2016 05-17 CC PACKET - Laserfiche WebLink

Home

CITY OF GEM LAKE,. MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DEC EMBER. 31,: 2016. NOTE 2 DEPOSITS AND INVESTMENTS A. Deposits The City maintains a cash and investment: pool that is available for use by all funds. Each fund.type's portion of this pool is displayed oh.the statement of net position and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes, the City maintains. deposits at €ihancial institutions which are authorized by the City Council, Custodial Credit Risk — Custodial credit risk for deposits is the risk that ih the event of a bank failure, the City's deposits may not be returned to it. The City does not have 'a deposit policy for custodial credit risk .and follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged. must equal 110% of the deposits not covered by insurance or corporate: surety bands. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of a U.S, government agency; general obligations of a state or local government rated "A" or better, revenue obligations of a state or local. government. rated "AA" or better;,irrevocable standby letter of credit issued by a Federal Home Loan Bank, and time deposits 'insured by a federal agency. Minnesota Statutes require securities pledged as'"collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or in an account at a trust department of a commercial bank or other financial.. institution not owned or controlled by the depository. At December' 31, 2015, the..carrying, airiountf of the City's deposits were $156,565,. the entire amount of which was insured'or collateralized. At [December 31, 2Q.1.5; the: City`afso' had funds deposited in an escrow account per the 2015A refunding boilds"escrew agreement: This cash with fiscal agent totaled $740,503 at yearend. (21)