Laserfiche WebLink
City of Redwood City <br />Notes to the Basic Financial Statements (Continued) <br />For the Year Ended June 30, 2025 <br /> <br /> <br />82 <br />Note 2 – Cash and Investments (Continued) <br /> <br />D. Risk Disclosure (Continued) <br /> <br />Disclosures Relating to Custodial Credit Risk (Continued) <br /> <br />The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount <br />deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging <br />first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025, the City’s <br />deposits (bank balances) were collateralized under California Law. <br /> <br />E. Restricted Cash <br /> <br />The City’s restricted cash consisted of $45,329,359 in cash and investments as of June 30, 2025 held by trustees or <br />fiscal agents. A portion of this restricted cash is pledged for the payment or security of certain bonds. Other <br />restricted cash includes investments with a trustee for the City’s Section 115 pension trust account. The California <br />government code provides that these monies, in the absence of specific statutory provisions governing the issuance <br />of bonds, may be invested in accordance with the ordinance, resolutions, or indentures specifying the types of <br />investments its trustees or fiscal agents may make. <br /> <br />F. Investment in State Investment Pool <br /> <br />The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the <br />oversight of the Treasurer of the State of California. As of June 30, 2025, the City had $113,957,642 invested in <br />LAIF within three (3) accounts for the City of Redwood City, the City of Redwood City Public Financing Authority, <br />and the Port of Redwood City in the amounts of $61,750,555, $26,644,496, and $25,562,591, respectively. LAIF <br />determines fair value on its investment portfolio based on market quotations for those securities where market <br />quotations are readily available and based on amortized cost or best estimate for those securities where market value <br />is not readily available. LAIF is reported at amortized cost, which approximates fair value. <br /> <br />G. Investments Held in Section 115 Trust <br /> <br />The City established an irrevocable Section 115 Pension Trust with Public Agency Retirement Services (PARS). <br />As of June 30, 2025, the trust had a balance of $31,580,588. PARS’ policy for allocation of invested assets is <br />established as noted below: <br /> <br />Target <br />Asset Class Allocation <br />Global Equity 20-40% <br />Fixed Income 50-80% <br />Cash 0-20% <br /> <br />At June 30, 2025, PARS held no investments in any one organization that represented 5% of more of fiduciary net <br />position. Rate of return: For the fiscal year ended June 30, 2025, the annual money-weighted rate of return on <br />investments, net of investment expenses, was 8.61%. The money-weighted rate of return expresses investment <br />performance, net of investment expense, adjusted for the changing amounts actually invested. <br /> <br />H. Investment in San Mateo County Investment Pool <br /> <br />As of June 30, 2025, the City had $55,915,458 invested in the San Mateo County Investment Fund (County Pool) <br />that is regulated by Code Section 16429 under the oversight of the Treasurer of the County. The City reports its <br />investment in the County Pool at the fair value amount provided by the County. <br />7.C. - Page 114 of 269 <br />133