07-13-1992 Council Packet - Laserfiche WebLink

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I %■- fi*'- I r I I 'VK ^,Fj. ■a’ ■ . -i: . IliS.-s. ► ;■ ^ ■IiIs r 11-. i I it :.^t. I MlKS5r^ y, ; -r ■ i,.v_,i-‘ :.v-: m u5.. ■-sF^w I I ig%: If. I " -•-•r- Sits. I mM ■t mWt CITY OF ORONO, MINNESOTA Notes to Financial Statements (continued) December 31. 1991 NOTE 5 • DEFERRED CREDITS AND REVENUE A. Scwtr Operating Enterprise Fund, Deferred Crt Tbil amount represents the credits resulting from the transfer of the City's sewer treatment facilities to the Metropolitan Waste Control Commission (MWCC). The remaining balances due from MWCC total 1360,972 for the facilities and $2,453 for reserve capacity charges and are included in Due From Other Governmental Units as of December 31, 1991. The total price for each portion of the facilities will be received over 30 years with interest at 4% per annum by credits against the annual sewage handling charges of MWCC. MWCC has included the cost of these facilities in its rate base, thus "payment* of credits is dependent upon MWCC’s setting future user fee.s at a level sufficient to cover all such credits from participating municipalities. Therefore, the revenue has been deferred until such user fees are paid or accrued. ConmosHion of the deferred balance is as follows Facility MWCC Acquisition Year Remaining Deferred Credits Treatment Works 1971 $ 3.532 1963 Interceptor 1977 128.478 1%5 Interceptor 1977 8.590 $ 140.600 i. Contract for Deed Tbo City sold a section of land to a homeowners’ association on a Contract for Deed in February 19S4. The sales price of $100,000 will be received in equal quarterly payments over a 15-year period, wtdiout iflMrmt. At December 31. 1991, the remaining balance of $30,027 on the Contract for Deed is shown as deferred revenue in the General Fund until collected and avail^le to finance current operations. IMS Special Assessments Tbt City adopted a q>ecia] assessment roil in 1985 which included $46,175 relating to improvements on Cily*owiMd pro perty. The General Fund will pay these assessments over 15 years in annual installmems with 9.3% interest. The remaining asscssmem principtd balance of $27,695 ai December 31, 1991 has been recorded ae due to/from other funds. The related revenue and charges have been deferred in the 1913 Impro vement DeN Service and General Funds, rmpectivdy -3i- %