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CITY OF ROSEVILLE MINNESOTA NOtES TO FiNANCIpI STATEMENTS DECEMBER 31. 7992 Note 1- SuimerY of Sianificant Accountina Poticies (Lontinued) H. Total Colums on Combined Statements Total colums on the combined statements ere ceptioned "Memorandun Only" to indicate they are presented only to facilitate financial analysis. Data in these coLums do not present financial position, results of operations, or cash flows in conformity uith generelly accepted accounting principles. Neither is such data canparable to a tonsolidation. Interfund eliminations have not been made in the aggregation of this deta. Note 2- Excenditures in Extess of Budoet ard Deficits in Pund eatences The City Hatt Debt Service Fund - 1992 fund balance increased it's defitit of E2,675 to e totat of E6,665. This increase was due to en unenticipated reduction in property taxes received. The Recreation Fund - expenditures exceeded the 7992 6udget by 589,206 resulting in a fund defitit of E31,984. The defitit uas due to a combination of an unanticipeted reduction in property texes and an increase in unanticipated experditures. The Tele-Camunications Fund - 1992 expenditures exceeded budget by 5167,030 resulting in a fund deficit of 584,543. The defitit was due to capital expenditures essociated with the televising of City Council meetings. No remedial action is required for these excess expenditures or fund deficits. 7he fund deficits are expected to be etiminated through revenues in future yeers. Note 3- Lash and Tencorarv Investments Cesh surpluses are pooled and invested in certificates of deposit and short•term govertment securities. Investment earnings are ellocated to funds on the basis of average tash balances or specifically in the case of restricted yietd funds. Investments ere stated at cost, which approximetes market, and are not identified uith specitic funds with exception of tertein debt service funds which are subject to restricted yield. In those instances, spetific investme�ts are setured at belou arbitrage rates. Cesh and temporary investments et year end consists of ihe follouing: Repurchase agreements U.S. Goverrvnent securities Totel Investments 8enk Deposits Petty Cesh arxl chenge funds CerrVin9 Value E 3,400,000 22.842.395 E 26.242.395 E 7,776,517 4,893 Market Value E 3,400,000 26.410.643 529.870,643 Totel Cash end Deposits E 1,781,414 Total Cash and Investments 528.023.805 In accordence with applicable Minnesota stetutes, the City meinteins deposits at depository banks authorized by the City Council. Minnesote Statutes require that all deposits be protected by insurence, surety bond or collateral. If collateral is ptedged as protection for the deposits, the merket vatue of the tottateral must at e minimim be 710% of the deposits not covered by insuranee or bonds (14D% in case of mort9age notes pledged). Atl funds on deposii at the depositories were futty insured end/or eotteterelized by cotlateral held in safekeeping by the City's agent in the City's neme. The City invests only in debt obligetions whith are authorized under State Statutes. Stete Statutes permit municipal investments in direct U. 5. goverrvnent obli8ations, federal egency issues, sheres of mutual funds investin8 exclusiveLy in U.S. goverrment and age�cy issues, obligations of State of Minnesota or Minnesota munitipalities, benkers ecceptences, highest quality cam�erciet paper, and interest beering deposits. � The cerrying vetue, market value end credit risk of the U. S. Goverrment securities at year end is as follous: Cerrvin9 Velue Merket Value Lredit risk category 7 f22,&2,395 526,410,643 Credit risk category 2 3,400,000 3,400,000 Credit risk category 3 - ' 526.242.� 529.8�7 .643 34