07-26-1999 Council Packet - Laserfiche WebLink

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To the City Council and Citizens of the City of Orono May 14, 1999 construction, or maintenance. The fund balance as of December 31,1998 was $694,030, an increase of $142,642 from 1997. 1997 Sewer Construction Fund The 1997 Sewer Construction Fund was created to account for the bond proceeds from the 1997 Improvement Bonds and the costs of construction of the 1997 North Long Lake and Long Lake Country Club sanitary sewer improvements. Bay Ridge/Hartwood and Brackett’s Point sanitary sewer improvements, and the Orono Ice Arena sanitary sewer and water improvements projects. The fund balance as of December 31,1998 was a deficit of $43,102, a decrease of $224,987 from December 31,1997. The deficit fund balance will be eliminated through transfers from other funds when the project is completed. 1998 Sewer Construction Fund The 1998 Sewer Construction Fund was created to account for the costs of construction of the 1998 Edgewood Hills sanitary sewer improvements, the Heritage/Shoreline sanitary sewer improvements, and the Orono Orchards sanitary sewer imptovements projects. Temporary funding of the costs incurred has been from a $341,000 loan from the Building Capital Outlay Fund, and from special assessments levied in 1998 for the Heritage/Shoreline sanitary sewer improvements project. Bonds will be sold in 1999 and the proceeds from the 1999 Improvement Bonds will be used to complete the projects and repay the loan. The deficit fund balance at December 31, 1998 was $286,504. Enterprise Funds Enterprise Funds are used to account for the operations of self-supporting activities which render services or goods to the public. The accounting records are maintained on the accrual basis of accounting. Water Operating Fund The Water Operating Fund accounts for the provision of water services to the residents of the City who have water service available. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, billing, and collection. The summary of operations for 1998 and 1997 is as follows: December 31 1998 1997 Operating revenue Operating expenses $ 261,436 $ 220,622 222J42 243^89 Operating income (loss) ^_38j6W_ $ (22,667) The 1998 operating revenue increased $40,814 from 1997. This was due to an increase in metered water sales of $42,172. The operating expenses decreased $20,547 due mainly to a net decrease in depreciation of $20,101. The decrease in depreciation was a result of extending the useful life of the water towers, water mains, and pumphouses from 50 years to 75 years in order to more accurately reflect the useful life of those assets. -10- I I I I I I I I I I I I I I I I I I I