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CITY OF ROSEVILLE NOTES TO F[NANCIAL STATEMENTS DECEMBER 37. 1993 Note 1 Sumnarv of Sianificant Accountina Policies (Continued) H. Total Columns on Combined Statements Total colums on the combined statements are captioned "Memorandum Only" to indicate they are presented onty to facilitate financiaL analysis. Data in these colums do not present financiat position, results of operations, or cash flous in conformity uith generally accepted accounting principles. Neither is such data co�arable to a consolidation. Interfund elimina[ions have not been made in the aggregation of this data. Note 2 Expenditures in Excess of Budaet and Deticits_in Fund Balances The Recreation Fund - expenditures exceeded the 1993 budget by 5758,888 resulting in a fund deficit of 558,728. The deficit uas due to hi�gher than expected expenditures. deficiteto E50,336t�The deficit uas3due to capitat expendXturestin 1992 associ� ted uith�the�televising�of City Counci� meetings. The Comnunity Develoqnent Fund - expenditures exceeded the 1993 budget by 8105,738. The excess expenditures uere higher than expected due to an increase in operations uhich generated additional revenue in excess of those expenditures. The additionat revenue uas 5223,639 in excess of the budgeted revenue for 1993. No remedial action is required for these excess expenditures or fund deficits. The fund deficits are expected to be eliminated through revenues in future years. Note 3- Cash and Temporarv lnvestments Cash surpluses are pooted end invested in certificates of deposit and short-term government securities. Investment earnings are allocated to funds on the basis of average cash balances or specificalty in the case of restricted yietd funds. Investments are stated at cost, uhich approximates market, and are not identified uith specific funds uith exception of certain debt service tunds uhich are subject to restricted yield. [n those instances, specific investments are secured at beLow arbitrage rates. Cash and temporary investments at year end consists of the foltowing: Repurchase agreements U.S. GoverrvnenT securities Toial Investments Bank Deposits Petty Cash and chan9e funds Total Cash and Deposits Total Cssh and [nvestments Carrying Value S 3,800,000 23.690.646 8 27,490,646 E 399,879 5.750 E 405,629 527.896.275 Market Value E 3,800,000 33.837.883 537.637.883 In accordance uith appticable Minnesota statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that alt deposits be protected by insurence, surety bond or collateral. If coLleceral is pledged as protection for the deposits, the merket velue of the collateral must at e minimun be 110� of the deposits not covered by insurance or bonds (140% in case of mortgage notes ptedged). All funds on deposit at the depositories uere futly insured and/or collateratized by collateral held in safekeeping by the City's agent in the City's name. 7he City invests oniy in �eb`. cbliga;ions whech are �ythorized under State Statutes. State Statutes permit municipal investments in direct U. S. 9overrment obli9ations, federat agency issues, shares of mutual funds investin9 exctusively in U.S. 9overnment and agency issues, obtigations of State of Minnesota or Minnesota municipalities, bankers acceptances, highest quality commerciat paper, and interest bearing deposits. The carrying vatue, market value and credit risk of the U. 5. Goverrment securities at year end is as follous: Carrvina Value Market Value Credit risk category i E23,690,646 833,837,883 Credit risk category 2 3,800,000 3,600,000 Credit risk category 3 - " 527,490.646 537.637,883 35