Laserfiche WebLink
City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2024 <br /> <br />Note 3: Detailed Notes on All Funds (Continued) <br />Concentration of Credit Risk - Concentration of credit risk is defined as positions of five percent (5 percent) or <br />more in the securities of a single issuer. <br />to 35% of a specific type. As of December 31, 2024, the following issuer exceeded 5 percent of the Ci <br />investments: MN Municipal Money Markets (4M) (22 percent). <br /> <br />Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City's <br />deposits may not be returned to it. Minnesota statutes and the City's investment policy states that in order to <br />provide a level of security for all funds, the collateralization level will be 110 percent of market value not covered <br />by insurance. <br />and must have a minimum capital and surplus of $10,000,000 and a net worth to asset ratio minimum of 5 <br />percent Bridgewater Bank. As of December 31, 2024, all of the <br />City's bank balance was covered by federal depository insurance or by perfected collateral held by the City's agent <br />in the City's name. <br /> <br />Custodial Credit Risk - Investments. For an investment, this is the risk that, in the event of the failure of the <br />counterparty, the City will not be able to recover the value of its investments or collateral securities that are in <br />possession of an outside party. As of December 31, 2024, all securities were held by the City or its agent in the <br />City's name. The City typically limits its exposure by purchasing insured or registered investments, or by the <br />control of who holds the securities. City investment policies require that security/broker/dealers be restricted to <br />those regulated by the Securities and Exchange Commission, have a minimum capital of $40,000,000 and may <br />investments with a specific dealer to 30 percent of the investment portfolio. <br />A reconciliation of cash and temporary investments as shown on the statement of net position for the City follows: <br />Carrying Amount of Deposits 791,949$ <br />Investments 16,899,875 <br />Total 17,691,824$ <br />As Reported on the Financial Statements <br />Statement of net position <br />Cash and temporary investments 17,466,565$ <br />Cash held with fiscal agent 225,259 <br />Total 17,691,824$ <br /> <br />65 92