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I I CITY OF ROSEVILLE,MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 I I institution furnishing the collateral. The City's investment policy has no additional deposit addressing custodial credit risk. 1 2. Deposits At year-end, the carrying amount of the City's deposits was $14,605,176 while the balance on the I bank records was $14,590,700. At December 31, 2014, all deposits were covered by federal depository insurance, or by collateral held by the City's agent in the City's name. 3. Investments I The City has the following investments at year end December 31, 2014: IInvestment Maturities(in Years) Less Over Investment Type Rating Agency Than 1 1-5 6-10 10 Years Total IU.S.agency securities AA+ S&P $ - $2,418,676 $7,970,300 $22,158,571 $32,547,547 Repurchase Agreement - - - - 12,479,988 ITotal investments in cash and investment pool $0 $2,418,676 $7,970,300 $22,158.571 $45,027,535 Investments are subject to various risks, the following of which are considered the most Isignificant: Credit risk—This is the risk that an issuer or other counterparty to an investment will not fulfill its I obligations. Minnesota Statutes limit the City's investments to direct obligations or obligations guaranteed by the United States or its agencies; shares of investment companies registered under the Federal Investment Company Act of 1940 that receive the highest credit rating, are rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less; general obligations rated "A" or better; revenue obligations rated "AA" or better; general obligations of the Minnesota Housing Finance Agency rated "A" or better; bankers' acceptances of United States banks eligible for purchase by the IFederal Reserve System; commercial paper issued by Unite States corporations or their Canadian subsidiaries, rated of the highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less; Guaranteed Investment Contracts guaranteed by a IUnited States commercial bank, domestic branch of a foreign bank, or a United States insurance company, and with a credit quality in one of the top two highest categories; repurchase or reverse purchase agreements and securities lending agreements with financial institutions qualified as a I "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000 that are a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities Ibroker-dealers. The City's investment policy addresses credit risk beyond what is prescribed by State Statute. The City's investment policy restricts investments to only Repurchase Agreements with national or state charted banks, U.S. Treasury and U.S. Government Agencies. I 1 51