1990 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1990 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) I. Proper y Taxes (continued) Cities in Minnesota operate under a levy limitation law which allows for an increase in the tax levy each year equal to the Implicit Price Deflator increase, further indexed by the percentage increase in households or population, whichever is greater. Levies for bonded indebtedness are not limited by this law. J. Total Columns on Combined Statements Total columns on the combined statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position or results of operations in conformity with generally accepted accounting principles. Interfunci eliminations have not been made in the aggregation of this data. K. ,Statement of Cash Flows The Government Accounting Standards Board adopted a new pronouncement which replaces the Statement of Changes in Financial Position with the Statement of Cash Flows for Proprietary Fund for tax years beginning after December 15, 1989. Comparative-.data presented has been restated to conform with the current year presentation. For purposes of the Statement of Cash Flows, the City considers all highly liquid debt instruments with a maturity of three months or less to be cash equivalents. The Proprietary Funds' cash and cash equivalent balance is a prorated share of the City-wide cash and investment pool that are considered .cash equivalents. Note 2. CASH AND INVESTMENTS The City maintains a cash and investment pool that is available for use`~by all funds, except the Escrow Expendable Trust Fund. Each fund type's portion of this pool is displayed on the combined balance sheet as "cash and temporary cash investments" or as "advance from City's general account." An indication of the level of risk assumed by the City at year-end is categorized as follows for the City's cash and temporary cash investments: A. DegQsits In accordance with applicable Minnesota Statutes, the City maintains deposits at depository banks authorized by the City Council. Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral.. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage-backed collateral). -18-