Comprehensive Annual Financial Report 12/31/2002

Home Search

CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2002 Note 10 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY Deficit Fund Balances The City has deficit fund balances at December 31, 2002 as follows: Fund Balance Deficit Debt Service Funds: Improvement Bonds of 1996A 521,668 Improvement Bonds of 1998A 91,275 Capital Project Funds: Dedicated Parks 740,518 MSA Construction 364,332 1997 Construction 698,540 1998 Construction 2,662,115 Town Center Project 1,081,320 Tax Increment Financing 1 -6 26,695 Tax Increment Financing 1 -8 14,428 The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. Expenditures in Excess of Budget Revenues and expenditures exceeded 2002 budgets in the following fund: Budget Actual Program Recreation $ 226,351 $ 255,528 Note 11 CONTINGENCIES Litigation - 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. Federal and State Funds - The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2002. 36