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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 1996
<br />Note 9 DEFERRED COMPENSATION PLAN
<br />The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code
<br />Section 457. The deferred compensation plan is offered by the International City Managers Association. The
<br />plan, available to all employees, permits them to defer a portion of their salary until future years. The deferred
<br />compensation is not available to the employees until termination, retirement, death or an unforeseeable
<br />emergency.
<br />All amounts of compensation deferred under the plan, all property and rights purchased with those amounts,
<br />and all income attributable to those amounts, property or rights are (until paid or made available to the
<br />employee or other beneficiary) solely the property and rights of the City (without being restricted to the
<br />provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants'
<br />rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market
<br />value of the deferred account for each participant.
<br />It is the City's opinion that it has no liability for losses under the plan but does have the duty of due care that
<br />would be required of an ordinary prudent investor. The City believes that it is unlikely that it will use the
<br />assets to satisfy the claims of general creditors in the future.
<br />Included in the Agency Funds on the combined balance sheet is $467,350 of funds recorded at market value
<br />and primarily held by insurance companies in various investment pools for future payment of plan benefits.
<br />Note 10 SEGMENT INFORMATION
<br />The City maintains three Enterprise Funds which provide water, sanitary sewer and gas utility services.
<br />Segment information for the year ended December 31, 1996 is as follows:
<br />Operating revenue
<br />Depreciation ccpcnse
<br />Operating income (loss)
<br />Property, plant
<br />and equipment additions
<br />Net income (loss)
<br />Area and unit charges
<br />Operating transfer in
<br />Operating transfer out
<br />Net property, plant
<br />and equipment
<br />Net working capital
<br />Total assets
<br />Bonds payable
<br />Total equity
<br />46
<br />Total
<br />Water Sewer Water Gas Totals
<br />Utility Utility and Sewer Utility 1996 1995
<br />$430,997 $527,507 S958,504 $ - $958,504 $821,595
<br />141,461 187,953 329,414 - 329,414 304,475
<br />78,758 (59,102) 19,656 (8,885) 10,771 (12,093)
<br />2,770,029 9,782 2,779,811 - 2,779,811 39,626
<br />(56,810) (47,622) (104,432) (8,885) (113,317) 129,314
<br />179,250
<br />104,565
<br />179,250
<br />9,781,946 8,760,674 18,542,620 2,375 18,544,995 14,521,063
<br />1,022,021 425,422 1,447,443 (11,309) 1,436,134 727,792
<br />11,567,716 9,211,204 20,778,920 2,375 20,781,295 15,358,577
<br />4,265,000 - 4,265,000 4,265,000 995,000
<br />6,581,290 9,182,138 15,763,428 (8,934) 15,754,494 14,294,276
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