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CITY OF ORONO, MINNESOTA <br />MANAGEMENT’S DISCUSSION AND ANALYSIS <br />YEAR ENDED DECEMBER 31, 2015 <br /> <br /> <br /> <br />(16) <br /> <br />Governmental Activities <br />The graphs showing the governmental activities and their income clearly reflect the need for property <br />taxes to supplement the activities of the City. Under the state’s current local government aid formula the <br />City will receive no local government aid. <br /> <br />Charges  for Services <br />41% <br />Operating Grants  and  <br />Contributions <br />8% <br />Capital  Grants  and  <br />Contributions <br />0% <br />Property Taxes <br />50% <br />Unrestricted  <br />Investment Earnings <br />1% <br />Other <br />0% <br /> <br />Business-Type Activities <br />The Stormwater, Recycling, and Cable Television funds experienced operating profits in the current <br />year. The Water and Sewer funds recorded operating losses. Water rates are continuing to be <br />increased based on the updated utility rate study, with the goal of producing a positive operating <br />income in the future. The Sewer funds operating loss is the result of a 22% increase in wastewater <br />disposal charges from the previous year. This increase was a one year spike and was not used in <br />calculating the rates for 2015. During 2015 the city was notified that our charges will be decreasing by <br />19% which is a level consistent with past charges. The fund will operate at a profit in the future. All of <br />the enterprise funds experienced net profits when non-operating revenues are included. Utility rates <br />continue to be set base on the utility rate study that was updated in 2013. <br /> <br />Charges  for Services <br />92% <br />Capital  Grants  and  <br />Contributions <br />1% <br />Unrestricted Interest  <br />Income on <br />Special  Assessments <br />0% <br />Unrestricted  <br />Investment Earnings <br />2%Miscellaneous <br />5% <br />