Annual Financial Report 12/31/1983

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1 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1983 Note 2 - DEFERRED AD VALOREM TAX LEVIES - Continued GENERAL BONDED DEBT General obligation bonded debt of all Minnesota Cities is issued in accordance with State Statutes. When a bond issue to be financed by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. These future tax levies are subject to can- cellation when and if the City has provided alternative financing. Alternatively, the City Council is required to levy any additional taxes found necessary for the full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 1983 nor 1982 in accordance with generally accepted accounting principles. Revenue from these tax levies is recognized annually as explained under "Property Tax Revenue Recognition ". Scheduled and actual debt service tax levies for general obligation bonded debt are: Levy /Collection Scheduled Actual Percent Levied 1981/82 $ 94,597 $ 94,597 . 100% 1982/83 64,772 64,772 100% 1983/84 -0- -0- 0% II Note 3 - METROPOLITAN WASTE CONTROL COMMISSION 1 1 1 During 1970, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. When the MWCC was formed, existing inter- ceptor sewer lines and treatment facilities were transferred from the cities to the MWCC in exchange for future credits. The MWCC bills the City annually based upon estimated volume and budgeted costs. These billings are later adjusted when actual volume and actual costs are determined. The adjustment to actual is generally determined in the suc- ceeding calendar year and payable, by the City, in the second succeeding calen- dar year. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed (for estimated billings) and in the year the adjustments are determined (for adjustments from estimated to actual billings). IINote 4 - ACCRUED SICK AND VACATION PAY 1 1 1 The City does not record the liability for vacation and sick pay earned by employees as such benefits accrue, but rather charges expenditures when employees take vacations or use sick time. Generally accepted accounting prin- ciples do not require the accrual of liability for vacation or sick pay in the City's funds. Accumulated sick pay totaled approximately $70,400 at December 31, 1983. Vacation pay accumulations at December 31, 1983 totaled approxima- tely $4,500. No vacation carryover was approved as of December 31, 1983.