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Investment Policies <br />The City has written policies that restrict investment of the <br />City's operating funds to U.S. Treasuries, Agencies, and Certifi- <br />cates of Deposit in Minnesota institutions. (See Note 3 in the <br />footnotes for further disclosure). <br />Most temporary cash surpluses during the year are invested in <br />various securities which State Statutes permit. Investment <br />yields ranged from 5.25% to 12o during the year. The 1990 aver- <br />age interest rate on pooled funds was approximately 9.9e. Non- <br />pooled funds were invested in restricted yield securities which <br />ranged from 5.25% to 7%. The interest earnings by funds were as <br />follows: <br />General <br />Special revenue <br />Debt service <br />Capital projects <br />Enterprise <br />Internal Service <br />Trust and Agency <br />Total <br />$ 1�1,748 <br />127,472 <br />594,360 <br />1,336,432 <br />404,501 <br />108,283 <br />31,712 <br />$ 2.774,508 <br />1990 did show an increase in interest earnings due primarily to <br />higher interest rates, larger cash balances and a favorable <br />banking agreement which went into effect in 1989. <br />The following is a history of earnings by year: <br />Year <br />1983 <br />1984 <br />1985 <br />1986 <br />1987 <br />1988 <br />19$9 <br />1990 <br />RisK Hanagement <br />Internal Service Funds <br />Earninas <br />$1,223,593 <br />1,485,822 <br />1,483,921 <br />2,522,613 <br />2,021,941 <br />2,140,566 <br />2,743,623 <br />2,774,508 <br />The Workers' Compensation Self-Insurance Fund was established to <br />service workers' compensation insurance claims. A11 awards of <br />compensation, legal fees, administrative costs and the premium <br />for excess coverage are paid from this fund. The Workers' <br />Compensation Reinsurance Association provided excess coverage for <br />all claims in 1990 in excess of $200,000, with no limits. <br />16 <br />