2019 Comprehensive Annual Financial Report (CAFR)

General Statute 159-30.2 allows the City to establish a Law Enforcement Special Separation Allowance Trust and G.S. 147- 69.2 (65) allows the State Treasurer to invest deposits by the City into this Trust in the same manner as the OPEB Trust in the same three sub-funds outlined above. Interest income earned in the Capital Projects funds, amounting to $1,884,308 was assigned to the Debt Service Fund.

Valuation Measurement

Weighted Average

Investment Type

Method

Reported/Fair Value

Maturity (Year)

U.S. Government Agencies

Fair Value - Level 2 Fair Value - Level 2 Amortized Cost Fair Value - Level 2 Fair Value - Level 1 Amortized Cost Fair Value - Level 2 Fair Value - Level 1 Amortized Cost Fair Value - Level 1 Amortized Cost

$

233,412,991 43,814,070 1,206,391 7,787,128 14,139,905 2,732,332 4,493,182 5,933,890 2,013,608 102,642,981 12,460,077 430,645,130 8,575

0.95195 0.12342 0.00276 0.01783 0.03237 0.00002 0.00625 0.01029 0.00065 0.00004 0.00461

Commercial Paper

OPEB - STIF OPEB - BIF OPEB - EIF

LEOSSA - STIF LEOSSA - BIF LEOSSA - EIF

NCCMT Government Portfolio

NCCMT TermFund

M&F Bank

US Bank Trust Account:

US Government Agencies

Fair Value - Level 2

0.02852

Total Fair Value

$

Portfolio Weighted Average Maturity

1.17871

All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets. Level of fair value hierarchy: Level 1: Financial instruments are valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Level 2: Financial instruments are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ benchmark quoted prices. Interest Rate Risk In accordance with the formal approved City of Greensboro’s Charter, Article III, Section 4.71, the Investment Manager (Assistant Treasurer) prepares a memo describing investment transactions in detail as they are purchased. This memo is sent to the Mayor, the City Manager and the Finance Director (Treasurer) for signature approval and then returned to the Investment Manager. Although the investment policy has not been formally approved by the City Council, the City has an investment policy guideline, an internally approved Finance Department document that follows North Carolina General Statute 159-30. As a means of limiting the City’s exposure to declines in fair market values from rising interest rates, the City limits the weighted average maturity of its investments to less than 3.5 years. Also, the City purchases securities in a structured ladder with stated maturity dates to limit interest rate risk. The State Treasurer’s STIF is unrated and had a weighted average maturity of 1.3 years at June 30, 2019. The State Treasurer’s BIF is unrated and had a weighted average maturity of 7.81 years at June 30, 2019. Credit Risk North Carolina General Statute 159-30 limits investments in U.S. Governmental Agencies and commercial paper to those with top ratings issued by NRSRS. The City has no formal investment policy regarding credit risk, however in practice, it follows NCGS 159-30, and in effect the City limits its investment types to those with top ratings issued by NRSRS. As of June 30, 2019, the City had investments in the NCCMT Government Portfolio, which is rated AAAm by Standard and Poor’s, and in U. S. Government Agencies, all of which were rated AAA by Standard and Poor’s. The City also had investments in the NCCMT Term Portfolio, which is not rated. Investments in commercial paper by the City are rated either A1/P1 by Standard and Poor’s 37q