|
CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2014
<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 $ 252,220 $ 252,220 $ - $ $ -
<br />Federal Home Loan Bank 1,375,394 275,017 - 1,100,377
<br />Federal Home Loan Mortgage Corp. 300,167 - - 300,167 -
<br />Federal National Mortgage Assn. 1,995,937 - - - 1,995,937
<br />Negotiable CDs 16,947,235 10,866,000 4,303,032 1,778,203 -
<br />Municipal Bonds 9,123,402 - 1,006,501 6,127,188 1,989,713
<br />Mutual Fund 1,528,538 1,528,538 - - -
<br />Total $ 31,522,893 $ 12,921,775 $ 5,309,533 $ 8,205,558 $ 5,086,027
<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 118A, 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 />Credit
<br />Type Quality Rating Amount
<br />Minnesota Municipal Money Mar ` . Trust Fund _ Aa2 $ 252,220
<br />Federal Home Loan Bank Aaa/AA+ 1,375,394
<br />Federal Home Loan Mortgage Corp.. Aaa/AA+ 300,167
<br />Federal National Mortgage Assn.,Aaa/AA+ 1,995,937
<br />Negotiable CDs Not i�� Not Rated 16,947,235
<br />Municipal Boni���. " �1.. ��p A-Aaa 9,123,402
<br />Mutual Fund Q, Not Rated 1,528,538
<br />Total $ 31,522,893
<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 />45
<br />
|