5.1. ERMUSR 04-13-2010 - Laserfiche WebLink

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ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA NGTES TQ FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 200$ Dote 2; DETAILED I~~TES ®l~ ALL FUNDS - ~~.~TINUED ~ General obligation securities of a local gove~~ment with taxing powers may be pledged as collateral aga~rst hinds deposited by that same local government entity; Irrevocable standby letters of credit issued by Federal Dome Loan Banks to a municipality accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's Investors Service, Inc., or Standard ~i Poor's Corporation; and Time deposits that are fully insured by any federal agency, Mhrnesota statutes require that all collateral shall be placed in safekeeping in a restricted account at a Federal Reserve Bank, or in an account at a trust department of a commercial bank or other financial institution that is not owned or controlled by the fnnancial institution furnishing the collateral, The selection should be approved by the government entity, At December 31, 2009, the Utilities' carrying amount of deposits was $5,993,647 and the bark balance was $G,999,949. of the bank balance $5,735,393 was covered by federal depositary insurance, and the remaining balance was covered by collateral held by the pledging financial institution's agent in the Utilities' name. At December 31, 2005, the Utilities' carrying amount of deposits was $4,299,559 and the bank balance was $5,531,879. Of the bank balance $4b7,335 was covered by federal depository insurance, a~ad the ren~aining balance was covered by collateral held by the pledging financial institution's agent in the Utilities' name. Investments The Utilities' investment balances were as follows for December 31, 2049. Fair Value Credit Segmented and Quality) Tune Carrying Types of Investments Ratings ~ 1 } Distribution ~2~ Amount Pooled investments Broker Money Markets NIA less than G months $ 1,453,828 Non-pooled investments U. S. Treasuries NIA less than G months 2,5 S 5,901 U.S. Government Agency Securities AAA 1 to 3 years 405,109 Brokered CD's NIA less than G months G4,000 Brokered CD's NIA 6 months to 1 year 42,000 Brokered CD's NIA 1 to 3 years 1,033,296 Total non-pooled il~vestments 4,133,306 Total i~~vest~nents $ .5,157,134__ 1. Rating were plrovided by Moody's 2. Interest rate risk is disclosed using the segmented tune distribution method. NIA Indicates not applicable or available -34-