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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2019
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<br />At December 31, 2019, the City had the following investments and maturities:
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<br />Fair Less
<br />Investment Type Rating Value Than 1 1 - 3 3 - 6
<br />Brokered certificates of deposit Not rated $22,924,803 $7,881,574 $10,456,546 $4,586,683
<br />Municipal bonds * 12,251,492 2,685,184 5,973,762 3,592,546
<br />Federal Home Loan Mortgage Corp. AA+ 1,499,855 - - 1,499,855
<br />4M fund Not rated 4,457,891 4,457,891 - -
<br />First American Gov't Obligation fund AAAm 3,092,898 3,092,898 - -
<br />Total $44,226,939 $18,117,547 $16,430,308 $9,679,084
<br />* AAA $2,312,282; AA+ $2,599,103 Total investments $44,226,939
<br /> AA $2,607,390; AA- $1,974,259 Deposits 4,768,651
<br /> A+ $2,144,214; A $614,244 Petty cash 940
<br /> Total cash and investments $48,996,530
<br />Investment Maturities (in Years)
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<br />The City categorizes its fair value measurements within the fair value hierarchy established by generally
<br />accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
<br />value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
<br />based on quoted prices in active markets for identical assets. Level 2 investments are valued using
<br />inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or
<br />indirectly. Level 3 investments are valued using inputs that are unobservable.
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<br />The City has the following recurring fair value measurements at December 31, 2019:
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<br />Investment Type 12/31/2019 Level 1 Level 2 Level 3
<br />Investments at fair value:
<br />Brokered certificates of deposit $22,924,803 $ - $22,924,803 $ -
<br />Municipal bonds 12,251,492 - 12,251,492 -
<br />Federal Home Loan Mortgage Corp. 1,499,855 - 1,499,855 -
<br />$0 $36,676,150 $0
<br />Investments not categorized:
<br />4M fund 4,457,891 `
<br />First American Gov't Obligation fund 3,092,898
<br />Total investments $44,226,939
<br />Fair Value Measurement Using
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<br />The 4M fund is an external investment pool investment which is regulated by Minnesota Statutes and
<br />the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
<br />position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
<br />weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
<br />(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
<br />Statement No. 79. The 4M Plus fund requires funds to be deposited for a minimum of 14 calendar
<br />days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest
<br />on the amount withdrawn.
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<br />The First American Government Obligation money market fund is an external investment pool. The
<br />fund seeks to maintain a constant net asset value (NAV) of $1 per share. The securities held by the
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