Annual Financial Report 12/31/1985

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) PARK DEDICATION FEE REVENUE RECOGNITION The City receives park dedication fees from developers. The amount due the City is collectible when the developer's land is platted. The City has granted a delay in the collection from several property owners pending development of the platted property. The amount not collected at the normal time of receipt has been presented as deferred revenue. The amount of unrecognized park dedi- cation fees due the City upon application for building permits was $5,060 and $6,820 at December 31, 1985 and 1984 respectively. INVENTORIES The inventory of the Proprietary Fund is stated at the lower of cost or market on the first in, first out basis. FIXED ASSETS FIXED ASSETS - GENERAL General fixed assets are recorded as expenditures of the governmental funds at the time of purchase. Such assets are valued at cost or estimated replacement value as of December 31, 1975. Additions since 1975 are stated at cost. These assets are capitalized in the general fixed assets group of accounts except for certain improvements (roads, bridges, curbs, gutters, streets, sidewalks, drainage system and lighting systems) which are not capitalized. Gifts or contributions are recorded in general fixed assets at fair market value at the time received. No depreciation has been provided on general fixed assets. A summary of changes in General Fixed Assets is as follows: Land Wells Buildings & improvements Equipment Balance 1/1/85 Additions $ 160,151 6,216 182,228 379,422 $ 19,478 333,935 44,432 Deletions $ 28,000 40,000 Balance 12/31/85 $ 151,629 6,216 516,163 383,854- Totals $ 728,017 $ 397,845 $ 68,000 $1,057,862 The City does not maintain detailed records nor accounting controls over general fixed assets. The amounts presented in the Statement of General Fixed Assets represent amounts accumulated from historical financial reports only, without regard to physical inventories or listings.