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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 />Long-Term Liabilities
<br />The debt service funds account for the accumulation of resources to finance all of the City’s general
<br />obligation bonds. The revenue sources for these funds include annual tax levies, special assessments,
<br />and transfers from other funds. At year-end, the total fund balance of these funds was $2,105,118. The
<br />following table summarized the City’s long-term liabilities.
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<br />2017 2016 2017 2016 2017 2016
<br />General Obligation Bonds 7,660,000$ 11,210,000$ 1,045,000$ 1,120,000$ 8,705,000$ 12,330,000$
<br />Compensated Absences 497,359 504,016 38,001 36,268 535,360 540,284
<br />Capital Lease Payable - 6,024 - - - 6,024
<br />Bond Premium (Discount), Net 195,751 221,701 17,071 18,557 212,822 240,258
<br />Total Outstanding Debt 8,353,110$ 11,941,741$ 1,100,072$ 1,174,825$ 9,453,182$ 13,116,566$
<br />Governmental Activities Business-Type Activities Total
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<br />Additional details of long-term debt activity for the year can be found in Note 5 of the notes to basic
<br />financial statements.
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<br />General Fund Budgetary Highlights
<br />Detail of the General Fund original budget, final budget and actual revenues and expenditures can be
<br />found on page 55 of this report. While a few departments required budget adjustments, the City
<br />compensated for these increases with reductions in other departments The Departments that needed
<br />budget adjustments were Law & Legal Services, Central Services, Parks, Golf and Special Services.
<br />Law and Legal Services was over budget due to the need to use a conflict attorney for prosecution. The
<br />Central Services budget was over budget due to higher than anticipated software licensing fees. The
<br />Parks budget was slightly over budget increase focus on Park beatification and maintenance as
<br />directed by Council. The Golf Course continued a trend of increasing activity and as a result of the
<br />increased public usage expenditures increased. Special Services is also related to building activity and
<br />as a result was over budget. Both the golf course and special services departments have revenue lines
<br />associated with the services that they provide. These revenues were also well over budget. The overall
<br />General Fund net budget amount did not change and ended the year with a favorable budget variance
<br />of $597,861 before other financing sources and uses.
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<br />REQUESTS FOR INFORMATION
<br />Questions concerning any of the information provided in this report or requests for additional
<br />information should be addressed by writing to the City of Orono, 2750 Kelley Parkway, P.O. Box 66,
<br />Crystal Bay, Minnesota 55323 or by calling (952) 249-4600.
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