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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 />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 exceeded 5% of total portfolio, and
<br />Federal agency investments exhibited below exceeded 5% percent or more of the total investments in any
<br />one issuer:
<br />US Government Agency Securities Amount Invested
<br />Percentage of
<br />Investments
<br />Federal agency securities:
<br />Federal Home Loan Mortgage Corporation (FHLMC)9,764,598$ 13.92%
<br />Federal Home Loan Bank (FHLB)8,378,207 11.94%
<br />Federal National Mortgage Association (FNMA)7,526,359 10.73%
<br />Fannie Mae 5,951,639 8.48%
<br />Total 31,620,803$ 45.07%
<br />Disclosures Relating to Credit Risk
<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 City’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 /> Fair
<br />Minimum
<br />Legal Exempt From
<br />Investment Type Value Rating Disclosure Not Rated A-1 AAA AA+
<br />Federal Agency Securities 33,541,703$ N/A -$-$-$-$ 33,541,703$
<br />Money Market Fund 32,993 N/A 32,993
<br />U.S. Treasury Notes 58,144,396 N/A 58,144,396
<br />Local Agency Investment Fund 73,273,005 N/A 73,273,005
<br />Medium-Term Notes 26,576,498 A 2,115,043
<br />Asset Backed Securities 6,089,629 AAA 1,841,488 4,248,141
<br />Supranationals 1,957,020 AA 1,957,020
<br />Commercial Paper 1,993,780 A-1+1,993,780
<br />PARS Pension Trust - Mutual Funds 5,641,874 N/A 5,641,874
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market 5,839,083 A 5,839,083Total213,089,981$ 63,786,270$ 75,147,486$ 1,993,780$ 12,044,244$ 35,656,746$
<br /> AA AA- A+ A A-
<br />Medium-Term Notes 3,285,599$ 1,500,440$ 6,387,200$ 5,901,750$ 7,386,466$
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