HomeMy WebLinkAboutAudit Report 12/31/1976CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
YEAR ENDED DECEMBER 31, 1976
INDEX
City Council and Other Officials
Plan of Government and Description of Funds
Basic Financial Statements:
Accountants' Report on Basic Financial Statements
Page
1
2 - 3
General Fund -
Balance Sheet 5
Statement of Cash Receipts and Disbursements 6 - 7
Statement of Changes in Fund Balance. 8
Special Revenue Funds -
Balance Sheet
Statement of Cash Receipts and Disbursements
Fire Protection Fund
Police Fund
Civil Defense Fund
Parks and Playgrounds Fund
Road and Bridge Fund
Revenue Sharing Fund
SAC Fund
Metro Sewer Fund
Statement of Changes in Fund Balance
9
10
10
11.
11
12
13
13
13
14 - 15
Debt Service Funds
Balance Sheet 16
Statement of Cash Receipts and Disbursements 17
Statement of Changes in Fund Balance 17
Special Assessment Funds -
Balance Sheet 18
Statement of Cash Receipts and Disbursements 19
Statement of Changes in Fund Balance 19
Water and Sewer Operating Fund -
Balance Sheet
Statement of Cash Receipts and Disbursements
Statement of Changes in Fund Balance
Statement of General Long -Term Debt
Statement of General Fixed Assets
Notes to Financial Statements
Additional Information:
Accountants' Report on Additional Information
Section I - Balance Sheet Supporting Schedules
Schedule A -1 Investments
Section II -
Exhibit A
Exhibit B
Exhibit C
Exhibit D
Exhibit E
Summary of Balance Sheets - All Funds
Summary of Cash Receipts and Disbursements - All Funds
Assessed Valuations, Tax Levies and Mill Rates
Debt Service Requirements and Sources of Financing
Deferred Tax Levies (ad valorem) for Future Debt Service
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24 - 26
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31 - 32
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CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
City Council and Other Officials
Year Ended December 31, 1976
Term of Office
From To
City Council:
Mayor William Bohjanen 1/1/76 12/31/77
Trustees Harvey Karth 1/1/76 12/31/79
Robert Schneider 1/1/76 12/31/79
Richard Zelinka 1/1/74 12/31/77
John McLean 1/1/74 12/31/77
Clerk- Treasurer
Edna Sarner Continuous
CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
PLAN OF GOVERNMENT
The City of Lino Lakes operates under "Plan A" as defined in the State of Minnesota
Statutes. Under this plan the government of the City is run by a council composed
of an elected mayor and four elected councilmen. The council exercises legislative
authority and determines all matters of policy. The council appoints administrative
personnel who are responsible for the proper administration of all affairs relating
to the City.
DESCRIPTION OF FUNDS
GENERAL FUND
The General Fund was established to account for the revenue and expenditures necessary
to provide basic governmental services for the City. The principal sources of revenue
are property taxes, intergovernmental revenue, licenses and permits, and charges for
current services. Expenditures are for general government, general services, protective
inspection and other functions. A plan of financial operation is set forth each year
in the form of the annual budget adopted by the council.
SPECIAL REVENUE FUNDS
Special revenue funds are established to account for the proceeds from special tax
levies and other dedicated revenues to be used for a specified purpose. The following
funds are included in this group:
Fire Protection Fund
Police Fund
Civil Defense Fund
Parks and Playgrounds Fund
Road and Bridge Fund
Revenue Sharing Fund
SAC Fund
Metro Sewer Fund
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DEBT SERVICE FUND II
The Debt Service Fund is used to account for the payment of principal and interest II on general obligation bonds issued by the City. They are retired out of the receipts
of ad valorem levies established for that purpose. Revenue and Special Assessment
bonds are not included in this group. They are serviced out of their respective funds. I
The fund is used to retire the Municipal Building Bonds of 1970.
SPECIAL ASSESSMENT FUND
The Special Assessment Fund is established to account for the receipt and disbursement
of bond proceeds or other sources obtained to finance improvements which are to be
paid for wholly or in part from special assessments levied against benefited property.
The fund also accounts for assessments levied against individual property owners and I
use the assessments collected to retire the Improvement Bonds of 1974.
PUBLIC ENTERPRISE FUND
The Public Enterprise Fund is used to account for the financing of services to the
general public where all or most of the costs involved are recovered by charges to
users of such services. Any revenue bonds issued are serviced out of the net revenues
of the enterprise. '
Water and Sewer Fund - This fund was established to account for the operation of
the City -owned water and sewer system. '
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GENERAL FIXED ASSETS
This separate group of accounts contains the fixed assets of the City, other than
those accounted for in the enterprise funds. I
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GENERAL LONG -TERM DEBT GROUP OF ACCOUNTS
This group of accounts contains the long -term debt of the City resulting from general
obligation bonds issued. The debt is an obligation of the City as a whole and not of
individual funds.
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BASIC FINANCIAL STATEMENTS
ANFINSON, HENDRICKSON . fh CO.
ORIS A. HENDRICKSON, C. P. A.
DONALD D. ANFINSON, C. P. A.
NEIL L. HENDRICKSON, C. P. A.
DAVID W. HERBST, C. P. A.
DONALD M. FLEISCHMAN, C. P. A.
' The City Council and Residents
City of Lino Lakes
Lino Lakes, Minnesota
CERTIFIED PUBLIC ACCOUNTANTS
AFFILIATED WITH
NATIONAL CPA GROUP
MEMBER FIRMS IN PRINCIPAL CITIES
10501 WAYZATA BOULEVARD
MINNETONKA, MINNESOTA 55343
TELEPHONE (612) 545 -0421
We have examined the balance sheets of the various funds and account groups of the City
of Lino Lakes, Minnesota as of December 31, 1976 and the related statements of changes
in fund balances and cash receipts and disbursements for the year then ended. Our
examination was made in accordance with generally accepted auditing standards, and accord -
ingly included such tests of the accounting records and such other auditing procedures
as we considered necessary in the circumstances, except that we did not examine the balance
sheet of General Fixed Assets for the reason stated in the following paragraph.
Because the City does not maintain fixed . asset records which provide complete accounting
control over quantities and costs of all equipment it was impracticable to audit the
accompanying balance sheet of General Fixed Assets and we express no opinion thereon,
except with respect to the basis of valuation of certain assets included therein, which
is at variance with generally accepted accounting principles as more fully explained in
Note 1.
The accompanying financial statements do not include statements of income and retained
earnings and changes in financial position for the Water and Sewer Fund nor statements of
revenue and expenditures for the other funds. Accordingly, the financial statements do
not present results of operations and changes in financial position in conformity with
generally accepted accounting principles.
In our opinion, except for the Statement of General Fixed Assets, the aforementioned
balance sheets and statements of changes in fund balances present fairly the financial
position of the funds and account groups of the City of Lino Lakes, Minnesota as of
December 31, 1976 and the changes in fund balances of all funds for the year then ended
in conformity with generally accepted accounting principles applied on a basis consistent
with that of the preceding year, after giving retroactive effect to the changes, with
which we concur, in the method of accounting for delinquent taxes, delinquent special
assessments, deferred special assessments and bonds payable as described in Note 7 to the
Financial Statements; and the statements of cash receipts and disbursements of the funds
present fairly their cash transactions for the year then ended on a basis consistent with
that of the preceding year.
Minnetonka, Minnesota
January 13, 1977
uPiu c�.zarf j ���a
Certified Public Accountants
CITY OF LINO LAKES
GENERAL FUND
BALANCE SHEET
As of December 31, 1976
ASSETS
Clerk's balance $ 3,810
Taxes receivable - delinquent 17,314
Accounts receivable 3,346
Prepayments 6,324
Total Assets $30.794
LIABILITIES, RESERVES AND FUND BALANCE
Liabilities:
Accounts payable
Pensions (Note 6)
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$ 2,280
Reserves:
Street improvement 760
Prepayments 6 324
Total Reserves 7,084
Fund balance
Total Reserves and Fund Balance
Total Liabilities, Reserves and Fund Balance
The accompanying Notes to Financial Statements are an integral part of this
statement.
21,430
28,514
$30.794
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CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
GENERAL FUND CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Actual Budget
RECEIPTS
Taxes:
Tax Settlements $ 29,066
License and Permits:
Liquor 9,580
Beer 132
Cigarette 60
Special Use Permits 79
Dance 500
Building and Moving 11,041
Plumbing 2,398
Dog and Kennel 318
Contractors 150
Sign 1,519
Taxi 20
25,797
State Tax Apportionments:
Local Government Aid and Attached
Machinery Aid 48,002
Homestead Credit 8,621
Refunds and Reimbursements 153
56,776
Charges for Current Services:
Animal Handling 287
Rezoning, Variances and Plotting 1,135
1,422
Over
(Under)
Budget
Miscellaneous Revenue:
Sale of Property 750
Interest Earned 1,316
Gopher Bounty 85
Miscellaneous Sales 403
2,554
Anti Recession Title II 3,725
Total Cash Receipts 119,340 $131,040 $ 11,700
Transfers from Other Funds 21,068
Total Receipts and Transfers $140,408
The accompanying Notes to Financial Statements are an integral part of
this statement.
CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
GENERAL FUND CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
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DISBURSEMENTS
City Council:
Salaries
Telephone
Heat
Electricity
Insurance and Bonds
Maintenance, Labor and Supplies
Elections:
Salaries
Supplies
Finance and Administration:
Salaries
Public Works Supervisor
Clerk- Treasurer
Assistants
Payroll Taxes
Employee Benefits
Office Supplies and Expense
Auditing Services
Surcharges - Building and Plumbing
Refunds and Reimbursements
Fiscal Service
Assessing:
Salaries
Legal:
Professional Services
Printing and Publishing
Planning and Zoning:
Engineering Services
Planning Consultant
Protective Inspection:
Building Inspection
Plumbing Inspection
Weed and Tree Inspection
Animal Control:
Dog Catcher
Gopher Bounties
Capital Outlay:
Office Furniture
Land Acquisition
Total Disbursements
Transfers to Other Funds
Total Disbursements and Transfers
Over
(Under)
Actual Budget Budget
$ 6,000 $ 6,000
1,530 1,500
1,072 1,700
1,650 1,450
15,761 7,000
4,634 21,600
993
55
12,348
9,559
4,017
15,887
241
1,716
2,690
1,168
171
900
12,640
9,500
6,000
12,000
$ 30
(628)
200
8,761
(16,966)
93
55
(292)
59
(1,983)
3,887
241
1,716
2,500 190
1,168
171
200 (200)
4,376 4,500 (124)
18,830 14,950 3,880
428 400 28
4,576 3,000 1,576
2,437 2,500 (63)
6,564
532
3,182
6,564
532
3,182
1,873 2,500 (627)
87
200 (113)
2,330 1,000
1,000
$113,040
124,707
24,632
$149.339
1,330
(1,000)
$11.667
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF LINO LAKES
GENERAL FUND
STATEMENT OF CHANGES IN FUND BALANCE
For the Year Ended December 31, 1976
Balance January 1, 1976 $ 12,742
Adjustments: (Note 7)
To add delinquent taxes receivable 1,518
Balance January 1, 1976 as adjusted 14,260
Additions
Cash receipts during year 119,340
Transfers from other funds 21,068
Increase in delinquent taxes receivable 15,795
Increase in accounts receivable 3.,346
Total Additions 159,549
Deductions
Cash disbursements during year 124,707
Transfers to other funds 24,632
Increase in accounts payable 2,280
Increase in reserve for street improvement 760
Total Deductions 152,379
Balance December 31, 1976 $ 211430
The accompanying Notes to Financial Statements are an integral part of this
statement.
CITY OF LINO LAKES
SPECIAL REVENUE FUNDS
BALANCE SHEETS
As of December 31, 1976
Parks & 'Revenue
Combined Playgrounds Sharing
Total Fund Fund
ASSETS
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Clerks Balance $41,102 $20,903 $20,199
Delinquent taxes receivable 2,194 2,194
II
Accounts receivable 385 385
Due from governmental units 6,777 6,777
Total Assets $50,458 $23,482 $26,976 II
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Fund Balance
Total Liabilities and
Fund Balance
$ 70 $ 70
50,388 -- 23,412 $26,976
$50,458 $23,482 $26,976 II
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The accompanying Notes to Financial Statements are an integral part of this statement.
CITY OF LINO LAKES
FIRE PROTECTION FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Tax Levy
Homestead Credit
Total Receipts
Transfer from General Fund
Total Receipts and Transfers
Disbursements:
Fire Contract - Centerville
Fire Contract - Lexington
Fire Marshall
Total Disbursements
POLICE FUND
Over
(Under)
Actual Budget Budget
$12,074
3,021
15,095
1,711
$16,806
$16,600 $(4,526)
3,021
$16,600 x(1,505)
$ 4,978
13,601
204
$18,783 _$16,600 $ 2,183
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Tax Levy
Homestead Credit
State Aid for Police Service
Police Contract with Centerville
Municipal Court Fines
Accident Reports
Reimbursements
Total Receipts
Transfer from Other Funds
Total Receipts and Transfers
Disbursements:
Salaries
Uniforms
Insurance and Benefits
Office Supplies
Repairs and Maintenance
Miscellaneous
Bulk Fuel
Capital Outlay:
New Patrol Car
Total Disbursements
Over
(Under)
Actual Budget Budget
$36,641
10,394
2,908
11,563
4,318
96
4,809
70,729 $782800
21,451
$92,180
$64,409
785
1,917
1,007
5,854
130
6,263
$68,360
680
2,260
1,500
$ (3,951)
105
(343)
(493)
5,854
130
6,263
6,000 (6,000)
$80,365 $78,800 $ 1,565
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF LINO LAKES
CIVIL DEFENSE FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Tax Levy
Homestead Credit
Total Receipts
Disbursements:
Director's Expense Allowance
General Supplies
Shop Fund Distribution
Total Disbursements
Transfer to General Fund
Total Disbursements and Transfers
PARKS AND PLAYGROUNDS FUND
Actual
$ 889
237
S 1,126
$ 369
127
379
875
2,413
.$ 3,268
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Tax Levy
Homestead Credit
Total Receipts
Transfer from Revenue Sharing Fund
Total Receipts and Transfers.
Disbursements:
Salaries
Contracted Service
Utilities and Supplies
Building and Grounds Maintenance
Baldwin Lake Park Property Lease
Shop Fund Distribution
Capital Outlay
Wells
Total Disbursements
The accompanying Notes to Financial Statements
Actual
$14,430
4,161
18,591
5,766
$24,357
$ 6,300
582
1,011
920
1
348
6,216
$15,378
Over
(Under)
Budget Budget
$ 1,100 $ (211)
237
$ 1.100 S 26
$ 1,100 $ (225)
Over
(Under)
Budget Budget
$19,224 $(4,794)
' _ 4,161
19,224 (633)
5,776 (10)
$25,000 $ (643)
$ 7,500
1,000
2,200
1,600
12,700
$(1,200)
(418)
(1,189)
(680)
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(12,352)
6,216
$25,000 $(9,622)
are an integral part of this statement.
CITY OF LINO LAKES
ROAD AND BRIDGE FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Over
(Under)
Actual Budget Budget
Receipts:
Tax Levy $10,932
Homestead Credit 2,848
Local Government State Aid 34,812
Street Improvement 750
Interest Earned 10
Material Sold 696
Total Receipts 50,048
Transfers From Other Funds
Total Receipts and Transfers
Disbursements:
Salaries
Contracted Road Work
Street Lighting
General Supplies
Bulk Fuel
Capital Outlay
Miscellaneous
Total Disbursements
30,298
$80,346 $77,000 $ 3,346
$16,692 $15,000 $ 1,692
41,893 58,000 (16,107)
2,843 2,600 243
2,439 400 2,039
4,871 4,871
6,624 1,000 5,624
287 287
$75,649 $77,000 $(1,351)
The accompanying Notes to Financial Statements are an integral part of this statement.
CITY OF LINO LAKES
REVENUE SHARING FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Actual
Receipts:
Federal Revenue Sharing $32,723
Transfers to Other Funds:
General Fund $ 6,563
Road and Bridge Fund 23,062
Police Fund 5,766
Park Fund 5,766
Total Transfers to Other Funds $41,157
SAC FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Service Availability Charges
Actual
$17,850
Disbursements:
Remittances to Metro Sewer Board $17,672
Transfer to General Fund 178
Total Disbursements and Transfers $17,850
Receipts:
Interest Earned
METRO SEWER FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Actual
S 215
$11,913
Transfer to General Fund
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF LINO LAKES
SPECIAL REVENUE FUNDS
STATEMENT OF CHANGES IN FUND BALANCE
For the Year Ended December 31, 1976
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Balance January 1, 1976
Adjustments (Note 7)
To add delinquent taxes receivable
Balance January 1, 1976, as adjusted
Additions
Cash receipts during year
Transfers from other funds
Increase in delinquent taxes receivable
Increase in accounts receivable
Increase in due from other governmental units
Total Additions
Deductions
Cash disbursements during year
Transfers to other funds
Decrease in delinquent taxes receivable
Increase in accounts payable
. Total Deductions
Balance December 31, 1976
Combined
Total
$ 39,882
13,666
53,548
188,527
59,226
676
385
6,777
255,591
191,050
55,483
12,148
70
258,751
$50,3$8
Fire
Protection
Fund
$ 1,978
2,277
4,255
15,095
1,711
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16,806
18.783
2,278
21,061
$ -0-
The accompanying Notes to Financial-Statements are an integral part of this statement.
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Civil Parks & Road & Revenue Metro
Police Defense Playgrounds Bridge Sharing Sewer
Fund Fund Fund Fund Fund Fund
' $(11,815) $2,162 $11,924 $ (4,698) $28,633 $11,698
II6,834 1,518 3 037
( 4,981) 2,,162 13,442 (1,661) 28,633 11,698
1 70,729 1,126 18,591 50,048 32,723 215
21,451 5,766 30,298
676
II385
6,777
II92,180 1,126 25,418 80,346 39,500 215
80,365 875 15,378 75,649
II2,413 41,157 11,913
6,834 3,036
11 70
87,199 3,288 15,448 78,685 41,157 11,913
S -0- -0- $23.412 ' $ -0- $26,976 $ -0 -.
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The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF LINO LAKES
DEBT SERVICE FUNDS
BALANCE SHEET
As of December 31, 1976
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ASSETS
Clerk's balance
Delinquent taxes receivable
Accounts receivable
Total Assets
Minicipal
Building
Bond
$16,702
2,576
282
$19,560
Fund Balance $19,560
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF LINO LAKES
DEBT SERVICE FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Tax Levy
Homestead Credit
Total Receipts
Disbursements:
Principal
Interest
Service Charge
Total Disbursements
DEBT SERVICE FUND
Statement of Changes in Fund Balance
For the Year Ended December 31, 1976
Municipal
Building
Bond
$13,948
2,967
$16,915
$10,000
4,370
25
$14,395
Municipal
Building
Bond
Balance January 1, 1976 $14,182
Adjustments (Note 7)
To add delinquent taxes receivable 2,232
Balance January 1, 1976 as adjusted 16,414
Additions
Cash receipts during year 16,915
Increase in delinquent taxes receivable 344
Increase in accounts receivable 282
Total Additions 17,541
Deductions
Cash disbursements during year 14,395
Balance December 31, 1976 $19,560
The accompanying Notes to Financial Statements are an integral part of this statement.
CITY OF LINO LAKES
SPECIAL ASSESSMENT FUND
BALANCE SHEET
As of December 31, 1976
Improvement
Bond of 1974
ASSETS
Clerk's balance $ 75,290
Special Assessments Receivable:
Delinquent 131,103
Deferred principal levies 48,601
Total Assets $254,994
LIABILITIES AND FUND BALANCE
Liabilities:
Bond principal payable (Note 3) $180,000
Municipal Equity:
Fund balance
Total Liabilities and Fund Balance
74,994
$254,994
The accompanying Notes to Financial Statements are an integral part of this statement.
CITY OF LINO LAKES
SPECIAL ASSESSMENT FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Receipts:
Special Assessments
Collected by county
Collected by City
Interest Earned
Total Receipts
Disbursements:
Legal Fees
Interest - Improvement Bonds of 1974
Service Charge
Total Disbursements
SPECIAL ASSESSMENT FUND
Statement of Changes in Fund Balance
For the Year Ended December 31, 1976
Improvement
Bond of 1974
$ 5,184
52,872
1,627
S 59,683
$ 58
5,850
12
$ 5,920
Improvement
Bond of 1974
Balance January 1, 1976 $ 21,527
Adjustments (Note 7)
To add delinquent special assessments 91,040
To add deferred special assessments 143,163
To include bonds payable (180,000)
Balance January 1, 1976 as adjusted 75,730
Additions
Cash receipts during year 59,683
Deductions
Cash disbursements during year
Decrease in special assessments receivable
Total Deductions
5,920
54,499
60,419
Balance December 31, 1976 $ 74,994
The accompanying Notes to Financial Statements are an integral part of this statement.
CITY OF LINO LAKES
WATER AND SEWER FUND
BALANCE SHEET
As of December 31, 1976
ASSETS
Clerk's balance
Accounts receivable
Prepaid expenses
Total Current Assets
Property and Equipment: (Note 2)
Buildings
Equipment
Other - Water Mains, etc.
Total
Less: Accumulated depreciation
Net Property and Equipment
Total Assets
LIABILITIES AND FUND BALANCE
$ 11,099
1,960
216
13,275
48,690
8,525
384,571
441,786
34,440
407,346
$420,621,
Current Liabilities:
Accounts payable $ 140
Fund Balance:
Contributed equity (Note 5) 407,346
Fund Balance 13,135
Total Fund Balance 420,481.
Total Liabilities and Fund Balance $420,621
The accompanying Notes to Financial Statements are an integral part of this statement.
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CITY OF LINO LAKES
WATER AND SEWER FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
For the Year Ended December 31, 1976
Over
(Under)
Actual Budget Budget
Receipts:
Water charges $ 2,462
Sewer Charges 1,553
Sewage Hauling Revenue 13,443
Deposits on Service 105
Sales Tax Collected 97
Total Receipts $17,660 $ 7,600 $10,06Q
Disbursements:
Salaries $ 5,888
Metro Sewer Charges 2,480
Repairs and Supplies 2,383
Sales Tax Payments 126
Utilities 1,878
Bulk Fuel 2,088
Contracted Services 407
Total Disbursements $15,25.0 S 7,600. $ 7,650
WATER AND SEWER FUND
Statement of Changes in Fund Balance
For the Year Ended December 31, 1976
Balance January 1, 1976 $ 8,689
Additions:
Cash receipts, during year 17,660
Increase in accounts receivable 1,960
Increase in prepayments 216
Total Additions 19,836
Deductions:
Cash disbursements during year 15,250
Increase in accounts payable 140
Total Deductions 15,390
Balance December 31, 1976 $13,135
The accompanying Notes to Financial Statements are an integral part of this statement.
- 21 -
CITY OF LINO LAKES
STATEMENT OF GENERAL LONG-TERM DEBT
As of December 31, 1976
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Amount Available and to be Provided for the Payment of General Long -Term Debt:
Amount available in Debt Service Funds $19,560
Amount to be provided from ad valorem taxes. 40,440
Total Available and To Be Provided S60,000
General Long -Term Debt Payable: ,
Municipal Bldg. bond principal (Notes 3 & 4) $60,000
Total General Long -Term Debt Payable $60,000
The accompanying Notes to Financial Statements are an integral part of these statements.
-22-
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CITY OF LINO LAKES
STATEMENT OF GENERAL FIXED ASSETS
As of December 31, 1976
(Unaudited)
Property, Plant and Equipment (Note 1 and 2):
Land
Wells
Buildings
Furnitures and Equipment
Investment in General Fixed Assets
$ 36,159
6,216
121,166
103,975
$267,516
The accompanying Notes to Financial Statements are an integral part of this
statement.
CITY OF LINO LAKES
NOTES TO FINANCIAL STATEMENTS
December 31, 1976
Note 1: Summary of Significant. Accounting Policies
The balance sheets and statements of changes in fund balances of
the Water and Sewer Fund and the Special Assessments Fund were
prepared on the accrual basis. The balance sheets and statements
II
of changes in fund balances of all other funds were prepared on
the modified accrual basis whereunder fund balances essentially
are credited with revenue when received and charged with expenditures'
when incurred.
b. Clerk's balances consist of cash on hand, cash in bank and invest-
ments which are stated at cost.
c. Property, plant and equipment of the Water and Sewer Fund is stated
at actual or estimated original cost. Depreciation is provided on
the straight -line method over the estimated useful lives of the*
assets.
1
General fixed assets are stated at actual or estimated values. The
policy of stating such assets at other than cost is at variance with I
generally accepted accounting principles. Additions and deletions
are not accounted for in detailed inventory records.
Depreciation of general fixed assets is not provided for in the
City's records because depreciation-does not constitute a current
budgetary expenditure. The cost of these items are accounted for
as current expenditures of the various funds in the year paid.
Note 2: Property, Plantand Equipment
Depreciation on Water and Sewer Fund assets is computed on the straight-
line method at rates of 6 to 20% for equipment and 2 to 5% for all other
assets. Depreciation: on contributed assets of $11,480 in the Water and Sewer
Fund was charged against contributed equity.
Note 3: Special Assessment Bonds
In addition to the long -term debt exhibited in the Statement of Long -Term
Debt, the City of Lino Lakes has a contingent liability against its full
faith and credit on $180,000 for a special assessment bond recorded in the
special assessment fund. The general credit of the municipality is obligated
only to the extent that any liens foreclosed against properties involved in
the special assessment district are insufficient to retire the outstanding
special assessment bond.
-24-
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NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1976
Note 4: Bond Principal Payable
Bond principal payable is comprised of the general obligation bond and
special assessment bond outstanding at year end as follows:
BONDS PAYABLE
As of December 31, 1976
General Long -Term Debt Special Assessment Bond
G.O. Municipal Building Improvement Bond of
Year Bonds of 1970 1974 . Total
Payable Principal Interest Principal Interest Principal Interest
1977 $10,000 $ 3,715 $ 40,000 $10,400 $ 50,000 $14,115
1978 10,000 3,050 35,000 7,963 45,000 11,013
1979 10,000 2,378 35,000 5,687 45,000 8,065
1980 10,000 1,700 35,000 3,413 45,000 5,113
1981 10,000 1,020 35,000 1,137 45,000 2,157
1982 10,000 340 10,000 340
$60,000 $12,203 $180,000 $28,600 $240.000 $40.803
Paying Northwestern National Northwestern National
Agent: Bank of Minneapolis Bank of Minneapolis
Interest
Rates:
6.5% - 6.8% 6.5%
NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1976
Note 5: Municipal Water Fund Contributed Equity
This balance represents the cost of property contributed to the Water and Sewer
Fund by the City, less depreciation thereon. Changes occurring in this account
during the year were as follows:
Balance - beginning of year $418,826
Less: Current depreciation on
contributed assets
Balance - end of year
11,480
$407,346
Note 6: Pension Plan
Substantially all City employees are covered by a statewide contributory re-
tirement plan operated by the Public Employees Retirement Association (PERA).
The City records pension expense as the contributions come due. Contributions
for 1976 were $12,024. Contribution rates are determined on a statewide basis
and include provisions for prior service costs. The assets of the PERA fund
were substantially less than the actuarially computed value of vested benefits
as of the most recent valuation date. That part of the deficiency attributable
to the City is not determinable.
Note 7: Fund Balances
The City has changed the method of presenting its balance sheets to include
delinquent taxes receivable, delinquent special assessments receivable, deferred
special assessments, and bonds payable. The fund balances were affected at
January 1, 1976 as follows:
Fund
Fund Balance
January 1,
1976
General
Fire
Protection
Police
Park
Road and
Bridge
Debt Service
Special
Assessment
Adjustments - Plus (Minus
Delinquent
Delinquent Special
Taxes Assessments
$ 12,742 $1,518
$ 1,978
$(11,815) .
$ 11,924
$ (4,698)
$ 14,182
$ 21,527
$2,277
$6,834
$1,518
$3,037
$2,232
Deferred
Special Bonds
Assessments Payable
Fund Balance
January 1, 1976
As Adjusted
$14,260
$ 4,255
$(4,981)
$13,442
$(1,661)
$16,414
$91,040 $143,163 $(180,000) $75,730
-26-
ADDITIONAL INFORMATION
ORIS A. HENDRICKSON, C. P. A.
DONALD D. ANFINSON, C. P. A.
NEIL L. HENDRICKSON, C. P. A.
DAVID W. HERBST, C. P. A.
DONALD M. FLEISCHMAN, C. P. A,
ANFINSON, HENDRICKSON 8 CO.
CERTIFIED PUBLIC ACCOUNTANTS
AFFILIATED WITH
NATIONAL. CPA GROUP
MEMBER FIRMS IN PRINCIPAL CITIES
10501 WAYZATA BOULEVARD
MINNETONKA, MINNESOTA 55343
TELEPHONE (612) 545 -0421
ACCOUNTANTS' REPORT ON ADDITIONAL INFORMATION
For the Fiscal Year Ended December 31, 1976
To the City Council and Residents
City of Lino Lakes
Lino Lakes, Minnesota
The primary purpose of our examination was to formulate an opinion on
the basic financial statements, taken as a whole. The additional in-
formation which is presented in the following pages for supplementary
analysis purposes, was subjected to the audit procedures applied in
our examination of the basic financial statements. This information,
while not considered necessary for fair presentation of the financial
position, cash transactions, and changes in fund balances is, in our
opinion, fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
ANFINSON, HENDRICKSON & CO.
Certified Public Accountants
Minnetonka, Minnesota
January 13, 1977
SECTION 1
BALANCE SHEET SUPPORTING SCHEDULES
CITY OF LINO LAKES
INVESTMENTS
As of December 31, 1976
SCHEDULE A -i
Fund
General Fund:
Certificate of deposit
Special Assessment Fund:
Certificate of deposit
Certificate of deposit
Certificate of deposit
Certificate of deposit
Certificate of deposit
Total Special Assessment Fund
Total Investments
Interest Rate
5.570
Cost
$ 760
5.570 487
5.5% 1, 140
5.5% 1,092
5.5% 1,077
5.5% 718
4,514
$5.274
SECTION 2
EXHIBITS
CITY OF LINO LAKES
SUMMARY OF BALANCE SHEETS - ALL FUNDS
As of December 31, 1976
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ASSETS
Clerk's balance
Taxes Receivable:
Delinquent
Special Assessments Receivable:
Delinquent
Deferred principal levies
Accounts receivable
Due from other governmental units
Prepaid expenses
Amount available in debt service funds
Amount to be provided from ad valorem levies
Property, plant and equipment
Total Assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Bond principal payable
Total Liabilities
Combined Total
(For Memorandum
Purposes Only)
Reserves and Fund Balance:
Street improvement
Prepayments
Investment in general fixed assets
Contributed equity
Retained earnings fund balance
Total Reserves and Fund Balance
Total Liabilities, Reserves
and Fund Balance
- 29
Special
General Revenue
Fund Funds
$ 148,003 $ 3,810 $41,102
22,084 17,314 2,194
131,103
48,601
5,973 3,346 385
6,777 6,777
6,540 6,324
19,560
40,440
674,862
$1,103,943 $30,794 $50,458
$ 2,490 $ 2,280
240,000
242,490 2,280
760
6,324
267,516
407,346
179,507
861,453
760
6,324
70
70
21,430 50,388
28,514 50,388
$1.103,943 $30,794 $50,458
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1 EXHIBIT A
II
Debt Special Water and General General
Service Assessment Sewer Long -Term Fixed Assets
Fund Fund Fund Debt (Unaudited)
' $16,702 $ 75,290 $ 11,099
2,576
' 131,103
48,601
282 1,960
216
$19,560
40,440
407,346 $267,516
$19,560 $254.994 $420,621 $60.000 $267,516
1
$180,000 $ 140 $60,000
180,000 140 60,000
1
407,346
I$19,560 74,994 13,135
19,560 74,994 420,481 267,516
1 $19,560 $254,994
$420 621 $60.,000. $267,516
$267,516
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CITY OF LINO LAKES
SUMMARY STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS - ALL FUNDS
For the Year Ended December 31, 1976
Fund
General Fund
Special Revenue Funds:
Road and Bridge Fund
Fire Protection Fund
Police Fund
Civil Defense Fund
Parks and Playgrounds. Fund
Revenue Sharing Fund
SAC Fund
Metro Sewer Fund
Debt Service Fund:
Municipal Building Bonds
Special Assessment Fund:
Improvement Bond of 1974
Public Service Enterprise Fund
Water and Sewer Fund
Total - All Funds
Clerk's
Balances
1 -1 -76
$12,741.79
(4,697.65)
1,977.78
(11,814.88)
2,162.02
11,923.77
28,633.55
- 0 -
11,698.63
14,182.59
21,527.35
8,688.73
$97.023.68
Clerk's balances are comprised of cash and
investments as follows:
Petty cash $ 150.00
Bank checking account 35,822.98
Bank savings account - 0 -
Investments 61,050.70
$97.023.68
EXHIBIT B
Additions Deductions Clerk's
Transfers Transfers Balances
Receipts In Disbursements Out 12 -31 -76
$119,339.25 $21,068.46 $124,707.52,, $24,631.90 $ 3,810.08
50,048.41
15,094.73
70,729.03
1,126.10
18,590.79
32,723.00
17,850.00
214.78
30,298.18
1,710.82
21,450.90
5,766.00
75, 648.94
18,783.33 `)
80,365.05
875.12
15,378.00,
17,671.50
- 0 -
- 0 -
- 0 -
2,413.00 - 0 -
20,902.56
41,157.55 20,199.00
178.50 - 0 -
11,913.41 - 0 -
16,914.66 14,395.00 16,702.25
59,682.98 5,920.40 75,289.93
17,659.86 15,249.88 11,098.71
$419.973.59 $80.294.36 $368.994.74 $80,294.36 $148.002.53
$ 150.00
60,680.36
81,898.16
5,274.01
$148.002.53
CITY OF LINO LAKES
ASSESSED VALUATIONS, TAX LEVIES AND MILL RATES
For the Year Ended December 31, 1976
EXHIBIT C
Assessed Valuations:
1976 Levy Collectible 1975 Levy Collectible!'
in 1975
in 1976
$10.221.454
$9.111.017
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Amount Mill Rate Amount Mill Rate II
Levies:
Revenue $ 20,341 . 1.99 $ 13,302 1.46
Road and bridge 11,959 1.17 32,253 3.54 II
Shop 18,399 1.80
Fire 16,661 1.63
Police 48,756 4.77 61,044 6.70 II
Parks and playgrounds 19,216 1.88 17,220 1.89
Civil defense 1,124 .11 1,093 .12
Bonds 14,106 1.38 14,851 1.63 II
Totals $150,562 14.73 $139.763 15.34 II
1
CITY OF LINO LAKES
STATEMENT OF DEBT SERVICE REQUIREMENTS AND SOURCES OF FINANCING
As of December 31, 1976 EXHIBIT D
Sources of Financing:
Amount available in Debt Service Fund
Cash $16,702
Delinquent taxes receivable 2,576
Accounts receivable 282
Deferred tax levies -
Municipal Building Bonds 49,400
Less: 5% allowance for uncollectibles (2,470)
Total Sources of Financing 66,490
Debt Service Requirements:
Bond principal - Municipal Building Bonds
Future interest - Municipal Building Bonds
Total Debt Service Requirements
60,000
12,203
72,203
Excess (Deficiency) of Sources of Financing Over
Debt Service Requirements $(5,713)
-34-
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CITY OF LINO LAKES
DEFERRED TAX LEVIES (AD VALOREM) FOR FUTURE DEBT SERVICE
OF GENERAL OBLIGATION BONDS*
As of December 31, 1976
EXHIBIT E
Year Collectible
1977
1978
1979
1980
Municipal Building Bonds
$13,400
12,700
12,000
11,300
Total $49,400
* Ad valorem levies are placed at 105% of debt service requirements, as required
by Minnesota Statutes.
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ANFINSON, HENDRICKSON 8 CO.
ORIS A. HENDRICKSON, C. P. A.
DONALD D. ANFINSON, C. P. A.
NEIL L. HENDRICKSON, C. P. A.
DAVID W. HERBST, C. P. A.
DONALD M. FLEISCHMAN, C.P.A.
The City Council
City of Lino Lakes
Lino Lakes, Minnesota
Councilmembers:
CERTIFIED PUBLIC ACCOUNTANTS
AFFILIATED WITH
NATIONAL CPA GROUP
MEMBER FIRMS IN PRINCIPAL CITIES
10501 WAYZATA BOULEVARD
MINNETONKA, MINNESOTA 55343
TELEPHONE 1612) 545 -0421
January 13, 1977
As part of our normal audit procedures we make observations as to the adequacy of
controls over the recording of transactions and the general condition of the ac-
counting records and other general comments and recommendations. The following
comments and recommendations are a result of these observations.
1. Budgeting
The City adopts an official budget each fall to cover the operations of
the various funds for the following year. However, the form of the budget
is not in fund receipt and disbursement detail and accordingly does not
comply with the format suggested in the City Handbook. The League of
Minnesota Municipalities has a great amount of material relating to the
presentation and format of a properly prepared budget. We suggest all
future City budgets be prepared as prescribed by the City Handbook. We
will be happy to assist in making the necessary changes.
2. Personnel Files
A personnel file should be established for each current employee of the
City. Each personnel file should include, as a minimum, the following
documents:
A. employment application or approved notice of employment
B. authorized current salary rate
C. current W -4
D. signed authorizations for additional payroll withholdings
3. Payroll
To improve control over payroll disbursements we recommend that all time
sheets be approved by department heads and that this approval be evidenced
by the department head's initials or signature on the time sheet.
4. Insurance
We noticed that all insurance costs were charged to the General Fund. A
portion of this cost should be allocated to the Water and Sewer Fund.
Insurance and any other overhead costs should be considered when expenses
are to be shared with other governmental entities.
S. Investing
Since the city now has a passbook savings account we suggest that its
use be maximized for investing short -term excess cash to maintain the
checking account balance at a minimum. The City should consider using a
passbook savings account at a savings and loan association because their
interest rates may produce a higher yield.
6. Cash Disbursements
From.the auditor's point of view, a good system of internal control over
cash disbursements includes a requirement that all of the following be
initialed on each invoice presented for payment:
A. indication that the goods or services have been received or
performed
B. indication that the mathematical accuracy of the invoice has been
tested
C. indication that the document is approved for payment
D. Other- account to be charged, date paid and check number
When each invoice has been paid, good internal control requires that each
document:
A. be attached to a duplicate copy of the check used in paying the
amount owed
B. be properly canceled to prevent its possible reuse or potential
double payment.
All of the above could be accomplished by the use of a rubber stamp pro-
viding the appropriate indicated spaces for initials of personnel per-
forming the functions.
7. Bookkeeping System
At our suggestion the clerk- treasurer, after receiving approval from the
council, eliminated a number of funds by closing them into the General
Fund. These funds were unnecessary and their closing should result in a
reduction of accounting and auditing costs.
As a result of closing these funds it was necessary to completely reorganize I
the accounting structure of the General and other City funds. We have
assisted and advised the clerk - treasurer in revising the chart of accounts ,
and have assisted in making necessary changes in other accounting records.
The City has been recording its activities under the new method since
January 1, 1977.
1
We wish to express our thanks for the courtesy and cooperation given us during
the audit. We have enjoyed serving you and would be pleased to discuss these
recommendations with you and assist with any changes ,you may wish to make.
Sincerely,
Gfi'I z c.:L� !,e_e_ 44_ ii 9
Certified Public Accountants