Item 4C: Adoption of Resolution on FY12 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 not guaranteeing that all funds are 100% protected. A bank depository is required to pledge collateral valued at least 10% of their quarter-end public fund deposits if they are considered “adequately capitalized.” The Office of State Treasurer (OST) has identified the following exceptions to the collateral calculation and any exception requires 100% collateralization. A bank may not accept public fund deposits from one depositor in excess of their net worth. If the bank 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 bank’s net worth while working to eliminate that excess. A bank 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 bank may only hold in excess of 30% of all aggregate public funds reported by all banks 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 banks to pledge additional collateral up to 110% of the value of FDIC uninsured public fund deposits.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, 2012, the City had deposits of $1,246,569 insured by federal depository insurance and $19,415,911 collateralized under the PFCP. At June 30, 2012, the City had $513,810 in deposits (cash with fiscal agent) held by escrow companies that were uninsured and uncollateralized. Investments As of June 30, 2012, the City held the following investments and maturities: Weighted average% of Carryingmaturityinvestment Investment typevaluein yearsportfolio Corporate securities$6,872,8110.6203.9% Local government investment pool40,715,4410.00323.5% Municipal bonds32,993,3560.81218.9% U.S. agency securities91,596,5141.38152.6% U.S. treasury securities1,999,8400.1251.1% Total$174,177,9620.907100.0% continued 49