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I CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31. 1994 <br />NOTE 9 - INDIVIDUAL FUND DISCLOSURES (CONTINUED) <br />C.Reservations and Designations of Fund Balances and Retained Earnings <br />For various reasons, certain funds have a portion of their fund equity resersed vU designated tV'f specific <br />purposes. A discussion of each such item as it appears on the Combined balance Sheet follows: <br />Reservation of Retained Earnings <br />" Reserve for Revenue Bond Debt Service - This reserve in the Water and Sewer Operating <br />Funds represents fund balances which are presently committed to provide financial resources <br />to pay principal and interest on the City ’s general obligation water and sewer revenue bonds, <br />as stipulated by bond covenant. <br />Reservation of Fund Balances <br />“ Reserves for Prepaid Items and Advances to Other Funds - These reserves in the General <br />Fund repre.sent the amount of fund balance which does not represent spendable resources i»f <br />the General Fund. <br />Designated for Unreserved Fund Balances <br />®Designated for Road/Bridge Projects - The amounts in the Capital Pnyect Funds represent <br />fund balances that have been designated for specific road and bridge improvement projects. <br />®Designated for Emergency Contingencies - This amount in the Permanent Improvement <br />Revolving Capital Project Fund represents fund balances which have been designated by the <br />City Council to be segregated as an emergency source of funds. <br />®Designated for Construction - This amount represents fund balances which are committed <br />to pay for construction of the sanitary sewer project costs on the 1992 Stubbs Bay Sewer <br />Capital Project Fund. <br />®Designated for Capital Outlay - These amounts represent fund balances which are <br />committed to pay for capital outlay in the Special Revenue Funds. <br />®Designated for Debt Service - These amounts represent fund balances which are presently <br />committed to provide financial resources to pa\ principal and intere.st on the City ’s general <br />obligation bonds. <br />®Designated for Vacation/Severance Benefits - This amount in the General Fund represents <br />fund balance which has been designated for pavment of the estimated long-term liability for <br />vacation and severance benefits. <br />I -52-