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citizens of the City of Orono May 18. 1990 <br />Operating loss for 1989 does not include nonoperating revenue of $87,965 <br />or nonoperating expenses of $17,877. Operating loss for 1988 does not <br />Include nonoperating revenue of $57,735. Retained earnings as of <br />December 31, 1989, were $1,112,801, which represents an Increase of <br />$169,063 from 1988, net of the effects of depreciation on contributed <br />assets and of nonoperating items. <br />Golf Course Operating Fund <br />The Golf Course Operating Fund accounts for the operation of the City- <br />owned and operated golf course sales and expenses necessary to provide <br />this service. <br />The summary of operations for 1989 and 1988 is as follows: <br />Gross profit and operating revenue <br />Operating expenses <br />Operating Income (Loss) <br />is follows: <br />1989 1988 <br />$115,211 $ 88,867 <br />98.302 103,526 <br />$ 16.909 $(14,659) <br />Operating Income for 1989 does not Include nonoperating revenue of $19. <br />Operating loss for 1988 does not Include nonoperating expenses of $432. <br />Retained earnings as of December 31, 1989, were $49,126, which represents <br />an Increase of $17,182 from 1988, net of the effects of depreciation on <br />contributed assets and of nonoperating items. <br />DEBT ADMINISTRATION <br />At December 31, 1989, the City had five bond issues outstanding. The City <br />issued $2,300,000 of General Obligation Water and Sewer Revenue Bonds on <br />September 16, 1989, bringing the total outstanding balance to $4,000,000 at <br />December 31, 1989, all of which are General Obligation Bonds. The City improved <br />its bond rating from Moody's Investors Service from Aa to Aal with the issuance <br />of the 1989 bond issue. The City's legal debt limitation, based on State <br />Statutes, equals 2% of market value. All City bonded debt at December 31, 1989, <br />is special assessment or revenue funded and therefore is excluded from the <br />limit. <br />CASH MANAGEMENT <br />Cash temporarily idle during the year was invested in demand deposits, cer­ <br />tificates of deposit, obligations of federal agencies, the U.S. Treasury, <br />repurchase agreements, bankers' acceptances, and commercial paper. The City's <br />investment objective as stated in the investment policy is to first ensure the <br />preservation of capital in the overall portfolio, second to maximize yield while <br />-9-