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CITY OF CBNTERVILLE, MlNNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2002 Note 3: DET AlLED NOTES ON ALL FUNDS AND ACCOUNT GROUPS - CONTINUED 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. Minnesota statutes require that aU 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). Authorized collateral includes the legal invesbnents described below, as well as certain first mortgage notes, and certain other State or local govenunent obligations. Minnesota statutes require that securities pledged as collateral be held in safekeeping by the City or in a [mancial 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 OT registered, or securities held by the Ciry or its agent in the City' 5 name. 2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the City's name. 3. Uninsured and umegistered, 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: Catee.oIV 2 3 Carrying and Fair Value U.S. Government Securities $ 889 326 $ $ - $ 889,326 Invesbnents not subjected to risk categorization: Broker money market funds Minnesota Municipal Money Market fund 8,524 1.050.572 Total investments $ 1 948 422