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CITY OF LA PORTE, TEXAS
<br />NOTES TO THE FINANCIAL STATEMENTS (continued)
<br />Note 2 - Deposits (Cash) and Investments (continued)
<br />Deposit and Investment Amounts
<br />The City's cash and investments are classified as: cash and cash equivalents and restricted cash and
<br />investments. The cash and cash equivalents include cash on hand, fully collateralized deposits with
<br />financial institutions and in a privately-managed public funds investment pool account (TexPool, TexStar
<br />and LOGIC). The restricted cash and investments are assets restricted for specific use.
<br />The following schedule shows the City’s recorded cash and investments at year-end:
<br />Total Fair Value
<br />Governmental
<br />Internal Service Business Type
<br />Funds
<br />FundsActivities
<br />Cash deposits2,722,011$ 428,118$ 316,366$
<br />Pooled funds27,653,691 4,457,059 3,052,417
<br />Deposit and Investments14,071,9731,768,7342,303,951
<br />$ 6,653,91144,447,675$ 5,672,734$
<br />
<br />Investment Risks
<br />Interest Rate Risk
<br />At year-end, the City had the following investments subject to interest rate risk disclosure, under U.S.
<br />GAAP, by investment type:
<br />Weighted
<br />Average
<br />Total Fair Maturity
<br />Value(months)
<br />Investment Type
<br />Public funds investment pools35,163,167$ 2.8
<br />Federal Home Loan Mortgage Corporation (FHLMC)7,003,349 16.0
<br />Federal National Mortgage Association (FNMA)1,500,446 24.9
<br />Federal Home Loan Bank (FHLB)1,006,699 18.9
<br />Certificates of deposit8,634,164 3.3
<br />Total fair value53,307,825$
<br />Portfolio weighted average maturity
<br />6.2
<br />The City’s investment policy specifies the maximum stated maturity from the date of purchase for any
<br />individual investments may not exceed 5 years and the maximum dollar weighted average maturity for
<br />the pooled fund group (investment portfolio) may not exceed 2 years.
<br />Concentration of Credit Risk
<br />The policy does require investments to be staggered in a way that protects interest income from the
<br />volatility of interest rates. The policy has not established limitations on percentages of the total portfolio
<br />that may be invested in securities other than the repurchase agreements, Treasury bills and notes or
<br />insured and collateralized Certificates of Deposits.
<br />Total Fair Percentage of
<br />Investment TypeValueTotal Portfolio
<br />Investment Pools35,163,167$ 66%
<br />Certificates of Deposit8,634,16416%
<br />US Agency Securities9,510,49418%
<br />Total
<br />100%
<br />$ 53,307,825
<br />36
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