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I »CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31, 1997 <br />NOTE 5 - LONG-TERM DEBT (CONTINUED) <br />F. Resources to Meet Future Debt Requirements <br />® Amounts Available for Long-Term Debt - Available fund balance designated or reserved for <br />repayment of long-term debt includes: <br />General Fund $ 152,262 <br />Debt Service Funds 1,867.604 <br />! I i <br />-42- <br />I 4 <br />I » <br />$ 2,019,866 <br />Amount to be Provided in the General Long-Term Debt Account Group - This amount <br />represents future revenue to be generated for debt payments, generally including deferred tax levies, <br />special assessments, fund transfers, and interest earnings. Deferred tax levies' heduled to be placed <br />on the tax rolls, as needed, total $645,900 at December 31, 1997. <br />NOTE 6 - FLEXIBLE BENEFIT PLAN <br />The City offers a flexible benefit plan. The plan is a "cafeteria plan" under § 125 of the Internal Revenue <br />Code. All employees who meet the eligibility requirements may participate in the plan. To be eligible an <br />employee must be at least 20 years of age and be an employee who is regularly scheduled to work more than <br />20 hours per week. <br />Eligible employees can elect to participate by contributing pre-tax dollars withheld from payroll checks to <br />the plan for health care and dependent care benefits. Payments are made from the plan to participating <br />employees upon submitting a request for reimbursement of eligible expenses actually incurred by the <br />participant. <br />All assets of the plan arc held by the City. The plan is administered by an independent contract administrator <br />for child care and medical expense reimbursements, and by the City for health insurance premiums. The <br />plan is included in the financial statements as an Expendable Trust Fund. <br />All plan property and income attributable to that property is solely the property of the City, subject to the <br />claims of the City’s general creditors. Participani»’ rights under the plan are equal to those of general <br />creditors of the City in an amount equal to the eligible health care and dependent care expenses incurred by <br />the participants. The City believes that it is unlikely that it will use the assets to satisfy the claims of general <br />creditors in the future. <br />tk