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City of Redwood City
<br />Notes to the Basic Financial Statements (Continued)
<br />For the Year Ended June 30, 2025
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<br />Note 2 – Cash and Investments
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<br />Cash and investments are presented in the accompanying financial statements at June 30, 2025 as follows:
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<br />Fiduciary
<br />Governmental Business-Type Fund Financial
<br />Activities Activities Total Statements Total
<br />Cash and investments 285,277,242$ 155,401,649$ 440,678,891$ 5,851,509$ 446,530,400$
<br />Restricted cash and investments 41,215,282 11,444,898 52,660,180 2,818,524 55,478,704
<br />Total cash and investments 326,492,524$ 166,846,547$ 493,339,071$ 8,670,033$ 502,009,104$
<br />Government -Wi de S tatement of Net Posi ti on
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<br />Cash and investments at June 30, 2025, consisted of the following:
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<br />Cash on hand and deposits:
<br />Cash on hand 13,466$
<br />Deposits with financial institution 2,985,397
<br />Total cash on hand and deposits 2,998,863
<br />Investments:
<br />Local Area Investment Funds (LAIF)113,957,642
<br />San Mateo County Pool 55,915,458
<br />Investments 329,137,141
<br />Total investments 499,010,241
<br />Total cash and investments 502,009,104$
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<br />As part of the City's investment guidelines, the City continually seeks ways to increase investment income while not
<br />risking investment principal. One way the City accomplishes this is by “sweeping”, on a nightly basis, any excess cash
<br />held in its non-interest-bearing checking account to an interest-bearing money market account with the same bank.
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<br />A. Demand Deposits
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<br />The carrying amounts of the City’s demand deposits were $2,985,397 at June 30, 2025. Bank balances were
<br />$11,371,019 at that date, the total amount of which was collateralized or insured with securities held by the pledging
<br />financial institutions in the City’s name as discussed below.
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<br />The California Government Code requires California banks and savings and loan associations to secure the City’s
<br />cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have
<br />the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral
<br />for cash deposits is considered to be held in the City's name.
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<br />The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also
<br />allows institutions to secure City’s deposits by pledging first trust deed mortgage notes having a value of 150% of
<br />the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured
<br />up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the
<br />collateralization requirements.
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<br />B. Investments Authorized by the California Government Code and the City’s Investment Policy
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<br />The table below identifies the investment types that are authorized for the City by the California Government Code
<br />and the City's investment policy. The table also identifies certain provisions of the California Government Code (or
<br />the City's investment policy, if more restrictive) that address interest rate risk and concentration of credit risk.
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