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 - Continued CASH AND INVESTMENTS Cash and investment balances consisted of the following at December 31, 1984 and 1983: December 31 1984 1983 Cash - checking $(23,450) $ 3,219 Petty Cash 150 150 Investments 565,091 578,421 Total $541,791 $581,790 Investments are stated at cost, which approximates market value. Earnings on investments are allocated to the individual funds based on the average month end cash and investment balances of each fund during the year. INVENTORY The inventory of the Proprietary Fund is stated at the lower of cost or market on the first -in, first -out basis. PROPERTY, PLANT, AND EQUIPMENT General Fixed Assets. Roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems are not capitalized. The fixed assets are valued at cost or estimated replacement value as of December 31, 1975. Additions since 1975 are stated at cost. The policy of stating such assets at other than cost is at variance with generally accepted accounting principles. These assets are not accounted for in detailed inventory records. Proprietary Fund Assets. Fixed assets related to the proprietary fund are accounted for in that fund. They are valued at actual or estimated original cost. Depreciation of all exhaustible fixed assets of this fund is charged as an expense against operations. Accumulated depreciation is reported on that fund's balance sheet. Depreciation is based upon the estimated useful lives of the assets using the straight -line method. Depreciation on contributed assets charged to operations is closed to the contributed equity account. The esti- mated useful lives are as follows: Well 20 Years Buildings 25 Years Equipment 5 - 10 Years Water and sewer system 50 Years