.S. Treasury Notes 58,144,396 15,248,943 15,314,880 27,580,573
<br />Local Agency Investment Fund (LAIF)73,273,005 73,273,005 - -
<br />Medium-Term Notes 26,576,498 6,225,192 5,979,318 14,371,988
<br />Asset Backed Securities 6,089,629 - 156,105 5,933,524
<br />Supranationals 1,957,020 1,957,020 - -
<br />Commercial Paper 1,993,780 1,993,780 - -
<br />PARS Pension Trust - Mutual Funds 5,641,874 5,641,874 - -
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market Funds 5,839,083 5,839,083 - -
<br />Total 213,089,981$ 119,019,887$ 34,674,850$ 59,395,244$
<br />Federal Agency Securities
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