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CITY OF ORONO <br />NOTES TC FINANCIAL STATEMENTS (Continued) <br />December 31, 1989 <br />Note 5. LONG-TERM DEBT (continued) <br />Account are to be used only for payment of principal and <br />Interest on the bonds. Net revenues of the Water and Sewer <br />System after i yment of operation and maintenance expenses are <br />to be creditei to the Water and Sewer Bond Account. Unspent <br />bond proceeds received are restricted for debt service or <br />construction in the Water and Sewer Operating Enterprise <br />Funds. <br />E. Ultimate Responsibility for Debt <br />All long-term debt is backed by the full faith and credit of the City. <br />F. Resources to Meet Future Debt Requirements <br />Amounts Available for Long-Term Debt - Available fund balance <br />or retained earnings designated or reserved for repayment of <br />long-term debt includes: <br />General Fund <br />Debt Service Funds <br />Enterprise Funds <br />$ 103,528 <br />1,385,655 <br />340,773 <br />$1,829,956 <br />Amount to be Provided in the General Long-Term Debt Account <br />Group This represents future funding of severance and vaca­ <br />tion benefits, and future taxes and special assessment v-ollec- <br />tions designated for repayment of bonds. <br />Note 6. DEFERRED REVENUE AND CREDITS <br />A. Sewer Operating Enterprise Fund, Deferred Credits <br />This amount represents the credits resulting fiom the transfer of the <br />City's sewer treatment facilities to the Metropolitan Waste Control <br />Commission (MVCC). The remaining balances due from MWCC total <br />..;"97,843 for r.he facilities and $3,163 for reserve capacity charges <br />and are included in Due From Other Governmental Units as of <br />December 31, 1989. The total price for each portion of the facilities <br />will be received over 3C w: h interest at UX per annum by <br />credits against the annual sewage handling charges of MWCC. MWCC has <br />included the cost of these facilities in its rate base, thus "payment" <br />of credits is dependent upon MWCC's setting future user fees at a <br />level sufficient to cover all such credits irom pariicipating munici­ <br />palities. Therefore, the revenue has been deferred until such user <br />fees are paid or accrued. <br />-39-