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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br /> (A)Equity in Pooled Cash and Investments, continued
<br />Investments, continued
<br />At June 30, 2007, the Agency’s proportionate share of the City’s investments were rated as follows:
<br />HighestRatingFrom
<br />Investment typeMoody's Investors Service or Standard & Poor's Corporation
<br />TotalAaa/AAAAa/AAA/AP-1/A-1Not rated
<br />Corporate securities $2,225,645276,1721,478,330362,810108,3330
<br />Local government
<br /> investment pool 372,2570000372,257
<br />Municipal bonds 481,367481,3670000
<br />U.S. agency securities 5,857,1985,587,1980000
<br />U.S. treasury securities 222,294222,2940000
<br />Total$9,158,7616,837,0311,478,330362,810108,333372,257
<br />The Oregon State Treasurer maintains the Oregon Short Term Fund (OSTF), of which the Local
<br />Government Investment Pool (LGIP) is a part. Participation by local governments is voluntary. The State
<br />of Oregon investment policies are governed by statute and the Oregon Investment Council. In
<br />accordance with Oregon Statutes, funds are invested as a prudent investor would do, exercising
<br />reasonable care, skill and caution. LGIP was created to offer a short-term investment alternative to
<br />Oregon local governments. The investments are regulated by the OSTF and approved by the Oregon
<br />Investment Council (ORS 294.805 to 294.895). At June 30, 2007, the fair value of the City’s deposits
<br />with the LGIP approximates cost. The OSTF financial statements are available at http://ost.state.or.us.
<br />The LGIP’s portfolio concentration of credit risk at June 30, 2007 included: Commercial Paper (31.0%),
<br />Corporate Bonds (17.9%), Certificates of Deposits (1.2%), U.S. Agency securities (49.0%), and Bank
<br />Notes (0.9%). The credit risk associated with the investments was: AAA rating (50.8%), AA rating
<br />(11.6%), A rating (34.2%), and not rated (3.4%).
<br />Concentration of Credit Risk
<br />The City’s policy for investing in individual issuers varies depending on the type of investments. Agency
<br />securities are restricted to no more than 25% for any one issuer. No more than 25% of the total portfolio
<br />of investments may be invested in a single issuer of bankers’ acceptances. Investments in commercial
<br />paper or corporate bonds of any one issuer may not exceed 5% of the investment portfolio. At June 30,
<br />2007, more than 5% of the Agency’s proportionate share of the portfolio is invested in Federal National
<br />Mortgage Association (17.5%), Federal Home Loan Mortgage Corporation (15.5%), Federal Home Loan
<br />Bank (14.6%), and Federal Farm Credit Bank (12.6%) securities.
<br />continued
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