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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2020
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<br />B. INVESTMENTS
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<br />Subject to rating, yield, maturity and issuer requirements as prescribed by statute, Minnesota Statutes
<br />118A.04 and 118A.05 authorize the City to invest in United States securities, state and local securities,
<br />commercial paper, time deposits, high-risk mortgage-backed securities, temporary general obligation
<br />bonds, repurchase agreements, Minnesota joint powers investment trusts and guaranteed investment
<br />contracts.
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<br />At December 31, 2020, 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 $19,875,392 $7,390,586 $8,981,633 $3,503,173
<br />Municipal bonds * 13,545,411 4,103,061 4,921,394 4,520,956
<br />Federal Agency Securities AA+ 2,249,988 - 1,750,098 499,890
<br />4M fund Not rated 9,499,944 9,499,944 - -
<br />First American Gov't Obligation fund AAAm 505,997 505,997 - -
<br />Total $45,676,732 $21,499,588 $15,653,125 $8,524,019
<br />* AAA $2,853,030; AA+ $2,464,096 Total investments $45,676,732
<br /> AA1 $485,516; AA2 $746,304 Deposits 4,978,958
<br /> AA3 $488,021; AA $4,044,333 Petty cash 940
<br /> AA- $1,236,968; A+ $616,055 Total cash and investments $50,656,630
<br /> A $611,088
<br />Ratings per Moody's or S&P
<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, 2020:
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<br />Investment Type 12/31/2020 Level 1 Level 2 Level 3
<br />Investments at fair value:
<br />Brokered certificates of deposit $19,875,392 $ - $19,875,392 $ -
<br />Municipal bonds 13,545,411 - 13,545,411 -
<br />Federal Home Loan Mortgage Corp. 2,249,988 - 2,249,988 -
<br />$0 $35,670,791 $0
<br />Investments not categorized:
<br />4M fund 9,499,944 `
<br />First American Gov't Obligation fund 505,997
<br />Total investments $45,676,732
<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
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