My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
2016-04-27 CC Packet
Centerville
>
City Council
>
Agenda Packets
>
1996-2022
>
2016
>
2016-04-27 CC Packet
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
11/29/2017 8:43:19 AM
Creation date
4/22/2016 3:13:33 PM
Metadata
Jump to thumbnail
< previous set
next set >
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
277
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
CITY OF CENTERVILLE, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER 31, 2015 <br />Note 3: DETAILED NOTES ON ALL FUNDS <br />A. Deposits and investments <br />Deposits <br />Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits and <br />investments may not be returned or the City will not be able to recover collateral securities in the possession of an <br />outside party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits <br />at those depository banks, all of which are members of the Federal Reserve System. <br />Minnesota statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value <br />of collateral pledged must equal 110 percent of the deposits not covered by insurance, bonds, or irrevocable standby <br />letters of credit from Federal Home Loan Banks. <br />Authorized collateral in lieu of a corporate surety bond includes: <br />• United States government Treasury bills, Treasury notes, Treasury bonds; <br />• Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation <br />service available to the government entity; <br />• General obligation securities of any state or local government with taxing powers which is rated "A" or better <br />by a national bond rating service, or revenue obligation securities of any state or local government with taxing <br />powers which is rated "AA" or better by a national bond rating service; <br />• General obligation securities of a local government with taxing powers may be pledged as collateral against <br />funds deposited by that same local government entity; <br />• Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by <br />written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or <br />Standard & Poor's Corporation; and <br />• Time deposits that are fully insured by any federal agency. <br />Minnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve <br />Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or <br />controlled by the financial institution furnishing the collateral. The selection should be approved by the City. <br />At year end, the City's carrying amount of deposits was $3,192,172, and the bank balance was $3,228,496. Of the bank <br />balance, $500,000 was covered by federal depository insurance and the remaining balance was covered by collateral held <br />by the City's agent in the City's name. <br />-55- <br />
The URL can be used to link to this page
Your browser does not support the video tag.