Comprehensive Annual Financial Report 12/31/2001

Home Search

CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2001 Note 10 STEWARDSHIP COMPLIANCE AND ACCOUNTABILTTY Deficit Fund Balances The City has deficit fund balances at December 31, 2001 as follows: Fund Balance Deficit Debt Service Funds: Improvement Bonds of 1998A 41,953 Capital Project Funds: Dedicated Parks 397,460 MSA Construction 438,615 1997 Construction 343,018 1998 Construction 2,661,374 Town Center Project 29,501 Lake /Apollo Drive Improvement/Market Place 360,084 Tax Increment Financing 1 -5 17,726 Tax Increment Financing 1 -6 32,799 Tax Increment Financing 1 -7 138,243 Tax Increment Financing 1 -9 18,861 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 2001 budgets in the following fund: Budget Actual Program Recreation Revenues $ 199,485 $ 241,482 Expenditures 190,705 251,072 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, 2001. 36