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6.G. - PaRedwoocT$i7
<br />City
<br />Notes to the Basic Financial Statements
<br />For the fiscal year ended June 30, 2018
<br />NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
<br />A. Cash and Deposits, Continued
<br />Cash balances from all funds are combined and invested to the extent possible pursuant to the City
<br />Council approved investment policy and guidelines and state government code. The earnings from these
<br />investments are allocated monthly to each fund based on an average of monthly opening and closing
<br />balances of cash and investments. Investments are stated at fair value. All enterprise fund investments
<br />are considered to be liquid investments for cash flow purposes.
<br />Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising interest
<br />rates, the City's investment policy provides that final maturities of securities cannot exceed three years.
<br />Specific maturities of investments depend on liquidity needs.
<br />B. Investments
<br />As of June 30, 2018, the City had the following investments by maturity:
<br />Cash and Investments
<br />Total
<br />1 year or Less
<br />Investment Maturities (in
<br />1 - 2 years 2- 3 years
<br />years)
<br />3 - 4 years
<br />5 years or
<br />More
<br />County of San Mateo
<br />Investment Pool
<br />$ 46,496,503
<br />$ 46,496,503
<br />$
<br />$
<br />$
<br />$
<br />California Local Agency
<br />Investment Fund
<br />83,079,550
<br />83,079,550
<br />U.S. Agencies, Securities, and
<br />Corporate Notes:
<br />Federal Agency Securities
<br />33,987,625
<br />7,909,080
<br />10,978,050
<br />3,606,046
<br />11,494,449
<br />-
<br />U.S. Treasury Notes
<br />54,040,569
<br />-
<br />3,654,175
<br />16,081,588
<br />24,428,971
<br />9,875,835
<br />Corporate Notes
<br />27,205,574
<br />-
<br />12,191,983
<br />9,413,793
<br />5,038,449
<br />561,349
<br />Bank Acceptance
<br />4,248,276
<br />4,248,276
<br />-
<br />-
<br />-
<br />-
<br />Certificate of deposit -
<br />Negotiable
<br />9,850,719
<br />-
<br />8,430,793
<br />1,419,926
<br />-
<br />Municipal Bonds
<br />976,030
<br />-
<br />-
<br />-
<br />976,030
<br />Collatealized Passthroughs
<br />4,989,269
<br />1,945,707
<br />3,043,562
<br />Supranational Obligations
<br />3,758,645
<br />-
<br />3,758,645
<br />-
<br />Money Market
<br />106,959
<br />106,959
<br />-
<br />Total
<br />$ 268,739,719
<br />$ 129,497,383
<br />$ 38,785,503
<br />$ 82,513,874
<br />$
<br />$
<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
<br />securities and by diversifying the investment portfolio so that failure of any one issue does not unduly
<br />harm the City's capital base and cash flow. In order to limit loss exposure due to Credit Risk, the
<br />investment policy limits purchases of investments to those rated in a rating category "A" or its
<br />equivalent or better by a NRSRO.
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