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NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) <br />Concentration Risk — This is the risk associated with investing a significant portion of the City's <br />investments (considered 5.0 percent or more) in the securities of a single issuer, excluding <br />U.S. guaranteed investments (such as treasuries), investment pools, and mutual funds. The City's <br />investment policy states that no more than 5.0 percent of the overall portfolio may be invested in the <br />securities of a single issuer, except for the securities of the United States government, or an external <br />investment pool. The following is a list of investments, which individually comprise more than <br />5.0 percent of the City's total investments: <br />Federal Home Loan Mortgage Corporation <br />27.5% <br />Federal National Mortgage Association <br />5.8% <br />Hartford County, CT <br />9.4% <br />JP Morgan Chase Bank <br />9.1 % <br />Madison Borough, NJ <br />13.6% <br />Morgan Stanley Bank <br />15.2% <br />New York State Dormitory Authority <br />8.8% <br />New York City Transit <br />8.8% <br />Interest Rate Risk — This is the risk of potential variability in the fair value of fixed rate investments <br />resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the <br />greater the risk). The City's investment policy does not further address interest rate risk. <br />NOTE 3 — CAPITAL ASSETS <br />Capital asset activity for the year ended December 31, 2025 was as follows: <br />A. Changes in Capital Assets Used in Governmental Activities <br />Capital assets, not depreciated <br />Land <br />Capital assets, depreciated <br />Buildings <br />Office equipment <br />Infrastructure <br />Total capital assets, depreciated <br />Less accumulated depreciation for <br />Buildings <br />Office equipment <br />Infrastructure <br />Total accumulated depreciation <br />Net capital assets, depreciated <br />Net capital assets <br />Balance - Transfers and <br />Beginning Completed Balance - <br />of Year Additions Deletions Construction End of Year <br />2,500 $ - $ - $ - $ 2,500 <br />914,253 13,975 <br />95,005 - <br />1,916,854 - <br />2,926,112 13,975 <br />- 928,228 <br />95,005 <br />- 1.916,854 <br />2,940,087 <br />(384,559) (24,834) - <br />- (409,393) <br />(20,595) (8,179) - <br />- (28,774) <br />(980,725) (79,268) - <br />- (1,059,993) <br />(1,385,879) (112,281) - <br />- (1,498,160) <br />1.540.233 (98,306) - - 1,441,927 <br />$ 1,542,733 $ (98,306) S - $ - $ 1,444,427 <br />-27- <br />