05-31-05 - Laserfiche WebLink

Home Browse Search

CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER31,2004 Note 2: STEW ARDSIDP, COMPLIANCE AND ACCOUNTABiliTY - CONTINUED B. Deficit Fund Equity The following fimds bad fund equity deficits at December 31, 2004: Economic Development Authority fimd of $454,660, and Community Service fimd of$14,870. The deficits will be eliminated through transfers from other funds and future revenue sources. Note 3: DETAILED NOTES ON ALL FUNDS A, Deposits aod Investments Deposits In accordance with Minnesota statutes and as authorized by the Council, the City maintains deposits at those depository banks, all of which are members of the Federal Reserve System. n . [] o [] o o Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). n Authorized collateral inc1ndes the legal investments descnbed below, as well as certain first mortgage notes, and certain other State or local government obligations, Minnesota statutes require that securities pledged as collateral [1 be held in safekeeping by the City or in a financial institution other than that furnishing the collateral, At year end, the City bas deposits with a bank and a book value of$4,149,678. Of the bank balance, $2,139,000 was covered by . federal depository insurance. The remaining balance of$2,010,679 was uninsured at year end, -1 Investments ~I $ 7,752,886 Ii II 174,879 2,181,452 , , $ 10.109,217 -; f l, Investments are categorized into these three categories of credit risk: (I) Insured orregistered, 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: Category 2 Carrying Amount! Fair Value 3 U,S. government securities $ $ $ 7,752,886 Investments not subject to categorization Broker market accounts Minoesota Money Markey Mutual Fund Total investments -24- f] u [J u ! \ .)