HomeMy WebLinkAboutAnnual Financial Report 12/31/1985CITY OF LINO LAKES, MINNESOTA
ANNUAL FINANCIAL REPORT
DECEMBER 31, 1985
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Organization
Auditor's Report
General Purpose Financial Statements
Condensed Combined Balance Sheet - All Fund Types and
Account Groups Statement 1
Condensed Combined Statement of Revenue, Expenditures and
Changes in Fund Balance - All Governmental Fund Types Statement 2
Condensed Combined Statement of Revenue, Expenditures and
Changes in Fund Balance - Budget and Actual - General
and Special Revenue Funds
Condensed Combined Statement of Revenue, Expenses and Changes
in Retained Earnings - Proprietary Fund Type
Condensed Combined Statement of Changes in Financial Position -
Proprietary Fund Type
Notes to Financial Statements
Statement 3
Statement 4
Statement 5
Combining and Individual Fund and Account Group Financial Statements
General Fund: -
Balance Sheet
Statement of Revenue, Expenditures and
Changes in Fund Balance - Budget and Actual
Special Revenue Fund:
Revenue Sharing Fund:
Balance Sheet
Statement of Revenue, Expenditures and
Changes in Fund Balance - Budget and Actual
Debt Service Fund:
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance
Capital Project Funds:
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance
Statement 6
Statement 7
Statement 8
Statement 9
Statement 10
Statement 11
Statement 12
Statement 13
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Special Assessment Funds:
Combining Balance Sheet
Combining Statement of Revenue, Expenditures and
Changes in Fund Balance
Enterprise Fund:
Balance Sheet
Statement of Revenue, Expenses and Changes in Retained Earnings
Statement of Changes in Financial Position
Agency Funds:
Combining Statement of Changes in Assets and Liabilities
Statement of General Fixed Assets
Statement of General Long -Term Debt
Supplementary Financial Information
Combined Schedule of Indebtedness
Deferred Tax Levies
Debt Service Payments to Maturity
Construction Work in Process
Insurance in Force
Assessed Valuations, Tax Levies, and Mill Rates
Statement 14
Statement 15
Statement 16
Statement 17
Statement 18
Statement 19
Statement 20
Statement 21
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
CITY OF LINO LAKES, MINNESOTA
ORGANIZATION
December 31, 1985
City Council and Other Officials
City Council:
Mayor:
Benjamin G. Benson
Council Members:
Richard Kulaszewicz
William I. Bohjanen
Donald R. Marier
Vernon F. Reinert
City Administrator:
Term of Office
From To
1/01/84 12/31/85
1/01/82 12/31/85
1/01/84 12/31/87
1/01/84 12/31/87
1/01/82 12/31/85
Randall Schumacher Appointed
Clerk- Treasurer:
Marilyn Anderson Appointed
VOTO, REARDON, TAUTGES & CO., LTD.
CERTIFIED PUBLIC ACCOUNTANTS
Birch Lake Professional Building • 1310 E. Hwy. 96 • White Bear Lake, MN 55110 • Phone 426 -3263
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes
Lino Lakes, Minnesota
ROBERT J. VOTO, CPA
TIMOTHY E. REARDON, CPA
ROBERT G. TAUTGES, CPA
We have examined the general purpose financial statements of the CITY OF LINO
LAKES, MINNESOTA, and the combining, individual fund, and account group financial
statements of the City as of and for the year ended December 31, 1985, as listed
in the table of contents. Our examination 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, except as stated in the following paragraph.
The City does not maintain complete accounting controls over quantities and
costs of general fixed assets. Therefore, we were not able to obtain sufficient
evidential matter to form an opinion regarding the amounts at which property,
plant and equipment are recorded in the General Fixed Assets Group of accounts
at December 31, 1985 or 1984 (stated at $1,057,862 and $728,017 respectively).
Accordingly, we do not express an opinion on this account group.
In our opinion, except for the effects of such adjustments, if any, as might
have been determined to be necessary had we been able to obtain sufficient
evidential matter regarding the City's General Fixed Asset account group, the
general purpose financial statements referred to above present fairly the
financial position of the CITY OF LINO LAKES, MINNESOTA at December 31, 1985,
and the results of its operations and changes in financial position of its
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. Also, in our opinion, except for the effects of such adjustments,
if any, as might have been determined to be necessary had we been able to obtain
sufficient evidential matter regarding the City's General Fixed Asset account
group, the combining, individual fund, and account group financial statements
referred to above present fairly the financial position of the individual funds
and account groups of the CITY OF LINO LAKES, MINNESOTA at December 31, 1985 and
the results of operations of such funds, in conformity with generally accepted
accounting principles applied on a basis consistent with that of the preceding
year.
MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION
MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
MUNICIPAL FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS
City of Lino Lakes
Page 2
Our examination was made for the purpose of forming an opinion on the combined
financial statements taken as a whole and on the combining, individual fund, and
account group financial statements. The accompanying Supplementary Financial
Information section as listed in the Table of Contents is presented for the
purpose of additional analysis and is not a required part of the combined
financial statements of the City. The information has been subjected to the
audit procedures applied in the examination of the combined, combining,
individual fund, and account groups financial statements and, in our opinion, is
fairly stated in all material respects in relation to the combined financial
statements taken as a whole.
February 3, 1986
/44444Q4144/r- A 6:
VOTO, REARDON, TAUTGES & CO., LTD.
Certified Public Accountants
CITY OF LINO LAKES, MINNESOTA
CONDENSED COMBINED BALANCE SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
December 31, 1985
Assets
Cash (overdraft) and investments
Accrued interest - investments
Accounts receivable
Due from other governmental units
Taxes receivable
Due from County
Special assessments receivable
Allowances and deferments
Prepaid expenses
Inventory
Property, plant, and equipment net
of accumulated depreciation
Amount available - Debt Service Fund
Amount to be provided
Governmental Fund Types
Special Debt Capital
General Revenue Service Project
$ 383,291 $ 1,208 $. 292 $212,181
3,057 5,060
16,797 11,022 10,037
94,400 4,747
7,009 80
(94,400) (4,747)
47,624
Total assets $ 457,778 $ 12,230 $ 292 $227,358
Liabilities and Fund Equity
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Assessments payable on City property
Deposits
Due to other governments
Bonds payable
Deferred revenue
Total liabilities
$ 10,282
1,574
2,915
14,708
$ 842
29,813
29,479 $ -0- $ -0- 30,655
Fund Equity:
Investment in general fixed assets
Contributions - net
Retained earnings
Fund balance:
Reserved 292
Unreserved:
Designated 77,624 12,230 196,703
Undesignated 350,675
Total fund equity 428,299 12,230 292 196,703
Total liabilities and fund equity $ 457,778 $ 12,230 $ 292 .$227,358
Special
Assessments
$ 2,038,778
857
5,480
892,566
(857)
1,643,029
$ 4,579,853
$ 11,696
1,206
24,403
2,694,140
2,731,445
313,427
1,534,981
1,848,408
$ 4,579,853
CITY OF LINO LAKES, MINNESOTA
Proprietary
Fund Type
Enterprise
$ (10,094)
14,611
9,203
1,755
600
867,463
$ 883,538
$ 340
62
3,325
706
4,433
863,489
15,616
879,1 05
$ 883,538
Fiduciary
Fund Types
Agency
Funds
$(20,513)
17,247
4,652
$ 1,386
$ 52
1,334
1,386
Account Groups
General General
Fixed Long -Term
Assets Debt
(Unaudited)
$1,057,862
$ 292
238,567
$1,057,862 $ 238,859
$ 1,539
129,820
107,500
$ -0- 238,859
1,057,862
-0- 1,057,862 -0-
1,386
$1,057,862 $ 238,859
Statement 1
Totals
(Memorandum Only)
December 31,
1985 1984
•$2,605,143
17,247
27,380
47,059
100,004
12,569
892,566
(100,004)
49,379
600
1,925,325
292
1,881,596
$ 541,791
4,316
27,182
86,991
86,141
22,311
923,256
(86,141)
22,565
719
1,599,954
135,039
$7,459,156 $3,364,124
$ 23,212
1,636
2,745
129,820
7,574
39,817
2,801,640
29,813
3,036,257
1,057,862
863,489
15,616
313,719
1,821,538
350,675
4,422,899
$ 19,384
18,936
129,820
11,432
39,632
958, 960
33,090
1,211,254
728,017
867,718
7,285
307,276
116,421
126,153
2,152,870
$7,459,156 $3,364,124
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
CONDENSED COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
For The Year Ended December 31, 1985
Revenue:
General property taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Court fines
Interest on investments
Donations and park dedication fees
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Highways and streets
Parks
Construction /acquisition
Debt service:
Principal retirement
Interest and fiscal charges
Total current
Capital outlay:
General government
Public safety
Highways and streets
Parks
Total capital outlay
Total expenditures
Revenue over (under) expenditures
General
$ 550,302
110,343
455,467
98,1 79
68,492
6,148
49,009
1,337,940
305,418
429,545
287,822
64,261
Special
Revenue
41,693
1,208
42,901
1,087,046 -0-
39,831
12,631
6,337
290
59,089 -0-
1,146,135 -0-
191,805 42,901
Other increases (decreases):
Bond proceeds
Increase (decrease) in amount to be provided for
debt service
Transfers from other funds 42,844
Transfers to other funds (49,943) (42,844)
Proceed from closing mortgage revenue fund 670
Total other increases (decreases) (6,429) (42,844)
Net increase in fund balance 185,376 57
Fund balance - January 1 242,923 12,173
Fund balance - December 31 $ 428,299 $ 12,230
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CITY OF LINO LAKES, MINNESOTA
Statement 2
Totals (Memorandum Only)
Debt Capital Special December 31,
Service Project Assessment 1985 1984
$ 2,436 $ 440 $ 553,178 $ 516,445
88,544 88,544 103,533
110,343 91,332
63,131 560,291 543,783
98,179 75,254
68,492 26,784
8,161 37,984 53,501 45,284
20,389 20,389 7,996
49,009 11,791
$ -0- 94,117 126,968 1,601,926 1,422,202
10,510 315,928 379,204
429,545 382,907
287,822 279,375
5,417 69,678 147,431
102,511 102,511 54,236
79,479 79,479 83,860
- 0- 15,927 - 181,990 1,284,963 1,327,013
42,073 81,904 10,646
12,631 24,297
7,725 14,062 1,582
8,321 8,611 4,362
-0- 58,119 -0- 117,208 40,887
- 0- 74,046 181,990 1,402,171 1,367,900
- 0- 20,071 (55,022) 199,755 54,302
292 107,500 1,835,976 1,943,768 35,000
(208,111) (208,111) (33,860)
49,943 92,787 47,972
(92,787) (47,972)
670
292 157,443 1,627,865 1,736,327 1,140
292 177,514 1,572,843 1,936,082 55,442
-0- 19,189 275,565 549,850 494,408
$ 292 $ 196,703 $1,848,408 $ 2,485,932 $ 549,850
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
CONDENSED COMBINED STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS
For The Year Ended December 31, 1985
General
Over
(Under)
Budget Actual Budget
Revenue:
General property taxes $ 548,471 $ 550,302 $ 1,831
Licenses and permits 90,800 110,343 19,543
Intergovernmental 449,837 455,467 5,630
Charges for services 46,800 98,179 51,379
Court fines 24,000 68,492 44,492
Interest on investments 6,148 6,148
Miscellaneous 16,567 49,009 32,442
Total revenue 1,176,475 1,337,940 161,465
Expenditures:
Current:
General government
Public safety
Highways and streets
Parks
Miscellaneous
Total current
Capital outlay:
General government
Public safety
Highways and streets
Parks
Total capital outlay
Total expenditures
320,130
442,355
340,490
58,865
1,161,840
290,098 (30,032)
429,545 (12,810)
287,822 (52,668)
64,261 5,396
15,320 15,320
1,087,046 (74,794)
34,760 39,831 5,071
16,740 - 12,631 (4,109)
1,000 6,337 5,337
8,000 290 (7,710)
60,500 59,089 (1,411)
1,222,340 1,146,135 (76,205)
Revenue over (under) expenditures (45,865)
Other increases (decreases):
Transfers from other funds
Transfers to other funds
Proceeds from closing mortgage revenue fund
Total other increases (decreases)
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
41,760
(50,000)
(8,240)
$ (54,105)
191,805 237,670
42, 844
(49,943)
670
(6,429)
185,376
242, 923
$ 428,299
1,084
57
670
1,811
$ 239,481
CITY OF LINO LAKES, MINNESOTA
Special Revenue
Budget
Actual
Over
(Under)
Budget
Statement 3
Totals (Memorandum Only)
1985
Budget
$ 548,471
90,800
$ 41,760 $ 41,693 $ (67) 491,597
46,800
24,000
1,208 1,208
16,567
41,760 42,901 1,141 1,218,235
-0-
-0-
-0-
41,760
(41,760)
(41,760)
$ -0-
-0-
-0-
-0- -0-
-0- -0-
42,901 1,141
(42,844) (1,084)
(42,844) (1,084)
320,1 30
442,355
340,490
58,865
1,161,840
34, 760
16,740
1,000
8,000
60,500
1,222,340
(4,105)
41,760
(91,760)
(50,000)
57 $ 57 $ (54,105)
12,173
12,230
Actual
$ 550,302
110,343
497,160
98,179
68,492
7,356
49,009
1,380,841
290,098
429,545
287,822
64,261
15,320
1,087,046
39,831
12,631
6,337
290
59,089
1,146,135
234,706
42,844
(92,787)
670
(49,273)
Over
(Under)
Budget
$ 1,831
19,543
5,563
51,379
44,492
7,356
32,442
162,606
(30,032)
(12,810)
(52,668)
5, 396
15,320
(74,794)
5,071
(4,109)
5,337
(7,710)
(1,411)
(76,205)
238,811
1,084
(1,027)
670
727
185,433 $ 239,538
255,096
$ 440,529
1984
Actual
$ 510,245
91,332
439, 354
75, 254
26, 784
3,607
11,791
1,158,367
259, 556
382, 907
279,375
49, 744
10,050
981,632
10,646
13,751
1,582
896
26,875
1,008,507
149,860
(37,648)
(37,648)
112,212
142,884
$ 255,096
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
CONDENSED COMBINED STATEMENT OF REVENUE, EXPENSES AND
CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND TYPE
For The Year Ended December 31, 1985
Operating revenue:
Water sales
Sewer charges
Other operating revenue
Total operating revenue
Statement 4
December 31,
1985 1984
$ 7,640
39,084
4,428
51,152
$ 6,011
36,417
2,909
45,337
Operating expenses:
Personal services 12,438 14,831
Supplies 2,516 2,845
Contractual services 833 777
Repair and maintenance 3,061 4,088
MWCC sewer charges 25,954 23,866
Depreciation:
Purchased assets 984 838
Contributed assets 22,530 , 21,004
Utilities 2,204 2,208
Sewer service charge 2,843 2,289
Other 293 375
Total operating expenses 73,656 73,121
Operating income (loss)
(22,504) (27,784)
Non - operating revenue:
Maintenance agreement - MWCC 8,305 7,138
Total non - operating revenue 8,305 7,138
Net income (loss)
Other increases:
Credit arising from transfer of depreciation to
contributions from property owners
Net income to retained earnings
Retained earnings - January 1
Retained earnings - December 31
(14,199) (20,646)
22,530 21,004
8,331 358
7,285 6,927
$ 15,616 $ 7,285
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 5
CONDENSED COMBINED STATEMENT OF CHANGES IN FINANCIAL POSITION -
PROPRIETARY FUND TYPE
For The Year Ended December 31, 1985
December 31,
1985 1984
Sources of working capital:
Operations:
Net operating loss $ (14,199) $ (20,646)
Add: Items not requiring a current outlay
of working capital:
Depreciation 23,514 21,842
Total working capital provided by operations 9,315 1,196
Contributed equity from other funds
Total sources of working capital 9,315 1,196
Uses of working capital:
Additions to property and equipment 739
Total uses of working capital 739 -0-
Net increase in working capital
$ 8,576 $ 1,196
Components of increase in working capital:
Cash (overdraft) $ 5,259 $ (4,546)
Accounts receivable 297 2,075
Due from County (119) 119
Due from other governmental units 3,353 1,174
Due to other governmental units (666) 3,257
Prepaid expenses 960 37
Inventory (119) 149
Accounts payable 338 (649)
Salaries payable (62)
Customer deposits (665) (420)
Net increase in working capital
$ 8,576 $ 1,196
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the CITY OF LINO LAKES, MINNESOTA conform to
generally accepted accounting principles as applicable to governmental units.
FINANCIAL REPORTING ENTITY
The City has implemented National Council on Governmental Accounting Statement
No. 3, Defining the Governmental Reporting Entity. In accordance with
Statement No. 3, for financial reporting purposes the City's financial state-
ments include all funds, account groups, boards and commissions over which the
City Council exercises oversight responsibility.
Oversight responsibility includes appointment of governing bodies, budget
authority, approval of tax levies, and responsibility for funding deficits.
There are no additional units of government which meet the criteria of NCGA #3
for inclusion in the Annual Financial Report of the City of Lino Lakes,
Minnesota.
The following organizations are not included from the accompanying financial
statements:
Lino Lakes Gas Utility Franchise - This franchise is a part of the Circle
Pines Gas Utility System. The City of Circle Pines presently appoints all
members of the Gas Utility Commission. In addition, the City of Circle
Pines has control over the assets and operations of the Lino Lakes Gas
Utility Franchise.
Lino Lakes Senior Council - The Senior Council utilizes a center funded by
the City and a Community Development Block Grant through Anoka County. The
Senior Council has authority over the activities it finances as well as
responsibility for fiscal matters.
There are no additional units of government which meet the criteria of NCGA #3
for inclusion in the Annual Financial Report of the City of Lino Lakes,
Minnesota.
FUNDS AND ACCOUNT GROUPS
The accounting system of the City is organized and operated on a fund basis.
A fund is defined as a fiscal and accounting entity with a self - balancing set
of accounts recording cash and other financial resources, together with all
related liabilities and residual equities or balances, and changes therein,
which are segregated for the purpose of carrying on specific activities or
attaining certain objectives in accordance with special regulations,
restrictions, or limitations.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The following types of funds and account groups are employed by the City:
GOVERNMENTAL FUNDS
The General Fund - to account for all financial resources except those required
to be accounted for in another fund.
Special Revenue Funds - to account for the proceeds of specific revenue sources
(other than special assessments, expendable trusts, or for major capital
projects) that are legally restricted to expenditure for specified purposes.
Debt Service Funds - to account for the accumulation of resources for, and the
payment of, general long -term debt principal, interest, and related costs.
Capital Project Funds - to account for financial resources to be used for the
acquisition or construction of major capital facilities (other than those
financed by Proprietary Funds, Special Assessment Funds, and Trust Funds).
Special Assessment Funds - 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 - to account for operations: (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 determination of revenues earned,
expenses incurred, and /or net income is appropriate for capital maintenance,
public policy, management control, accountability, or other purposes.
FIDUCIARY FUNDS
Trust and Agency Funds - to account for assets held by a governmental unit as
an agent for individuals, private organizations, other governmental units
and /or other funds.
ACCOUNT GROUPS
The governmental fund types 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 - The City maintains a separate group of accounts which
contain the fixed assets used in the governmental fund type operations. They
are assets of the City as a whole and not of individual funds.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
General Long -Term Debt - This account group contains the long -term obligations
of the City including certificates of indebtedness, contracts payable and com-
pensated absences payable. It does not include the long -term liabilities of
Special Assessment Funds which are accounted for in those funds.
BASIS OF ACCOUNTING
The modified accrual basis of accounting is followed by the City for its
governmental funds (General, Special Revenue, Debt Service, Capital Project,
and Special Assessment) and Agency and Expendable Trust Funds. Under this
method of accounting, revenues are recognized when they become susceptible to
accrual - that is, when they become both measurable and available to finance
expenditures of the fiscal period. Also, under this method, expenditures are
recognized in the accounting period when the liability is incurred, except for:
• Interest on long -term debt which is recognized when due, except for
January 1 maturities which are recognized in the previous fiscal
period.
• Disbursements for inventory type items and prepaid expenses which are
considered expenditures at the time of purchase.
Major revenue sources susceptible to accrual include property taxes, special
assessments, intergovernmental revenues, charges for services and interest on
investments.
Interest on special assessments is recognized as revenue when due.
Major revenue sources not susceptible to accrual includes licenses and permits,
fees, and miscellaneous revenues. Such revenues are recorded as revenue when
received because they are not measurable until collected.
The accrual basis of accounting is followed for the proprietary and
nonexpendable trust funds. Under this method of accounting, revenues are
recognized during the accounting period in which they are earned and become
measurable and expenses are recognized in the accounting period in which
they are incurred, if measurable.
BUDGETARY DATA
The City Council adopts an annual budget for the General Fund and
Special Revenue Fund. During the budget year supplemental appropriations
and deletions are or may be authorized by the City Council. The amounts
shown in the financial statements as "Budget" represent the original
budgeted amounts plus all revisions made during the year and /or for the
year. Budgets have been prepared on the basis of cash receipts and
disbursements. The variance of this basis to the modified accrual basis is
not material to the budget accounts taken as a whole.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City monitors budget performance on the departmental basis. Any amounts
over budget have been approved by the City Council through the disbursement
approval process. Charter provisions prohibit the City from exceeding the
overall General Fund Expenditures budget unless the original budget is formally
amended.
Encumbrance accounting, under which purchase orders, contracts, and other com-
mitments for the expenditure of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the City because it
is at present considered not necessary to assure effective budgetary control or
to facilitate effective cash planning and control.
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS
ASSETS
CASH AND INVESTMENTS
Cash balances' from all funds are pooled and invested to the extent available in
authorized investments. Earnings from investments are allocated to individual
funds on the basis of the fund's available cash balance.
Investments are stated at cost (plus interest added, if any) which approximates
market value. Material purchase discounts and premiums are amortized over the
term of the investment. Interest earnings are accrued at the balance sheet
date.
Cash and investment balances were as follows at December 31, 1985 and 1984:
December 31,
1985 1984
Cash (overdraft) - checking $ 5,792 $ (23,450)
Petty cash 150 150
Investments 2,599,201 565,091
Totals $2,605,143 $ 541,791
GRANT REVENUE RECOGNITION
The City receives various Federal, State and other grants, the purpose of which
is to fund specific City expenditures. These revenues are recognized at the
time of the specific expenditures.
The City also receives Federal Revenue Sharing and other general purpose
grants. These grants are recognized as revenues in the period to which the
grant applies.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
MUNICIPAL STATE AID ALLOTMENTS FOR STREET CONSTRUCTION
Municipal State Aid (MSA) is recognized as revenue in the period the funds are
designated for specific construction projects.
LOCAL GOVERNMENT AID REVENUE RECOGNITION
Local government aid is provided by the State. This aid is provided as a
shared tax based upon a statutory formula and without restrictions. Payment
from the State is generally received during each calendar year. The City
recognizes local government aid revenue when it becomes both measurable and
available to finance current operations. In practice, local government aid is
recognized as revenue as it is received in cash.
PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County for
collection. The County is responsible for billing and collecting all property
taxes for itself, the City, the local School District and other taxing
authorities. These taxes are payable by May 15 and October 15 of each calendar
year by the property owners. These taxes are collected by the County and
remitted to the City by approximately July 15 and December 15. Additionally,
delinquent collections (November through February) are remitted to the City
each April. The City has no ability to enforce payment of property taxes by
property owners. The County possesses this authority. Pursuant to State
Statutes, a property shall be subject to a tax forfeit sale after 3 years
unless it is homesteaded, agricultural, or seasonal recreational land (as
defined in state statutes) in which event the property is subject to such sale
after 5 years.
The City recognizes property tax revenue when it becomes both measurable and
available to finance expenditures of the current period. In practice, current
and delinquent taxes and homestead credits received by the City are recognized
as revenue for the current year. Additionally, taxes collected by the County
by December 31 (remitted to the City the following April) and credits not
received at the normal time are recognized as revenue for the current year.
Homestead credits received by the City from the State are recognized as revenue"
when received in cash.
Unpaid delinquent taxes are generally measurable but not available to finance
the expenditures of the current year. Accordingly, these taxes are not
recognized as revenue until they are collected by the County. Unpaid
delinquent property taxes are reflected in the balance sheets at December 31
subject to a 100% allowance for doubtful accounts and deferred revenue. This
accounting practice is at nominal variance with generally accepted accounting
principles in that the deferred income position (i.e., that part of delinquent
taxes expected to be collected over the next several years) technically should
be shown separately as a liability. However, this variance is immaterial and
the cost of determining this measurement and reclassification does or could
exceed the benefit. Additionally, this variance has no effect upon the
operating statements of the City.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
Taxes on homestead property (as defined by State Statutes) are partially
reduced by a homestead credit. This credit is paid to the City by the State in
lieu of taxes levied against homestead property. The State remits this credit
in installments during each year.
The City's property tax revenue includes payments from the Metropolitan Revenue
Distribution (Fiscal Disparities Formula) per State Statute 473F. This statute
provides a means of spreading a portion of the taxable valuation of commercial/
industrial real property to various taxing authorities within the defined
Metropolitan area. The valuation "shared" is a portion of commercial/
industrial property valuation growth since 1971. Property taxes paid to the
City of Lino Lakes through this formula for 1985 and 1984 totaled $117,179 and
$78,012 respectively. Receipt of property taxes from this "fiscal disparities
pool" does not increase or decrease total tax revenue.
SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefiting properties for the cost or a
portion of the cost of special assessment improvement projects in accordance
with State Statutes. Usually, the City adopts the assessment roll when the
individual project is completed or substantially completed. The City certifies
the adopted assessment roll to the County for collection. Collection of annual
installments including interest, is handled by the County in the same manner as
for property taxes. Assessments are collectible over a term of years, generally
consistent with the term of years of the related bond issue. Property owners
are allowed to and often do, prepay future installments without interest or
prepayment penalty.
The City recognizes special assessment revenue when it becomes both measurable
and available to finance bonded debt. In practice, special assessment
principal is recognized as revenue in the year when the assessment roll is
adopted by the City Council and it is available to finance the related bond
issue principal. Special assessment interest is recognized as revenue in the
year due, which generally corresponds to the period it is actually earned.
Once a special assessment roll is adopted, the amount attributed to each parcel
becomes a lien upon that property until full payment is made or the amount is
determined to be excessive by the City Council or court action. If special
assessments become delinquent, the property is subject to tax- forfeit sale.
The first proceeds of that sale (after costs, penalties and expenses of sale)
are remitted to the City in payment of delinquent special assessments.
Generally, the City will collect the full amount of its special assessments not
adjusted by City Council or court action. Accordingly, no allowance for poten-
tially uncollectible assessments has been provided. Pursuant to State
Statutes, a property shall be subject to a tax forfeit sale after 3 years
unless it is homesteaded, agricultural, or seasonal recreational land (as
defined in State Statutes) in which event the property is subject to such sale
after 5 years.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
PARK DEDICATION FEE REVENUE RECOGNITION
The City receives park dedication fees from developers. The amount due the
City is collectible when the developer's land is platted. The City has granted
a delay in the collection from several property owners pending development of
the platted property. The amount not collected at the normal time of receipt
has been presented as deferred revenue. The amount of unrecognized park dedi-
cation fees due the City upon application for building permits was $5,060 and
$6,820 at December 31, 1985 and 1984 respectively.
INVENTORIES
The inventory of the Proprietary Fund is stated at the lower of cost or market
on the first in, first out basis.
FIXED ASSETS
FIXED ASSETS - GENERAL
General fixed assets are recorded as expenditures of the governmental funds at
the time of purchase. Such assets are valued at cost or estimated replacement
value as of December 31, 1975. Additions since 1975 are stated at cost. These
assets are capitalized in the general fixed assets group of accounts except for
certain improvements (roads, bridges, curbs, gutters, streets, sidewalks,
drainage system and lighting systems) which are not capitalized. Gifts or
contributions are recorded in general fixed assets at fair market value at the
time received. No depreciation has been provided on general fixed assets.
A summary of changes in General Fixed Assets is as follows:
Land
Wells
Buildings & improvements
Equipment
Balance
1/1/85 Additions
$ 160,151
6,216
182,228
379,422
$ 19,478
333,935
44,432
Deletions
$ 28,000
40,000
Balance
12/31/85
$ 151,629
6,216
516,163
383,854-
Totals $ 728,017 $ 397,845 $ 68,000 $1,057,862
The City does not maintain detailed records nor accounting controls over
general fixed assets. The amounts presented in the Statement of General Fixed
Assets represent amounts accumulated from historical financial reports only,
without regard to physical inventories or listings.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
FIXED ASSETS - PROPRIETARY FUNDS
Fixed assets of the proprietary funds (Water and Sewer) are stated at cost,
estimated cost, or in the case of contributions, at fair market value at the
time received. Depreciation has been provided using the straight -line method
over the estimated useful lives of assets, as follows:
Assets
Purchased assets:
Water and sewer
Depreciable Lives
5 -25 years
Contributed assets:
Water and sewer 20 -50 years
Totals
Depreciation
1985 1984
$ 984 $ 838
22,530 21,004
$ 23,514 $ 21,842
Fixed assets of the water and sewer utility operations include the water
distribution system and sewage collection system. These systems have been
wholly (or substantially) financed by non - operating funds (special assessments,
general taxes, Federal and State grants, and other sources) and contributed to
the sewer and water operating funds. City policy is to finance these assets by
the sources indicated rather than by user charges. Accordingly, the water and
sewer user rates are not established at levels sufficient to cover depreciation
on these assets.
Depreciation on these assets is shown in the operating statements; however, the
depreciation is eventually transferred against the contribution account rather
than retained earnings in accordance with generally accepted accounting prin-
ciples. Consequently, the contribution account reflects the net book value of
contributed assets rather than the original cost of such assets.
A summary of proprietary fund assets at December 31, 1985 is as follows:
Well
Buildings
Machinery
Water and
$ 18,500
and structures 48,690
and equipment 15,561
sewer lines 973,802
Total 1,056,553
Less: Accumulated depreciation (189,090)
Net fixed assets
$ 867,463
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
AMOUNT TO BE PROVIDED
The City's policy relating to Special Assessment Debt Service Funds is such
that they may not reflect a fund deficit. For any Special Assessment Debt
Service Fund which would reflect a deficit, an "amount to be provided" has been
recorded. The "amount to be provided" is each fund's supplemental financing
requirement.
CITY INDEBTEDNESS
The following is a schedule of long -term debt transactions of the City for the
year ended December 31, 1985.
Principal payable at
January 1
Additions:
1985 Certificates of
Indebtedness
1985 G.O. Temporary
Improvement Bonds
Principal retirements
Assessments
Payable on
City Contract General Special
Property Payable Obligation Assessment Total
$ 129,820 $ 4,079 $ 958,960 $1,092,859
2,540
$ 107,500
1,850,000
114,820
107,500
1,850,000
117,360
Principal payable at
December 31 $ 129,820 $ 1,539 $ 107,500 $2,694,140 $2,932,999
The assessments payable on City property includes principal due in prior years
which the City has not yet established collection terms.
All bond issues outstanding at December 31, 1985 are backed by the full faith
and credit of the City, including special assessment bond issues. Outstanding
balance at December 31, 1985, principal and interest payments due in 1985,
final due date, interest rates, and other pertinent data are presented in the
Combined Schedule of Indebtedness (Exhibit 1). Principal and interest
payments through maturity is presented in Exhibit 3.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
CITY INDEBTEDNESS (Continued)
The annual requirement to amortize all bonded debt outstanding at December 31,
1985 including interest payments of $664,749 are as follows:
Assessments
Payable on
Year Ending City
December 31, Property
1986 $ 21,061
1987 19,646
1988 18,232
1989 16,835
1990 15,403
1991 -1994 13,988
Total $ 105,165
Contracts
Payable
$ 1,631
General
Obligation
Bonds
$ 41,994
39,806
40,031
1,631 $ 121,831
Special
Assessment
Bonds
$ 307,669
316,239
2,153,942
173,577
166,496
194,821
Total
$ 372,355
375,691
2,212,205
190,412
181,899
208,809
$ 3,312,744 $ 3,541,371
The assessments payable on City property over the next several years does not
include portions still outstanding from prior years totaling $102,401. The
City intends to eliminate these assessments through the sale of the property in
1986.
The amount to be provided in the General Long -Term Debt Group of Accounts
represents future tax levies and MSA grants for the retirement of bonds_
payable. Total deferred tax levies to retire general long -term debt bonds are
$126,000.
The amount to be provided in the special assessment funds will be derived from
assessments to be levied annually against the benefited properties and future
tax levies as scheduled to provide funds for debt retirement. Total deferred
tax levies to retire special assessment bonds are $191,260 at December 31,
1985.
All bond issues outstanding at December 31, 1985 are backed by the full faith "
and credit of the City.
Outstanding balances at December 31, 1985, principal payments due in 1986,
future interest to maturity, final due date, interest rates, and other per-
tinent data are presented in the Combined Schedule of Indebtedness and /or the
Schedules of Debt Service Payments to Maturity - Exhibits 1 and 3.
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
CITY INDEBTEDNESS (Continued)
The payment of City bonds is made through various agents (banking institutions)
Cash is paid to the paying agents and they in turn pay principal and interest
to the various bond holders. Cash on hand with the paying agent is not
included in these financial statements.
LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for
bonded indebtedness payable principally from property taxes. The City of Lino
Lakes legal debt margin for 1985 and 1984 is computed as follows:
December 31,
1985 1984
Assessed value (after fiscal disparities) $26,421,368 $24,875,071
Debt limit (7 -1/3% of assessed value) $ 1,937,567 $ 1,824,172
Amount of debt applicable to debt limit:
Total bonded debt $ 2,801,640 $ 958,960
Less: Special assessment bonds and
proprietary bonds 2,694,140 958,960
Less: Cash and investments in
debt service funds 292 -0-
Total debt applicable to debt limit $ 107,208 $ -0-
Legal debt margin $ 1,830,359 $ 1,824,172
Legal debt margin is calculated on general obligation bond issues only (i.e.,
this does not include Special Assessment or Revenue /Enterprise Fund bonded
debt) .
DEFERRED REVENUE
Deferred revenues occur when asset recognition criteria has been met, and
revenue recognition criteria has not been met. Deferred revenue as of
December 31, 1985 consists of the following:
Park dedication fees not collected (Note 2) $ 5,060
Grant advances (state portion of LAWCON) 24,753
$29,813
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
COMPENSATED ABSENCES
The City does not record the liability for vacation and sick pay earned by
employees as such benefits accrue, but rather charges expenditures when
employees take vacations or use sick time. Generally accepted accounting prin-
ciples do not require the accrual of a liability for vacation or sick pay in
the City's Funds because no carry over was approved by Council. Vacation pay
accumulation at December 31, 1985 totaled approximately $2,800. Sick pay accu-
mulated at December 31, 1985 totaled approximately $78,200.
RETIREMENT
The City of Lino Lakes participates in the Public Employees Retirement
Association defined benefit plans as follows:
Police Employees
Other City Employees
Totals
Public Employees
Retirement Fund
Police and
Fire Fund
10
16
16 10
The City had 26 employees covered by PERA and 37 total employees.
The Public Employees Retirement Fund and the Police and Fire Fund are defined
benefit pension plans administered by the Public Employees Retirement
Association in accordance with Minnesota Statutes, Chapters 353 and 356.
The Public Employees Retirement Fund's membership consists of employees of
counties, cities, and schools in non - certified positions throughout the State
of Minnesota. The membership of the Public Employees Police and Fire Fund con-
sists of police officers and fire fighters employed by counties and cities
throughout the State of Minnesota.
In general, the association provides defined retirement benefits based on a
member's average salary for any five successive years of allowable service,
age, and years of credit at termination of service. In addition, the retire-
ment program provides benefits to members upon disability and to survivors upon
death of eligible members.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
RETIREMENT (Continued)
A summary of plan eligibility requirements is available at PERA. Such retire-
ment terms are governed by State Statute.
Retirees have a variety of annuity options available for payment of benefits.
The amounts of annuity (retirement benefits) are based on the following
formulas:
BASIC MEMBERS - 2% of the average salary over the highest five successive
years on which deductions were paid for each of the first 10 years and
2 -1/2% of said "average salary" for the period thereafter.
COORDINATED MEMBERS - 1% of the average salary over the highest five suc-
cessive years on which deductions were paid for each of the first 10 years
and 1 -1/2% of said average salary for the period thereafter.
POLICE AND FIRE MEMBERS - 2 -1/2% of the average salary over the highest
five successive years on which deductions were paid for each of the first
25 years and 2% of said average salary for the period thereafter.
PERA also provides death and disability benefits. Pension benefits are funded
from member and employee contributions and income from investment of fund
assets. Public Employees Retirement Fund members belong to either the Basic or
Coordinated Plan. Coordinated members are covered by Social Security and Basic
members are not. All new members of the Public Employees Retirement Fund must
participate in the Coordinated Plan. Current contribution rates for the funds
are as follows:
Additional
Employee Employer Employer
Public Employees Retirement Fund:
Basic Plan 8% 8% 2 -1/2%
Coordinated Plan 4% 4% 1/4%
Public Employees Police and Fire Fund 8% 12%
Upon termination, regardless of years of service, if not rehired in a PERA-
covered position, all salary deductions will be refunded, with interest at 5%
compounded annually.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
RETIREMENT (Continued)
The unfunded accrued liabilities of $645,700,193 in the Public Employees
Retirement Fund and $27,079,452 in the Public Employees Police and Fire Fund as
of June 30, 1985, are the amounts by which reserves required to fund plan bene-
fits exceed the assets of the funds calculated as follows:
Net assets - June 30, 1985
Aggregate accrued liabilities
including APV of plan benefits
Unfunded actuarial accrued liability
Public Employees Public Employees
Retirement Fund Police and Fire Fund
$ 1,812,024,978 $ 330,662,288
2,457,725,171 357,741,740
$ 645,700,193
$ 27,079,452
The City made employer contributions of $37,883 for the year ended December 31,
1985 in accordance with funding requirements determined by Minnesota statutes.
PERA does not make separate measurements for individual employers. The City
made employer contributions of $36,385 for the year ended June 30, 1985 repre-
senting .043% of total employer contributions of $84,122,561.
The City made employer contributions of $21,126 to the Federal Social Security
Retirement Plan.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
DESIGNATIONS OF FUND EQUITY
Major fund equity designations at December 31, 1985 and 1984 are as follows:
December 31,
General Fund:
Unreserved:
Designated for ensuing year's
expenditures
Prepaid insurance
LAWCON matching expenditures
City Hall expansion
1985 1984
$ 47,624 $ 21,770
30,000 30,000
65,000
Special Revenue Funds:
Unreserved:
Designated for ensuing years budget 12,230 12,173
Debt Service Funds:
Reserved for debt service 292
Capital Project Funds:
Unreserved:
Designated for committed contracts 25,215
Designated for capital improvements (133) (76,161)
Designated for equipment acquisition 117,797
Designated for park improvements 79,039 70,135
Special Assessment Funds:
Reserved for debt service 313,427 307,276
Unreserved:
Designated for committed contract 1,466 2,534
Designated for construction 1,533,515 (34,245)
Totals $ 2,135,257 $ 423,697
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (Continued)
DESIGNATIONS OF FUND EQUITY (Continued)
The following funds had deficits at December 31, 1985:
Community Development Block Grant - The fund deficit of $133 will be eliminated
by a transfer from another City fund.
LAWCON - The fund deficit of $43,302 represents the City's share of expenditures
to date. The City levied property taxes to fund a portion of its share
($30,000 levied for collection in 1982). The City plans to eliminate this
deficit from other City funds.
Lakes Addition #7 - The fund deficit of $22,675 is the result of preliminary
project costs. The City has a letter of credit to secure this deficit.
Reiling Road - The fund deficit of $2,539 will be eliminated by a transfer from
another City fund.
Interim Construction Fund - The fund deficit of $16,108 will be eliminated by
transfers from other City funds as the projects are either ordered or cancelled.
Note 3 - CONDENSED COMBINED FINANCIAL STATEMENTS
The Condensed Combined Financial Statements contained in this report provide a
summary overview of the financial position of all funds and account groups and
of the operating results of all funds. Also, these statements serve as an
introduction to the more detailed statements which follow. The reader is
cautioned that these combined statements have been condensed for presentation
purposes and that certain disclosures contained in the combining fund and
account group financial statements may not be disclosed in the condensed com-
bined financial statements.
Note 4 - "MEMORANDUM ONLY" PRESENTATIONS
Presented in these financial statements are certain amounts labeled "memorandum
only ". The reader is cautioned that this information has certain limitations
as follows:
1) The "Total" columns of the various combined statements present a
combining of unlike purpose funds and cannot be construed to be
indicative of the overall financial position, overall results of
operations nor overall changes in financial position of the City.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 4 - "MEMORANDUM ONLY" PRESENTATIONS (Continued)
2) Prior year "Total" columns likewise may combined unlike purpose
funds (as in 1 above) and additionally do not present detail com-
ponents by fund group (as is presented for current year totals) and
therefore, are incomplete presentations of prior year statements of
financial position, results of operations and changes in financial
position of the various funds of the City as established by
generally accepted accounting principles.
3) Statements of Revenue, Expenditures and Changes in Fund Balance
compared to budget present prior year actual amounts. These
amounts are incomplete presentations in that prior year budget
amounts are not included in conformance with generally accepted
accounting principles.
Note 5 - DEFERRED AD VALOREM TAX LEVIES - GENERAL BONDED DEBT
General obligation bonded debt of all Minnesota cities is issued in accordance
with State statutes. When a bond issue to be financed by ad valorem tax levy
is sold, specific annual amounts of such tax levies are stated in the bond
resolution and the County Auditor is notified and instructed to levy these
taxes over the appropriate years. These future tax levies are subject to can-
cellation when and if the City has provided alternative financing.
Alternatively, the City Council is required to levy any additional taxes found
necessary for the full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying
financial statements in accordance with generally accepted accounting
principles. Revenue from these tax levies is recognized annually as explained
under "Property Tax Revenue Recognition ".
Scheduled and actual debt service tax levies for the general obligation debt
were and are scheduled to be as follows:
Levy /Collection
1985/86
1986/87
1987/88
Percent
Scheduled Actual Levied
$ 45,000
42,000
39,000
$ 45,000 100.00%
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 6 - DEFERRED AD VALOREM TAX LEVIES - SPECIAL ASSESSMENT BOND ISSUE
Certain special assessment bond issues sold by the City are partially financed
by ad valorem tax levies in addition to special assessments levied against the
benefiting properties. When a bond issue to be financed partially or wholly by
ad valorem tax levies is sold, specific annual amounts of such tax levies are
stated in the bond resolution and the County Auditor is notified and instructed
to levy these taxes over the appropriate years. These future tax levies are
subject to cancellation when and if the City has provided alternative sources
of financing. Alternatively, the City Council is required to levy any addi-
tional taxes found necessary for the full payment of principal and interest.
These future scheduled tax levies are not shown as assets of the special
assessment funds in accordance with generally accepted accounting principles.
Revenue from these tax levies is recognized annually as explained under
"Property Tax Revenue Recognition ".
Scheduled and actual debt service tax levies for general obligation special
assessment bonds were and are as follows:
Percent
Levy /Collection Scheduled ActuO1 Levied
1982/83 $ 32,659 $ 32,658 100.00%
1983/84 36,244 -0- -0-
1984/85 36,262 -0- -0-
1985/86 41,182 -0- -0-
1986/87 44,815
1987/88 47,171
1988/89 49,073
1989/90 50,201
Note 7 - METROPOLITAN WASTE CONTROL COMMISSION
During 1970, the Metropolitan Waste Control Commission (MWCC) was organized to
provide for consolidation of the sanitary sewer collection, treatment and
disposal in the seven county metropolitan area surrounding Minneapolis and
St. Paul. Previously, these operations were maintained by the city governments
on an individual or collective basis. When the MWCC was formed, existing
interceptor sewer lines and treatment facilities were transferred from the
cities to the MWCC in exchange for future credits.
The MWCC bills the City annually based upon estimated volume and budgeted
costs. These billings are later adjusted when actual volume and actual costs
are determined. The adjustment to actual is generally determined in the suc-
ceeding calendar year and payable, by the City, in the second succeeding calen-
dar year. The City follows the accounting policy of recognizing these charges
as an expense of the sewer utility operation in the year for which they are
billed (for estimated billings) and in the year the adjustments are determined
(for adjustments from estimated to actual billings).
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 1985
Note 8 - CONTINGENCIES
The City attorney has indicated that existing and pending lawsuits, claims and
other actions in which the City is a defendant are either covered by insurance;
of an immaterial amount; or, in the judgment of the City attorney, remotely
recoverable by plaintiffs.
Note 9 - FEDERALLY ASSISTED PROGRAMS - COMPLIANCE AUDITS
The City receives financial assistance from federal and state governmental
agencies in the form of grants and the federal revenue sharing program. The
disbursement of funds received under these programs generally requires
compliance with terms and conditions specified in the grant agreements and is
subject to audit by the grantor agencies. Any disallowed claims resulting from
such audits could become a liability of the applicable fund. However, in the
opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included
herein or on the overall financial position of the City at December 31, 1985.
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
BALANCE SHEET
December 31, 1985
Assets
Cash and investments
Accounts receivable
Taxes receivable - delinquent
Due from County
Allowances and deferments
Due from other governmental units
Prepaid expenses
Total assets
Liabilities and Fund Balance
Statement 6
December 31,
1985 1984
$ 383,291 $ 221,694
3,057 1,966
94,400 78,884
7,009 10,470
(94,400) (78,884)
16,797 16,545
47,624 21,770
$ 457,778 $ 272,445
Liabilities:
Accounts payable $ 10,282 $ 13,634
Salaries payable 1,574
Due to other governments 14,708 15,188
Customer deposits 2,915 700
Total liabilities 29,479 29,522
Fund Balance:
Unreserved:
Designated
Undesignated
Total fund balance
77,624
350,675
428,299
Total liabilities and fund balance $ 457,778
116,770
126,153
242,923
$ 272,445
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 7
Page 1 of 5
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1985
1985
Over
(Under) 1984
Budget Actual Budget Actual
Revenue: (Memorandum
General property taxes: Only)
Current and delinquent $ 415,775 $ 418,077
Fiscal disparities 117,179 78,012
Penalties, interest and other 17,348 14,156
Total general property taxes $ 548,471 550,302 $ 1,831 510,245
Licenses and permits:
Business 14,146 13,898
Non - business 96,197 77,434
Total licenses and permits 90,800 110,343 19,543 91,332
Intergovernmental:
State:
Local government aid 196,308 196,177 (131) 185,196
Homestead credit 226,529 226,529 187,721
Mobile Home Homestead credit 1,182 1,182 1,185
Police aid 14,000 13,509 (491) 13,970
Police training reimbursement 978 978 1,120
MSA maintenance 13,000 13,935 935 13,935
Building permit surcharge rebate 2,749 2,749
Section 8 housing 408 408
Total intergovernmental 449,837 455,467 5,630 403,127
Charges for services:
Administrative charges -
other funds 44,890 44,890 5,100
General government 6,562 6,562 5,778
Fees retained from collection for
other governments - SAC 506 506 412
Building inspection contract 1,500 515 (985) 18,760
Public safety 45,300 45,706 406 45,204
Total charges for services 46,800 98,179 51,379 75,254
Fines and forfeits 24,000 68,492 44,492 26,784
Interest on investments -0- 6,148 6,148 1,781
Miscellaneous:
Sale of property 30,063 30,063
Cable T.V. reimbursement 6,800 6,950 150 4,303
Other 9,767 11,996 2,229 7,488
Total miscellaneous 16,567 49,009 32,442 11,791
Total revenue $ 1,176,475 $1,337,940 $ 161,465 $1,120,314
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1985
1985
Budget Actual
Expenditures:
General government:
Mayor and Council:
Current:
Personal services $ 11,150 $ 14,592
Supplies 46
Other services and charges 10,765 3,286
Total Mayor and Council 21,915 17,924
Elections:
Current:
Personal services 2,500 2,325
Supplies 500 327
Other services and charges 293
Capital outlay
Total election 3,000 2,945
Administration:
Current:
Personal services 105,340 102,567
Supplies 5,765 6,141
Other services and charges 9,440 7,809
Capital outlay 560 1,039
Total administration 121,105 117,556
Assessing:
Current:
Personal services 13,870 13,602
Supplies 175 217
Other services and charges 410 114
Total assessing 14,455 13,933
Consultants:
Current (personal services):
Engineer 22,500 15,240
Independent accountants and
auditor 9,700 11,246
Planning and zoning 7,000 6,068
Legal 34,100 38,672
Economic Development Commission 3,000
Forest Lake Service Bureau 500 500
Comparable worth study 2,000 3,455
Vadnais Heights watershed 1,200 364
Total consultants 80,000 75,545
Planning and zoning commission:
Current:
Other services and charges 990 400
Total planning and zoning
commission $ 990 $ 400 $
Over
(Under)
Budge t
$ 3,442
46
(7,479)
(3,991)
(175)
(173)
293
(55)
(2,773)
376
(1,631)
479
(3,549)
(268)
42
(296)
(522)
(7,260)
1,546
(932)
4,572
(3,000)
1,455
(836)
(4,455)
Statement 7 II
Page 2 of 5
1984
Actual
(Memorandum
Only)
$ 13,082
169
4,494
17,745
4,214
137
19
1,684
6,054
96,419
5,284
10,518
112,221
13,682
204
34
13,920
21,743
9,890
6,374
33,647
5,200
500
77,354
(590) 656
(590) $ 656
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 7
Page 3 of 5
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended Docember 31, 1985
1985
Over
(Under) 1984
Budget Actual Budget Actual
Expenditures: (continued) (Memorandum
General government: (continued) Only)
Charter commission:
Current:
Other services and charges $ 200 $ (200) $ 57
Total charter commission 200 $ -0- (200) 57
General government buildings:
Current:
Personal services 6,830 11,291 4,461 4,741
Supplies 3,300 4,999 1,699 3,367
Other services and charges 62,095 39,579 (22,516) 20,822
Capital outlay 34,200 38,792 4,592 8,962
Total general government
buildings 106,425 94,661 (11,764) 37,892
Cable TV:
Current:
Other services and charges 6,800 6,965 165 4,303
Total cable TV 6,800 6,965 165 4,303
Total general government 354,890 329,929 (24,961) 270,202
Public safety:
Police:
Current: _
Personal services 269,550 270,470 920 249,384
Supplies 31,975 31,700 (275) 36,183
Other services and charges 17,370 9,804 (7,566) 10,106
Capital outlay 16,000 12,381 (3,619) 13,393
Total police 334,895 324,355 (10,540) 309,066
Fire protection:
Current:
Personal services 400 975 575 400
Supplies 200 224 24 320
Contractual services 75,000 74,064 (936) 44,880°
Other services and charges 260 123 (137) 15
Capital outlay 440 (440)
Total fire protection 76,300 75,386 (914) 45,615
Protective inspection:
Current:
Personal services 35,150 32,893 (2,257) 31,823
Supplies 2,300 1,802 (498) 1,716
Other services and charges 2,325 2,179 (146) 2,180
Capital outlay 300 250 (50) 358
Total protective inspection $ 40,075 $ 37,124 $ (2,951) $ 36,077
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1985
1985
Budget Actual
Expenditures: (continued)
Public safety: (continued)
Civil Defense:
Current:
Personal services $ 1,060 $ 106
Supplies 1,400 105
Other services and charges 1,215 1,015
Total civil defense 3,675 1,226
Animal control:
Current:
Supplies 100 104
Contractual services 4,050 3,981
Total animal control 4,150 4,085
Total public safety • 459,095 442,176
Highways and streets:
Current:
Personal services
Supplies
Contractual services:
Streets
Signs
Street lighting
Other services and charges
Capital outlay
Total highways and streets
Parks:
Current:
Personal services
Supplies
Other services and charges
Capital outlay
Total parks
Miscellaneous:
Current:
Items purchased for resale
Other
Total miscellaneous
Total expenditures
Over
(Under)
Budge t
Statement 7
Page 4 of 5
1984
Actual
(Memorandum
Only)
$ (954) $
(1,295)
(200)
(2,449)
4
(69)
(65)
(16,919)
129,745 125,562 (4,183)
25,500 25,610 110
159,100 112,819 (46,281)
3,000 3,273 273
9,300 8,483 (817)
13,845 12,075 (1,770)
1,000 6,337 5,337
341,490 294,159 (47,331)
36,855
14,575
7,435
8,000
66,865
-0-
41,773
15,801
6,687
290
64,551
10,525
4,795
15,320
4,918
1,226
(748)
(7,710)
(2,314)
10,525
4,795
15,320
$1,222,340 $1,146,135 $ (76,205)
263
452
1,277
1,992
3,908
3,908
396,658
109,404
28,916
118,052
1,421
7,835
13,747
1,582
280,957
31,660
1 2, 072
6,012-
896
50,640
8,937
1,113
10,050
$1,008,507
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1985
Revenue over (under) expenditures
Other increases (decreases):
Transfer from Special Revenue Fund
Transfer to City Hall Expansion Fund
Proceeds from closing mortgage
revenue fund
Total other increases
(decreases)
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
1985
Budget
$ (45,865)
41,760
(50,000)
-0-
(8,240)
$ (54,105)
Statement 7
Page 5 of 5
Over
(Under) 1984
Actual Budget Actual
(Memorandum
Only)
$ 191,805 $ 237,670 $ 111,807
42, 844
(49, 943)
670
(6,429)
1,084
57
670
1,811
185,376 $ 239,481
242,923
$ 428,299
-0-
111,807
131,116
$ 242,923
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND
FEDERAL REVENUE SHARING FUND
BALANCE SHEET
December 31, 1985
Assets
Cash and investments
Due from other governmental units
Total assets
Liabilities and Fund Balance
Fund Balance:
Designated for ensuing year's budget
Total fund balance
Total liabilities and
fund balance
Statement 8
December 31,
1985 1984
$ 1,208
11,022
$ 1,826
10,347
$ 12,230 $ 12,173
$ 12,230
1 2, 230
$ 12,173
12,173
$ 12,230 $ 12,173
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 9
SPECIAL REVENUE - FEDERAL REVENUE SHARING FUND
STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 1985
Revenue:
Intergovernmental:
Federal Revenue Sharing
Interest on investments
Total revenue
Expenditures
Revenue over expenditures
Other (decreases):
Transfer to General Fund
Transfer to Capital Project Fund
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
1985
Over
(Under) 1984
Budget Actual Budget Actual
(Memorandum
Only)
$ 41,760 $ 41,693 $ (67) $ 36,227
1,208 1,208 1,826
41,760 42,901 1,141 38,053
-0- -0- -0- -o-
41,760 42,901 1,141 38,053
(41,760) (42,844) (1,084)
$ -0-
(37, 648)
57 $ 57 405
12,173 11,768
$ 12,230 $ 12,173
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 10
DEBT SERVICE FUNDS
COMBINING BALANCE SHEET
For The Year Ended December 31, 1985
1985
Certificates Total
of December 31,
Indebtedness 1985 1984
(Memorandum
Only)
Assets
Cash and investments $ 292 $ 292 $ -0-
Total Assets $ 292 $ 292 $ -0-
Liabilities and Fund Balance
Liabilities $ -0- $ -0- $ -0-
Fund Balance:
Reserved for debt retirement 292 292 -0-
Total Liabilities and Fund Balance
$ 292 $ 292 $ -0-
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 11
DEBT SERVICE FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1985
1985
Certificates Total
of December'31,
Indebtedness .1985 1984
(Memorandum
Only)
Revenue:
Intergovernmental:
State homestead credit aid
Interest on investments $ 29
Total revenue $ -0- $ -0- 29
Expenditures:
Debt service:
Principal retirement
Interest
Fiscal agent fees
Total expenditures -0- 0 -0-
Revenue over expenditures -0- -0- 29
Other increases (decreases):
Bond proceeds 292 292
Transfer to Capital Project Fund (2,390)
Net increase (decrease) in fund balance 292 292 (2,361)
Fund balance - January 1 -0- -0- 2,361
Fund balance - December 31 $ 292 $ 292 $ -0-
The accompanying notes are an integral part of these financial statements.
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Assets
Cash (overdraft) and Investments
Taxes receivable - delinquent
Allowance and deferments
Due from County
Due from other governmental units
Accounts receivable
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable
Deferred revenue
Total Liabilities
Fund balance (deficit):
Unreserved:
Designated for:
Committed contracts
Capital improvements
Equipment acquisition
Park improvements
Total fund balance
Total liabilities and
fund balance
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING BALANCE SHEET
December 31, 1985
Capital Community
Parks and Improvement Development
Playgrounds Projects Block Grant LAWCON
$ 122,341
5.060
$ 117,717
4,747
(4,747)
80
Statement 12
Totals
December 31
1984
1985
(Memorandum
Only)
$ (7,688) $C20,189) $ 212,181 $ 5,635
4,747 6,148
(4,747) (6,148)
80 275
8,397 1,640 10,037 54,249
5.060 6.820
$ 127,401 $ 117,797 $ 709 $(18.549) $ 227.358 $ 66.979
$ 5,060
5.060 $ -0-
122,341
122,341
117,797
117.797
$ 842
842
(133)
(133)
$ 24,753
24,753
(43 302 )
(43.302 )
$ 842 $ 1,672
13,028
29, 813 33, 090
30.655 47.790
(133)
117,797
79,039
196.703
25,215
(76,161)
70. 135
19. 189
$ 127,401_ $ 117,797 $ 709 $(18,549) $ 227.358 $ 66.979
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
CAPITAL PROJECT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
For The Year Ended December 31, 1985
Revenue:
General property taxes:
Current and delinquent
Penalties, interest and other
Total general property taxes
Intergovernmental:
LAWCON grant:
State
Federal
County of Anoka:
Community development block grant
Interest on investments
Park dedication fees
Donations
Total revenue
Capital
Parks and Improvement
Playgrounds Project
$ -0-
6,969
9,650
2,939
19,558
$ 1,401
1,035
2,436
1,192
3,628
Expenditures:
Current:
Personal services
Contractual services
Supplies 58
Capital outlay:
General government
Public safety
Public works 7,725
Parks 8,321
Total expenditures 8,379 7,725
Revenue over (under) expenditures 11,179 (4,097)
Other increases (decreases):
Bond proceeds 107,500
Transfer from General Fund
Transfer from Special Revenue Fund
Transfer from Capital Project Fund
Transfer to Capital Project Fund
Transfer from Debt Service Fund
Total other increases (decreases) -0- 107,500
Net increase (decrease) in fund balance 11,179 103,403
Fund balance (deficit) - January 1 111,162 14,394
Fund balance (deficit) - December 31 $ 122,341 $ 117,797
Community
Development
Block Grant
$ -0-
CITY OF LINO LAKES, MINNESOTA
LAWCON
Statement 13
Totals
City Hall December 31,
Expansion 1985 1984
(Memorandum
Only)
$ -0- $ -0-
$ 1,401
1,035
2,436
$ 3,940
1,312
5,252
1,517 1,517 27,304
1,625 1,625 29,306
59,989 59,989 47,819
8,161 11,933
9,650 4,096
7,800 10,739 3,900
67,789 3,142 -0- 94,117 129,610
3,406 5,417 8,823
148 (923) (775) 207,285
7,821 7,879
42,073 42,073
10,546
7,725
8,321 3,466
53,448 5,417 (923) 74,046 221,297
14,341 (2,275) 923 20,071 (91,687)
-0-
14,341
(14,474)
$ (133)
-0-
(2,275)
(41,027)
$(43,302)
49,943
49,943
50,866
(50,866)
$ -0-
107,500
49,943
37,648
7,934
(7,934)
2,390
157,443 40,038
177,514 (51,649)
19,189 70,838
$ 196,703 $ 19,189
The accompanying notes are an integral part of these financial statements.
Assets
Cash (overdraft) and investments
Taxes receivable
Allowances and deferments
Due from County
Special assessments receivable:
Delinquent
Deferred
City property
Amount to be provided
Total assets
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING BALANCE SHEET
December 31, 1985
t~
Debt Service 1
Improvement Improvement
Bonds Bonds
Of 1977 Of 1980
$ 20,738 $ (39,995)
205
125
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable
Due to other governmental units
Refund payable
Bonds payable
Total liabilities
7,329
5,260
90,629
28,275
$ 28,397 $ 84,169
$ 12,640
12,640
$ 40,000
40,000
Fund balance (deficit):
Reserved:
For debt service 15,757 44,169
Unreserved:
Designated for committed contracts
Designated for construction
Total fund balance 15,757 44,169
Total liabilities and fund balance
$ 28,397 $ 84,169
CITY OF LINO LAKES, MINNESOTA
Statement 14
Page 1 of 2
Temporary
Improvement Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds Bonds
Of 1981 Of 1982 Of 1983 Of 1984 Of 1985
$ 14,340
2„322
30,000
$ 46,662
$ 30,000
30,000
16,662
$ 274,047
857
(857)
15
1 77,,758
291,818
129,819
$ 6,559
86,823
$ 873,457 $ 93,382
$ 650,000
650,000
$ 80,000
80,000
223,457 13,382
$ 4,878 $ 185,925
754
24,390
1,478
22,524
1,641,551
$ 31,500 $1,850,000
$ 31,500
31,500
$1,850,000
1,850,000
16,662 223,457 13,382 -0- -0-
$ 46,662
$ 873,457 $ 93,382
$ 31,500 $1,850,000
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING BALANCE SHEET
December 31, 1985
Assets
Cash (overdraft) and investments
Taxes receivable
Allowances and deferments
Due from County
Special assessments receivable:
Delinquent
Deferred
City property
Amount to be provided
Total assets
Liabilities and Fund Balance
Liabilities:
Accounts payable
Contracts payable
Due to other governmental units
Refund payable
Bonds payable
Total liabilities
Fund balance (deficit):
Reserved:
For debt service
Unreserved:
Designated for committed contracts
Designated for construction
Total fund balance
Total liabilities and fund balance
Construction
Interim
Construction Lakes
Fund Addition #7
$ (10,292) $ (22,675)
$ (10,292) $ (22,675)
$ 5,816
5,816 $ -0-
(16,108) (22,675)
(16,108) (22,675)
$ (10,292) $ (22,675)
CITY OF LINO LAKES, MINNESOTA
Baldwin
Lake Mobile
Home Court
$ 34,894
$ 34,894
$ 24,403
24,403
10,491
10,491
$ 34,894
Tomahawk
Trail
$ 305
$ 305
$ -0-
305
305
$ 305
Reiling
Road
Rice Lake
Estates
$ (1,333) $1,571,387
$ (1,333) $1,571,387
$ 1,206
1,206
1,466
(4,005)
(2,539)
$ 5,880
5,880
1,565,507
1,565,507
$ (1,333) $1,571,387
Statement 14
Page 2 of 2
Totals
December 31,
1985 1984
$ 2,038,778
857
(857)
5,480
271,588
491,159
129,819
1,643,029
(Memorandum
Only)
$ 327,508
1,109
(1,109)
11,447
182,722
610,715
129,819
1,140
$ 4,579,853 $ 1,263,351
$ 11,696
1,206
24,403
2,694,140
2,731,445
313,427
1,466
1,533,515
1,848,408
$ 417
1,829
24,404
2,176
958,960
987,786
307,276
2,534
(34,245)
275,565
$ 4,579,853 $ 1,263,351
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT FUND '
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
December 31, 1985
Debt Service
Improvement Improvement
Bonds Bonds
Of 1977 Of 1980
Revenue:
General property taxes:
Current and delinquent taxes
Penalties and interest
Total general property taxes $ -0- $ -0- I
Special assessments:
New rolls adopted
Interest 870 6,288
Adjustments and penalties - net I
Interest on investments 1,284
Total revenue 2,154 6,288
Expenditures: I
Current:
Professional services
Capital outlay: I
Construction costs
Debt service:
Interest 948 6,600 I
Fiscal agent fees 112
Total expenditures 948 6,712
Revenue over (under) expenditures 1,206 (424) I
Other increase (decreases):
Bond proceeds
Increase (decrease) in amount to be provided
Total other increases (decreases) -0- -0-
Net increase (decrease) in fund balance 1,206 (424)
Fund balance (deficit) - January 1 14,551 44,593 1
Fund balance (deficit) - December 31 $ 15,757 $ 44,169
1
1
1
CITY OF LINO LAKES, MINNESOTA
Statement 15
Page 1 of 2
Temporary
Improvement Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds Bonds
Of 1981 Of 1982 Of 1983 Of 1984 Of 1985
$ -0-
$ 253
187
440
4,190 41,755
$ -0-
$ -0- $ -0-
9,373 3,544
870 15,886 448 344
22,524
5,060 58,081 9,821 3,888 22,524
3,712 56,115 7,650 4,226
50 66
3,762 56,181 7,650 4,226 -0-
1,298 1,900 2,171 (338) 22,524
185,925
338 (208,449)
-0- -0- -0- 338 (22,524)
1,298 1,900 2,171 -0- -0-
15,364 221,557 11,211 -0- -0-
$ 16,662 $ 223,457 $ 13,382 $ -0- $ -0-
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
SPECIAL ASSESSMENT FUNDS
COMBINING STATEMENT OF REVENUE, EXPENDITURES AND
CHANGES IN FUND BALANCE
December 31, 1985
Revenue:
General property taxes:
Current and delinquent taxes
Penalties and interest
Total general property taxes
Special assessments:
New rolls adopted
Interest
Adjustments and penalties - net
Interest on investments
Total revenue
Construction
Interim
Construction Lakes
Fund Addition #7
$ -0- $ -0-
-0- -o-
Expenditures:
Current:
Professional services
Capital outlay:
Construction costs 16,108 91
Debt service:
Interest
Fiscal agent fees
Total expenditures 16,108 91
Revenue over (under) expenditures
(16,108) (91)
Other increase (decreases):
Bond proceeds
Increase (decrease) in amount to be provided
Total other increases (decreases) -0-
Net increase (decrease) in fund balance (16,108)
Fund balance (deficit) - January 1 -0-
Fund balance (deficit) - December 31 $ (16,108)
-0-
(91Y
(22,584)
$ (22,675)
CITY OF LINO LAKES, MINNESOTA
Statement 15
Page 2 of 2
Baldwin Totals
Lake Mobile Tomahawk Reiling Rice Lake December 31,
Home Court Trail Road Estates . 1985 1984
(Memorandum
Only)
$ 253 $ 711
187 237
$ -0- $ -0- $ -0- $ -0- 440 948
22,524 30,369
66,020 77,980
(4,816)
2,075 17,077 37,984 29,715
2,075 -0- -0- 17,077 126,968 134,196
149
57 3,590 350 82,315 102,511 54,087
79,251 83,630
228 230
57 3,590 350 82,315 181,990 138,096
2,018 (3,590) (350) (65,238) (55,022) (3,900)
19,306 1,630,745 1,835,976 35,000
(208,111) (33,860)
-0- 19,306 -0- 1,630,745 1,627,865 1,140
2,018 15,716 (350) 1,565,507 1,572,843 (,760)
8,473 (15,411) (2,189) -0- 275,565 278,325
$ 10,491 $ 305 $ (2,539) $1,565,507 $ 1,848,408 $ 275,565
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
WATER AND SEWER FUND
BALANCE SHEET
December 31, 1985
Assets
Statement 16
December 31,
1985 1984
Current assets:
Cash (overdraft) $ (10,094) $ (15,353)
Accounts receivable 14,611 14,314
Due from County 119
Due from other governmental units 9,203 5,850
Prepaid expenses 1,755 795
Inventory 600 719
Total current assets 16,075 6,444
Property, plant and equipment:
Well 18,500 18,500
Buildings 48,690 48,690
Equipment 15,561 14,821
Water and sewer system 973,802 955,502
Total property, plant and equipment 1,056,553 1,037,513
Less: Allowance for depreciation (189,090) (165,576)
Net fixed assets 867,463 871,937
Total assets $ 883,538 $ 878,381
Liabilities and Fund Equity
Liabilities:
Accounts payable $ 340 $ 678
Salaries payable 62
Due to other governments 706 40
Customer deposits 3,325 2,660
Total liabilities 4,433 3,378
Fund equity:
Contributions - net
Retained earnings
Total fund equity
863,489
15,616
879,105
Total liabilities and fund equity $ 883,538
867,718
7,285
875,003
$ 878,381
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
WATER AND SEWER FUND
STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS
For The Year Ended December 31, 1985
Operating revenue:
Water sales
Sewer charges
Other operating revenue
Total operating revenue
Statement 17
December 31,
1985 1984
$ 7,640 $ 6,011
• 39,084 36,417
4,428 2,909
51,152 45,337
Operating expenses:
Personal services 12,438 14,831
St}pplies 2,516 2,845
Cpntractual services 833 777
R,pair and maintenance 3,061 4,088
MWCC sewer charges 25,954 23,866
Depreciation:
,Purchased assets 984 838
:Contributed assets 22,530 21,004
Utilities 2,204 2,208
Sewer service charge 2,843 2,289
Other 293 375
Total operating expenses 73,656 73,121
Operating (loss)
Non4operating revenue:
Maintenance agreement - MWCC
Netiincome (loss)
Other increases:
Ciedit arising from transfer of depreciation to
contributions from property owners
Netiincome to retained earnings
Retained earnings - January 1
Retained earnings - December 31
(22,504) (27,784)
8,305 7,138
(14,199) (20,646)
22,530 21,004
8,331 358
7,285 6,927
$ 15,616 $ 7,28
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
ENTERPRISE FUND
WATER AND SEWER FUND
STATEMENT OF CHANGES IN FINANCIAL POSITION
For The Year Ended December 31, 1985
Sources of working capital:
Operations:
Net operating loss
Add: Items not requiring a current outlay of
working capital:
Depreciation
Total working capital provided by operations
Total sources of working capital
Uses of working capital:
Additions to property and equipment
Total uses of working capital
Net increase in working capital
Components of increase in working capital:
Cash (overdraft)
Accounts receivable
Due from County
Due from other governmental units
Due to other governmental units
Prepaid expenses
Inventory
Accounts payable
Salaries payable
Customer deposits
Net increase in working capital
Statement 18
December 31,
1985 1984
r
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$ (14,199) $ (20,646) II
23,514 21,842 ,
9,315 1,196
9,315 1,196
739
739 -0-
*
$ 8,576 $ 1,196 1
1
$ 5,259
297
(119)
3,353
(666)
960
(119)
338
(62)
(665)
(4,546)
2,075
119
1,174
3,257
37
149
(649)
(420)
8,576 $ 1,196
The accompanying notes are an integral part of these financial statements.
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CITY OF LINO LAKES, MINNESOTA
Statement 19
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For The Year Ended December 31, 1985
Balance Balance
January 1, December 31,
1985 Additions Deductions 1985
Contractors Deposits
Assets
Cash $ 4,127 $ 11,350 $ 18,743 $ (3,266)
Due from developers 4,082 9,539 8,969 4,652
Total assets $ 8,209 $ 20,889 $ 27,712 $ 1,386
Liabilities
Developers deposit $ 7,402 11,350 17,418 1,334
Accounts payable 807 52 807 52
Total liabilities $ 8,209 $ 11,402 $ 18,225 $ 1,386
Minnesota Housing Revenue Bonds
Assets
Cash
Liabilities
Deposits payable
Investment Fund
Assets
Cash and investments
Accrued interest
Total assets
Totals - All Agency Funds
Assets
Cash and investments
Accrued interest
Due from developer
Total assets
$ 670 $ -0- $ 670 $ -0-
$ 670 $ -0- $ 670 $ -0-
$ (4,316)
4,316
$ -0-
$3,257,248
17,247
$3,274,495
$3,270,179
4,316
$3,274,495
$(17,247)
17,247
$ -0-
$ 481 $3,268,598 $3,289,592 $(20,513)
4,316 17,247 4,316 17,247
4,082 9,539 8,969 4,652
$ 8,879 $3,295,384 $3,302,877 $ 1,386
Liabilities
Deposits payable $ 8,072 $ 11,350 $ 18,088 $ 1,334
Accounts payable 807 52 807 52
Total liabilities $ 8,879 $ 11,402 $ 18,895 $ 1,386
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
Statement 20
STATEMENT OF GENERAL FIXED ASSETS
December 31, 1985
(Unaudited)
Balance Balance
1/1/85 Additions Deletions 12/31/85
Land $ 160,151 $ 19,478 $ 28,000 $ 151,629
Wells 6,216 6,216
Buildings and improvements 182,228 333,935 516,163
Furniture and equipment 379,422 44,432 40,000 383,854
Total general fixed assets $ 728,017 $ 397,845 $ 68,000 $1,057,862
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF GENERAL LONG -TERM DEBT
December 31, 1985
Amount available in Debt Service Fund
Amount to be provided from future tax levies
Amount to be provided for debt retirement
Total assets
1985 Certificate of Indebtedness
Assessments payable on City property
Contracts payable
Total liabilities
Statement 21
December 31,
1985 1984
$ 292
107,208
131,359
$ 133,899
$ 238,859 $ 133,899
$ 107,500
129,820
1,539
$ 238,859
$ 129,820
4,079
$ 133,899
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 1985
Special Assessment Bonds:
G.O. Improvement Bonds of 1977
G.O. Improvement Bonds of 1980
G.O. Improvement Bonds of 1981
G.O. Improvement Bonds of 1982
G.O. Improvement Bonds of 1983
G.O. Improvement Bonds of 1984
G.O. Temporary Improvement Bonds of 1985
Total special assessment bonds
General Obligation Bonds:
1985 Certificate of Indebtedness
Contracts Payable:
American Bell
Total contracts payable
Total City indebtedness
Final
Payment Net Interest
Dated Date Rate
7/16/77 7/26/87 . 5.00%
12/01/80 12/01/86 8.25
12/01/81 12/01/91 10.00 to 11.00
10/01/82 2/01/91 7.25 to 8.80
10/01/83 10/01/93 8.00 to 9.00
5/01/84 11/01/94 6.50
11/01/85 11/01/88 7.03
12/01/85 12/01/88 6.25 to 6.75
9/28/83 9/25/86 14.00
CITY OF LINO LAKES, MINNESOTA
Exhibit 1
Authorized Principal Interest
and Due Due
Issued Retired Outstanding in 1986 in 1986
$ 63,200 $ 50,560 $ 12,640 $ 6,320 $ 632
200,000 160,000 40,000 40,000 3,300
45,000 15,000 30,000 5,000 3,213
750,000 100,000 650,000 50,000 52,315
100,000 20,000 80,000 10,000 6,850
35,000 3,500 31,500 3,500 2,590
1,850,000 -0- 1,850,000 -0- 123,950
3,043,200 349,060 2,694,140 114,820 192,850
107,500 -0- 107,500 35,000 7,337
5,301 3,762 1,539 1,539 92
5,301 3,762 1,539 1,539 92
$ 3,156,001
$ 352,822 $ 2,803,179
$ 151,359 $ 200,279
Year of
Levy /Collection
CITY OF LINO LAKES, MINNESOTA
DEFERRED TAX LEVIES
December 31, 1985
1985 G.O. G.O.
Certificates Improvement Improvement
of Bonds Bonds
Indebtedness Of 1982 Of 1984
Exhibit 2
Total
1985/86 $ 45,000 $ 45,000
1986/87 42,000 $ 44,374 $ 441 86,815
1987/88 39,000 47,006 165 86,171
1988/89 48,954 119 49,073
1989/90 50,201 50,201
Total $ 126,000 $ 190,535 $ 725 $ 317,260
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 1985
G.O. G.O.
1985 Improvement Improvement
Certificates Bonds Bonds
of Indebtedness Of 1977 Of 1980
Bonds payable $ 107,500 $ 12,640 $ 40,000
Future interest payable 14,331 948 3,300
Totals $ 121,831 $ 13,588 $ 43,300
Payments to maturity:
1986
1987
1988
1 989
1990
1991
1992
1993
1994
$ 41,994
39,806
40,031
$ 6,952
6,636
$ 43,300
Totals $ 121,831 $ 13,588 $- 43,300
CITY OF LINO LAKES, MINNESOTA
G.O.
G.O. G.O. G.O. G.O. Temporary
Improvement Improvement Improvement Improvement Improvement
Bonds Bonds Bonds Bonds Bonds
Of 1981 Of 1982 Of 1983 Of 1984 Of 1985
$ 30,000
11,387
$ 41,387
$ 650,000
185,110
$ 835,110
$ 80,000 $ 31,500
$1,850,000
Exhibit 3
Total
$2,801,640
32,500 13,509 371,850 632,935
$ 112,500
$ 45,009 $2,221,850 $3,434,575
$ 8,212 $ 102,315 $ 16,850 $ 6,090
7,713 156,045 16,050 5,845
7,175 151,985 15,250 5,582
6,637 147,230 14,400 5,310
6,100 141,815 13,550 5,031
5,550 135,720 13,700 4,743
11,800 4,445
10,900 4,139
3,824
$ 41,387 $ 835,110
$ 123,950
123,950
1,973,950
$ 349,663
356,045
2,193,973
173,577
166,496
159,713
16,245
15,039
3,824
$ 112,500 $ 45,009 $2,221,850 $3,434,575
CITY OF LiNO LAKES, MINNESOTA
CONSTRUCTION WORK IN PROCESS
December 31, 1985
Construction /Acquisition Costs
Contractor Engineer Other Total
1985
Exhibit 4
Expended
Prior
Years
Capital Project Funds:
City Hall Expansion S 70,003 $ 5,814 $ 20,631 $ 96,448* $ (923) $ 97,371
Senior Citizen Center 142,745 17,250 51,066 211,061* 48,085 162,976
LAWCON - Country Lakes Park 92,985 13,641 7,230 113,856 5,417 108,439
Total Capital Protect Funds $ 305,733 $ 36,705 $ 78,927 $ 421,365 $ 52,579 $ 368,786
Special Assessment Construction Funds:
Interim Construction:
80th Avenue S 87 S 87 $ 87
4th Avenue 16,021 16,021 16,021
Total Interim Construction $ -0- 16,108 $ -0- 16,108 16,108 $ -0-
Lakes Addition 17 22,675 22,675 91 22,584
Baldwin Lake Mobile Home Court 44,829 13,174 28,459 86,462* 57 86,405
Tomahawk Trail 14,251 3,194 1,556 19,001* 3,590 15,411
Relling Road 24,129 7,049 4,248 35,426* 350 35,076
Rice Lake Estates 7,651 74,664 82,315 82,315
Total Special Assessment
Funds $ 83,209 $ 69,851 $108,927 -$ 261,987 $ 102511 $ 159,476
* Project Completed
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CITY OF LINO LAKES, MINNESOTA
Exhibit 5
INSURANCE IN FORCE
December 31, 1985
Coverage Amount
General Liability:
Bodily Injury /Property Damage $ 600,000
Personal Injury 600,000
Property:
Buildings and Contents
Contractors Equipment
Miscellaneous Property
Valuable Papers
Faithful Performance Blanket Bond
Public Official and Employee Liability
Police Professional Liability
1,258,500
56,800
21,489
50,000
100,000
1,000,000
500,000
Automotive:
Bodily Injury and Property Damage 600,000
Comprehensive and Collision ACV
Uninsured Motorist 600,000
Workers Compensation Statutory
Employee Benefit Liability 500,000
Umbrella Liability 1,000,000
CITY OF LINO LAKES, MINNESOTA
Exhibit 6
ASSESSED VALUATIONS, TAX LEVIES AND MILL RATES
1986 1985
Tax levies extended by County:
Year of levy 1985 1984
Year of collection 1986 1985
Assessed Valuation:
Total
Fiscal Disparity Contribution
Net Assessed Valuation
Fiscal Disparity Distribution
Tax Levies:
City Total
Fiscal Disparities Distribution Tax
Balance Levied Against Property
Located in Lino Lakes
Mill Rates:
Property Located in Lino Lakes
Fiscal Disparity
$27,350,937 $25,760,034
929,569 884,963
$26,421,368 $24,875,071
$ 4,877,202 $ 4,566,272
$ 880,500
173,756
$ 706,744
26.749
26.400
$ 775,000
118,308
$ 656,692
26.400
25.909