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As with the Water Fund, rates were adjusted in April, with system depreciation built into the rate for future <br />system replacement. Additional users also contributed to increased revenues for the year. Personnel, contractual <br />service costs, and Metropolitan Council Environmental Services charges for sewage treatment (due to lower <br />ANEW <br />volume) were the primary reasons for the decrease in expenses from the previous year. <br />NNW <br />AGENCY FUNDS <br />The Contractors Deposits Fund accounts for the pass - through costs of developer financed projects within the <br />City. <br />The Pending Assessments Fund accounts for the receipt of assessment prepayments prior to certification. This <br />fund is closed annually at certification time. The balance in this fund is the result of assessments being collected <br />that will not be certified to Anoka County until 2002. <br />The Investment Fund accounts for the pooling of all the City's money that is invested throughout the year. <br />Interest on investments is recorded in this fund before allocating to all funds. Interest earned in 2001 was <br />$611,806 compared to $1,000,915 in 2000. The decrease in interest income resulted from changing market <br />conditions in 2001. Interest rates dropped substantially in response to a weakened economy leading to reduced <br />returns on investment. <br />GENERAL FIXED ASSETS ACCOUNT GROUP <br />General fixed assets are those assets used for general governmental functions only. This does not include <br />enterprise funds. Depreciation is not recorded on the general fixed assets. <br />GENERAL LONG -TERM DEBT ACCOUNT GROUP <br />This group reports the current assets available in the Debt Service Funds and recognizes the amounts to be <br />._ provided through future tax levies, assessments and tax increments. <br />WIMP <br />CASH MANAGEMENT <br />The City's policy is to invest all available moneys at competitive rates in accordance with Minnesota law. <br />Investments are made by minimizing credit and market risks while maintaining a competitive yield. Funds are <br />invested in certificates of deposit, commercial paper and U.S. government agencies. Cash is pooled in one <br />account to provide maximum return. <br />Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations <br />of the U.S. Treasury. The City's investment policy's primary objective is safety of principal. Therefore, all <br />deposits were either insured by Federal depository insurance or were collateralized as required by State Statute. <br />The City Council reviews the investment policy annually and last amended it in 1998. <br />DEBT ADMINISTRATION <br />At year -end, the City had a number of debt issues outstanding. These issues included $6,686,430 of general <br />obligation bonds and equipment certificates, $10,195,000 of general obligation improvement bonds with special <br />assessments pledged and $3,465,000 of revenue bonds. The City also had contracts for deed in the amount of <br />$959,352. During 2001, the City issued $332,030 of equipment certificates internally, the proceeds of which <br />were used to purchase equipment. <br />9 <br />