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CITY OF ROSEVILLE, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2024
<br />collateralized at December 31, 2024.The CityÓs investment policy has no additional deposit policies
<br />addressing custodial credit risk.
<br />
<br />2. Deposits
<br />
<br />As of December 31, 2024 the CityÓs bank balances of $1,718,058 were covered by insurance or
<br />collateral pledged and held in the CityÓs name.
<br />
<br />3. Investments
<br />
<br />The City has the following investments at year-end December 31, 2024:
<br />
<br />Investment maturities
<br />Less than one
<br />Investment typeRating year1-5 years 6-10 years Over 10 YearsTotal
<br />A, A+, A1, AA-, AA, AA+,
<br />Municipal securities$ 5,968,518$ 8,500,27825,302,914$ $ 39,771,710-$
<br />Aa2, Aa3, AAA-, AAA
<br />U.S. Agency SecuritiesAA+ 938,310- - - 938,310
<br />Certificates of DepositNA 1,445,692 465,205 - - 1,910,897
<br />Money Market FundsAAAmmf 21,239,224 - - - 21,239,224
<br />Total$ 28,653,434$ 8,500,27826,706,429$ $ 63,860,141-$
<br />
<br />
<br />The City has the following recurring fair value measurements as of December 31, 2024:
<br />
<br /> Municipal securities and US Agency securities of $40,710,020 are valued using inputs that are
<br />based on quoted prices for similar assets or inputs that are observable, either directly or indirectly
<br />(Level 2 inputs)
<br />
<br /> The money market fund is an external investment pool. The fund seeks to maintain a constant
<br />net asset value (NAV) of $1 per share. The securities held by each fund are valued on the basis
<br />of amortized cost. Shares may be redeemed without penalty on any business day.
<br />
<br />Investments are subject to various risks, the following of which are considered the most significant:
<br />
<br />Credit risk Î Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
<br />holder of the investment. The CityÓs policy to minimize credit risk includes limiting investing funds
<br />to those allowable under Minnesota Statute 118A, annually appointing all financial institutions
<br />where investments are held, and diversifying the investment portfolio. This is measured by the
<br />assignment of a rating by a nationally recognized statistical rating organization.
<br />
<br />Custodial credit risk Î For investments, this is the risk that in the event of failure of the counterparty
<br />to an investment transaction the City would not be able to recover the value of its investments or
<br />collateral securities that are in the possession of an outside party. The CityÓs investment policy
<br />does not further address this risk, but the City typically limits its exposure by purchasing insured or
<br />registered investments, or by the control of who holds the securities.
<br />
<br />Concentration risk Î Concentration of credit risk is the risk of loss that may be attributed to the
<br />magnitude of a governmentÓs investment in a single issuer. The CityÓs investment policy does not
<br />limit the concentration of investments. At December 31, 2024, the City held 6.50% with New York
<br />NY G.O. and 6.45% with Anchor Bay, MI School District.
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