2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

NOTE 4 – DEPOSITS AND INVESTMENTS (CONTINUED)

B. Investments (Continued)

As of December 31, 2024, the component units had the following investments:

Years to Maturity

One Year Less than

Moody's

Value

1-5 Years

5-10 Years

10-15 Years

Concentration

Rating

Pooled Investments:

4M Fund

$

2,609,275 8,994,140 3,292,189 6,492,381 45,184,864 4,936,879 660,501

$

2,609,275 8,994,140 3,292,189 2,855,919 8,779,528 4,936,879 509,193

$

- - -

$

- - - - - -

$

- - - - - - -

3.61% 12.46% 4.56% 0.92% 6.84% 62.61% 9.00%

NR NR NR AA

4M Plus Fund

Municipal Bonds Money Market Fund Commercial Paper

151,308

-

N/A N/A

US Agencies US Treasuries

3,492,560 36,405,336

143,902

AAA

Total Investments

$

72,170,229

$

31,977,123

$

40,049,204

$ 143,902

$

-

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. Custodial Credit Risk – Investments: For an investment, this is the risk that in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City’s investment policy states all securities purchased, including appropriate collateral, shall be placed with an independent third party for custodial safekeeping. The Commission’s policy states they will minimize risk by only purchasing investments that are held in safekeeping with a 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 the SIPC (Securities Investor Protection Corporation). As of December 31, 2024, all investments of the City and the component units were insured, registered and held by the City or its agent and in the City’s name, or by the SPUC and in the SPUC’s name.

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