Laserfiche WebLink
CITY OF ORONO, MINNESOTA <br />Notes tc Financial Statements (continued) <br />December 31, 1995 <br />NOTE 4 - DEFERRED CREDITS AND REVENUE (CONTINUED) <br />B. 1985 Special Assessments <br />The City adopted a special assessment roll in 1085 which included $46,175 relating to improvements on <br />City-owned property. The General Fund will pcy these assessments over 15 years in annual installments <br />with 9.2% interest. The remaining assessment principal balance of $15,375 at December 31, 1995 has <br />been recorded as due to/from other funds. The related revenue and charges have been deferred in the 1985 <br />Improvement Debt Service and General Funds, respectively. <br />C. Developer Advances <br />In 1989, the City began construction of sewer and water improvements along State Highway 12 but had <br />not finalized the amounts to be specially assessed against benefitted properties. The developers within the <br />project area were charged a preliminary amount for the improvements. This amount was recognized as <br />contributed capital in the Water and Sewer Operating Funds during 1995. <br />D. 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 Waste Control Commission (MWCC). The remaining balances due from MWCC total <br />$277,958 for the facilities and $503 for reserve capacity charges and are included in due from other <br />governmental units as of December 31, 1995. The total price for each portion of the facilities will be <br />received over 30 years with interest at 4% per annum by credits against the annual sewage handling <br />charges of MWCC. MWCC has included the cost of these facilities in its base rate, thus "payment" of <br />credits is dependent upon MWCC’s setting future user fees at a level sufficient to cover all such credits <br />from participating municipalities. Therefore, the revenue has been deferred until such user fees are paid <br />or accrued. <br />Composition of the deferred balance is as follows; <br />Facility <br />Treatment Works <br />1963 Interceptor <br />1965 Interceptor <br />MWCC <br />Acquisition <br />Year <br />1971 <br />1977 <br />1977 <br />Remaining <br />Deferred <br />Credits <br />$ 1,963 <br />94,217 <br />6,299 <br />$ 102,479 <br />-40-