Laserfiche WebLink
<br /> <br /> <br /> City of Paris, Texas <br /> Notes to Financial Statements <br /> September 30, 2009 <br /> <br /> <br /> IV. Detailed Notes on All Funds and Component Unit (Continued) <br /> <br /> A. Deposits and Investments (Continued) <br /> <br /> As of September 30, 2009, the City and Component Unit had the following investments: <br /> Credit Weighted Average <br /> Type of Secure Fair Value Rating Maturity (Years) <br /> Primary Government <br /> <br /> Mortgage Backed Securities: <br /> Federal Home Lon Mortgage Corporation $ 5,009,093 AAA 2.47 <br /> Federal National Mortgage Association 602,270 AAA 3.00 <br /> Notes: <br /> Federal Home Lo n Mortgage Corporation 593,115 AAA 0.33 <br /> Federal National Mortgage Association 1,170,376 AAA 0.86 <br /> <br /> Certificates of Deposit 84,063 Not Rated 0.50 <br /> <br /> Totals $ 7,458,917 2.08 <br /> <br /> Component Unit - PEDC <br /> Certificates of Deposit $ 501,762 Not Rated 0.26 <br /> <br /> <br /> Interest Rate Risk. It is the policy of the City to invest public funds in a manner which will <br /> provide the h ghest investment return with the maximum security while meeting the daily cash <br /> flow demand of the entity and conforming to all state and local statutes governing the investment <br /> of public fun s. The City's investment portfolio will be designed with the objective of attaining a <br /> rate of returr throughout budgetary and economic cycles and commensurate with the City's <br /> investment risk constraints and the cash flow characteristics of the portfolio. The City's <br /> investments ategy is active. Given this strategy, the basis used by the Finance Director to <br /> determine wh ther market yields are being achieved shall be the six-month U.S. Treasury Bill and <br /> the Average Fed Funds rate. No other formal policy related to interest rate risk is included in the <br /> City's adopted investment policy. <br /> Credit Risk is the risk that an issuer or other counter-party will not fulfill its obligations. Investing <br /> is performed in accordance with the City's investment policy adopted by the City Council <br /> complying with State law and the City Charter. City funds may be invested in securities <br /> authorized b Chapter 2256 of the State of Texas Government Code. <br /> Concentration of Credit Risk. The City's policy is to diversify its investments by security type <br /> and institution. With the exception of obligations of the United States or its agencies and <br /> authorized pools, no more than 50% of the City's total investment portfolio will be invested in a <br /> single financial institution with the exception of its local depository. <br /> <br /> <br /> <br /> <br /> 34 <br />