Annual Financial Report 12/31/1994

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low - Immr CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1994 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. 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, 1994 and 1993. Future scheduled tax levies for all bonds outstanding at December 31, 1994 totaled $5,814,896. Note 15 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31, 1994 and 1993 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, 1994 and 1993 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 1994 1993 General Fund: Reserve for prepaid items $70,738 $88,984 Designated for general contingencies 540,238 502,867 Designated for cash flow reserve 1,226,538 1,051,000 Designated for employee benefits 33,420 30,188 Special Revenue Fund: Reserve for prepaid items 415 Designated for recreation program 7,527 3,073 Debt Service Funds: Reserved for debt retirement 1,635,861 4,086,918 Capital Project Funds: Reserve for prepaid items 75 Designated for capital improvements 7,227,066 6,822,363 Designated for committed contracts 164,399 13,421 Designated for equipment acquisition 42,763 78,569 Designated for park improvements 283,883 173,018 Totals $11,232,923 $12,850,401 37