Item 3C: Adoption of Resolution Acknowledging Receipt of the FY10 CAFR

Home Browse Search

CITY OF EUGENE, OREGON Notes to Basic Financial Statements (4) Detailed Notes on All Funds, continued (A) Equity in Pooled Cash and Investments, continued The Oregon State Treasurer maintains the Oregon Short Term Fund (OSTF), of which the Local Government Investment Pool (LGIP) is a part. Participation by local governments is voluntary. The State of Oregon investment policies are governed by statute and the Oregon Investment Council. In accordance with Oregon Statutes, funds are invested as a prudent investor would do, exercising reasonable care, skill and caution. The LGIP was created to offer a short-term investment alternative to Oregon local governments and it is not registered with the U.S. Securities and Exchange Commission. The investments are regulated by the OSTF and approved by the Oregon Investment Council (ORS 294.805 to 294.895). At June 30, 2010, the fair value of the City’s deposits with the LGIP approximates cost. The OSTF financial statements are available at http://www.ost.state.or.us/. The LGIP’s portfolio concentration of credit risk at June 30, 2010 included: Corporate Notes (26.6%), U.S. Agency Bonds (21.0%), Commercial Paper (20.9%), U.S. Agency Discount Notes (19.2%), Government Guaranteed Corporate Securities (9.5%), U.S. Treasury Bill (2.3%), and Certificates of Deposits (0.5%). The credit risk associated with the investments was: AAA rating (48.7%), AA rating (15.0%), A rating (34.9%), BBB rating (0.5%), ratings withdrawn (0.4%), and not rated (0.5%). Concentration of Credit Risk The City’s policy for investing in individual issuers varies depending on the type of investments. Agency securities are restricted to no more than 25% for any one issuer. No more than 25% of the total portfolio of investments may be invested in a single issuer of bankers’ acceptances. Investments in commercial paper or corporate bonds of any one issuer may not exceed 5% of the investment portfolio. continued