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City of Redwood City
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2016
<br />NOTE 2 — CASH AND INVESTMENTS (CONTINUED)
<br />B. Risk Disclosures
<br />6.1.D. - Page 73
<br />Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest rates,
<br />the City's investment policy provides that final maturities of securities cannot exceed three years. Specific
<br />maturities of investments depend on liquidity needs.
<br />As of June 30, 2016, the City had the following cash and investments available for operations:
<br />Cash and Investments
<br />Demand Accounts at Banks
<br />Petty Cash
<br />County of San Mateo Investment Pool
<br />California Local Agency Investment Fund
<br />U.S. Agencies, Securities, and Corporate Notes:
<br />Federal Home Loan Bank
<br />Federal National Mortgage Association
<br />Federal Home Loan Mortgage Corporation
<br />Federal Farm Credit
<br />Total
<br />Investment Maturities (in years)
<br />Total 1 year or Less 1- 2 years 2- 3 years
<br />1,678,097
<br />1,678,097
<br />11,860
<br />11,860
<br />50,325,003
<br />50,325,003
<br />45,194, 491
<br />45,194, 491
<br />14,014,690
<br />8,009,170
<br />6,005,520
<br />20,041,220
<br />9,027,930
<br />11,013,290
<br />80,139,790
<br />59,058,940
<br />21,080,850
<br />21,019,590
<br />6,002,550
<br />12,016,320
<br />3,000,720
<br />$ 232,424,741 $ 103,212,001 $ 88,112,360 $ 41,100,380
<br />Credit Risk — Defined as the risk of loss of value of an investment due to a downgrade of its rating or the
<br />failure or impairment of its issuer. Credit Risk shall be mitigated by investing in investment grade securities
<br />and by diversifying the investment portfolio so that failure of any one issue does not unduly harm the
<br />City's capital base and cash flow. In order to limit loss exposure due to Credit Risk, the investment policy
<br />limits purchases of commercial paper investments to those rated A-1 by Standard and
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