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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2022 <br /> <br /> <br /> <br /> <br />P. DEFINED BENEFIT PENSION PLANS <br /> <br />For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and <br />pension expense, information about the fiduciary net position of the Public Employees Retirement <br />Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been <br />determined on the same basis as they are reported by PERA, except that PERA’s fiscal year end is June <br />30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit <br />payments and refunds are recognized when due and payable in accordance with the benefit terms. <br />Investments are reported at fair value. <br /> <br /> <br />Q. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES <br /> <br />In addition to assets, the statement of financial position reports a separate section for deferred outflows <br />of resources. This separate financial statement element represents a consumption of net assets that <br />applies to future periods and so will not be recognized as an outflow of resources (expense) until that <br />time. The City has two items that qualify for reporting in this category. Pension related deferred <br />outflows of resources are reported in the government-wide statement of net position and the proprietary <br />funds statement of net position. OPEB related deferred outflows of resources are only reported in the <br />governmental activities column of the government-wide statement of net position as amounts applicable <br />to business-type activities are immaterial. <br /> <br />In addition to liabilities, the statement of financial position reports a separate section for deferred <br />inflows of resources. This separate financial statement element represents an acquisition of net assets <br />that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue) <br />until that time. Lease related deferred inflows of resources are reported in the government-wide <br />statement of net position and the governmental funds balance sheet. Pension related deferred inflows of <br />resources are reported in the government-wide statement of net position and the proprietary funds <br />statement of net position. OPEB related deferred inflows of resources are only reported in the <br />governmental activities column of the government-wide statement of net position as amounts applicable <br />to business-type activities are immaterial. The City also has a type of item, which arises only under a <br />modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the <br />item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental <br />funds report unavailable revenue from the following sources: property taxes and special assessments <br />not collected within 60 days from year-end. <br /> <br /> <br />R. FUND BALANCE CLASSIFICATIONS <br /> <br />In the fund financial statements, governmental funds report fund balance in classifications that disclose <br />constraints for which amounts in those funds can be spent. These classifications are as follows: <br /> <br />Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and <br />corpus of any permanent fund. <br /> <br />Restricted - consists of amounts related to externally imposed constraints established by creditors, <br />grantors or contributors; or constraints imposed by state statutory provisions. <br /> <br />Committed - consists of internally imposed constraints. These constraints are established by a <br />resolution approved by the City Council, and committed amounts cannot be used for any other <br />purpose unless the City Council removes or changes the specified use by resolution. <br /> <br /> <br /> <br />54