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CITY OF ST. ANTHONY, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2013
<br />g) General obligation temporary bonds of the same governmental entity issued under section
<br />429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
<br />As of December 31, 2013, the City had the following investments and maturities:
<br />NR - Not Rated
<br />Total investments $15,250,488
<br />Petty cash 5,200
<br />Tom) cash and investments $15,255,688
<br />Following is a reconciliation of the City's cash and investment balances as of December 31, 2013:
<br />Cash and investments $13,870,626
<br />Cash and investments - fiduciary fund ($7,234)
<br />Funds held in trust 1,392,296
<br />$15,255,688
<br />C. INVESTMENT RISKS
<br />Custodial credit risk — investments — For investments in securities, custodial credit risk is the risk that
<br />in the event of failure of the counterparty to a transaction, the City will not be able to recover the value
<br />of its investment securities that are in the possession of an outside party. Investments in investment
<br />pools and money markets are not evidenced by securities that exist in physical or book entry form, and
<br />therefore are not subject to custodial credit risk disclosures. The City's investment policy does not
<br />address custodial risk. However, investments in securities are held by the City's broker-dealers of
<br />which $500,000 is insured through SIPC. The broker-dealer has provided additional protection by
<br />providing additional insurance. This insurance is subject to aggregate limits applied to all of the
<br />broker-dealers' accounts.
<br />Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could
<br />adversely affect the fair value of an investment. The City's investment policy requires the City to
<br />diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of
<br />assets in a specific maturity. The policy also states the City's investment portfolio will remain
<br />sufficiently liquid to enable the City to meet all operating requirements which might be reasonably
<br />anticipated.
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<br />Investment Maturities (in Years)
<br />Fair
<br />Less
<br />Over
<br />Investment Type
<br />Rating
<br />Value
<br />Than 1
<br />1-5
<br />6-10
<br />10 Years
<br />Federal Home Loan Mortgage Corp.
<br />AAA
<br />$1,177,274
<br />$1,177,274
<br />$ -
<br />$ -
<br />$ -
<br />REMIC
<br />NR
<br />158,190
<br />-
<br />-
<br />843
<br />157,347
<br />Money market
<br />NR
<br />2,518,142
<br />2,518,142
<br />-
<br />-
<br />-
<br />External investment pool - 4M Fund
<br />NR
<br />5,676,540
<br />5,676,540
<br />-
<br />-
<br />Local governments
<br />AA -AAA
<br />690,659
<br />-
<br />410,351
<br />280,308
<br />-
<br />Brokeredcertificatesofdeposit
<br />NR
<br />3,637,387
<br />404,351
<br />2,122,411
<br />1,110,625
<br />-
<br />US Treasury State and Local Government (SLGS)
<br />NR
<br />1,392,296
<br />1,392,296
<br />-
<br />-
<br />Total
<br />$15,250,488
<br />$11,168,603
<br />$2,532,762
<br />$1,391776
<br />$157,347
<br />NR - Not Rated
<br />Total investments $15,250,488
<br />Petty cash 5,200
<br />Tom) cash and investments $15,255,688
<br />Following is a reconciliation of the City's cash and investment balances as of December 31, 2013:
<br />Cash and investments $13,870,626
<br />Cash and investments - fiduciary fund ($7,234)
<br />Funds held in trust 1,392,296
<br />$15,255,688
<br />C. INVESTMENT RISKS
<br />Custodial credit risk — investments — For investments in securities, custodial credit risk is the risk that
<br />in the event of failure of the counterparty to a transaction, the City will not be able to recover the value
<br />of its investment securities that are in the possession of an outside party. Investments in investment
<br />pools and money markets are not evidenced by securities that exist in physical or book entry form, and
<br />therefore are not subject to custodial credit risk disclosures. The City's investment policy does not
<br />address custodial risk. However, investments in securities are held by the City's broker-dealers of
<br />which $500,000 is insured through SIPC. The broker-dealer has provided additional protection by
<br />providing additional insurance. This insurance is subject to aggregate limits applied to all of the
<br />broker-dealers' accounts.
<br />Interest rate risk — Interest rate risk is the risk that changes in interest rates of debt investments could
<br />adversely affect the fair value of an investment. The City's investment policy requires the City to
<br />diversify its investment portfolio to eliminate the risk of loss resulting from over concentration of
<br />assets in a specific maturity. The policy also states the City's investment portfolio will remain
<br />sufficiently liquid to enable the City to meet all operating requirements which might be reasonably
<br />anticipated.
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<br />L_
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