CCP 06-08-1998 - Laserfiche WebLink

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I CITY OF ARDEN HILLS, MINNESOTA I NOTES TO FINANCIAL STATEMENTS DECEMBER 31,1997 . Note 3: DETAILED NOTES ON ACCOUNTS - CONTINUED I Minnesota Statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). I Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other State or local government obligations, Minnesota Statutes require that securities pledged as I collateral be beld in safekeeping by the City or in a financial institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $621,036 and the bank balance was $659,30 I. The bank balance was covered by federal depository insurance. I Investments Investments are categorized into these three categories of credit risk: I 1. Insured or registered, or securities held by the City or its agent in the City's name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the I City's name. 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent I but not in the City's name. At year endl the City's investment balances were as follows: I . Category Carrying Market 1 2 3 Amount Value U.S. Government Securities $ 6388,278 $ $ $ 6,388,278 $ 6,639,987 I Investments not subjected to categorization: Broker money markets 4.119.741 4.119,741 I Total investments $ 10,508,019 $10,759.728 I A reconciliation of cash and temporary investments as shown on the Combined Balance Sheet for the City follows: I Total deposits $ 621,036 Investments 10,508,019 Petty cash 325 I Total cash and temporary investments $ 1 1.129380 B. Loans Receivable I The City entered into an agreement with Cardiac Pacemakers, Inc. and the Minnesota Department of Trade and Economic Development (MNDTED). The agreement with the MNDTED is for a $300,000 Minnesota I Investment Fund Grant that will provide funds for a forgivable loan to Cardiac Pacemakers, Inc. The loan is deferred over five years through August 12, 2001 at interest of3%. If Cardiac Pacemakers, Inc, meets certain employment criteria, the loan will be forgiven, I . I -15-