Laserfiche WebLink
City of Louisville <br />Notes to the Financial Statements <br />December 31, 2014 <br />Note 3: Deposits and investments (continued) <br />B. Investments (continued) <br />custodian's internal records identify the investments owned by the participating <br />governments. <br />Interest Rate Risk — In accordance with the City's Investment Policy and State <br />statutes, the City manages its exposure to declines in fair value losses arising from <br />increased interest rates by limiting the maturity date of investment securities to five <br />years from the date of purchase. <br />Credit Risk— The City's Investment Policy and Colorado statutes limit investments <br />in money market funds to those that maintain a constant share price, with a <br />maximum remaining maturity in accordance with Rule 2a-7, and either have assets <br />of one billion dollars or the highest rating issued by a NRSRO. State statutes limit <br />investments in U.S. Agency securities to the highest rating issued by at least two <br />N RSROs. <br />Concentration of Credit Risk — The City's Investment Policy and State statutes do <br />not limit the amount the City may invest in one issuer. At December 31, 2014, the <br />City's investments in US Treasury securities represented 35% of total investments, <br />Federal Home Loan Bank securities represented 20% of total investments, and <br />Fannie Mae securities represented 14% of total investments. <br />Note 4: Receivables <br />A. Property taxes <br />Property taxes are attached as an enforceable lien on property as of January 1. <br />Taxes are certified by December 31, levied on January 1 and paid in either one <br />installment on April 30, or two installments on February 28 and June 15. Boulder <br />County bills and collects the City's property taxes. Property taxes are recognized <br />as receivables and deferred revenues when a lien is placed on the property, and <br />as revenue when due for collection in the following year. <br />B. Allowance for doubtful accounts <br />Due to the City's ability to successfully collect on accounts, the allowance for <br />doubtful accounts in the Water and Wastewater Fund at December 31, 2014, was <br />$0. <br />Note 5: Inter -fund receivables/payables, advances, and transfers <br />The advances to/from funds represent interfund loans. As of December 31, 2014, <br />there was an outstanding interfund loan from the Water & Wastewater Utility Fund <br />to the Golf Course Fund in the amount of $1,357,495. This loan originated from a <br />51 <br />