VILLAGE OF GRAFTON NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE III - DETAILED NOTES ON ALL FUNDS (cont.) C. RESTRICTED ASSETS The following represent the balances of the restricted assets: Long-Term Debt Accounts Redemption - Used to segregate resources accumulated for debt service payments over the next twelve months. Operations & maintenance - Used to segregate resources set aside to pay for future operations and maintenance. Construction - Used to report proceeds of revenue bond issuances that are restricted for use in construction. Equipment Replacement Account The wastewater utility established an equipment replacement account to be used for significant mechanical equipment replacement as required by the Wisconsin Department of Natural Resources. Following is a list of restricted assets at December 31, 2016: Restricted Assets Liabilities Payable from Restricted Assets Restricted Net Position Construction account $ 204,054 $ - n/a Equipment replacement account 1,092,910 - 1,092,910 Operations and maintenance 240,281 - 240,281 Redemption 137,594 3,439 134,155 Total $ 1,674,839 $ 3,439 $ 1,467,346 65