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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2024 <br />Within the government -wide financial statements, the City recognizes property tax revenue in the period <br />for which taxes were levied. Uncollectible property taxes are not material and have not been reported. <br />Within the governmental fund financial statements, the City recognizes property tax revenue when it <br />becomes both measurable and available to finance expenditures of the current period. In practice, current <br />and delinquent taxes received by the City in July, December, and the following January are recognized as <br />revenue for the current year. Taxes collected by the county by December 31 (remitted to the City the <br />following January) are classified as due from county. Taxes not collected by the county by December 31 <br />are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset by deferred <br />inflows of resources because they are not available to finance current expenditures. <br />The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal <br />Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the <br />taxable valuation of commercial/industrial real property to various taxing authorities within the defined <br />metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth <br />since 1971. <br />H. SPECIAL ASSESSMENT REVENUE RECOGNITION <br />Special assessments are levied against benefited properties for the cost or a portion of the cost of special <br />assessment improvement projects in accordance with state statutes. These assessments are collectible by <br />the City over a term of years usually consistent with the term of the related bond issue. Collection of <br />annual installments (including interest) is handled by the County Auditor in the same manner as property <br />taxes. Property owners are allowed to (and often do) prepay future installments without interest or <br />prepayment penalties. <br />Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property <br />until full payment is made or the amount is determined to be excessive by the City Council or court action. <br />If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first <br />proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of <br />delinquent special assessments. Generally, the City will collect the full amount of its special assessments <br />not adjusted by City Council or court action. Pursuant to state statutes, a property shall be subject to a tax <br />forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which <br />event the property is subject to such sale after five years. <br />Within the government -wide financial statements, the City recognizes special assessment revenue in the <br />period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not <br />material and have not been reported. <br />Within the fund financial statements, the revenue from special assessments is recognized by the City when <br />it becomes measurable and available to finance expenditures of the current fiscal period. In practice, <br />current and delinquent special assessments received by the City are recognized as revenue for the current <br />year. Special assessments collected by the County by December 31 (remitted to the City the following <br />January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and <br />special deferred assessments receivable in governmental funds are fully offset by deferred inflows of <br />resources. <br />51 <br />