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CITY OF SAN LEANDRO
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />For The Year Ended June 30, 2024
<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 />43,544,087$ 11,668,500$ 9,003,814$ 22,871,773$
<br />Money Market Fund 178,398 178,398 - -
<br />U.S. Treasury Notes 86,819,056 29,504,122 21,449,736 35,865,198
<br />Local Agency Investment Fund (LAIF)10,868,531 10,868,531 - -
<br />Medium-Term Notes 46,142,010 12,571,678 9,309,669 24,260,663
<br />Asset Backed Securities 21,977,327 649,605 803,127 20,524,595
<br />Supranational 2,340,280 2,340,280 - -
<br />PARS Pension Trust - Mutual Funds 31,600,441 31,600,441 - -
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market Funds 3,133,710 3,133,710 - -
<br />Total 246,603,840$ 102,515,265$ 40,566,346$ 103,522,229$
<br />Federal Agency Securities
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