City of Port St . Lucie , Florida Community Redevelopment Agency Notes to the Financial Statements For the Year Ended September 30 , 2021
NOTE 3 . CASH AND INVESTMENTS ( CONTINUED )
B . INVESTMENTS ( CONTINUED )
The Florida local government investment pool balance consists of six governmental investment pools : Florida Cooperative Liquid Assets Securities System ( FLCLASS ), Florida Surplus Asset Fund ( FLSAFE ), Florida Public Assets for Liquidity Management ( FL PALM ), Florida Fixed Income Trust ( FLFIT ), Florida Short Term Asset Reserve ( FLSTAR ), and Florida Local Government Investment Trust . The pools are organized under Florida Statutes Section 163 , the Florida Interlocal Cooperation Act , by Florida public agencies for the purpose of operating an independent investment pool for location governments in Florida and administered by a Board of Trustees elected by the participants in the pool . FLCLASS and FLSAFE are operated in a manner consistent with SEC Rule 2a7 of the Investment Company Act of 1940 . Rule 2a7 allows SEC registered mutual funds to use amortized cost rather than fair value , to report net position used to compute share prices if certain conditions are met . Those conditions included restrictions on the types of investments held , restrictions on the term to maturity of individual investment and the dollar weighted average of the portfolio , requirement for portfolio diversification , and requirement of for divestiture considerations in the event of security downgrades and defaults and required actions if the fair value of the portfolio deviates from amortized cost by a specified amount . The fair value of the position in the pools is considered to be the same as the City ' s account balance ( amortized cost ) in the pool . The investment in FL PALM includes shares in the Term Series , which are purchased to mature at pre-determined maturity dates selected by the City . FL PALM shares are redeemable at fair value at least 7 days notice , less a premature redemption penalty .
Fair Value of Investments : The City ( including the CRA ) follows the provisions of GASB Statement 72 Fair Value Measurement and Application , which establishes a framework for measuring the fair value of investments in a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value . The three levels of the fair value hierarchy under GASB 72 are described below :
Level 1 - Investments reflect unadjusted quoted prices in active markets for identical assets .
Level 2 - Investments reflect prices that are based on inputs that are either directly or indirectly observable for an asset ( including quoted prices for similar assets ), which may include inputs in markets that are not considered to be active .
Level 3 - Investments reflect prices based upon unobservable inputs .
The table below represents all investments the CRA categorized in the fair value hierarchy .
Investments by fair value level Total Level 1 Level 2 Level 3 Money market funds $ 108,225
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