HomeMy WebLinkAbout05(D) - Approval of 3rd Quarter 2026 Investment Report Report
ITEM: 5D
CITY COUNCIL AGENDA REPORT
MEETING DATE: October 27, 2026
PREPARED BY: Bradley Smith, Accountant
PRESENTED BY: Nicole Klekner, Finance Director
AGENDA ITEM: Approval of 3rd Quarter 2026 Investment Report
RECOMMENDED ACTION:
Approve the 2026 3rd Quarter Investment Report as presented.
BACKGROUND:
The purpose of this agenda item is for the Council to consider approval of the investment report
for the third quarter of 2026.
Staff has prepared a list of investments as of September 30, 2026. The Investment Report
Summary Narrative provides some supplementary information with respect to the investments
currently held and the allowable forms of investments permitted by Minnesota Statute.
The investment software provides the ability to generate reports and charts by broker, security
type, maturities, etc. The software also enables staff to track interest earned on an accrual basis
versus a cash basis as well as changes in market value.
ALTERNATIVES:
1. Motion and second as part of the consent agenda to approve the 2026 3rd Quarter
Investment Report as presented.
2. Motion and second to remove the Investment Report from the consent agenda for
additional discussion.
ATTACHMENTS:
1. 2026 Q3 Investment Summary Report (attach 1)
2. 2026 Q3 Investment Portfolio by Maturity Range Graph (attach 4)
3. 2026 Q3 Investment Portfolio by Security Type (attach 5)
4. 2026 Q3 Investment Portfolio by Security Type Graph (attach 3)
5. 2026 Q3 Year to Year Summary Analysis (attach 2)
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
YTM @
Cost Cost Value
Days to
Maturity
% of
Portfolio
0-1 Month 3.064 14,358,011 2 24.44%
1-3 Months 1.433 2,767,906 47 4.73%
3-6 Months 3.015 1,189,839 116 2.03%
6-9 Months 3.504 494,000 237 0.84%
9-12 Months 3.448 2,949,621 326 5.24%
1-2 Years 4.090 4,732,476 595 8.13%
2-3 Years 4.393 7,227,324 916 12.80%
3-4 Years 4.074 4,542,994 1,261 8.08%
4-5 Years 4.162 6,422,848 1,622 11.41%
5-10 Years 4.245 11,712,206 2,235 22.30%
Total / Average 3.733 56,397,224 975 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Maturity Range
September 30, 2026
Description
City of Prior Lake - Quarterly Investment Report
Description CUSIP/Ticker Settlement Date YTM @ Cost Face Amount/Shares Cost Value Book Value Market Value Maturity Date Days To Maturity Accrued Interest % of Portfolio
Cash - Northland Securities Cash CASH5845 2/3/2002 0.000 1,906,059.65 1,906,059.65 1,906,059.65 1,906,059.65 N/A 1 3.24
Morgan Stanley Cash CASH5089 12/31/2010 0.000 115,073.18 115,073.18 115,073.18 115,073.18 N/A 1 0.20
Oppenheimer Cash MM9905 12/27/2011 0.000 13,914.00 13,914.00 13,914.00 13,914.00 N/A 1 0.02
Sub Total / Average Cash 0.000 2,035,046.83 2,035,046.83 2,035,046.83 2,035,046.83 1 0.00 3.46
Amerant Bank 4.65 9/8/2028 02357QCF2 9/8/2023 4.650 249,000.00 249,000.00 249,000.00 248,180.79 9/8/2028 709 697.88 0.42
AMERASIA BK FLUSHING NY 4 2/15/2029 02357PAG4 2/15/2024 4.000 248,000.00 248,000.00 248,000.00 243,134.24 2/15/2029 869 407.67 0.42
American Express Natl 3 5/4/2027 02589ACK6 4/30/2022 3.000 245,000.00 245,000.00 245,000.00 243,057.15 5/4/2027 216 3,000.41 0.42
Bank of Belleville 4 6/15/2027 06063PDD4 12/15/2022 4.000 249,000.00 249,000.00 249,000.00 248,345.13 6/15/2027 258 409.32 0.42
BMW Bk 4.75 3/17/2028 055180AW83 3/17/2023 4.750 245,000.00 245,000.00 245,000.00 245,320.95 3/17/2028 534 414.49 0.42
BNY Mellon4.5 9/7/2028 05584CJJ6 9/7/2023 4.500 244,000.00 244,000.00 244,000.00 242,501.84 9/7/2028 708 691.89 0.42
Bridgewater Bk 4.8 3/29/2028 108622NK3 3/29/2023 4.800 245,000.00 245,000.00 245,000.00 245,499.80 3/29/2028 546 32.22 0.42
Carter Bank & Trust 3.8 9/13/2029 146102BB3 9/13/2024 3.800 249,000.00 249,000.00 249,000.00 241,370.64 9/13/2029 1,079 440.70 0.42
Celtic Bank 4.6 9/19/2028 15118RJ32 9/19/2023 4.600 249,000.00 249,000.00 249,000.00 247,881.99 9/19/2028 720 345.19 0.42
Central Fed Savings 4.5 9/14/2028 15347VAC5 9/14/2023 4.500 249,000.00 249,000.00 249,000.00 247,448.73 9/14/2028 715 491.18 0.42
CIBC Bank USA 4.5 5/25/2028 12547CBN7 5/25/2023 4.500 244,000.00 244,000.00 244,000.00 243,026.44 5/25/2028 603 3,850.52 0.42
Citizens Bk Batesville Ark 3.85 2/16/2029 173477BZ2 2/16/2024 3.850 248,000.00 248,000.00 248,000.00 242,293.52 2/16/2029 870 366.22 0.42
Customers Bk 4.95 10/27/2028 23204HPE2 10/27/2023 4.950 240,000.00 240,000.00 240,000.00 240,336.00 10/27/2028 758 5,077.48 0.41
Discover Bk 4.5 7/24/2028 2546736R2 7/26/2023 4.500 244,000.00 244,000.00 244,000.00 242,738.52 7/24/2028 663 1,985.42 0.42
Farmers BK 4.85 10/17/2028 30916PAA2 10/17/2023 4.850 248,000.00 248,000.00 248,000.00 248,426.56 10/17/2028 748 428.39 0.42
First Finl Bk3.3 8/2/2027 32022RSG3 8/1/2022 3.300 245,000.00 245,000.00 245,000.00 242,753.35 8/2/2027 306 642.37 0.42
First National Bank/Dama 5 10/31/2028 32117BGJ1 10/31/2023 5.000 248,000.00 248,000.00 248,000.00 248,736.56 10/31/2028 762 985.21 0.42
First Natl Bk 4.75 10/30/2028 32110YH73 10/30/2023 4.750 245,000.00 245,000.00 245,000.00 244,487.95 10/30/2028 761 0.00 0.42
First Premier Bank 3.65 9/26/2029 33610RVT7 9/26/2024 3.650 245,000.00 245,000.00 245,000.00 236,420.10 9/26/2029 1,092 98.00 0.42
Genoa Banking Company 4.95 10/31/2028 372348DH2 10/31/2023 4.950 243,000.00 243,000.00 243,000.00 243,303.75 10/31/2028 762 5,042.08 0.41
Hershey State Banl 3.65 9/26/2028 427883AV5 9/26/2024 3.650 240,000.00 240,000.00 240,000.00 234,564.00 9/26/2028 727 96.00 0.41
JPMORGAN CHASE BK N 4.75 7/31/2031-30 46659CZ29 7/31/2026 4.750 238,000.00 238,000.00 238,000.00 232,685.46 7/31/2031 1,765 1,889.33 0.40
Legacy Bk & Tr Co 3.5 7/29/2027-22 52470QBK9 8/1/2022 3.500 245,000.00 245,000.00 245,000.00 243,157.60 7/29/2027 302 23.49 0.42
Live Oak Bkg Co 3.55 8/2/2027-23 538036WY6 8/2/2022 3.550 249,000.00 249,000.00 249,000.00 247,229.61 8/2/2027 306 678.10 0.42
Mauch Chunk Trust 4.35 2/28/2029 577234DA2 3/28/2024 4.350 249,000.00 249,000.00 249,000.00 246,009.51 2/28/2029 882 59.35 0.42
Medallion Bk Salt 4.4 7/31/2028 58404DSW2 7/31/2023 4.400 245,000.00 245,000.00 245,000.00 243,336.45 7/31/2028 670 0.00 0.42
Merrick Bk 4.85 11/6/2029 59013KXW1 11/6/2023 4.850 245,000.00 245,000.00 245,000.00 244,448.75 11/6/2029 1,133 781.32 0.42
Morgan Stanley Bank Step 11/28/2027 61765QP52 9/2/2021 1.004 249,000.00 249,000.00 249,000.00 239,351.25 11/28/2027 424 225.12 0.42
MORGAN STANLEY PRIVATE BK 5.05 11/8/2028 61768EE82 11/8/2023 5.050 243,000.00 243,000.00 243,000.00 243,777.60 11/8/2028 770 4,874.98 0.41
NORTHEAST BK LEWISTON 3.7 9/23/2027 66405SFA3 9/23/2024 3.700 245,000.00 245,000.00 245,000.00 243,189.45 9/23/2027 358 173.85 0.42
Old Dominion Natl Bk 4 1/29/2029 679585CL1 1/29/2024 4.000 249,000.00 249,000.00 249,000.00 244,219.20 1/29/2029 852 0.00 0.42
Ponce De Leon Fed Bk 3.5 9/15/2027 732329BD8 9/15/2022 3.500 245,000.00 245,000.00 245,000.00 242,799.90 9/15/2027 350 352.40 0.42
SALLIE MAE BK SALT LAKE CITY 3.9 8/13/2030 795451EB5 8/13/2025 3.900 245,000.00 245,000.00 245,000.00 235,574.85 8/13/2030 1,413 1,256.55 0.42
Schuyler Svgs Bk 4.35 7/27/2028 80832MAA5 7/27/2023 4.350 244,000.00 244,000.00 244,000.00 242,035.80 7/27/2028 666 1,890.16 0.42
Southern First Bank NA 4.85 10/17/2028 84287PJB9 11/7/2023 4.850 244,000.00 244,000.00 244,000.00 244,253.76 10/17/2028 748 5,382.04 0.42
Third Fed Sav & Ln 3.3 8/19/2027 88413QDN5 8/19/2022 3.300 245,000.00 245,000.00 245,000.00 242,481.40 8/19/2027 323 930.33 0.42
UBS Bk USA 4.4 7/26/2028 90355GEX0 7/26/2023 4.400 245,000.00 245,000.00 245,000.00 243,368.30 7/26/2028 665 118.14 0.42
Uinta Bk Mtn 4.4 3/22/2028 903572FT7 3/22/2023 4.400 245,000.00 245,000.00 245,000.00 244,122.90 3/22/2028 539 236.27 0.42
Univest Bank & Trust 4.5 6/21/2028 91527PCD7 6/21/2023 4.500 249,000.00 249,000.00 249,000.00 247,986.57 6/21/2028 630 276.29 0.42
Valley Central 4 4/28/2028 91944RAZ1 4/28/2023 4.000 249,000.00 249,000.00 249,000.00 246,392.97 4/28/2028 576 54.58 0.42
Winter Hill Bank 3.5 8/26/2027-23 975875BH7 8/26/2022 3.500 245,000.00 245,000.00 245,000.00 242,949.35 8/26/2027 330 93.97 0.42
Sub Total / Average Certificate Of Deposit 4.154 10,075,000.00 10,075,000.00 10,075,000.00 9,979,198.69 685 44,798.91 17.14
FAMC 2 10/27/2031 31422XPG1 9/5/2025 3.800 600,000.00 541,299.65 551,506.13 512,106.00 10/27/2031 1,853 5,100.00 1.02
FAMC 4.17 5/24/2029 31422XYY2 1/19/2024 4.580 325,000.00 318,724.25 321,891.06 315,932.50 5/24/2029 967 4,743.38 0.55
Sub Total / Average FAMC Bond 4.074 925,000.00 860,023.90 873,397.19 828,038.50 1,542 9,843.38 1.57
FFCB 0.72 10/27/2026-21 3133EMES7 6/18/2021 1.000 500,000.00 492,715.00 499,899.49 498,745.00 10/27/2026 27 1,530.00 0.85
FFCB 0.74 11/24/2026-21 3133EMHC9 4/14/2021 1.053 450,000.00 442,350.00 449,794.76 447,651.00 11/24/2026 55 1,165.50 0.77
FFCB 1.26 10/15/2030-24 3133EMDG4 9/13/2024 3.700 500,000.00 434,025.00 456,194.74 427,090.00 10/15/2030 1,476 2,887.50 0.85
FFCB 1.45 6/11/2030-24 3133ELH31 9/13/2024 3.620 500,000.00 444,170.00 464,057.94 438,615.00 6/11/2030 1,350 2,195.14 0.85
FFCB 1.48 9/16/2033-26 3133EL7L2 7/17/2026 4.400 350,000.00 287,773.50 289,556.15 271,645.50 9/16/2033 2,543 201.44 0.60
FFCB 1.94 4/19/2032-26 3133EMT69 4/24/2026 4.122 500,000.00 442,650.00 446,819.48 419,785.00 4/19/2032 2,028 4,338.06 0.85
FFCB 1.94 6/30/2031-25 3133EMN24 5/5/2025 4.070 425,000.00 376,154.75 387,306.34 367,650.50 6/30/2031 1,734 2,061.25 0.72
FFCB 2 9/27/2033-26 3133EM6J6 4/24/2026 4.267 1,000,000.00 857,000.00 865,380.76 803,910.00 9/27/2033 2,554 166.67 1.70
FFCB 2.05 12/23/2031-21 3133ENJK7 7/24/2026 4.475 1,000,000.00 884,500.00 888,470.68 856,560.00 12/23/2031 1,910 5,560.27 1.70
FFCB 2.14 6/28/2033-26 3133EMN32 4/23/2026 4.150 700,000.00 613,382.00 618,665.60 572,166.00 6/28/2033 2,463 3,828.22 1.19
FFCB 2.87 2/25/2030 3133ENPL8 9/9/2024 3.685 1,000,000.00 960,000.00 975,057.64 932,430.00 2/25/2030 1,244 2,790.28 1.70
FFCB 3.05 5/18/2029 3133ENXB1 1/19/2024 4.030 325,000.00 309,845.25 317,516.08 309,617.75 5/18/2029 961 3,634.58 0.55
FFCB 3.3 3/23/2032-26 3133ENSP6 4/23/2026 4.070 1,000,000.00 959,850.00 962,822.70 906,590.00 3/23/2032 2,001 641.67 1.70
FFCB 3.3 3/23/2032-26 3133ENSP6 7/24/2026 4.450 290,000.00 273,452.60 273,996.45 262,911.10 3/23/2032 2,001 186.08 0.49
FFCB 3.8 4/5/2032-26 3133ENTX8 8/10/2026 4.400 250,000.00 242,552.50 242,736.43 229,580.00 4/5/2032 2,014 4,618.06 0.43
FFCB 4.65 12/16/2030-27 3133EWTH3 7/24/2026 4.650 1,000,000.00 1,000,000.00 1,000,000.00 978,120.00 12/16/2030 1,538 13,504.11 1.70
Sub Total / Average FFCB Bond 3.853 9,790,000.00 9,020,420.60 9,138,275.24 8,723,066.85 1,681 49,308.83 16.66
FHLB 1 12/30/2026-21 3130ANY87 10/20/2021 1.205 500,000.00 494,850.00 499,752.95 496,070.00 12/30/2026 91 1,250.00 0.85
FHLB 1.25 11/10/2026-22 3130APLR4 11/10/2021 1.250 450,000.00 450,000.00 450,000.00 448,519.50 11/10/2026 41 2,187.50 0.77
FHLB 1.35 2/18/2031-24 3130AKZS8 9/13/2024 3.770 500,000.00 430,995.00 452,939.12 423,495.00 2/18/2031 1,602 225.00 0.85
FHLB 1.48 11/19/2032 3130AKG83 10/2/2025 3.920 430,000.00 365,272.10 374,291.77 343,922.60 11/19/2032 2,242 2,315.79 0.73
FHLB 1.875 12/10/2031-25 3130ALJN5 12/30/2024 4.550 500,000.00 421,115.00 440,991.78 423,420.00 12/10/2031 1,897 520.83 0.85
FHLB 2.375 8/15/2029 3130AGVG7 2/12/2024 4.310 270,000.00 244,620.00 256,748.38 250,119.90 8/15/2029 1,050 801.56 0.46
FHLB 3.375 9/10/2032 3130AT4C8 4/24/2026 4.078 1,000,000.00 960,800.00 963,473.87 909,960.00 9/10/2032 2,172 1,875.00 1.70
FHLB 4.25 9/10/2032 3130ATHY6 8/22/2025 4.090 500,000.00 504,847.29 504,087.08 476,745.00 9/10/2032 2,172 1,180.56 0.85
As of 9/30/2026
City of Prior Lake
Portfolio Holdings
Investment Portfolio - by Security Type
Cash
Certificate Of Deposit
FAMC Bond
FFCB Bond
FHLB Bond
FHLB Step 9/30/2031-25 3130AP6G5 8/15/2025 4.103 500,000.00 468,050.00 473,920.12 453,930.00 9/30/2031 1,826 0.00 0.85
FHLN 5159508 1.25 10/16/2026-21 3130ALW83 4/16/2021 1.250 216,666.67 216,666.67 216,666.67 216,400.17 10/16/2026 16 1,233.80 0.37
Sub Total / Average FHLB Bond 3.415 4,866,666.67 4,557,216.06 4,632,871.74 4,442,582.17 1,487 11,590.04 8.28
FHLMC 1.3 9/30/2033-26 3134GWVK9 4/24/2026 4.200 250,000.00 204,115.00 206,801.20 190,495.00 9/30/2033 2,557 0.00 0.43
FHLMC 1.31 8/17/2033-26 3134GWPF7 4/23/2026 4.160 518,000.00 425,687.22 431,212.86 397,373.34 8/17/2033 2,513 810.53 0.88
FHLMC 1.4 7/28/2032-26 3134GWGE0 4/23/2026 4.100 100,000.00 85,215.00 86,248.92 80,462.00 7/28/2032 2,128 241.11 0.17
FHLMC 1.4 8/17/2033-26 3134GWNW2 4/23/2026 4.160 480,000.00 397,156.80 402,115.61 370,622.40 8/17/2033 2,513 802.67 0.82
Sub Total / Average FHLMC Bond 4.163 1,348,000.00 1,112,174.02 1,126,378.59 1,038,952.74 2,493 1,854.31 2.29
FNMA 1.5 12/18/2031-25 3135GAA50 5/5/2025 4.180 200,000.00 169,280.00 175,797.52 165,354.00 12/18/2031 1,905 850.00 0.34
Sub Total / Average FNMA Bond 4.180 200,000.00 169,280.00 175,797.52 165,354.00 1,905 850.00 0.34
League of Minnesota Cities - 4M Fund LGIP LGIP5101M 11/30/2010 3.703 92,979.50 92,979.50 92,979.50 92,979.50 N/A 1 0.16
League of Minnesota Cities - 4M Plus Fund LGIP LGIP5101MP 11/30/2010 3.727 10,040,564.22 10,040,564.22 10,040,564.22 10,040,564.22 N/A 1 17.09
League of Minnesota Cities LGIP LGIP5213M 7/29/2026 3.703 1,480,038.76 1,480,038.76 1,480,038.76 1,480,038.76 N/A 1 2.52
Sub Total / Average Local Government Investment Pool 3.724 11,613,582.48 11,613,582.48 11,613,582.48 11,613,582.48 1 0.00 19.76
AUSTIN TEX CMNTY COLLEGE 1.78 2/1/2030 052404QL7 9/11/2024 3.700 500,000.00 453,475.00 471,172.93 446,905.00 2/1/2030 1,220 1,458.61 0.85
AUSTIN TEX CMNTY COLLEGE DIST TX 1.921 8/1/2031-30 052403HG0 8/22/2025 4.000 545,000.00 485,595.00 496,654.73 465,130.25 8/1/2031 1,766 1,715.83 0.93
BROCKTON MASS TAXABLE GO PENSION BDS 2.558 11/1/20 111746JF1 8/14/2025 4.000 500,000.00 460,660.00 467,800.12 431,375.00 11/1/2031 1,858 5,293.64 0.85
Cabot-Las Positas 1.287 8/1/2027 15722TJS1 4/28/2022 3.500 550,000.00 491,991.50 540,789.90 535,216.00 8/1/2027 305 1,160.09 0.94
California St 2.5 10/1/2029 13063DRE0 8/12/2024 4.100 500,000.00 463,270.00 478,521.96 461,185.00 10/1/2029 1,097 6,215.28 0.85
California St 4.35 11/1/2032 13063ESC1 11/6/2025 4.030 215,000.00 219,151.65 218,618.05 200,575.65 11/1/2032 2,224 3,870.90 0.37
California St 4.875 9/1/2030 13063EHU3 7/18/2025 4.101 230,000.00 238,144.30 236,233.37 226,014.10 9/1/2030 1,432 903.23 0.39
Cecil Cnty MD 1.05 11/1/2026 1498433N2 9/23/2021 0.970 500,000.00 501,985.00 500,034.06 498,430.00 11/1/2026 32 2,172.92 0.85
Colorado HSG & FIN 6 11/1/2029 19648G-MF-6 9/11/2024 4.253 1,000,000.00 1,079,960.00 1,048,052.68 1,018,730.00 11/1/2029 1,128 24,833.33 1.70
COLUMBUS MINN 1.8 2/1/2033-28 199339FF4 4/23/2026 4.129 325,000.00 280,670.00 283,534.62 261,261.00 2/1/2033 2,316 958.75 0.55
CONNECTICUT ST 4.79 3/15/2031 20772KZM4 5/7/2025 4.382 500,000.00 510,460.00 507,959.97 486,060.00 3/15/2031 1,627 997.92 0.85
COOK CNTY MINN 1.85 2/1/2033-27 216147NT1 4/23/2026 4.129 320,000.00 277,286.40 280,046.57 256,300.80 2/1/2033 2,316 970.22 0.54
Enfield Conn Taxable 1.39 8/1/2027 292749UK2 4/6/2022 3.000 335,000.00 308,658.95 330,865.15 325,643.45 8/1/2027 305 763.15 0.57
Franklin Twp 1.623 2/1/2029 355064KL9 10/4/2023 5.350 250,000.00 207,310.00 231,253.24 230,317.50 2/1/2029 855 664.98 0.43
Goose Creek Tex 4.5 2/15/2027 382604Z25 11/3/2022 4.700 500,000.00 496,125.00 499,658.31 499,495.00 2/15/2027 138 2,812.50 0.85
Hawaii St 1.892 10/1/2029 419792B47 8/14/2024 3.901 435,000.00 394,710.30 411,415.26 394,684.20 10/1/2029 1,097 4,092.24 0.74
Hawaii St GO Ref 2.802 10/1/2027-26 419792KL9 7/28/2022 3.350 100,000.00 97,413.00 99,499.29 98,121.00 10/1/2027 366 1,393.22 0.17
KENNEBUNKPORT ME 5 10/1/2029 489299BK2 10/1/2024 3.700 295,000.00 312,357.80 305,427.99 292,876.00 10/1/2029 1,097 7,334.03 0.50
Mason & Kitsap Cntys 1.583 12/1/2028 575181HB1 5/19/2023 4.150 445,000.00 389,032.35 423,061.12 411,727.35 12/1/2028 793 2,328.55 0.76
Massachusetts St 0.986 11/1/2026 57582RK96 6/30/2021 1.000 500,000.00 499,635.00 499,994.01 498,470.00 11/1/2026 32 2,040.47 0.85
Milwaukee Cnty Wis 2 12/1/2026 6022453V2 11/23/2021 1.300 500,000.00 516,960.00 500,573.35 497,370.00 12/1/2026 62 3,305.56 0.85
Minnesota St 7 11/1/2028 604146GK0 11/8/2023 5.251 250,000.00 268,952.50 257,945.47 259,312.50 11/1/2028 763 7,243.06 0.43
New York NY 1.92 11/1/2029 64971XUUO 9/25/2023 5.150 275,000.00 228,998.00 251,720.39 249,645.00 11/1/2029 1,128 2,185.33 0.47
New York NY 2.36 8/1/2031-30 64966QFX3 7/23/2025 4.250 400,000.00 360,196.00 368,048.24 347,672.00 8/1/2031 1,766 1,547.11 0.68
New York NY 3.7 8/1/2029-25 64966LYZ8 11/24/2023 5.100 250,000.00 232,897.50 241,469.34 239,480.00 8/1/2029 1,036 1,515.97 0.43
New York NY City 4.2 11/1/2030 64971QRB1 5/5/2025 4.350 500,000.00 496,370.00 497,298.31 475,760.00 11/1/2030 1,493 8,691.67 0.85
NEW YORK NY CITY 4.87 5/31/2031 64972JGZ5 8/12/2025 4.120 500,000.00 519,160.00 515,414.84 491,210.00 5/31/2031 1,704 10,078.19 0.85
New York State TFA 4.2 11/1/2028-23 64971Q7N7 9/7/2023 4.850 250,000.00 242,657.50 247,023.21 245,852.50 11/1/2028 763 4,345.83 0.43
NEWARK NJ GO BDS 2019 4.3 11/1/2030 650367PB5 8/22/2025 4.091 600,000.00 605,772.00 604,542.75 577,122.00 11/1/2030 1,493 10,678.33 1.02
PA HSG FIN AGY 4.993 10/1/2033 70879VBN1 8/19/2026 5.000 565,000.00 564,728.80 564,733.18 544,106.30 10/1/2033 2,558 3,212.86 0.96
SAN ANGELO TEX INDPT 1.815 2/15/2034-30 796116TR2 7/24/2026 4.750 785,000.00 640,104.70 643,670.71 606,726.50 2/15/2034 2,695 1,780.97 1.34
San Bernardino Calif 2.332 8/1/2032-30 796711H85 10/10/2025 4.206 300,000.00 267,000.00 271,710.49 252,426.00 8/1/2032 2,132 1,146.57 0.51
SHAKOPEE MINN INDPT SCH DIST NO 720 1.785 2/1/2033 819190XB0 4/23/2026 4.129 425,000.00 366,656.00 370,426.21 338,822.75 2/1/2033 2,316 1,243.30 0.72
SIOUX FALLS S D 3.65 11/15/2030-28 829594ML1 9/18/2024 3.720 500,000.00 498,070.00 498,706.75 467,080.00 11/15/2030 1,507 6,843.75 0.85
Springboro Ohio 5 12/1/2027 85023MAF2 7/12/2022 4.002 245,000.00 256,755.10 247,550.52 245,009.80 12/1/2027 427 4,049.31 0.42
St Louis Park Minn 4.5 2/1/2027 791740V34 9/7/2022 3.345 190,000.00 198,863.50 190,683.50 189,760.60 2/1/2027 124 1,401.25 0.32
STATE BK INDIA NEW YORK NY 4 8/21/2030 856288CM5 8/21/2025 4.000 245,000.00 245,000.00 245,000.00 236,368.65 8/21/2030 1,421 1,061.67 0.42
TARRANT REGL WTR DIST TEX 1.45 9/1/2029 876448EB3 9/11/2024 3.650 500,000.00 450,390.00 470,851.39 449,970.00 9/1/2029 1,067 584.03 0.85
Toledo Ohio City Sch 5 12/1/2027 889294RT3 9/28/2022 4.520 100,000.00 102,186.00 100,493.87 100,150.00 12/1/2027 427 1,652.78 0.17
Waukesha Wis 1.2 10/1/2027 943080UZ2 9/1/2022 3.660 375,000.00 332,557.50 366,630.41 362,152.50 10/1/2027 366 2,237.50 0.64
Wicomico Cnty MD 2 12/1/2026 967546BA9 5/13/2022 3.450 380,000.00 356,975.80 379,141.61 378,259.60 12/1/2026 62 2,512.22 0.65
Winthrop Minn 2 2/1/2029-28 976367PN6 11/24/2023 5.100 225,000.00 193,556.25 210,820.46 208,633.50 2/1/2029 855 737.50 0.38
YSLETA TEX INDPT SCH 0 8/15/2030 98816PDU3 4/14/2025 4.447 510,000.00 403,246.80 432,495.75 415,002.30 8/15/2030 1,415 0.00 0.87
Sub Total / Average Municipal Bond 3.918 17,415,000.00 16,515,945.20 16,807,544.08 16,216,409.80 1,224 150,034.62 29.63
T-Note 0.625 11/30/2027 91282CAY7 5/5/2022 3.040 500,000.00 438,535.00 487,133.13 477,150.00 11/30/2027 426 1,041.67 0.85
Sub Total / Average Treasury Note 3.040 500,000.00 438,535.00 487,133.13 477,150.00 426 1,041.67 0.85
Total / Average 3.733 58,768,295.98 56,397,224.09 56,965,026.80 55,519,382.06 975 269,321.76 100
FHLMC Bond
FNMA Bond
Local Government Investment Pool
Municipal Bond
Treasury Note
YTM @
Cost Cost Value
Days to
Maturity
% of
Portfolio
Cash - 2,035,047 1 3.46%
Certificate of Deposit 4.154 10,075,000 685 17.15%
FAMC Bond 4.074 860,024 1,542 1.58%
FFCB Bond 3.853 9,020,421 1,681 16.66%
FHLB Bond 3.415 4,557,216 1,487 8.28%
FHLMC Bond 4.163 1,112,174 2,493 2.29%
FNMA Bond 4.180 169,280 1,905 0.34%
LGIP 3.724 11,613,582 1 19.76%
Municipal Bond 3.918 16,515,945 1,224 29.63%
Treasury Note 3.040 438,535 426 0.85%
Total / Average 3.733 56,397,224 975 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Security Type
September 30, 2026
Description
City of Prior Lake - Quarterly Investment Report
4646 Dakota Street SE
Prior Lake, MN 55372
INVESTMENT REPORT SUMMARY NARRATIVE
The attached “Investment Portfolio – by Security Type” identifies the various types of investments and
the brokers/banks the City of Prior Lake uses for investment purposes.
As of September 30, 2026, the cost value of the investment portfolio is $56,397,224. This decreased
$2.3M from June 30, 2026.
The ‘weighted average yield to maturity at cost’ of the investment portfolio is currently 3.72%, which is
an increase from 3.41% as of June 30. The yield will fluctuate due in part to the balances that are in the
short-term money market accounts. At the end of September, the balance in the 4M money market was
$11.6M.
rd
The following table shows the treasury rates for the 3 quarter of 2026 compared to the previous two
years. Short-term yields in 2026 are comparable or higher than a year prior, while lower or comparable
to two years prior. Short-term securities are necessary to meet cash flow needs for payments to vendors
(including construction contracts) and payroll. Mid-to-long-term yields in 2026 are higher compared to
both of the two years prior.
Interest rates and bond prices exhibit an inverse relationship: when interest rates increase, bond prices
decrease, and when rates decrease, bond prices increase. This occurs because newly issued bonds
offer higher yields as interest rates rise, making existing lower-yield bonds less attractive and reducing
their market price. Conversely, when interest rates fall, existing higher-yield bonds become more ap-
pealing, increasing prices. As of September 30, 2026, the cost value of the portfolio is greater than the
market value of the investments by $878K. The change in the fair value of the securities is adjusted
against interest earnings in each of the funds. This is a paper loss for the third quarter of 2026; no actual
gain/loss is realized because the City holds the securities until maturity.
-9/30/268/31/267/31/26 US Treasury Yield Curve 10 yr 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50
The chart below shows how rates offered by financial institutions increased significantly for all terms
during September of 2026, after holding steady during August.
As the attached chart titled Portfolio Holdings Distribution by Maturity Range indicates, approximately
24% or $14.4M matures within 1 month. Of that total, $11.6M is in the 4M investment pool. These short-
term securities are necessary to meet cash flow needs for payments to vendors (including construction
contracts) and payroll. These funds will be invested as cash flow needs allow and when the appropriate
security (type, rate, and maturity) becomes available. Staff continues to look for opportunities to invest
funds for our long-term cash needs, primarily for annual debt service and future capital projects.
The City’s investment portfolio amount is a pool of funds identified on the monthly Treasurer’s Report.
As shown on the September Treasurer’s Report, the book value of cash and investments, is $58.9M.
Of this balance, $56.8M is investments and $2.1M is cash. Because City funds are pooled for invest-
ment purposes, interest is allocated to each fund monthly and is based upon each individual fund’s
proportionate share of the total amount. Overall, the total investment pool does not represent excess
reserves but rather available financial resources. In most instances, these funds were established and
restricted for specific and designated purposes by either Minnesota Statutes or City Code to accomplish
the goals and objectives of the City. The constraints for each of the funds are noted on the Treasurer’s
Report.
Investments for local governments are restricted to only those permitted by Minnesota Statutes. Per the
City of Prior Lake Investment Policy, the City has chosen to limit its allowable investments as follows:
1. Bonds, notes certificates of indebtedness, treasury bills or other securities issued by
the United States of America, its agencies and allowable instrumentalities;
2. Interest bearing checking and savings accounts, or any other investments constitut-
ing direct obligations of any bank;
3. Certificates of deposit at state and federally chartered institutions that are limited to
the amount of coverage provided by the Federal Deposit Insurance Corporation;
4. Money market accounts that are invested in above referenced government securities;
2
5. State and local securities which have at the time of investment one of the three high-
est credit ratings by a nationally recognized rating agency;
6. Investments may be made only in those savings banks or savings and loan associa-
tions the shares, or investment certificates of which are insured by the Federal De-
posit Insurance Corporation or the National Credit Union Association;
7. Investment products that are considered as derivatives are specifically excluded from
approved investments.
The breakdown of all security types held by the City is shown graphically in the attached document titled
Investment Portfolio – Diversification, by Security Type.
The investment policy also requires that all investment maturities shall not extend beyond ten (10) years
with no more than 20% maturing beyond five (5) years.
3
Change
from one
9/30/2025 12/31/2025 3/31/2026 6/30/2026 9/30/2026 year prior
Market Value 14,068,240 16,545,469 16,401,571 18,069,394 13,648,629 (419,611)
1 1 1 1 1 0
3.66% 2.48% 1.76% 2.82% 3.17%-0.49%
Fixed Income Assets
42,228,163 38,486,323 35,949,634 40,600,483 42,748,595 520,432
42,444,924 38,923,497 36,280,986 40,669,461 41,870,753 (574,172)
1,030 1,070 1,049 1,212 1,270 240
992 1,036 1,014 1,141 1,142 150
3.47% 3.61% 3.62% 3.68% 3.89%0.42%
Total Portfolio Value
56,296,403 55,031,792 52,351,205 58,669,876 56,397,224 100,821
56,513,164 55,468,966 52,682,557 58,738,855 55,519,382 (993,782)
281,553 226,552 241,991 234,248 269,322 (12,231)
216,761 437,174 331,352 68,978 -877,842 (1,094,603)
778 756 729 852 975 197
749 732 704 802 877 128
3.52% 3.27% 3.04% 3.41% 3.72% 0.20%
BENCHMARK
90 Day T-Bill 4.02% 3.67% 3.70% 3.87% 4.20% 0.18%
3.83%3.59%3.72%4.01%4.33%0.50%
3.68%3.48%3.68%3.98%4.54%0.86%
Weighted Average Yield
to Maturity @ Cost
6 Month Treasury
1 Year Treasury
Cost Value
Market Value
Accrued Interest
Unrealized Gain / Loss
WAM (1) in Days
WAM / Callable (1) in Days
Weighted Average Yield to
Maturity @ Cost
CITY OF PRIOR LAKE, MINNESOTA
Quarterly Investment Report
September 30, 2026
Local Government
Investment Pools / Money
Market
Quarterly
WAM (1) in Days
Weighted Average Yield to
Maturity
Cost Value
Market Value
WAM (1) in Days
WAM / Callable (1) in Days
City of Prior Lake - Quarterly Investment Report