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r <br />ii 5 I -I <br />i 4 <br />* 1 <br />I* <br />fet <br />CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31, 1997 <br />NOTE 4 - DEFERRED CREDITS AND REVENUE (CONTINUED) <br />B. 1985 Special Assessments <br />The City adopted a special assessment roll in 1985 which included $46,175 relating to improvements on <br />City-owned property. The General Fund will pay these assessments over 15 years in annual installments <br />with 9.2% interest. The remaining assessment principal balance of $9,215 at December 31,1997 has been <br />recorded as due to/from other funds. The related revenue and charges have been deferred in the 1995 <br />Refunding Bonds Debt Service and General Funds, respectively. <br />C. Sewer Operating Enterprise Fund - Due From Other Governmental Units/Deferred Credits <br />This amount represents the credits resulting from the transfer of the City ’s sewer treatment facilities to the <br />Metropolitan Council Environmental Services (MCES). The remaining balance due from MCES is $ 136,616 <br />for the facilities and is included in due from other governmental units as of December 31,1997. The total <br />price for each portion of the facilities will be received over 30 years with interest at 4% per annum by credits <br />against the annual sewage handling charges of MCES. MCES has included the cost of these facilities in its <br />base rate, thus "payment" of credits is dependent upon MCES’s setting future user fees at a level sufficieiit <br />to cover all such credits from participating municipalities. Therefore, the revenue has been deferred until <br />such user fees are paid or accrued. <br />Composition of the deferred balance is as follows: <br />MCES Remaining <br />Facilitv <br />Acquisition <br />Year <br />Deferred <br />Credits <br />- <br />Treatment Works 1971 $ 1,178 <br />1963 Interceptor 1977 77,087 <br />--1965 Interceptor 1977 5,153 <br />$ 83,418 <br />-38-