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<br />During the 4th Quarter, $607,500($600,000 principal and $7,500 interest) was received by Dignicare to pay
<br />off the $600,000 loan that the EDA approved in 2018 to Dignicare. The payment was recorded in the EDA
<br />Fund (Fund 105) since the $600,000 Dignicare loan was recorded in this fund. After the receipt of these
<br />funds, the two interfund loans in the EDA Fund were partially paid.
<br />
<br />Investments
<br />As of December 2020, total cash and investments for all City Funds totaled $17,413,008, and the allocation
<br />by investment type is as follows:
<br />Type Amount Percentage
<br />4M money market $3,946,255 22.66%
<br />CD’s 11,615,334 66.71%
<br />Agencies 500,000 2.87%
<br />Treasury 499,761 2.87%
<br />Municipal Bonds $851,658 4.89%
<br />Total $17,413,008 100.00%
<br />Petty Cash 600
<br />Mark to Market Adjustment $154,376
<br />Total Cash and Investments as of year-end $17,567,984
<br />
<br />Since all the CDs that the City holds are under $250,000, they are FDIC insured except for the RCU CD.
<br />Since the RCU CD is over the insurance limits, it is collateralized as per the City’s investment policy. All
<br />current investments are within the State Statute guidelines.
<br />
<br />Interest rates are at historic lows. The 4M fund that paid 1.27% at the end of the 1st quarter 2020, paid .05%
<br />at the end of the 4th quarter. Due to the current interest rate environment, investment earnings for 2020 are
<br />lower than 2019.
<br />2019 2020
<br />$312,294 $257,404
<br />Since investment earnings are budgeted conservatively, actual investment earnings exceeded budget
<br />amounts in all budgeted funds including the General Fund.
<br />
<br />As in prior years, a mark to market adjustment is required to be recorded at year-end in accordance with
<br />GASB (Government Accounting Standards Board) and GAAP (Generally Accepted Accounting
<br />Procedures). A mark to market adjustment refers to the amount that the City would receive if the entire
<br />investment portfolio would have been liquidated on December 31st. The mark to market adjustment on the
<br />portfolio was recorded as follows:
<br />2019 2020
<br />$27,498 $154,376
<br />
<br />The interest rate coupons as of December 31st, are as follows:
<br /> As of December 31, 2020
<br />Coupon Amount Percentage
<br />To .99% $10,634,350 61.07%
<br />1.00% to 1.49% 245,000 1.41%
<br />1.50% to 1.99% 2,940,000 16.88%
<br />2.00% to 2.49% 2,683,658 15.41%
<br />2.50% to 2.99% 910,000 5.23%
<br />3.00% to 3.49% 0 0.00%
<br /> $17,413,008 100.00%
<br />The coupons over 1.50% are for non-callable investments so the coupons will not change until the
<br />investment matures. As these investments mature and new investments are purchased, the interest rates
<br />will be at lower rates due to the target Fed Funds Rate which is currently at 0% to .25%.
<br />
<br />A listing of the investments by type and maturity is attached to this report.
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