1994 CAFR - Laserfiche WebLink

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4( ( 11)1 1\ 1 l:l 11. \I)) I „1 11)(;1.141K1 l'(1)\ 1 I;'ll)1.' (Continued) The City also maintains budgetary controls of which the objective is to ensure compliance with legal provisions embodied in the annual appropriated budget as approved by the City Council. During the year, the Council may increase the budget, but only to the extent that additional revenues have been realized. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by fund for the General Fund and certain Special Revenue Funds. The City Council also adopts a five -year Capital Improvement Program as a financial planning document. CASH MANAGEMENT The City of Ramsey subscribes to the "pooled cash” concept of investing, which means that all funds with cash balances (except the Escrow Fund) participate in an investment pool. This permits some funds to be temporarily overdrawn and others to show cash balances, when in fact the City has a cash balance. This pooled cash concept provides for investing greater amounts of money at more favorable rates. During 1994, the City earned $798,948 from investments in obligations issued by the United States and its agencies, bank certificates of deposits, and commercial paper. This is compared to $614,978 in 1993 and $615,696 in 1992. IWIL MANAZEMIENT The City's workers compensation and employer's liability insurance is provided through the League of Minnesota's Insurance Trust and provides statutory coverage. The City also maintains a Self - Insurance Trust Fund which allows the City to take advantage of higher deductibles and lower overall rates. PIF,1 17 AI1DMItNITST A71_J ON Net bonded debt per capita and the percentage of net debt to the tax capacity and market value are useful indicators of the City's debt position to municipal management, citizens, and investors in city bonds. Debt statistics are listed as follows: Net Bonded Debt per Capita $ 213.51 Ratio of Net Bonded Debt to Tax Capacity 47.35% Ratio of Net Bonded Debt to Market Value 0.72% The following is a summary of bonded debt for fiscal year 1994: Gross Debt Outstanding, January 1, 1994 $ 7,940,000 Add Bonds Issued - 1994 0 Deduct Bonds Redeemed - 1994 450,000 Gross Debt Outstanding, December 31, 1994 $ 7,490,000 Less Amounts Available in Debt Service Funds, December 31, 1994 3,904,798 Net Bonded Debt, December 31, 1994 $ 3,585,202 The City has a current Moody's Investors Service bond rating of Al, which increased during 1993. This above average rating has had a positive effect on the sale of the City's bonds by broadening the City's market and lowering the interest rates on borrowing. v