Annual Financial Report 12/31/1985

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 4 - "MEMORANDUM ONLY" PRESENTATIONS (Continued) 2) Prior year "Total" columns likewise may combined unlike purpose funds (as in 1 above) and additionally do not present detail com- ponents by fund group (as is presented for current year totals) and therefore, are incomplete presentations of prior year statements of financial position, results of operations and changes in financial position of the various funds of the City as established by generally accepted accounting principles. 3) Statements of Revenue, Expenditures and Changes in Fund Balance compared to budget present prior year actual amounts. These amounts are incomplete presentations in that prior year budget amounts are not included in conformance with generally accepted accounting principles. Note 5 - DEFERRED AD VALOREM TAX LEVIES - 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 levy 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 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 the general obligation debt were and are scheduled to be as follows: Levy /Collection 1985/86 1986/87 1987/88 Percent Scheduled Actual Levied $ 45,000 42,000 39,000 $ 45,000 100.00%