|
<br />NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
<br />
<br />The following is considered the most significant risk associated with deposits:
<br />
<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 />
<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 />
<br />At year end, the carrying amount of the City's deposits was $0 while the balance on the bank records
<br />was $15,526. At December 31, 2023, all deposits were fully covered by federal depository insurance,
<br />surety bonds, or by collateral held by the City’s agent in the City’s name.
<br />
<br />C. Investments
<br />
<br />The City has the following investments at year end:
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />Fa ir Va lue
<br />Measurements
<br />Investment Type Rating Agency Using Less Than 1 1 to 5 6 to 10 Total
<br />U.S. Agencies AAA Moody's Level 2 1,513,538$ 2,921,696$ -$ 4,435,234$
<br />U.S. Treasuries N/A N/A Level 2 2,570,479$ -$ -$ 2,570,479
<br />Municipal Bonds A-AAA Moodys Level 2 1,892,625$ 8,760,632$ 394,048$ 11,047,305
<br />Municipal Bonds A-AAA S&P Level 2 2,889,068$ 23,756,263$ 6,561,052$ 33,206,383
<br />Negotiable Certificates of Deposit N/A N/A Level 2 3,337,259$ 936,058$ -$ 4,273,317
<br />Investment Pools
<br />Dreyfus Money Market Fund AAA S&P Level 1 6,490$ -$ -$ 6,490
<br />Minnesota Municipal Money Market
<br /> 4M Plus Fund N/R N/A Amortized Cost 19,574,888$ -$ -$ 19,574,888
<br /> Term Series N/R N/A Amortized Cost 10,000,000$ -$ -$ 10,000,000
<br />Invesco Money Market Fund AAA S&P Net Asset Value 8,045,377$ -$ -$ 8,045,377
<br />UBS Select Prime Institutional Fund AAA Moody's Net Asset Value 10,948,083$ -$ -$ 10,948,083
<br /> Total Investments 104,107,556$
<br />N/A Not Applicable
<br />N/R Not Rated
<br />Credit Risk Inte re st Risk- Ma turity Dura tion in Ye a rs
<br />71
|