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<br />.Note 3: <br /> <br />. <br /> <br />. <br /> <br />CITY OF ARDENIDLLS, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER31jJ <br /> <br />DETAILED NOTES ON ALL FUNDS <br /> <br />Cashb 1 fth C' , funds b' d( I d) dlf~ n It '11Dr]!f~ <br />.a ances o. e Ity s are com me po~ e. D. l1"Wes~, t~~_:" :te~al a~t~ van~J,f .mvestmcnts <br />au~onzed by Mumesota stan;;es. Each fund's pomon oj1hiloot\lm ~~:,t~s ~y.ed' iJoe fm~lal srtements <br />as cash and cash eqUlvalents , For purposes ofldentifyij:1g ffielrit'k oAJjve=f-pub1~~~ t.he. mlianCjes e <br />categorized as follows: L . . ... .~ <br /> <br />Deposits <br /> <br />In accordance \\'ith Minnesota statutes and as authorized by the Council, the City maintains deposits at those <br />depository banks, all of which are members of the Federal Reserve System <br /> <br />Minnesota statutes require that all City deposits be protccted by insmancc, surety bond or collateral, The market <br />value of collateral pledged must equal 110 percent of the deposits Dot covered by insurance or bonds (140 percent in <br />the case of mortgage notes pledged), <br /> <br />Authorized collateral includes the legal investments described below, as well as certain fIrst mortgage notes, and <br />certain other State or local government obligations. Minnesota statutes require that securities pledged as collateral <br />be held in safekeeping by the City or in a fInancial institution other than that furnishing the colJateraL <br /> <br />At year end, the City has deposits with a bank and a book value of$3,291,713. Of the bank balance, $2,243,000 was <br />covered by federal depository insurance. The remaining balance of$I,048,713 was covered by collateral held by the <br />City's agent in the City's name. <br /> <br />Investments <br /> <br />Investments are carried at fair value. Investment and dividend income are recognized as revenue when earned. <br /> <br />Types of Investments <br /> <br />Credit <br />Quality! <br />Ratings (l) <br /> <br />Segmented <br />Time <br />Distribution (2) <br /> <br />Fair Value <br />and <br />Carrying <br />Amount <br /> <br />Nonpooled investments <br />Government Securities <br /> <br />$ 807,345 <br />2,656,410 <br /> <br />I to 3 yeaTS <br />more than 3 years <br /> <br />N!A <br />N!A <br /> <br />Tota] Government Securities <br /> <br />3,463,755 <br /> <br />Treasury strips <br /> <br />N/A <br /> <br />more than 3 years <br /> <br />724,879 <br /> <br />Total nonpooled investments <br /> <br />4,188,634 <br /> <br />Pooled investments <br />Minnesota Municipal Monet Market fund <br /> <br />P-I <br /> <br />less than 6 months <br /> <br />3,251,414 <br /> <br />Broker money market <br /> <br />N!A <br /> <br />less than 6 months <br /> <br />597,742 <br /> <br />Total pooled investments <br /> <br />3,849,156 <br /> <br />Total investments <br /> <br />$ 8,037,790 <br /> <br />L <br />2, <br />NiA <br /> <br />Ratings are provided by Moody's where applicable to indIcate associated crecht risk. <br />Interest rate risk is disclosed using the segmented time distribution method. <br />Indicated not applicable or available. <br /> <br />-30- <br />