Comprehensive Annual Financial Report 12/31/1999

Home Search

GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those assets used for general governmental functions only. This does not include enterprise funds. Depreciation is not recorded on the general fixed assets. GENERAL LONG -TERM DEBT ACCOUNT GROUP This group reports the current assets available in the Debt Service Funds and recognizes the - amounts to be provided through future tax levies, assessments and tax increments. Imm CASH MANAGEMENT Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations of the U.S. Treasury. The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either insured by Federal depository insurance or were collateralized as required by State Statute. The City Council reviews the investment policy annually and last amended it in 1998. DEBT ADMINISTRATION At year -end, the City had a number of debt issues outstanding. These issues included $6,904,570 of general obligation bonds and equipment certificates, $14,045,000 of general obligation improvement bonds with special assessments pledged and $4,550,000 of revenue bonds. The City also had contracts for deed in the amount of $1,459,352. During 1999, the City issued $307,570 of equipment certificates internally, the proceeds of which were used to purchase equipment. Also, during the year the City's Economic Development Authority issued $980,000 in public project revenue refunding bonds which refunded the public project revenue bonds series 1990A. The City also issued $1,725,000 in general obligation improvement refunding bonds and $680,000 in general obligation water utility revenue refunding bonds to advance refund the general obligation improvement bonds series 1992A and the general obligation water utility revenue bonds series 1992B, respectively. RISK MANAGEMENT The City's general property and liability coverage is provided through the League of Minnesota Cities Trust (LMCIT) and worker's compensation is provided through State Fund Mutual. At the beginning of the insurance year, the city deposits with State Fund a premium determined by calculating estimated payroll and applying experience modification ratios. An audit is performed at the end of the insurance year, which may produce a refund or an adjustment due. State Funds reserves and rates are reviewed annually by an actuary to assure that the program remains financially strong.