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To the City Council and Citizens of the City of Orono <br />May 17. 1995 <br />Golf C oihsf: Operating Fltnd <br />The Golf Course Operating Fund accounts for the q>eration of the City-owned and operated gidf <br />course sales and expenses necessary to provide this service. <br />The summary of operations for 1994 and 1993 is as follows: <br />December 31 <br />Operating expenses <br />Operating income <br />1994 1993 <br />$178.283 $142.370 <br />130.461 123.616 <br />$47.822 $18.754 <br />The operating income for 1994 does not include nonoperating revenue of $5,582 or nonoperating <br />expense of $8,774. The operating income for 1993 also does not include nonoperating revenue <br />of $4,581. Retained earnings as of December 31. 1994 were $215,257. which represents an <br />increase of $44,884 from 1993. net of the effects of depreciation on contributed assets and <br />nonoperating items. <br />Debt A dministration <br />At December 31. 1994. the City had six bond issues outstanding. The City's legal debt limitation, based <br />on state statutes, equals 2% of market value. All City bonded debt at December 31. 1994 is special <br />assessment or revenue funded and therefore is excluded from the limit. The City bond rating from <br />Moixly ’s Investors Service is Aal for all bimd issues except the 1991 Public Facilities Revenue Bond <br />which has a bond rating from Moody's Investors Ser\ ice of Aa. <br />I <br />C ash Manageme .nt <br />Cash temporarily idle during the year was invested in demand deposits, money market funds. obligati«'ns <br />of federal agencies, the U.S. Treasury, obligations of IcK'al governmental units, the State of Minnesota, <br />repurchase agreements, bankers' acceptances, and commercial paper. The City's investment t>bjeciive <br />as stated in the investment policy is to first ensure the preservation of capital in the overall portfolio, <br />second to maximize yield while matching maturity dates with expenditure needs, and third to diversify <br />the investment portfolio by financial institution, government agency, or by the corporation in the case of <br />commercial paper to reduce the exposure to risk of loss. At December 31. 1994, the City had an <br />investment portfolio of $7,779,408. at cost, (exclusive of the assets held by deferred compensation <br />trustees), diversified as shown in the following table: <br />-14-