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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 />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 <br />Maturity <br />Value(months) <br />Investment Type <br />Public funds investment pools31,271,873$ 1.7 <br />Federal Home Loan Mortgage Corporation (FHLMC)7,989,916 28.3 <br />Federal Farm Credit Bank (FFCB)4,997,212 18.0 <br />Federal National Mortgage Association (FNMA)1,998,520 19.7 <br />Farmer Mac (FAMCA)1,500,273 1.1 <br />Federal Home Loan Bank (FHLB)5,988,409 29.6 <br />Total fair value53,746,203$ <br />Portfolio weighted average maturity <br />14.3 <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 TypeValue <br />Total Portfolio <br />58% <br />Investment Pools31,271,873$ <br />42% <br />US Agency Securities22,474,330 <br />100% <br />Total <br />$ 53,746,203 <br />Credit Risk <br />The primary objective of the City’s adopted Investment Policy is the safety of principal. Credit risk within <br />Draft 3/5/2015 <br />The primary objective of the City’s adopted Investment The primary objective of the City’s adopted Investment The primary objective of the City’s adopted Investment The primary objective <br /> of the City’s adopted Investment Policy is the safety of principal. Credit risk within Policy is the safety of principal. Credit risk within <br />the City’s portfolio among authorized investments approved by the City’s adopted Investment Policy is <br />the City’s portfolio among authorized investments athe City’s portfolio among authorized investments athe City’s portfolio among authorized investments athe City’s portfolio among authorized <br /> investments approved by the City’s adopted Investment Policy is pproved by the City’s adopted Investment Policy is <br />represented in U.S. Treasury Bills, Notes or Bonds, and other securities which are guaranteed as to <br />represented in U.S. Treasury Bills, Notes or Bondrepresented in U.S. Treasury Bills, Notes or Bondrepresented in U.S. Treasury Bills, Notes or Bondrepresented in U.S. Treasury Bills, <br /> Notes or Bonds, and other securities which are guaranteed as to s, and other securities which are guaranteed as to <br />principal and interest by the full faith and credit of the United States of America, collateralized or fully <br />insured certificates of deposits, FDIC insured banks in the State of Texas, repurchase agreements if <br />secured by U.S. Treasury Bills, Notes or Bonds and Public Funds Investment Pools. <br />34 <br /> <br />