AgdaPkt 2009-01-12 clsd and reg - Laserfiche WebLink

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i:" . ::.: :l" ,.::.' .. .. . . .. . . . . . .. . .. <NOTE 2"':' ~ASH AND INVESTMEN.TS .(CONTINUED) The City's investments.are rated by the nationally recognized statistical rating organizations as follows: Moody's S&p. . .Fitch {].s. Agencies. Securities. and Corporate Notes: . Federal Home Loan Bank. . Federal National Mortgage AssoCiation Federal Home Loan Mortgage: Corporation F ederal Farm Credit. . . U.S. Treasury Securities , External Inve.~tn1cnt Pools: . San Mateo Counti [nvesUIlent. Fund California Local Agency Investment Fu.nd. Aaa Aaa .Aaa: Aaa .~aa AAA ... AAA AAA .AAA AAA . AA.A AAA. AAA AAA AAJV 1 + Not Rated Not Rated . Not Rated. Not Rated Not Rated . .. . . - OL~t()dial Credit Risk. For an investment., custodi.al credit risk .is tIle risk that, in, the event of the failure of the counter party, the.. City will not be able to: recover the value of its : investments. or. collateral". securities that are in the possession of an outside party.. All securiiles, with the ex.ception of the County Pool :and LAlF, are held by third-party custodians (Union: Bank ofCalifornja Trust Division, U.S. Bank; . and Bank of New York). Union Bank, U.S. Bank and Bank of-New Yor~ are registered members of the. Federal:Reserve Bank. Thesecurities held by. Union :Bank, u.s~ Bank. and Bank of New York are in ' stre.et name, and an account number assIgned to::the. City identifies O\vnership. None of the City's;. investments ~lerc subject"to custodial credit risk. . . . .' . . . . . . In. fiscal.:year 1997/98, ~he eit)': adopted Governmental Accounting Standards Bo~rd Statement' No. 31, . . which re.quires that the..City'sinvestmentsbe carried at fair value instead.ofco-sL:Under,GASB 31, the CitY must adjust the carrying :value of its investments to refl;ect".their .fair value. at"each 'fiscal" year-end, and it must include,the e~fects oftheSt: adjustments in income for that fiscal year... Changes in value at the fiscal year ended June 30, 2008 from the fiscal year ended June 30, 2007 amoUnted to an unrealized. . " ::: gain of$1,793,307. .' . GASB 3 i ~pphes t~ ali the City's illvestine.nt~, even if th~y 'are heid t~ maturity. and redeemed at full face value. Since the CitY's policy is to hold all investments to rriaturity,. the fair 'value adjustments required by GASH- 31 restilt in accounting: gains or losses (called tlrecognized" gains or losses) which do not reflect actual sales.:'ofthe inveSllnents (called "realized" gains or losses)... Thus;: . recognized gains or losses.on. an investmenf purchased at par will now reflect changes ,in..its:value 3.t.'each succeeding fiscal year-end, but these recognized gains or losses will .net to zero if the investmtmt is held to maturity. By following .the requirements' of GASB31, the City is .,reporting the amount df resources which would . ~ctually have been available jf it had. been required to liquidate albts investments .at any fisca.l year-end. . C.Restricted "Cas/I The City's restTict~d,cash .consisted:of $42,479,869 in cash and investments:as of June '30; 2008 held by . tTustees or fisc.al agents. . The City had $5,366,645 in restricted cash and investrnepts held by., the City. This restricted cash is pledged for the payment or security of certain bonds; certificates of participation. ;arid lease obligations; . .The California government code provides. that. these.~10ni"es, in the absence of specific statutory provisions governing the issuance of bonds, certi.ficates~: or leases,. may be invested in ;3ccordance with the ordinance, resolutions, Of, indentures specifyin.g the types of investments its triIstces or fiscal. agents may make. In some situations, these: investments differ from those permltted by the City iiwestment policy.. Included in these investments at June 30~ 2008 are guaranteed investment contracts \vj'th maturity dates in fiscal year;2009, 20ll, 2034~ and: 2035 authorized in the bond ,indenture and by City COWlcil prior to purchase. . . . . D. EX:J.erll,aIITll'estl1U!.nt'Pools. :- . .. . . .. The City s.~ voluntary: partlclpimt in the Local Agency. In~c.stment :Fund (LA IF) that is. regulated by 38 : '. .. . .,' . .... ...... . ::':.... .......- .....-..-..............-....-.