LARIMER COUNTY, COLORADO
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1997

NOTE 3 ­ DEPOSITS AND INVESTMENTS:

Deposits:

Colorado State Statutes, specifically the Public Deposit Protection Act of 1989, require all public monies to be deposited in financial institutions which have been designated as eligible public depositories. Eligible public depositories must pledge eligible collateral, as promulgated by the State banking board, having a market value in excess of one hundred two percent of the aggregate uninsured public deposits. Eligible collateral must be held in the custody of any federal reserve bank or any branch thereof, or of any depository trust company which is a member of the federal reserve system and which is supervised by the State banking board. The Statutes further restrict such deposits to eligible public depositories having their principal offices within the State of Colorado.

The bank balances of the County's deposits are categorized by level of risk as follows: Category A (the least level of risk) includes deposits with financial institutions that are insured by the Federal Deposit Insurance Corporation (FDIC) with securities held by the County or its agent in the County's name; Category B includes uninsured deposits collateralized with securities held by the pledging financial institution's trust department or agent in the County's name, including those collateralized in accordance with the Public Deposit Protection Act of 1989; and Category C (the highest level of risk) includes uninsured or uncollateralized funds held by the pledging financial institution, or by its trust department or agent but not in the County's name, that could be lost if the financial institution fails. The County does not have any deposits in Category C.
Category
Bank
Carrying
A
B
Balance
Amount
Primary government:
Demand deposits $ 1,679,019$ 5,315,337 $ 6,994,356$ 5,349,046
Certificates of deposits 600,000500,000 1,100,0001,100,000
Deposits in transit                -                -                - 1,758,931
Total Deposits$ 2,279,019 $ 5,815,337$ 8,094,356 $ 8,207,977
Component unit:
Demand deposits $ 131,309$ 467,044 $ 598,353$ 103,368
Certificates of deposits 100,0005,216 105,216105,216
$ 231,309 $ 472,260$ 703,569 $ 208,584

All deposits made by the County Treasurer in 1997 were done so in eligible public depositories, as defined by the Public Deposit Protection Act of 1989.

If a fund overdraws its share of a pooled cash account, the overdraft is reported as an interfund receivable in General Agency (an agency fund) and an offsetting interfund payable in the overdrawn fund. Cash deficits that were outstanding at year end are as follows:

December 31, 1997
Special Revenue Funds:
Employment and Training Services $ 296,262
Human Development 110,388
406,650
Internal Service Fund:
Estes Park Common Costs 13,205
Total$ 419,855

Investments:

Colorado State Statutes authorize the County to invest in any of the following securities with a maximum maturity date no more than five years from the date of purchase:

  1. U.S. Treasury Bills, notes or bonds; Federal Farm Credit Bank, Federal Land Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Company, Federal National Mortgage Association, and Export­Import Bank notes or bonds;

  2. Obligations of any other U.S. agency if control of the agency by the U.S. is at least as extensive as those above and the security is rated in the highest rating category by at least one nationally recognized rating agency at the time of purchase;

  3. Obligations of World Bank, Inter­American Asian or African Development Bank if the security is rated in one of the two highest rating categories by at least one nationally recognized rating agency at the time of purchase;

  4. General obligation bonds of any state, District of Columbia, U.S. territory or any of their subdivisions if the security is rated in one of the three highest rating categories by at least one nationally recognized rating agency at the time of purchase;

  5. Revenue bonds of any state, District of Columbia, U.S. territory or any of their subdivisions if the security is rated in one of the two highest rating categories by at least one nationally recognized rating agency at the time of purchase;

  6. Bankers acceptances issued by a state or national bank if the bank has combined capital and surplus of at least $250,000,000; Deposits of bank are insured by FDIC. Long-term debt of bank or holding company of bank is rated in one of three highest rating categories by more than one rating organization.

  7. Commercial paper if rated in the highest rating category by at least one nationally recognized rating agency at the time of purchase;

  8. Any obligation, certificate of participation or lease/purchase of the County;

  9. Repurchase agreements in securities listed in (a) or (b) above if the securities are marketable, have a market value equal to the funds invested at all times, title or perfected security investment is transferred to the public entity or custodian and the securities are delivered to the public entity or third party custodian or trustee for safekeeping;

  10. Money market funds, registered as an investment company, if the investment policies include an attempt to maintain constant share price, there is no sales or load fee added to the purchase or redemption price, there is a maximum maturity of one year or less and an average maturity of 180 days or less of securities in the fund, and the investments must consist only of securities listed above, perfected reverse repurchase agreements of less than 30 days relating to securities listed in (a) through (h) above, or securities not listed in (a) through (i) above that are tax exempt and do not exceed 15% of investments of the fund; and

  11. Guaranteed investment contracts issued by an insurance company with a Colorado certificate if the security is rated in the highest rating category by at least one nationally recognized rating agency at the time of purchase and the security is purchased with proceeds of the sale of securities or proceeds of certificates of participation or lease purchases (no refunding bond escrow may be invested).

Colorado State Statutes also authorize the County to invest in the Colorado Local Government Liquid Asset Trust (COLOTRUST), the Colorado Cooperative Liquid Assets Security System (COLOCLASS), the Colorado Surplus Asset Fund Trust (CSAFE), the Colorado Diversified Trust (CDT) and the Government Asset Pool (GAP), which are investment pools established for local governments in Colorado. Investments consist of U.S. Treasury bills, notes and note strips and repurchase agreements collateralized by U.S. Treasury Notes. The designated custodial bank provides safekeeping and depository services in connection with the direct investment and withdrawal functions of each pooled investment. All securities owned by each pooled investment are held by the Federal Reserve Bank in the account maintained for the custodial bank. The custodian's internal records identify the investments owned by each pool investor.

The County's investments are categorized by level of risk as follows: Category A (the least level of risk) includes investments that are insured or registered or for which the securities are held by the County or its agent in the County's name; Category B includes uninsured or unregistered investments for which the securities are held by the counterparty's trust department in the County's name; and Category C (the highest level of risk) includes uninsured or unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the County's name and that portion of the carrying amount of any repurchase agreement that exceeds the market value of the underlying securities. At December 31, 1997, the County only had investments in Category B. The County invested in COLOTRUST, COLOCLASS, CSAFE, CDT and GAP throughout 1997. The County's pooled investments cannot be categorized by level of risk because they are not evidenced by specific securities due to the nature of an investment pool. The deferred compensation plan investments also cannot be categorized since the specific securities belonging to Larimer County cannot be identified.

Category
Carrying
Market
B
Amount
Value
U.S. Government Securities $ 30,082,945$ 30,082,945 $ 30,613,942
Deferred compensation plan investments 8,475,081 8,475,081
Investment in COLOTRUST 455,241 463,776
Investment in COLOCLASS 653,715 652,527
Investment in CSAFE 229,248 232,285
Investment in CDT 6,102,7296,156,247
Investment in GAP 1,184,2301,187,077
Total Investments $ 47,183,189$ 47,780,935
Public Trustee - Investment in CDT $ 105,491 $ 106,406

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