Ordinance 2024-611 - Laserfiche WebLink

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CITY OF SUNNY ISLES BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) FAIR VALUE MEASUREMENTS The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The hierarchy is based on the valuation inputs used to measure the fair value as follows: Level I - Inputs are directly observable, quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs are other than quoted prices included within Level 1 that are for the asset or liability, either directly or indirectly. These inputs are derived from or corroborated by observable market data through correlation or by other means. Level 3 - Inputs are unobservable inputs used only when relevant Level 1 and Level 2 inputs are unavailable. The level in which an asset is assigned is not indicative of its quality but an indication of the source of valuation inputs. At September 30, 2023, the City had the following investments: Fair Value Measurements Using Investment by Level Fair Value Level 1 Level 2 Level 3 Debt Securities U.S. Government Agencies $ 42,207,267 $ -- $ 42,207,267 $ -- Total Debt Securities 42,207,267 -- 42,207,267 -- Investments not subject to level disclosure Certificate of deposit (exempt) 5,095,174 Total Investments $ 47,302,441 The City's U.S. Government Agencies and Securities are valued using the matrix pricing model (Level 2). Investments in certificates of deposit are exempt from GASB Statement No. 72, Fair Value Measurement and Application ("GASB 72"), fair value hierarchy disclosures per paragraph 69 of GASB 72 and are valued at their amortized cost and any accrued interest on these investments. 41