2019 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2019

NOTE 4 – DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments As of December 31, 2019, the City held the following investments:

Years to Maturity

Moody's Rating

Less than One Year

10-15 Years

Concentration

1-5 Years

Value

5-10 Years

Pooled Investments:

$

-

12.17% 3.91% 6.60% 11.73% 3.57% 17.61% 13.94% 0.35% 30.12%

NR NR NR NR NR

FHLB FHLMC FNMA Municipal Bond US Treasury Notes US Treasury Bill Money Market Fund Commercial Paper Certificate of Deposit

$

4,216,963 2,497,540 7,494,543 2,281,807 11,256,913 8,906,151 224,471 19,245,998 7,782,908

$

- - -

$

4,785,772

$

7,494,543 10,546 5,878 3,135,608 224,471 3,136,189 2,497,540 4,216,963 2,997,136

- - - 1,156,784 10,466,956

- - - 8,963

- 1,105,514 784,079 530,915 - 1,209,659

-

NR AAA-A2 AAA NR

- - -

5,239,628 - 14,900,150

3,630,167 $

$

11,623,740

$

63,907,294

$

23,718,874

$

24,934,513

Total Investments

As of December 31, 2019, the City held the following cash with fiscal agent:

Years to Maturity

Less than One Year

Moody's Rating

Value

1-5 Years

5-10 Years

10-15 Years

Concentration

Money Market Fund Non-Pooled Investments:

1,008,255

$

1,008,255

$

-

$

-

$

-

100.00%

NR

As of December 31, 2019, the component units had the following investments:

Years to Maturity

One Year Less than

Rating Moody's

Value

1-5 Years

5-10 Years

10-15 Years

Concentration

Pooled Investments:

4M

$

18,000,000 3,681,571 12,920,563 9,075,514 10,325,642 20,093

$

18,000,000 3,681,571 12,920,563 5,050,218 2,400,199 20,093

$

- - - -

$

- - - - - -

$

- - - - - -

33.32% 6.81% 0.04% 19.11% 23.92% 16.80%

NR NR NR NR NR

4M Plus

4M Term Series Money Market Fund

US Agencies US Treasuries

4,025,296 7,925,443

AAA

Total Investments

$

54,023,383

$

42,072,644

$

11,950,739

$

-

$

-

The City’s investment policy, which covers all funds except the component units, addresses the following risks. The City’s component units also have a formal policy to address the following risks. Credit Risk: This is the risk that an issuer or other counterparty to an investment will not fulfill its obligation to the holder of the investment. Minnesota Statutes 118A.04 and 188A.05 limit investments that are in the top two ratings issued by nationally recognized statistical rating organizations. The City’s investment policy references Minnesota Statutes and further limits the types of investments that the City is allowed to invest in. The Commission’s policy states to ensure safety, it is the policy of the Shakopee Public Utilities Commission that when Considering an investment, all depositories under consideration be cross-checked against existing investments to make certain that funds in excess of insurance limits are not made in the same institution unless collateralized as outlined below. Furthermore, the Shakopee Public Utilities Commission will approve all financial institutions, brokers, and advisers with which the Shakopee Public Utilities Commission will do business.

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