2003-03-26 CC Packet - Laserfiche WebLink

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CITY OF CENTERvnLE, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2002 .Note 3: DETAILED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED Deposits I. In accordance with Minnesota statutes and as authorized by the Council, the City P'UlintainR deposits at those depository banks, all of which are members of the Federal Reserve System. Minnesota statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equa1110 percent of the deposits not covered by insurance or bonds (140 percent in the case of mortgage notes pledged). Authorized collateral includes the legal investments descn"bed below, as well as certain first 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 $4,913,340 and the bank balance was $5,031,318. The bank balance was covered by federal depository insurance totaling $500,000. The remaining balance of $4,531,318 was covered by collateral. Investments Investments are categorized into these three categories of credit risk: 1. Insured or registered, or securities held by the City or its agent in the City's name. I : 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: 1 Category 2 3 Carrying and Fair Value ~. . U.S. Government Securities $ 889.326 $ - $ - $ 889,326 . . ., Investments not subjected to risk categorization:. Broker money market funds Minnesota Municipal Money Market fund 8,524 1.050.572 Total investments $ 1.948.422 '. -16- /'