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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2017 <br />Note 12 INTERFUND RECEIVABLES AND PAY ABLES <br />Long-term interfund loans are classified as interfund loan receivable/payable. A swnmary of such loans at <br />December 31, 2017 is as follows: <br />Receivable ~ble <br />Major Funds: <br />G.O. Improvement Bonds of2016B $ $2,876,643 <br />Area and Unit Charge 100,361 <br />Sewer Fund 914,949 <br />Nonmajor Funds: <br />Closed Bond Fund 616,983 <br />Building and Facilities 2,317,533 <br />Dedicated Parks 100,361 <br />Tax Increment Financing 1-11 775,154 <br />2018 Street Reconstruction 197,668 <br />$3,949,826 $3,949,826 <br />Note 13 INTERFUND TRANSFERS <br />Individual fund transfers for fiscal year 2017 are as follows: <br />Transfer In Transfer Out <br />Major Funds: <br />General Fund $439,373 $879,759 <br />G.O. Improvement Bonds of2005A 2,187,503 7 <br />G.O. Improvement Note of2009A 1,126,057 <br />G.O. Improvement Bonds of2016B 272,506 2,187,503 <br />Area and Unit Charge 236,548 <br />Water Fund 104,969 35,727 <br />Sewer Fund 104,969 35,727 <br />Nonmajor governmental funds 2,959,004 3,819,110 <br />Total $7,194,381 $7,194,381 <br />During 2017, transfers were made to provide funding for capital improvement projects and capital outlay in <br />accordance with the City's capital improvement plan. Transfers were also made to provide resources for debt <br />service payments, to close capital project funds and debt service funds, and to allocate financial resources to <br />funds that received benefit from services provided by another fund. These transfers are routine and consistent <br />with past practices. <br />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 swnmary of the governmental fund balance classifications is as follows: <br />G.O. Other <br />General Improvement Area and Governmenta1 <br />Fund Bonds of2016B UnitCharE Funds <br />NonspendabJe: <br />Prepaid items $243,317 $ $ $1,659 <br />Corpus of permanent fund 100 000 <br />Tota] nonspendable 243317 0 0 101,659 <br />Restricted for: <br />Debt service 4,223,799 <br />Economic development 225,000 <br />Blue Heron Days 6,965 <br />Narcotics and forfeiture funds 330,866 <br />Tax increment purposes 479,695 <br />Environmental purposes 23,316 <br />Total restricted 0 0 0 ___ 5,289,641 <br />Committed for: <br />Economic development 88,251 <br />Cable TV purposes 83,946 <br />Recreation purposes 3,204 <br />Total committed 0 0 0 175,401 <br />Assigned for: <br />Capital improvements 7,656155 6 925 514 <br />Unassigned 6,573,608 (1,932,462) (976,711) <br />Total fund balance $6,816,925 \$1,932,462) $7,656,155 $11,515,504 <br />Note 15 PROPERTY UNDER LEASE AGREEMENT <br />_..!2!!!/. <br />$244,976 <br />100 000 <br />344,976 <br />4,223,799 <br />225,000 <br />6,965 <br />330,866 <br />479,695 <br />23,316 <br />5,289,641 <br />88,251 <br />83,946 <br />3,204 <br />175,401 <br />14,581,669 <br />3,664,435 <br />$24,056,122 <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 I, 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 />Amount <br />$77,901 <br />39,522 <br />$117,423 IV-36