Laserfiche WebLink
COMMUNITY REDEVELOPMENT AGENCY <br />OF THE CITY OF SANTA ANA <br />Notes to the Basic Financial Statements (Continued) <br />Year Ended June 30, 2011 <br />Authorized Maximum <br />Investment Type Maturity <br />Maximum <br />Percentage <br />of Portfolio <br />Maximum <br />Investment <br />in Onp Icc»pr <br />U.S. Treasury Obligations <br />None <br />None <br />None <br />Federal Agency Securities <br />None <br />None <br />None <br />Banker's Acceptance <br />180 days <br />None <br />None <br />Certificates of Deposit <br />None <br />None <br />None <br />Commercial Paper <br />270 days <br />None <br />None <br />Municipal Obligations <br />None <br />None <br />None <br />Corporate Bonds and Notes <br />3 years <br />None <br />None <br />Money Market Mutual Funds <br />N/A <br />None <br />None <br />State of California Investment Pool <br />N/A <br />None <br />None <br />Investment Contracts <br />30 years <br />None <br />None <br />Disclosures Relating to Interest Rate Risk <br />Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value <br />of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of <br />its fair value to changes in market interest rates. One of the ways that the City manages its <br />exposure to interest rate risk for its cash and investment pool is by purchasing a combination of <br />shorter term and longer term investments and by timing cash flows from maturities so that a portion <br />of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide <br />the cash flow and liquidity needed for operations of the City and the Agency. <br />Information about the Agency's exposure to interest rate risk as a result of its equity in the cash and <br />investment pool of the City is provided by disclosures in the notes to the basic financial statements <br />of the City that shows the distribution of the City's investments by maturity. The weighted average <br />maturity of the investments of the City is 170 days. <br />Disclosures Relating to Credit Risk <br />Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the <br />holder of the investment. This is measured by the assignment of a rating by a nationally recognized <br />statistical rating organization. The City investment pool is not rated. Presented below is the <br />minimum rating required by debt agreements, where applicable, and the actual rating as of year end <br />for each investment type. <br />WE <br />