Laserfiche WebLink
CITY OF ORONO, MINNESOTA I <br />Notes to Financial Statements (continued) <br />December 31. 1995 <br />NOTE 12 - PROPRIETARY FUNDS' CONTRIBUTED CAPITAL (CONTINUED) <br />During 1994, the outstanding bonds of the 1980 Improvement Bonds Debt Service Fund were called. The <br />residual equity of the fund was transferred to the Water Operating Fund in 1995 for the purpose of assisting <br />in the debt service requirements of the G O. Water and Sewer Revenue Bonds of 1989. <br />NOTE 13 - COMMITMENTS AND CONTINGENCIES <br />A. General <br />Amounts recorded or receivable from state agencies are subject to agency audit and adjustment. Any <br />disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. <br />The amount, if any. of claims which may be disallowed by the grantor agencies cannot be determined at <br />this time although the City expects such amounts, if any, to be immaterial. <br />B. Construction <br />During the year ended December 31, 1995, the Cif' awarded certain contracts for various construction <br />projects. TTie City ’s commitment for uncompleted work on these contracts at December 31, 1995 was <br />approximately $61,581. <br />C. Facility Lease <br />During the year ended December 31, 1991, the City entered into an unconditional lease with the Housing <br />and Redevelopment AuLhority of Orono for the City Hall and the police and public works facilities. The <br />lease with an option to purchase continues until February 1, 2008 or until terminated through cancellation <br />by not appropriating sufficient funds for payment, defeasance, default, or purchase of the project by the <br />City. 'The City is responsible for the real estate taxes, insurance, utilities, and maintenance of the property. <br />The rent expense in 1995 was approximately $396,266. <br />Future minimum rental commitments under the lease are as follows; <br />Year Amount <br />1996 <br />1997 <br />1998 <br />1999 <br />2000 <br />Thereafter <br />$ 402,455 <br />402,700 <br />406,903 <br />405,017 <br />406,990 <br />3,297,495 <br />$ 5,321,560 <br />The lease purchase payments will equal the principal and interest due on the 1991 - HRA Public Facilities <br />Bonds issued to construct the facilities. <br />-53-