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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2021
<br />At December 31, 2021, the City had the following investments and maturities:
<br />Investment Maturities (in Years)
<br />Fair
<br />Less
<br />Investment Type Rating
<br />Value
<br />Than 1
<br />1-3
<br />3 - 6
<br />Brokered certificates of deposit Not rated
<br />$16,850,059
<br />$5,921,305
<br />$6,115,091
<br />$4,813,663
<br />Municipal bonds *
<br />15,117,703
<br />2,319,217
<br />6,775,004
<br />6,023,482
<br />Federal agency securities AA+
<br />3,523,362
<br />998,860
<br />742,945
<br />1,781,557
<br />4M fund Not rated
<br />3,949,696
<br />3,949,696
<br />-
<br />-
<br />First American Gov't Obligation fund AAAm
<br />1,481,418
<br />1,481,418
<br />Total
<br />$40,922,238
<br />$14,670,496
<br />$13,633,040
<br />$12,618,702
<br />* AAA $1,419,107; AA+ $1,873,555; AA $5,930,620
<br />Total investments
<br />$40,922,238
<br />AA- $1,759,771; A+ $310,154; A $247,878; Aaa $808,556
<br />Deposits
<br />13,083,090
<br />Aal $1,380,748; Aa2 $541,193; Aa3 $846,121
<br />Petty cash
<br />940
<br />Ratings per Moody's or S&P
<br />Total cash and investments
<br />$54,006,268
<br />The City categorizes its fair value measurements within the fair value hierarchy established by generally
<br />accepted accounting principles. The hierarchNotey is based on the valuation inputs used to measure the
<br />fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that
<br />are 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.
<br />The City has the following recurring fair value measurements at December 31, 2021:
<br />Fair Value Measurement Using
<br />Investment Type 12/31/2021 Level 1 Level 2 Level 3
<br />Investments at fair value:
<br />Brokered certificates of deposit $16,850,059 $ - $16,850,059 $ -
<br />Municipal bonds 15,117,703 - 15,117,703 -
<br />Federal agency securities 3,523,362 - 3,523,362 -
<br />$0 $35,491,124 $0
<br />Investments not categorized:
<br />4M fund 3,949,696
<br />First American Gov't Obligation fund 1,481,418
<br />Total investments $40,922,238
<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 days.
<br />Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest on the
<br />amount withdrawn.
<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 fund
<br />are valued on the basis of amortized cost. Shares may be redeemed without penalty on any business
<br />day.
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