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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
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