Comprehensive Annual Financial Report 12/31/2001

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a Wow CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2001 Note 12 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 fmancial statements at December 31, 2001 and 2000. Future scheduled tax levies for all bonds outstanding at December 31, 2001 totaled $12,365,748. Note 13 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31, 2001 and 2000, 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, 2001 and 2000 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 2001 2000 General Fund: Reserve for prepaid items $ 105,969 $ 105,052 Designated for cash flow reserve 3,818,700 3,436,544 Special Revenue Fund: Reserve for prepaid items 1,551 1,017 Designated for recreation programs 41,195 51,319 Debt Service Funds: Reserved for debt retirement 1,768,402 4,101,453 Capital Project Funds: Reserved for Advance to Other Funds 853,917 582,916 Reserved for land held for resale 989,506 989,506 Designated for capital improvements 10,146,843 10,061,453 Enterprise Funds: Reserved for Equipment Replacement 474,423 Totals $ 18,200,506 $ 19,329,260 Note 14 SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service within the City of Lino Lakes. The amount reported as revenue in the General Fund was $56,600 for 2001.