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6.1 B - Attachment No. 4
<br /> NOTE 2—CASH AND INVESTMENTS(CONTINUED�
<br /> The following is a summary of pooled cash and investments, including cash and investments with fiscal
<br /> agent at June 30,2009.
<br /> Fiduciary Fund
<br /> Financial
<br /> Government-wide Statement of Net Assets Statements
<br /> Fiduciary Funds
<br /> Governmental Business-Type Statement of
<br /> Activities Activities Total Net Assets Total
<br /> $ $ $ $ $
<br /> Cash and Investment 111,815,116 33,917,500 145,732,616 145,732,616
<br /> Restricted Cash and
<br /> Investments 13,922,372 14,216,330 28,138,702 6,888,288 35,026,990
<br /> Total Cash and Investments 180,759,606
<br /> B. Risk Disclosures
<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 /> As of June 30,2009,the City had the following cash and investments available for operations:
<br /> Investmet Maturities(in years)
<br /> Fair Value 1-2 Years 2-3 Years 2-3 Years
<br /> $ $ $ $
<br /> Demand Accounts at Banks 85,611 85,611
<br /> Certificates of Deposit 1,870,000 1,870,000
<br /> Periy Cash 11,800 11,800
<br /> County of San Mateo Investment Pool 31,849,500 31,849,500
<br /> California Local Agency Investment Fund 60,208,950 60,208,950
<br /> U.S.Agencies,Securities,and Corporate Notes:
<br /> Federal Home Loan Bank 25,730,700 18,392,880 7,337,820
<br /> Federal National Mortgage Association 9,175,620 3,064,680 3,104,070 3,006,870
<br /> Federal Home Loan Mortgage Corporation 10,704,105 4,446,375 3,236,250 3,021,480
<br /> Federal Farm Credit 3,044,070 3,044,070
<br /> U.S.Treasury Securities 3,052,260 3,052,260
<br /> TOTAL 145,732,616 126,026,126 13,678,140 6,028,350
<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 commercial paper investments to those rated A-1 by Standard and
<br /> Poor's or P-1 by 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.
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