HomeMy WebLinkAbout05(D) - Approval of 1st Quarter 2026 Investment Report Report
ITEM: 5D
CITY COUNCIL AGENDA REPORT
MEETING DATE: April 28, 2026
PREPARED BY: Bradley Smith, Accountant
PRESENTED BY: Nicole Klekner, Finance Director
AGENDA ITEM: Approval of 1st Quarter 2026 Investment Report
RECOMMENDED ACTION:
Approve the 2026 1st 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 first quarter of 2026.
Staff has prepared a list of investments as of March 31, 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 1st Quarter
Investment Report as presented.
2. Motion and second to remove the Investment Report from the consent agenda for
additional discussion.
ATTACHMENTS:
1. 2026 Q1 Investment Summary Report (attach 1)
2. 2026 Q1 Year to Year Summary Analysis (attach 2)
3. 2026 Q1 Investment Portfolio by Security Type Graph (attach 3)
4. 2026 Q1 Investment Portfolio by Maturity Range Graph (attach 4)
5. 2026 Q1 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 1.912 17,372,191 2 32.43%
1-3 Months 4.050 249,000 77 0.46%
3-6 Months 1.004 1,983,000 115 3.70%
6-9 Months 1.359 3,477,287 225 6.52%
9-12 Months 3.015 1,189,839 299 2.22%
1-2 Years 3.511 5,225,097 550 10.07%
2-3 Years 4.553 6,957,509 929 13.19%
3-4 Years 4.074 6,188,248 1,299 11.95%
4-5 Years 4.011 4,551,253 1,667 9.00%
5-10 Years 4.091 5,157,781 2,090 10.46%
Total / Average 3.062 52,351,205 729 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Maturity Range
March 31, 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 5,723,980.32 5,723,980.32 5,723,980.32 5,723,980.32 N/A 1 10.67
Morgan Stanley Cash CASH5089 12/31/2010 0.000 908,229.49 908,229.49 908,229.49 908,229.49 N/A 1 1.69
Oppenheimer Cash MM9905 12/27/2011 0.000 1,774,581.57 1,774,581.57 1,774,581.57 1,774,581.57 N/A 1 3.31
Sub Total / Average Cash 0.000 8,406,791.38 8,406,791.38 8,406,791.38 8,406,791.38 1 0.00 15.67
1st Security Bk of Wash 4.05 6/16/2026 33625CFL8 12/16/2022 4.050 249,000.00 249,000.00 249,000.00 249,062.25 6/16/2026 77 414.43 0.46
Amerant Bank 4.65 9/8/2028 02357QCF2 9/8/2023 4.650 249,000.00 249,000.00 249,000.00 253,213.08 9/8/2028 892 729.60 0.46
AMERASIA BK FLUSHING NY 4 2/15/2029 02357PAG4 2/15/2024 4.000 248,000.00 248,000.00 248,000.00 248,404.24 2/15/2029 1,052 434.85 0.46
American Express Natl 3 5/4/2027 02589ACK6 4/30/2022 3.000 245,000.00 245,000.00 245,000.00 242,682.30 5/4/2027 399 2,960.14 0.46
Bank Hapoalim 0.95 7/23/2026 06251A2Y5 7/23/2021 0.950 245,000.00 245,000.00 245,000.00 242,755.80 7/23/2026 114 427.24 0.46
Bank of Belleville 4 6/15/2027 06063PDD4 12/15/2022 4.000 249,000.00 249,000.00 249,000.00 249,313.74 6/15/2027 441 436.60 0.46
BMW Bk 4.75 3/17/2028 055180AW83 3/17/2023 4.750 245,000.00 245,000.00 245,000.00 248,804.85 3/17/2028 717 446.37 0.46
BNY Mellon4.5 9/7/2028 05584CJJ6 9/7/2023 4.500 244,000.00 244,000.00 244,000.00 247,164.68 9/7/2028 891 721.97 0.45
Bridgewater Bk 4.8 3/29/2028 108622NK3 3/29/2023 4.800 245,000.00 245,000.00 245,000.00 249,216.45 3/29/2028 729 64.44 0.46
Carter Bank & Trust 3.8 9/13/2029 146102BB3 9/13/2024 3.800 249,000.00 249,000.00 249,000.00 247,662.87 9/13/2029 1,262 466.62 0.46
Celtic Bank 4.6 9/19/2028 15118RJ32 9/19/2023 4.600 249,000.00 249,000.00 249,000.00 252,961.59 9/19/2028 903 376.57 0.46
Central Fed Savings 4.5 9/14/2028 15347VAC5 9/14/2023 4.500 249,000.00 249,000.00 249,000.00 252,363.99 9/14/2028 898 521.88 0.46
CIBC Bank USA 4.5 5/25/2028 12547CBN7 5/25/2023 4.500 244,000.00 244,000.00 244,000.00 246,937.76 5/25/2028 786 3,790.36 0.45
Citizens Bk Batesville Ark 3.85 2/16/2029 173477BZ2 2/16/2024 3.850 248,000.00 248,000.00 248,000.00 247,394.88 2/16/2029 1,053 392.38 0.46
Customers Bk 4.95 10/27/2028 23204HPE2 10/27/2023 4.950 240,000.00 240,000.00 240,000.00 245,913.60 10/27/2028 941 5,044.93 0.45
Discover Bk 4.5 7/24/2028 2546736R2 7/26/2023 4.500 244,000.00 244,000.00 244,000.00 247,174.44 7/24/2028 846 1,925.26 0.45
Farmers BK 4.85 10/17/2028 30916PAA2 10/17/2023 4.850 248,000.00 248,000.00 248,000.00 254,103.28 10/17/2028 931 461.35 0.46
First Finl Bk3.3 8/2/2027 32022RSG3 8/1/2022 3.300 245,000.00 245,000.00 245,000.00 243,130.65 8/2/2027 489 664.52 0.46
First National Bank/Dama 5 10/31/2028 32117BGJ1 10/31/2023 5.000 248,000.00 248,000.00 248,000.00 254,549.68 10/31/2028 945 1,019.18 0.46
First Natl Bk 4.75 10/30/2028 32110YH73 10/30/2023 4.750 245,000.00 245,000.00 245,000.00 249,941.65 10/30/2028 944 0.00 0.46
First Premier Bank 3.65 9/26/2029 33610RVT7 9/26/2024 3.650 245,000.00 245,000.00 245,000.00 242,403.00 9/26/2029 1,275 122.50 0.46
Genoa Banking Company 4.95 10/31/2028 372348DH2 10/31/2023 4.950 243,000.00 243,000.00 243,000.00 249,036.12 10/31/2028 945 4,976.17 0.45
Goldman Sachs Bk 1 7/28/2026 38149MXK4 7/28/2021 1.000 245,000.00 245,000.00 245,000.00 242,640.65 7/28/2026 119 416.16 0.46
Hershey State Banl 3.65 9/26/2028 427883AV5 9/26/2024 3.650 240,000.00 240,000.00 240,000.00 238,452.00 9/26/2028 910 120.00 0.45
Legacy Bk & Tr Co 3.5 7/29/2027-22 52470QBK9 8/1/2022 3.500 245,000.00 245,000.00 245,000.00 243,752.95 7/29/2027 485 46.99 0.46
Live Oak Bkg Co 3.55 8/2/2027-23 538036WY6 8/2/2022 3.550 249,000.00 249,000.00 249,000.00 247,911.87 8/2/2027 489 702.32 0.46
Mauch Chunk Trust 4.35 2/28/2029 577234DA2 3/28/2024 4.350 249,000.00 249,000.00 249,000.00 251,791.29 2/28/2029 1,065 89.03 0.46
Medallion Bk Salt 4.4 7/31/2028 58404DSW2 7/31/2023 4.400 245,000.00 245,000.00 245,000.00 247,665.60 7/31/2028 853 0.00 0.46
Merrick Bk 4.85 11/6/2029 59013KXW1 11/6/2023 4.850 245,000.00 245,000.00 245,000.00 252,183.40 11/6/2029 1,316 813.87 0.46
Morgan Stanley Bank Step 11/28/2027 61765QP52 9/2/2021 1.004 249,000.00 249,000.00 249,000.00 237,842.31 11/28/2027 607 211.48 0.46
MORGAN STANLEY PRIVATE BK 5.05 11/8/2028 61768EE82 11/8/2023 5.050 243,000.00 243,000.00 243,000.00 249,672.78 11/8/2028 953 4,807.74 0.45
NORTHEAST BK LEWISTON 3.7 9/23/2027 66405SFA3 9/23/2024 3.700 245,000.00 245,000.00 245,000.00 244,238.05 9/23/2027 541 198.68 0.46
Old Dominion Natl Bk 4 1/29/2029 679585CL1 1/29/2024 4.000 249,000.00 249,000.00 249,000.00 249,415.83 1/29/2029 1,035 0.00 0.46
Ponce De Leon Fed Bk 3.5 9/15/2027 732329BD8 9/15/2022 3.500 245,000.00 245,000.00 245,000.00 243,632.90 9/15/2027 533 375.89 0.46
SALLIE MAE BK SALT LAKE CITY 3.9 8/13/2030 795451EB5 8/13/2025 3.900 245,000.00 245,000.00 245,000.00 243,895.05 8/13/2030 1,596 1,204.19 0.46
Schuyler Svgs Bk 4.35 7/27/2028 80832MAA5 7/27/2023 4.350 244,000.00 244,000.00 244,000.00 246,322.88 7/27/2028 849 1,832.01 0.45
Southern First Bank NA 4.85 10/17/2028 84287PJB9 11/7/2023 4.850 244,000.00 244,000.00 244,000.00 249,846.24 10/17/2028 931 5,349.62 0.45
Synchrony Bank 0.9 8/6/2026 87165GD58 8/6/2021 0.900 248,000.00 248,000.00 248,000.00 245,534.88 8/6/2026 128 324.10 0.46
Third Fed Sav & Ln 3.3 8/19/2027 88413QDN5 8/19/2022 3.300 245,000.00 245,000.00 245,000.00 243,042.45 8/19/2027 506 886.03 0.46
Toyota Finl Svgs Bk 0.95 7/15/2026 89235MLC3 7/15/2021 0.950 245,000.00 245,000.00 245,000.00 242,910.15 7/15/2026 106 478.25 0.46
UBS Bk USA 4.4 7/26/2028 90355GEX0 7/26/2023 4.400 245,000.00 245,000.00 245,000.00 247,626.40 7/26/2028 848 147.67 0.46
Uinta Bk Mtn 4.4 3/22/2028 903572FT7 3/22/2023 4.400 245,000.00 245,000.00 245,000.00 247,317.70 3/22/2028 722 265.81 0.46
Univest Bank & Trust 4.5 6/21/2028 91527PCD7 6/21/2023 4.500 249,000.00 249,000.00 249,000.00 252,114.99 6/21/2028 813 306.99 0.46
Valley Central 4 4/28/2028 91944RAZ1 4/28/2023 4.000 249,000.00 249,000.00 249,000.00 249,470.61 4/28/2028 759 81.86 0.46
Winter Hill Bank 3.5 8/26/2027-23 975875BH7 8/26/2022 3.500 245,000.00 245,000.00 245,000.00 243,681.90 8/26/2027 513 117.47 0.46
Sub Total / Average Certificate Of Deposit 3.855 11,069,000.00 11,069,000.00 11,069,000.00 11,125,153.78 760 45,173.52 20.63
FAMC 2 10/27/2031 31422XPG1 9/5/2025 3.800 600,000.00 541,299.65 546,716.94 533,706.00 10/27/2031 2,036 5,133.33 1.12
FAMC 4.17 5/24/2029 31422XYY2 1/19/2024 4.580 325,000.00 318,724.25 321,302.71 322,949.25 5/24/2029 1,150 4,781.02 0.61
Sub Total / Average FAMC Bond 4.074 925,000.00 860,023.90 868,019.65 856,655.25 1,725 9,914.35 1.72
FFCB 0.72 10/27/2026-21 3133EMES7 6/18/2021 1.000 500,000.00 492,715.00 499,218.27 491,420.00 10/27/2026 210 1,540.00 0.93
FFCB 0.74 11/24/2026-21 3133EMHC9 4/14/2021 1.053 450,000.00 442,350.00 449,111.85 441,076.50 11/24/2026 238 1,174.75 0.84
FFCB 1.26 10/15/2030-24 3133EMDG4 9/13/2024 3.700 500,000.00 434,025.00 450,763.60 440,030.00 10/15/2030 1,659 2,905.00 0.93
FFCB 1.45 6/11/2030-24 3133ELH31 9/13/2024 3.620 500,000.00 444,170.00 459,185.79 450,495.00 6/11/2030 1,533 2,215.28 0.93
FFCB 1.94 6/30/2031-25 3133EMN24 5/5/2025 4.070 425,000.00 376,154.75 383,328.28 381,794.50 6/30/2031 1,917 2,061.25 0.79
FFCB 2.87 2/25/2030 3133ENPL8 9/9/2024 3.685 1,000,000.00 960,000.00 971,388.47 959,920.00 2/25/2030 1,427 2,870.00 1.86
FFCB 3.05 5/18/2029 3133ENXB1 1/19/2024 4.030 325,000.00 309,845.25 316,090.94 317,229.25 5/18/2029 1,144 3,662.12 0.61
Sub Total / Average FFCB Bond 3.070 3,700,000.00 3,459,260.00 3,529,087.20 3,481,965.25 1,195 16,428.40 6.90
FHLB 1 12/30/2026-21 3130ANY87 10/20/2021 1.205 500,000.00 494,850.00 499,256.14 489,940.00 12/30/2026 274 1,250.00 0.93
FHLB 1.25 11/10/2026-22 3130APLR4 11/10/2021 1.250 450,000.00 450,000.00 450,000.00 443,155.50 11/10/2026 224 2,203.12 0.84
FHLB 1.35 2/18/2031-24 3130AKZS8 9/13/2024 3.770 500,000.00 430,995.00 447,563.25 440,695.00 2/18/2031 1,785 243.75 0.93
FHLB 1.48 11/19/2032 3130AKG83 10/2/2025 3.920 430,000.00 365,272.10 369,744.66 360,628.10 11/19/2032 2,425 2,333.47 0.80
FHLB 1.875 12/10/2031-25 3130ALJN5 12/30/2024 4.550 500,000.00 421,115.00 435,299.37 441,590.00 12/10/2031 2,080 546.88 0.93
FHLB 2.375 8/15/2029 3130AGVG7 2/12/2024 4.310 270,000.00 244,620.00 254,438.82 255,930.30 8/15/2029 1,233 819.37 0.50
FHLB 3 4/20/2026 3130ARGN5 12/29/2023 4.350 1,000,000.00 970,620.00 999,302.97 999,570.00 4/20/2026 20 13,416.67 1.86
FHLB 4.25 9/10/2032 3130ATHY6 8/22/2025 4.090 500,000.00 504,847.29 504,431.43 502,700.00 9/10/2032 2,355 1,239.58 0.93
FHLB Step 9/30/2031-25 3130AP6G5 8/15/2025 4.103 500,000.00 468,050.00 471,306.41 469,460.00 9/30/2031 2,009 0.00 0.93
FHLN 5159508 1.25 10/16/2026-21 3130ALW83 4/16/2021 1.250 216,666.67 216,666.67 216,666.67 213,648.50 10/16/2026 199 1,241.32 0.40
FHLN 5214149 Step 7/22/2026-21 3130AN4W7 7/22/2021 1.057 1,000,000.00 1,000,000.00 1,000,000.00 992,330.00 7/22/2026 113 2,300.00 1.86
Sub Total / Average FHLB Bond 3.059 5,866,666.67 5,567,036.06 5,648,009.72 5,609,647.40 1,006 25,594.16 10.93
FNMA Bond
City of Prior Lake
Portfolio Holdings
Investment Portfolio - by Security Type
As of 3/31/2026
Cash
Certificate Of Deposit
FAMC Bond
FFCB Bond
FHLB Bond
FNMA 1.5 12/18/2031-25 3135GAA50 5/5/2025 4.180 200,000.00 169,280.00 173,472.56 172,234.00 12/18/2031 2,088 858.33 0.37
Sub Total / Average FNMA Bond 4.180 200,000.00 169,280.00 173,472.56 172,234.00 2,088 858.33 0.37
League of Minnesota Cities - 4M Fund LGIP LGIP5101M 11/30/2010 3.604 594,756.35 594,756.35 594,756.35 594,756.35 N/A 1 1.11
League of Minnesota Cities - 4M Plus Fund LGIP LGIP5101MP 11/30/2010 3.620 7,253,141.57 7,253,141.57 7,253,141.57 7,253,141.57 N/A 1 13.52
League of Minnesota Cities LGIP LGIP5211M 7/24/2024 3.604 146,881.56 146,881.56 146,881.56 146,881.56 N/A 1 0.27
Sub Total / Average Local Government Investment Pool 3.619 7,994,779.48 7,994,779.48 7,994,779.48 7,994,779.48 1 0.00 14.90
AUSTIN TEX CMNTY COLLEGE 1.78 2/1/2030 052404QL7 9/11/2024 3.700 500,000.00 453,475.00 466,848.87 459,765.00 2/1/2030 1,403 1,483.33 0.93
AUSTIN TEX CMNTY COLLEGE DIST TX 1.921 8/1/2031-30 052403HG0 8/22/2025 4.000 545,000.00 485,595.00 491,645.00 487,311.75 8/1/2031 1,949 1,744.91 1.02
BROCKTON MASS TAXABLE GO PENSION BDS 2.558 11/1/20 111746JF1 8/14/2025 4.000 500,000.00 460,660.00 464,628.66 455,645.00 11/1/2031 2,041 5,329.17 0.93
Cabot-Las Positas 1.287 8/1/2027 15722TJS1 4/28/2022 3.500 550,000.00 491,991.50 535,263.85 531,602.50 8/1/2027 488 1,179.75 1.03
California St 2.5 10/1/2029 13063DRE0 8/12/2024 4.100 500,000.00 463,270.00 474,939.02 476,690.00 10/1/2029 1,280 6,250.00 0.93
California St 4.35 11/1/2032 13063ESC1 11/6/2025 4.030 215,000.00 219,151.65 218,915.76 214,359.30 11/1/2032 2,407 3,766.98 0.40
California St 4.875 9/1/2030 13063EHU3 7/18/2025 4.101 230,000.00 238,144.30 237,029.95 237,599.20 9/1/2030 1,615 934.38 0.43
Cecil Cnty MD 1.05 11/1/2026 1498433N2 9/23/2021 0.970 500,000.00 501,985.00 500,228.83 492,335.00 11/1/2026 215 2,187.50 0.93
Colorado HSG & FIN 6 11/1/2029 19648G-MF-6 9/11/2024 4.253 1,000,000.00 1,079,960.00 1,055,848.46 1,054,750.00 11/1/2029 1,311 25,000.00 1.86
CONNECTICUT ST 4.79 3/15/2031 20772KZM4 5/7/2025 4.382 500,000.00 510,460.00 508,855.29 513,150.00 3/15/2031 1,810 1,064.44 0.93
Enfield Conn Taxable 1.39 8/1/2027 292749UK2 4/6/2022 3.000 335,000.00 308,658.95 328,384.23 323,774.15 8/1/2027 488 776.08 0.62
Franklin Twp 1.623 2/1/2029 355064KL9 10/4/2023 5.350 250,000.00 207,310.00 227,240.77 232,945.00 2/1/2029 1,038 676.25 0.47
Goose Creek Tex 4.5 2/15/2027 382604Z25 11/3/2022 4.700 500,000.00 496,125.00 499,205.19 502,830.00 2/15/2027 321 2,875.00 0.93
Hawaii St 1.892 10/1/2029 419792B47 8/14/2024 3.901 435,000.00 394,710.30 407,480.89 404,545.65 10/1/2029 1,280 4,115.10 0.81
Hawaii St GO Ref 2.802 10/1/2027-26 419792KL9 7/28/2022 3.350 100,000.00 97,413.00 99,248.94 98,393.00 10/1/2027 549 1,401.00 0.19
KENNEBUNKPORT ME 5 10/1/2029 489299BK2 10/1/2024 3.700 295,000.00 312,357.80 307,167.57 304,755.65 10/1/2029 1,280 7,375.00 0.55
Mason & Kitsap Cntys 1.583 12/1/2028 575181HB1 5/19/2023 4.150 445,000.00 389,032.35 417,998.31 417,494.55 12/1/2028 976 2,348.12 0.83
Massachusetts St 0.986 11/1/2026 57582RK96 6/30/2021 1.000 500,000.00 499,635.00 499,959.76 491,785.00 11/1/2026 215 2,054.17 0.93
Milwaukee Cnty Wis 2 12/1/2026 6022453V2 11/23/2021 1.300 500,000.00 516,960.00 502,265.65 493,315.00 12/1/2026 245 3,333.33 0.93
Minnesota St 7 11/1/2028 604146GK0 11/8/2023 5.251 250,000.00 268,952.50 259,851.13 268,840.00 11/1/2028 946 7,291.67 0.47
New York NY 1.92 11/1/2029 64971XUUO 9/25/2023 5.150 275,000.00 228,998.00 247,943.64 254,922.25 11/1/2029 1,311 2,200.00 0.51
New York NY 2.36 8/1/2031-30 64966QFX3 7/23/2025 4.250 400,000.00 360,196.00 364,737.27 362,412.00 8/1/2031 1,949 1,573.33 0.75
New York NY 3.7 8/1/2029-25 64966LYZ8 11/24/2023 5.100 250,000.00 232,897.50 239,962.47 246,535.00 8/1/2029 1,219 1,541.67 0.47
New York NY City 4.2 11/1/2030 64971QRB1 5/5/2025 4.350 500,000.00 496,370.00 496,967.16 494,560.00 11/1/2030 1,676 8,750.00 0.93
NEW YORK NY CITY 4.87 5/31/2031 64972JGZ5 8/12/2025 4.120 500,000.00 519,160.00 517,070.31 513,075.00 5/31/2031 1,887 10,145.83 0.93
New York State TFA 4.2 11/1/2028-23 64971Q7N7 9/7/2023 4.850 250,000.00 242,657.50 246,309.24 250,010.00 11/1/2028 946 4,375.00 0.47
NEWARK NJ GO BDS 2019 4.3 11/1/2030 650367PB5 8/22/2025 4.091 600,000.00 605,772.00 605,099.56 605,802.00 11/1/2030 1,676 10,750.00 1.12
San Bernardino Calif 2.332 8/1/2032-30 796711H85 10/10/2025 4.206 300,000.00 267,000.00 269,282.27 265,341.00 8/1/2032 2,315 1,166.00 0.56
SIOUX FALLS S D 3.65 11/15/2030-28 829594ML1 9/18/2024 3.720 500,000.00 498,070.00 498,549.71 487,195.00 11/15/2030 1,690 6,894.44 0.93
Springboro Ohio 5 12/1/2027 85023MAF2 7/12/2022 4.002 245,000.00 256,755.10 248,643.60 248,432.45 12/1/2027 610 4,083.33 0.46
St Louis Park Minn 4.5 2/1/2027 791740V34 9/7/2022 3.345 190,000.00 198,863.50 191,692.22 191,056.40 2/1/2027 307 1,425.00 0.35
STATE BK INDIA NEW YORK NY 4 8/21/2030 856288CM5 8/21/2025 4.000 245,000.00 245,000.00 245,000.00 244,857.90 8/21/2030 1,604 1,088.89 0.46
TARRANT REGL WTR DIST TEX 1.45 9/1/2029 876448EB3 9/11/2024 3.650 500,000.00 450,390.00 465,852.15 459,750.00 9/1/2029 1,250 604.17 0.93
Toledo Ohio City Sch 5 12/1/2027 889294RT3 9/28/2022 4.520 100,000.00 102,186.00 100,705.53 101,769.00 12/1/2027 610 1,666.67 0.19
Waukesha Wis 1.2 10/1/2027 943080UZ2 9/1/2022 3.660 375,000.00 332,557.50 362,445.62 360,300.00 10/1/2027 549 2,250.00 0.70
Wicomico Cnty MD 2 12/1/2026 967546BA9 5/13/2022 3.450 380,000.00 356,975.80 376,607.98 375,675.60 12/1/2026 245 2,533.33 0.71
Winthrop Minn 2 2/1/2029-28 976367PN6 11/24/2023 5.100 225,000.00 193,556.25 207,785.54 211,839.75 2/1/2029 1,038 750.00 0.42
YSLETA TEX INDPT SCH 0 8/15/2030 98816PDU3 4/14/2025 4.447 510,000.00 403,246.80 422,472.24 425,651.10 8/15/2030 1,598 0.00 0.95
Sub Total / Average Municipal Bond 3.818 14,995,000.00 14,386,499.30 14,610,132.64 14,561,070.20 1,202 142,983.84 27.95
T-Note 0.625 11/30/2027 91282CAY7 5/5/2022 3.040 500,000.00 438,535.00 481,605.81 474,260.00 11/30/2027 609 1,038.80 0.93
Sub Total / Average Treasury Note 3.040 500,000.00 438,535.00 481,605.81 474,260.00 609 1,038.80 0.93
Total / Average 3.062 53,657,237.53 52,351,205.12 52,780,898.44 52,682,556.74 729 241,991.40 100
Local Government Investment Pool
Municipal Bond
Treasury Note
YTM @
Cost Cost Value
Days to
Maturity
% of
Portfolio
Cash - 8,406,791 1 15.67%
Certificate of Deposit 3.855 11,069,000 760 20.63%
FAMC Bond 4.074 860,024 1,725 1.72%
FFCB Bond 3.070 3,459,260 1,195 6.90%
FHLB Bond 3.059 5,567,036 1,006 10.93%
FNMA Bond 4.180 169,280 2,088 0.37%
LGIP 3.619 7,994,779 1 14.90%
Municipal Bond 3.818 14,386,499 1,202 27.95%
Treasury Note 3.040 438,535 609 0.93%
Total / Average 3.062 52,351,205 756 100.00%
CITY OF PRIOR LAKE, MINNESOTA
Investment Portfolio - Diversification, by Security Type
March 31, 2026
Description
City of Prior Lake - Quarterly Investment Report
-3/31/263/31/253/31/24 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 March 31, 2026, the cost value of the investment portfolio is $52,351,205. This decreased $2.7M
from December 31, 2025.
The ‘weighted average yield to maturity at cost’ of the investment portfolio is currently 3.04% which is
a decrease from 3.27% as of December 31. The yield will fluctuate due in part to the balances that are
in the short-term money market accounts. At the end of March, the balance in the 4M money market
was $7.99M.
st
The following table shows the treasury rates for the 1 quarter of 2026 compared to the previous two
years. Short-term yields in 2026 are lower as compared to both of the two years prior. Short-term
securities are necessary to meet cash flow needs for payments to vendors (including construction con-
tracts) and payroll. Long-term yields in 2026 are comparable to a year prior, and slightly lower or com-
parable to 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 March 31, 2026, the cost value of the portfolio is less than the market
value of the investments by $331K. 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 first quarter of 2026; no actual
gain/loss is realized because the City holds the securities until maturity.
-3/31/262/27/261/30/26 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
The chart below shows how rates offered by financial institutions slightly increased during the first quar-
ter of 2026, especially for 1-3 year terms, recovering after a decline in February.
As the attached chart titled Portfolio Holdings Distribution by Maturity Range indicates, approximately
32% or $17.4M matures within 1 month. Of that total, $7.99M 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 March Treasurer’s Report, the book value of cash and investments, is $55.6M. Of
this balance, $52.8M is investments and $2.8M is cash. Because City funds are pooled for investment
purposes, interest is allocated to each fund monthly and is based upon each individual fund’s propor-
tionate 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
3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 year prior
Market Value 12,587,578 17,904,955 14,068,240 16,545,469 16,401,571 3,813,993
1 1 1 1 1 0
2.38% 3.33% 3.66% 2.48% 1.76%-0.62%
Fixed Income Assets
38,001,643 39,957,155 42,228,163 38,486,323 35,949,634 (2,052,009)
37,672,515 39,860,683 42,444,924 38,923,497 36,280,986 (1,391,529)
963 934 1,030 1,070 1,049 86
926 900 992 1,036 1,014 88
3.25% 3.31% 3.47% 3.61% 3.62%0.37%
Total Portfolio Value
50,589,221 57,862,110 56,296,403 55,031,792 52,351,205 1,761,984
50,260,093 57,765,638 56,513,164 55,468,966 52,682,557 2,422,464
236,785 197,288 281,553 226,552 241,991 5,206
-329,128 -96,472 216,761 437,174 331,352 660,480
727 649 778 756 729 2
699 626 749 732 704 5
3.04% 3.31% 3.52% 3.27% 3.04% 0.00%
BENCHMARK
90 Day T-Bill 4.32% 4.41% 4.02% 3.67% 3.70% -0.62%
4.23%4.29%3.83%3.59%3.72%-0.51%
4.03%3.96%3.68%3.48%3.68%-0.35%
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
March 31, 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