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NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) <br />Concentration risk — This is the risk associated with investing a significant portion of the City's <br />investment (considered 5 percent or more) in the securities of a single issuer, excluding United States <br />guaranteed investments (such as Treasuries), investment pools and mutual funds. The City's <br />investment policies do not limit the concentration of investments. <br />Interest rate risk — This is the risk of potential variability in the fair value of fixed rate investments <br />resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the <br />greater the risk). The City does not have an investment policy limiting the duration of investments. <br />NOTE 3 — LEASE RECEIVABLE <br />The City has entered into lease receivable agreements for cell tower rental space on city property. These <br />leases are reported using an incremental borrowing rate of 3.25 percent with final maturities through fiscal <br />2032. During the current year, the City received principal and interest payments on these leases of $82,909. <br />The City has entered into lease receivable agreements for rental space in city owned buildings and vacant <br />land. These leases are reported using an incremental borrowing rate of 3.25 percent with final maturities <br />through 2040. During the current year, the City received principal and interest payments on these leases of <br />$301,190.page 27 <br />Leasing assets to other entities is not a principal ongoing operation of the city. <br />NOTE 4 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS <br />A. Advances To and From Other Funds <br />Individual interfund advances to and from other funds at year-end were as follows: <br />Receivable fund <br />Payable Fund <br />Tax <br />Tncrernent <br />Special Nonnrajor <br />Revenue Governmental <br />Fund Funds <br />Nonnrajor Governmental Funds <br />Water Utility Enterprise Fund <br />Sewer Utility Enterprise Fund <br />Street Light Utility Enterprise Fund <br />Storm Water Utility Enterprise Fund <br />Total <br />$ 1,492,000 $ <br />348,000 <br />21.000 <br />48,892 <br />365,000 <br />178,6%7 <br />Total <br />$ 1,492,000 <br />526,687 <br />21,000 <br />48,892 <br />365,000 <br />$ 2,274,892 $ 178,687 $ 2,453,579 <br />The Tax Increment Fund advance to other funds of $2,274,892 was used to finance improvements in the <br />COR. All funds are to be repaid by 2038. The $178,687 is to internally finance a facility loan. The Water <br />Utility Fund is to be repaid by 2028 with a stated rate of interest of 2%. <br />73 <br />