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Page 6of21 <br />CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1989 <br />NOTE 2 DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued) <br />CASH AND INVESTMENTS (continued) <br />INVESTMENTS (cont.) <br />Credit Risk Category <br />Investment Type 1 2 <br />Commercial Paper $2,230,877 so <br />Investment Company Shares <br />Totals <br />GRANT REVENUE RECOGNITION <br />3 <br />Carrying Market <br />Amount Value <br />$2,230,877 $2,230,875 <br />231.348 231.348 <br />$2,462,225 $2,462,223 <br />The City receives various Federal, State and other grants, the purpose of which is to fund specific <br />City expenditures. These revenues are recognized at the time of the specific expenditures. <br />MUNICIPAL STATE AID <br />Municipal State Aid (MSA) is recognized as revenue in the period the funds are designated for <br />specific construction projects. <br />LOCAL GOVERNMENT AID <br />Local govemment aid is provided by the State. This aid is provided as a shared tax based upon a <br />statutory formula and without restrictions. Payment from the State is generally received during <br />each calendar year. The City recognizes local government aid revenue when it becomes both <br />measurable and available to finance current operations. In practice, local government aid is <br />recognized as revenue as it is received in cash. <br />PROPERTY TAX REVENUE RECOGNITION <br />Property tax levies are set by the Council in October each year, and are certified to Anoka County <br />for collection in the following year. The County spreads all levies over assessable property. Such <br />taxes become a lien on January 1 and are recorded as receivable by the City at that date. The <br />County is responsible for billing and collecting all property taxes for itself, the City, the local <br />School District and other taxing authorities. These taxes are payable by May 15 and October 15 of <br />each calendar year by the property owners. These taxes are collected by the County and remitted to <br />the City by approximately July 15 and December 15. Additionally, delinquent collections <br />(November through December) are remitted to the City each January. The City has no ability to <br />enforce payment of property taxes by property owners. The County possesses this authority. <br />Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after 3 years unless it is <br />homesteaded, agricultural, or seasonal recreational land (as defined in State Statutes) in which event <br />the property is subject to such sale after 5 years. <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />