06-09-1997 Council Packet - Laserfiche WebLink

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r r' F ' k t To the City Council and Citizens of the City of Orono April 29. 1997 The summaiy ’ of operations for 1996 and 1995 is as follows: December 31 Operatine expenses Operating income The operating income for 1996 does not include nonoperating revenue of $12,573, and nonoperating expenses of $3,252. The operating income for 1995 also does not include nonoperating revenue of $8,150. Retained earnings as of December 31, 1996 were $326,653, which represents an increase of .$57,809 from 1995, net of the effects of depreciation on contributed assets and nonoperating items. D ebt A dministration At December 31, 1996, the City had four bond issues outstanding. The City ’s legal debt limitation, based on state statutes, equals 2% of market value. All City bonded debt at December 31, 1996 is special assessment or revenue funded and therefore is excluded from the limit. The City bond rating from Moody’s Investors Service is Aal for all bond issues except the 1991 Public Facilities Revenue Bond which has a bond rating from Moody’s Investors Service of Aa. C ash Management Cash temporarily idle during the year was invested in demand deposits, money market funds, obligations of federal agencies, the U.S. Treasury, obligations of local governmental units, the State of Minnesota, repurchase agreements, bankers’ acceptances, and commercial paper. The City ’s investment objective as stated in the investment policy is to first ensure the preservation of capital in the overall portfolio, second to maximize yield while matching maturity dates with expenditure needs, and third to diversify the investment portfolio by financial institution, government agency, or by the corporation in the case of commercial paper to reduce the exposure to risk of loss. At December 31, 1996, the City had an investment portfolio of $8,341,492, at cost (exclusive of the assets held by deferred compensation trustees) diversified as shown in the following table: -12- 1996 1995 im' $192,353 $173,934 If 144.658 142,170 m $47,695 $31,764 ») • ( Type of Investment Cost Percent Investment Pool - Money Market Funds $ 549,866 6.59% Certificates of Deposit 452,218 5.42 U.S. Federal Agencies 4,216.337 50.55 U.S. Treasury Obligations ■' 737 4.78 City of Goodview, Minnesota .jo.OOO 0.60 State of Minnesota 235,000 2.82 r - Commercial Paper 2,439,134 29.24 - $ 8,341,492 100.00%•