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CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2013
<br />Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY (CONTINUEDZ
<br />B. EXPENDITURES IN EXCESS OF BUDGET
<br />The following is a listing of expenditure categories that exceed budget appropriations for non -major funds:
<br />Budget
<br />Actual Excess
<br />Program Recreation Special Revenue Fund:
<br />Supplies $ 51,675 $ 73,185 $ (21,510)
<br />Note 9 CONTINGENCIES
<br />Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office
<br />of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
<br />applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could
<br />have a material effect on the financial statements.
<br />Federal and State Funds — The City receives financial assistance from federal and state governmental agencies in the
<br />form of grants. The disbursement of funds received under these programs generally requires compliance with the
<br />terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any
<br />disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the
<br />opinion of management, any such disallowed claims will not have a material effect on any of the financial
<br />statements of the individual fund types included herein or on the overall financial position of the City at December
<br />31, 2013.
<br />Litigation — The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments,
<br />and litigation. As of December 31. 2013 any potential affect this may have on the City is not estimable, however it
<br />is not expected to have a material effect on the financial statements of the City.
<br />Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
<br />General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond
<br />issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
<br />against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies
<br />is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is
<br />notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to
<br />cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy
<br />any additional taxes found necessary for full payment of principal and interest.
<br />These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31,
<br />2013.
<br />Future scheduled tax levies for all bonds outstanding at December 31, 2013 totaled $16,589,767.
<br />CITY OF LINO LAKES, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />December 31, 2013
<br />Note 11 FUND BALANCE
<br />At December 31, 2013, the City had various fund balances restricted, committed, or assigned through legal
<br />restriction and City Council authorization. Major fund balance appropriations at December 31, 2013 are shown on
<br />the various balance sheets as segregations of the fund balance. The fund balances are as follows:
<br />Total Nonspendable Restricted Committed
<br />General Fund: S 5.209.286 S - 5 - S - S 5 5.209.286
<br />Prepaid Items 176.797 176.797 - - Total General Fund 5.386.083 176,797 - - - 5.209.286
<br />G.O. Improvement Bonds 2005A:
<br />Deficit Fund Balance (2.101.738) - - (2,101.738)
<br />Improvement Bonds 2009E
<br />Debt Service 996.291 - 996,291 - -
<br />Municipal Slate Aid:
<br />Construction Projects 4,595.797 - - - 4595,797
<br />Area and Unit Charge:
<br />Advances to Other Funds 460.881 - - - 46(1.881
<br />Construction Projects 3.709.170 - - 3.709.170 -
<br />Total Area and Unit Charge 4,170,051 - - - 4,170.051 -
<br />Nonmajor Governmental Funds:
<br />Prepaid lams 1.710 1,710 - -
<br />Economic Development - Loan Receivable 225,000 - 225.000
<br />Corpus of Permanent Fund 100,000 100,0001 - -
<br />Program Recreation 110.457 - 110.457 - Cable TV Fund 10.618 - - 10,618
<br />Environmental Improvements 21,475 - 21,475
<br />Debt Service 2.408.784 - 2,408.784
<br />Construction Projects 6,944,854 - - 6.944.854
<br />Deficit Fund Balance (1.291.809) - - (1.291.809)
<br />Total Nonmajor Funds 8.531.089 101.710 2.655.259 121.075 6.944.854 (1291.819)
<br />Total Fund Balances S 21.577.573 5 278,507 S 3.651,550 5 121,075 S 15.710.702 S 1.815.739
<br />Assigned Unassigned
<br />Note 12 SHARE IN GAS FRANCHISE PROFITS
<br />The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service
<br />within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2013 was
<br />$61,280.
<br />Note 13 INTERFUND RECEIVABLE AND PAYABLES
<br />The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds
<br />and at December 31, 2013 are as follows:
<br />Governmental Activity:
<br />G.O. Improvement Bonds 2005A
<br />Other Nonmajor Governmental Funds
<br />Business -Type Activity:
<br />Sewer Fund
<br />Receivable Payable
<br />$
<br />2,534,940
<br />559,110
<br />$ 2,259,643
<br />834,407
<br />3,094,050 $ 3,094,050
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