Annual Financial Report 12/31/1987

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Page 18 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 12 - CHANGE IN ACCOUNTING PRINCIPLE The Governmental Accounting Standards Board (GASB) issued in January 1987, Statement 6 "Accounting and Financial Reporting for Special Assessments ". Statement 6 established accounting and financial reporting standards for capital improvements financed by special assessments. The City adopted the principles of Statement 6 for the year ended December 31, 1987 which resulted in the following changes: *Special assessment fund type has been eliminated. *Special assessment debt is now accounted for within the General Long -Term Debt Account Group. Fund balances for the years ended December 31,1987 and 1986 were restated as follows: Fund balance at December 31, 1986 as previously reported Cumulative effect of change in accounting for special assessment revenue Reclassification of special assessment debt to general long -term debt Debt Capital Special Service Project Assessment Fund Fund Fund $1,985 $129,793 $404,498 Changes in fund classification 745.582 Fund balance at December 31, 1986 as restated $747,567 (2,337,754) 3,054,320 375.482 1.121.064 $505,275 Fund balances for the years ended December 31, 1987 and 1986 were restated as follows: Fund balance at December 31, 1987 before change Cumulative effect of change in accounting for special assessment revenue Reclassification of special assessment debt to general long -term debt Changes in fund classification Fund balance at December 31, 1987 after change Debt Capital Special Service Project Assessment Fund Fund Fund $5,780 $211,572 ($630,958) (2,086,356) 4,194, 500 723.603 753.583 (1.477.186) $729 383 $965,155 $0