Item 3C: Adoption of Resolution Acknowleding CAFR

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CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (A) Equity in Pooled Cash and Investments, continued Deposits At June 30, 2009, the City’s deposits with various financial institutions had a bank value of $20,991,499. All deposits not covered by FDIC insurance are covered by the Public Funds Collateralization Program (PFCP) of the State of Oregon. The PFCP is a shared liability structure for participating bank depositories, better protecting public funds though still not guaranteeing that all funds are 100% protected. Barring any exceptions, a bank depository is required to pledge collateral valued at least 10% of their quarter-end public fund deposits if they are well capitalized, 25% of their quarter-end public fund deposits if they are adequately capitalized, or 110% of their quarter-end public fund deposits if they are undercapitalized or assigned to pledge 110% by the Office of the State Treasurer. In the event of a bank failure, the entire pool of collateral pledged by all qualified Oregon public funds bank 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 bank failure, the government’s deposits may not be returned to it. At June 30, 2009, the City had deposits of $2,001,605 insured by federal depository insurance and $18,989,894 collateralized under the PFCP. Investments As of June 30, 2009, the City held the following investments and maturities: Weighted average%of Carryingmaturityinvestment Investment typevalue in years portfolio Corporate securities $ 7,210,902 0.459 4.7% Local government investment pool 29,508,897 0.003 19.2% Municipal bonds 12,711,182 1.304 8.3% U.S. agency securities 102,211,952 0.984 66.5% U.S. treasury securities 2,089,591 0.636 1.3% Total$ 153,732,524 0.793 100.0% The "weighted average maturity in years" calculation assumes that all investments are held until maturity. Interest Rate Risk As a means of limiting its exposure to losses arising from rising interest rates, the City’s investment policy limits investment as follows: Maximum Maximum % of length portfolio to maturity Investment type Bankers' acceptances 25% 6 months Corporate securities 35% 18 months Local government investment pool 100% 1 day State and local government obligations 50% 3 years U.S. agency securities 100% 3 years U.S. treasury securities 100% 3 years continued