07-26-1999 Council Packet - Laserfiche WebLink

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CITY OF ORONO, MINNESOTA Notes to Financial Statements (continued) December 31, 1998 NOTE 5 - LONG-TERM DEBT (CONTINUED) 2. General Long-Term Debt and Proprietary Fund Debt Refunding Bonds - In December 1995, the City issued $1,910,000 of General Obligation Refunding Bonds of 1995 to advance refund $360,000 of the City’s General Obligation Improvement Bonds of 1985 and to advance refund $1,550,000 of the City’s General Obligation Water and Sewer Revenue Bonds of 1989. These bonds are now considered defeated. Note Payable - In July 1998, the City entered into an agreement with the Metropolitan Council. This agreement makes the City of Orono eligible to receive an Inflow/Infiltration Control Program Loan. This loan is to be used to reduce excess inflow and infiltration into local sewer systems which discharge into the Metropolitan Disposal System. E. Ultimate Responsibility for Debt Long-term debt is backed by the full faith and credit of the City, except the Public Facilities Revenue Bonds of 1991 and the Public Facilities Revenue Refunding Bonds of 1998. F. Resources to Meet Future Debt Requirements Amounts Available for Long-Term Debt > Available fund balance designated or reserved for repayment of long-term debt includes: General Fund $ 164,997 Debt Service Funds 4,473,564 $ 4,638,561 Amount to be Provided in the General Long-Term Debt Account Gruup - This amount represents future revenue to be generated for debt payments, generally including deferred tax levies, special assessments, fund transfers, and interest earnings. Deferred tax levies scheduled to be placed on the tax rolls, as needed, total $595,400 at December 31, 1998. NOTE 6 - FLEXIBLE BENEFIT PLAN The City offers a flexible benefit plan. The plan is a "cafeteria plan" under § 125 of the Internal Revenue Code. All employees who meet the eligibility requirements may participate in the plan. To be eligible an employee must be at least 20 years of age and be an employee who is regularly scheduled to work more than 20 hours per week. -41- I I I 1 I 1 1 I 1 -s f ] J