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CITY OF ORONO
<br />CITY OF ORONO
<br />NOTES To FICANCIAL STATEMENTS (Continued)
<br />December 31, 1989
<br />Note J. CASH AND INVESTMENTS
<br />Cash balances of all City funds are combined (pooled) and Invented t�i
<br />the extent available In Federal Government Securities and varlous
<br />other Investments authorized by Minnesota State Statutes. Each fund's
<br />portion, of this pool is shown on the financial statements as "cash and
<br />Investments." Earnings froo such investments are allocated to the
<br />individual funds on the basis of the applicable cash balances
<br />available by each of the funds ouring the year, and in accordance with
<br />State Statutes.
<br />For the purposes of identifying the risk of Investing public funds,
<br />the balances are categorized as follows:
<br />A. Deposits
<br />Deposits consist of checking accounts, savings accounts, and cer-
<br />tificates of deposit held In a bank or savings Institution.
<br />At year-end, the carrying amount of the City's deposits was $98.589,
<br />while the balance on the bank records was $136,214. As of
<br />VDecember 31, 1988, all deposits of the City were insured or
<br />collateralized by securities held by the City or by its agent in the
<br />City's name.
<br />B. Investments
<br />Minnesota State Sritules authorize the City to Invest In obligation,
<br />of the U.S. Treasury, agencies, and instrumentalities, shares of
<br />Investment companies whose only investments are In the aforementioned
<br />securities, obligations of the State of Minnesota or its municipall-
<br />tles, bankers' acceptances, future contracts, repurchase and reverse
<br />repurchase agreements, and commercial paper of the highest quality
<br />with a maturity of no longer than 270 days. Any material purchase
<br />discounts or premiums are amortized over the term of the investment.
<br />Interest earnings are accrued at the balance sheet date and recognl-red
<br />as revenue when earned.
<br />The City's Investments are categorized n tie follov'ng page to give
<br />an Indication of the level of risk assumed at year-end. Category I
<br />Includes Investments that are Insured or registered or f..r which the
<br />securities are held by the ('fly or Its agent In the t'Itv's nave.
<br />Category 2 Includes uninsured and unregistered Investments for which
<br />the securities are held by the counterparty's trust department or
<br />agent In the Cltv's name. Cat egnry 3 Includes .,nln+cared and
<br />ur.teglstereJ in.,.toents for vhirh the securitie♦ are Imo id by tits•
<br />cotnterparty or by Its trust department or agent but not In the Cit v'a
<br />name.
<br />NOTES TO FINANCIAL STATEMENTS (Continued)
<br />December 31, 1988
<br />Note J. CASH AND INVESTMENTS (continued)
<br />Ctedlt Risk Cotefory Carrying Market
<br />1 2 3 Value Value
<br />wed
<br />Certificates
<br />Of Deposit S E10,OOD S - S - S SOU.00D $ 7".MO
<br />U.S, m4"Vmm*
<br />Securities 2,951.373 - - 2.951.373 3,068,727
<br />camirew Taper 1,762,651 - 1,762,651 1,776,297
<br />SSS, 14,Q24 L_7_ t_ILL4,W4 pj623,024
<br />Amests held by
<br />Deferred Captor
<br />eatim rim
<br />Administrators
<br />2$ 18 960 S 211,9M
<br />C. Cash on Hand
<br />Cash in the possession of the City, consisting of petty cash and
<br />change funds, totaled $310 at year-end.
<br />Note 4. PROPERTY, PLANT, AND "WPHINT
<br />A. Changes In Cenersl fixed Assets
<br />Balance Balance
<br />Beginning End
<br />of Year Additions Deletions of Year
<br />Land and land
<br />improvements $ 415.651 $ 16.997 S - 3 432.646
<br />Buildings and bulldiog
<br />improvements 145,958 - - 145.956
<br />Equipment 667,902 97,187 31,771 7!2.318
<br />Sf.229,511 11} 4,164 S 32,771 $1.310,924
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