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Annual Report of the Comptroller, 1986
Volume 350, Page 53   View pdf image (33K)
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16. Commitments:

At June 30,1985, the Department of Transportation and Maryland Transportation Authority had commitments
of approximately $314,596,000 and $40,000,000, respectively, for construction of highway and mass transit facilities.
Approximately 70% of future expenditures related to the Department of Transportation commitments are expected
to be reimbursed from proceeds of approved federal grants when the actual costs are incurred. The remaining
portion will be funded by other financial resources of the Department.

The Department of Transportation, as lessor, leases terminal space at various marine terminals, airport facilities
and office space pursuant to various operating leases. Minimum future rentals (amounts expressed in thousands)
are as follows:

Years ending

Noncancellable Operating Leases

June 30,

Minimum Future Rentals

1986

$13,606

1987

10,738

1988

9,452

1989

8,328

1990

7,463

1991-1995

13,543

1996-2000

5,550

2001 and thereafter

10,640

 

$79,320

Total minimum future rentals do not include contingent rentals that may be received under certain concession
leases on the basis of a percentage of the concessionaire's gross revenue in excess of stipulated minimums.

Rent revenue was approximately $48,737,000 for the year ended June 30,1985, including contingent rentals
of approximately $14,168,000. Assets of the Department of Transportation subject to such operating lease
agreements are included in the general fixed assets account group. The cost of these assets was approximately
$236,457,000 at June 30, 1985.

As of June 30,1985, direct mortgage loan programs included in the enterprise funds had unfunded mortgage
loan commitments aggregating approximately $263,004,000. These commitments are expected to be funded from
existing program resources and proceeds from revenue bonds to be issued.

In August 1981, the Maryland Transportation Authority (Authority) entered into an agreement with the City
of Baltimore to finance the non-Federal share (approximately $100,000,000) plus accrued interest on the Federal
share, which is estimated to approximate $20,000,000, of costs associated with the construction of a tunnel across
the Patapsco River. The agreement is contingent upon the ability of the Authority to obtain the requisite financing.
The Authority expects to recover their debt service and other costs through future net toll revenues of the tunnel.
Tunnel construction began in 1980 and is expected to be completed in 1985.

At June 30, 1985, the Maryland State Lottery had commitments of approximately $17,500,000 for services
to be rendered relating principally to the operation of the lottery games.

The State is insured for workers' compensation losses by the State Accident Fund under a contract, which
provides for the State to pay premiums based upon loss experience plus a proportionate share of administrative
costs. In the event of termination of the contract, the State is obligated for any premium deficiency existing at
the time of termination. As of June 30,1985, anticipated workers' compensation claims in the amount of $41,200,000
applicable to State employees were accrued in the nonexpendable trust fund. For the year ended June 30, 1985,
the State paid the State Accident Fund approximately $11,701,000 in premiums.

53

 

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Annual Report of the Comptroller, 1986
Volume 350, Page 53   View pdf image (33K)
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