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City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2024 <br /> <br />Note 2: Stewardship, Compliance and Accountability (Continued) <br />B. Deficit Fund Equity <br /> <br />The following fund had a fund equity deficit at December 31, 2024: <br /> The fund deficits are expected to be eliminated with future fund revenues or transfers from other funds. <br />C. Excess of Expenditures Over Appropriations <br /> The excess of expenditures over appropriation was funded by revenues in excess of budget. <br />Note 3: Detailed Notes on All Funds <br />A. Deposits and Investments <br /> <br />Deposits <br />Custodial credit risk for deposits and investments is the risk that in the event of <br />investments may not be returned or the City will not be able to recover collateral securities in the possession of an outside <br />party. In accordance with Minnesota statutes and as authorized by the City Council, the City maintains deposits at <br />depository banks, all of which are members of the Federal Reserve System. <br />Minnesota statutes require that all City deposits be protected by insurance, surety bond or collateral. The market value of <br />collateral pledged must equal 110 percent of the deposits not covered by insurance or bonds, with the exception of <br />irrevocable standby letters of credit issued by Federal Home Loan Banks as this type of collateral only requires collateral <br />pledged equal to 100 percent of the deposits not covered by insurance or bonds. <br /> <br />62 89