Annual Financial Report 12/31/1989

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Page 8 of 21 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1989 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 payable when land is platted. The City has granted a delay in collection from several developers pending actual development of the platted property. The amount not collected is recorded as an account receivable, offset by deferred revenue. The amount of uncollected fees totaled $5,060 at December 31, 1989 and 1988. SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billings for natural gas sales by a neighboring city which provides service within the City of Lino Lakes. The amount earned for 1989 totaled $13,052. This amount was received in March of 1990 and will be recorded as revenue (available criteria) in 1990. INVENTORIES GOVERNMENTAL TYPE FUNDS The original cost of materials and supplies has been recorded as expenditures and/or expenses at the time of purchase. The City does not maintain significant levels of material or supplies. PROPRIETARY TYPE FUNDS Inventories of the proprietary funds are stated at the lower -of -cost or market; cost being determined by the first -in, first-out method. FIXED ASSETS GENERAL General fixed assets are recorded as expenditures of the governmental funds at the time of purchase. Such assets are capitalized, at cost, in the General Fixed Asset Account Group except for certain improvements (roads, bridges, curbs, gutters, streets, sidewalks, drainage systems 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: Balance Balance 1/1/89 Additions Deletions 12/31/89 Land $298,943 $298,943 Buildings and improvements 525,225 $44,680 569,905 Wells 6,216 6,216 Furniture and equipment 637,324 251,584 $8,485 880,423 Totals $1,467,708 $296,264 $8,485 $1,755,487 1 1 1 1 1 1 1 1 1 1