Audit for Fiscal Year Ending June 30, 2017

CITY OF SPENCER NOTES TO FINANCIAL STATEMENTS - Continued JUNE 30, 2017

2. CASH AND POOLED INVESTMENTS - Continued

The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured depository institutions approved by the City Council; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; certain registered open-end management investment companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district.

The City's cash and investments consisted of the following at June 30, 2017:

Cash on hand ...................................................................................................... $ Demand deposits ................................................................................................. Money market account ........................................................................................ Total cash and investments Less Agency Funds .............................................................................................

5,300

16,891,754 13,000,370 29,897,424

244,678

$29.652746

City's Cash and Investments

Interest rate risk - The City's investment policy limits the investment of operating funds (funds expected to be expended in the current budget year or within 15 months of receipt) in instruments that mature within 397 days. Funds not identified as operating funds may be invested in investments with maturities longer than 397 days but the maturities shall be consistent with the needs and use of the City.

3. BONDS AND NOTES PAYABLE

Annual debt service requirements to maturity for the City's bonds and notes payable are as follows:

Governmental Activities

General Obligation

Total

Year Ending

Bonds/Notes

Other Long-Term Debt

Governmental Activities

June 30,

Principal

Interest

Principal

Interest

Principal

Interest

$ 496,000

$ 28,976

$ 28,976

$

$ 557,000

61,000 61,000 61,000 61,000 61,000 108,000

2018 2019 2020 2021 2022

490,000 167,000 169,000 170,000 120293

19,176 10,526

19,176 10,526

551,000 228,000 230,000 231,000 228293

8,036 5,306 3,391

8,036 5,306 3,391

2023-2027

$ 1:1300Q

Total

~ Z51:11

~:1!6:12 293

~ 75!~1J:1

~2!Q25,293

~

25