2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

A. Deposits (Continued) NOTE 4 – DEPOSITS AND INVESTMENTS (CONTINUED)

Custodial 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 has a deposit policy that requires the Commission’s deposits to be collateralized as required by Minnesota Statues 118.03 for an amount exceeding FDIC, SAIF, BIF, FCUA, or other federal deposit coverage. As of December 31, 2022, the City and Commission’s bank balances were not exposed to custodial credit risk because they were insured through Federal Deposit Insurance Corporation (FDIC) and properly collateralized with securities held by the pledging financial institutions’ trust departments or agents in the City’s name.

As of December 31, 2022, the City had the following deposits:

City Deposits Component Unit Deposits

$

637,015

16,243,978

Total Deposits

$ 16,880,993

B. Investments As of December 31, 2022, the City held the following investments:

Years to Maturity

Moody's Rating

Less than One Year

1-5 Years

10-15 Years

Concentration

Value

5-10 Years

Pooled Investments:

NR NR

Money Market Fund Certificate of Deposit

$

662,174 3,149,998 254,673 20,277,947 9,553,809 1,718,853 5,326,205 18,171,794 3,853,618 3,451,639 4,833,948 9,293,857 913,850

$ 206,055

$

2,187,660 4,833,948

$

6,900,142 - 2,615,750 3,451,639 913,850 13,182,648 4,326,615

$

- - - - - - -

0.31% 3.87% 0.81% 2.11% 11.73% 24.89% 22.31% 4.73% 4.24% 6.54% 1.12% 11.41% 5.93%

-

Agencies

AAA AAA AAA AAA AAA AAA AAA AAA

FFCB FHLB

-

945,550 999,590

4,043,596 1,237,868

FHLMC FNMA

- - -

- - - - -

TVA

Agencies- Mortgage Backed

FHLMC FNMA

26,304

254,673 1,610,562 635,870

-

- -

1,539,436

Agency Discount Notes SBA

-

AAA

FHLB

- 5,856,897 13,504,780

-

- - -

6,382,702 1,718,853 444,229

US Treasury Notes Municipal Bond

390,465 3,252,683

AAA-AA3

AAA

$

20,848,856

$

50,778,625

$ 8,295,448

$

1,539,436

Total Investments

$

81,462,365

58