2022 Annual Comprehensive Financial Report

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

NOTE 4 – DEPOSITS AND INVESTMENTS (CONTINUED)

B. Investments (Continued)

As of December 31, 2022, the City held the following restricted cash for unspent bond proceeds:

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:

1,995,825

1,995,825

-

-

-

65.31%

NR

Agencies

FHLMC

490,310

490,310

-

-

-

16.04%

AAA

Agency Discount Notes FHLB

569,823

569,823

-

-

-

18.65%

AAA

Total Investments

$

3,055,958

$

3,055,958

$

-

$

-

$

-

As of December 31, 2022, 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 Fund

$

1,374,049 8,127,729 3,845,305 797,155 4,327,076 36,059,472 8,376,951

$

1,374,049 8,127,729 3,845,305 3,235,386 12,211,275 4,327,076 -

$

- - -

$

- - - - - -

$

- - - - - - -

2.18% 12.92% 6.11% 1.27% 6.88% 57.32% 13.32%

NR NR NR

4M Plus Fund

Municipal Bonds Money Market Fund Commercial Paper

797,155

AA N/A N/A AAA

-

US Agencies US Treasuries

4,696,993 23,848,197

444,572

Total Investments

$

62,907,737

$

33,120,820

$

29,342,345

$ 444,572

$

-

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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