Annual Financial Report 12/31/1982

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1982 Note 10 - CHANGE IN ACCOUNTING POLICIES During 1982, the City changed certain accounting policies to enhance confor- mance with generally accepted accounting principles. As such, the 1982 Annual Financial Report is not presented on a consistent basis with prior year's reports. The areas of change are as follows: • Delinquent Property Tax Revenue Recognition - During 1982, the City changed its accounting policy regarding delinquent property tax revenue recognition (see Note 1). In prior years, the City did not record an allowance for delinquent taxes. The City does not have the amount of delinquent taxes available to fund liabi- lities and /or expenditures of the fiscal period. The effect of changing to 100% allowance and deferment of delinquent tax balances is to decrease the various fund balances of the City by approximately $44,000 as of January 1, 1982. This change has been reflected in the financial statements as an adjustment to January 1, 1981 fund balances. • Amortization of Bond Discount - In prior years, the City recorded and amortized debt discount as an asset of the Special Assessment Debt Service Funds. For 1982, the City changed its accounting policy to recognize such unamortized debt discounts as expended. The effect as of January 1, 1982, was to increase interest expense by $6,900. • Accounts Receivable - Parks and Playgrounds Fund - In prior years, the City recognized donations in lieu of park land when developer's land is subdivided. For 1982 (1981 restated), the City changed its accounting policy to recognize this revenue when measurable and available to finance expenditures of the fiscal year. The effect as of January 1, 1982 was to decrease the fund balance in the Parks and Playgrounds Fund by approximately $16,000.