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<br />NOTE 1. <br /> <br />NOTE 2. <br /> <br />NOTE 3. <br /> <br />NORTH METRO TELECOMMUNICATIONS COMMISSION <br />NOTES TO FINANCIAL STATEMENTS <br /> <br />NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES <br />(continued) <br /> <br />Accounting Estimates: <br /> <br />The preparation of financial statements in conformity with accounting principles <br />generally accepted in the United States of America requires management to make <br />estimates and assumptions that affect the reported amounts and disclosures in these <br />financial statements. Actual results could differ from those estimates. <br /> <br />INVESTMENTS <br /> <br />At December 31, 2003, the Organization's inves1ments, recorded at fair market value <br />(based on quoted market price), consisted of municipal bonds of $179,447 and <br />certificates of deposits of $397,356. <br /> <br />LONG TERM LIAIBILITIES <br /> <br />In August 2003, the member cities of the Commission issued $2,000,000 of Cable <br />Franchise Revenue Bonds for land acquisition and construction of a bnilding. The bonds <br />mature over a fourteen-year period and bear fixed rates varying from 1.5% to 4.9%. <br />Future franchise fees and other revenue of the Commission are pledged as collateral. <br />Principal payments are to be made annually starting in December 2003. Interest is <br />payable semiannually from December 2003 through December 2017. For the year ended <br />December 31, 2003 the Commission paid and capitalized $25,644 of interest costs for <br />construction of their building. <br /> <br />Scheduled principal maturities as of December 31, 2003 are as follows: <br /> <br />Year Ending <br />December 31, Amount <br />2004 $ 105,000 <br />2005 105,000 <br />2006 110,000 <br />2007 115,000 <br />2008 120,000 <br />Thereafter 1,295,000 <br /> $ 1,850,000 <br /> <br />8 <br />