Quote:
Investment Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the
counterparty to a transaction, a government will not be able to recover the value of investment
or collateral securities that are in the possession of an outside party. The City does not
have a formal investment policy for custodial credit risk for investments.
The following investments held by the City were exposed to custodial credit risks because
they are uninsured and unregistered with securities held by the counterparty, or the counterparty's
trust department or agent, either in the government's name or not in the government's
name:
Primary Government:
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of
an investment. The City must follow state statute and limit the stated final maturities of the investments
to no more than two years. The City does not have a formal investment policy for
interest rate risk for investments.
Investment Less More
Type Than 1 Than 2
U.S. treasuries and securities $ 13,555,492 $ -
Mutual bond funds - 2,200,000
Totals $ 13,555,492 $ 2,200,000
Investment Maturities (in Years)
2009
In the
Investment Government's
Type Name
U.S. treasuries and securities $ 13,555,492
Mutual bond funds 2,200,000
Total $ 15,755,492