Laserfiche WebLink
CITY OF ELK RIVER, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 2014 <br />Note 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY — CONTINUED <br />B. Deficit Fund Equity <br />The following funds had deficit fund balances at December 31, 2014: <br />Primary Government: <br />TIF Districts - major capital projects fund $ 1,2505359 <br />Park Dedication - capital projects fund $ 476,669 <br />The City plans to eliminate these deficits through future park dedication and tax increment fund revenues. <br />Note 3: DETAILED NOTES ON ALL FUNDS <br />A. Deposits and Investments <br />Deposits <br />Custodial credit risk for deposits is the risk that in the event of a bank failure, the city's deposits may not be returned or <br />the city will not be able to recover collateral securities in the possession of an outside party. In accordance with <br />Minnesota statutes, the city maintains deposits at the depository banks authorized by the City Council, all of which are <br />members of the Federal Reserve System. Minnesota Statutes require that all city deposits be protected by insurance, <br />surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by <br />insurance or bonds. Authorized collateral includes the legal investments as prescribed by Minnesota statutes, as well as <br />certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that <br />securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that <br />furnishing the collateral. <br />At year end, the city's carrying amount of deposits was $13,851,336 and the bank balance was $13,890,613. The bank <br />balance was covered by federal depository insurance totaling $1,250,898 and the remaining balance was covered by <br />securities held by the pledging financial institution's agent in the city's name. <br />The carrying amount of deposits for the HRA, a discretely presented component unit, was $1,176,709 and the bank <br />balance was $1,176,709. The bank balance was covered by federal depository insurance and securities held by the <br />pledging financial institution's agent in the HRA's name. <br />Investments <br />Minnesota Statutes and the <br />city's <br />investment policy authorize the city to <br />invest in the following <br />a. Direct obligations or obligations guaranteed by the United States or its agencies. <br />b. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only <br />investments are in securities described in (a) above. <br />c. General obligations of the State of Minnesota or any of its municipalities. <br />d. Bankers acceptances of United States Banks eligible for purchase by the Federal Reserve System. <br />e. Commercial paper of the highest quality issued by United States corporations or their Canadian subsidiaries and <br />maturing in 270 days or less. <br />MA <br />