Annual Financial Report 12/31/1984

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1984 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes operates under "Plan AN as defined in the State of Minnesota Statutes. Under this plan the government of the City is run by a council composed of an elected mayor and four elected trustees or councilmen. The Council exercises legislative authority and determines all matters of policy. The City Administrator, who is appointed by the Council, is respon- sible for the proper administration of all affairs relating to the City. The accounting policies of the City of Lino Lakes conform to generally accepted accounting principles as applicable to governments except for the valuation of certain general fixed assets. The following is a summary of the more signifi- cant policies. ENTITY For the year ended December 31, 1984, the City has implemented National Council on Governmental Accounting Statement No. 3, Defining the Governmental Reporting Entity. In accordance with Statement No. 3, for financial reporting purposes the City's financial statements include all funds, account groups, boards and commissions over which the City Council exercises oversight responsibility. Oversight responsibility includes appointment of governing bodies, budget authority, approval of tax levies, and responsibility for funding deficits. There are no additional units of government which meet the criteria of NCGA #3 for inclusion in the Annual Financial Report of the City of Lino Lakes, Minnesota. FUND ACCOUNTING The accounts of the City are organized and operated on the basis of funds and groups of accounts. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances (and changes therein) which are segregated for the purpose of carrying on activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. The various funds are grouped, in the financial statements in this report, into seven generic fund types and two broad fund type categories as follows: GOVERMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the pro - ceeds of specific revenue sources (other than special assessments or major capital projects) that are restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs.