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City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2024 <br /> <br />Note 1: Summary of Significant Accounting Policies (Continued) <br /> <br />D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Net Position/Fund Balance <br />Deposits and Investments <br />Cash balances from all funds are combined and invested to the extent available in short term investments. Earnings from <br />the pooled investments are allocated to the individual funds based on the average monthly cash and investment balances <br />of the respective funds. The City s cash and cash equivalents are considered to be cash on hand, demand deposits and <br />short-term investments. -wide cash and temporary investments pool is <br />considered to be cash and cash equivalents for purposes of the Statement of Cash Flows. <br />Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other <br />authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each of <br />the funds. <br />The City may also invest idle funds as authorized by Minnesota statutes, as follows: <br /> <br />1. Direct obligations or obligations guaranteed by the United States or its agencies. <br /> <br />2. Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the <br />highest credit rating, rated in one of the two highest rating categories by a statistical rating agency, and have a <br />final maturity of thirteen months or less. <br /> <br />3. General <br /> <br /> <br />4. <br /> <br />5.Obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest <br />category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to statute <br />section 126C.55. <br /> <br />6. <br /> <br />7. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality <br />category by at least two nationally recognized rating agencies, and maturing in 270 days or less. <br /> <br />8. Repurchase or reverse repurchase agreements and securities lending agreements with financial institutions <br />with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal <br />Reserve Bank of New York, or certain Minnesota securities broker-dealers. <br /> <br />9. Guaranteed <br />branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt <br />obligations were rated in one of the top two rating categories by a nationally recognized rating agency. <br /> <br />The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted <br />accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 <br />inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level <br />3 inputs are significant unobservable inputs. <br /> <br />56 83