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CITY OF ORONO, MINNESOTA
<br />Notes to Financial Statements (continued)
<br />December 31, 1998
<br />NOTE 3 - PROPERTY, PLANT, AND EQUIPMENT (CONTINUED)
<br />B. Proprietar>’ Fund Type Property, Plant, and Equipment
<br />Golf
<br />Water Sewer Course
<br />Operating Operating Operating Total
<br />Land and improvements $ 57,132 $ 16,654 $ 243,585 $ 317,371
<br />Buildings and improvements 792,888 31,014 62,257 886,159
<br />Equipment 77,843 126,125 119,656 323,624
<br />Distribution/collection system 2,083,535 8.844,035 -10,927,570
<br />Work in progress 242,772 30,021 1,000 273,793
<br />3,254,170 9,047,849 426,498 12,728,517
<br />Less accumulated depreciation 1,073.341 3,125.196 98,546 4,297,083
<br />$ 2,180,829$ 5,922,653 $ 327.952 $ 8,431,434
<br />NOTE 4 - DEFERRED CREDITS AND REVENUE
<br />A. Contract for Deed
<br />The City sold a section of land to a homeowners’ association on a contract for deed in February 1984. The
<br />sales price of $ 100,000 will be received in equal quarterly payments over a 15-year period, without interest.
<br />At December 31, 1998, the remaining balance of $3,083 on the contract for deed is recorded as deferred
<br />revenue in the General Fund until collected and available to finance current operations.
<br />B. 1985 Special Assessments
<br />The City adopted a special assessment roll in 1985 which included $46,175 relating to improvements on
<br />City-owned property. The General Fund will pay these assessments over 15 years in annual installments
<br />with 9.2% interest. The remaining assessment principal balance of $6,135 at December 31, 1998 has been
<br />recorded as due to/firom other funds. The related revenue and charges have been deferred in the 1995
<br />Reftmding Bonds Debt Service and General Funds, respectively.
<br />C. Sewer Operating Enterprise Fund - Due From Other Governmental Units/Deferred Credits
<br />This amount represents the credits resulting from the transfer of the City ’s sewer treatment facilities to the
<br />Metropolitan Council Environmental Services (MCES). The remaining balance due fromMCES is $121,355
<br />for the facilities and is included in due from other governmental units as of December 31,1998. The total
<br />price for each portion of the facilities will be received over 30 years with interest at 4% per annum by credits
<br />against the annual sewage handling charges of MCES. MCES has included the cost of these facilities in its
<br />base rate, thus "payment" of credits is dependent upon MCES’s setting future user fees at a level sufficient
<br />to cover all such credits from participating municipalities. Therefore, the revenue has been deferred until
<br />such user fees are paid or accrued.
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