01-24-2022 Council Packet - Laserfiche WebLink

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City of Orono, Minnesota Notes to the Financial Statements December 31, 2020 Note 3: Detailed Notes on All Funds (Continued) Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity. At year end, the City’s carrying amount of deposits was a negative $138,909 and the bank balance was $223,517. The bank balance was covered by federal depository insurance. Investments The Minnesota Municipal Money Market Fund (the 4M Fund) is regulated by Minnesota statutes and the Board of Directors of the League of Minnesota Cities and is a customized cash management and investment program for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a unique investment alternative designed to address the daily and long -term investment needs of Minnesota cities and other municipal entities. Allowable under Minnesota statutes, the 4M Fund is comprised of top quality, rated investments. The Minnesota Municipal Money Market Fund and broker money market investment pools operate in accordance with appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported value of the pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by contacting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240. At year end, the City’s investment balances were as follows: Credit Segmented Quality/Time Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs Broker Money Market Funds N/A less than 6 months 1,494,068$ 4M fund N/A less than 6 months 3,452,345 Non-pooled Investments at Fair Value Negotiable Certificates of Deposits N/A less than 1 year 4,196,292 -$ 4,196,292$ -$ Negotiable Certificates of Deposits N/A 1 to 3 years 1,265,097 - 1,265,097 - Negotiable Certificates of Deposits N/A more than 3 years 1,262,646 - 1,262,646 - Municipal Bonds AAA 1 to 3 years 526,095 - 526,095 - Municipal Bonds AAA more than 3 years 786,457 - 786,457 - Treasury Securities N/A less than 6 months 2,520,000 2,520,000 - - Total Investments 15,503,000$ 2,520,000$ 8,036,587$ -$ Types of Investments Fair Value Measurement Using (1) Ratings are provided by Standard & Poor’s where applicable to indicate associated credit risk. (2) Interest rate risk in disclosed using the segmented time distribution method. N/A Indicates not applicable or available.