Annual Financial Report 12/31/1991

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1991 Page 18 of 18 Note 15 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies 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. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying fmancial statements at December 31, 1991 and 1990. Future scheduled tax levies for all bonds outstanding at December 31, 1991 totaled $2,852,332. Note 16 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31,1991 and 1990 the City had designated and reserved portions of its various fund equities through legal restriction and City Council authorization. Major fund equity appropriations at December 31, 1991 and 1990 are shown on the various balance sheets as segregation's of the fund equity. A summary of such designations is as follows: December 31, 1991 1990 General Fund: Reserve for prepaid items $76,450 $70,667 Designated for general contingencies 366,492 217,151 Designated for cash flow reserve 822,294 824,523 Designated for Installment Purchase Contract 57,283 Debt Service Funds: Reserved for debt retirement 3,221,726 2,784,745 Capital Projects Funds: Designated for capital improvements 3,308,097 3900,882 Designated for committed contracts 349,590 151,732 Designated for equipment acquisition 142,852 164,343 Designated for park improvements 220,620 188,932 Totals $8,508,1.21 _ $8,360,258 Note 17 SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billing for natural gas sales by a neighboring City which provides service within the City of Lino Lakes. The amount earned for 1991 totaled $19,286. This amount was received in May of 1992 and will be recorded as revenue (available criteria) in 1992. Note 18 SUBSEOUENT EVENT On December 19, 1991 the City approved the issuance of the $135,000 Certificates of Indetedness Series 1991. The certificates were issued on January 1, 1992.