Annual Financial Report 12/31/1986

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CITY OF LINO LAKES, MINNESOTA Page 4 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1986 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) BUDGETARY DATA (Continued) The City monitors budget performance on the departmental basis. Any amounts over budget have been approved by the City Council through the disbursement approval process. Charter provisions prohibit the City from exceeding the overall General Fund Expenditures budget unless the original budget is formally amended. Significant budget variances are as follows for the current year. Ove r (Under) Budget Actual Budget General Fund: Consultants: Planning and zoning $ 11,000 $ 26,085 $ 15,085 Legal 37,100 49,432 12,332 General Government Buildings: Capital outlay 4,700 108,824 104,124 The unfavorable budget variance for planning and zoning is primarily related to an amendment to the City's comprehensive plan. The unfavorable budget variance for legal is primarily due to increased prose- cution expenditures. The unfavorable budget variance for General Government Buildings - capital outlay is primarily due to the purchase of land and building for a new fire hall. Encumbrance accounting, under which purchase orders, contracts, and other com- mitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed by the City because it is at present considered not necessary to assure effective budgetary control or to facilitate effective cash planning and control. Any appropriations that need to be carried forward to the next year have to be reappropriated by the City Council from the fund balance of the fund involved. Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS ASSETS CASH AND INVESTMENTS Cash balances from all funds are pooled and invested to the extent available in authorized investments. Earnings from such investments are allocated to the individual funds on the basis of applicable cash balances available in each of the funds and in accordance with State Statute.