Annual Financial Report 12/31/1993

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1993 Page 18 of 19 Note 13 CONTINGENCIES The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs except pending special assessment appeals. Note 14 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 financial statements at December 31, 1993 and 1992. Future scheduled tax levies for all bonds outstanding at December 31,1993 totaled $6,261,372. Note 15 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY, At December 31,1993 and 1992 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, 1993 and 1992 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1993 1992 General Fund Reserve for prepaid items $88,984 $77,789 Designated for general contingencies 502,867 385,204 Designated for cash flow reserve 1,051,000 933,255 Designated for equipment 10,048 Designated for employee benefits 113,808 Special Revenue Fund: Designated for recreation program 3,073 Debt Service Funds: Reserved for debt retirement 4,086,918 3,364,458 Capital Project Funds: Designated for capital improvements 6,822,363 5,175,244 Designated for committed contracts 13,421 48,215 Designated for equipment acquisition 78,569 131,303 Designated for park improvements 173,018 204,536 Totals $12,934,021 $10,330,052