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 (Continued)

The City has the following recurring fair value measurements as of December 31, 2019: The Commission’s policy states they will minimize risk by only purchasing investments that are held in safekeeping with the Federal Reserve bank, United States Bank with corporate trust powers, a primary reporting dealer to the Federal Reserve Bank of New York, or a broker dealer having its principal executive office in Minnesota and that designated brokers have insurance through a SIPC (Securities Investor Protection Corporation). As of December 31, 2019 the City held investments that exceeded 5% of its total investments for all funds as noted in the table on the previous page. The component units’ investments noted in the table above exceeded 5% of its total investments as of December 31, 2019.

Fair Value Measurement Using

Value

Level 1

Level 2

Level 3

Investments at Fair Value:

Certificate of Deposit Commercial Paper FHLB FHLMC FNMA Municipal Bond US Treasury Notes US Treasury Bill Total/Subtotal

$

7,782,908 2,497,540 7,494,543 2,281,807 11,256,913 8,906,151 19,245,998 59,690,331 224,471

$

- - - - - -

$

11,256,913 8,906,151 2,281,807 7,782,908 2,497,540 7,494,543

$

- - - - - - - - -

224,471

- -

19,245,998 19,470,469

$

$

40,219,862

$

Investments at Amortized Cost:

Money Market Fund Total

5,225,218 64,915,549

$

Publicly traded assets are valued in accordance with market quotation or valuation methods from services believed by our broker to be reliable. Assets, which are not publicly traded, may reflect values from other external sources or special valuations prepared by our broker. Assets for which a current value is not available may be reflected as not valued, at par value, or at a nominal value of $1.00. $19,401,156 of $54,023,383 of the Component Unit’s investments at December 31, 2019 are valued using a quoted market prices (Level 2 inputs). $34,622,227 are investments uncategorized in accordance with GASB 72 and GASB 79.

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