|
NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
<br />The following is considered the most significant risk associated with deposits:
<br />Custodial credit risk — In the case of deposits, this is the risk that in the event of a bank failure, the
<br />City's deposits may be lost.
<br />Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety
<br />bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered
<br />by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasury bills,
<br />notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better; revenue
<br />obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan
<br />Bank; and certificates of deposit. Minnesota Statutes require that securities pledged as collateral be
<br />held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust
<br />department of a commercial bank or other financial institution that is not owned or controlled by the
<br />financial institution furnishing the collateral. The City has no additional deposit policies addressing
<br />custodial credit risk.
<br />At year end, the carrying amount of the City's deposits was $0 while the balance on the bank records
<br />was $15,526. At December 31, 2023, all deposits were fully covered by federal depository insurance,
<br />surety bonds, or by collateral held by the City's agent in the City's name.
<br />C. Investments
<br />The City has the following investments at year end:
<br />FairValue
<br />Credit Risk Me asurements Interest Risk -Maturity Du ration in Years
<br />Investment Type Rating Agency Using Less Than 1 lto 5 6 to 10 Total
<br />U.S.Agencies AAA Moody's Leve12 $ 1,513,538 $ 2,921,696 $ $ 4,435,234
<br />U.S. Treasuries N/A N/A Leve12 $ 2,570,479 $ $ - 2,570,479
<br />MunicipalBonds A-AAAMoodys Leve12 $ 1,892,625 $ 8,760,632 $ 394,048 11,047,305
<br />MunicipalBonds A-AAAS&P Leve12 $ 2,889,068 $ 23,756,263 $ 6,561,052 33,206,383
<br />Negotiable Certificates ofDeposit N/A N/A Leve12 $ 3,337,259 $ 936,058 $ - 4,273,317
<br />Investment Pools
<br />Dreyfus Money Market Fund AAA S&P Levell $ 6,490 $ - $ - 6,490
<br />Minnesota MunicipalMoneyMarket
<br />4MPlus Fund N/R N/A Amortized Cost $ 19,574,888 $ - $ - 19,574,888
<br />Tenn Series N/R N/A Amortized Cost $ 10,000,000 $ - $ - 10,000,000
<br />lnvescoMoneyMarketFund AAA S&P NetAssetValue $ 8,045,377 $ - $ - 8,045,377
<br />UBS Select Prime lnstitutionalFund AAA Moody's Net Asset Value $ 10,948,083 $ - $ - 10,948,083
<br />Totallnvestments $ 104,107,556
<br />N/ANotApplicable
<br />N/RNotRated
<br />71
<br />
|