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NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED)
<br />B. Deposits
<br />In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks
<br />authorized by the City Council, including checking accounts and certificates of deposits.
<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 $81,220. At December 31, 2024, 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 />Fa it Va lue
<br />Credit Risk Measurements Inte rest Risk- Ma turity Du ra tion in Ye a is
<br />Investment Type Rating Agency Using Less Than 1 Ito 5 6 to 10 Total
<br />U.S. Tre a suries N/A N/A Leve12 $ 2,193,879 $ - $ $ 2,193,879
<br />MunicipalBonds A -AAA Moodys Leve12 $ 1,044,185 $ 8,311,254 $ 9,355,439
<br />MunicipalBonds A- AAA S&P Lcvc12 $ 2,089,910 $ 26,146,688 $ 2,211,245 30,447,843
<br />Negotiable Ceitificates ofDeposit N/A N/A Leve12 $ 491,894 $ 462,303 $ - 954,197
<br />Investmen1Pools
<br />Dreyfus Money Market Fund AAA S&P Lcvcll $ 17,520 $ - $ 17,520
<br />Minnesota Municipa !Money Market
<br />4MPlus Fund AAA S&P Amortized Cost $ 12,726,158 $ - $ 12,726,158
<br />Term Series N/R N/A Amortized Cost $ 16,000,000 $ - $ 16,000,000
<br />Tuve sco MoneyMarke [Fund AAA S&P NetAssetValue $ 3,853,972 .$ - $ 3,853,972
<br />UBS Select Prime InstitutionalFund AAA Moody's Net Asset Value $ 11,843,512 $ - $ 11,843,512
<br />Totallnvestments $ 87,392,520
<br />N/ANotApplicable
<br />N/R Not Rated
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