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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2023
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<br />At December 31, 2023, 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 > 6
<br />Municipal bonds *$25,759,301 $4,216,342 $8,963,115 $12,283,864 $295,980
<br />Brokered certificates of deposit Not rated 10,970,963 3,595,335 6,411,377 964,251 -
<br />Federal agency securities AA+ 1,980,007 - 1,687,606 292,401 -
<br />U.S. Treasuries AA+ 1,018,387 491,953 526,434 - -
<br />4M fund Not rated 2,556,412 2,556,412 - - -
<br />First American Gov't Obligation Fund AAAm 512,408 512,408 - - -
<br />Total $42,797,478 $11,372,450 $17,588,532 $13,540,516 $295,980
<br />* AAA $3,146,928; AA+ $5,699,845; AA $11,994,026;Total investments $42,797,478
<br /> AA- $4,072,800; A+ $746,028; A $99,674 Deposits 9,607,050
<br />Ratings per Moody's or S&P Petty cash 1,440
<br /> Total cash and investments $52,405,968
<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 accepted accounting
<br />principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three
<br />levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets.
<br />Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable,
<br />either directly or 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, 2023:
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<br />Investment Type 12/31/2023 Level 1 Level 2 Level 3
<br />Investments at fair value:
<br />Municipal bonds $25,759,301 $ - $25,759,301 $ -
<br />Brokered certificates of deposit 10,970,963 - 10,970,963 -
<br />Federal agency securities 1,980,007 - 1,980,007 -
<br />U.S. Treasuries 1,018,387 1,018,387 - -
<br />$1,018,387 $38,710,271 $0
<br />Investments not categorized:
<br />4M fund 2,556,412 `
<br />First American Gov't Obligation fund 512,408
<br />Total investments $42,797,478
<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 the Board of Directors
<br />of the League of Minnesota Cities. It is an unrated pool and the fair value of the position in the pool is the same as the value
<br />of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks
<br />to maintain a constant net asset value (NAV) of $1 per share. The pool measures its investments at amortized cost in
<br />accordance with GASB 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 on the amount
<br />withdrawn.
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<br />The First American Government Obligation money market fund is an external investment pool. The fund seeks to maintain a
<br />constant net asset value (NAV) of $1 per share. The securities held by the fund are valued on the basis of amortized cost.
<br />Shares may be redeemed without penalty on any business day.
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