2013 06-19 CCP - Laserfiche WebLink

Home

CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2012 NOTE 2 DEPOSITS AND INVESTMENTS (CONTINUED) r� B. Investments (Continued) Interest Rate Risk (Continued) r 1 12 Months 13 to 24 25 to 60 More than IType Total or Less Months Months 60 Months Build America Bonds - Shoreview $ 171,867 $ $ - $ $ 171,867 Negotiable Certificates of Deposit 525,820 - 140,000 344,512 41,308 Wells Fargo Prime Investment Fund 257,781 257,781 Total $ 955,468 $ 257,781 $ 140,000 $ 484,512 $ 213,175 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a -1 nationally recognized statistical rating organization. The City's investment policy doesn't Jspecifically address credit risk. The following chart summarizes year-end ratings for the City's investments as rated by Moody's Investors Services: 1 Credit J Type Quality Rating Amount Government Money Market Mutual Funds NR $ 257,781 Build America Bonds AAA 171,867 Negotiable Certificates of Deposit: GE Capital Bank CD NR 244,458 Goldman Sachs Bank CD NR 141,362 Safra National Bank CD NR 140,000 Total Negotiable Certificates of Deposits 525.820 i Total $ 955,468 NR = Not Rated Concentration of Credit Risk The City places no limit on the amount that the City may invest in any one issuer. The following is a list of investments which individually comprise more than 5% of the City's total investments: Type Amount Percentage Government Money Market Mutual Funds $257,781 26.98% Build America Bonds - Shoreview 171,867 17.99% Negotiable Certificates of Deposit 525.820 55.03% Total $ 955,468 I (25) J