CCP 05-24-1999 - Laserfiche WebLink

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I I. I I I I I I I Ie I I I I I I I Ie I CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1998 Note 3: DETAILED NOTES ON ACCOUNTS - CONTINUED 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). Authorized collateral includes the legal investments described below, as well as certain frrst mortgage notes, and certain other State or local government obligations. Minnesota Statutes require that securities pledged as collateral be held 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 $1,219,503 and the bank balance was SI,309,505. The bank balance was covered by federal depository insurance. Investments Investments are categorized into these three categories of credit risk: I. 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 City's name. 3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent but not in the City's name. At year end, the City's investment balances were as follows: Categorv 2 Canying and Faiir Value 3 U.S. Government Securities $ 6.020.770 $ - $ $ 6,020,770 Investments not subjected to categorization: Broker money markets 7.514.575 $ 13.535.345 Total investments A reconciliation of cash and temporary investments as shown on the Combined Balance Sheet for the City follows: Total deposits Investments Petty cash $ 1,219,503 13,535,345 325 Total cash and temporary investments $ 14.755.173 B. Loans Receivable In 1997, 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 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 of 3%. If Cardiac Pacemakers, Inc. meets certain employment criteria, the loan will be forgiven. The balance outstanding at year end is :$300,000. In 1998, the City entered into another agreement with Cardiac Pacemaker, Inc. and the MNDTED. This agreement provides a $300,000 loan to Cardiac pacemaker, Inc. That has a $200,000 forgivable component and a $100,000 loan component at 3% payable over 60 months. The forgivable component remains forgivahle if Cardiac Pacemakers, Inc. meets certain employment criteria over a five year period beginning September 1998 through August 2003. The outstanding balance at year end for the forgivable component is $200,000 and for the loan component is $93,789. -16-