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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31,2015
<br />Note2 DEPOSITS AND INVESTMENTS (CONTINUED)
<br />B. INVESTMENTS (CONTINUED)
<br />12Months 13 to 24 25 to 60
<br />Total or Less Months Months
<br />Minnesota Municipal Money
<br />Market Trust Fund $ 7,404,834 $ 7,404,834
<br />Federal Home Loan Bank 297,861 297,861
<br />Federal Home Loan Mortgage Corp. 803,533 803,533
<br />Federal National Mortgage Assn. 1,295,274 1,295,274
<br />Negotiable CDs 14,614,686 7,791,744 2,170,544 4,652,398
<br />Municipal Bonds 9,822,152 4,583,200 2,026,502 3,212,450
<br />Mutual Fund 259,341 259,341
<br />Toral $ 34,497,681 $ 20,039,119 $4,197,046 $ 10,261,516 =
<br />Credit Risk
<br />Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
<br />the investment. The City's policy to minimize credit risk includes limiting investing fimds to those
<br />allowable under Minnesota Statute liSA, annually appointing all financial institutions where investments
<br />are held, and diversifYing the investment portfolio. This is measured by the assignment of a rating by a
<br />nationally recognized statistical mting organization. The following chart summarizes year-end ratings for
<br />the City's investments as rated by Moody's Investors Service:
<br />Type
<br />Minnesota Municipal Money Market Trust FWld
<br />Federal Home Loan Bank
<br />Federal Home Loan Mortgage Corp.
<br />Federal National Mortgage Assn.
<br />Negotiable CDs
<br />Municipal Bonds
<br />Mutual Fund
<br />Total
<br />Credit
<br />Qnality Rating
<br />Aa2
<br />Aaa/AA+
<br />Aaa/AA+
<br />Aaa/AA+
<br />Not Rated
<br />A-Aaa
<br />Not Rated
<br />Ammmt
<br />$ 7,404,834
<br />297,861
<br />803,533
<br />1,295,274
<br />14,614,686
<br />9,822,152
<br />259,341
<br />$ 34,497,681
<br />The Minnesota Municipal Money Market FWld Trust is a common law trust organized in accordance with
<br />the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
<br />statutes as described on the previous page. Its investments are valued at amortized cost, which
<br />approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The
<br />amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
<br />assumes a constant amortization to maturity of any discount or premium, regardless of the impact of
<br />fluetuating interest rates on the fair value of instruments.
<br />The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who
<br />administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2.
<br />For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
<br />will not be able to recover the value of its investment or collateral securities that are in the possession of an
<br />outside party. The City's investment policy doesn't specifically address custodial credit risk.
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31,2015
<br />Note2 DEPOSITS AND INVESTMENTS (CONTINUED)
<br />B. INVESTMENTS (CONTINUED)
<br />Concentration of Credit Risk
<br />The City places no limit on the amoWlt that it may invest in any one issuer. The following is a list of
<br />investments which individually comprise more than 5% of the city's total investments:
<br />T AmoWlt Percentage
<br />CitibankSDA $ 2,939,195 8.52%
<br />Note3 CAPITAL ASSETS
<br />Capital asset activity for the year ended December 31, 2015 was as follows:
<br />Beginning Ending
<br />Balance Increases Decreases Transfers ~
<br />Governmental Activities:
<br />Capital Assets, Not Being Depreciated:
<br />Land $ 3,275,859 $ $ $ $ 3,275,859
<br />Construction in Progress 808 093 7,268,375 !808,093! 7,268,375
<br />Total Capital Assets, Not Being Depreciated 4,083,952 7,268,375 (808,093) 10,544,234
<br />Capital Assets, Being Depreciated:
<br />Buildings 6,765,619 6,765,619
<br />Office Equipment and Furniture 1,398,722 108,321 (167,991) (702,619) 636,433
<br />Vehicles 2,891,461 526,556 (270,155) (24,966) 3,122,896
<br />Machinery and Shop Equipment 960,720 684,076 (91,619) 702,619 2,255,796
<br />Other Equipment 952,447 28,384 24,966 1,005,797
<br />lnfras1ructure 78,607,804 1,872,963 80,480,767
<br />Total Capital Assets, Being DePreciated 91,576,773 3,220,300 (529,765) 94,267,308
<br />Accwnulated Depreciation for:
<br />Buildings (3,648, 780) (314,426) (3,963,206)
<br />Office Equipment and Furniture (1,033,723) (35,760) 139,878 427,135 (502,470)
<br />Vehicles (1,721,431) (534,894) 266,735 8,065 (1,981,525)
<br />Machinery and Shop Equipment (624,333) (143,346) 48,545 (427,135) (1,146,269)
<br />Other Equipment (784,643) (19,967) (8,065) (812,675)
<br />lnfras1ructure !51,634,831! (3,542,529! !55,177,360!
<br />Total Accumulated DePreciation !59,447,741! ! 4,590,922! 455,158 !63,583,505!
<br />Total Capital Assets, Being Depreciated, Net 32,129,032 !1,370,622! !74.602! 30,683,803
<br />Governmental Activities Capital Assets, Net $ 36,212,984 $ 5,897,753 .s (882,700) $ $ 41,228,037 IV-24
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