HomeMy WebLinkAbout05(D) - Approval of 3rd Quarter 2025 Investment Report Report
ITEM: 5D
CITY COUNCIL AGENDA REPORT
MEETING DATE: October 28, 2025
PREPARED BY: Angela Gieseke, Financial Analyst / Accountant
PRESENTED BY: Nicole Klekner, Finance Director
AGENDA ITEM: Approval of 3rd Quarter 2025 Investment Report
RECOMMENDED ACTION:
Approve the 2025 3rd Quarter Investment Report as presented.
BACKGROUND:
The purpose of this agenda item is for the City Council to consider approval of the investment
report for the third quarter of 2025.
Staff has prepared a list of investments as of September 30, 2025. 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 2025 3rd Quarter
Investment Report as presented.
2. Motion and second to remove the Investment Report from the consent agenda for
additional discussion.
ATTACHMENTS:
1. 2025 Q3 Investment Summary Report (attach 1)
2. 2025 Q3 Year to Year Summary Analysis (attach 2)
3. 2025 Q3 Investment Portfolio by Security Type Graph (attach 3)
4. 2025 Q3 Investment Portfolio by Maturity Range Graph (attach 4)
5. 2025 Q3 Investment Portfolio by Security Type (attach 5)
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
YTM @
Cost Cost Value
Days to
Maturity
% of
Portfolio
0-1 Month 3.535 14,739,303 1 25.63%
1-3 Months 2.283 3,177,655 63 5.38%
3-6 Months 3.765 2,291,689 158 4.01%
6-9 Months 3.742 1,464,620 208 2.60%
9-12 Months 1.004 1,983,000 297 3.45%
1-2 Years 2.560 8,355,292 541 14.82%
2-3 Years 4.162 5,232,476 946 9.20%
3-4 Years 4.393 7,227,324 1,281 13.10%
4-5 Years 4.074 4,542,994 1,626 8.27%
5-10 Years 4.064 7,282,050 2,086 13.54%
Total / Average 3.537 56,296,403 778 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Maturity Range
September 30, 2025
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 1,375,668.43 1,375,668.43 1,375,668.43 1,375,668.43 N/A 1 2.40
Morgan Stanley Cash CASH5089 12/31/2010 0.000 307,480.93 307,480.93 307,480.93 307,480.93 N/A 1 0.54
Oppenheimer Cash MM9905 12/27/2011 0.000 83,440.30 83,440.30 83,440.30 83,440.30 N/A 1 0.15
Sub Total / Average Cash 0.000 1,766,589.66 1,766,589.66 1,766,589.66 1,766,589.66 1 0.00 3.08
1st Security Bk of Wash 4.05 6/16/2026 33625CFL8 12/16/2022 4.050 249,000.00 249,000.00 249,000.00 249,373.50 6/16/2026 259 386.80 0.43
Amerant Bank 4.65 9/8/2028 02357QCF2 9/8/2023 4.650 249,000.00 249,000.00 249,000.00 255,929.67 9/8/2028 1,074 697.88 0.43
AMERASIA BK FLUSHING NY 4 2/15/2029 02357PAG4 2/15/2024 4.000 248,000.00 248,000.00 248,000.00 250,450.24 2/15/2029 1,234 407.67 0.43
American Express Natl 3 5/4/2027 02589ACK6 4/30/2022 3.000 245,000.00 245,000.00 245,000.00 242,265.80 5/4/2027 581 3,000.41 0.43
Bank Hapoalim 0.95 7/23/2026 06251A2Y5 7/23/2021 0.950 245,000.00 245,000.00 245,000.00 239,357.65 7/23/2026 296 439.99 0.43
Bank of Belleville 4 6/15/2027 06063PDD4 12/15/2022 4.000 249,000.00 249,000.00 249,000.00 250,284.84 6/15/2027 623 409.32 0.43
BankUnited Savings Miami 0.95 3/31/2026 066519QT9 3/31/2021 0.950 245,000.00 245,000.00 245,000.00 241,452.40 3/31/2026 182 0.00 0.43
BMW Bk 4.75 3/17/2028 055180AW83 3/17/2023 4.750 245,000.00 245,000.00 245,000.00 251,267.10 3/17/2028 899 414.49 0.43
BNY Mellon4.5 9/7/2028 05584CJJ6 9/7/2023 4.500 244,000.00 244,000.00 244,000.00 249,694.96 9/7/2028 1,073 691.89 0.43
Bridgewater Bk 4.8 3/29/2028 108622NK3 3/29/2023 4.800 245,000.00 245,000.00 245,000.00 251,715.45 3/29/2028 911 32.22 0.43
CalPrivate Bk La Jolla 4 9/23/2027-23 13135NAS9 9/28/2022 4.400 249,000.00 244,545.39 247,231.37 249,054.78 9/23/2027 723 193.67 0.43
Carter Bank & Trust 3.8 9/13/2029 146102BB3 9/13/2024 3.800 249,000.00 249,000.00 249,000.00 249,495.51 9/13/2029 1,444 440.70 0.43
Celtic Bank 4.6 9/19/2028 15118RJ32 9/19/2023 4.600 249,000.00 249,000.00 249,000.00 255,648.30 9/19/2028 1,085 345.19 0.43
Central Fed Savings 4.5 9/14/2028 15347VAC5 9/14/2023 4.500 249,000.00 249,000.00 249,000.00 254,921.22 9/14/2028 1,080 491.18 0.43
CIBC Bank USA 4.5 5/25/2028 12547CBN7 5/25/2023 4.500 244,000.00 244,000.00 244,000.00 249,070.32 5/25/2028 968 3,850.52 0.43
Citizens Bk Batesville Ark 3.85 2/16/2029 173477BZ2 2/16/2024 3.850 248,000.00 248,000.00 248,000.00 249,272.24 2/16/2029 1,235 366.22 0.43
City Natl Bk Los Ang 4.9 11/24/2025 178180GS8 11/23/2022 4.900 245,000.00 245,000.00 245,000.00 245,262.15 11/24/2025 55 4,275.75 0.43
Customers Bk 4.95 10/27/2028 23204HPE2 10/27/2023 4.950 240,000.00 240,000.00 240,000.00 248,836.80 10/27/2028 1,123 5,077.48 0.42
Discover Bk 4.5 7/24/2028 2546736R2 7/26/2023 4.500 244,000.00 244,000.00 244,000.00 249,436.32 7/24/2028 1,028 1,985.42 0.43
Farmers BK 4.85 10/17/2028 30916PAA2 10/17/2023 4.850 248,000.00 248,000.00 248,000.00 257,203.28 10/17/2028 1,113 428.39 0.43
First Finl Bk3.3 8/2/2027 32022RSG3 8/1/2022 3.300 245,000.00 245,000.00 245,000.00 243,407.50 8/2/2027 671 642.37 0.43
First National Bank/Dama 5 10/31/2028 32117BGJ1 10/31/2023 5.000 248,000.00 248,000.00 248,000.00 257,714.16 10/31/2028 1,127 985.21 0.43
First Natl Bk 4.75 10/30/2028 32110YH73 10/30/2023 4.750 245,000.00 245,000.00 245,000.00 252,786.10 10/30/2028 1,126 0.00 0.43
First Premier Bank 3.65 9/26/2029 33610RVT7 9/26/2024 3.650 245,000.00 245,000.00 245,000.00 244,081.25 9/26/2029 1,457 98.00 0.43
Genoa Banking Company 4.95 10/31/2028 372348DH2 10/31/2023 4.950 243,000.00 243,000.00 243,000.00 251,937.54 10/31/2028 1,127 5,042.08 0.42
Goldman Sachs Bk 1 7/28/2026 38149MXK4 7/28/2021 1.000 245,000.00 245,000.00 245,000.00 239,225.35 7/28/2026 301 429.59 0.43
Hershey State Banl 3.65 9/26/2028 427883AV5 9/26/2024 3.650 240,000.00 240,000.00 240,000.00 240,000.00 9/26/2028 1,092 96.00 0.42
Legacy Bk & Tr Co 3.5 7/29/2027-22 52470QBK9 8/1/2022 3.500 245,000.00 245,000.00 245,000.00 244,252.75 7/29/2027 667 23.49 0.43
Live Oak Bkg Co 3.55 8/2/2027-23 538036WY6 8/2/2022 3.550 249,000.00 249,000.00 249,000.00 248,489.55 8/2/2027 671 678.10 0.43
Mauch Chunk Trust 4.35 2/28/2029 577234DA2 3/28/2024 4.350 249,000.00 249,000.00 249,000.00 254,246.43 2/28/2029 1,247 59.35 0.43
Medallion Bk Salt 4.4 7/31/2028 58404DSW2 7/31/2023 4.400 245,000.00 245,000.00 245,000.00 249,939.20 7/31/2028 1,035 0.00 0.43
Merrick Bk 4.85 11/6/2029 59013KXW1 11/6/2023 4.850 245,000.00 245,000.00 245,000.00 255,226.30 11/6/2029 1,498 781.32 0.43
Morgan Stanley Bank Step 11/28/2027 61765QP52 9/2/2021 1.004 249,000.00 249,000.00 249,000.00 235,668.54 11/28/2027 789 225.12 0.43
MORGAN STANLEY PRIVATE BK 5.05 11/8/2028 61768EE82 11/8/2023 5.050 243,000.00 243,000.00 243,000.00 252,685.98 11/8/2028 1,135 4,874.98 0.42
NORTHEAST BK LEWISTON 3.7 9/23/2027 66405SFA3 9/23/2024 3.700 245,000.00 245,000.00 245,000.00 245,193.55 9/23/2027 723 173.85 0.43
Old Dominion Natl Bk 4 1/29/2029 679585CL1 1/29/2024 4.000 249,000.00 249,000.00 249,000.00 251,467.59 1/29/2029 1,217 0.00 0.43
Ponce De Leon Fed Bk 3.5 9/15/2027 732329BD8 9/15/2022 3.500 245,000.00 245,000.00 245,000.00 244,282.15 9/15/2027 715 352.40 0.43
SALLIE MAE BK SALT LAKE CITY 3.9 8/13/2030 795451EB5 8/13/2025 3.900 245,000.00 245,000.00 245,000.00 246,509.20 8/13/2030 1,778 1,256.55 0.43
Schuyler Svgs Bk 4.35 7/27/2028 80832MAA5 7/27/2023 4.350 244,000.00 244,000.00 244,000.00 248,426.16 7/27/2028 1,031 1,890.16 0.43
Southern First Bank NA 4.85 10/17/2028 84287PJB9 11/7/2023 4.850 244,000.00 244,000.00 244,000.00 252,798.64 10/17/2028 1,113 5,382.04 0.43
Synchrony Bank 0.9 8/6/2026 87165GD58 8/6/2021 0.900 248,000.00 248,000.00 248,000.00 242,234.00 8/6/2026 310 336.33 0.43
Third Fed Sav & Ln 3.3 8/19/2027 88413QDN5 8/19/2022 3.300 245,000.00 245,000.00 245,000.00 243,282.55 8/19/2027 688 930.33 0.43
Toyota Finl Svgs Bk 0.95 7/15/2026 89235MLC3 7/15/2021 0.950 245,000.00 245,000.00 245,000.00 239,499.75 7/15/2026 288 491.01 0.43
UBS Bk USA 4.4 7/26/2028 90355GEX0 7/26/2023 4.400 245,000.00 245,000.00 245,000.00 249,919.60 7/26/2028 1,030 118.14 0.43
Uinta Bk Mtn 4.4 3/22/2028 903572FT7 3/22/2023 4.400 245,000.00 245,000.00 245,000.00 249,346.30 3/22/2028 904 236.27 0.43
Univest Bank & Trust 4.5 6/21/2028 91527PCD7 6/21/2023 4.500 249,000.00 249,000.00 249,000.00 254,482.98 6/21/2028 995 276.29 0.43
Valley Central 4 4/28/2028 91944RAZ1 4/28/2023 4.000 249,000.00 249,000.00 249,000.00 251,141.40 4/28/2028 941 54.58 0.43
Winter Hill Bank 3.5 8/26/2027-23 975875BH7 8/26/2022 3.500 245,000.00 245,000.00 245,000.00 244,267.45 8/26/2027 695 93.97 0.43
Sub Total / Average Certificate Of Deposit 3.828 11,808,000.00 11,803,545.39 11,806,231.37 11,922,504.50 903 49,462.72 20.57
FAMC 2 10/27/2031 31422XPG1 9/5/2025 3.800 600,000.00 541,299.65 541,953.91 533,244.00 10/27/2031 2,218 5,100.00 1.05
FAMC 4.17 5/24/2029 31422XYY2 1/19/2024 4.580 325,000.00 318,724.25 320,717.57 324,467.00 5/24/2029 1,332 4,743.38 0.57
Sub Total / Average FAMC Bond 4.074 925,000.00 860,023.90 862,671.48 857,711.00 1,907 9,843.38 1.61
Federal Farm Cr Bks 4.86 12/22/2027-25 3133EPN92 12/22/2023 4.860 500,000.00 500,000.00 500,000.00 500,460.00 12/22/2027 813 6,657.53 0.87
FFCB 0.72 10/27/2026-21 3133EMES7 6/18/2021 1.000 500,000.00 492,715.00 498,540.77 483,900.00 10/27/2026 392 1,530.00 0.87
FFCB 0.74 11/24/2026-21 3133EMHC9 4/14/2021 1.053 450,000.00 442,350.00 448,432.68 434,997.00 11/24/2026 420 1,165.50 0.78
FFCB 1.26 10/15/2030-24 3133EMDG4 9/13/2024 3.700 500,000.00 434,025.00 445,362.13 439,550.00 10/15/2030 1,841 2,887.50 0.87
FFCB 1.45 6/11/2030-24 3133ELH31 9/13/2024 3.620 500,000.00 444,170.00 454,340.27 449,380.00 6/11/2030 1,715 2,195.14 0.87
FFCB 1.94 6/30/2031-25 3133EMN24 5/5/2025 4.070 425,000.00 376,154.75 379,371.97 381,361.00 6/30/2031 2,099 2,061.25 0.74
FFCB 2.62 11/17/2025 3133EHJR5 9/24/2021 0.810 500,000.00 536,830.00 501,166.89 499,005.00 11/17/2025 48 4,839.72 0.87
FFCB 2.87 2/25/2030 3133ENPL8 9/9/2024 3.685 1,000,000.00 960,000.00 967,739.35 961,620.00 2/25/2030 1,609 2,790.28 1.74
FFCB 3.05 5/18/2029 3133ENXB1 1/19/2024 4.030 325,000.00 309,845.25 314,673.59 317,999.50 5/18/2029 1,326 3,634.58 0.57
FFCB 4.5 12/22/2025 3133EPQ81 12/29/2023 4.210 1,000,000.00 1,005,440.00 1,000,623.65 1,000,940.00 12/22/2025 83 12,250.00 1.74
Sub Total / Average FFCB Bond 3.229 5,700,000.00 5,501,530.00 5,510,251.30 5,469,212.50 984 40,011.50 9.93
FHLB 1 12/30/2026-21 3130ANY87 10/20/2021 1.205 500,000.00 494,850.00 498,762.05 483,680.00 12/30/2026 456 1,250.00 0.87
FHLB 1.25 11/10/2026-22 3130APLR4 11/10/2021 1.250 450,000.00 450,000.00 450,000.00 438,201.00 11/10/2026 406 2,187.50 0.78
FHLB 1.35 2/18/2031-24 3130AKZS8 9/13/2024 3.770 500,000.00 430,995.00 442,216.76 438,835.00 2/18/2031 1,967 225.00 0.87
FHLB 1.875 12/10/2031-25 3130ALJN5 12/30/2024 4.550 500,000.00 421,115.00 429,638.06 441,120.00 12/10/2031 2,262 520.83 0.87
FHLB 2.375 8/15/2029 3130AGVG7 2/12/2024 4.310 270,000.00 244,620.00 252,141.87 256,235.40 8/15/2029 1,415 801.56 0.47
FHLB 3 4/20/2026 3130ARGN5 12/29/2023 4.350 1,000,000.00 970,620.00 992,959.95 994,620.00 4/20/2026 202 13,333.33 1.74
FHLB 4.25 9/10/2032 3130ATHY6 8/22/2025 4.090 500,000.00 504,847.29 504,773.90 506,705.00 9/10/2032 2,537 1,180.56 0.87
City of Prior Lake
Portfolio Holdings
Investment Portfolio - by Security Type
As of 9/30/2025
Cash
Certificate Of Deposit
FAMC Bond
FFCB Bond
FHLB Bond
FHLB Step 12/15/2025-21 3130AKJ72 4/13/2021 0.894 500,000.00 497,500.00 499,888.69 497,760.00 12/15/2025 76 2,916.67 0.87
FHLB Step 9/30/2031-25 3130AP6G5 8/15/2025 4.103 500,000.00 468,050.00 468,707.00 468,485.00 9/30/2031 2,191 0.00 0.87
FHLN 5159508 1.25 10/16/2026-21 3130ALW83 4/16/2021 1.250 216,666.67 216,666.67 216,666.67 211,271.67 10/16/2026 381 1,233.80 0.38
FHLN 5214149 Step 7/22/2026-21 3130AN4W7 7/22/2021 1.057 1,000,000.00 1,000,000.00 1,000,000.00 979,990.00 7/22/2026 295 2,266.67 1.74
Sub Total / Average FHLB Bond 2.815 5,936,666.67 5,699,263.96 5,755,754.95 5,716,903.07 992 25,915.92 10.34
FNMA 1.5 12/18/2031-25 3135GAA50 5/5/2025 4.180 200,000.00 169,280.00 171,160.30 171,684.00 12/18/2031 2,270 850.00 0.35
Sub Total / Average FNMA Bond 4.180 200,000.00 169,280.00 171,160.30 171,684.00 2,270 850.00 0.35
League of Minnesota Cities - 4M Fund LGIP LGIP5101M 11/30/2010 4.167 416.29 416.29 416.29 416.29 N/A 1 0.00
League of Minnesota Cities - 4M Fund LGIP LGIP5212M 7/23/2025 4.167 2,172,344.78 2,172,344.78 2,172,344.78 2,172,344.78 N/A 1 3.78
League of Minnesota Cities - 4M Plus Fund LGIP LGIP5101MP 11/30/2010 4.193 9,572,143.45 9,572,143.45 9,572,143.45 9,572,143.45 N/A 1 16.68
League of Minnesota Cities LGIP LGIP5211M 7/24/2024 4.167 556,745.82 556,745.82 556,745.82 556,745.82 N/A 1 0.97
Sub Total / Average Local Government Investment Pool 4.187 12,301,650.34 12,301,650.34 12,301,650.34 12,301,650.34 1 0.00 21.43
AUSTIN TEX CMNTY COLLEGE 1.78 2/1/2030 052404QL7 9/11/2024 3.700 500,000.00 453,475.00 462,548.44 455,165.00 2/1/2030 1,585 1,458.61 0.87
AUSTIN TEX CMNTY COLLEGE DIST TX 1.921 8/1/2031-30 052403HG0 8/22/2025 4.000 545,000.00 485,595.00 486,662.65 485,153.55 8/1/2031 2,131 1,715.83 0.95
BROCKTON MASS TAXABLE GO PENSION BDS 2.558 11/1/20 111746JF1 8/14/2025 4.000 500,000.00 460,660.00 461,474.53 458,310.00 11/1/2031 2,223 5,293.64 0.87
Cabot-Las Positas 1.287 8/1/2027 15722TJS1 4/28/2022 3.500 550,000.00 491,991.50 529,767.99 524,458.00 8/1/2027 670 1,160.09 0.96
California St 2.5 10/1/2029 13063DRE0 8/12/2024 4.100 500,000.00 463,270.00 471,375.66 475,205.00 10/1/2029 1,462 6,215.28 0.87
California St 4.875 9/1/2030 13063EHU3 7/18/2025 4.101 230,000.00 238,144.30 237,822.18 240,207.40 9/1/2030 1,797 903.23 0.40
Cecil Cnty MD 1.05 11/1/2026 1498433N2 9/23/2021 0.970 500,000.00 501,985.00 500,422.54 486,505.00 11/1/2026 397 2,172.92 0.87
Central Cmnty Sch 2 3/1/2026 153135FJ2 3/4/2021 0.700 300,000.00 319,098.00 301,592.37 297,813.00 3/1/2026 152 483.33 0.52
Colorado HSG & FIN 6 11/1/2029 19648G-MF-6 9/11/2024 4.253 1,000,000.00 1,079,960.00 1,063,601.64 1,067,890.00 11/1/2029 1,493 24,833.33 1.74
CONNECTICUT ST 4.79 3/15/2031 20772KZM4 5/7/2025 4.382 500,000.00 510,460.00 509,745.71 519,280.00 3/15/2031 1,992 997.92 0.87
Enfield Conn Taxable 1.39 8/1/2027 292749UK2 4/6/2022 3.000 335,000.00 308,658.95 325,916.88 320,199.70 8/1/2027 670 763.15 0.58
Falmouth ME Taxable 3 10/15/2025 306783NF4 10/15/2021 0.800 340,000.00 369,386.20 340,301.71 339,887.80 10/15/2025 15 4,675.00 0.59
Franklin Twp 1.623 2/1/2029 355064KL9 10/4/2023 5.350 250,000.00 207,310.00 223,250.23 230,902.50 2/1/2029 1,220 664.98 0.44
Goose Creek Tex 4.5 2/15/2027 382604Z25 11/3/2022 4.700 500,000.00 496,125.00 498,754.55 504,780.00 2/15/2027 503 2,812.50 0.87
Hawaii St 1.892 10/1/2029 419792B47 8/14/2024 3.901 435,000.00 394,710.30 403,568.01 402,335.85 10/1/2029 1,462 4,092.24 0.76
Hawaii St GO Ref 2.802 10/1/2027-26 419792KL9 7/28/2022 3.350 100,000.00 97,413.00 98,999.95 98,087.00 10/1/2027 731 1,393.22 0.17
KENNEBUNKPORT ME 5 10/1/2029 489299BK2 10/1/2024 3.700 295,000.00 312,357.80 308,897.65 308,012.45 10/1/2029 1,462 7,334.03 0.51
Liberty Center Ohio 0 11/1/2025 530336DV5 8/18/2020 1.051 215,000.00 203,589.95 214,807.93 214,299.10 11/1/2025 32 0.00 0.37
Mason & Kitsap Cntys 1.583 12/1/2028 575181HB1 5/19/2023 4.150 445,000.00 389,032.35 412,963.15 412,617.35 12/1/2028 1,158 2,328.55 0.78
Massachusetts St 0.986 11/1/2026 57582RK96 6/30/2021 1.000 500,000.00 499,635.00 499,925.69 485,495.00 11/1/2026 397 2,040.47 0.87
Milwaukee Cnty Wis 2 12/1/2026 6022453V2 11/23/2021 1.300 500,000.00 516,960.00 503,948.70 489,945.00 12/1/2026 427 3,305.56 0.87
Minnesota St 7 11/1/2028 604146GK0 11/8/2023 5.251 250,000.00 268,952.50 261,746.38 272,405.00 11/1/2028 1,128 7,243.06 0.44
New York NY 1.92 11/1/2029 64971XUUO 9/25/2023 5.150 275,000.00 228,998.00 244,187.53 253,602.25 11/1/2029 1,493 2,185.33 0.48
New York NY 2.36 8/1/2031-30 64966QFX3 7/23/2025 4.250 400,000.00 360,196.00 361,444.40 361,732.00 8/1/2031 2,131 1,547.11 0.70
New York NY 3.7 8/1/2029-25 64966LYZ8 11/24/2023 5.100 250,000.00 232,897.50 238,463.84 247,202.50 8/1/2029 1,401 1,515.97 0.44
New York NY City 4.2 11/1/2030 64971QRB1 5/5/2025 4.350 500,000.00 496,370.00 496,637.82 500,185.00 11/1/2030 1,858 8,691.67 0.87
NEW YORK NY CITY 4.87 5/31/2031 64972JGZ5 8/12/2025 4.120 500,000.00 519,160.00 518,716.73 517,320.00 5/31/2031 2,069 10,078.19 0.87
New York State TFA 4.2 11/1/2028-23 64971Q7N7 9/7/2023 4.850 250,000.00 242,657.50 245,599.18 250,042.50 11/1/2028 1,128 4,345.83 0.44
NEWARK NJ GO BDS 2019 4.3 11/1/2030 650367PB5 8/22/2025 4.091 600,000.00 605,772.00 605,653.33 603,762.00 11/1/2030 1,858 10,678.33 1.05
Orono ME Taxable 5 11/1/2025 687085DR8 10/29/2020 1.000 330,000.00 394,287.30 331,124.76 330,290.40 11/1/2025 32 6,829.17 0.57
SIOUX FALLS S D 3.65 11/15/2030-28 829594ML1 9/18/2024 3.720 500,000.00 498,070.00 498,393.53 486,970.00 11/15/2030 1,872 6,843.75 0.87
Springboro Ohio 5 12/1/2027 85023MAF2 7/12/2022 4.002 245,000.00 256,755.10 249,730.71 249,963.70 12/1/2027 792 4,049.31 0.43
St Louis Park Minn 4.5 2/1/2027 791740V34 9/7/2022 3.345 190,000.00 198,863.50 192,695.43 191,584.60 2/1/2027 489 1,401.25 0.33
STATE BK INDIA NEW YORK NY 4 8/21/2030 856288CM5 8/21/2025 4.000 245,000.00 245,000.00 245,000.00 247,601.90 8/21/2030 1,786 1,061.67 0.43
TARRANT REGL WTR DIST TEX 1.45 9/1/2029 876448EB3 9/11/2024 3.650 500,000.00 450,390.00 460,880.22 455,950.00 9/1/2029 1,432 584.03 0.87
Toledo Ohio City Sch 5 12/1/2027 889294RT3 9/28/2022 4.520 100,000.00 102,186.00 100,916.04 102,464.00 12/1/2027 792 1,652.78 0.17
Trussville AL 0.822 10/1/2025 898242ND0 8/25/2020 0.710 300,000.00 301,677.00 300,000.90 300,000.00 10/1/2025 1 1,226.15 0.52
Waukesha Wis 1.2 10/1/2027 943080UZ2 9/1/2022 3.660 375,000.00 332,557.50 358,283.69 356,272.50 10/1/2027 731 2,237.50 0.65
Wicomico Cnty MD 2 12/1/2026 967546BA9 5/13/2022 3.450 380,000.00 356,975.80 374,088.19 372,134.00 12/1/2026 427 2,512.22 0.66
Winthrop Minn 2 2/1/2029-28 976367PN6 11/24/2023 5.100 225,000.00 193,556.25 204,767.21 209,670.75 2/1/2029 1,220 737.50 0.39
YSLETA TEX INDPT SCH 0 8/15/2030 98816PDU3 4/14/2025 4.447 510,000.00 403,246.80 412,503.49 416,236.50 8/15/2030 1,780 0.00 0.89
Sub Total / Average Municipal Bond 3.531 15,965,000.00 15,488,386.10 15,557,181.54 15,541,938.30 1,222 150,064.70 27.81
T-Note 0.375 11/30/2025 91282CAZ4 9/24/2021 0.780 300,000.00 295,008.00 299,800.71 298,176.00 11/30/2025 61 375.00 0.52
T-Note 0.625 11/30/2027 91282CAY7 5/5/2022 3.040 500,000.00 438,535.00 476,108.69 469,315.00 11/30/2027 791 1,041.67 0.87
T-Note 2.5 2/28/2026 9128286F2 12/21/2023 4.220 1,000,000.00 964,310.91 993,263.68 994,200.00 2/28/2026 151 2,071.82 1.74
T-Note 4.625 3/15/2026 91282CGR6 12/21/2023 4.230 1,000,000.00 1,008,280.00 1,001,686.48 1,003,280.00 3/15/2026 166 1,916.44 1.74
Sub Total / Average Treasury Note 3.644 2,800,000.00 2,706,133.91 2,770,859.56 2,764,971.00 261 5,404.93 4.88
Total / Average 3.537 57,402,906.67 56,296,403.26 56,502,350.50 56,513,164.37 778 281,553.15 100
FNMA Bond
Local Government Investment Pool
Municipal Bond
Treasury Note
YTM @
Cost Cost Value
Days to
Maturity
% of
Portfolio
Cash - 1,766,590 1 3.08%
Certificate of Deposit 3.828 11,803,545 903 20.57%
FAMC Bond 4.074 860,024 1,907 1.61%
FFCB Bond 3.229 5,501,530 984 9.93%
FHLB Bond 2.815 5,699,264 992 10.34%
FNMA Bond 4.180 169,280 2,270 0.35%
LGIP 4.187 12,301,650 1 21.43%
Municipal Bond 3.531 15,488,386 1,222 27.81%
Treasury Note 3.644 2,706,134 261 4.88%
Total / Average 3.537 56,296,403 778 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Security Type
September 30, 2025
Description
City of Prior Lake - Quarterly Investment Report
-9/30/259/30/249/30/23 US Treasury Yield Curve 10 yr 6.00 5.00 4.00 3.00 2.00 1.00
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, 2025, the cost value of the investment portfolio is $56,296,403. This decreased
$1.6M from June 30, 2025.
The ‘weighted average yield to maturity at cost’ of the investment portfolio is currently 3.52% which is
an increase from 3.31% 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 mar-
ket was $12.3M.
rd
The following table shows the treasury rates for the 3 quarter of 2025 compared to the previous two
years. Short-term yields in 2025 are lower as compared to both of the two years prior. Short-term se-
curities are necessary to meet cash flow needs for payments to vendors (including construction con-
tracts) and payroll. Long-term yields in 2025 are lower and in between as 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, 2025, the cost value of the portfolio is less than the
market value of the investments by $217K. The change in the fair value of the securities is adjusted
against interest earnings in each of the funds. This is a paper gain for the third quarter of 2025; no
actual gain/loss is realized because the City holds the securities until maturity.
-258/30/257/31/US Treasury Yield Curve 10 yr 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50
During the third quarter of 2025, the chart below shows how rates offered by financial institutions have
remained steady for both shorter-terms and for longer-terms.
As the attached chart titled Investment Portfolio – Diversification, by Maturity Range indicates, approx-
imately 26% or $14.7M matures within 1 month. Of that total, $12.3M is in the 4M investment pool.
These short-term securities are necessary to meet cash flow needs for payments to vendors (includ-
ing 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 $58.0M.
Of this balance, $56.5M is investments and $1.5M 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 accom-
plish 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 fol-
lows:
1. Bonds, notes certificates of indebtedness, treasury bills or other securities is-
sued by the United States of America, its agencies and allowable instrumen-
talities;
2. Interest bearing checking and savings accounts, or any other investments
constituting direct obligations of any bank;
2
3. Certificates of deposit at state and federally chartered institutions that are lim-
ited to the amount of coverage provided by the Federal Deposit Insurance
Corporation;
4. Money market accounts that are invested in above referenced government se-
curities;
5. State and local securities which have at the time of investment one of the
three highest credit ratings by a nationally recognized rating agency;
6. Investments may be made only in those savings banks or savings and loan
associations the shares, or investment certificates of which are insured by the
Federal Deposit Insurance Corporation or the National Credit Union Associa-
tion;
7. Investment products that are considered as derivatives are specifically ex-
cluded 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
9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 year prior
Market Value 11,373,705 14,201,388 12,587,578 17,904,955 14,068,240 2,694,535
1 1 1 1 1 0
4.48% 3.44% 2.38% 3.33% 3.66%-0.82%
Fixed Income Assets
41,950,294 40,092,623 38,001,643 39,957,155 42,228,163 277,870
41,710,847 39,478,162 37,672,515 39,860,683 42,444,924 734,078
1,015 1,009 963 934 1,030 15
940 931 926 900 992 52
3.10% 3.17% 3.25% 3.31% 3.47%0.38%
Total Portfolio Value
53,323,998 54,294,011 50,589,221 57,862,110 56,296,403 2,972,405
53,084,551 53,679,550 50,260,093 57,765,638 56,513,164 3,428,613
229,318 199,911 236,785 197,288 281,553 52,235
-239,447 -614,461 -329,128 -96,472 216,761 456,208
801 748 727 649 778 (23)
742 691 699 626 749 7
3.39% 3.24% 3.04% 3.31% 3.52% 0.13%
BENCHMARK
90 Day T-Bill 4.73% 4.37% 4.32% 4.41% 4.02% -0.71%
4.38%4.24%4.23%4.29%3.83%-0.55%
3.98%4.16%4.03%3.96%3.68%-0.30%
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, 2025
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