Annual_Report_1997_001 - Laserfiche WebLink

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CITY OF ROSEVILLE NOTES TO FINANCIAL STATEMENTS DECEMBER 31. 1997 Note � Exoenditure� in Excett of Budg�t and Deficits in Fund Balances - con[inued The Solid Waste Recycling Fund - ended the year with a retained earnings deticit of 542,165. With the exception of the Recreation fund, no remedial action is required for rhese excess expenditures or fund deficits. The Recreation operations were reorgaruzed in 1994 ard included the combining of the ice arena and John Rose Minnesota Oval into the Recreation Fwid. The City has prepared ard implemented a 5-year buciness plan to address the tiscal and operational matters related to ger�eral recreational demands. The Wireless furd was established [o account for the purchase of parkland. The site will also be used for a communications tower which is expected to provide rental ircome of about $50,(YJO. The rznts are scheduled eo pay for the land purcluse in appro�cimately 20 years. Nnrr - a h and Temoorary,Investrnents Cash swpluses are pooled and imested in certiticates of deposit ar� short-terr:i g�verrunent securities. Invesmient earnin�s are alloca[ed to furds on the basis of average cash balances or specitically in [he case of restricted yield funds. Irnesmients are stared at cost, wtuch approrzimates market, ard are rot identified wi[h specitic funds with exception of certain debt service funds which are subject to restricted yield. In those instarces, specific investrnen[s are secwed at below arbi[rage rates. Cash ard temporary irnesmients at year end consists of che tollowing: Repurchase ag�eements U.S. Government securities To[al Investments Bank Deposits Petty Cash and change funds Totai Cash and Deposits Total Cash and Investments Carrvine Value � 10,000,000 30 403.46� S 40 403 46� S 113,531 5.401 S 118 922 � 4Q522.384 Market Value $ 10,000,000 33 153.633 5 43 153.633 In accordance with applicable Minnesota statures, the Ciry maintains deposits at depository bankc authorized by the City Council. Minr�sota statutes reqtire that all deposits be protec[ed by insurance, swety bond, or collateral. The market value of the cotiateral pledged nmst equal 1]0� of the deposits not covered by inswance or bonds. Ail funds on deposit at rhe deposimries were fully inewed and/or collateralized by collateral held in safekeepin� by rhe City's agent in the City's name. The City may also invest idle funds as authoriud by Mirmesota Statutes, as follows: direct obligations or obligationc guaranteed by the Unites States or its agercies; shares of invesunent companies registered under the Federal Irnesmient Company Act of 1940 and receives the highest credit rating, is rated in one of the two highest rating categories by a statistical ratin�; agency, and alI of the investrnents ttave a final maturity of chirteen months or less; general obligations rated "A" or better, revenue obligations rated "AA" or beeter, general obligatioas of the Minnesota Hoacing Pinance Agency rated "A" or bet[er, bankers' acceptances of United States' banks eligible for pwchase by the Federal Reserve System; commercial paper issued by United States; corporations or their Canadian subsidianes, of the highest quality category by at least two nationally recognized ra[ing agencies, and maturing in 270 days or less; Guaranteed Investrnent Contracts guar-dnteed by a United Sta[es commercial bank, domestic branch of a toreign bank, or a United States insurance company, and 34