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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2018 <br /> <br /> <br /> <br /> <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 position.” The details of this $192,169 <br />difference is as follows: <br /> <br />Debt issued or incurred: <br />Issuance of general obligation bonds ($2,610,000) <br />Premium on issued bonds (92,831) <br />Principal repayments 2,895,000 <br />Net adjustment to increase net changes in fund <br />balances - total governmental funds to arrive at <br />changes in net position of governmental activities. $192,169 <br /> <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 $92,173 difference is as follows: <br /> <br />Accrued interest $700 <br />Amortization of bond premium 91,473 <br />Net adjustment to increase net changes in fund <br />balances - total governmental funds to arrive at <br />changes in net position of governmental activities.$92,173 <br /> <br /> <br />Note 2 DEPOSITS AND INVESTMENTS <br /> <br />A. DEPOSITS <br /> <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 /> <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 /> <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 /> <br />a) United States government treasury bills, treasury note and treasury bonds; <br /> <br />b) Issues of United States government agencies and instrumentalities as quoted by a recognized <br />industry quotation service available to the government entity; <br /> <br />53