Page 72 - Moreno Valley 2025 Annual Financial Report

City of Moreno Valley, California

Notes to Financial Statements
For the Year Ended June 30, 2025

Note 3. Cash and Investments (Continued)

Investments Authorized by Debt Agreements:

The above investments do not address the investment of debt proceeds held by a bond trustee.
Investments of debt proceeds held by a bond trustee are governed by the provisions of the
debt agreements, rather than the general provisions of the California Government Code or the
City’s investment policy.

Investments in State Investment Pool:

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer of the State
of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists
of five members, in accordance with State statute. The State Treasurer’s Office audits the fund
annually. The fair value of the position in the investment pool is the same as the value of the
pool shares.

Investments in California CLASS Investment Pool:

In January 2024, the City established an investment pool option with California CLASS (CLASS),
in addition to LAIF. California CLASS is a Joint Powers Authority investment pool that provides
public agencies the opportunity to invest funds on a cooperative basis in rated pools that are
managed in accordance with state law with the primary objectives of offering Participants
safety, daily and next-day liquidity, and optimized returns.

GASB Statements No. 31 and 72:

In accordance with the generally accepted accounting principles, the City reports its investments
at fair value in the balance sheet. All investment income, including changes in the fair value
of investments, is recognized as revenue in the operating statement. GASB Statement No. 72
clarified the definition of fair value, established general principles for measuring fair value and
enhanced disclosures about fair value measurements.

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