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City of Orono, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2022
<br />Note 3: Detailed Notes on All Funds (Continued)
<br />Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve
<br />Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or
<br />controlled by the financial institution furnishing the collateral. The selection should be approved by the government entity.
<br />At year end, the City’s carrying amount of deposits was $65,450 and the bank balance was $211,048. The bank balance
<br />was covered by federal depository insurance.
<br />Investments
<br />The Minnesota Municipal Money Market Fund (the 4M Fund) is regulated by Minnesota statutes and the Board of
<br />Directors of the League of Minnesota Cities and is a customized cash management and investment program for
<br />Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the 4M Fund is a
<br />unique investment alternative designed to address the daily and long -term investment needs of Minnesota cities and
<br />other
<br />municipal entities. Allowable under Minnesota statutes, the 4M Fund is comprised of top quality, rated investments.
<br />The Minnesota Municipal Money Market Fund and broker money market investment pools operate in accordance with
<br />appropriate State laws and regulations. The 4M Fund is an external investment pool not registered with the Securities and
<br />Exchange Commission (SEC); however, it follows the same regulatory rules of the SEC under rule 2a7. The reported
<br />value of the pool is the same as the fair value of the pool share. Financial statements of the 4M Fund can be obtained by
<br />contacting RBC Global Asset Management at 100 South Fifth Street, Suite 2300, Minneapolis, MN 55402-1240.
<br />At year end, the City’s investment balances were as follows:
<br />Credit Segmented
<br />Quality/Time
<br />Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3
<br />Pooled Investments at Amortized Costs
<br />Broker Money Market Funds N/A less than 6 months 61,631$
<br />4M fund N/A less than 6 months 19,469,659
<br />Non-pooled Investments at Fair Value
<br />Negotiable Certificates of Deposits N/A less than 1 year 1,690,214 -$ 1,690,214$ -$
<br />Negotiable Certificates of Deposits N/A 1 to 3 years 3,016,775 - 3,016,775 -
<br />Negotiable Certificates of Deposits N/A more than 3 years 1,757,518 - 1,757,518 -
<br />Government Agency Securities AA+less than year 1,061,410 - 1,061,410 -
<br />Municipal Bonds AAA less than 1 year 1,402,758 - 1,402,758 -
<br />Municipal Bonds AAA 1 to 3 years 1,281,670 - 1,281,670 -
<br />Municipal Bonds AAA more than 3 years 2,361,725 - 2,361,725 -
<br />Total Investments 32,103,360$ -$ 12,572,070$ -$
<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.
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