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6.A. - Page 76 of 191 <br />CITY OF REDWOOD CITY <br />NOTES TO THE BASIC FINANCIAL STATEMENTS <br />For the Fiscal Year Ended June 30, 2019 <br />NOTE 2 — CASH AND INVESTMENTS (CONTINUED) <br />B. Investments <br />As of June 30, 2019, the City had the following investments by maturity: <br />Investment Maturities (in years) <br />Cash and Investments Total 1 year or Less 1 - 2 years 2- 3 years 3 - 4 years 5 years or More <br />County of San Mateo Investment Pool $ 47,432,204 $ 47,432,204 $ $ $ $ <br />California Local Agency Investment Fund 89,956,206 89,956,206 <br />U.S. Agencies, Securities, and Corporate Notes <br />Federal Agency Securities <br />24,837,219 <br />United States Treasury Obligations <br />1,411,280 <br />13,331,126 <br />3,623,900 <br />6,470,913 <br />U.S. Treasury Notes <br />70,512,446 <br />N/A <br />7,634,063 <br />28,509,869 <br />22,808,790 <br />11,559,724 <br />Corporate Notes <br />36,011,955 <br />6,161,072 <br />9,894,711 <br />9,903,546 <br />4,241,683 <br />5,810,943 <br />Certificate of Deposit - Negotiable <br />12,370,923 <br />7,048,729 <br />5,322,194 <br />- <br />- <br />- <br />Municipal Bonds <br />1,017,970 <br />- <br />- <br />- <br />1,017,970 <br />- <br />Asset-backed Securities <br />10,217,317 <br />- <br />1,888,660 <br />6,598,507 <br />1,730,150 <br />Supranational Obligations <br />5,889,224 <br />- <br />3,821,710 <br />2,067,514 <br />- <br />- <br />Money Market Mutual Funds <br />266,618 <br />266,618 <br />- <br />- <br />- <br />Total <br />$ 298,512,082 <br />$ 150,864,829 <br />$ 28,083,958 <br />$ 55,700,715 <br />$ 38,290,850 $ <br />25,571,730 <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 City's <br />capital base and cash flow. In order to limit loss exposure due to Credit Risk, the investment policy limits <br />purchases of investments to those rated in a rating category "A" or its equivalent or better by a NRSRO. <br />Under the provisions of the City's investment policy, and in accordance with California Government Code, <br />the following investments are authorized: <br />Authorized Investment Type <br />Maximum <br />Maturity <br />United States Treasury Obligations <br />5 years <br />Federal Agency or Government Sponsored Enterprises (GSEs) <br />N/A <br />Local Agency Investment Fund <br />N/A <br />San Mateo County Pool <br />N/A <br />State and Local Agency Bonds <br />N/A <br />Money Market and Mutual Funds <br />N/A <br />Local Government Investment Pools <br />N/A <br />U.S. Medium -Term Notes <br />5 years <br />Non-negotiable Certificates of Deposit <br />3 years <br />Negotiable Certificates of Deposit <br />N/A <br />Prime Commercial Paper <br />270 days <br />Bankers' Acceptances <br />180 days <br />Repurchase Agreements <br />90 days <br />Asset-backed Securities <br />5 years <br />Supranational Securities <br />5 years <br />Maximum <br />Percentage <br />of Portfolio <br />Maximum <br />Investment in <br />One Issuer <br />No limit <br />No limit <br />No limit <br />No limit <br />No limit <br />$65 Million <br />No limit <br />$50 Million <br />20% <br />5% <br />20% <br />5% <br />20% <br />No limit <br />30% <br />5% <br />10% <br />2% <br />30% <br />5% <br />25% <br />10% <br />10% <br />2% <br />10% <br />No limit <br />20% <br />5% <br />30% <br />5% <br />48 83 <br />