HomeMy WebLinkAbout05(E) - Approval of 4th Quarter 2025 Investment Report Report
ITEM: 5E
CITY COUNCIL AGENDA REPORT
MEETING DATE: April 14, 2026
PREPARED BY: Bradley Smith, Accountant
PRESENTED BY: Nicole Klekner, Finance Director
AGENDA ITEM: Approval of 4th Quarter 2025 Investment Report
RECOMMENDED ACTION:
Approve the 2025 4th 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 fourth quarter of 2025.
Staff has prepared a list of investments as of December 31, 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 4th Quarter
Investment Report as presented.
2. Motion and second to remove the Investment Report from the consent agenda for
additional discussion.
ATTACHMENTS:
1. 2025 Q4 Investment Portfolio by Maturity Range Graph (attach 4)
2. 2025 Q4 Investment Portfolio by Security Type (attach 5)
3. 2025 Q4 Investment Portfolio by Security Type Graph (attach 3)
4. 2025 Q4 Investment Summary Report (attach 1)
5. 2025 Q4 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 2.483 16,545,469 1 29.35%
1-3 Months 3.494 2,536,689 68 4.52%
3-6 Months 4.290 1,219,620 121 2.22%
6-9 Months 1.004 1,983,000 205 3.52%
9-12 Months 1.340 3,972,137 321 7.09%
1-2 Years 3.460 5,185,086 586 9.51%
2-3 Years 4.592 6,297,642 968 11.26%
3-4 Years 4.247 6,169,639 1,303 11.33%
4-5 Years 3.908 5,023,273 1,663 9.46%
5-10 Years 4.089 6,099,236 2,136 11.74%
Total / Average 3.289 55,031,792 756 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Maturity Range
December 31, 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 3,265,519.27 3,265,519.27 3,265,519.27 3,265,519.27 N/A 1 5.80
Morgan Stanley Cash CASH5089 12/31/2010 0.000 608,378.55 608,378.55 608,378.55 608,378.55 N/A 1 1.08
Oppenheimer Cash MM9905 12/27/2011 0.000 1,760,229.15 1,760,229.15 1,760,229.15 1,760,229.15 N/A 1 3.12
Sub Total / Average Cash 0.000 5,634,126.97 5,634,126.97 5,634,126.97 5,634,126.97 1 0.00 10.00
1st Security Bk of Wash 4.05 6/16/2026 33625CFL8 12/16/2022 4.050 249,000.00 249,000.00 249,000.00 249,420.81 6/16/2026 167 414.43 0.44
Amerant Bank 4.65 9/8/2028 02357QCF2 9/8/2023 4.650 249,000.00 249,000.00 249,000.00 254,657.28 9/8/2028 982 729.60 0.44
AMERASIA BK FLUSHING NY 4 2/15/2029 02357PAG4 2/15/2024 4.000 248,000.00 248,000.00 248,000.00 249,530.16 2/15/2029 1,142 434.85 0.44
American Express Natl 3 5/4/2027 02589ACK6 4/30/2022 3.000 245,000.00 245,000.00 245,000.00 242,993.45 5/4/2027 489 1,147.81 0.43
Bank Hapoalim 0.95 7/23/2026 06251A2Y5 7/23/2021 0.950 245,000.00 245,000.00 245,000.00 241,361.75 7/23/2026 204 1,026.65 0.43
Bank of Belleville 4 6/15/2027 06063PDD4 12/15/2022 4.000 249,000.00 249,000.00 249,000.00 250,262.43 6/15/2027 531 436.60 0.44
BankUnited Savings Miami 0.95 3/31/2026 066519QT9 3/31/2021 0.950 245,000.00 245,000.00 245,000.00 243,265.40 3/31/2026 90 0.00 0.43
BMW Bk 4.75 3/17/2028 055180AW83 3/17/2023 4.750 245,000.00 245,000.00 245,000.00 250,279.75 3/17/2028 807 3,347.77 0.43
BNY Mellon4.5 9/7/2028 05584CJJ6 9/7/2023 4.500 244,000.00 244,000.00 244,000.00 248,557.92 9/7/2028 981 3,459.45 0.43
Bridgewater Bk 4.8 3/29/2028 108622NK3 3/29/2023 4.800 245,000.00 245,000.00 245,000.00 250,666.85 3/29/2028 819 64.44 0.43
Carter Bank & Trust 3.8 9/13/2029 146102BB3 9/13/2024 3.800 249,000.00 249,000.00 249,000.00 248,843.13 9/13/2029 1,352 466.62 0.44
Celtic Bank 4.6 9/19/2028 15118RJ32 9/19/2023 4.600 249,000.00 249,000.00 249,000.00 254,383.38 9/19/2028 993 376.57 0.44
Central Fed Savings 4.5 9/14/2028 15347VAC5 9/14/2023 4.500 249,000.00 249,000.00 249,000.00 253,723.53 9/14/2028 988 521.88 0.44
CIBC Bank USA 4.5 5/25/2028 12547CBN7 5/25/2023 4.500 244,000.00 244,000.00 244,000.00 248,230.96 5/25/2028 876 1,082.96 0.43
Citizens Bk Batesville Ark 3.85 2/16/2029 173477BZ2 2/16/2024 3.850 248,000.00 248,000.00 248,000.00 248,436.48 2/16/2029 1,143 392.38 0.44
Customers Bk 4.95 10/27/2028 23204HPE2 10/27/2023 4.950 240,000.00 240,000.00 240,000.00 247,468.80 10/27/2028 1,031 2,115.62 0.43
Discover Bk 4.5 7/24/2028 2546736R2 7/26/2023 4.500 244,000.00 244,000.00 244,000.00 248,394.44 7/24/2028 936 4,752.99 0.43
Farmers BK 4.85 10/17/2028 30916PAA2 10/17/2023 4.850 248,000.00 248,000.00 248,000.00 255,722.72 10/17/2028 1,021 461.35 0.44
First Finl Bk3.3 8/2/2027 32022RSG3 8/1/2022 3.300 245,000.00 245,000.00 245,000.00 243,677.00 8/2/2027 579 664.52 0.43
First National Bank/Dama 5 10/31/2028 32117BGJ1 10/31/2023 5.000 248,000.00 248,000.00 248,000.00 256,201.36 10/31/2028 1,035 1,019.18 0.44
First Natl Bk 4.75 10/30/2028 32110YH73 10/30/2023 4.750 245,000.00 245,000.00 245,000.00 251,433.70 10/30/2028 1,034 0.00 0.43
First Premier Bank 3.65 9/26/2029 33610RVT7 9/26/2024 3.650 245,000.00 245,000.00 245,000.00 243,552.05 9/26/2029 1,365 2,352.00 0.43
Genoa Banking Company 4.95 10/31/2028 372348DH2 10/31/2023 4.950 243,000.00 243,000.00 243,000.00 250,613.19 10/31/2028 1,035 2,010.24 0.43
Goldman Sachs Bk 1 7/28/2026 38149MXK4 7/28/2021 1.000 245,000.00 245,000.00 245,000.00 241,246.60 7/28/2026 209 1,047.12 0.43
Hershey State Banl 3.65 9/26/2028 427883AV5 9/26/2024 3.650 240,000.00 240,000.00 240,000.00 239,294.40 9/26/2028 1,000 120.00 0.43
Legacy Bk & Tr Co 3.5 7/29/2027-22 52470QBK9 8/1/2022 3.500 245,000.00 245,000.00 245,000.00 244,416.90 7/29/2027 575 46.99 0.43
Live Oak Bkg Co 3.55 8/2/2027-23 538036WY6 8/2/2022 3.550 249,000.00 249,000.00 249,000.00 248,611.56 8/2/2027 579 702.32 0.44
Mauch Chunk Trust 4.35 2/28/2029 577234DA2 3/28/2024 4.350 249,000.00 249,000.00 249,000.00 253,130.91 2/28/2029 1,155 89.03 0.44
Medallion Bk Salt 4.4 7/31/2028 58404DSW2 7/31/2023 4.400 245,000.00 245,000.00 245,000.00 248,934.70 7/31/2028 943 0.00 0.43
Merrick Bk 4.85 11/6/2029 59013KXW1 11/6/2023 4.850 245,000.00 245,000.00 245,000.00 253,964.55 11/6/2029 1,406 813.87 0.43
Morgan Stanley Bank Step 11/28/2027 61765QP52 9/2/2021 1.004 249,000.00 249,000.00 249,000.00 237,023.10 11/28/2027 697 225.12 0.44
MORGAN STANLEY PRIVATE BK 5.05 11/8/2028 61768EE82 11/8/2023 5.050 243,000.00 243,000.00 243,000.00 251,310.60 11/8/2028 1,043 1,781.89 0.43
NORTHEAST BK LEWISTON 3.7 9/23/2027 66405SFA3 9/23/2024 3.700 245,000.00 245,000.00 245,000.00 245,098.00 9/23/2027 631 2,458.73 0.43
Old Dominion Natl Bk 4 1/29/2029 679585CL1 1/29/2024 4.000 249,000.00 249,000.00 249,000.00 250,533.84 1/29/2029 1,125 0.00 0.44
Ponce De Leon Fed Bk 3.5 9/15/2027 732329BD8 9/15/2022 3.500 245,000.00 245,000.00 245,000.00 244,309.10 9/15/2027 623 375.89 0.43
SALLIE MAE BK SALT LAKE CITY 3.9 8/13/2030 795451EB5 8/13/2025 3.900 245,000.00 245,000.00 245,000.00 245,286.65 8/13/2030 1,686 3,664.93 0.43
Schuyler Svgs Bk 4.35 7/27/2028 80832MAA5 7/27/2023 4.350 244,000.00 244,000.00 244,000.00 247,462.36 7/27/2028 939 4,565.47 0.43
Southern First Bank NA 4.85 10/17/2028 84287PJB9 11/7/2023 4.850 244,000.00 244,000.00 244,000.00 251,415.16 10/17/2028 1,021 2,431.64 0.43
Synchrony Bank 0.9 8/6/2026 87165GD58 8/6/2021 0.900 248,000.00 248,000.00 248,000.00 244,218.00 8/6/2026 218 898.92 0.44
Third Fed Sav & Ln 3.3 8/19/2027 88413QDN5 8/19/2022 3.300 245,000.00 245,000.00 245,000.00 243,527.55 8/19/2027 596 2,968.19 0.43
Toyota Finl Svgs Bk 0.95 7/15/2026 89235MLC3 7/15/2021 0.950 245,000.00 245,000.00 245,000.00 241,496.50 7/15/2026 196 1,077.66 0.43
UBS Bk USA 4.4 7/26/2028 90355GEX0 7/26/2023 4.400 245,000.00 245,000.00 245,000.00 248,895.50 7/26/2028 938 147.67 0.43
Uinta Bk Mtn 4.4 3/22/2028 903572FT7 3/22/2023 4.400 245,000.00 245,000.00 245,000.00 248,537.80 3/22/2028 812 265.81 0.43
Univest Bank & Trust 4.5 6/21/2028 91527PCD7 6/21/2023 4.500 249,000.00 249,000.00 249,000.00 253,447.14 6/21/2028 903 306.99 0.44
Valley Central 4 4/28/2028 91944RAZ1 4/28/2023 4.000 249,000.00 249,000.00 249,000.00 250,491.51 4/28/2028 849 81.86 0.44
Winter Hill Bank 3.5 8/26/2027-23 975875BH7 8/26/2022 3.500 245,000.00 245,000.00 245,000.00 244,353.20 8/26/2027 603 117.47 0.43
Sub Total / Average Certificate Of Deposit 3.792 11,314,000.00 11,314,000.00 11,314,000.00 11,408,682.17 834 51,465.48 20.08
FAMC 2 10/27/2031 31422XPG1 9/5/2025 3.800 600,000.00 541,299.65 544,361.59 537,066.00 10/27/2031 2,126 2,133.33 1.06
FAMC 4.17 5/24/2029 31422XYY2 1/19/2024 4.580 325,000.00 318,724.25 321,013.36 324,330.50 5/24/2029 1,240 1,392.90 0.58
Sub Total / Average FAMC Bond 4.074 925,000.00 860,023.90 865,374.95 861,396.50 1,815 3,526.23 1.64
FFCB 0.72 10/27/2026-21 3133EMES7 6/18/2021 1.000 500,000.00 492,715.00 498,883.24 488,315.00 10/27/2026 300 640.00 0.89
FFCB 0.74 11/24/2026-21 3133EMHC9 4/14/2021 1.053 450,000.00 442,350.00 448,776.00 438,804.00 11/24/2026 328 342.25 0.80
FFCB 1.26 10/15/2030-24 3133EMDG4 9/13/2024 3.700 500,000.00 434,025.00 448,092.54 441,640.00 10/15/2030 1,749 1,330.00 0.89
FFCB 1.45 6/11/2030-24 3133ELH31 9/13/2024 3.620 500,000.00 444,170.00 456,789.66 450,960.00 6/11/2030 1,623 402.78 0.89
FFCB 1.94 6/30/2031-25 3133EMN24 5/5/2025 4.070 425,000.00 376,154.75 381,371.87 384,144.75 6/30/2031 2,007 0.00 0.75
FFCB 2.87 2/25/2030 3133ENPL8 9/9/2024 3.685 1,000,000.00 960,000.00 969,583.96 967,000.00 2/25/2030 1,517 10,045.00 1.77
FFCB 3.05 5/18/2029 3133ENXB1 1/19/2024 4.030 325,000.00 309,845.25 315,390.05 319,384.00 5/18/2029 1,234 1,183.99 0.58
Sub Total / Average FFCB Bond 3.070 3,700,000.00 3,459,260.00 3,518,887.32 3,490,247.75 1,285 13,944.02 6.57
FHLB 1 12/30/2026-21 3130ANY87 10/20/2021 1.205 500,000.00 494,850.00 499,011.81 487,730.00 12/30/2026 364 0.00 0.89
FHLB 1.25 11/10/2026-22 3130APLR4 11/10/2021 1.250 450,000.00 450,000.00 450,000.00 441,198.00 11/10/2026 314 796.87 0.80
FHLB 1.35 2/18/2031-24 3130AKZS8 9/13/2024 3.770 500,000.00 430,995.00 444,919.38 442,580.00 2/18/2031 1,875 243.75 0.89
FHLB 1.48 11/19/2032 3130AKG83 10/2/2025 3.920 430,000.00 365,272.10 367,508.38 362,502.90 11/19/2032 2,515 742.47 0.76
FHLB 1.875 12/10/2031-25 3130ALJN5 12/30/2024 4.550 500,000.00 421,115.00 432,499.82 444,330.00 12/10/2031 2,170 2,890.62 0.89
FHLB 2.375 8/15/2029 3130AGVG7 2/12/2024 4.310 270,000.00 244,620.00 253,302.96 256,705.20 8/15/2029 1,323 2,422.50 0.48
FHLB 3 4/20/2026 3130ARGN5 12/29/2023 4.350 1,000,000.00 970,620.00 996,166.31 998,150.00 4/20/2026 110 5,916.67 1.77
FHLB 4.25 9/10/2032 3130ATHY6 8/22/2025 4.090 500,000.00 504,847.29 504,600.79 507,845.00 9/10/2032 2,445 6,552.08 0.89
FHLB Step 9/30/2031-25 3130AP6G5 8/15/2025 4.103 500,000.00 468,050.00 470,020.99 472,555.00 9/30/2031 2,099 2,500.00 0.89
FHLN 5159508 1.25 10/16/2026-21 3130ALW83 4/16/2021 1.250 216,666.67 216,666.67 216,666.67 212,673.50 10/16/2026 289 564.24 0.38
FHLN 5214149 Step 7/22/2026-21 3130AN4W7 7/22/2021 1.057 1,000,000.00 1,000,000.00 1,000,000.00 986,760.00 7/22/2026 203 5,300.00 1.77
Sub Total / Average FHLB Bond 3.059 5,866,666.67 5,567,036.06 5,634,697.11 5,613,029.60 1,096 27,929.20 10.41
City of Prior Lake
Portfolio Holdings
Investment Portfolio - by Security Type
As of 12/31/2025
Cash
Certificate Of Deposit
FAMC Bond
FFCB Bond
FHLB Bond
FNMA 1.5 12/18/2031-25 3135GAA50 5/5/2025 4.180 200,000.00 169,280.00 172,329.13 173,106.00 12/18/2031 2,178 108.33 0.35
Sub Total / Average FNMA Bond 4.180 200,000.00 169,280.00 172,329.13 173,106.00 2,178 108.33 0.35
League of Minnesota Cities - 4M Fund LGIP LGIP5101M 11/30/2010 3.756 1,588,365.53 1,588,365.53 1,588,365.53 1,588,365.53 N/A 1 2.82
League of Minnesota Cities - 4M Fund LGIP LGIP5212M 7/23/2025 3.756 166,565.46 166,565.46 166,565.46 166,565.46 N/A 1 0.30
League of Minnesota Cities - 4M Plus Fund LGIP LGIP5101MP 11/30/2010 3.767 9,009,275.60 9,009,275.60 9,009,275.60 9,009,275.60 N/A 1 15.99
League of Minnesota Cities LGIP LGIP5211M 7/24/2024 3.756 147,135.50 147,135.50 147,135.50 147,135.50 N/A 1 0.26
Sub Total / Average Local Government Investment Pool 3.765 10,911,342.09 10,911,342.09 10,911,342.09 10,911,342.09 1 0.00 19.36
AUSTIN TEX CMNTY COLLEGE 1.78 2/1/2030 052404QL7 9/11/2024 3.700 500,000.00 453,475.00 464,722.28 461,475.00 2/1/2030 1,493 3,708.33 0.89
AUSTIN TEX CMNTY COLLEGE DIST TX 1.921 8/1/2031-30 052403HG0 8/22/2025 4.000 545,000.00 485,595.00 489,181.20 490,407.35 8/1/2031 2,039 4,362.27 0.97
BROCKTON MASS TAXABLE GO PENSION BDS 2.558 11/1/20 111746JF1 8/14/2025 4.000 500,000.00 460,660.00 463,068.93 459,635.00 11/1/2031 2,131 2,131.67 0.89
Cabot-Las Positas 1.287 8/1/2027 15722TJS1 4/28/2022 3.500 550,000.00 491,991.50 532,546.12 529,529.00 8/1/2027 578 2,949.38 0.98
California St 2.5 10/1/2029 13063DRE0 8/12/2024 4.100 500,000.00 463,270.00 473,176.92 477,950.00 10/1/2029 1,370 3,125.00 0.89
California St 4.35 11/1/2032 13063ESC1 11/6/2025 4.030 215,000.00 219,151.65 219,062.17 216,926.40 11/1/2032 2,497 1,428.85 0.38
California St 4.875 9/1/2030 13063EHU3 7/18/2025 4.101 230,000.00 238,144.30 237,421.72 240,166.00 9/1/2030 1,705 3,737.50 0.41
Cecil Cnty MD 1.05 11/1/2026 1498433N2 9/23/2021 0.970 500,000.00 501,985.00 500,324.62 490,130.00 11/1/2026 305 875.00 0.89
Central Cmnty Sch 2 3/1/2026 153135FJ2 3/4/2021 0.700 300,000.00 319,098.00 300,628.57 299,166.00 3/1/2026 60 2,000.00 0.53
Colorado HSG & FIN 6 11/1/2029 19648G-MF-6 9/11/2024 4.253 1,000,000.00 1,079,960.00 1,059,682.45 1,063,380.00 11/1/2029 1,401 10,000.00 1.77
CONNECTICUT ST 4.79 3/15/2031 20772KZM4 5/7/2025 4.382 500,000.00 510,460.00 509,295.60 518,425.00 3/15/2031 1,900 7,051.94 0.89
Enfield Conn Taxable 1.39 8/1/2027 292749UK2 4/6/2022 3.000 335,000.00 308,658.95 327,164.11 322,906.50 8/1/2027 578 1,940.21 0.59
Franklin Twp 1.623 2/1/2029 355064KL9 10/4/2023 5.350 250,000.00 207,310.00 225,267.43 233,035.00 2/1/2029 1,128 1,690.62 0.44
Goose Creek Tex 4.5 2/15/2027 382604Z25 11/3/2022 4.700 500,000.00 496,125.00 498,982.35 504,645.00 2/15/2027 411 8,500.00 0.89
Hawaii St 1.892 10/1/2029 419792B47 8/14/2024 3.901 435,000.00 394,710.30 405,545.95 405,224.25 10/1/2029 1,370 2,057.55 0.77
Hawaii St GO Ref 2.802 10/1/2027-26 419792KL9 7/28/2022 3.350 100,000.00 97,413.00 99,125.81 98,543.00 10/1/2027 639 700.50 0.18
KENNEBUNKPORT ME 5 10/1/2029 489299BK2 10/1/2024 3.700 295,000.00 312,357.80 308,023.10 307,879.70 10/1/2029 1,370 3,687.50 0.52
Mason & Kitsap Cntys 1.583 12/1/2028 575181HB1 5/19/2023 4.150 445,000.00 389,032.35 415,508.40 418,980.85 12/1/2028 1,066 587.03 0.79
Massachusetts St 0.986 11/1/2026 57582RK96 6/30/2021 1.000 500,000.00 499,635.00 499,942.91 489,355.00 11/1/2026 305 821.67 0.89
Milwaukee Cnty Wis 2 12/1/2026 6022453V2 11/23/2021 1.300 500,000.00 516,960.00 503,097.93 492,245.00 12/1/2026 335 833.33 0.89
Minnesota St 7 11/1/2028 604146GK0 11/8/2023 5.251 250,000.00 268,952.50 260,788.35 272,182.50 11/1/2028 1,036 2,916.67 0.44
New York NY 1.92 11/1/2029 64971XUUO 9/25/2023 5.150 275,000.00 228,998.00 246,086.23 255,527.25 11/1/2029 1,401 880.00 0.49
New York NY 2.36 8/1/2031-30 64966QFX3 7/23/2025 4.250 400,000.00 360,196.00 363,108.93 362,864.00 8/1/2031 2,039 3,933.33 0.71
New York NY 3.7 8/1/2029-25 64966LYZ8 11/24/2023 5.100 250,000.00 232,897.50 239,221.39 248,310.00 8/1/2029 1,309 3,854.17 0.44
New York NY City 4.2 11/1/2030 64971QRB1 5/5/2025 4.350 500,000.00 496,370.00 496,804.30 502,200.00 11/1/2030 1,766 3,500.00 0.89
NEW YORK NY CITY 4.87 5/31/2031 64972JGZ5 8/12/2025 4.120 500,000.00 519,160.00 517,884.48 516,235.00 5/31/2031 1,977 4,058.33 0.89
New York State TFA 4.2 11/1/2028-23 64971Q7N7 9/7/2023 4.850 250,000.00 242,657.50 245,958.11 250,060.00 11/1/2028 1,036 1,750.00 0.44
NEWARK NJ GO BDS 2019 4.3 11/1/2030 650367PB5 8/22/2025 4.091 600,000.00 605,772.00 605,373.41 602,838.00 11/1/2030 1,766 4,300.00 1.06
San Bernardino Calif 2.332 8/1/2032-30 796711H85 10/10/2025 4.206 300,000.00 267,000.00 268,088.06 267,336.00 8/1/2032 2,405 2,915.00 0.53
SIOUX FALLS S D 3.65 11/15/2030-28 829594ML1 9/18/2024 3.720 500,000.00 498,070.00 498,472.48 488,940.00 11/15/2030 1,780 2,331.94 0.89
Springboro Ohio 5 12/1/2027 85023MAF2 7/12/2022 4.002 245,000.00 256,755.10 249,181.18 250,115.60 12/1/2027 700 1,020.83 0.43
St Louis Park Minn 4.5 2/1/2027 791740V34 9/7/2022 3.345 190,000.00 198,863.50 192,188.31 191,761.30 2/1/2027 397 3,562.50 0.34
STATE BK INDIA NEW YORK NY 4 8/21/2030 856288CM5 8/21/2025 4.000 245,000.00 245,000.00 245,000.00 246,305.85 8/21/2030 1,694 3,538.89 0.43
TARRANT REGL WTR DIST TEX 1.45 9/1/2029 876448EB3 9/11/2024 3.650 500,000.00 450,390.00 463,393.50 459,175.00 9/1/2029 1,340 2,416.67 0.89
Toledo Ohio City Sch 5 12/1/2027 889294RT3 9/28/2022 4.520 100,000.00 102,186.00 100,809.63 102,485.00 12/1/2027 700 416.67 0.18
Waukesha Wis 1.2 10/1/2027 943080UZ2 9/1/2022 3.660 375,000.00 332,557.50 360,387.52 359,460.00 10/1/2027 639 1,125.00 0.67
Wicomico Cnty MD 2 12/1/2026 967546BA9 5/13/2022 3.450 380,000.00 356,975.80 375,361.93 374,269.60 12/1/2026 335 633.33 0.67
Winthrop Minn 2 2/1/2029-28 976367PN6 11/24/2023 5.100 225,000.00 193,556.25 206,292.96 211,533.75 2/1/2029 1,128 1,875.00 0.40
YSLETA TEX INDPT SCH 0 8/15/2030 98816PDU3 4/14/2025 4.447 510,000.00 403,246.80 417,542.64 421,617.00 8/15/2030 1,688 0.00 0.91
Sub Total / Average Municipal Bond 3.757 15,295,000.00 14,705,597.30 14,883,711.98 14,903,219.90 1,268 107,216.68 27.14
T-Note 0.625 11/30/2027 91282CAY7 5/5/2022 3.040 500,000.00 438,535.00 478,887.45 473,885.00 11/30/2027 699 266.14 0.89
T-Note 2.5 2/28/2026 9128286F2 12/21/2023 4.220 1,000,000.00 964,310.91 997,367.93 998,050.00 2/28/2026 59 8,425.41 1.77
T-Note 4.625 3/15/2026 91282CGR6 12/21/2023 4.230 1,000,000.00 1,008,280.00 1,000,751.80 1,001,880.00 3/15/2026 74 13,670.58 1.77
Sub Total / Average Treasury Note 3.988 2,500,000.00 2,411,125.91 2,477,007.18 2,473,815.00 193 22,362.13 4.44
Total / Average 3.289 56,346,135.73 55,031,792.23 55,411,476.73 55,468,965.98 756 226,552.07 100
FNMA Bond
Local Government Investment Pool
Municipal Bond
Treasury Note
YTM @
Cost Cost Value
Days to
Maturity
% of
Portfolio
Cash - 5,634,127 1 10.00%
Certificate of Deposit 3.792 11,314,000 834 20.08%
FAMC Bond 4.074 860,024 1,815 1.64%
FFCB Bond 3.070 3,459,260 1,285 6.57%
FHLB Bond 3.059 5,567,036 1,096 10.42%
FNMA Bond 4.180 169,280 2,178 0.35%
LGIP 3.765 10,911,342 1 19.36%
Municipal Bond 3.757 14,705,597 1,268 27.14%
Treasury Note 3.988 2,411,126 193 4.44%
Total / Average 3.289 55,031,792 756 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Security Type
December 31, 2025
Description
City of Prior Lake - Quarterly Investment Report
-12/31/2512/31/2412/31/23 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 December 31, 2025, the cost value of the investment portfolio is $55,031,792. This decreased
$1.3M from September 30, 2025.
The ‘weighted average yield to maturity at cost’ of the investment portfolio is currently 3.27% which is
a decrease from 3.52% as of September 30. The yield will fluctuate due in part to the balances that
are in the short-term money market accounts. At the end of December, the balance in the 4M money
market was $10.9M.
th
The following table shows the treasury rates for the 4 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 December 31, 2025, the cost value of the portfolio is less than the
market value of the investments by $437K. 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 fourth quarter of 2025; no
actual gain/loss is realized because the City holds the securities until maturity.
-12/31/2511/29/2510/31/25 US Treasury Yield Curve 10 yr 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50
During the fourth 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 Portfolio Holdings Distribution by Maturity Range indicates, approximately
29% or $16.5M matures within 1 month. Of that total, $10.9M is in the 4M investment pool. These
short-term securities are necessary to meet cash flow needs for payments to vendors (including con-
struction 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 opportu-
nities 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 December Treasurer’s Report, the book value of cash and investments, is $56.4M.
Of this balance, $55.4M is investments and $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 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
12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025 year prior
Market Value 14,201,388 12,587,578 17,904,955 14,068,240 16,545,469 2,344,081
1 1 1 1 1 0
3.44% 2.38% 3.33% 3.66% 2.48%-0.96%
Fixed Income Assets
40,092,623 38,001,643 39,957,155 42,228,163 38,486,323 (1,606,300)
39,478,162 37,672,515 39,860,683 42,444,924 38,923,497 (554,665)
1,009 963 934 1,030 1,070 61
931 926 900 992 1,036 105
3.17% 3.25% 3.31% 3.47% 3.61%0.44%
Total Portfolio Value
54,294,011 50,589,221 57,862,110 56,296,403 55,031,792 737,781
53,679,550 50,260,093 57,765,638 56,513,164 55,468,966 1,789,416
199,911 236,785 197,288 281,553 226,552 26,641
-614,461 -329,128 -96,472 216,761 437,174 1,051,635
748 727 649 778 756 8
691 699 626 749 732 41
3.24% 3.04% 3.31% 3.52% 3.27% 0.03%
BENCHMARK
90 Day T-Bill 4.37% 4.32% 4.41% 4.02% 3.67% -0.70%
4.24%4.23%4.29%3.83%3.59%-0.65%
4.16%4.03%3.96%3.68%3.48%-0.68%
Weighted Average Yield to
Maturity @ Cost
CITY OF PRIOR LAKE, MINNESOTA
Quarterly Investment Report
December 31, 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
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
City of Prior Lake - Quarterly Investment Report