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CITY OF ROSEVILLE <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2005 <br />NOTE 4 - DETAILED NOTES ON ALL FUNDS (Continued) <br />A. Deposits and investments (Continued) <br />2. Investments (Continued) <br />Concentration risk — This is the risk associated with investing a significant portion of the City's <br />investment (considered 5 percent or more) in the securities of a single issuer, excluding U.S. <br />guaranteed investments (such as Treasuries), investment pools, and mutual funds. The City's <br />investment policies do not limit the concentration of investments. The City holds 31 % of its portfolio <br />with the US Treasury, 45% with Federal Home Loan Mortgage, and 24% with Fanny Mae. <br />Interest rate risk —This is the risk of potential variability in the fair value of fixed rate investments <br />resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the <br />greater the risk). The City does not have an investment policy limiting the duration of investments. <br />The City holds all investments to maturity. <br />B. Receivables <br />Governmental funds report deferred revenue in connection with receivables for revenues that are not <br />considered available to liquidate liabilities of the current period. Governmental funds also defer revenue <br />recognition in connection with resources that have been received, but not yet earned. At the end of the <br />current fiscal year, the various components of deferred revenue in the governmental funds were as follows: <br />Unavailable <br />Special assessments, unearned rental fees (Recreation) $ 9,3 69 <br />Special assessments (Revolving improvements) 90,855 <br />Special assessments (G.O. improvement bonds) 1,013,341 <br />Special assessments (Street construction) 1,014,821 <br />Total deferred /unearned revenue for governmental funds $ 2,128,3 86 <br />57 <br />