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Cash Management <br />� :, u:� '• . - <br />The City has written policies that restrict investment of the Ciry's operating funds to U.S. <br />Treasuries, Agencies, and Certificates of Deposit in MinnesoCa institutions. (See Note 3 in the <br />foomotes for further disclosure). <br />Because of the conservative investment policies and practices, the City makes no investments <br />in derivative products, mutual funds, collateralized mortgage obligations or other high risk <br />securities. As a result, the City has avoided the controversial investment practices encountered <br />by some ciUes within the metro area and Yhe U.S. <br />The interest earnings by funds were as follows: <br />General <br />Special Revenue <br />Debt Service <br />Capital Projects <br />Enterprise <br />Internal Service <br />Trust and Agency <br />Total <br />$ 261,252 <br />98.574 <br />496,218 <br />2,173,156 <br />194,647 <br />156,868 <br />124,997 <br />3.505.712 <br />There was an increase in 1997 interest earnings due primarily to higher cash balances and <br />higher interest rates as compared to 1996. The rate of return on all cash balances (8.38)% not <br />including marke[ gains and losses) still compares favorably with the Treasury Bill Index which <br />achieved 5.7% for 1997. <br />The following is a history of earnings by year: <br />Y_�aL <br />1988 <br />1989 <br />1990 <br />1991 <br />1992 <br />1993 <br />1994 <br />1995 <br />1996 <br />1997 <br />S� <br />r in <br />$2,140,566 <br />2,743,623 <br />2,774,508 <br />2,652,820 <br />2,536,716 <br />1,869,398 <br />2,644,143 <br />3,153,960 <br />3,028,942 <br />3,505,712 <br />