|
CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2024
<br />
<br />
<br />
<br />
<br />B. INVESTMENTS
<br />
<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, temporary general obligation bonds, repurchase agreements, Minnesota
<br />joint powers investment trusts and guaranteed investment contracts.
<br />
<br />At December 31, 2024, the City had the following investments and maturities:
<br />
<br />Fair Less
<br />Investment Type Rating Value Than 1 1 - 3 3 - 6
<br />Municipal bonds * $25,410,740 4,676,411 11,373,385 9,360,944
<br />Brokered certificate of deposits Not rated 9,337,295 3,853,079 4,736,827 747,389
<br />Federal agency securities AA+ 5,312,124 1,333,129 1,650,350 2,328,645
<br />External investment pools:
<br />4M Liquid Asset Class AAAm 713,386 713,386 - -
<br />4M PLUS Class AAAm 486,366 486,366 - -
<br />First American Treasury Obligation Fund AAAm 1,270,659 1,270,659 - -
<br />Total $42,530,570 $12,333,030 $17,760,562 $12,436,978
<br />* AAA $3,050,383; AA+ $4,889,127; AA $12,462,851;Total investments $42,530,570
<br /> AA- $4,513,909; A+ $494,470 Deposits 13,289,330
<br />Cash on hand 1,440
<br /> Total cash and investments $55,821,340
<br />Investment Maturities (in Years)
<br />
<br />The 4M Multi-Class Fund is regulated by Minnesota Statutes and the Board of Directors of the League of
<br />Minnesota Cities. The 4M Multi-Class Fund has two separate classes, the 4M Liquid Asset Class and the
<br />4M PLUS Class.
<br />
<br />The 4M Multi-Class Fund is managed to maintain a portfolio weighted average maturity of no greater than
<br />60 days and seeks to maintain a constant net asset value of $1.00 per share. The Fund’s investments are
<br />measured at amortized cost in accordance with Governmental Accounting Standards Board Statement No.
<br />79. The 4M Liquid Asset Class has no redemption requirements. The 4M PLUS Class requires funds to be
<br />deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are
<br />subject to a penalty equal to seven days interest on the amount withdrawn.
<br />
<br />The First American Treasury Obligation money market fund seeks to maintain a constant net asset value of
<br />$1.00 per share. The securities held by the fund are measured at amortized cost. Shares may be redeemed
<br />without penalty on any business day.
<br />
<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 inputs
<br />that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly.
<br />Level 3 investments are valued using inputs that are unobservable.
<br />
<br />56
<br />Page 92 of 353
|