Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 31 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 31 - The Department had no assets or liabilities that met the criteria for Level 3 at December 31, 2016 and 2015. The following fair value hierarchy table presents information about the Department’s assets, liabilities, and deferred inflows of resources reported at fair value on a recurring basis or disclosed at fair value as of December 31, 2016 and 2015: ($ in millions) 2016 Level 1 Level 2 Total Assets Fair value investments (16.9% of City pool) Bank note - $ 8.1 $ 8.1 $ Commercial paper - 34.6 34.6 Local government investment pool - 7.7 7.7 Municipal bonds - 51.8 51.8 Repurchase agreements 8.5 - 8.5 U.S. government agency mortgage-backed securities - 44.2 44.2 U.S. government agency securities - 93.6 93.6 U.S. treasury & U.S. government-backed securities 46.5 2.1 48.6 Total fair value investments (16.9% of City pool) 55.0 242.1 297.1 Exchange energy receivable - 2.1 2.1 Total Assets at fair value 55.0 $ 244.2 $ 299.2 $ Deferred Inflows of Resources Exchange energy regulatory deferred gains - $ 1.2 $ 1.2 $ ($ in millions) 2015 Level 1 Level 2 Total Assets Fair value investments (23.7% of City pool) Bank note - $ 11.7 $ 11.7 $ Commercial paper - 52.1 52.1 Municipal bonds - 65.8 65.8 Repurchase agreements 13.1 - 13.1 U.S. government agency mortgage-backed securities - 52.1 52.1 U.S. government agency securities - 114.4 114.4 U.S. treasury & U.S. government-backed securities 103.3 4.7 108.0 Total fair value investments (23.7% of City pool) 116.4 300.8 417.2 Exchange energy receivable - 1.5 1.5 Total Assets at fair value 116.4 $ 302.3 $ 418.7 $ Deferred Inflows of Resources Exchange energy regulatory deferred gains - $ 0.6 $ 0.6 $