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City of Elk River
<br />Notes to Basic Financial Statements
<br />NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED)
<br />B. Investments (Continued)
<br />Custodial Credit Risk — Investments: For an investment, this is the risk in the event of the failure of the
<br />counterparty the City will not be able to recover the value of its investments or collateral securities that
<br />are in the possession of an outside parry. The City typically limits its exposure by purchasing insured or
<br />registered investments, or by the control of who holds the securities. As of December 31, 2022, all
<br />investments were insured or registered, or securities were held by the City or its agent in the City's
<br />name.
<br />The City has the following recurring fair value measurements as of December 31, 2022:
<br />• Brokered certificates of deposit of $8,024,458, municipal bonds of $36,606,044, and government
<br />securities of $484,740 are valued using a matrix pricing model (Level 2 inputs)
<br />C. Deposits and Investments
<br />Summary of cash deposits and investments as of December 31, 2022, were as follows:
<br />Primary
<br />Component
<br />Government
<br />Unit HRA
<br />Total
<br />Deposits
<br />$ 25,621,047
<br />$ 794,508
<br />$
<br />26,415,555
<br />Investments
<br />58,858,806
<br />-
<br />58,858,806
<br />Petty cash
<br />5,600
<br />-
<br />5,600
<br />Total deposits and investments
<br />$ 84,485,453
<br />$ 794,508
<br />$
<br />85,279,961
<br />Deposits and investments are presented in the
<br />December 31, 2022, basic
<br />financial statements as follows:
<br />Primary
<br />Component
<br />Government
<br />Unit HRA
<br />Total
<br />Statement of Net Position
<br />Cash and investments
<br />$ 82,706,437
<br />$ 794,508
<br />$
<br />83,500,945
<br />Restricted cash
<br />1,779,016
<br />-
<br />1,779,016
<br />Total deposits and investments
<br />$ 84,485,453
<br />$ 794,508
<br />$
<br />85,279,961
<br />NOTE 4 — NOTES RECEIVABLEXONTRACT FOR DEED
<br />The City has made several business subsidy loans to local businesses, some of which were funded with
<br />grant proceeds received from the state and federal governments. The terms of repayment vary with each
<br />loan and will be repaid over a period of 10 years. Under the terms of the grant agreement, the City
<br />retains the grant repayments. Notes receivable of $220,580 in the Revolving Loan fund and $156,443 in
<br />the State DEED fund are outstanding at December 31, 2022.
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