|
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 />Fair Value Hierarchy
<br />The City categorizes its fair value measurements within the fair value hierarchy established by generally
<br />accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value
<br />of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are
<br />significant other observable inputs; and Level 3 inputs are significant unobservable inputs.
<br />The following is a summary of the fair value hierarchy of the fair value of investments of the City as of
<br />June 30, 2024:
<br /> Level 1 Level 2 Total
<br />Investments By Fair Value Level:
<br />-$43,544,087$ 43,544,087$
<br />U.S. Treasury Notes - 86,819,056 86,819,056
<br />Medium-Term Notes - 46,142,010 46,142,010
<br />Asset Backed Securities - 21,977,327 21,977,327
<br />Supranational - 2,340,280 2,340,280
<br /> Total Investments -$200,822,760$ 200,822,760
<br />Investments Exempt from Fair Value Hierarchy:
<br />Local Agency Investment Fund (LAIF)10,868,531
<br />PARS Pension Trust - Mutual Funds 31,600,441
<br />Investments Measured at Amortized Cost:
<br />Held by fiscal agent:
<br />U.S. Treasury Money Market Funds 3,133,710
<br />Money Market Fund 178,398
<br />Total 246,603,840$
<br />Federal Agency Securities
<br />Investments classified in Level 2 of the fair value hierarchy, are valued using matrix pricing techniques
<br />maintained by various pricing vendors. Matrix pricing is used to value securities based on the securities’
<br />relationship to benchmark quoted prices. The California Local Agency Investment Fund (LAIF) is valued
<br />based on the fair value factor provided by the Treasurer of the State of California, which is calculated as
<br />fair value divided by the amortization cost of the investment pool and is exempt from the Fair Value
<br />hierarchy. Fair value is defined as the quoted market value on the last trading day of the period. These
<br />prices are obtained from various pricing sources by the custodian bank.
<br />Public Agency Retirement Services – Section 115 Pension Trust
<br />In June 2021, the City Council authorized the establishment of a Section 115 Pension Trust with the
<br />Public Agency Retirement Services (PARS). The trust is an irrevocable trust, and is used to set aside
<br />funds for future pension contributions. During fiscal year ended June 30, 2024, the City contributed
<br />$14,210,000 to the trust. As of June 30, 2024, the fair value of the trust was $31,600,441.
<br />57
|