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CITY OF PLEASANTON <br /> <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />FOR THE YEAR ENDED JUNE 30, 2022 <br /> <br />  <br />Note 1: Summary of Significant Accounting Policies (Continued) <br /> <br />The City also reports the following types of funds: <br /> <br />Internal Service Funds – account for the City’s employee benefits, public art <br />acquisition and maintenance, equipment replacement and renovations provided to City <br />departments or to other governments, and self-insurance programs – workers' <br />compensation and general liability on a cost-reimbursement basis. <br /> <br />Fiduciary Fund Financial Statements <br /> <br />Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a <br />Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent <br />custodial funds and a private purpose trust fund. Custodial funds report fiduciary activities <br />that are not held in a trust or equivalent arrangement. The private purpose trust fund is <br />accounted for using the economic resources measurement focus. The fiduciary funds are <br />accounted for using the accrual basis of accounting. <br /> <br />The City reports the following fiduciary funds: <br /> <br />The Private-Purpose Trust Funds – accounts for the P.T.C.W.D. #3 Trust Fund. The <br />Trust received money in 1973 from the Pleasanton Township County Water District <br />#3 and the funds may be used in the future to maintain the private road that serves the <br />City’s water tanks. <br /> <br />The Custodial Funds – report fiduciary activities that are not held in a trust or <br />equivalent arrangement. These activities include retiree insurance, downtown <br />merchant improvements, asset forfeitures, miscellaneous agencies, and the Livermore <br />share only of the Livermore-Pleasanton Fire Department activities. <br /> <br />c. Cash, Cash Equivalents and Investments <br /> <br />The City pools its available cash for investment purposes. The City’s cash and cash <br />equivalents are considered to be cash on hand, demand deposits, and short-term <br />investments with original maturity of three months or less from date of acquisition. Cash <br />and cash equivalents are combined with investments and displayed as Cash and <br />Investments. <br /> <br />In accordance with GASB Statement No. 31, Accounting and Financial Reporting for <br />Certain Investments and for External Investment Pools, highly liquid market investments <br />with maturities of one year or less at time of purchase are stated at amortized cost. All other <br />investments are stated at fair value. <br /> <br />The City participates in the Local Agency Investment Fund (LAIF), an investment pool <br />managed by the State of California which invests a portion of the pooled funds in <br />Structured Notes and Asset-backed Securities. LAIF’s investments are subject to credit risk <br />with the full faith and credit of the State of California collateralizing these investments. In <br />addition, these Structured Notes and Asset-backed Securities are subject to market risk due <br />to change in interest rates. <br /> <br />59