(5) Cash and Investments

 

State and local statutes place certain limitations on the nature of deposits and investments available to the City. Deposits (including demand deposits, term deposits and certificates of deposit) in any one financial institution may not exceed certain prescribed levels without collateralization by the financial institutions involved. Investments can also be made in securities issued by or unconditionally guaranteed by the U.S. government or agencies that have a maturity of less than one year from the date of purchase, repurchase agreements guaranteed by the U.S. government or agencies that have a maturity of less than one year from the date of purchase, repurchase agreements guaranteed by such securities with maturity dates of no more than 90 days from the date of purchase, and units in the Massachusetts Municipal Depository Trust ("MMDT").

 

In addition, the City's Pension Trust Fund has additional investment powers, most notably the ability to invest in common stocks, corporate bonds and other specified investments.

 

(Continued)

 

 

 

 

CITY OF REVERE, MASSACHUSETTS

Notes to General Purpose Financial Statements

Deposits

The City maintains deposits in several financial institutions. Of the total amount of bank recorded deposits at year-end of $11,967,197, $5,398,481 was collateralized by government agency securities, $414,214 was covered by federal depository insurance, and the remainder was uninsured and uncollateralized. The carrying amount of these deposits was $10,109,718.

 

Investments

The City categorizes investments according to the level of risk assumed by the City. Category 1 includes investments that are insured, registered or held by the City's agent in the City's name. Category 2 includes uninsured and unregistered investments held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsure and unregistered investments held by the counterparty, its trust department or its agent, but not in the City's name. Deferred compensation plan and pension plan funds are not categorized because they are managed investment pools.

 

Carrying Amount

Not Market
Category 1 Category 2 Category 3 Categorized Total Value

Deferred compensation plan $ -   -   -   1,385,695 1,385,695 1,385,695
Pension Trust fund -   -   -   29,349,482 29,349,482 29,349,482

Totals $ -   -   -   30,735,177 30,735,177 30,735,177

The composition of the City's investments fluctuates depending primarily on the timing of real estate tax receipts, proceeds from borrowings, collections of state and federal aid, and capital outlays throughout the year.