04012008 Regular Meeting - Laserfiche WebLink

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4. DETAILED NOTES ON ALL FUNDS (Continued) Deposits and Investments (Continued) 4. Concentration of Credit Risk: The government's investment policy states the maximum percentage allowed for each different investment instrument that can be used to make up the portfolio. The City's investments at September 30, 2007, are shown below: Rating Weighted Average Fair Value Rating Agency Maturity (Days) TexStar $ 63,01909 AAAm Standard & Poor's 24 Money Markets 8,569,206 AAAm Standard & Poor's N/a FNMA 33,840,746 AAA Standard & Poor's 120 FMHL 13,854,145 AAA Standard & Poor's 120 Freddie Mac 14,895,751 AAA /A -1+ Standard & Poor's 113 Total Fair Value $ 134,179,737 Texas Short -term Asset Reserve Program (TexStar) has been organized in conformity with the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, and the Public Funds Investment Act, Chapter 2256 of the Texas Government Code. These two acts provide for the creation of public fund investment pools and permit eligible governmental entities to jointly invest their funds in authorized investments. All investments are stated at amortized cost, which in most cases approximates the fair value of the securities. The objective is to maintain a stable $1.00 net asset value; however, the $1.00 net asset value is not guaranteed or insured. All securities will be marked -to- market daily. If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than $0.995 or greater than $1.005, the pool will sell portfolio holdings, as required, to maintain the ratio between $0995 and $1.005. All gains or losses from the sale of securities will be distributed among participants over a period of up to thirty (30) days from the date of which the gain or loss is realized. (continued) 37