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City of Orono, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2019
<br />Note 3: Detailed Notes on All Funds (Continued)
<br />Investments
<br />The Minnesota Municipal Money Market Fund (the 4M Fund) is regulated by Minnesota statutes and the Board of
<br />Directors of the League of Minnesota Cities and is a customized cash management and investment program for
<br />Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a
<br />unique investment alternative designed to address the daily and long-term investment needs of Minnesota cities and other
<br />municipal entities. Allowable under Minnesota statutes, the 4M Fund is comprised of top quality, rated investments.
<br />The Minnesota Municipal Money Market Fund and broker money market investment pools operate in accordance with
<br />appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and
<br />Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported
<br />value of the pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by
<br />contacting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN
<br />55402-1240.
<br />At year end, the City’s investment balances were as follows:
<br />Credit Segmented
<br />Quality/ Time
<br />Ratings (1) Distribution (2) Amount Level 1 Level 2 Level 3
<br />Pooled Investments at Amortized Costs
<br />Broker Money Market Funds N/A less than 6 months 1,470,577$
<br />4M fund N/A less than 6 months 2,305,072
<br />Non-pooled Investments at Fair Value
<br />Negotiable Certificates of Deposits N/A less than 6 months 2,583,547 -$ 2,583,547$ -$
<br />Negotiable Certificates of Deposits N/A 1 to 3 years 3,951,988 - 3,951,988 -
<br />Negotiable Certificates of Deposits N/A more than 3 years 2,727,685 - 2,727,685 -
<br />Municipal Bonds AAA more than 3 years 1,348,394 - 1,348,394 -
<br />Total Investments 14,387,263$ -$ 10,611,614$ -$
<br />Types of Investments
<br />Fair Value Measurement Using
<br />(1) Ratings are provided by Standard & Poor’s where applicable to indicate associated credit risk.
<br />(2) Interest rate risk in disclosed using the segmented time distribution method.
<br />N/A Indicates not applicable or available.
<br />Ratings (1) Distribution (2)ings (1) Distribution (2)Amount Level 1 Level 2 Level 3Level 1 Level 2 Level 3
<br />Pooled Investments at Amortized CostsPooled Investments at Amortized Costs
<br />Broker Money Market FundsBroker Money Market Funds N/AN/A less than 6 months 1,470,577$
<br />N/A less than 6 monthsless than 6 months 2,305,0722,305,072
<br />Non-pooled Investments at Fair ValueNon-pooled Investments at Fair Value
<br />iable Certificates of Depositsiable Certificates of Deposits N/A less than 6 monthsless than 6 months 2,583,5472,583,547 -$2,583,547$$
<br />Negotiable Certificates of DepositsNegotiable Certificates of Deposits N/A 1 to 3 years1 to 3 years 3,951,9883,951,988 -3,951,988
<br />Negotiable Certificates of DepositsNegotiable Certificates of Deposits N/A more than 3 yearsmore than 3 years 2,727,6852,727,685 -2,727,685
<br />AAAAAA more than 3 yearsmore than 3 years 1,348,3941,348,394 -1,348,3941,348,394
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