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CITY OF ST. ANTHONY, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2015
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<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.
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<br />As of December 31, 2015, the City had the following investments and maturities:
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<br />Fair Less Over
<br />Investment Type Rating Value Than 1 1-5 6-10 10 Years
<br />Federal Home Loan Bank AAA $495,252 $495,252 $ - $ - $ -
<br />Federal Farm Credit Bank AAA 195,030 195,030 - - -
<br />REMIC NR 30,728 - - 200 30,528
<br />Money market NR 1,600,683 1,600,683 - - -
<br />External investment pool - 4M Fund NR 4,334,173 4,334,173 - - -
<br />Local governments AA - AAA 711,943 - 711,943 - -
<br />Brokered certificates of deposit NR 5,167,288 1,295,153 3,872,135 - -
<br /> Total $12,535,097 $7,920,291 $4,584,078 $200 $30,528
<br />NR - Not Rated Total investments $12,535,097
<br />Petty cash 5,300
<br /> Total cash and investments $12,540,397
<br />Investment Maturities (in Years)
<br />Following is a reconciliation of the City’s cash and investment balances as of December 31, 2015:
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<br />Cash and investments $12,544,519
<br />Cash and investments - fiduciary fund (4,122)
<br />$12,540,397
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<br />C. INVESTMENT RISKS
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<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.
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<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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