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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 deposits4,981,860$ 517,628$ 420,580$
<br />Pooled funds30,776,936 4,082,156 3,211,330
<br />Deposit and Investments10,249,2121,464,7802,356,082
<br />$ 6,064,56446,008,008$ 5,987,992$
<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 />Weihted
<br />g
<br />Average
<br />Total Fair Maturity
<br />Value(months)
<br />Investment Type
<br />Public funds investment pools38,070,422$ 1.5
<br />Federal Home Loan Mortgage Corporation (FHLMC)1,501,032 26.6
<br />Federal Farm Credit Bank (FFCB)7,506,624 22.3
<br />Federal Home Loan Bank (FHLB)2,504,071 8.9
<br />Certificates of deposit2,558,348 2.4
<br />Total fair value52,140,497$
<br />Portfolio weighted average maturity
<br />4.8
<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 Percentae of
<br />g
<br />Investment TypeValueTotal Portfolio
<br />73%
<br />Investment Pools38,070,422$
<br />5%
<br />Certificates of Deposit2,558,348
<br />22%
<br />US Agency Securities11,511,727
<br />100%
<br />Total
<br />$ 52,140,497
<br />33
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