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r <br />CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31,1996 <br />NOTE 4 - DEFERRED CREDITS AND REVENUE (CONTINUED) <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 $12,295 at December 31, 1996 has <br />been recorded as due to/from other funds. The related revenue and charges have been deferred in the 1995 <br />Refunding Bonds Debt Service and General Funds, respectively. <br />C. Sewer Openttiiig 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 Waste Control Commission (MWCC). The remaining balance due from MWCC is $255,089 <br />for the facilities and is included in due from other governmental units as of December 31,1996. The total <br />price for each portion of the facilities will be received over 30 years with interest at 4% per aimum by <br />credits against the annual sewage handling charges of MWCC. MWCC has included the cost of these <br />facilities in its base rate, thus “payment" of credits is dependent upon MWCC’s setting funire user fees at <br />a level sufficient to cover all such credits from participating municipalities. Therefore, the revenue has <br />been deferred until such user fees are paid or accrued. <br />Composition of the deferred balance is as follows: <br />-38- <br />f f <br />• I <br />¥ I <br />¥ k <br />6" • <br />A <br />MWCC Remaining <br />Acquisition Deferred <br />Facility Year Credits <br />Treatment Works 1971 $ 1,570 <br />1 <br />1 <br />1963 Interceptor 1977 85,652 <br />• 1 <br />1965 Interceptor 1977 5,726 <br />M <br />$ 92,948 <br />8 \ <br />4 <br />f t <br />» I <br />» I