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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 />Deposits, continued <br />Custodial Credit Risk <br />Custodial credit risk is the risk that in the event of a depository failure, the government’s deposits may not be returned <br />to it. At June 30, 2016, the City had deposits of $500,000 insured by the FDIC, $500,000 insured by the NCUA, and <br />$21,466,263 collateralized under the PFCP. <br />At June 30, 2016, the City had $186,821 in deposits (cash with fiscal agent) held by escrow companies that were <br />uninsured and uncollateralized. <br />Investments <br />As of June 30, 2016, the City held the following investments: <br />Interest Rate Risk <br />As a means of limiting its exposure to losses from rising interest rates, the City’s investment policy limits investment <br />as follows: <br />Maximum <br />length <br />to maturity <br />Investment type <br />Bankers' acceptances6 months <br />Corporate indebtedness18 months <br />Local government investment pool1 day <br />State and local government obligations3 years <br />U.S. agency securities3 years <br />U.S. treasury securities3 years <br />With the exception of pass-through funds, the maximum amount of pooled investments to be placed in the Local <br />Government Investment Pool is limited by Oregon Statute to $47,012,858, which increases periodically <br />proportionately to the Portland Consumer Price Index. The limit can be temporarily exceeded for ten business days <br />and does not apply either to pass-through funds or to funds invested on behalf of another governmental unit. <br />Credit Risk <br />The City’s policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments as follows: <br />Issuers within Oregon must be rated “A” (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor’s, <br />Moody’s Investors Service or any other nationally recognized statistical rating organization at time of purchase. <br />Issuers not in Oregon must be rated AA / Aa (bonds) or A-1 / P-1 (commercial paper) or better at time of purchase. <br />continued <br />51 <br />