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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2022
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<br />At December 31, 2022, 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 />Municipal bonds *$20,784,250 $2,549,271 $8,622,580 $9,612,399
<br />Brokered certificates of deposit Not rated 12,044,627 3,289,829 5,956,364 2,798,434
<br />Federal agency securities AA+6,864,573 1,252,431 - 5,612,142
<br />4M fund Not rated 1,585,017 1,585,017 - -
<br />First American Gov't Obligation Fund AAAm 893,735 893,735 - -
<br />Total $42,172,202 $9,570,283 $14,578,944 $18,022,975
<br />* AAA $2,991,680; AA+ $5,179,333; AA $9,039,829;Total investments $42,172,202
<br /> AA- $2,938,238; A+ $535,866; A $99,304 Deposits 8,963,723
<br />Ratings per Moody's or S&P Petty cash 1,440
<br /> Total cash and investments $51,137,365
<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 Note 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.
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<br />The City has the following recurring fair value measurements at December 31, 2022:
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<br />Investment Type 12/31/2022 Level 1 Level 2 Level 3
<br />Investments at fair value:
<br />Municipal bonds $20,784,250 $ - $20,784,250 $ -
<br />Brokered certificates of deposit 12,044,627 - 12,044,627 -
<br />Federal agency securities 6,864,573 - 6,864,573 -
<br />$0 $39,693,450 $0
<br />Investments not categorized:
<br />4M fund 1,585,017 `
<br />First American Gov't Obligation fund 893,735
<br />Total investments $42,172,202
<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 days.
<br />Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest on the
<br />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 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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