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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2017 <br />Note 14 FUND BALANCE <br />At December 31, 2017, a summary of the governmental fund balance classifications is as follows: <br />Nonspendable: <br />Prepaid items <br />Corpus of permanent fund <br />Total nonspendable <br />Restricted for: <br />Debt service <br />Economic development <br />Blue Heron Days <br />Narcotics and forfeiture funds <br />Tax increment purposes <br />Environmental purposes <br />Total restricted <br />Committed for: <br />Economic development <br />Cable TV purposes <br />Recreation purposes <br />Total committed <br />Assigned for: <br />Capital improvements <br />Unassigned <br />Total fund balance <br />Area and <br />Unit Charge <br />$ - $1,659 $244,976 <br />_ 100,000 100,000 <br />0 101,659 344,976 <br />Other <br />Governmental <br />Funds Total <br />G.O. <br />General <br />Improvement <br />Fund <br />Bonds of 2016B <br />$243,317 <br />$ <br />243,317 <br />0 <br />Area and <br />Unit Charge <br />$ - $1,659 $244,976 <br />_ 100,000 100,000 <br />0 101,659 344,976 <br />Other <br />Governmental <br />Funds Total <br />Note 15 PROPERTY UNDER LEASE AGREEMENT <br />The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of <br />$4,744,742 and a net book value of $1,805,168, to New Creations Child Care and Learning Center, LLC. The lease is <br />dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of <br />between $5.94 and $8.65 per square foot over the lease term, for a total of $330,904. <br />Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows: <br />Year Ending <br />December 31, <br />2018 <br />2019 <br />80 <br />Amount <br />$77,901 <br />39,522 <br />$117,423 <br />4,223,799 <br />4,223,799 <br />225,000 <br />225,000 <br />6,965 <br />6,965 <br />330,866 <br />330,866 <br />479,695 <br />479,695 <br />23,316 <br />23,316 <br />0 <br />0 <br />0 <br />5,289,641 <br />5,289,641 <br />88,251 <br />88,251 <br />83,946 <br />83,946 <br />- <br />- <br />3,204 <br />3,204 <br />0 <br />0 <br />0 <br />175,401 <br />175,401 <br />- <br />7,656,155 <br />6,925,514 <br />14,581,669 <br />6,573,608 <br />(1,932,462) <br />- <br />(976,711) <br />3,664,435 <br />$6,816,925 <br />($1,932,462) <br />$7,656,155 <br />$11,515,504 <br />$24,056,122 <br />Note 15 PROPERTY UNDER LEASE AGREEMENT <br />The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of <br />$4,744,742 and a net book value of $1,805,168, to New Creations Child Care and Learning Center, LLC. The lease is <br />dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of <br />between $5.94 and $8.65 per square foot over the lease term, for a total of $330,904. <br />Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows: <br />Year Ending <br />December 31, <br />2018 <br />2019 <br />80 <br />Amount <br />$77,901 <br />39,522 <br />$117,423 <br />