HomeMy WebLinkAboutAudit Report 12/31/1981CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
FINANCIAL REPORT
YEAR ENDED
DECEMBER 31, 1981
CITY OF LINO LAKES
ANOKA COUNTY, MINNESOTA
I N D E X
Page
City Council and Other Officials 1
Accountants' Report, General Purpose Financial Statements, and Additional
Information:
Accountants' Report Letter 2
General Purpose Financial Statements -
Combined Balance Sheet - All Fund Types and Account Groups 3 - 4
Combined Statement of Revenue, Expenditures, and Changes in Fund
Balance - All Governmental Fund Types 5 - 6
Combined Statement of Revenue, Expenditures, and Changes in Fund
Balance - Budget and Actual - General and Special Revenue Fund Types 7 - 8
Statement of Revenue, Expenses, and Changes in Retained Earnings -
Proprietary Fund Types - Water and Sewer Fund 9
Statement of Changes in Financial Position - Proprietary Fund Types -
Water and Sewer Fund 10
Notes to Financial Statements 11 - 18
Additional Information:
General Fund -
Balance Sheet 19
Statement of Revenue, Expenditures, and Changes in Fund Balance -
Budget and Actual 20 - 23
Special Revenue Funds -
Combining Balance Sheet 24
Combining Statement of Revenue, Expenditures, and Changes in Fund
Balance 25
Debt Service Fund -
Combining Balance Sheet 26
Combining Statement of Revenue, Expenditures, and Changes in Fund
Balance 27
Capital Project Funds -
Balance Sheet 28
Combining Statement of Revenue, Expenditures, and Changes in Fund
Balance 29
Special Assessment Funds -
Combining Balance Sheet 30 - 31
Combining Statement of Revenue, Expenditures, and Changes in Fund
Balance 32 - 33
General Long -Term Debt.Group of Accounts -
Balance Sheet 34
General Fixed Assets Group of Accounts -
Balance Sheet (Unaudited) 35
Exhibits -
Deferred Tax Levies (Ad Valorem) for Future Debt Service of Certificates
of Indebtedness 36
Debt Service Requirements and Sources of Financing - Debt Service Funds 37
Assessed Valuations, Tax Levies, and Mill Rates 38
CITY OF LINO`LAKES
ANOKA COUNTY, MINNESOTA
City Council and Other Officials
Year Ended December 31, 1981
Term of Office
From To
City Council:
Mayor F. Kenneth Gourley 1/01/80 12/31/81
Council members Richard Kulaszewicz 1/01/78 12/31/81
Marilyn Elsenpeter 1/01/80 12/31/83
Ronald Jaworski 1/01/80 12/01/81
*Donald R. Marier 12/28/81 12/31/83
John McLean 1/01/78 12/31/81
City Administrator
Clerk- Treasurer
Randall Schumacher Continuous
Edna Sarner Continuous
* Appointed to fill the unexpired term of Ronald Jaworski.
ACCOUNTANTS' REPORT
AND
GENERAL PURPOSE FINANCIAL STATEMENTS
ANFINSON, HENDRICKSON & CO.
CERTIFIED PUBLIC ACCOUNTANTS
The City Council and Residents
City of Lino Lakes
Lino Lakes, Minnesota
We have examined the General Purpose Financial Statements shown on pages 3
through 18, of the City of Lino Lakes, Minnesota, as of and for the year ended
December 31, 1981. Except as disclosed in the following paragraph, our examina-
tion was made in accordance with generally accepted auditing standards and,
accordingly, included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
Because the City does not maintain fixed asset records which provide complete
accounting control over quantities and original costs of all equipment, it was
impracticable to audit the accompanying financial statement of the General Fixed
Assets group of accounts 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.
In our opinion, except for the balance sheet of the General Fixed Assets Group
of Accounts, the General Purpose Financial Statements referred to above present
fairly the financial position of the City of Lino Lakes, Minnesota, at
December 31, 1981, and the results of its operations, changes in its fund
balances, and changes in financial position of the Proprietary Fund type for the
year then ended, in conformity with generally accepted accounting principles
applied on a basis consistent with that of the preceding year.
Our examination was made for the purpose of forming an opinion on the General
Purpose Financial Statements taken as a whole. The accompanying additional
information shown on pages 19 through 38 including selected information from the
year ended December 31, 1980, is presented for purposes of additional analysis
and is not a required part of the General Purpose Financial Statements. Such
information has been subjected to the auditing procedures applied in our exami-
nations of the General Purpose Financial Statements for the years ended
December 31, 1981 and 1980, and, in our opinion, is fairly stated in all
material respects in relation to the applicable General Purpose Financial
Statements taken as a whole.
Certified Public Accountants
Minneapolis, Minnesota
February 9, 1982
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Park National Bank Building • 5353 Wayzata Boulevard, Suite 410 • Minneapolis, Minnesota 55416 • 612- 545 -0421
AFFILIATED WITH NATIONAL CPA GROUP • MEMBER FIRMS IN PRINCIPAL CITIES
CITY OF LINO LAKES
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUPS
As of December 31, 1981 1
1
1
ASSETS
Cash and temporary investments
Receivables:
Accounts
Accrued interest
Taxes - delinquent
Special assessments (Note 3)
Less estimated uncollectible assessments
(Note 4)
Due from other governmental units (Note 5)
Prepaid expenses
Inventory
Property, plant, and equipment, net of
accumulated depreciation (Note 6)
Unamortized bond discount
Amount available in Debt Service Fund
Amount to be provided for debt service (Note 7)
Total Assets
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable
Contracts payable
Customer deposits
Certificates of indebtedness (Note 7)
Special assessment bonds payable (Note 7)
General obligations bonds payable (Note 7)
Total Liabilities
Fund Equity:
Investment in general fixed assets
Contributed equity (Note 8)
Retained earnings
Fund balance -
Reserved for improvements
Unreserved -
Designated for park improvements
Designated for equipment acquisition
Designated for constuction
Designated for debt service
Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
- 3 -
Governmental Fund Typ es
General
Special Debt Capital
Revenue Service Proiects
$ (83,664) $
15,096
127
39,548
27,938
(27,938)
110,156
18,272
106,374 $ 17,894 $112,640
15,901
671 75 49
4,707
11,614 4,139
$ 99,535 $134,560 $ 26,815 $112,689
$ 9,002 $
1,000
10,002
1,604
87,929
89,533
7
7
106,543
1
1
1
1
1
$ 2,709
1
2,709
109,980
$ 26,815
28,010
134,553 26,815 109,980
$ 99,535 $134,560 $ 26,815 $112,689
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t
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1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Proprietary Account Groups Totals
Fund Type General General (Memorandum Only)
Special Long -Term Fixed Assets
Assessment Enterprise Debt (Unaudited) 1981 1980
$ 294,069 $ (1,782)
183
1,257
1,062,814
7,610
21
1,859
1,247
1,746
792,439
430,718
6,914
$ 26,815
37,328 119,495
$1,402,565 $ 803,140 $ 146,310 $ 430,718
$ 18,136 $ 225
7,883
1 1 1,217,920
1,243,939
19,485
27,234
111,907
1,890
2,115
791,547
9,478
158,626 801,025
1 $1,402,565 $ 803,140
1
$ 3,910
132,400
10,000
146,310
$ 430,718
430,718
$ 146,310 $ 430,718
See Notes to Financial Statements.
- 4 -
$ 445,531 $ 595,846
38,790 14,393
2,200 5,796
44,255 25,245
1,090,752 965,729
(27,938)
127,768
19,519
1,746
1,223, 157
6,914
26,815
156,823
20,728
17,218
1,167,007
9,780
15,014
249,810
$ 3,156,332 $ 3,086,566
$ 30,079
11,793
2,890
132,400
1,217,920
10,000
1,405,082
430,718
791,547
9,478
21,089
106, 543
109,980
27,234
138,722
115,939
1,751,250
$ 3,156,332
$ 38,107
124,135
3,715
42,000
1,214,240
20,000
1,442,197
379,594
786,736
14,670
73, 101
102,109
5,452
51,962
187,955
42,790
1,644,369
$ 3,086,566
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CITY OF LINO LAKES
COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
Year Ended December 31, 1981
Special Debt
General Revenue Service
Fund Funds Funds
Revenue:
Taxes $ 228,663
$29,996
Special assessments -
Principal levies
Interest levies
Licenses and permits 65,361
Intergovernmental revenue 290,058 $ 44,730 14,729
Charges for services 50,739
Court fines 8,216
Interest on investments 3,360 17,714 1,956
Donations in lieu of park land 21,176
Miscellaneous revenue 37,783 3,000
Total Revenue 684,180 86,620 46,681
Expenditures:
General government 261,757
Public safety 320,661
Highways and streets 115,638
Parks 29,982 32,679
Miscellaneous 4,822
Capital projects
Debt service -
Principal retirement 31,000
Interest and fiscal charges 3,880
Total Expenditures 732,860 32,679 34,880
Excess of Revenue (Expenditures)
Other Financing Sources (Uses):
Bond and /or certificate proceeds
Applied to amount to be provided for debt service
Operating transfers in
Operating transfers out
Total Other Financing Sources (Uses)
(48,680) 53,941 11,801
43,000
(1,048)
41,952
(43,000)
(43,000)
EXCESS OF REVENUE (EXPENDITURES) AND
OTHER SOURCES (USES) $ (6,728) $ 10,941 $11,801
Fund balance - beginning of year 22,835 123,612 15,014
Adjustment to write off estimated uncollectible
special assessments (Note 4)
Transfer of assets to Water and Sewer Fund
Residual equity transfers (Note 4) 73,426
Fund Balance - End of Year
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$ 89,533 $ 134,553 $26,815 1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Capital
Projects
Funds
$ 1,288
1,288
9,208
9,208
(7,920)
111,400
1,048
Special
Assessment
Funds
$ 236,260
54,005
33,201
405
323,871
114,504
85,424
199,928
123,943
45,000
(205,409)
112,448 (160,409)
Totals
(Memorandum Only)
1981
$ 258,659
236,260
54,005
65,361
349,517
50,739
8,216
57,519
21,176
41,188
1,142,640
261,757
320,661
124,846
62,661
4,822
114,504
31,000
89,304
1,009,555
133,085
156,400
(205,409)
44,048
(44,048)
(49,009)
$ 104,528 $ (36,466) $ 84,076
5,452 296,456 463,369
(27,938) (27,938)
(73,426)
$ 109,980 $ 158,626 $ 519,507
See Notes to Financial Statements.
1980
$ 201,209
914,714
3,306
57,306
292,722
42, 348
8,978
105,049
44,300
17,540
1,687,472
208,429
266,015
151,368
37,494
12,535
936,324
31,000
70,986
1,714, 151
(26,679)
263,000
(926,956)
81,431
(81,431)
(663,956)
$ (690,635)
1,173,462
(19,458)
463,369
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CITY OF LINO LAKES
COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
GENERAL AND SPECIAL REVENUE FUND TYPES
Year Ended December 31, 1981
1
1
1
Revenue:
General property taxes
Licenses and permits
Intergovernmental revenue
Charges for services
Court fines
Miscellaneous revenue
Total Revenue
General Fund
Over
(Under)
Budget Actual Budget
$232,581, $228,663 $ (3,918)
49,075 65,361 16,286
281,012 290,058 9,046
48,754 50,739 1,985
8,040 8,216 176
13,231 41,143 27,912
632,693 684,180 51,487
Expenditures:
General government 193,985 261,757 67,772
Public safety 314,284 320,661 6,377
Highways and streets 133,996 115,638 (18,358)
Parks 30,085 29,982 (103)
Miscellaneous 4,822 4,822
Total Expenditures 672,350 732,860 60,510
Excess of Revenue (Expenditures) (39,657) (48,680) (9,023)
Other Financing Sources (Uses):
Operating transfers in 43,122 43,000 (122)
Operating transfers out (1,048) (1,048)
Total Other Financing Sources (Uses) 43,122 41,952 (1,170)
EXCESS OF REVENUE (EXPENDITURES) AND
OTHER SOURCES (USES) $ 3,465 $ (6,728) $ (10,193)
Fund balance - beginning of year 22,835
Residual equity transfer from Improvement Bond of 1974 (Note 4) 73,426
Fund Balance - End of Year $ 89,533
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a
Totals
Special Revenue Funds (Memorandum Only)
Over Over
(Under) (Under)
Budget Actual Budget Budget Actual Budget
$232,581 $228,663 $ (3,918)
49,075 65,361 16,286
$ 43,122 $ 44,730 $ 1,608 324,134 334,788 10,654
48,754 50,739 1,985
8,040 8,216 176
41,890 41,890 13,231 83,033 69,802
43,122 86,620 43,498 675,815 770,800 94,985
193,985 261,757 67,772
314,284 320,661 6,377
133,996 115,638 (18,358)
40,900 32,679 (8,221) 70,985 62,661 (8,324)
4,822 4,822
40,900 32,679 (8,221) 713,250 765,539 52,289
2,222 53,941 51,719 (37,435) 5,261 42,696
43,122 43,000 (122)
(43,122) (43,000) 122 (43,122) (44,048) (926)
(43,122) (43,000) 122 -0- (1,048) (1,048)
II$(40,900) $ 10,941 $ 51,841 $(37,435) $ 4,213 $ 41,648
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1
1
1
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123,612 146,447
73,426
$134,553 $224,086
See Notes to Financial Statements.
1
CITY OF LINO LAKES 11 STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPES
Year Ended December 31, 1981
Operating Revenue:
Water sales
Sewer charges
Reimbursement from MWCC
Interest on investments
Other revenue
Total Operating Revenue
Water and Sewer
(Enterprise) Fund
1981 1980
$ 4,525 $ 5,156
17,784 10,907
8,300 9,215
551 1,300
2,467 985
33,627 27,563
Operating Expenses:
Salaries 13,633Y 10,523
Employee benefits 3,453' 1,080
Repair and maintenance 6,977 12,123
MWCC sewer charges 12,149/ 6,961
Depreciation 19,509 11,105
Utilities 1,953 1,629
Other 505- 712
Total Operating Expenses 58,179 44,133
1
1
1
1
1
1
Operating Loss (24,552) (16,570)
Add: Depreciation charged to contributed equity 19,360 11,029
NET LOSS TO RETAINED EARNINGS $ (5,192) $ (5,541) '
Retained earnings - beginning of year 14,670
Transfer of Assets:
From general fund 19,458
II
From general fixed assets group of accounts 406,115
Contributed equity (405,362)
Retained Earnings - End of Year
See Notes to Financial Statements.
9
$ 9,478 $ 14,670
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1
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CITY OF LINO LAKES
STATEMENT OF CHANGES IN FINANCIAL POSITION
PROPRIETARY FUND TYPES
Year Ended December 31, 1981
Sources of Working Capital:
Contributed equity from other funds
Total Sources of Working Capital
Uses of Working Capital:
Operating loss
Less items not affecting working capital -
Depreciation
Working Capital Applied to Operations
Additions to property and equipment
Total Uses of Working Capital
Decrease in Working Capital
Changes in Components of Working Capital:
Increase (decrease) in current assets -
Cash and temporary investments
Accounts receivable
Accrued interest
Due to other governmental units
Prepaid expense
Inventory
(Increase) decrease in current liabilities -
Accounts payable
Customer deposits
Decrease in Working Capital
See Notes to Financial Statements.
Water and Sewer
(Enterprise) Fund
1981 1980
$ 24,171
24,171
24,552 $ 16,570
(19,509) (11,105)
5,043 5,465
24,535
29,578 5,465
$ (5,407) $ (5,465)
$ (2,157) $ (2,970)
964 (2,079)
(51)
(7,356)
1,247
1,746
375 (416)
(175)
$ (5,407) $ (5,465)
CITY OF LINO LAKES
NOTES TO FINANCIAL STATEMENTS
December 31, 1981 1
Note 1: Summary of Significant Accounting Policies
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 trustees
or councilmen. The Council exercises legislative authority and deter-
mines all matters of policy. The City Administrator, who is appointed
by the Council, is responsible for the proper administration of all
affairs relating to the City.
The accounting policies of the City of Lino Lakes conform to generally 1
accepted accounting principles as applicable to governments except for
the valuation of certain general fixed assets. The following is a sum-
mary of the more significant policies:
A. Fund Accounting
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GOVERNMENTAL FUNDS:
General Fund The General Fund is the general operating fund of
the City. It is used to account for all financial resources
except those required to be accounted for in another fund. 1
The accounts of the City are organized on the basis of funds and
account groups, each of which is considered a separate accounting
entity. The operations of each fund are accounted for with a
separate set of self - balancing accounts that comprise its assets,
liabilities, fund equity, revenue, and expenditures, or expenses,
as appropriate. Government resources are allocated to and
accounted for in individual funds based upon the purposes for which
they are to be spent and the means by which spending activities are
controlled. The various funds are grouped, in the financial state-
ments in this report, into six generic fund types and two broad
fund type categories as follows:
Special Revenue Funds - Special Revenue Funds are used to
account for the proceeds of specific revenue sources (other than
special assessments or major capital projects) that are
restricted to expenditures for specified purposes.
Debt Service Funds - Debt Service Funds are used to account for
the accumulation of resources for, and the payment of, general
long -term debt principal, interest, and related costs.
Capital Projects Funds - Capital Projects Funds are used to
account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those
financed by proprietary funds and special assessment funds).
NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 1: Summary of Significant Accounting Policies - Continued
GOVERNMENTAL FUNDS - Continued:
Special Assessments Funds - Special Assessments Funds are used to
account for the financing of public improvements or services deemed
to benefit the properties against which special assessments are
levied.
PROPRIETARY FUNDS:
Enterprise Funds - Enterprise Funds are used to account for opera-
tions (a) that are financed and operated in a manner similar to
private business enterprises -- where the intent of the governing
body is that the costs (expenses, including depreciation) of pro-
viding goods or services to the general public on a continuing
basis be financed or recovered primarily through user charges; or
(b) where the governing body has decided that periodic deter-
mination of revenue earned, expenses incurred, and /or net income is
appropriate for capital maintenance, public policy, management
control, accountability, or other purposes.
B. Fixed Assets and Long -Term Liabilities
The governmental fund types previously discussed are designed to
account for the financial flow of a particular fund; therefore, they
generally include only current assets and current liabilities on
their balance sheets. The City maintains two account groups to
account for noncurrent assets and long -term liabilities as follows:
General Fixed Assets - This separate group of accounts contains the
fixed assets used in the governmental fund type operations. They
are assets of the City as a whole and not of individual funds.
Roads, bridges, curbs and gutters, streets and sidewalks, and
drainage systems are not capitalized. The fixed assets are valued
at actual cost or estimated replacement value as of December 31,
1975. Additions since 1975 are stated at cost. The policy of
stating such assets at other than cost is at variance with
generally accepted accounting principles. These assets are not
accounted for in detailed inventory records.
Fixed assets related to the proprietary fund are accounted for in
that fund. They are valued at actual or estimated original cost.
Depreciation of all exhaustible fixed assets of this fund is
charged as an expense against its operations. Accumulated depre-
ciation is reported on that fund's balance sheet. Depreciation is
based upon the estimated useful lives of the assets using the
NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 1: Summary of Significant Accounting Policies - Continued
B. Fixed Assets and Long -Term Liabilities - Continued
straight -line method. Depreciation on contributed assets charged to
operations is closed to the contributed equity account. The estimated
useful lives are as follows:
Well 20 years
Buildings 25 years
Equipment 5 - 10 years
Water and sewer system 50 years
General Long -Term Debt - This account group contains the long -term
obligations of the City including general obligation bonds, cer-
tificates of indebtedness, and contracts payable. It does not
include the long -term liabilities of Special Assessment Funds which
are accounted for in those funds.
C. Basis of Accounting
Governmental funds are accounted for using the modified accrual basis of
accounting.' The revenue is recognized when it becomes measurable and
available. Substantially all sources of revenue are accrued except
interest on special assessments receivable, which is recognized when due.
Expenditures are generally recognized under the modified accrual basis of
accounting when the related fund liability is incurred. Exceptions to
this general rule include: (1) accumulated unpaid vacation, sick pay, and
other employee amounts which are not accrued; (2) principal and interest
on general long -term debt which is recognized when due; and (3) prepaid
expenses which are recorded.
The Proprietary Fund is accounted for using the accrual basis of
accounting. The revenue is recognized when it is earned and expenses
are recognized when incurred.
D. Budgets and Budgetary Accounting
The City Administrator submits a proposed operating budget to the City
Council for the fiscal year commencing the following January 1. The
operating budget includes proposed expenditures and the means of
financing them. Budgets for the General and Special Revenue Funds are
adopted on a basis consistent with generally accepted accounting prin-
ciples (GAAP). Budgeted amounts shown in the financial statements are as
originally adopted by the City Council.
E. Investments
Investments are stated at cost, which approximates market value. Earnings
on investments are allocated to the individual funds based on the average
month end cash and investment balances of each fund during the year.
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NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 1: Summary of Significant Accounting Policies Continued
F. Inventory
The inventory of the Proprietary Fund is stated at the lower of
cost or market on the first -in, first -out basis.
G. Accumulated Unpaid Vacation, Sick Pay, and Other Employee Benefit Amounts
Accumulated unpaid vacation, sick pay, and other employee benefit
amounts are not accrued. At December 31, 1981, unrecorded liabilities
included approximately $3,500 vacation pay and $45,800 sick pay.
These amounts do exceed a normal year's accumulations for sick pay.
H. Comparative Data
Comparative total data for the prior year have been presented in
the accompanying financial statements in order to provide an
understanding of changes in the City's financial position and
operations. However, comparative (i.e., presentation of prior year
totals by fund type) data have not been presented in each of the
statements since their inclusion would make the statements unduly
complex and difficult to read.
I. Total Memorandum Only Columns
Because the accounting system is organized and operated on a fund
basis, the columns on the combined financial statements captioned,
"Total (Memorandum Only)" are presented for informational purposes
only, and are not intended to present consolidated information.
Note 2: Property Taxes
A property tax levy is approved by Council resolution and certified to
the county auditor for collection. Property taxes attach an enforce-
able lien on taxable property within the City on January 1. The taxes
are collected by the county treasurer and tax settlements are made with
the City as of the last day of February, May, and October each year. A
portion of the property taxes levied is paid by the State of Minnesota
in the form of a homestead credit and is included in intergovernmental
revenue in the financial statements.
Note 3: Special Assessments Receivable
There is approximately $133,000 of assessments receivable in the 1979
Improvement Special Assessment Fund which were levied against proper -
ties which are currently not developable. The City is attempting to
obtain necessary waivers so these properties may be developed in the
future. It is not known if the City will be successful in obtaining
the waivers. If these waivers are not obtained, the City may levy ad
valorem taxes, if needed, to repay the bonds which were issued for
these improvements.
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NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 4: Estimated Uncollectible Assessments
The bonds of the 1974 Improvement Special Assessment Fund were retired
in 1981 and the remaining assets were transferred to the General Fund.
These assets included $27,938 of delinquent assessments receivable.
None of the delinquent assessments were collected in 1981. Because of
the uncertainty of the timing of collection, these assessments do not
meet the revenue recognition criteria of being both measurable and
available. As a result, an allowance for uncollectible assessments of
$27,938 was established at the time of transfer to the General Fund.
Note 5: Due from Other Governmental Units
In accordance with Minnesota Statutes and Special Session Laws,
November and December 1981 state aid payments for homestead credit,
local government aid, etc., were deferred and are to be paid
February 26, 1982. These deferred state aid payments represent $88,030
of the total due from other governmental units.
Note 6: Property, Plant, and Equipment
A summary of proprietary fund type property, plant, and equipment at
December 31, 1981, follows:
Well
Buildings
Equipment
Water and sewer system
Construction in progress
Total
Less accumulated depreciation
Net
A summary of general fixed assets and
Land
Wells
Buildings and improvements
Equipment
Total
Water and Sewer
Enterprise
$ 18,500
48,690
9,278
791,545
24,161
892,174
(99,735)
$ 792,439
changes are as follows:
Balance
Beginning
of Year
$ 36,175
6,216
141,338
195,865
$ 379,594
Balance
End
Additions of Year
$ 36,175
6,216
$ 31,627 172,965
19,497 215,362
$ 51,124 $ 430,718
NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 7: Long -Term Debt
The following is a summary of long -term debt transactions of the City
for the year ended December 31, 1981:
General Long -Term Debt
Certif-
General icates
Obliga- of
tion Indebted- Contracts
Bonds ness Payable Total
Special
Assessment
Bonds
Total
Principal payable at
beginning of year $20,000 $ 42,000 $ 5,087 $ 67,087 $1,214,240 $1,281,327
Additions:
1981 G. 0. Improve-
ment Bonds 45,000 45,000
1981 Certificates
of Indebtedness 111,400 111,400 111,400
Principal retirements (10,000) (21,000) (1,177) (32,177) (41,320) (73,497)
Principal Payable at
End of Year $10,000 $132,400 $ 3,910 $146,310 $1,217,920 $1,364,230
Long -term debt at December 31, 1981, was comprised of the following
types of issues:
General Long -Term Debt:
$100,000, 1970 municipal building bonds with one remaining
installment of $10,000 due on March 1, 1982, together with
interest at 6.8 percent.
$63,000, 1980 certificates
safety equipment pursuant
one remaining installment
together with interest at
of indebtedness, issued for public
to Minnesota Statutes 412.301, with
of $21,000 due on December 1, 1982,
6.75 percent.
$111,400, 1981 certificates of indebtedness, issued for public
safety equipment pursuant to Minnesota Statutes 412.301, due
in two annual installments of $55,700 each through December 1,
1983, together with interest at 10.75 percent.
$1,896, contract payable for purchase of Votomatic equipment
with one remaining installment of $379 due in November 1982.
$4,580, contract payable for purchase of copier due in monthly
installments of $92.86 which includes interest at 8.0 percent
through August 1, 1985.
$ 10,000
21,000
111,400
379
3,531
Total General Long -Term Debt $ 146,310
NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 7: Long -Term Debt - Continued
Special Assessment Bonds:
$63,200, 1977 improvement bonds, issued for sanitary sewer
improvements, due in annual installments of $6,320 through
July 27, 1987, together with interest at 5.0 percent.
$935,000, 1979 temporary improvement bonds, issued for various
improvements, due in one installment on December 1, 1982,
together with interest at 6.6 percent.
$ 37,920
935,000
200,000
$200,000, 1980 improvement bonds, issued for utility and street
improvements, due in annual installments of $40,000 through
December 1, 1986, together with interest at 8.25 percent.
$45,000, 1981 improvement bonds, issued for sanitary sewer
improvements, due in annual installments of $5,000 through
December 1, 1991, together with interest ranging from 10 to
11 percent.
45,000
Total $1,217,920
The annual requirements to amortize all debt outstanding as of
December 31, 1981, including interest payments of $166,861, are as
follows:
General Long -Term Debt
General
Obliga- Certificates
Year Ending tion of Contracts Special
December 31, Bonds Indebtedness Payable Total Assessments Total
1982 $10,340 $ 90,093 $ 1,493 $101,926 $ 1,066,139 $1,168,065
1983 61,688 1,114 62,802 70,813 133,615
1984 1,114 1,114 66,697 67,81111
1985 743 743 62,581 63,324
1986 58,465 58,465
1987 -1991 39,811 39,811 1
Total $10,340 $151,781 $ 4,464 $166,585 $ 1,364,506 $1,531,091
1
1
1
1
1
1
1
1
1
1
1
1
To service the general obligation bonds and certificates of indebted-
ness, $26,815 is available in the Debt Service Funds.
The amount to be provided in the General Long -Term Debt Group of
Accounts represents future tax levies for debt service on certificates
of indebtedness which will be placed annually as scheduled to provide
funds for debt retirement. Total deferred tax levies to retire General
Long -Term Debt are $159,369.
- 17 -
1
1
1
1
NOTES TO FINANCIAL STATEMENTS - Continued
December 31, 1981
Note 7: Long -Term Debt - Continued
The amount to be provided in the special assessment funds will be
derived from assessments to be levied against the benefitted
properties.
All bonds and certificates are backed by the full faith and credit of
the City.
Note 8: Proprietary Fund Contributed Capital
This balance represents the cost of property contributed to the Water
and Sewer Enterprise Fund by the City, less depreciation thereon
charged to operations. Changes occurring in this account during the
year were as follows:
Balance - beginning of year
Add: Assets contributed by Special Assessment Funds
Less: Depreciation on contributed assets
Balance - End of Year
Note 9: Pension Plans
$786,736
24, 171
(19,360)
$791,547
Substantially all City employees are covered by a statewide contribu-
tory retirement plan operated by the Public Employees Retirement
Association (PERA). The City records pension expense as the contribu-
tions come due. Contributions for 1981 were $28,942. Contribution
rates are determined on a statewide basis and include provisions for
prior service costs. The assets of the State of Minnesota 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 10: Contingencies
The City is the defendant in three lawsuits which have been filed
against it. While these claims are still pending, it does not appear
that any of these will result in any substantial cost to the City.
ADDITIONAL INFORMATION
CITY OF LINO LAKES
GENERAL FUND
BALANCE SHEET
As of December 31, 1981 and 1980
1981 1980
ASSETS
Cash and temporary investments $(83,664) $ (7,007)
Accounts receivable 15,096 7,747
Accrued interest receivable 127
Taxes receivable - delinquent 39,548 23,799
Special assessments - delinquent 27,938
Less estimated uncollectible assessments (27,938)
Due from other governmental units 110,156 475
Prepaid expenses 18,272 17,218
Total Assets $ 99,535 $ 42,232
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Customer deposits
Total Liabilities
Fund Balance:
Reserved for street improvements
Unreserved - undesignated
Total Fund Balance
$ 9,002 $ 17,397
1,000 2,000
10,002 19,397
1,604
1,548
87,929 21,287
89,533 22,835
Total Liabilities and Fund Balance $ 99,535 $ 42,232
CITY OF LINO LAKES
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL
Years Ended December 31, 1981 and 1980
1981 1980
Over
(Under)
Budget Actual Budget Actual
Revenue:
Taxes -
General property tax $210,581 $206,036 $ (4,545) $163,314
Penalty and interest 660 660 1,422
Fiscal disparities 22,000 21,967 (33) 13,765
Total Taxes 232,581 228,663 (3,918) 178,501
Licenses and permits -
Business 13,984 12,674 (1,310) 11,665
Nonbusiness 35,091 52,687 17,596 45,641
Total Licenses and Permits 49,075 65,361 16,286 57,306
Intergovernmental revenue -
State -
Local government aid 157,862 157,862 146,504
Attached machinery aid 3,237 3,237 3,030
Homestead credit 112,000 112,911 911 78,792
Wetlands 3,725 3,725
Police aid 11,150 12,188 1,038 11,296
Reduced assessments 135 135
Total Intergovernmental Revenue 281,012 290,058 9,046 239,622
Charges for services -
General government 16,896 19,649 2,753 19,343
Fees retained from collection for other
governments - SAC 404 404 452
Public safety 31,858 30,686 (1,172) 22,553
Total Charges for Services 48,754 50,739 1,985 42,348
Court fines 8,040 8,216 176 8,978
Miscellaneous revenue -
Interest on investments 3,360 3,360
Sale of property 443 669 226 5,364
Metropolitan Council Comp. plan reimbursement 9,400 17,600 8,200
Department of Transportation reimbursement 8,080 8,080
Dutch Elm reimbursement 2,600 2,833 233
Other 788 8,601 7,813 11,672
Total Miscellaneous Revenue 13,231 41,143 27,912 17,036
Total Revenue 632,693 684,180 51,487 543,791
- Continued -
CITY OF LINO LAKES
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - Continued
Years Ended December 31, 1981 and 1980
1981 1980
Over
(Under)
Budget Actual Budget Actual
Expenditures:
General government -
Mayor and council -
Salaries 4,800 4,725 (75) 4,800
Other services and charges 5,800 5,127 (673) 4,903
Elections -
Election judges salaries 800 958 158 1,642
Supplies 75 326 251 26
Administration -
Personal services 69,935 73,961 4,026 66,926
Supplies 4,200 2,735 (1,465) 5,191
Other services and charges 12,325 8,316 (4,009) 3,699
Capital outlay 813 813
Assessing -
Personal services 13,105 12,984 (121) 11,681
Supplies 200 29 (171) 86
Other services and charges 400 100 (300)
Independent accountants and auditors 6,000 7,237 1,237 6,880
Planning and zoning 25,945 35,466 9,521 47,125
Legal fees and expenses 29,800 28,520 (1,280) 28,828
Consulting fees on terminated sewer project 59,148 59,148
Charter commission -
Supplies 483 483
Other services and charges 697 697
General government buildings -
Personal services 5,750 4,943 (807) 6,829
Supplies 1,500 1,260 (240) 2,951
Other services and charges 11,750 12,431 681 14,559
Capital outlay 1,600 1,498 (102) 2,303
Total General Government 193,985 261,757 67,772 208,429
Public safety -
Police -
Personal services 200,244 189,100 (11,144) 163,464
Supplies 25,950 32,115 6,165 25,566
Other services and charges 9,110 10,078 968 5,900
Capital outlay 10,000 9,973 (27) 569
Fire protection -
Personal services 125 200 75 125
Contracted services 24,500 32,140 7,640 22,594
Other services and charges 123 123
Protective inspection -
Personal services 29,825 29,701 (124) 26,144
Other services and charges 8,380 7,592 (788) 14,206
Capital outlay 25 853 828 397
- 21 -
- Continued -
CITY OF LINO LAKES
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - Continued
Years Ended December 31, 1981 and 1980
1981 1980
Over
(Under)
Budget Actual Budget Actual
Expenditures - Continued:
Civil defense -
Personal services 535 535 549
Other services and charges 440 2,692 2,252 1,728
Capital outlay 300 300
Animal control -
Other services and charges 5,150 5,259 109 4,773
Total Public Safety 314,284 320,661 6,377 266,015
Highways and streets -
Personal services 76,496 58,171 (18,325) 71,288
Supplies 25,750 23,796 (1,954) 26,493
Other services and charges 8,650 9,275 625 3,162
Capital outlay - equipment and buildings 363 363 2,301
Streets 17,000 11,916 (5,084) 40,830
Signs 2,500 7,063 4,563 3,176
Street lighting 3,600 5,054 1,454 4,118
Total Highways and Streets 133,996 115,638 (18,358) 151,368
Parks -
Personal services 18,460 17,639 (821) 13,017
Supplies 5,150 7,024 1,874 7,307
Other services and charges 6,475 5,319 (1,156) 6,424
Capital outlay 1,332
Total Parks 30,085 29,982 (103) 28,080
Miscellaneous -
Items purchased for resale 4,262 4,262 6,861
Other 560 560 4,221
Total Miscellaneous 4,822 4,822 11,082
Total Expenditures 672,350 732,860 60,510 664,974
Excess of (Expenditures) Over
Revenue (39,657) (48,680) (9,023) (121,183)
- Continued -
- 22 -
CITY OF LINO LAKES
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE -
BUDGET AND ACTUAL - Continued
Years Ended December 31, 1981 and 1980
Other Sources (Uses):
Transfers from -
Federal Revenue Sharing Fund
Park and Playgrounds Fund
Municipal Building Bond of 1970
Improvement Bond of 1974
Improvement Bond of 1977
Improvement Bond of 1979
Improvement Bond of 1980
Transfer to 1980 Certificates of Indebtedness
Capital Projects Fund
Total Other Sources (Uses)
1981 1980
Over
(Under)
Budget Actual Budget Actual
43,122 43,000 (122) 47,198
4,600
3,700
11,000
1,300
10,000
3,633
43,122
(1,048)
41,952
(1,048)
(1,170)
81,431
EXCESS OF REVENUE (EXPENDITURES)
AND OTHER SOURCES (USES) $ 3,465 $ (6,728) $(10,193) $(39,752)
Fund balance - beginning of year
Transfer of assets to Water and Sewer Fund
Residual equity transfer from Improvement
Bond of 1974
Fund Balance - End of Year
22,835
73,426
82,045
(19,458)
$ 89,533 $ 22,835
CITY OF LINO LAKES
SPECIAL REVENUE FUNDS
COMBINING BALANCE SHEET
As of December 31, 1981 and 1980 1
1981 1980 I/
Parks and Revenue
Playgrounds Sharing
Fund Fund Total Total
I/
ASSETS
Cash and temporary investments $ 90,159 $16,215 $106,374 $111,985
II
Accounts receivable 15,901 15,901
Accrued interest receivable 490 181 671 613
II
Due from governmental units 11,614 11,614 11,038
Total Assets $ 106,550 $28,010 $134,560 $123,636 II
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 7 $ 7 $ 24
Fund Balance:
Unreserved -
Designated for park improvements 106,543 106,543 102,109
Undesignated $28,010 28,010 21,503
Total Fund Balance 106,543 28,010 134,553 123,612
Total Liabilities and Fund Balance $ 106,550 $28,010 $134,560 $123,636
- 24 -
t
1
1
1
1
1
1
1
1
1
CITY OF LINO LAKES
SPECIAL REVENUE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
1 Years Ended December 31, 1981 and 1980
I/ 1981 1980
Parks and Revenue
I Playgrounds Sharing
Fund Fund Total Total
Revenue:
Federal revenue sharing $44,730 $ 44,730 $ 42,737
II i nterest earned on investments $ 12,937 4,777 17,714 12,467
Donations in lieu of park land 21,176 21,176 44,300
Donations 3,000 3,000
IITotal Revenue 37,113 49,507 86,620 99,504
I Expenditures:
Capital outlay 31,604 31,604 4,201
Refunds and reimbursements 375 375 4,950
Consultants 700 700 240
I Other 23
Total Expenditures 32,679 32,679 9,414
IIExcess of Revenue (Expenditures) 4,434 49,507 53,941 90,090
Other Financing Sources (Uses):
Transfers to General Fund (43,000) (43,000) (51,798)
IEXCESS OF REVENUE (EXPENDITURES) AND
OTHER FINANCING SOURCES (USES) $ 4,434 $ 6,507 $ 10,941 $ 38,292
iFund balance - beginning of year 102,109 21,503 123,612 85,320
Fund Balance - End of Year $ 106,543 $28,010 $134,553 $123,612
1
1
1
1
CITY OF LINO LAKES
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
As of December 31, 1981 and 1980
1981 1980
1980
Municipal Building Certificates
Bonds of 1970 of Indebtedness Total Total
ASSETS
Cash and temporary investments $ 20,632
Accrued interest receivable 61
Taxes receivable - delinquent 1,626
Due from other governmental units 1,690
Total Assets $ 24,009
FUND BALANCE
Unreserved:
1
1
1
1
1
1
$ (2,738) $17,894 $13,490
14 75 78 1
3,081 4,707 1,446
2,449 4,139
$ 2,806 $26,815 $15,014
Designated for Debt Service $ 24,009 $ 2,806 $26,815 $15,014
26 -
1
1
1
1
1
1
1
1
1
1
CITY OF LINO LAKES
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
Years Ended December 31, 1981 and 1980
1981 1980
Municipal 1980
Building Certificates
Bonds of 1970 of Indebtedness Total Total
Revenue:
I General property taxes -
Current and penalties $ 9,344 $ 17,773 $27,117 $22,109
Fiscal disparities 995 1,884 2,879 599
II Intergovernmental revenue -
State homestead credit 5,079 9,650 14,729 10,363
Other revenue -
Interest earned on investments 1,590 366 1,956 1,405
ITotal Revenue 17,008 29,673 46,681 34,476
Expenditures:
II Debt service -
Principal retirement 10,000 21,000 31,000 31,000
Interest 1,020 2,835 3,855 5,232
II Fiscal agent fee 25 25 25
Total Expenditures 11,045 23,835 34,880 36,257
Excess of Revenue (Expenditures) 5,963 5,838 11,801 (1,781)
IIOther Financing Sources (Uses):
Transfer to General Fund (3,700)
IIEXCESS OF REVENUE (EXPENDITURES)
AND OTHER USES $ 5,963 $ 5,838 $11,801 $(5,481)
IIFund balance - beginning of year 18,046 (3,032) 15,014 20,495
Fund Balance - End of Year $24,009 $ 2,806 $26,815 $15,014
II
CITY OF LINO LAKES
CAPITAL PROJECT FUNDS
BALANCE SHEET
As of December 31, 1981 and 1980
ASSETS
Cash and temporary investments
Accrued interest receivable
Total Assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Fund Balance:
Designated for equipment acquisition
Total Liabilities and Fund Balance
- 28 -
1981
1981
Certificates
of
Indebtedness
$ 112,640
49
$ 112,689
$ 2,709
109,980
$ 112,689
1980
1980
Certificates
of
Indebtedness
$ 5,452
$ 5,452
$ 5,452
$ 5,452
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF LINO LAKES
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
Year Ended December 31, 1981 and 1980
1981
Certificates
of
Indebtedness
Revenue:
Interest earned on investments $ 1,288
Expenditures:
Capital outlay -
Public safety - police car
Public works - truck and
snowplow equipment
Total Expenditures
2,708
2,708
Excess of Revenue (Expenditures) (1,420)
Other Financing Sources:
Certificates - issued
Transfer from General Fund
Total Other Financing Sources
111,400
111,400
EXCESS OF REVENUE (EXPENDITURES)
AND OTHER SOURCES $ 109,980
Fund balance - beginning of year
Fund Balance - End of Year $ 109,980
1981
1980
Certificates
of
Indebtedness
$ 6,500
6,500
(6,500)
1,048
1,048
1980
1980
Certificates
of
Total Indebtedness
$ 1,288
9,208
9,208
$ 8,929
48,619
57,548
(7,920) (57,548)
111,400
1,048
112,448
63,000
63,000
• $ (5,452) $104,528 $ 5,452
5,452
5,452
$ -0- $109,980 $ 5,452
CITY OF LINO LAKES
SPECIAL ASSESSMENT FUNDS
COMBINING BALANCE SHEET
As of December 31, 1981 and 1980
ASSETS
Cash and temporary investments
Accounts receivable
Special assessments receivable:
Delinquent
Deferred
Accrued interest receivable
Unamortized bond discount
Amount to be provided for debt service
Total Assets
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable
Contracts payable
Bonds payable
Total Liabilities
Fund Balance:
Reserved for improvements
Unreserved -
Designated for construction
Designated for debt service
Total Fund Balance
Total Liabilities and Fund Balance
- 30 -
Improvement
Bond of 1977
$ 23,892
668
22,717
105
$ 47,382
$ 37,920
37,920
9,462
9,462
$ 47,382
Improvement
Bond of 1979
233,338
15,688
791,010
- 811
2,828
$1,043,675
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
$ 935,000 II
935,000
36,608
72,067
108,675
$1,043,675
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1981
Improvement
Bond of 1980
26,111
232, 731
341
3,212
262,395
$ 6,700
200,000
206,700
19,485
5,832
30,378
55,695
$ 262,395
Improvement Improvement
Bond of 1981 Bond of 1982
$ 15,027
874
37,328
$ 53,229
$ 336
1,183
45,000
46, 519
6,710
6,710
$ 53,229
Total
$ (4,299) $ 294,069
183 183
16,356
1,046,458
1,257
6,914
37,328
$ (4,116) $1,402,565
$ 17,800
17,800
(21,916)
(21,916)
$ (4,116)
$ 18,136
7,883
1,217,920
1,243,939
19,485
27,234
111,907
158,626
1980
Total
$ 471,551
29,015
936,714
5,033
9,780
197,737
$1,649,830
$ 20,086
119,048
1,214,240
1,353,374
71,553
51,962
172,941
296,456
$1,402,565 $1,649,830
- 31 -
CITY OF LINO LAKES
SPECIAL ASSESSMENT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE
As of December 31, 1981 and 1980
1
1
1
Revenue:
Special assessments -
Principal levies
Interest and penalties
Other revenue -
Interest earned on investments
Interest accrued to date of bond sale
Other
Total Revenue
Expenditures:
Capital outlay -
Sanitary sewer
Water
Storm sewer
Street
Engineering
Debt service -
Interest
Fiscal agent fee
Other
Total Expenditures
Excess of Revenue (Expenditures)
Other Financing Sources (Uses):
Bonds sold
Applied to amount to be provided for
debt service
Total Other Financing Sources (Uses)
EXCESS OF REVENUE (EXPENDITURES) AND
OTHER FINANCING SOURCES (USES)
Fund balance - beginning of year
Adjustment to write off estimated uncollectible
special assessments
Residual equity transfer to General Fund
Improvement Improvement Improvement
IIBond of 1974 Bond of 1977 Bond of 1979
$ 836 $ 53,169
2,774 21,387 1
3,610 74,556 1
2,212
2,212
1,398
1
3,827 II
64,796
56
68,679
5,877
$ (1,150) $ 1,398 $ 5,877
102,514 8,064 102,798
(27,938)
(73,426)
Fund Balance - End of Year $ -0-
- 32 -
$ 9,462 $ 108,675
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1981 1980
Improvement Improvement Improvement
Bond of 1980 Bond of 1981 Bond of 1982 Total Total
$ 236,260
$ 236,260 $ 914,714
54,005 3,306
9,008 $ 32 33,201 91,177
222 222 504
$ 183 183
245,268 254 183 323,871 1,009,701
163 30,865
379
57,171
22,099
31,028 257,156
379 153,558
71,001
60,998 397,061
22,099
17,153 7 85,305 65,660
50 119 69
1,453
74,916 30,872 22,099 199,928 945,958
170,352 (30,618) (21,916) 123,943 63,743
45,000 45,000 200,000
(197,737) (7,672) (205,409) (926,956)
(197,737) 37,328 (160,409) (752,889)
$ (27,385) $ 6,710 $(21,916) $ (36,466) $ (689,146)
83, 080
296,456 985,602
(27, 938)
(73,426)
55,695 $ 6,710 $(21,916) $ 158,626 $ 296,456
- 33 -
1
CITY OF LINO LAKES
GENERAL LONG -TERM DEBT GROUP OF ACCOUNTS
BALANCE SHEET
As of December 31, 1981 and 1980 1
ASSETS
Amount available in Debt Service Fund
Amount to be provided for debt retirement
Total Assets
LIABILITIES
Contracts payable
Certificates of indebtedness
Bonds payable
1981 1980
$ 26,815 $ 15,014
119,495 52,073
$146,310 $ 67,087
$ 3,910 $ 5,087
132,400 42,000
10,000 20,000
Total Liabilities $146,310 $ 67,087
- 34 -
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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CITY OF LINO LAKES
GENERAL FIXED ASSETS GROUP OF ACCOUNTS
BALANCE SHEET
As of December 31, 1981 and 1980
(Unaudited)
1981 1980
ASSETS
Land $ 36,175 $ 36,175
Wells 6,216 6,216
Buildings and improvements 172,965 141,338
Furniture and equipment 215,362 195,865
Total Assets $430,718 $379,594
FUND EQUITY
Investment in general fixed assets $430,718 $379,594
CITY OF LINO LAKES
DEFERRED TAX LEVIES (AD VALOREM) FOR FUTURE DEBT SERVICE
OF CERTIFICATES OF INDEBTEDNESS *
As of December 31, 1981
Year Collectible
1982
1983
Total
1981 Issue
of $111,400
1980 Issue
of $63,000
$ 71,059 $ 23,538
64,772
$ 135,831 $ 23,538
* Ad valorem levies are placed at 105% of debt service requirements, as required
by Minnesota Statutes.
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1 CITY OF LINO LAKES
DEBT SERVICE REQUIREMENTS AND SOURCES OF FINANCING - DEBT SERVICE FUNDS
1 As of December 31, 1981 and 1980
II1981 1980
Sources of Financing:
1 Amount available in Debt Service Fund $ 26,815 $ 15,014
Deferred tax levies 159,369 59,865
Less: 5% allowance for uncollectibles (7,589) (2,850)
IITotal Sources of Financing 178,595 72,029
1 Debt Service Requirements:
Principal - bonds and certificates 142,400 62,000
Future interest - bonds and certificates 19,721 5,612
1 Total Debt Service Requirements 162,121 67,612
Excess of Sources of Financing Over Debt Service Requirements $ 16,474 $ 4,417
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CITY OF LINO LAKES
ASSESSED VALUATIONS, TAX LEVIES, AND MILL RATES
Year Ended December 31, 1981
Local Spread Levy:
Assessed valuations
Fiscal disparities contribution
Local Taxable Value
Spread Levy Collectible in 1981
Levy
Valuations Rate Spread
$18,293,348
(567,752)
$17,725,596 20.477 mills $362,963
Area Wide Levy:
*Fiscal disparities distribution $ 1,397,060 19.165 mills 26,774
Total Spread Levy $389,737
General revenue
Bonds and Certificates of Indebtedness
Total
*1980 Mill rate was used for area wide distribution.
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Mill Rate Levy
18.104 $344,581
2.373 45,156
20.477 $389,737
ANFINSON, HENDRICKSON & CO.
CERTIFIED PUBLIC ACCOUNTANTS
To the City Council
City of Lino Lakes
Lino Lakes, Minnesota
We have examined the financial statements of the City of Lino Lakes for the year
ended December 31, 1981, and have issued our report thereon, dated February 9,
1982. As part of our examination, we made a study and evaluation of the City's
system of internal accounting control to the extent we considered necessary to
evaluate the system as required by generally accepted auditing standards. The
purpose of our study and evaluation was to determine the nature, timing, and
extent of the auditing procedures necessary to express an opinion on the City's
financial statements. Our study and evaluation was more limited than would be
necessary to express an opinion on the system of internal accounting control
taken as a whole.
The City is responsible for establishing and maintaining a system of internal
accounting control. In fulfilling this responsibility, estimates and judgments
by management are required to assess the expected benefits and related costs of
control procedures. The objectives of a system are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition, and that transactions are executed in
accordance with management's authorization and recorded properly to permit the
preparation of financial statements in accordance with generally accepted
accounting principles.
Because of inherent limitations in any system of internal accounting control,
errors or irregularities may nevertheless occur and not be detected. Also, pro-
jection of any evaluation of the system to future periods is subject to the risk
that procedures may become inadequate because of changes in conditions or that
the degree of compliance with the procedures may deteriorate.
Our study and evaluation made for the limited purpose described in the first
paragraph would not necessarily disclose all material weaknesses in the system.
Accordingly, we do not express an opinion on the system of internal accounting
control of the City, taken as a whole. However, our study and evaluation
disclosed the following condition which we believe could result in material
errors or irregularities in the financial statements that would not necessarily
be detected within a timely period. The City has a limited number of office
personnel and, accordingly, does not have adequate internal accounting controls
in certain areas because of a lack of segregation of duties.
Park National Bank Building • 5353 Wayzata Boulevard, Suite 410 • Minneapolis, Minnesota 55416 • 612 - 545 -0421
AFFILIATED WITH NATIONAL CPA GROUP • MEMBER FIRMS IN PRINCIPAL CITIES
A good system of internal accounting control contemplates an adequate segrega-
tion of duties so that no one individual handles a transaction from its incep-
tion to its completion. While we recognize that your office staff may not be
large enough to permit an adequate segregation of duties in all respects for an
effective system of internal accounting control, it is important that you be
aware of this condition.
This condition was considered in determining the nature, timing, and extent of
the audit tests to be applied in our examination of the financial statements for
the year ended December 31, 1981, and this report does not affect our report on
those financial statements dated February 9, 1982.
This report is intended solely for the use of management and should not be used
for any other purpose.
The following lists other areas warranting Board and /or administrative
consideration.
Water and Sewer Rates
The Water and Sewer Fund reported a net loss of $5,192 for 1981. The
rates charged consumers should be sufficient to cover all operating
costs plus additional funds as needed to maintain property and plant.
The rates should be reviewed and adjusted annually as necessary.
Collateral
We noted during the course of our audit that collateral required to
secure deposits was inadequate at one of the City's depositories. We
recommend maintaining a continuous record of collateral pledged by the
depositories to insure that adequate collateral is provided in accor-
dance with Minnesota Statutes, Section 118.01.
Special Assessment Levies
Our review of special assessments placed on the tax rolls for 1981
disclosed the omission of one parcel. We contacted the County and
determined it was properly omitted for that year. The 1982
installment, however, had been omitted from the 1982 tax rolls in
error. The County added the 1982 installment to the tax rolls as a
result of our inquiry.
It is essential that great care be taken in placing assessments on the
tax rolls annually to ensure the assessment roll is correct and that
all rolls are included.
Delinquent Special Assessments and Taxes
There were approximately $44,000 of delinquent special assessments and
$44,000 of delinquent taxes receivable at year end, which represents
significant amounts due to the City.
A review of these delinquencies at the County auditor's office indi-
cated that many of these parcels were "tax forfeit."
The City should maintain an awareness of this situation in future
budgeting and planning.
We would be pleased to discuss these recommendations with you and assist with
any changes you may wish to make. We also thank you for the assistance and
courtesy extended to us during this examination.
Yours very truly,
Certified Public Accountants
Minneapolis, Minnesota
February 9, 1982