Agenda Packet 12-10-18 Meeting - REVISED

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements continued (4) Detailed Notes on All Funds, continued (A) Equity in Pooled Cash and Investments, continued Investments As of June 30, 2018, the City held the following investments: Weighted % of average Carrying investment maturity Investment type value portfolio in years Corporate indebtedness $ 27,786,937 10.8%0.654 Local government investment pool 22,842,581 8.8%0.003 Municipal bonds 14,604,361 5.7%0.967 U.S. agency securities 172,092,758 66.7%0.949 U.S. treasury securities 20,730,109 8.0%0.628 Total $258,056,746 100.0% Interest Rate Risk As a means of limiting its exposure to losses from rising interest rates, the City’s investment policy limits investment as follows: Maximum length Investment type to maturity Bankers' acceptances 6 months Corporate indebtedness 18 months Local government investment pool 1 day State and local government obligations 3 years U.S. agency securities 3 years U.S. treasury securities 3 years With the exception of pass-through funds, the maximum amount of pooled investments to be placed in the Local Government Investment Pool is limited by Oregon Statute to $48,333,000, which increases periodically proportionately to the Portland Consumer Price Index. The limit can be temporarily exceeded for ten business days and does not apply either to pass-through funds or to funds invested on behalf of another governmental unit. Credit Risk The City’s policy, which adheres to State of Oregon law, is to limit its Corporate and Municipal investments as follows: Issuers within Oregon must be rated “A” (bonds) or A-2 / P-2 (commercial paper) or better by Standard and Poor’s, Moody’s Investors Service or any other nationally recognized statistical rating organization at time of purchase. Issuers not in Oregon must be rated AA / Aa (bonds) or A-1 / P-1 (commercial paper) or better at time of purchase. 53 December 10, 2018, Meeting - Item 2D