07-26-1999 Council Packet - Laserfiche WebLink

Home Browse Search

To the City Council and Citizens of the City of Orono May 14, 1999 The 1991 Public Facilities Capital Project Fund received several advances from the Building Capital Outlay Fund. As an offset to these transfers, proceeds from land sold to reduce the project costs were deposited in the Building Capital Outlay Fund. The City Council has determined that investment earnings of the Building Capital Outlay Fund will be used to partially pay the debt service of the 1991 Public Facilities Revenue Bonds and sets the amount to be transferred out annually through the budget. At the end of 1998, the Building Capital Outlay Fund loaned $341,000 to the 1998 Sewer Construction Fund, which will be repaid when bonds are sold in 1999; and loaned $475,000 to the Water Operating Fund for the Navarre water plant rehabilitation project. The fund balance as of December 31, 1998 was $2,417,099. Drug and Felony Forfeiture Fund The Drug and Felony Forfeiture Fund was established to account for proceeds received as a result of cash and property seized relating to drug and felony type criminal activity, donations received specifically for the police department, otiKj revenues as may be appropriate or authorized by the City Council, and all authorized related expenditures. The fund balance as of December 31, 1998 was $13,611. DEBT Service Funds Debt Service Funds are used to account for the current year payment of matured principal and interest on long-term general bonded debt. Sources available for payment of the debt serv ice are primarily provided by special assessments and property taxes. The combined fund balance for all Debt Service Funds as of December 31,1998 was $4,473,564, an increase of $2,605,960 or 139.5%, from 1997. The increase to fund balance was primarily a result of the creation of the 1998 HRA Refunding Bonds Fimd, with bond proceeds and investment income, which resulted in a fund balance at December 31, 1998 of $2,414,527. C apital Project Funds Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities. Minnesota State -aid Streets C onstruction Fund The Minnesota State-Aid Streets Construction Fund is used to account for state-aid construction revenue and the use of that revenue for improvements to thoroughfare roads and bridges within the City. The fund balance increased from a deficit of $8,962 at December 31, 1997 to $51,876 as of December 31, 1998. Permanent Improvement R evolving Fund The Permanent Improvement Revolving Fund provides financing for construction costs prior to obtaining permanent financing or levying of assessments against benefitted properties for those projects funded directly. Within this fund there is also an accoimt for major road and bridge repairs. -9-