Is there a percentage limit that a bank can have on deposit for public funds deposit? In other words the total percentage of all deposits you can have in Public Funds deposits?? And if so where is that located.?

I am not aware of a limitation on public fund deposits. However, since most local governments require public deposits to be fully insured or collateralized (i.e. secured by an investment bond pledge, irrevocable letter of credit, or surety bond), your bank could encounter challenges in trying to secure significant amounts of uninsured public deposits.

If your bank has an unusually high level of public funds, then you may run into liquidity management issues as well (presuming the public funds are considered to be non-core deposits).

I would also be interested to know if a limitation exists. I cannot find any such regulatory limitation.