2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2018

NOTE 4 – DEPOSITS AND INVESTMENTS (CONTINUED) B. Investments (Continued)  Having all investments, other than those in direct obligations or agencies of the United States, secured by collateral or repurchase agreements, shall not exceed 50% of the aggregate investment portfolio. Mortgage backed securities shall not exceed 35% of the aggregate investment portfolio, at the time of investment (i.e., commercial paper or bankers’ acceptance).  Limiting investments in any one corporation to 5% of the aggregate investment portfolio. 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, 2018, 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, 2018. The City has the following recurring fair value measurements as of December 31, 2018:

Fair Value Measurement Using

Value

Level 1

Level 2

Level 3

Investments at Fair Value: Certificate of Deposit $

7,172,141 3,193,008

$

- -

$

7,172,141 3,193,008

$

- -

Commercial Paper

Mortgage FHLB

999,540

- - - -

999,540

- - - - - - -

FHLMC FNMA

3,333,240 8,655,464 11,809,193 21,389,285 1,198,464 57,750,335

3,333,240 8,655,464 11,809,193

Municipal Bond

US Treasury Notes US Treasury Bill

21,389,285 1,198,464

- -

Total/Subtotal

22,587,749 $

35,162,586 $

$

Investments at Amortized Cost: Money Market Fund

1,179,297

Total

58,929,632 $

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. $18,820,334 of $45,512,928 of the Component Unit’s investments at December 31, 2018 are valued using a quoted market prices (Level 2 inputs). $26,692,594 are investments at amortized cost. 64