NOTE 2: DEPOSITS AND INVESTMENTS

    A. Deposits

    The City's deposits, including component units, are categorized to give an indication of the level of risk assumed by the City at year-end as follows:

    • Category 1 - Insured or collateralized with securities held by the City or by its agent in the City’s name.
    • Category 2 - Collateralized with securities held by the pledging financial institution’s trust department or agent in the City’s name.
    • Category 3 - Uncollateralized.

    At June 30, 1998, the carrying amount of the City's deposits was $14,548,000 and the bank balance was $44,496,000. Of this amount, $200,000 was covered by federal depository insurance and the balance was covered by collateral held by a third party in the City’s name (category 1).

     

    The carrying amount and the bank balance of the blended component unit deposits was $26,305,000 and is covered by collateral held by a third party in the entity’s name (category 1).

    The carrying amount of the discretely presented component unit deposits was $3,483,000 with a bank balance of $6,181,000 covered by collateral held by a third party in the entity’s name (category 1), and a bank balance of $845,000 which is uncollateralized (category 3).

    B. Investments

    The City's investments, including component units, are categorized to give an indication of the level of risk assumed by the City at year-end as follows:

    • Category 1 includes investments that are insured or registered or for which the securities are held by the City's agent in the City's name.
    • Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty’s trust department or agent in the City's name.
    • Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty, or by its trust department or agent, but not in the City's name.

    Certain investments, such as commingled funds, mortgage loans, and real estate limited partnership, are not required to be categorized because they are not evidenced by securities that exist in physical or book entry form.

    A summary of investments by risk category as of June 30, 1998, follows (in thousands):

    CATEGORY

    NOT

    TYPE OF INVESTMENT

    1

    2

    3

    CATEGORIZED

    TOTAL

    City of Houston

    U.S. government and agency

    securities

    $ 1,173,925

    $ -

    $ -

    $ -

    $ 1,173,925

    State and local government

    issues

    17,852

    -

    -

    -

    17,852

    Other

    106,747

    -

    -

    7,566

    114,313

    Total City

    1,298,524

    -

    -

    7,566

    1,306,090

    Blended component units

    U.S. government securities

    390,680

    -

    -

    -

    390,680

    Corporate bonds

    545,457

    -

    -

    -

    545,457

    Other fixed income securities

    -

    -

    150,761

    134,237

    284,998

    Commingled equity funds

    -

    -

    451,741

    -

    451,741

    Common & preferred stocks

    -

    -

    2,175,992

    -

    2,175,992

    Real estate and partnerships

    -

    -

    -

    16,745

    16,745

    Short-term investment funds

    -

    -

    -

    118,385

    118,385

    Other investments

    -

    -

    228,601

    683,304

    911,905

    Total blended component units

    936,137

    -

    3,007,095

    952,671

    4,895,903

    Discretely Presented

    Component Units

    U.S. government securities

    12,525

    -

    -

    -

    12,525

    Corporate bonds

    635

    -

    -

    -

    635

    Common stock

    -

    13,137

    -

    -

    13,137

    Land

    -

    -

    -

    3

    3

    Money market and mutual funds

    -

    -

    -

    2,010

    2,010

    Total discretely presented

    component units

    13,160

    13,137

    -

    2,013

    28,310

    Total investments reporting

    entity

    $ 2,247,821

    $ 13,137

    $ 3,007,095

    $ 962,250

    $ 6,230,303

    NOTE 3. Allowance for Doubtful ACCOUNTS

    The following were the allowances for doubtful accounts receivable by fund as of June 30, 1998 (in thousands):

    Fund

    Amount

    General

    Uncollectible General Property Taxes

    $ 25,613

    Ambulance charges

    124,050

    Others

    1,969

    Grant Revenue

    1,761

    Airport System

    734

    Convention and Entertainment Facilities

    450

    Water and Sewer System

    77,452

    $ 232,029

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