07-27-1998 Council Packet - Laserfiche WebLink

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To the City Council and Citizens of the City of Orono May 15, 1998 Permanent Improvement REvoi.viNn FirNn The Permanent Improvement Revolving Fimd provides financing for construction costs prior to obtaining permanent financing or levying of assessments against benefitted properties for those projects fimded directly. Within this fond there is also an account for major road and bridge repairs, construction, or maintenance. The fond balance as of December 31,1997 was $551,388, an increase of $12,076 from 1996. 1997 Sewer Construction Fund The 1997 Sewer Construction Fund was created to account for the bond proceeds from the 1997 Improvement Bonds and the costs of construction of the 1997 North Long Lake and Long Lake Country Club sanitary sewer improvements. Bay Ridge/Hartwood and Brackett’s Point sanitary sewer improvements, and the Orono Ice Arena sanitary sewer and water improvements projects. The fond balance as of December 31,1997 was $181,885. Enterprise Funds Enterprise Funds are u<;ed to account for the operations of self-supporting activities which render services or goods to the public. The accounting records are maintained on the accrual basis of accoimting. Water O perating Fund The Water Operating Fund accounts for the provision of water services to the residents of the City who have water service available. All activities necessary to provide such services are accounted for in this fimd, including administration, operations, maintenance, billing, and collection. The summary of operations for 1997 and 1996 is as follows: December 31 1997 1996 Operating revenue Operating expenses $ 220,622 $ 251,538 243.289 250,184 Operating income (loss) $ (22,667) $ 1,354 The 1997 operating revenue decreased $30,916 from 1996. This was due in part to a wetter than normal sununer and significant reductions in consumption from several large users. Tlie operating loss for 1997 does not include nonoperattng revenues of $130,458 or nonoperating expenses of $27,412. The operating income for 1996 also does not include nonoperating revenue and transfers in of $188,438 or nonoperating expenses of $42,278. Retained earnings as of December 31, 1997 were $449,903 which represents an increase of $113,265 from 1996, net of the effects of depreciation on contributed assets and nonoperating items. -10-