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CITY OF ORONO <br />NOTES TO FINANCIAL STATEMENTS (Continued) <br />December 31, 1989 <br />Note 9. PROPRIETARY FUNDS CONTRIBUTED CAPITAL <br />This balance represents the cost of property contributed to the <br />Enterprise Funds by the City, less depreciation thereon charged to <br />operations. Changes occurring in this account during the year were as <br />follows: <br />Balance - beginning of year <br />Less depreciation on contributed assets <br />Balance - End of Year <br />Water <br />OperatliTg <br />Sewer <br />Operating <br />Golf <br />Course <br />Operating Total <br />$1,0%,385 $4,388,759 $ 146,054 $5,631,198 <br />31,332 127,604 254 159,190 <br />$1,065,053 $4,261,155 <br />$ 145,000 $5,472,008 <br />Note 10. DEFINED BENEFIT PENSION PLANS - STATEWIDE <br />A. Plan Description <br />Substantially all full-time and certain part-time employees of the <br />City of Orono are covered by defined benefit pension plans admin­ <br />istered by the Public Employees* Retirement Association of Minnesota <br />(PERA). PERA administers the Public Employees' Retirement Fund (PERF) <br />and the Public Employees' Police and Fire Fund (?E?''F) which are cost­ <br />sharing, multiple-employer retirement plans. PERF members belong to <br />either the Coordinated Plan or the Basic Plan. Coordinated members <br />are covered by Social Security and Basic members are not. All new <br />members must participate in the Coordinated Plan. All police offi­ <br />cers, fire fighters, and peace officers who qualify for membership by <br />Statute are covered by the PEPFF. The payroll for employees covered <br />by PERF and PEPFF for the year ended December 31, 1989, was $645,095 <br />and $609,618, respectively; the City's total payroll was $1,358,175. <br />PERA provides retiremei.t efits as well as disability benefits to <br />members, and benefits to ^vors upon the death of eligible members. <br />Benefits are established L. ;ate Statute, and vest after three years <br />of credited service. The defined retirement benefits are based on a <br />member's average salary for any five successive years of allowable <br />service, age, and years of credit at termination of service. Two <br />methods are used to compute benefits for Coordinated and Basic mem­ <br />bers. The retiring member receives the higher of step-rate benefit <br />accrual formula (Method 1) or a level accrual formula (Method 2). <br />-44-