FY 2010 Report to Bondholders CASH MANAGEMENT Available cash from all funds is pooled and currently deposited in collateralized

money market accounts. A nominal amount is invested in the State Board of Administration investment pool. Interest earned is allocated to the different funds based on their equity share. In fiscal year 2010 combined unrestricted interest income for all Governmental, Expendable Trust, and Proprietary funds was $968,458, a 63 percent decrease from the previous year. The City has adopted a formal Investment Policy (Appendix B) which is currently under review. FY 2011 Report to Bondholders CASH MANAGEMENT Available cash from all funds is pooled and currently deposited in collateralized money market accounts. A nominal amount is invested in the State Board of Administration investment pool. Interest earned is allocated to the different funds based on their equity share. In fiscal year 2011 combined unrestricted interest income for all Governmental, Expendable Trust, and Proprietary funds was $1,960,264, a 102 percent increase from the previous year primarily from the loan to the Maritime Park related transactions, which interest is used to pay debt service on related bonds. The City has adopted a formal Investment Policy (Appendix B) which is currently under review. FY 2012 Report to Bondholders
CASH MANAGEMENT Available cash from all funds is pooled and currently deposited in collateralized money market accounts. A nominal amount is invested in the State Board of Administration investment pool. interest earned is allocated to the different funds based on their equity share. In fiscal year 2012 combined unrestricted interest income for all Governmental, Expendable Trust, and Proprietary funds as $1,960,621 which interest is used to pay debt service on related bonds. The City has adopted a formal Investment Policy (Appendix B) which is currently under review.