Agenda - Council - 06/25/2024 - Laserfiche WebLink

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NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) Concentration risk — This is the risk associated with investing a significant portion of the City's investment (considered 5 percent or more) in the securities of a single issuer, excluding United States guaranteed investments (such as Treasuries), investment pools and mutual funds. The City's investment policies do not limit the concentration of investments. Interest rate risk — This is the risk of potential variability in the fair value of fixed rate investments resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the greater the risk). The City does not have an investment policy limiting the duration of investments. NOTE 3 — LEASE RECEIVABLE The City has entered into lease receivable agreements for cell tower rental space on city property. These leases are reported using an incremental borrowing rate of 3.25 percent with final maturities through fiscal 2032. During the current year, the City received principal and interest payments on these leases of $81,464. The City has entered into lease receivable agreements for rental space in city owned buildings and vacant land. These leases are reported using an incremental borrowing rate of 3.25 percent with final maturities through 2030. During the current year, the City received principal and interest payments on these leases of $261,988. Leasing assets to other entities is not a principal ongoing operation of the city. NOTE 4 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A. Short -Term Interfund Receivables/Payables Individual interfund due from and to other funds at year-end were as follows: Receivable Fund Nonmajor Govemmental Fund Economic Development Authority Special Revenue Fund Payable Fund Amount Major Govemmental Fund Tax Increment Special Revenue Fund This internal loan was utilized for cash flow purposes. $ 25,000 73