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City of Little Canada, Minnesota Notes to the Financial Statements December 31, 2024 Note 3: Detailed Notes on All Funds (Continued) Authorized collateral in lieu of a corporate surety bond includes: •United States government Treasury bills, Treasury notes, Treasury bonds; •Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; •General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; •General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; •Irrevocable standby letters of credit issued by Federal Home 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 & Poor’s Corporation; and •Time deposits that are fully insured by any federal agency. Minnesota 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 financial institution furnishing the collateral. The selection should be approved by the City. At year end, the City has no carrying amount of deposits. Investments As of December 31, 2024, the City had the following investments that are insured or registered, or securities held by the City’s agent in the City’s name: Credit Segmented Quality/Time Ratings (1)Distribution (2)Amount Level 1 Level 2 Level 3 Pooled Investments at Amortized Costs 4M Fund N/A less than 1 year 4,539,818$ -$ -$ -$ Broker Money Market Funds N/A less than 1 year 569,277 - - - Total Pooled Investments 5,109,095 - - - Non-pooled Investments at Amortized Costs Negotiable certifications of deposits NA less than 1 year 2,998,993 - 2,998,993 - Negotiable certifications of deposits NA 1 to 5 years 8,975,259 - 8,975,259 - Government Agency Securities AA+less than 1 year 198,178 - 198,178 - Government Agency Securities AAA more than 3 years 332,572 - 332,572 - Federal Home Loan Bank NA less than 1 year 490,210 490,210 - - Municipal Bonds NA 1 to 5 years 687,037 - 687,037 - Total Investments 18,791,344$ 490,210$ 13,192,039$ -$ Types of Investments Fair Value Measurement Using Ratings are provided by various credit rating agencies where applicable to indicate associated credit risk. (1)Interest rate risk is disclosed using the segmented time distribution method. N/A Indicates not applicable or available. 74