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<br />CITY OF CENTERVlLLE, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2004 <br /> <br />Note 3: DETAILED NOTES ON ALL FUNDS <br /> <br />A. Deposits and Investments <br /> <br />In accordance with 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 protected by insurance, surety bond, or colIateral. The market <br />value of collateral pledged must equal110% of the deposits not covered by insurance or bonds (140% in the case of <br />mortgage notes pledged). <br /> <br />Authorized collateral includes the legal investments described below, as welI 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 collateral. <br /> <br />At year eod, the City's carrying amount of deposits was $6,928,201 and the bank balance was $6,908,282. Of the <br />bank balance, $677, I 00 was covered by federal depository insurance or by colIateral held by the City's agent in the <br />City's name. The remaining balance of$6,23 1,182 was colIateralized with securities held by the pledging fInancial <br />institution's trust department or agent in the City's name. <br /> <br />Investments are categorized into these three categories of credit risk: <br /> <br />1. Insured or registered, or securities held by the City or its agent in the City's name. <br /> <br />2. Uninsured and unregistered, with securities held by the counterparty's trust department or agent in the <br />City's name. <br /> <br />3. Uninsured and unregistered, with securities held by the counterparty, or by its trust department or agent, but <br />not in the City's name. <br /> <br />At year end, the City's investment balances were as folIows: <br /> <br />I <br /> <br />Category <br />2 <br /> <br />3 <br /> <br />Reported! <br />Amount <br />Fair Value <br /> <br />U.S. Government Securities <br /> <br />$ 1,855,529 <br /> <br />$ <br /> <br />$ <br /> <br />$ 1,855,529 <br /> <br />Investments not subject to categorization <br />Broker money market accounts <br />4M Investment Pool <br /> <br />41,797 <br />5,113 <br /> <br />Total investments <br /> <br />$ I ,902.439 <br /> <br />Total cash and investments: <br /> <br />Carrying amount of deposits <br />Investments <br />Cash with fIscal agent <br />Petty cash <br /> <br />$ 6,928,20 I <br /> 1,902,439 <br /> 5,500 <br /> 350 <br />$ 8,836,490 <br /> <br />Total <br /> <br />-24- <br />