Laserfiche WebLink
CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2001 <br />Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br />The following types of funds and account groups are employed by the City: <br />GOVERNMENTAL FUNDS <br />General Fund - to account for all financial resources except those required to be accounted for <br />in another fund. <br />Special Revenue Funds - to account for the proceeds of specific revenue sources that are legally <br />restricted to expenditures for specified purposes. <br />Debt Service Funds - to account for the accumulation of resources for, and the payment of, <br />general long -term debt principal, interest, and related costs. <br />Capital Project Funds - to account for financial resources to be used for the acquisition or <br />construction of major facilities other than those financed by Proprietary Funds. <br />PROPRIETARY FUNDS <br />Enterprise Funds - to account for operations: (a) that are financed and operated in a manner <br />similar to private business enterprises - where the intent of the governing body is that the costs <br />(expenses, including depreciation) of providing goods or services to the general public on a <br />continuing basis be financed or recovered primarily through user charges; or, (b) where the <br />governing body has decided that periodic determination of revenues earned, expenses incurred, <br />and/or net income is appropriate for capital maintenance, public policy, management control, <br />accountability, or other purposes. <br />FIDUCIARY FUNDS <br />Trust and Agency Funds - to account for assets held by a governmental unit in a trustee capacity <br />or as an agent for individuals, private organizations, other governmental units, and/or other <br />funds. These include (a) expendable trust funds, (b) nonexpendable trust funds, (c) pension <br />trust funds, and (d) agency funds. <br />ACCOUNT GROUPS <br />The governmental fund types are designed to account for the financial flow of a particular fund; <br />therefore, they generally include only current assets and current liabilities on their balance <br />sheets. The City maintains two account groups to account for noncurrent assets and long -term <br />liabilities as follows: <br />General Fixed Assets - The City maintains a separate account group which contains the fixed <br />assets used in the governmental fund type operations. They are assets of the City as a whole <br />and not of individual funds. <br />General Long -Term Debt - This account group contains the long -term obligations of the City <br />including general obligation bonds, certificates of indebtedness, contracts payable and <br />compensated absences payable. These long -term liabilities are expected to be financed by the <br />governmental funds. <br />NIMMI <br />