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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2009 <br />Another element of that reconciliation states that "the issuance of long -term debt (e.g., bonds, <br />leases) provides current financial resources to governmental funds, while the repayment of <br />principal of the long -term debt consumes the current financial resources of governmental funds" <br />Neither transaction, however, has any effect on net assets. The details of this ($3,857,332) <br />difference is as follows: <br />Debt issued or incurred: <br />Issuance of general obligation bonds <br />($3,965,000) <br />Issuance of current refunding bonds <br />($2,855,000) <br />Less premium <br />(140,492) <br />Principal repayments <br />3,180,000 <br />Other post employment benefits <br />(76,840) <br />Net adjustment to decrease net changes in fund <br />balances - total governmental funds to arrive at <br />changes in net assets of governmental activities. <br />($3,857,332) <br />Another element of that reconciliation states that "some expenses reported in the statement of <br />activities do not require the use of current financial resources and, therefore, are not reported as <br />expenditures in governmental funds." The details of this ($10,555) difference is as follows: <br />Amortization of issuance costs, premiums, discounts $34,107 <br />Accrued interest (44,662) <br />Net adjustment to decrease net changes in fund <br />balances - total governmental funds to arrive at <br />changes in net assets of governmental activities. ($10,555) <br />Note 2 DEPOSITS AND INVESTMENTS <br />A. DEPOSITS <br />In accordance with Minnesota Statutes, the City maintains deposits at those depository banks <br />authorized by the City Council, 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. <br />The market value of collateral pledged must equal 110% of the deposits not covered by insurance or <br />bonds. <br />Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City <br />Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral <br />includes the following: <br />a) United States government treasury bills, treasury note and treasury bonds; <br />50 <br />