06-09-1997 Council Packet - Laserfiche WebLink

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To the City Council and Citizens of the City of Orono April 29. 1997 ! Special R evenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes, including current operating expenses and capital outlay. Park Fund The Park Fund was created by Ordinance of the City Council to receive contributions for subdivisions in lieu of conveyance or dedication of land for parks, playgrounds, and other public purposes. Such contributions, termed park dedication fees, are to be used for the acquisition, development, or maintenance of public parks, playgrounds, surface water holding areas (ponding areas), and debt retirement in connection with land previously acquired for such public purposes. The fund balance as of December 31, 1996 was $194,946. Improvement and Equipment Capital Outlay Fund The Improvement and Equipment Capital Outlay Fund was established by resolution of the City council to provide a source of funds for equipment purchases and improvements previously included in the General Fund budget, and thus level out the peak and valley effect of capital outlay expenditures within the General Fund budget. The fund was established by a transfer from the General Fund and is maintained by annual budgeted transfers from the General Fund, by investment earnings, and by user charges to participating departments for certain office equipment. The fund balance as of December 31, 1996 was $391,550. Buildino Capital Outlay Fund The Building Capital Outlay Fund was established to receive annual budgeted transfers from the General Fund for the purpose of reducing the need for future bonding of non-Enterprise building facilities. 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. The fund balance at December 31, 1996 was $2,487,440. 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 service are primarily provided by special assessments and property taxes. The combined fund balance for all Debt Service Funds as of December 31, 1996 was $1,604,920, an increase of $236,947, or 17.3% from 1995. The transfer of $136,993 in residual equity from the 1992 Stubbs Bay Sewer Construction Fund to the 1992 Debt Service Fund was a significant portion of the increase to fund balance. -9-