Item 3C: Adoption of Resolution Acknowledging Receipt of the FY10 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, continued All City 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, 2010, the City had deposits of $1,000,000 insured by federal depository insurance and $13,831,828 collateralized under the PFCP. At June 30, 2010, the City had $1,015,969 in deposits (cash with fiscal agent) held by escrow companies that were uninsured and uncollateralized. Investments As of June 30, 2010, the City held the following investments and maturities: Weighted average% of Carryingmaturityinvestment Investment typevaluein yearsportfolio Corporate securities$2,616,2641.3201.6% Local government investment pool33,851,4950.00320.9% Municipal bonds16,644,0711.15310.3% U.S. agency securities104,522,1201.22064.6% U.S. treasury securities4,096,1150.5722.6% Total$161,730,0650.944100.0% continued