6.4 SR 06-06-2022 - Laserfiche WebLink

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City of Elk River Notes to Basic Financial Statements NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued) Interest Rate Risk: This is the risk that market values of securities in a portfolio would decrease due to changes in market value interest rates. The City's investment policy uses diversification of maturity dates as a means of managing exposure to fair value by stating that no more than 30% of the City's investments may extend beyond a five-year maturity. Custodial Credit Risk — Investments: For an investment, this is the risk in the event of the failure of the counterparty the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City typically limits its exposure by purchasing insured or registered investments, or by the control of who holds the securities. As of December 31, 2021 all investments were insured or registered, or securities were held by the City or its agent in the City's name. The City has the following recurring fair value measurements as of December 31, 2021: • U.S. treasury obligations of $7,081,830 are valued using quoted market prices (Level 1 inputs) • Brokered certificates of deposit of $7,207,966 and municipal bonds of $34,651,559 are valued using a matrix pricing model (Level 2 inputs) C. Deposits and Investments Summary of cash deposits and investments as of December 31, 2021, were as follows: Deposits Investments Petty cash Total deposits and investments Primary Component Government Unit HRA Total $ 32,897,773 $ 775,500 $ 33,673,273 69,381,571 - 69,381,571 5,950 - 5,950 $ 102,285,294 $ 775,500 $ 103,060,794 W.