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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2021 <br /> <br /> <br /> <br /> <br />Another element of that reconciliation states that “the issuance of long-term debt (e.g. bonds, <br />leases) provides current financial resources to governmental funds, while the repayment of <br />principal of the long-term debt consumes the current financial resources of governmental funds. <br />Neither transaction, however, has any effect on net position.” The details of this $1,095,769 <br />difference are as follows: <br /> <br />Debt issued or incurred: <br />Issuance of general obligation bonds ($2,970,000) <br />Premium on issued bonds (137,040) <br />Principal repayments 4,040,000 <br />Change in accrued interest payable 20,994 <br />Amortization of bond premium 141,815 <br />Net adjustment to increase net changes in fund <br />balances - total governmental funds to arrive at <br />changes in net position of governmental activities. $1,095,769 <br /> <br /> <br /> <br /> <br />Note 2 DEPOSITS AND INVESTMENTS <br /> <br />A. DEPOSITS <br /> <br />In accordance with Minnesota Statutes, the City maintains deposits at those depository banks <br />authorized by the City Council, all of which are members of the Federal Reserve System. <br /> <br />Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The <br />market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. <br />Securities pledged as collateral are required to be held in safekeeping by the City or in a financial <br />institution other than that furnishing the collateral. Minnesota Statue 118A.03 identifies allowable <br />forms of collateral. <br /> <br />Custodial Credit Risk – Deposits: Custodial credit risk is the risk that in the event of a bank failure, <br />the City’s deposits may not be returned to it. As of December 31, 2021, the bank balance of the City’s <br />deposits was covered by federal depository insurance. <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, high-risk mortgage-backed securities, temporary general obligation <br />bonds, repurchase agreements, Minnesota joint powers investment trusts and guaranteed investment <br />contracts. <br /> <br />54