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IV-39CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 Note 13 FUND BALANCE At December 31, 2018, a summary of the governmental fund balance classifications is as follows: Ncmpendable: --Corpus ofpc:rmanent fund Total nompendable Restrictedfor: Debtservice Capital improvemmts Economlcdovelopn,,ot Blue Heron Days Narcotics and forfeiture funds K-9 Unit pmposes Tax increment purpoaes Environmental. pU!p08e8 Totalrestricwd Commitlalfor: --Economic developmant Cable1VJ)UIPOSCS Total committed A,.;gn,dfur. Caphalhnprovemonb u-Tatalfundbalance o.o. Other Oencnt1 Improvement Area and MSA 2018 Street GovemmentaJ. ~ ~ ~ ~ ~ ___l'!!!!__ ----1:!?!L_ $286,186 $ $ S S $1,9518 $288.184 ---·----·----·---------·-~ ~ ~ ----• ----• ----• ____ o -----1!!s!!!... -----2!!.t!!!.. 3,740,709 3,740,709 4,788,701 227,S40 5,016,241 225,000 225,000 9,695 9,695 204,357 204.357 37,189 37,189 557,211 SS1,2l1 ---·----·-___ ._ --------·-~ ~ ----• ----• ----• ____ o ~ ~ ~ 18,497 18,497 89,S41 89,S41 ---·--------------·----·-~ ~ ----• ----• ----• ----• ____ o ~ ~ ---·----·-~ ~ ~ ~ 19,195,652 ~ ~ ---·----·------~ 3,664.497 ~ (S2,IS01I05) ~ $3,9191729 $513001079 ~ ~ Note 14 PROPERTY UNDER LEASE AGREEMENT The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of $4,744,742 and a net book value of$1,647,0IO, to New Creations Child Care and Learning Center, LLC. The lease is dated July I, 2014 and continues through J1D1e 30, 2019. As of December 31, 2018, future minimum lease payments receivable in 2019 amolDlt to $39,522. An agreement to extend the lease through ]IDie 30, 2029 is expected to be signed during J1D1e 2019. Note 15 TAX INCREMENT DISTRICTS The City is the administrating authority for three tax increment districts. The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could have a material effect on the financial statements. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2018 The following table reflects values at December 31, 2018: TIF 1-5 Cottage Homesteads Authorizing law M.S.469 Year established 1994 Final year of district 2022 Net tax capacity: Original $128 Current (payable 2018) 37~75 TIF 1-10 Panattoni M.S.469 2004 2023 $15,869 228,752 Captured -retained $37,247 ~883 Note 16 COMMITMENTS AND CONTINGENCIES A. LffiGATION TIF 1-11 TIF 1-12 Woods Clearwater ~ Creek M.S.469 M.S.469 2005 2006 2031 2026 $25,291 $21,416 159,792 215,294 $134~~878 Existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance, of an immaterial amo1D1t, or, in the judgment of the City's management, remotely recoverable by plaintiffs. B. FEDERALANDSTATEFUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2018. C. COMMITTED CONTRACTS At December 31, 2018, the City had commitments of $4,912,466 for IDlcompleted construction contracts. In addition, the City has entered into construction contracts during 2019 totaling $1, 790,574. Note 17 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. W orlcers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
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