2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

NOTE 4 – DEPOSITS AND INVESTMENTS

A. Deposits In accordance with applicable Minnesota Statutes, the City and the Component Unit maintains deposits at depository banks authorized by the City Council and the Commissioners. 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, 2024, the City and Commission’s bank balances were not exposed to custodial credit risk because they were insured through Federal Deposit Insurance Corporation (FDIC), National Credit Union Association (NCUA) and properly collateralized with securities held by the pledging financial institutions’ trust departments or agents in the City’s name.

As of December 31, 2024, the City had the following deposits:

City Deposits Component Unit Deposits

$

3,048,748 13,542,181

Total Deposits

$ 16,590,929

B. Investments As of December 31, 2024, the City held the following investments:

Years to Maturity

Less than One Year

Moody's Rating

Value

1-5 Years

5-10 Years

10-15 Years

Concentration

Pooled Investments:

Money Market Fund Certificate of Deposit

$

5,051,249 17,218,230

$

7,596,956 5,051,249

$

9,371,633 -

249,641 -

- -

5.79% 19.70%

NR NR

Agencies

FAMC FFCB FHLB

8,271,687

1,989,410

4,013,859

2,268,418 - 2,123,184 - 2,075,478 -

- - - - - -

20.11% 0.28% 14.56% 0.48% 3.56% 0.70% 15.76% 9.48% 1.89% 6.56% 1.13%

AAA AAA AAA AAA AAA AAA AAA AAA AAA

607,434

-

607,434

5,724,578 13,755,301 1,649,881

3,052,692 1,649,881 3,993,163

7,638,954

FNMA FHLMC

-

596,408

TVA

987,050

987,050

-

Agencies- Mortgage Backed

FNMA FHLMC

416,876

- - -

6,726

410,150

- 722,484

3,104,848

617,248

243,865 4,410,279 1,194,468 1,765,116

SBA

243,865

-

- - -

US Treasury Notes Municipal Bond

12,708,816 17,554,081

2,276,507 3,058,588

10,867,295 8,455,760

AAA-AA3

NR

Total Investments

$

87,293,896

$

29,655,496

$

42,175,317

$

14,740,599

$ 722,484

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