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CITY OF ORONO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2015 <br /> <br /> <br />(43) <br /> <br />NOTE 5 LONG-TERM LIABILITIES (CONTINUED) <br />B. Bonds Payable (Continued) <br /> <br />Years Principal Interest <br />2016 75,000$ 26,681$ <br />2017 75,000 25,181 <br />2018 80,000 23,631 <br />2019 80,000 22,031 <br />2020 80,000 20,431 <br />2021-2025 425,000 76,553 <br />2026-2029 380,000 22,075 <br />Totals 1,195,000$ 216,583$ <br />Bonds Payable <br />Business-Type Activities <br /> <br />C. Capital Leases <br />In November 2014, the City entered into a capital lease to lease two copy machines from <br />Advanced Imaging Solutions. The term of the lease is 36 months and extends to the end <br />of fiscal year 2017. The leased assets were capitalized in the City’s fixed assets for <br />$17,374 and accumulated depreciation as of December 31, 2015 was $6,274. The City’s <br />future minimum payments on the capital lease are as follows: <br /> <br />Years Payments <br />2016 6,155$ <br />2017 6,155 <br />Total Lease Payments 12,310 <br />Less: Interest Portion (498) <br />Present Value of Lease Payments 11,812$ <br />D. Compensated Absences <br />Liabilities for personal time off, vacation, compensation time and sick leave will be paid <br />by the General Fund and proprietary funds as appropriate. <br /> <br />E. Ultimate Responsibility for Debt <br />Long-term liability is backed by the full faith and credit of the City except the project <br />revenue bonds. <br /> <br />F. Conduit Debt Obligations <br />At times, the City has issued various types of revenue bonds to provide financial <br />assistance to private sector, nonprofit, or governmental entities to finance the acquisition <br />or construction of facilities deemed to be in the public interest. The bonds are secured by <br />the property financed and are payable solely from payments received on the underlying <br />mortgage loans. Neither the City, nor any political subdivision thereof, is obligated in any <br />manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities <br />in the City's financial statements. Original obligations totaled $800,000. It is not practical <br />to determine the outstanding balance of the conduit debt at year-end.