Annual Financial Report 12/31/1984

Home Search

CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1984 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued GOVERNMENTAL FUNDS - Continued Capital Project Funds - Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital faci- lities (other than those financed by proprietary funds and special assessment funds) . Special Assessment Funds - Special Assessment Funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a con- tinuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue earned, expenses incurred, and /or net income is appropriate for capital main- tenance, public policy, management control, accountability, or other purposes. TRUST AND AGENCY Agency Funds are used to account for assets held by a governmental unit as an agent for individuals, private organizations, other governmental units and /or other funds. GENERAL FIXED ASSETS AND LONG -TERM LIABILITIES The governmental fund types previously discussed are designed to account for the financial flow of a particular fund; therefore, they generally include only current assets and current liabilities on their balance sheets. The City main- tains two account groups to account for noncurrent assets and long -term liabi- lities as follows: General Fixed Assets - The City maintains a separate group of accounts which contains the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. General Long -Term Debt - This account group contains the long -term obligations of the City including general obligation bonds, certificates of indebtedness, and contracts payable. It does not include the long -term liabilities of Special Assessment Funds which are accounted for in those funds.