VLAWMO Annual Financial Report 2018

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VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2018 NOTE 3 DETAILED NOTES ON ACCOUNTS (CONTINUED) Fair Value Measurements (Continued) The Minnesota Municipal Money Market Fund Trust is an external investment pool (the Pool) that is managed to maintain a dollar -weighted average portfolio maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) per share of $1.00. The Pool elects to measure its investments at amortized cost in accordance with accounting statements issued by the Government Accounting Standards Board. Restricted Assets The Organization set aside the following cash balances for repayment of individual property owners: Mitigation Restricted Cash $ 29,661 Capital Assets Capital asset activity for the year ended December 31, 2018 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities Capital Assets, Being Depreciated: Infrastructure $ 181,219 $ 431,944 $ - $ 613,163 Equipment 23,155 23,155 Construction in Process 313,273 118,671 (431,944) Total Capital Assets Being Depreciated 517,647 550,615 (431,944) 636,318 Less Accumulated Depreciation for: Infrastructure (95,379) (23,936) (119,315) Equipment (13,359) (2,799) (16,158) Total Accumulated Depreciation (108,738) (26,735) (135,473) Total Govemmental Activities $ 408,909 $ 523,880 $ (431,944) $ 500,845 The full depreciation expense amount was charged to projects. Operating Lease The Organization entered into a lease agreement with the City of Vadnais Heights for office space. The lease agreement has an effective period beginning January 1, 2018 and will be terminated on December 31, 2020. The lease agreement calls for monthly payments for office space, as well as amounts for the Organizations portion of normal operating expenses, such as: janitorial, secretarial, office supplies, postage, utilities, IT support, and any other costs that arise. (32)