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NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED)
<br />
<br />B. Investments
<br />
<br />The City may also invest idle funds as authorized by Minnesota Statutes as follows: direct obligations or
<br />obligations guaranteed by the United States or its agencies; shares of investment companies registered
<br />under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one
<br />of the two highest rating categories by a statistical rating agency, and all of the investments have a final
<br />maturity of thirteen months or less; general obligations rated "A" or better; revenue obligations rated
<br />"AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better;
<br />bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System;
<br />commercial paper issued by United States corporations or their Canadian subsidiaries, rated of the highest
<br />quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less;
<br />Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a
<br />foreign bank, or a United States insurance company, and with a credit quality in one of the top two
<br />highest categories; repurchase or reverse purchase agreements and securities lending agreements with
<br />financial institutions qualified as a "depository" by the government entity, with banks that are members of
<br />the Federal Reserve System with capitalization exceeding $10,000,000, that are a primary reporting dealer
<br />in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities
<br />broker-dealers.
<br />
<br />The City's investments are categorized to give an indication of the level of custodial credit risk assumed
<br />at year-end. Category 1 includes investments that are insured or registered or for which the securities are
<br />held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered
<br />investments for which the securities are held by the counterparty's trust department or agent in the City's
<br />name. Category 3 includes uninsured and unregistered investments for which the securities are held by
<br />the counterparty or by its trust department or agent but not in the City's name.
<br />
<br />The certificates of deposit included in investments are negotiable and can be traded in a secondary
<br />market.
<br />
<br />Deposits and investment balances at December 31, 2004 are as follows:
<br />
<br />Custodial Credit Risk Category
<br />
<br /> 1
<br />
<br />$ 25,478,124
<br /> 9,834,508
<br />
<br />$ 35,312,632
<br />
<br /> 2 3 Carrying Value F~r Value
<br />
<br />$ - $ - $ 25,478,124 $ 25,478,124
<br /> - - 9,834,508 9,834,508
<br />
<br />$ - $ - 35,312,632 35,312,632
<br />
<br />U.S. government securities
<br />Negotiable certificates of deposit
<br />
<br />Investment pools
<br /> Unclassified
<br /> 4M Liquid Asset Fund
<br /> Mutual Funds
<br />
<br />541,161 541,161
<br />1,254,145 1,254,145
<br />
<br />Total investments
<br />
<br />37,107,938 $ 37,107,938
<br />
<br />Deposits
<br />Cash on hand
<br />
<br />5,273,391
<br /> 625
<br />
<br />Total cash and investments
<br />
<br />$ 42,381,954
<br />
<br />$ 39,959,031
<br /> 1,236,332
<br /> 1,186,591
<br />
<br />$ 42,381,954
<br />
<br />Cash is comprised of the following:
<br /> Cash and temporary investments - Statement of Net Assets
<br /> Restricted cash and investments for debt service - Statement of Net Assets
<br /> Cash and investments held by trustee - Statement of Fiduciary Net Assets
<br />
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