Comprehensive Annual Financial Report - City of Santa Monica

More documents

Recommendations

Info

CITY OF SANTA MONICA, CALIFORNIA Notes to Basic Financial Statements, Continued For the fiscal year ended June 30, 2009 Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are generally authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. Maximum Maximum Authorized Maximum percentage Investment investment type maturity allowed in one issuer U.S. Treasury obligations None None None Federal Housing Administration debentures None None None U.S. agency securities None None None Time deposits None None None Unsecured certificates of deposit 180 days None None Banker's acceptances 180 days None None State obligations None None None Repurchase agreements 1 year None None Pre-refunded municipal obligations None None None Commercial paper 270 days None None Money market mutual funds None None None Investment contracts 30 years None None Investments Authorized by Actions of the City Council Cemetery and Mausoleum Perpetual Care funds are received from cemetery users for the perpetual care of cemetery grounds and of the mausoleum. The funds are legally restricted to the extent that only earnings, and not principal, can be used for restricted perpetual care purposes. These funds represent the accumulation of unspent monies from non-government sources and are not considered by the City to constitute “surplus funds” of a local government. Accordingly, these funds are not considered by the City to be subject to the provisions of the California Government Code Section 53601 or the City’s investment policy. These funds have been invested per instructions of the City Council. The table below identifies the investment types generally authorized for these investments. Current City Council instructions limit amount invested in equities (common stock) to 60% of the total portfolio with the balance to be invested in fixed income securities. The table also identifies certain provisions of these debt agreements that address interest rate risk and concentration of credit risk. 49
CITY OF SANTA MONICA, CALIFORNIA Notes to Basic Financial Statements, Continued For the fiscal year ended June 30, 2009 Maximum Maximum Authorized Maximum percentage Investment investment type maturity allowed in one issuer U.S. Treasury obligations None None None U.S. agency securities None None None Common stock None 60% None Corporate bonds None None None Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The fair value of callable securities is also sensitive to market changes in that if interest rates decrease between the time of purchase and the call date, the likelihood that a bond will be called and reinvested at a lower interest rate increases. The City’s portfolio also includes certain callable structured investments for which the coupon interest rate increases if the investments are not called be certain pre-determined dates. The fair value of these investments is also sensitive to market changes. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee and Charnock funds held jointly with another party in an escrow account) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity. For purposes of the schedule shown below, any callable securities are assumed to be held to maturity. Investment type Amount 12 Months or Less Remaining maturity (in months) 13 to 24 25 to 60 Months Months More than 60 Months Held by City: Federal agency securities $ 442,178,911 128,256,113 118,835,996 195,086,802 — Corporate medium term notes 58,274,990 — 12,320,890 45,954,100 — State investment pool 78,773,687 78,773,687 — — — Money market funds 42,064,361 42,064,361 — — — Held by others: Treasury notes/ bonds 798,119 131,494 — 192,383 474,242 Federal agency securities 5,826,363 5,332,850 — 493,513 Corporate medium term notes 1,410,627 — 507,325 731,266 172,036 Common stock 3,739,949 3,739,949 — — — Money market funds 15,229,433 15,229,433 — — — Total $ 648,296,440 273,527,887 131,664,211 241,964,551 1,139,791 50
Page 1:
Comprehensive Annual Financial Repo
Page 5 and 6:
CITY OF SANTA MONICA, CALIFORNIA Co
Page 7:
THIS PAGE INTENTIONALLY LEFT BLANK.
Page 10 and 11:
amount of borrowed property taxes i
Page 12 and 13:
five-year forecasts, and an underst
Page 14 and 15:
Cash Management Policies and Practi
Page 16 and 17:
OFFICIALS OF THE CITY OF SANTA MONI
Page 18 and 19:
Certificate of Achievement for Exce
Page 23 and 24: CITY OF SANTA MONICA, CALIFORNIA Ma
Page 36 and 37: CITY OF SANTA MONICA, CALIFORNIA St
Page 48 and 49: CITY OF SANTA MONICA, CALIFORNIA Pr
Page 54 and 55: CITY OF SANTA MONICA, CALIFORNIA Fi
Page 56 and 57: CITY OF SANTA MONICA, CALIFORNIA No
Page 110 and 111: City of Santa Monica, California Ye
Page 112 and 113: CITY OF SANTA MONICA, CALIFORNIA Ca
Page 114 and 115: CITY OF SANTA MONICA, CALIFORNIA Co
Page 120 and 121:
CITY OF SANTA MONICA, CALIFORNIA Sc
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 134 and 135:
Page 136 and 137:
Page 138 and 139:
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
THIS PAGE INTENTIONALLY LEFT BLANK
Page 146 and 147:
CITY OF SANTA MONICA, CALIFORNIA St
Page 148 and 149:
Page 150 and 151:
Page 152 and 153:
Page 154 and 155:
Page 156 and 157:
Page 158:
Page 161 and 162:
CITY OF SANTA MONICA, CALIFORNIA Fo
Page 163 and 164:
CITY OF SANTA MONICA, CALIFORNIA Ch
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
CITY OF SANTA MONICA, CALIFORNIA Ge
Page 171 and 172:
CITY OF SANTA MONICA, CALIFORNIA Di
Page 173 and 174:
CITY OF SANTA MONICA, CALIFORNIA Pr
Page 175 and 176:
CITY OF SANTA MONICA, CALIFORNIA Ra
Page 177 and 178:
CITY OF SANTA MONICA, CALIFORNIA Di
Page 179 and 180:
CITY OF SANTA MONICA, CALIFORNIA Wa
Page 181 and 182:
CITY OF SANTA MONICA, CALIFORNIA Re
Page 183 and 184:
CITY OF SANTA MONICA, CALIFORNIA Pr
Page 185 and 186:
CITY OF SANTA MONICA, CALIFORNIA Op
Page 187:
show all

Comprehensive Annual Financial Report - City of Santa Monica

Create successful ePaper yourself

Delete template?

Save as template?