|
CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31. 2013
<br />Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
<br />B. INVESTMENTS (CONTINUED)
<br />12 Months 13 to 24 25 to 60 More than
<br />Type Total or Less Months Months 60 Months
<br />Minnesota Municipal Money
<br />Market Trust Fund $ 944.001 S 944.001 S $ - $ -
<br />Federal Home Loan Bank 2.434.579 - - 2.434.579
<br />Federal Home Loan Mortgage Corp. 348,593 - - 348.593 -
<br />Federal National Mortgage Assn. 2.543,496 - - 597,449 1,946.047
<br />Negotiable CDs 12.899.752 6.410,000 4,057.457 2.432.295 -
<br />Municipal Bonds 10.953,310 1,145,804 2.135.439 5,704.334 1,967,733
<br />Mutual Fund 1.519,591 1.519.591 - -
<br />Total $ 31.643,322 $ 10,019.396 S 6,192.896 S 9,082.671 $ 6.348,359
<br />Credit Risk
<br />Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
<br />the investment. The City's policy to minimize credit risk includes limiting investing funds to those
<br />allowable under Minnesota Statute 1 I8A, annually appointing all financial institutions where investments
<br />are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a
<br />nationally recognized statistical rating organization. The following chart summarizes year-end ratings for
<br />the City's investments as rated by Moody's Investors Service:
<br />Type
<br />Minnesota Municipal Money Market Trust Fund
<br />Federal Home Loan Bank
<br />Federal Home Loan Mortgage Corp.
<br />Federal National Mortgage Assn.
<br />Negotiable CDs
<br />Municipal Bonds
<br />Mutual Fund
<br />Total
<br />Credit
<br />Quality Rating Amount
<br />Aa2 5 944,001
<br />Aaa/AA+ 2,434,579
<br />Aaa/AA+ 348,593
<br />Aaa/AA+ 2,543,496
<br />Not Rated 12,899,752
<br />A-Aaa 10,953,310
<br />Not Rated 1.519,591
<br />5 31,643.322
<br />The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with
<br />the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
<br />statutes as described on the previous page. Its investments are valued at amortized cost, which
<br />approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The
<br />amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
<br />assumes a constant amortization to maturity of any discount or premium. regardless of the impact of
<br />fluctuating interest rates on the fair value of instruments.
<br />The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who
<br />administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2.
<br />For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
<br />will not be able to recover the value of its investment or collateral securities that are in the possession of an
<br />outside party. The City's investment policy doesn't specifically address custodial credit risk.
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2013
<br />Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
<br />B. INVESTMENTS (CONTINUED)
<br />Concentration 0! Credit Risk
<br />The City places no limit on the amount that it may invest in any one issuer. The following is a list of
<br />investments which individually comprise more than 5% of the City's total investments:
<br />Type
<br />Federal National Mortgage Assn.
<br />Federal Home Loan Bank
<br />Note 3 CAPITAL ASSETS
<br />Amount
<br />$ 2,543,496
<br />2,434,579
<br />Capital asset activity for the year ended December 31, 2013 was as follows:
<br />Governmental Activities:
<br />Capital Assets, Not Being Depreciated:
<br />Land
<br />Capital Assets. Being Depreciated:
<br />Buildings
<br />Office Equipment and Furniture
<br />Vehicles
<br />Machinery and Shop Equipment
<br />Other Equipment
<br />Infrastructure
<br />Total Capital Assets, Being Depreciated
<br />Accumulated Depreciation for:
<br />Buildings
<br />Office Equipment and Furniture
<br />Vehicles
<br />Machinery and Shop Equipment
<br />Other Equipment
<br />Infrastructure
<br />Total Accumulated Depreciation
<br />Total Capital Assets, Being Depreciated. Net
<br />Governmental Activities Capital Assets, Net
<br />Beginning
<br />Balance
<br />Increases
<br />$ 3,275,859 $
<br />Percentage
<br />Decreases
<br />8.04%
<br />7.69%
<br />Ending
<br />Balance
<br />$ 3,275,859
<br />6,530,334 195,783 - 6,726,117
<br />1,372,230 36,904 (26,102) 1,383,032
<br />2,514,738 159,041 (130,829) 2,542,950
<br />923,595 (3,000) 920,595
<br />952,447 952,447
<br />77,876,924 914,606 (183,726) 78,607,804
<br />90,170,268 1,306,334 (343,657) 91,132,945
<br />(3,206,148) (218,053) - (3,424,201)
<br />(921,491) (80,027) 26,102 (975,416)
<br />(1,366,677) (242,537) 130,829 (1,478,385)
<br />(530,970) (52,380) 3,000 (580,350)
<br />(747,408) (22,339) - (769,747)
<br />(47,038,870) (2,294,211) 7,349 (49,325,732)
<br />(53.811,564) (2,909,547) 167,280 (56,553,831)
<br />36,358,704 11,603,213) (176.377) 34,579.114
<br />$ 39.634,563 $ (1,603,213) $ (176,377) $ 37,854,973
<br />
|