2015 CAFR - Laserfiche WebLink

Home

CITY OF ROSEVILLE, MINNESOTA NOTES TO FINANClAL STATEMENTS December 31, 2015 In accordance with applicable Minnesota Statutes, the Ciry maintains deposits at depository banlcs authorized by the Ciry Council, including checking accounts and certificates of deposits. The following is considered the most significant rislc associated with deposits: Custodial credit risk — In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may be lost. Minnesota Statutes require that all deposits be protected by federal deposit insurance, corporate surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by federal deposit insurance or corporate surety bonds. Authorized collateral includes treasLuy bills, notes, and bonds; issues of U.S. government agencies; general obligations rated "A" or better; revenue obligations rated "AA" or better; irrevocable standard letters of credit issued by the Federal Home Loan Bank; and certificates of deposit. Minnesota Statutes require that 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 that is not owned or controlled by the financial institution furnishing the collateraL The City's investment policy has no additional deposit addressing custodial credit risk. 2. Deposits At year-end, the carrying amount of the Ciry's deposits was $21,118,297 while the balance on the bank records was $21,125,369. At December 31, 2015, all deposits were covered by federal depository insurance, or by collateral held by the Ciry's agent in the City's name. 3. Investments The City has the following investments at year end December 31, 2015: InvestmentMaturities (inYears) Less Over Investu�ent Type Rating AgenCy Than 1 1-5 6-10 10 Yeats Total U.S. agency securities AA+ S&P $ - $9,399,220 $10,004,977 $17,004,198 $36,408,395 Total investments a� cash and investment pool $0 $9,399,220 $1Q004,977 $17,004,198 $�6,408,395 Investments are subject to various risks, the following of which are considered the most significant: Credit risk — This is the risk that an issuer or other counterparty to an investment will not ful�ll its 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" ar better; banlcers' acceptances of United States banks eligible for purchase by the Federal Reserve System; commercial paper issued by Unite States corporations or their Canadian 52