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<br /> City of San Marcos. Texas }Z-,£(, <br /> Exhibit 6 <br /> Notes to General Purpose Financial Statements (continued) <br /> September 30, 1992 <br /> 13. Expenditures Over Appropriations (continued) <br /> In the Hotel Occupancy Fund. expenditures for the year exceeded appropriations. <br /> However. within this fund, revenues also exceeded their budgeted level, and the over- <br /> expenditure resulted from distribution of the excess revenues. <br /> 14. Landfill Reserve <br /> In 1992 the City implemented a monthly charge to solid waste collection customers. All <br /> revenues received from this charge have been reserved in the General Fund in accordance <br /> with the authorizing ordinance. This reserve has been established in anticipation of costs <br /> to close and monitor the City's landfill in the future. <br /> 15. Deferred Compensation Plan <br /> The City offers its employees a Deferred Compensation Plan creatéd in accordance with <br /> Internal Revenue Code Section 457. The plan, available to all City employees, permits <br /> them to defer a portion of their salary until future years. Participation in the plan is <br /> optional. The deferred compensation is not available to employees until termination, <br /> retirement, death, or unforeseeable emergency. All amounts of compensation deferred <br /> under the plan, all property rights purchased with those amounts, and all income <br /> attributable to those amounts, property or rights are (until paid or made available to the <br /> employee or other beneficiary) solely the property and rights of the City subject only to <br /> the claims of the City's creditors. Participants' rights under the plan are equal to those of <br /> general creditors of the City in an amount equal to the fair market value of the deferred <br /> account for each participant. <br /> It is the opinion of the City's management that the City has no liability for losses under <br /> the plan but does have the duty of due care that would be required of an ordinary prudent <br /> investor. The City believes that it is unlikely that it will use the assets to satisfy the <br /> claims of general creditors in the future. <br /> Investments are managed by the plan's trustee under one of seven investment options, or <br /> a combination thereof. The choice of the investment optíon(s) is made by the <br /> participants. Assets are "managed and held by the trustee and are reported as an agency <br /> I . fund of the City. <br /> -39- <br />