Common use of Deposits and Investments, Continued Clause in Contracts

Deposits and Investments, Continued. As of June 30, 2016, Hildale City had the following investments, ratings, and maturities: Fair Credit Weighted Average Investment Type Value Rating (1) Maturity (2) State of Utah Public Treasurer's Investment Fund $ 2,783,329 N/A 53.38 Total Fair Value $ 2,783,329 (1) Ratings are provided where applicable to indicate associated credit risk. N/A indicates not applicable. (2) Interest rate risk is estimated using the weighted average days to maturity. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Gas Departments’ policy for managing its exposure to fair value loss arising from increasing interest rates is to comply with the State’s Money Management Act. Section 51-7-11 of the Act requires that the remaining term to maturity of investments may not exceed the period of availability of the funds to be invested. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Gas Departments’ policy for reducing exposure to credit risk is to comply with the State’s Money Management Act. As noted above, the Gas Departments holds investments that are measured at fair value on a recurring basis. The Gas Departments categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The State of Utah Public Treasurer’s Investment Fund, as listed above, is valued using significant other observable inputs (Level 2 inputs).

Deposits and Investments, Continued. As of June 30, 20162017, Hildale City had the following investments, ratings, ratings and maturities: Fair Credit Weighted Average Investment Type Value Rating (1) Maturity (2) State of Utah Public Treasurer's Investment Fund $ 2,783,329 1,976,974 N/A 53.38 54.71 Total Fair Value $ 2,783,3291,976,974 (1) Ratings are provided where applicable to indicate associated credit risk. N/A indicates not applicable. (2) Interest rate risk is estimated using the weighted average days to maturity. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Gas Water Departments’ policy for managing its exposure to fair value loss arising from increasing interest rates is to comply with the State’s Money Management Act. Section 51-7-11 of the Act requires that the remaining term to maturity of investments may not exceed the period of availability of the funds to be invested. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The Gas Water Departments’ policy for reducing exposure to credit risk is to comply with the State’s Money Management Act. As noted above, the Gas Water Departments holds hold investments that are measured at fair value on a recurring basis. The Gas Water Departments categorizes its categorize their fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The State of Utah Public Treasurer’s Investment Fund, as listed above, is valued using significant other observable inputs (Level 2 inputs).