06-09-1997 Council Packet - Laserfiche WebLink

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'■ t - r/-‘. i r< CITY OF ORONO. MINNESOTA Notes to Financial Statements (continued) December 31, 1996 NOTE 12 - PROPRIETARY FUNDS ’ CONTRIBUTED CAPITAL This balance represents the cost of property contributed to the Enterprise Funds by the City, less depreciation thereon charged to operations. Changes occurring in this account during the year were as follows: : Water Operating Sewer Operating Golf Course Operating Total Balance - beginning of year $ 1,364,916 $ 3,818,479 $ 130,854 $ 5,314,249 1 Assets contributed -1,801,793 1,396 1,803,189 Less depreciation on contributed assets (32,886)(158,895)(793)(192,574) Balance - end of year $ 1,332,030 $ 5,461.377 $ 131,457 $ 6,924,864 NOTE 13 - COMMITMENTS AND CONTINGENCIES A. General Amounts recorded or receivable from state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. B. Construction During the year ended December 31, 1996, the City awarded certain contracts for various construction projects. The City ’s commitment for uncompleted work on these contracts at December 31, 1996 was approximately $42,669. C. Facility Lease During the year ended December 31, 1991, the City entered into an unconditional lease with the Housing and Redevelopment Authority of Orono for the City Hall and the police and public works facilities. The lease, with an option to purchase, continues until February 1, 2008 or until terminated through cancellation by not appropriating sufficient funds for payment, defeasance, default, or purchase of the project by the City. The City is responsible for the real estate taxes, insurance, utilities, and maintenance of the property. The rent expense in 1996 was approximately $402,455. -49- i