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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2018
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<br />Note 13 FUND BALANCE
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<br />At December 31, 2018, a summary of the governmental fund balance classifications is as follows:
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<br />G.O.Other
<br />General Improvement Area and MSA 2018 Street Governmental
<br />Fund Bonds of 2016B Unit Charge Construction Reconstruction Funds Total
<br />Nonspendable:
<br />Prepaid items $286,186 $ - $ - $ - $ - $1,998 $288,184
<br />Corpus of permanent fund - - - - - 100,000 100,000
<br />Total nonspendable 286,186 0 0 0 0 101,998 388,184
<br />Restricted for:
<br />Debt service - - - - - 3,740,709 3,740,709
<br />Capital improvements - - - - 4,788,701 227,540 5,016,241
<br />Economic development - - - - - 225,000 225,000
<br />Blue Heron Days - - - - - 9,695 9,695
<br />Narcotics and forfeiture funds - - - - - 204,357 204,357
<br />K-9 Unit purposes - - - - - 37,189 37,189
<br />Tax increment purposes - - - - - 557,211 557,211
<br />Environmental purposes - - - - - 33,853 33,853
<br />Total restricted 0 0 0 0 4,788,701 5,035,554 9,824,255
<br />Committed for:
<br />Recreation purposes - - - - - 18,497 18,497
<br />Economic development - - - - - 89,541 89,541
<br />Cable TV purposes - - - - - 74,575 74,575
<br />Total committed 0 0 0 0 0 182,613 182,613
<br />Assigned for:
<br />Capital improvements - - 8,156,800 3,919,729 511,378 6,607,745 19,195,652
<br />Unassigned 6,599,956 (2,150,105) - - - (785,354) 3,664,497
<br />Total fund balance $6,886,142 ($2,150,105) $8,156,800 $3,919,729 $5,300,079 $11,142,556 $33,255,201
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<br />Note 14 PROPERTY UNDER LEASE AGREEMENT
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<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 $1,647,010, to New Creations Child Care and Learning Center, LLC. The lease is
<br />dated July 1, 2014 and continues through June 30, 2019. As of December 31, 2018, future minimum lease payments
<br />receivable in 2019 amount to $39,522. An agreement to extend the lease through June 30, 2029 is expected to be
<br />signed during June 2019.
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<br />Note 15 TAX INCREMENT DISTRICTS
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<br />The City is the administrating authority for three tax increment districts. The City’s tax increment districts are
<br />subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse
<br />of tax increments could become a liability of the applicable fund. Management has indicated that they are not
<br />aware of any instances of noncompliance which could have a material effect on the financial statements.
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