6.1. SR 06-06-2005 - Laserfiche WebLink

Home Browse Search

I I I I I I I I I I I I I I I I I I I CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 Note 3: DETAILED NOTES ON ALL FUNDS - CONTINUED Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. At year end, the City's carrying amount of deposits was $4,863,469 and the bank balance was $5,539,438. The bank balance was covered by federal depository insurance totaling $500,000 and securities held by the pledging [mancial institution's agent in the City's name totaling $5,029,438. The remaining $10,000 was not collateralized. The carrying amount of deposits for the HRA, a discretely presented component unit, was $117,916 and the bank balance was $117,595. The bank balance was covered by federal depository insurance. Investments Minnesota Statutes authorize the City to invest in the following: a. Direct obligations or obligations guaranteed by the United States or its agencies. b. Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. c. General obligations of the State of Minnesota or any of its municipalities. d. Bankers acceptances of United States Banks eligible for purchase by the Federal Reserve System. e. Commercial paper of the highest quality issued by United States corporations or their Canadian subsidiaries and maturing in 270 days or less. f. Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York or certain Minnesota securities broker-dealers. The City's investments are categorized to give an indication of the level of custodial credit risk assumed at year-end. Category I includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured and unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. The City's investment in the Minnesota Municipal Money Market Fund is valued at fair value and is the same as the value of the pool shares. 40