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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 />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 security:
<br />Federal Home Loan Bank (FHLB)26,120,409$ 13.00%
<br />Total 26,120,409$ 13.00%
<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 43,544,087$ N/A -$ -$-$-$ 43,544,087$
<br />Money Market Fund 178,398 N/A -178,398 ---
<br />U.S. Treasury Notes 86,819,056 N/A 86,819,056 -- --
<br />Local Agency Investment Fund 10,868,531 N/A -10,868,531 - --
<br />Medium-Term Notes 46,142,010 A --- - 2,226,512
<br />Asset Backed Securities 21,977,327 AAA -4,601,340 -17,375,987 -
<br />Supranational 2,340,280 AA --2,340,280 --
<br />PARS Pension Trust - Mutual Funds 31,600,441 N/A 31,600,441 -- --
<br />Held by fiscal agent:
<br /> U.S. Treasury Money Market Funds 3,133,710 A - -- 3,133,710 -
<br />Total 246,603,840$ 118,419,497$ 15,648,269$ 2,340,280$ 20,509,697$ 45,770,599$
<br /> AA AA- A+ A A-
<br />Medium-Term Notes 2,655,220$ 2,962,306$ 10,030,378$ 14,995,281$ 13,272,313$
<br />56
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