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<br />. . .
<br />
<br />.. . J~~OTE 2;'" C~SH AN01NVESTMENTS.(CONTINllEI))
<br />
<br />B.
<br />
<br />Ri..~k Di~closures
<br />
<br />
<br />Interest Rate.> Risk. .As a means of."lim.iting. its exposure io fair :value losses arising from rising interest
<br />rates, the City's investment policy provides that" final maturities .ofsecu.rities cannot exceed three years.
<br />Specific. maturities of investments depend orr liquidity needs. .:. : ::. :
<br />
<br />. ' .
<br />. As of June 30, 2008, the City had the f~llowing cash and investments availabfeforopcrinions:
<br />
<br />. . Demand Accoi.mts at Banks
<br />Certificates of Deposit
<br />Petty Cash
<br />. San Mateo County Investment Fund:..
<br />California Local Agency .rnves~ent Fund :
<br />U.S. i\gencies. SecuTitjes~. and Corporate Notes:
<br />, F ederci.l Hume Loan Ban k .
<br />! Federal Nalional Mortgage Association
<br />;, Federal: Home Lo~ Mortgage Corpor.uion
<br />Federal Farm Credit
<br />. U.S. Treasury.seeurities: .
<br />.TOTAL.
<br />
<br />Fair Value
<br />$
<br />(763,936)
<br />1.620.000 .!
<br />.J 1,800
<br />42;682,43"2.:: .
<br />20,769,859. .
<br />
<br />37,770,680
<br />9.061:,"890.
<br />18.842.138
<br />.9 .q42,21 0 .
<br />., !6.097,500
<br />145,134,573
<br />
<br />. Investment MatUTities (in years)
<br />
<br />1 Year or Less
<br />'$
<br />(763,936)
<br />1.620.000
<br />11,800
<br />421682,432
<br />20,769.859
<br />
<br />. :6.072J80
<br />3,014J>70 .
<br />8.366.447: :: .
<br />
<br />. 3,040:.770.
<br />84,813,622 .
<br />
<br />1"~2 Years
<br />. $!
<br />
<br />2-3 Y cars'
<br />$
<br />
<br />;
<br />.,
<br />i
<br />
<br />. 24,506.310
<br />.3,041,250
<br />4,4i7,071.
<br />3.080,640
<br />3,0'56,730 .
<br />38,162,001. .
<br />
<br />7,192.190
<br />. 3,006.570 .
<br />:5,998,6Z0 .
<br />.: 5,961,570
<br />
<br />22.158,950
<br />
<br />Credit Risk - Defi~ed as<the risk .Of.los~ of value of an investment due toa downgrade of its .rating or the
<br />failure or impairment of its issuer. . Ciedit RiskshalLbe mitigated by.investing in investment grade
<br />securities and by diversifying the investment portfolio so that. failUre of anyone issue does not .unduly
<br />harm.the City's capital base and cash flow. In ord.er to .1irn,it l~ss .exposure due to Credit'Risk. the
<br />investment pollcy:1imits purchases ofcommerclal paperiJ1vestmentsto those rated A-L.by Standard and
<br />Poor's or P-l hy Moody's Investor's Service, and corporate bonds to those rated A or better by Standard
<br />and Poor's or Moody's Investor's Service,. . .
<br />
<br />On. Septe~ber 15, 200S: the San :!v1ateoiCounty Invcstment.Fund susminedsomelos.ses as a result of
<br />some:()fthe credit risks mate.rializi~g, so the City as a;Tesult all?o sustained a l.oss (Note 19).
<br />
<br />. '. .' .." .
<br />
<br />Onder the provisions of the City's investment p.olicy, and' in accord~nc~ with California Government Code,
<br />the foB?wing investments are authori7...cd: ,.'.U . ... :
<br />
<br />.. . Maximum i:. Maximu:m
<br />: Percentage of . :Investment in
<br />Portfolio One Issuer
<br />
<br />AuthOlized Inveslmellt Type
<br />
<br />Cen.ificales of Deposit
<br />. . I3anker's.acceptances
<br />::,Treasul)' Bills, NOles and Bonds.
<br />(~\lemmcnt AgencySocl;Irities
<br />. Commercial Paper
<br />. Local Agency InveSUllClll Fund.
<br />. Passbook Savings Accounts . i
<br />San Mateo (ount)' lovest.ll1Cnt Fund
<br />Money Market/Mutual Funds .
<br />O;rrpor.ate Notes .
<br />
<br />:i :Maxirn.Jm
<br />
<br />Matuiity
<br />
<br />lyeur
<br />180 days'
<br />3 years
<br />.3 years : :
<br />: 15 days
<br />, N/A:
<br />.} year
<br />N/A
<br />N/A
<br />3 years
<br />
<br />37
<br />
<br />7 .5()4~o
<br />'Nt, limit.
<br />No limit.
<br />. No Jimir. ,..::
<br />No Jj~it,
<br />No. limit .
<br />No limit.
<br />... No limit ..
<br />I~/o.
<br />3OU/o
<br />
<br />: ~
<br />
<br />$3M iliion
<br />.. .$3M iIIion
<br />.No limit.
<br />..No limit
<br />$1 Million:
<br />. .$40Million.
<br />: $100.000.
<br />$40M i1lio n .
<br />:. No limit.
<br />. $SMilIiol'l
<br />
<br />. .~.
<br />
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