2023 Annual Comprehensive Report

States or obligations of which the principal and interest are guaranteed by the United States; and SEC-registered mutual funds certified by the N.C. Local Government Commission. The City typically holds investments to maturity in order to realize full book value and interest earnings. As required for periods beginning after June 15, 1997 by GASB Statement No. 31 , Accounting and Financial Reporting for Certain Investments and for External Investment Pools, the City’s investments with a maturity of more than one year at acquisition and non-money market investments are carried at fair value determined annually by quoted market prices, using the specific identification method. Money market instruments that have a remaining maturity at time of purchase of one year or less are reported at amortized cost. The securities of the NCCMT Government Portfolio, a SEC registered (2a-7) money market mutual fund, are valued at fair value, which is the NCCMT’s share price. Ownership interest of the State Treasurer’s Short Term Investment Fund (STIF) is determined on a fair market valuation basis as of fiscal year end in accordance with the STIF operating procedures. Valuation of the underlying assets is performed by the custodian. General Statute 159-30.1 allows the City to establish an Other Postemployment Benefit (OPEB) Trust managed by the staff of the Department of the State Treasurer and operated in accordance with state laws and regulations. It is not registered with the SEC and G.S. 159-30(g) allows the City to make contributions to the Trust. The State Treasurer in his discretion may invest the proceeds in equities of certain publicly held companies and long or short-term fixed income investments as detailed in G.S. 147-69.2 (1-6), (6c) and (8). Funds submitted are managed in three different sub-funds, the STIF consisting of short to intermediate treasuries, agencies and corporate issues authorized by G.S. 147-69.1, the Bond Index Fund (BIF) consisting of high quality debt securities eligible under G.S. 147-69.2(b)(1)-(6), and BlackRock’s MSCI ACWI EQ Index Non-Lendable Class B Fund (EIF) authorized under G.S. 147-69.2(b)(8). Under the authority of G.S. 147-69.3, no unrealized gains or losses of the STIF are distributed to participants of the fund. The BIF is also valued at $1 per share. The MSCI ACWI EQ Index Non-Lendable Class B Fund is priced at $31.81579 per share at June 30, 2023. 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 $3,765,226 was assigned to the Debt Service Fund.

Valuation Measurement

Weighted Average

Investment Type

Method

Reported/Fair Value

Maturity (Year)

U.S. Government Agencies U.S. Government Treasuries

Fair Value - Level 2 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 Fair Value - Level 1

$

402,680,934 23,790,660

0.50158 0.12492 0.16982 0.00001 0.01952 0.03611 0.00001 0.00427 0.01029 0.00058

Commercial Paper

5,924,100

OPEB - STIF OPEB - BIF OPEB - EIF

8,550

12,010,796 22,223,768

LEOSSA - STIF LEOSSA - BIF LEOSSA - EIF

8,992

2,627,131 6,334,908

NCCMT Government Portfolio US Bank Trust Account: US Government Agencies

129,399,311

Fair Value - Level 2

1,860,496

0.00302

Total Fair Value

$

606,869,646

Portfolio Weighted Average Maturity

0.87013

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.

40n