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CITY OF ORONO, MINNESOTA
<br />MANAGEMENT’S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2017
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<br />(17)
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<br />General Fund
<br />The General Fund is the main operating fund of the City. Its primary revenue source in 2017 was
<br />property taxes at 49.60% of the total revenue, followed by user fees at 37.55%. The total fund balance
<br />increased by $21,238 during the current fiscal year. This increase is the result of higher than budgeted
<br />licenses and permit revenue collected during the year. Expenditures were $93,803 under budget for the
<br />year. However, revenues were also over budget by $460,840. Additional user fees revenue resulted in
<br />higher than normal expenses related to those fees during the year. The unassigned fund balance of
<br />$4,433,559 at the end of 2017 represents 58.96% of total General Fund expenditures for the year.
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<br />Proprietary Funds
<br />The City’s enterprise funds had a combined net position balance of $22,454,124 at December 31,
<br />2017. The financial activities of these funds have been summarized in previous charts within this
<br />discussion.
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<br />Capital Assets
<br />The City’s investment in capital assets (net of accumulated depreciation) for its governmental and
<br />business-type activities as of December 31, 2017 is as follows:
<br />
<br />2017 2016 2017 2016 2017 2016
<br />Land 7,337,435$ 7,337,435$ 79,706$ 79,706$ 7,417,141$ 7,417,141$
<br />Construction in Progress 3,255,918 1,649,110 607,731 1,869,944 3,863,649 3,519,054
<br />Buildings and Building Improvements 9,160,345 9,160,345 1,605,211 770,330 10,765,556 9,930,675
<br />Improvements Other than Buildings 2,373,988 2,373,988 13,511 13,511 2,387,499 2,387,499
<br />Streets and Infrastructure 7,164,359 7,164,359 - - 7,164,359 7,164,359
<br />Distribution/Collection Systems - - 24,849,760 23,489,131 24,849,760 23,489,131
<br />Equipment and Furniture 4,256,047 3,614,633 924,164 918,404 5,180,211 4,533,037
<br />Total Capital Assets 33,548,092 31,299,870 28,080,083 27,141,026 61,628,175 58,440,896
<br />Less: Accumulated Depreciation (7,266,859) (6,419,513) (10,077,679) (9,575,002) (17,344,538) (15,994,515)
<br />Total Capital Assets, Net 26,281,233$ 24,880,357$ 18,002,404$ 17,566,024$ 44,283,637$ 42,446,381$
<br />Governmental Activities Business-Type Activities Total
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<br />The City has completed the development of a Capital Improvement Plan (CIP) that was formally
<br />adopted by the City Council. This plan will be reviewed annually as part of the budget process. The
<br />approved purchase of an asset management program will improve the City’s ability to track useful and
<br />identify maintenance concerns involving the City’s infrastructure and assets.
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<br />Additional details of capital asset activity for the year can be found in Note 4 of the notes to basic
<br />financial statements.
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