07-10-1995 Council Packet - Laserfiche WebLink

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I CITY OF ORONO. MINNESOTA Notes to Financial Sutements (continued) December 31. 1994 NOTE A -DEFERRED CREDITS AND REVENUE A.Contract for Deed The City sold a section of land to a homeowners ’ association on a contract for deed in February 1984. The sales price of $100,0(X) will be received in equal quarterly payments over a 15-year period, without interest. At December 31. 1994, the remaining balance of $13,358 on the contract tt<r deed is recorded as deferred revenue in the General Fund until collected and available to finance current operations. B.1985 Special Assessments The City adopted a special assessment roll in 1985 which included $46,175 relating to improvements im City-owned property. The General Fund will pay the.se assessments over 15 years in annual installments with 9.2% interest. The remaining assessment principal balance of $18,455 at December 31. 1994 has been recorded as due to/from other funds. The related revenue and charges have been deferred in the 1985 Improvement Debt Service and General Funds, respectively. C.1989 Special Assessments The City adopted special assessment rolls in 1989 which included $8,135 relating to improvements on City-owned property. The General Fund will pay these assessments over five years in annual installments with 8% interest. The final installment was paid in 1994. D.Developer Advances In 1989. the City began construction of sewer ai.d water improvements almig State Highway 12 but has not finalized the amounts to be specially asses.sed again.st benefited fn'perties. The developers within the project area were charged a preliminary amount for the improvements. This amount has beti. deferred in the Water and Sewer Operating Funds. E.Sewer Operating Enterprise Fund - Due From Other Goveniinental Unils.'Deferred Credits This amount represents the credits resulting from the transfer of the City ’s sewer treatment facilities to the Metropolitan Wa.Me Control Commission (MWCC). The remaining balances due from MWCC total $299,948 for the facilities and $503 for resers’e capacity charges and a*'e included in due from other governmental units as of December 31, 1994 The iotal price tor each portion of the facilities will be received over 30 years with intere.st at 49c per annum by credits against the annual sewage handling charges .if MWCC MWCC has included the co.st of these facilities in its ba.se rate, thus "payment' of credits is dependent upon MWCCs .setting future user fees at a level sufficient to cover all such credits from participating municipaliiies. Therefore, the revenue has been deterred until such user fees are paid or accrued. -42-