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<br />NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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<br />U. Change in Accounting Principle
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<br />During the year ended December 31, 2022, the City implemented GASB Statement No. 87, Leases. This
<br />statement included major changes in recognition of certain lease assets and liabilities for leases that
<br />previously were classified as operating leases and recognized as inflows of resources or outflows of
<br />resources based on the payment provisions of the contract. It establishes a single model for lease
<br />accounting based on the foundational principle that leases are financings of the right -to-use an underlying
<br />asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use
<br />lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.
<br />Certain amounts necessary to fully restate fiscal year 2021 financial information are not determinable;
<br />therefore, prior year comparative amounts have not been restated. The implementation of this new GASB
<br />statement in the current year resulted in the City reporting a new lease receivable and de ferred inflows of
<br />resources, but did not require a restatement of net position in the current year. See Note 3 for additional
<br />details on this change in the current year.
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<br />NOTE 2 – DEPOSITS AND INVESTMENTS
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<br />A. Components of Cash and Investments
<br />
<br />The City had the following cash and investments at year-end:
<br />
<br />Fair Value
<br />Measurements Less Than 1 to 5 6 to 10
<br />Investment Type Rating Agency Using 1 Year Years Years Total
<br />U.S. government treasuries N/A N/A Level 2 –$ 744,823$ –$ 744,823$
<br />U.S. government agency securities
<br />Federal Home Loan Bank AA S&P Level 2 – 864,930 1,085,258 1,950,188
<br />Federal Farm Credit Bank AA S&P Level 2 – 273,558 607,542 881,100
<br />Municipal bonds AAA S&P Level 2 – 220,250 712,037 932,287
<br />Municipal bonds AAA Moody’s Level 2 – 221,615 – 221,615
<br />Municipal bonds AA S&P Level 2 – 1,024,674 2,501,663 3,526,337
<br />Municipal bonds AA Moody’s Level 2 – 961,569 833,733 1,795,302
<br />Municipal bonds A Moody’s Level 2 – 500,157 – 500,157
<br />Negotiable certificates of deposit N/R N/A Level 2 – 2,368,886 237,969 2,606,855
<br />Investment pools/mutual funds
<br />4M Fund N/R N/A N/A 4,327,606 – – 4,327,606
<br />4M Term Series N/R N/A N/A 1,000,000 – – 1,000,000
<br />Wells Fargo Money Market Advantage AAA S&P Level 1 5,259 – – 5,259
<br />Total investments 5,332,865$ 7,180,462$ 5,978,202$ 18,491,529
<br />Petty cash 500
<br />Total cash and investments 18,492,029$
<br />N/R – Not Rated
<br />N/A – Not Applicable
<br />Interest Risk –
<br />Maturity Duration in Years
<br />Credit Risk
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