07-26-1999 Council Packet - Laserfiche WebLink

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CITY OF ORONO, MINNESOTA Notes to Financial Statements (continued) December 31,1998 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) At year-end, the carrying amount of the City ’s deposits was $1,341,094, while the balance on the bank records was $1,314,502. At December 31,1998, all deposits were insured or collateralized by securities held by the City ’s agent in the City ’s name. B. Cash on Hand Cash in the possession of the City, consisting of petty cash and change funds, at year-end totaled $360. C. Investments The City may also invest idle funds as authorized by Minnesota Statutes, as follows: direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 and receives the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less; general obligations rated "A" or better; revenue obligations rated "AA" or better, general obligations of the Minnesota Housing Finance Agency rate "A" or better; bankers’ acceptances of United States’ banks eligible for purchase by the Federal Reserve System; commercial paper issued by United States’ corporations or their Canadian subsidiaries, of the highest quality category by at lease two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a United States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repiuchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker-dealers. The City ’s investments are categorized below to give an indication of the level of custodial credit risk assumed at year-end. Category' 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City ’s name. Category 2 includes uninsured and unregistered investments for which the securities are held by the coimterparty ’s trust department or agent in the City ’s name. Category 3 includes uninsured and uitregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City ’s name. -35- I I I I I I 1 1 r }