Agenda Packet 12-9-19 Meeting - Laserfiche WebLink

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements continued (4) Detailed Notes on All Funds (A) Equity in Pooled Cash and Investments The City maintains a common cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed in the Statement of Net Position, the Statement of Fund Net Position, or the Balance Sheet as "Equity in pooled cash and investments.” Cash and investments are comprised of the following at June 30, 2019: Cash on hand $ 30,193 Cash with fiscal agent 206,825 Deposits with banks 47,677,782 Investments 300,272,475 $ 348,187,275 Deposits At June 30, 2019, the City’s deposits with various financial institutions were $47,677,782, which included time certificates of deposits. The City’s investment policy limits investments in time certificates of deposits to 50% of the City’s total investment portfolio with a maximum length to maturity of three years. All City deposits not covered by Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insurance are covered by the Public Funds Collateralization Program (PFCP) of the State of Oregon. The PFCP is a shared liability structure for participating depositories, better protecting public funds, though not guaranteeing that all funds are 100% protected. A depository is required to pledge collateral securities with a total market value equal to at least 10% of their last reported uninsured public fund deposits. The Office of State Treasurer (OST) has identified the following exceptions to the collateral calculation and any exception requires 100% collateralization.  A depository may not accept public fund deposits from one depositor in excess of their net worth. If the depository has a drop in net worth that takes them out of compliance, they are required to post 100% collateral on any amount the depositor has in excess of the depository’s net worth while working to eliminate that excess.  A depository may not hold aggregate public funds in excess of a percentage of their net worth based on their capitalization category (100% for undercapitalized, 150% for adequately capitalized, 200% for well capitalized) unless approved, for a period of 90 days or less, by OST.  A depository may only hold in excess of 30% of all aggregate public funds reported by all depositories holding Oregon public funds if the excess is collateralized at 100%. The OST, at the advice of the Director of Consumer and Business Services, may also, at any time, require depositories to pledge additional collateral up to 110% of the value of the uninsured public fund deposits. In the event of a depository failure, the entire pool of collateral pledged by all qualified Oregon public funds depositories is available to repay deposits of public funds of government entities. Custodial Credit Risk Custodial credit risk is the risk that in the event of a depository failure, the government’s deposits may not be returned to it. At June 30, 2019, the City had deposits of $1,000,000 insured by the FDIC, and $52,628,899 collateralized under the PFCP. At June 30, 2019, the City had $206,825 in deposits (cash with fiscal agent) held by escrow companies that were uninsured and uncollateralized. 48 December 9, 2019, Meeting - Item 2CCC Agenda - Page 92