Laserfiche WebLink
Re� 6.1. B. - 185 Jency of the City of Redwood City <br /> Notes to Basic Financial Statements, Continued <br /> For the year ended June 30, 2011 <br /> 2. CASH AND INVESTMENTS, Continued <br /> A - Rislc Disclosures <br /> Interest Rc�te Rislc - As a nleails of linuting its e��osure to fair value losses arising from risulg interest rates, <br /> the City's ulvestrnent policy provides that final nlaturities of securities caiulot exceed three years. Specific <br /> nlaturities of investments depend on liquidity needs. <br /> Credit Risk - Defined as t11e risk of loss of value of an ulvestment due to a downgrade of its ratings or t11e <br /> failure or inlpairnlent of its issuer. Credit Risk shall be nutigated by investing in investnlent grade securities <br /> and by diversifying the ulvestnlent portfolio so that failure of any one issue does not unduly harm the <br /> City's capital base and cash flow. In order to linut loss e�osure due to Credit Risk, the investment policy <br /> linuts purcllases of coninlercial paper ulvestrnents to those rated A-1 by Standard and Poor's or P-1 by <br /> Moody's Investor's Service, and corporate bonds to fllose rated A or better by Standard and Poor's or <br /> Moody's Investor's Service. <br /> 3. LOANS RECEIVABLE <br /> As of Jw1e 30, 2011, loans receivable consisted of the following: <br /> First Time Homebuyer Loan Program $ 235,586 <br /> City Centre Plaza Loans 1,665,649 <br /> First Time Homebuyer Silent Loan Program 557,005 <br /> Housing Rehabilitation Loans 186,654 <br /> First Community Housing Loans 2,427,000 <br /> Loans with Far Profit Organizations 633,153 <br /> Total $ 5,705,047 <br /> A. First Titirie Homebuyer L oc�n Program <br /> T11e Agency established a First Tin1e Honlebuyer Progranl during fiscal year 1995. Under the Program <br /> the Agency offers first time 11ome buyers, who qualify as having low and moderate incomes, financial <br /> assistance in t11e purchase of a honle within the City of Redwood City. These loans bear no ulterest and <br /> are secured by third deeds of trust on the property. No payments are due w1ti1 five years after the date <br /> of purcllase. At Jw1e 30, 2011 t11e Agency had loaned $235,586. Since tllese loans are not currently <br /> available for expenditure, fund balance 11as been reserved in t11is anlount. <br /> ?� <br />