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NOTE 3
<br />CITY OF ELK RIVER
<br />NOTES TO BASIC FINANCIAL STATEMENTS
<br />DECEMBER 31, 2019
<br />DEPOSITS AND INVESTMENTS (CONTINUED)
<br />C. Investments (Continued)
<br />The City has the following investments at year-end:
<br />Primary
<br />Government
<br />Investments Measured at Fair Value Fair Value
<br />Negotiable Certificates of Deposit $ 12,561,268
<br />Federal Home Loan Bank 1,327,779
<br />Federal National Mortgage Association 1,501,680
<br />Federal Farm Credit Bank Bond 500,375
<br />Municipal Bonds 19,205,047
<br />Total Investments Measured at Fair Value $ 35,096,149
<br />Investments Measured at Amortized Cost Amortized Cost
<br />UBS Select Prime Institutional Money Market $ 31,921,263
<br />Minnesota Municipal Money Market (4M Fund) 4,999,942
<br />Other Money Market Funds 32,846
<br />Total Investments Measured at Amortized Cost $ 36,954,051
<br />Interest Rate Risk — This is the risk of potential variability in the fair value of fixed rate
<br />investments resulting from changes in interest rates (the longer the period for which an
<br />interest rate is fixed, the greater the risk). The City's investment policy uses
<br />diversification of maturity dates as a means of managing exposure to fair value by
<br />stating that no more than 30% of the City's investments may extend beyond a five-year
<br />maturity.
<br />Credit Risk — This is the risk that an issuer or other counterparty to an investment will
<br />not fulfill its obligations. Minnesota Statutes limit the City's investments in certain types
<br />of investments. The City's investment policy does not further limit the ratings of their
<br />investments.
<br />A schedule of the maturities and ratings of the City's investments as of December 31,
<br />2019 is as follows:
<br />Maturity and Rating Breakdown of Investments:
<br />Investment Type
<br />Negotiable Certificates of Deposit
<br />Federal Home Loan Bank
<br />Federal National Mortgage Association
<br />Federal Farm Credit Bank Bond
<br />Municipal Bonds
<br />UBS Select Prime Institutional Money Market
<br />Minnesota Municipal Money Market (4M Fund)
<br />Other Money Market Funds
<br />Total Investments
<br />Maturity Duration in Years
<br />Total
<br />Less Than 1
<br />1 to 5
<br />More Than 5
<br />No Maturity
<br />Rating
<br />$ 12,561,268
<br />$ 3,640,493
<br />$ 7,939,175
<br />$ 981,600
<br />$ -
<br />Not Rated
<br />1,327,779
<br />-
<br />-
<br />1,327,779
<br />-
<br />AA+/Aaa
<br />1,501,680
<br />501,500
<br />1,000,180
<br />-
<br />-
<br />AA+/Aaa
<br />500,375
<br />-
<br />500,375
<br />-
<br />-
<br />AA+/Aaa
<br />19,205,047
<br />1,537,004
<br />15,525,359
<br />2,142,684
<br />-
<br />AA -to AAA
<br />31,921,263
<br />24,376,676
<br />-
<br />-
<br />7,544,587
<br />Not Rated
<br />4,999,942
<br />-
<br />-
<br />-
<br />4,999,942
<br />Not Rated
<br />32,846
<br />32,846
<br />-
<br />-
<br />-
<br />Not Rated
<br />$ 72,050,200
<br />$ 30,088,519
<br />$ 24,965,089
<br />$ 4,452,063
<br />$ 12,544,529
<br />(49)
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