Seattle City Light 2016 ANNUAL REPORT | Audited Financial Statements 39 THE CITY OF SEATTLE—CITY LIGHT DEPARTMENT NOTES TO FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2016 AND 2015 - 39 - provided under the terms of the City Statement of Investment Policy and the procedures established therein. As of December 31, 2016, and 2015 The City’s pooled investments were as follows: ($ in millions) Fair Value of City Pooled Investments Weighted- Average Maturity (Days) Fair Value of City Pooled Investments Weighted- Average Maturity (Days) Bank Note 48.1 $ 658 49.4 $ 879 Commercial Paper 204.5 90 219.9 25 Local Government Investment Pool 45.4 3 - - Municipal Bonds 306.5 1692 277.6 1084 Repurchase Agreements 50.4 3 55.1 4 US Government Agency Mortgage-Backed Securities 261.4 1853 219.8 1906 US Government Agency Securities 553.8 1355 482.7 1213 US Treasury and US Government-Backed Securities 287.8 472 455.8 487 Total 1,757.9 $ 1,760.3 $ Portfolio Weighted Average Maturity 1103 896 2016 2015 As of December 31, 2016, and 2015, the Department’s share of the City pool was as follows: ($ in millions) 2016 2015 Operating cash and equity in pooled investments 73.2 $ 152.5 $ Restricted cash and equity in pooled investments 223.3 265.1 Total 296.5 $ 417.6 $ Balance as a percentage of City pool cash and investments 16.9% 23.7% Fair Value of Pooled Investments—The City reports investments at fair value and categorizes its fair value measurements within the fair value hierarchy established by GASB Statement No. 72, Fair Value Measurement and Application. See Note 2 Fair Value Measurement. Fair value of the City’s pooled investments fluctuates with changes in interest rates and the underlying size of the Pooled investment portfolio. To mitigate interest rate risk in the City’s Pooled investment portfolio, the City typically holds its investments to maturity and manages its maturities to ensure sufficient monthly cash flow to meet its liquidity requirements. During the first quarter of 2017, the Federal Reserve continued with tightening of monetary policy which caused short-term interest rates to increase and longer-term interest rates to decline. The City’s investments are held in slightly longer maturities beyond the influence of short-term monetary policy so the change in fair value of the City’s investments, and the Department’s share of investments, was favorable during the 1st quarter 2017 resulting in a prominently lower unrealized loss on investments. In March 2016, the City made its first deposit into the Washington State Local Government Investment Pool (LGIP) managed by the Office of the Washington State Treasurer. The LGIP is structured as a 2a7-