2017.07.17 CC Packet - Laserfiche WebLink

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CITY OF HUGO, MINNESOTA NOTES TO FINANCIAL STATEMENTS (CONTINUED) 3. Detailed Notes on All Funds (Continued) A. Deposits and Investments (continued) Concentration of Credit Risk The City places no limit on the amount the City may invest with any one issuer. Investments in any one issuer that represented 5% or more of total investments as of December 31, 2016 were as follows: Issuer Investment Type Value RBC Wealth Management Money Market Funds $ 19,061,732 Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investment securities that are in the possession of an outside party. At December 31, 2016 all investments were insured or registered or the securities were held by the City or its agent in the City's name. Fair Value Measurements Fair value measurements are determined utilizing the framework established by the Governmental Accounting Standards Board. The framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the City has the ability to access. Level 2: Inputs to the valuation methodology include: o Quoted prices for similar assets or liabilities in active markets o Quoted prices for identical assets or liabilities in inactive markets o Inputs other than quoted prices that are observable for the asset or liability o Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specific (contractual) term, Level 2 input must be observable for substantially the full term of the asset or liability.