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CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31, 1997 <br />NOTE 9 - INDIVIDUAL FUND DISCLOSURES (CONTINUED) <br />B. Deficit Fund Balance <br />The Minnesota State-Aid Streets Construction Capital Project Fund had a deficit fund balance of $8,962 <br />at December 31, 1997. This deficit will be eliminated through reimbursements of project costs from <br />state-aid construction revenue or transfers from other funds. <br />C. Reservations and Designations of Fund Balances <br />For various reasons, certain funds have a portion of their fund equity reserved or designated for specific <br />purposes. A discussion of each such item as it appears on the Combined Balance Sheet follows. <br />Reservation of Fund Balance <br />” Reserved for Debt Service - This reserve represents resources which are legally restricted to <br />provide financial resources to pay principal and interest on a specific bond issue. <br />Designated for Unreserved Fund Balances <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 Capital Projects - The amounts in the Permanent Improvement Revolving and <br />1997 Sewer Construction Capital Project Funds represents fund balance that has been designated <br />for specific road, bridge, stormwater, and sewer improvement projects. <br />® Designated for Crime Prevention - The amount in the Drug and Felony Forfeiture Special <br />Revenue Fund represents fund balance that has been designated for crime prevention <br />expenditures. <br />® Designated for Capital Outlay - These amounts represent fund balances which are committed <br />to pay for capital outlay in the Special Revenue Funds. <br />® Designated for Debt Service - These amounts represent fund balances in the Debt Service <br />Funds which are presently committed to provide financial resources to pay principal and interest <br />on the City’s general obligation bonds. <br />® Designated for Vacation/Severance Benefits - This amount in the General Fund represents <br />fund balance which has been designated for payment of the estimated long-term liability for <br />vacation and severance benefits. <br />-45-