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HomeMy WebLinkAboutAnnual Financial Report 12/31/1987CITY OF LINO LAKES, MINNESOTA ANNUAL FINANCIAL REPORT DECEMBER 31, 1987 Organization Organization Chart CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS I. INTRODUCTORY SECTION II. FINANCIAL SECTION Auditor's Report Combined Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in Fund Balance - All Governmental Fund Types Statement 1 Statement 2 Combined Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual - General and Special Revenue Fund Types Statement 3 Combined Statement of Revenue, Expenses and Changes in Retained Earnings - Proprietary Fund Type Statement 4 Combined Statement of Cash Flows - Proprietary Fund Type Statement 5 Notes to Financial Statements Combining, 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 Funds: 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 Enterprise Funds: Water and Sewer Fund: Balance Sheet Statement of Revenue, Expenses and Changes in Retained Earnings Statement of Cash Flows Statement 6 Statement 7 Statement 8 Statement 9 Statement 10 Statement 11 Statement 12 Statement 13 Statement 14 Statement 15 Statement 16 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS II. FINANCIAL SECTION (CONTINUED) Combining, Individual Fund and Account Group Financial Statements (continued) : Agency Funds: Combining Balance Sheet Combining Statement of Changes in Assets and Liabilities Statement of General Fixed Assets Statement of General Long -Term Debt Statement 17 Statement 18 Statement 19 Statement 20 Supplementary Financial Information: Combined Schedule of Indebtedness Exhibit 1 Deferred Tax Levies Exhibit 2 Debt Service Payments to Maturity Exhibit 3 Construction Work in Process Exhibit 4 Insurance in Force Exhibit 5 Assessed Valuations, Tax Levies and Mill Rates Exhibit 6 Schedule of Sources and Uses of Funds: Tax Increment Housing District #1 -1 Exhibit 7 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA ORGANIZATION December 31, 1987 Term Expires Mayor. Benjamin G. Benson December 31, 1987 Council Members: Harold Bisel William Bohjanen Donald Marier Vernon Reinert December 31, 1989 December 31, 1987 December 31, 1987 December 31, 1989 City Administrator. Randall Schumacher Appointed Clerk- Treasurer: Marilyn Anderson Appointed City Accountant Paula Romocky Appointed Ts • c 0 o N 2 c ac4 • c 0 E m E 0 V ae 0. • E 0. 0 0 W • 0 Y d q cc T. c E 0 W II Is s Qs • 0 D Y Y O 3 2 a o. II. FINANCIAL SECTION VOTO, TAUTGES, REDPATH & CO., LTD. CERTIFIED PUBLIC ACCOUNTANTS VI :Ls_ 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, Minnesota ROBERT J. VOTO, CPA ROBERT G. TAUTGES, CPA JAMES S. REDPATH, CPA We have examined the combined financial statements of the CITY OF LINO LAKES, MINNESOTA, and the combining, individual fund, and account group fmancial statements of the City as of and for the year ended December 31, 1987, 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 circumstances. 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, 1987 or 1986 (stated at $1,369,835 and $1,309,201 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 had we been able to obtain sufficient evidential matter regarding the City's General Fixed Assets, the general purpose financial statements referred to above present fairly the financial position of the CITY OF LINO LAKES, MINNESOTA at December 31, 1987, and results of its operations and its cash flows of its Proprietary Funds in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year except for the change, with which we concur, as discussed in Note 12 to the financial statements. Also, in our opinion, except for the effects of such adjustments, if any, as might have been determined had we been able to obtain sufficient evidential matter regarding the City's General Fixed Assets, the combining, individual fund, and account group fmancial 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 31,1987 and the results of operations of such funds and its cash flows of the individual proprietary funds for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year except for the change, with which we concur, as discussed in Note 12 to the financial statements. 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 exhibits listed as supplementary financial information in the table of contents are presented for purposes of additional analysis and are not a required part of the combined financial statements of the City. The information has been subjected to the auditing procedures applied in the examination of the combined, combining, individual fund, and account group financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole. May 27, 1988 VOTO, TAUTGES, REDPATH & CO., LTD. Certified Public Accountants MEMBERS OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • PRIVATE COMPANIES PRACTICE SECTION MINNESOTA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS GOVERNMENT FINANCE OFFICERS ASSOCIATION • MINNESOTA ASSOCIATION OF SCHOOL BUSINESS OFFICIALS COMBINED FINANCIAL STATEMENTS C1TY OF LINO LAKES, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 1987 Governmental Fund Types Debt Capital Assets General Service Proiect Cash and investments Cash with trust agent Cash with bond purchaser Accrued interest receivable Accounts receivable Due from other governmental units Taxes receivable: Delinquent Due from County Special assessments receivable Prepaid expenses Inventory Fixed assets (net of accumulated depreciation) Amount available in Debt Service Fund Amount to be provided for retirement of GLTD $490,160 $777,329 $1,319,301 5,249 8,826 21,197 156,175 26,681 982 332 115,240 5,064 67 329 1,997,889 94,317 52,593 Total Assets $711,449 $2,781,264 $1,579,018 Liabilities and Fund Equity Liabilities: Cash overdraft Accounts payable $23,939 Salaries payable 2,829 Contracts payable Assessments payable on City property Deposits payable 10,396 Due to other governmental units 4,883 Deferred revenue 27,010 $1,993,021 Bonds payable Deferred compensation payable Total liabilities 69,057 1,993,021 $252,846 38,314 135,211 84,350 99,709 610,430 Fund Equity: Contributions from property owners Invested in general fixed assets Retained earnings Fund balance (deficit): Reserved 788,243 Unreserved: Designated 52,593 1,150,829 Undesignated 589,799 (182,241) Total fund equity 642,392 788,243 968,588 Total liabilities and fund equity $711,449 $2,781,264 $1,579,018 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 1 Fiduciary Totals Proprietary Fund Type Account Groups (Memorandum Only) Fund Type Trust and General General Long- December 31, Enterprise Agency Fixed Assets Term Debt 1987 1986 (Unaudited) $972 $2,587,762 $1,799,154 59,420 59,420 41,465 473,102 11,684 11,684 6,991 $23,364 10,161 47,600 29,798 14,208 191,580 18,757 4,902 3,245 822,196 $1,369,835 27,995 144,694 120,371 127,507 2,092,535 2,337,754 57,495 58,284 3,245 4,216 2,192,031 2,153,150 $729,383 729,383 790,685 3,792,713 3,792,713 2,564,231 $867,915 $82,237 $1,369,835 84,522,096 $11,913,814 $10,549,788 $27,142 $11,684 6,345 2,179 370 1,171 35,028 8,954 59,420 82.237 $64,000 148,096 $4,310,000 4.522.096 $291,672 $383,160 70,777 50,404 3,199 1,861 199,211 282,045 148,096 148,096 19,350 15,747 90,404 25,558 2,119,740 2,508,999 4,310,000 3,126,820 59,420 41,465 7,311,869 6,584,155 818,429 818,429 840,959 1,369,835 1,369,835 1,309,201 14,458 14,458 20,874 788,243 792,670 832,887 $867,915 1,203,422 1,291,424 407,558 (289,495) 0 1,369,835 0 4,601,945 3,965,633 $82,237 $1,369,835 $4,522,096 $11,913,814 $10,549,788 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES For The Year Ended December 31, 1987 Revenue: General property taxes Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Donations and park dedication fees Miscellaneous 48,332 Total revenue 1,617286 Special General Revenue $714,892 164,115 545,674 59,069 68,448 16,756 Expenditures: Current: General government Public safety Highways and streets Parks Capital outlay: General government Public safety Highways and streets Parks Debt service: Principal Interest and fiscal charges Construction/acquisition Sewer abatement Total expenditures Revenue over (under) expenditures Other increases (decreases): Operating transfers in Operating transfers out Bond proceeds Contract for deed - land purchase Total other increases (decreases) Net increase (decrease) in fund balance Fund balance - January 1 Residual equity transfer. From other funds To other funds Fund balance - December 31 424,428 530,785 383,271 82,117 43,727 29,174 10,185 15,502 1,519,189 Debt Capital Service Project $31,899 $3,753 704,812 10,115 11,764 666,294 27,629 63,713 Statement 2 Totals (Memorandum Only) December 31, 1987 1986 $750,544 $616,867 714,927 252,762 164,115 137,879 1,223,732 545,042 59,069 59,249 68,448 65,369 108,098 146,689 8,300 11,330 59,662 16,204 3,148,595 1,848,361 $0 776,104 755,205 4,443 167 28,904 1,186 428,871 530,785 383,271 82,117 43,727 29,341 39,089 16,688 377,535 464,499 344,767 86,549 109,745 25,524 59,209 14,274 544,820 544,820 149,820 186,361 186,361 207,546 1,960,514 1,960,514 1,408,741 22,246 22,246 0 731,181 2,017,460 4,267,830 3,248,209 98,097 0 44,923 (1,262,255) (1,119,235) (1,399,848) 12,100 1,711,759 1,723,859 0 0 12,100 1,711,759 1,723,859 98,097 0 57,023 449,504 604,624 539,380 2,377 747,567 505,275 1,794,599 39,846 (39,846) 469,970 80,000 549,970 (849,878) 2,644,477 19,028 304 44,161 63,493 (14,113) (2,377) (16,651) (30,352) (63,493) $642,392 $0 $788,243 $968,588 $2,399,223 The accompanying notes are an integral part of these fmancial statements. $1,794,599 CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUND TYPES For The Year Ended December 31, 1987 General Over (Under) Budget Actual Budget Revenue: General property taxes $682,470 $714,892 $32,422 Licenses and permits 112,000 164,115 52,115 Intergovernmental 538,690 545,674 6,984 Charges for services 68,700 59,069 (9,631) Fines and forfeits 47,500 68,448 20,948 Interest on investments 16,756 16,756 Miscellaneous 16,000 48,332 32,332 Total revenue 1,465,360 1,617,286 151,926 Expenditures: Current General government 379,836 409,645 29,809 Public safety 538,430 530,785 (7,645) Highways and streets 380,895 383,271 2,376 Parks 85,940 82,117 (3,823) Miscellaneous 14,783 14,783 Capital outlay: General government 36,600 43,727 7,127 Public safety 34,550 29,174 (5,376) Highways and streets 13,750 10,185 (3,565) Parks 12,000 15,502 3,502 Total expenditures 1,482,001 1,519,189 37,188 Revenue over (under) expenditures (16,641) 98,097 114,738 Other increases (decreases): Operating transfers in Operating transfers out Contract for deed - land purchase Total other increases (decreases): 0 0 0 Net increase (decrease) in fund balance ($16,641) 98,097 $114,738 Fund balance - January 1 539,380 Residual equity transfer. From other funds 19,028 To other funds (14,113) Fund balance - December 31 $642,392 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA Statement 3 Totals (Memorandum Only) Special Revenue 1987 Actual Over Over (U) (der) Budget Budget Actual Budget 1986 Actual $682,470 $714,892 $32,422 $582,876 112,000 164,115 52,115 137,879 538,690 545,674 6,984 519,543 68,700 59,069 (9,631) 59,249 47,500 68,448 20,948 65,369 16,756 16,756 17,371 16,000 48,332 32,332 16,204 $0 $0 $0 1,465,360 1,617,286 151,926 1,398,491 379,836 409,645 29,809 363,256 538,430 530,785 (7,645) 464,499 380,895 383,271 2,376 344,767 85,940 82,117 (3,823) 74,144 14,783 14,783 10,149 36,600 43,727 7,127 109,745 34,550 29,174 (5,376) 681 13,750 10,185 (3,565) 1,737 12,000 15,502 3,502 8,285 1,482,001 1,519,189 37,188 1,377,263 0 0 0 (16,641) 98,097 114,738 21,228 0 $0 39,846 (39,846) 80,000 0 0 0 0 0 80,000 0 $0 ($16,641) 98,097 $114,738 101,228 2,377 541,757 440,529 19,028 (2,377) (16,490) $0 $642,392 $541,757 The accompanying notes are an integral part of these fmancial statements. C1TY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS - PROPRIETARY FUND TYPE For The Year Ended December 31, 1987 Statement 4 December 31, 1987 1986 Operating revenue: Water sales $21,492 $11,608 Sewer charges 49,942 41,655 Other operating revenue 6,916 4,676 Total operating revenue 78,350 57,939 Operating expenses: Personal services 29,577 16,204 Materials and supplies 4,532 3,623 Contractual services 8,295 710 Repair and maintenance 11,003 5,313 MWCC sewer charges 33,709 28,272 Depreciation: Purchased assets 1,082 984 Contributed assets 22,530 22,530 Utilities 2,849 2,229 Sewer service charge 956 2,110 Other 2,835 336 Total operating expenses 117,368 82,311 Net income (loss) from operations Other income : Maintenance agreement - MWCC Net other income Net income (loss) (39,018) (24,372) 10,072 10,072 7,100 7,100 (28,946) (17,272) Other increases : Credit arising from transfer of depreciation to contributions from property owners 22,530 22,530 Net other increases (decreases) 22,530 22,530 Net increase (decrease) in retained earnings (6,416) 5,258 Retained earnings - January 1 20,874 15,616 Retained earnings - December 31 $14,458 $20,874 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF CASH FLOWS - PROPRIETARY FUND TYPE For The Year Ended December 31, 1987 Statement 5 December 31, 1987 1986 Cash Flows from Operating Activities: Net income (loss) ($28,946) ($17,272) Noncash expenses (revenues) included in net income: Depreciation 23,612 23,514 Decrease (increase) in receivables, prepaid expenses and inventory (12,598) (6,952) Increase (decrease) in payables 7,006 (3,553) Net cash provided by operating activities Cash flows from investing activities: Purchase of fixed assets Net cash used by investing activities Net increase (decrease) in cash The accompanying notes are an integral part of these financial statements. (10,926) (4,263) (1,859) 0 (1,859) 0 ($12,785) ($4,263) CITY OF LINO LAKES, MINNESOTA Page 1of19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 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 of Lino Lakes is a public corporation formed under Minnesota Statutes 410. As such the City is under home rule charter regulations and applicable statutory guidelines. In accordance with the Codification of Govemmental Accounting and Financial Reporting Standards (GASB) Section 2100, "Defming the Reporting Entity", for fmancial reporting purposes the City's financial statements 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. As a result of applying the criteria of the Codification of Govemmental Accounting Standards Board Section 2100, certain organizations have been included or excluded from the City's financial statements: Entity Reason for inclusion/exclusion Included None Excluded: Lino Lakes Gas Utility Franchise Lino Lakes Senior Council FUNDS AND ACCOUNT GROUPS Operated as part of the Circle Pines Gas Utility. City of Lino Lakes exercises minimal management control. City receives annual share of gross revenue. Although the Senior Council uses a center funded by the City, the Senior Council has authority over the activities it finances as well as responsibility over fiscal matters. 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. 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. Page 2 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) FUNDS AND ACCOUNT GROUPS (CONTINUED) Proprietary Funds Enteprise Funds - to account for operations: (a) that are fmanced 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 providing goods or services to the general public on a continuing basis be fmanced or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenue 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. General Long -Term Debt - This account group contains the long -term obligations of the City including general obligation bonds, special assessment bonds, special obligation bonds and leases payable. MEASUREMENT FOCUS The accounting and reporting treatment applied to a fund is determined by its measurement focus. All Governmental Funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Governmental Fund operating statements present increases (revenues and other financing sources) and (expenditures and other financing uses) in net current assets. All Proprietary Funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with this activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. CITY OF LINO LAKES, MINNESOTA Page 3 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) BASIS OF ACCOUNTING The modified accrual basis of accounting is followed by the City for its governmental funds (General, Special Revenue, Debt Service and Capital Project) and Agency 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. Major revenue sources not susceptible to accrual include 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 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. 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. The modified accrual basis of accounting is used by the City for budgetary data. The City does not adopt budgets for Special Revenue Funds. The City monitors budget performance on the departmental basis. All amounts over budget have been approved by the City Council through the disbursement approval process. Significant budget variances are as follows for the current year: Over (Under) Revenue Budget Actual Budget Licenses and permits $112,000 $164,115 $52,115 Fines and forfeits 47,500 68,448 20,948 Expenditures Engineering 12,500 24,087 11,587 Independent accountants and auditors 11,000 15,881 4,881 Planning and zoning 11,000 24,381 13,381 Legal 43,500 53,550 10,050 Civil defense - capital outlay 13,000 0 (13,000) Page 4 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) BUDGETARY DATA (CONTINUED) License and pernuts exceeded budget because of increased development within the City in 1987. Fines and forfeits exceeded budget because of increased enforcement efforts. Engineering exceeded budget because of increased services requested by the City. Independent accountants and auditors exceeded budget because of increased services requested by the City including gas utility franchise negotiations and accounting services. Planning and zoning exceeded budget because of the City's comprehensive planning efforts and the hiring of a staff planner. Legal exceeded budget because of increased services requested by the City. General government buildings was under budget partially because of decreased energy charges. Civil defense - capital outlay was under budget because the City did not purchase the Civil Defense siren in 1987. Encumbrance accounting, under which purchase orders, contracts, and other commitments 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 not considered necessary to assure effective budgetary control or to facilitate effective cash planning and control. Any appropriations that need to be carried forward to the next year have to be reappropriated by the City Council from the fund balance of the fund involved. NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS 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. Investment earnings are accrued at the balance sheet date. Interest is allocated to funds based on the average cash balance during the year. Cash and investment balances were as follows at December 31, 1987 and 1986: December 31. 1987 1986 Cash - checking $13,450 $(55,091) Investments 2,282,490 1,470,937 Petty Cash and Change 150 150 Totals popdta $2,296 090 $1 526 996 In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 Page 5 of 19 NOTE - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) Deposits (Continued) Authorized collateral includes the legal investments described below, as well as certain first mortgage notes and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City treasurer or in a financial institution other than that furnishing the collateral. Bank Carrying Balances at December 31, 1987 are as follows: Balance Amount (1) Insured or collateralized by securities held by the City or its agent in the City's name $2,000,437 $1,923,246 (2) Collateralized with securities held by the pledging institution's trust department in the City's name 0 0 (3) Uncollateralized or collateralized with securities not in the City's name 0 0 Totals $ $1,923,246 Categories 2 and 3 are not procedures that are authorized by Minnesota statutes. Investments The City is authorized by Minnesota Statutes to invest in the following: (a) Direct obligations or obligations guaranteed by the United States or its agencies. (b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above. (c) General obligations of the State of Minnesota or any of its municipalities. (d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. (e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. (1) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. (g) Future contracts sold under authority of Minnesota Statutes 471.56, subd. 5. Page 6 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2. - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) Investments (Continued) The City's investments are categorized below to give an indication of the risk assumed by the entity at year -end. Category 1 includes investments that are insured or registered or for which the securities are held by the City or its agent in the City's name. Category 2 includes uninsured or unregistered investments for which the securities are held by the broker's or dealer's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the broker or dealer, or by its trust department or agent but not in the City's name. Credit Risk Category Carrying Market Investment Type 1 2 3 Amount Value US Government or its Agencies $0 $67,972 SO $67,972 $67,972 Investment Company Shares 304.772 304.772 Totals $372,694 $372,694 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. MUNICIPAL STATE AID Municipal State Aid (MSA) is recognized as revenue in the period the funds are designated for specific construction projects. LOCAL GOVERNMENT AID 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 Property tax levies are set by the Council in October each year, and are certified to Anoka County for collection in the following year. The County spreads all levies over assessable property. Such taxes become a lien on January 1 and are recorded as receivable by the City at that date. 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 December) are remitted to the City each January. 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 fmance expenditures of the current period. In practice, current and delinquent taxes and homestead credits received by the City during the year are recognized as revenue for the current year. Additionally, taxes collected by the County by December 31 (remitted to the City the following January) 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. CITY OF LINO LAKES, MINNESOTA Page 7 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUEDI PROPERTY TAX (CONTINUED) 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 as defen:ed revenue. Taxes on homestead property (as defmed 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 1987 and 1986 totaled $197,746 and $172,431 respectively. Receipt of property taxes from this "Fiscal Disparities Pool" does not increase or decrease total tax revenue. SPECIAL ASSESSMENTS 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. Special assessment principal and interest is recognized as revenue in the year of collection. 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. Pursuant to State Statutes, a property shall be subject to tax forfeit sale after 3 years unless it is homesteaded, agricultural, or seasonal recreational land (as defmed in State Statutes) in which event the property is subject to such sale after 5 years. PARK DEDICATION FEE REVENUE RECOGNITION The City receives park dedication fees from developers. The amount due the City is payable when land is platted. The City has granted a delay in collection from several developers pending actual development of the platted property. The amount not collected is recorded as an account receivable, offset by deferred revenue. The amount of uncollected fees totalled $5,060 at December 31, 1987 and 1986. SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billings for natural gas sales by a neighboring City which provides service within the City of Lino Lakes. The amount earned for 1987 totaled $9,615. This amount was received in May, 1988 and will be recorded as revenue (available criteria) in 1988. INVENTORIES - GOVERNMENTAL TYPE FUNDS The original cost of materials and supplies has been recorded as expenditures and/or expenses at the time of purchase. The City does not maintain significant levels of material or supplies. Page 8 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) INVENTORIES - PROPRIETARY TYPE FUNDS Inventories of the proprietary funds are stated at the lower -of -cost or market cost being determined by the first -in, first -out method. FIXED ASSETS - GENERAL General fixed assets are recorded as expenditures of the governmental funds at the time of purchase. Such assets are capitalized, at cost, in the general fixed asset group of accounts except for certain improvements (roads, bridges, curbs, gutters, streets, sidewalks, drainage systems 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: Balance Balance 1/1/87 Additions Deletions 12/31/87 Land $298,943 Buildings & improvements 516,163 Wells 6,216 Furniture and equipment 487.879 Totals $103.230 $42.596 $298,943 516,163 6,216 548.513 $7,585,504 $103,230 $42,596 1,369,835 =11111119111110=111111111 ====== The City does not maintain detailed records nor accounting controls over general fixed assets. The amounts presented in the financial statements represent partial accumulations of historical accounting records without regard to physical listings. 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: Water and sewer Contributed: Water and sewer Depreciable Lives 5 - 25 Years 20 - 50 Years Depreciation 1987 1986 $1,082 $984 22.530 22.530 Totals $23,612 $23,514 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 contributions 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 principles. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) FIXED ASSETS - PROPRIETARY FUNDS (CONTINUED) A summary of proprietary fund assets at December 31,1987 is as follows: Well $18,500 Buildings and Structures 48,690 Machinery and Equipment 17,421 Water and Sewer lines 973.802 Total 1,058,413 Less: Accumulated Depreciation (236.217) Net Fixed Assets $822,196 CITY INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31, 1987: Page 9 of 19 Balance Balance 1/1/87 Additions Deletions 12/31/87 Bonded Debt: General Obligation $72,500 $78,000 $35,000 $115,500 Special Assessment 3,054,320 1,650,000 509,820 4,194,500 Contract Payable 80,000 16,000 64,000 Assessments Payable 148.096 148.096 Totals $3,354,916 $1,728,000 $560,820 $4,522,096 All bond issues outstanding at December 31, 1987 are backed by the full faith and credit of the City, including special assessment bond issues. Outstanding balances at December 31, 1987, principal and interest payments due in 1988, final due dates, interest rates, and other pertinent data are presented in the Combined Schedule of Indebtedness (Exhibit 1). Principal and interest payments through maturity are presented in Exhibit 3. Page 10 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) CITY INDEBTEDNESS (CONTINUED) The Minnesota Municipal Industrial Development Act allows Cities to issue industrial development bonds for the purpose of financing private development, subject to State approval. Under the terms of the bond issues authorized and the requirements of the Minnesota Industrial Development Act, the City has no obligation for the payment of principal or interest other than its interest in the Industrial Development Project(s) which have been excluded from these financial statements. The annual requirement to amortize all bonded debt outstanding at December 31,1987 including interest payments of $513,375 are as follows: General Special Obligation Assessment Yet Bonds Bonds Total 1988 $123,296 $2,245,112 $2,368,408 1989 257,122 257,122 1990 1,899,769 1,899,769 1991 157,218 157,218 1992 35,955 35,955 1993 33,954 33,954 1994 21,194 21,914 1995 17,235 17,235 1996 16,350 16,350 1997 15.450 15.450 Totals $123,296 $4,704,079 823 375 The amount to be provided in the General Long -Term Debt Group of Accounts represents future tax levies, special assessments and MSA grants for the retirement of bonds payable. Total scheduled deferred tax levies to retire general long -term debt bonds are $192,632 . 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. CITY OF LINO LAKES, MINNESOTA Page 11of19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from taxes. The City of Lino Lakes legal debt margin for 1987 and 1986 is computed as follows: 1987 1986 Assessed value (after fiscal disparities and tax increment) $32,019,057 $29,012,612 Debt limit (7 -1/3% of assessed value) $2,348,064 $2,127,591 Amount of debt applicable to debt limit Total bonded debt $4,310,000 $3,126,820 Less: Nonapplicable debt (i.e., tax increment, revenue, and special assessment supported) 4,194,500 3,054,320 Less: Cash and investments in related Debt Service Funds 728 0 Total debt applicable to limit $114,772 $72,500 Legal debt margin $2,223,292 $2,055,091 Legal debt margin is calculated on general obligation bond issues only (i.e., this does not include General Obligation Debt with special assessments pledged for payment or Revenue/Enterprise Fund bonded debt). COMPENSATED ABSENCES The accrued liability for compensated absences is not recorded as a liability in the General Long -Term Debt Group of Accounts (for governmental funds) nor the Proprietary Funds. Unused vacation, the portion of sick leave payable as severance pay, and the compensatory time are not considered material to these fmancial statements. Unpaid vacation pay totalled $7,341 and $3,655 at December 31, 1987 and 1986 respectively. The City also has an unrecorded contingent liability for unused employee sick leave of $117,000 and $95,000 at December 31, 1987 and 1986 respectively. Page 12 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) DEFERRED REVENUE Deferred revenue at December 31, 1987 consisted of the following amounts: Uncollected park dedication fees $5,060 Property tax revenue 27,995 Special assessment revenue 2.086.685 Totals $2,119,740 RETIREMENT - MULTIPLE EMPLOYER PERS The City participates in the Public Employees Retirement Fund and the Police and Fire Fund Pension Plans as administered by the Public Employees Retirement Association (PERA) under Minnesota Statutes Chapters 353 and 356, which is a cost sharing multiple - employer Public Employee Retirement System (PERS). This plan covers substantially all employees except those qualifying as temporary or seasonal employees. The City's current year covered payroll and total current year payroll for all employees is $614,429 and $667,969 respectively. A summary of plan eligibility requirements is available at PERA. Such retirement terms are governed by State Statute. 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 retirement program provides benefits to members upon disability and to survivors upon death of eligible members. 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%n of said "average salary" for the period thereafter. COORDINATED MEMBERS- 1% of the average salary over the highest five successive 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. CITY OF LINO LAKES, MINNESOTA Page 13 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) RETIREMENT - MULTIPLE EMPLOYER PERS (CONTINUED) 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- 1/29'0 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. The City made employer contributions of $45,091 (7.34%) of current covered payroll and employee contributions of $34,372 (5.59%) of current year covered payroll. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess the PERA's funding status on a going - concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among Public Employees Retirement Systems and employers. The PERA does not make separate measurements of assets and pension benefit obligation for individual employers. The pension benefit obligations of the PERA as of June 30, 1987, were as follows: Public Employees Public Employees Retirement Fund Police &Fire Fund (in $1.000) (in $1.000) Total pension benefit obligation $2,839,047 $437,229 Net assets available for benefits, at market 2.608.691 549.534 Unfunded/(assets in excess of) pension benefit obligation $230,356 ($112,3051 PERA does not make separate measurements for individual employers. The City of Lino Lakes made employer contributions totaling $40,730 which represent .04% of total contributions of all employers participating in the system ($92,987,000) for the year ended June 30, 1987. The City's contributions were made by the required due dates. Information on investment activity and a listing of specific investments of the PERA can be obtained by writing to the Minnesota State Board of Investment. Ten -year historical trend information is available in the published comprehensive annual financial report of the Public Employees Retirement Association. During 1987 and as of June 30, 1987, PERA held no securities issued by the City or other related parties. The City made employer contributions of $24,423 to the Federal Social Security Retirement Plan. Page 14 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 2 - DETAIL NOTES ON ALL FUND AND ACCOUNT GROUPS (CONTINUED) DESIGNATIONS AND RESERVES OF FUND EQUITY Major fund equity designations at December 31, 1987 and 1986 are as follows: December 31. 1987 1986 General Fund Designated for prepaid insurance $52,593 $53,714 Designated for LAWCON matching share 0 30,000 Special Revenue Fund: Designated for ensuing years' budget 2,377 Debt Service Funds: Reserved for debt retirement 788,243 792,670 Capital Projects Funds: Designated for capital improvements 928,322 673,335 Designated for committed contracts 7,619 403,918 Designated for equipment acquisition 98,018 43,417 Designated for park improvements 116.870 84.663 Totals $1,991,665 $2,084,094 DEFICIT FUND BALANCES The following funds had deficits at December 31, 1987: Deficit Fund Capital Project Funds: Lakes Addition #7 $17,288 Reiling Road 2,834 Main Street 59,689 West Shadow Lake Drive 10,819 Deer Pass Trail 997 80th Street 17,972 Ash Street East Extension 3,289 Otter Bay 1,808 West Central Sewer & Water Trunk 5,500 74th Street 803 1160 Main 11,300 2nd Avenue 55 Ash Street Sewer 49,887 The above deficits will be funded by permanent bonding, direct charges to developers, or transfers from other City Council designated funds. CITY OF LINO LAKES, MINNESOTA Page 15 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 3 - COMBINED FINANCIAL STATEMENTS The 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 combined 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 combining of unlike purpose funds and cannot be construed to be indicative of the overall financial position of the City. (2) Prior year "Total" columns likewise may combine unlike purpose funds (as in 1 above) and additionally do not present detail components 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 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 fmanced by an 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 cancellation 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 fmancial 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/ Percent Collection Scheduled Actual Levied 1986/87 $42,000 $42,000 100% 1987/88 126,428 117,000 92.54 Page 16 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 6 - DEFERRED TAX LEVIES - GENERAL DEBT WITH SPECIAL ASSESSMENTS PLEDGED 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 benefited properties. When the bond issue to be fmanced 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 fmancing. Alternatively, the City 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 with special assessments pledged were and are scheduled to be as follows: Levy/ Percent Collection Schrahrlid Actual Levied 1987/88 $29,801 $0 0.00% 1988/89 34,838 1989/90 35,639 1990/91 2,508 1991/92 1,689 1992/93 839 NOTE 7 - METROPOLITAN WASTE CONTROL COMMISSION 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 succeeding calender year and payable, by the City, in the second succeeding calendar 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). 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 judgement 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. The disbursement of funds received under these programs generally requires compliance with the 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 fmancial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 1987. CITY OF LINO LAKES, MINNESOTA Page 17 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 10 DEFERRED COMPENSATION PLAN The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The deferred compensation plan is offered by the International City Managers Association (ICMA). The plan, available to all employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to the employees until termination, retirement, death or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or their beneficiary) solely the property and rights of the City (without being restricted to the provisions of benefits under the plan), subject only to the claims of the City's general creditors. Participants' rights under the plan are equal to those of general creditors of the City in an amount equal to the fair market value of the deferred account for each participant. For the year ended December 31, 1987, the following deferred payroll deductions were remitted to the plan: Employee $18,110 Employer Total $18 110 The value of total remittances at December 31, 1987 was $59,420. This amount is presented in an agency fund in accordance with GASB Statement No. 2. NOTE 11 - TAX INCREMENT DISTRICTS The City of Lino Lakes is the administrating authority for the following a Economic Development District established under MS 273.71 in 1987. Within the Economic Development District is Housing Financing District #1 -1. The duration of the district is 25 years. Original assessed value $19,080 Current assessed value 19.080 Captured assessed value 0 Retained by authority 0 Shared with other taxing districts 0 Total Bonds issued 0 Amounts redeemed 0 Outstanding bonds at December 31,1987 0 Page 18 of 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 12 - CHANGE IN ACCOUNTING PRINCIPLE The Governmental Accounting Standards Board (GASB) issued in January 1987, Statement 6 "Accounting and Financial Reporting for Special Assessments ". Statement 6 established accounting and financial reporting standards for capital improvements financed by special assessments. The City adopted the principles of Statement 6 for the year ended December 31, 1987 which resulted in the following changes: *Special assessment fund type has been eliminated. *Special assessment debt is now accounted for within the General Long -Term Debt Account Group. Fund balances for the years ended December 31,1987 and 1986 were restated as follows: Fund balance at December 31, 1986 as previously reported Cumulative effect of change in accounting for special assessment revenue Reclassification of special assessment debt to general long -term debt Debt Capital Special Service Project Assessment Fund Fund Fund $1,985 $129,793 $404,498 Changes in fund classification 745.582 Fund balance at December 31, 1986 as restated $747,567 (2,337,754) 3,054,320 375.482 1.121.064 $505,275 Fund balances for the years ended December 31, 1987 and 1986 were restated as follows: Fund balance at December 31, 1987 before change Cumulative effect of change in accounting for special assessment revenue Reclassification of special assessment debt to general long -term debt Changes in fund classification Fund balance at December 31, 1987 after change Debt Capital Special Service Project Assessment Fund Fund Fund $5,780 $211,572 ($630,958) (2,086,356) 4,194, 500 723.603 753.583 (1.477.186) $729 383 $965,155 $0 CITY OF LINO LAKES, MINNESOTA Page 19 of 19 NOTES TO FINANCIAL STATEMENTS December 31, 1987 NOTE 12 - CHANGE IN ACCOUNTING PRINCIPLE (CONTINUED) The effect of the change on net increase (decrease) in fund balance for the year ended December 31, 1987 is as follows: Before After Change in Change in Accounting Accounting Increase Principle Principle (Decrease) Debt Service Fund: Revenue $43,599 $717,244 $673,645 Expenditures 39.804 731.181 691.377 Revenue over (under) expenditures 3,795 (13,937) (17,732) Other increases (decreases) 12.100 12.100 Net increase (decrease) in fund balance $3,795 ($1,837 $5,632 Capital Project Fund: Revenue $52,230 $755,205 $702,975 Expenditures 62.824 2.020.893 1.958.069 Revenue over (under) expenditures (10,594) (1,265,688) (1,255,094) Other increases (decreases) 92.373 1.725.568 1.633.195 Net increase (decrease) in fund balance $81,779 $459,880 $378,101 Special Assessment Fund: Revenue $1,125,224 $0 ($1,125,224) Expenditures 2.139.626 0 (2.139.626) Revenue over (under) expenditures (1,014,402) 0 1,014,402 Other increases (decreases) (21.054) 0 21.054 Net increase (decrease) in fund balance ($1,035,456) $0 ($1,035,456) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA Statement 6 GENERAL FUND BALANCE SHEET December 31, 1987 December 31, Assets 1987 1986 Cash and investments $490,160 $387,677 Accounts receivable 5,249 2,706 Due from other governmental units 21,197 4,801 Taxes receivable: Delinquent 26,681 91,942 Due from county 115,240 120,991 Assessments receivable: Delinquent 329 Prepaid expenses 52,593 53,714 Total assets $711,449 $661,831 Liabilities and Fund Balance Liabilities: Accounts payable $23,939 $19,977 Salaries payable 2,829 1,723 Customer deposits 10,396 8,357 Due to other govemmental units 4,883 452 Deferred revenue 27,010 91,942 Total liabilities 69,057 122,451 Fund Balance: Unreserved: Designated 52,593 83,714 Undesignated 589,799 455,666 Total fund balance 642,392 539,380 Total liabilities and fund balance The accompanying notes are an integral part of these fmancial statements. $711,449 $661,831 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, 1987 1987 Statement 7 Page 1 of 4 Over (under) 1986 Budget Actual Budget Actual Revenue: Memorandum General property taxes: only Current and delinquent $538,660 $432,573 Fiscal disparities 160,026 121,076 Penalties and interest 16,206 29,227 Total general property taxes $682,470 714,892 $32,422 582,876 Licenses and permits: Non- business 13,303 15,990 Business 150,812 121,889 Total licenses and permits 112,000 164,115 52,115 137,879 Intergovernmental: State: Local government aid 232,460 232,159 (301) 219,728 Homestead credit 265,530 265,530 237,047 Mobile home homestead credit 1,520 1,520 1,289 Police state aid 26,800 26,828 28 18,722 Police training reimbursement 1,099 1,099 320 MSA maintenance 13,900 13,935 35 13,935 Surcharge rebate 4,573 4,573 Section 8 housing 144 Video game refund 30 30 Total intergovernmental 538,690 545,674 6,984 491,185 Charges for services: General government 18,000 4,096 (13,904) 8,539 Fees retained from collection for other governments - SAC 3,349 3,349 746 Public safety 50,700 51,624 924 49,964 Total charges for services 68,700 59,069 (9,631) 59,249 Fines and forfeits 47,500 68,448 20,948 65,369 Interest on investments 16,756 16,756 15,736 Miscellaneous: Sale of property 6,500 6,500 Other 16,000 41,832 25,832 16,204 Total miscellaneous 16,000 48,332 32,332 16,204 Total revenue 1,465,360 1,617,286 15.1,926 _ 1,368,498 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 7 Page 2 of 4 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1987 1987 Over (under) 1986 Budget Actual Budget Actual Expenditures: Memorandum General government: only Mayor and council: Current: Personal services $11,150 $17,497 $6,347 $16,344 Supplies 33 Other services and charges 11,050 3,728 (7,322) 3,858 Total mayor and council 22,200 21,225 (975) 20,235 Elections: Current: Personal services 2,500 2,202 (298) 4,759 Supplies 500 225 (275) 108 Other services and charges 450 158 (292) 1 Capital outlay 800 826 26 921 Total elections 4,250 3,411 (839) 5,789 Administration: Current Personal services 137,440 139,849 2,409 123,047 Supplies 7,600 6,689 (911) 7,689 Other services and charges 10,550 10,084 (466) 9,579 Capital outlay 500 (500) Total administration 156,090 156,622 532 140,315 Assessing: Current Personal services 14,341 19,241 4,900 14,173 Supplies 200 (200) 130 Other services and charges 275 1,019 744 141 Total assessing 14,816 20,260 5,444 14,444 Consultants: Current ( personal services): Engineer 12,500 24,087 11,587 17,742 Independent accountants and auditor 11,000 15,881 4,881 17,752 Planning and zoning 11,000 24,381 13,381 26,085 Legal 43,500 53,550 10,050 49,432 Forest Lake Service Bureau 600 700 100 600 Economic development 1,000 2,000 1,000 Vadnais Heights watershed 224 224 187 Surface water management 20,000 20,683 683 Other 3,000 4,263 1,263 3,180 Total consultants 102,600 145,769 43,169 114,978 Planning and zoning commission: Current Personal services 400 550 150 500 Other services and charges 990 86 (904) 77 Total planning and zoning commission 1,390 636 (754) 577 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA Statement 7 Page 3 of 4 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31,1987 1987 Over (Under) 1986 Budget Actual Budget Actual Expenditures (continued): Memorandum General government (continued) only Charter commission: Current Other services and charges $200 $5 ($195) Total charter commission 200 5 (195) $0 General government buildings: Current Personal services 8,350 9,962 1,612 9,598 Supplies 5,000 3,782 (1,218) 4,297 Other services and charges 66,240 48,799 (17,441) 53,944 Capital outlay 35,300 42,901 7,601 108,824 Total general government buildings 114,890 105,444 (9,446) 176,663 Total general government 416,436 453,372 36,936 473,001 Public safety: Police: Current Personal services 312,185 320,456 8,271 280,995 Supplies 35,900 40,419 4,519 28,543 Other services and charges 22,100 15,272 (6,828) 14,985 Capital outlay 28,250 29,026 776 681 Total police 398,435 405,173 6,738 325,204 Fire protection: Current Personal services 108 108 12 Supplies 701 701 Contractual services 107,000 106,711 (289) 95,089 Other services and charges 1,726 1,726 55 Total fire protection 107,000 109,246 2,246 95,156 Protective inspection: Current Personal services 36,300 35,723 (577) 35,165 Supplies 3,200 2,460 (740) 1,727 Other services and charges 3,400 1,710 (1,690) 2,404 Capital outlay 5,000 148 (4,852) Total protective inspection 47,900 40,041 (7,859) 39,296 Civil defense: Current Personal services 90 108 18 217 Supplies 850 516 (334) 202 Other services and charges 1,080 779 (301) 763 Capital outlay 13,000 (13,000) Total civil defense 15,020 1,403 (13,617) 1,182 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 7 Page 4 of 4 GENERAL FUND STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31,1987 1987 Over (Under) 1986 Budget Actual Budget Actual Expenditures: (continued) Memorandum Public safety: (continued) only Animal control: Current Supplies 125 (125) Contractual services 4,500 4,096 (404) 4,342 Total animal control 4,625 4,096 (529) 4,342 Total public safety 572,980 559,959 (13,021) 465,180 Highways and streets: Current: Personal services 137,145 132,192 (4,953) 152,916 Supplies 42,500 48,953 6,453 32,250 Contractual services: Streets 173,750 174,583 833 122,751 Signs 5,000 6,263 1,263 1,368 Street lighting 11,000 10,035 (965) 9,671 Other services and charges 11,500 11,245 (255) 25,811 Capital outlay 13,750 10,185 (3,565) 1,737 Total highways and streets 394,645 393,456 (1,189) 346,504 Parks: Current: Personal services 47,290 56,276 8,986 47,673 Supplies 26,075 18,724 (7,351) 18,122 Other services and charges 8,175 3,795 (4,380) 8,349 Contractual services 4,400 3,322 (1,078) Capital outlay 12,000 15,502 3,502 8,285 Total parks 97,940 97,619 (321) 82,429 Miscellaneous: Current: Items purchased for resale 8,731 8,731 5,577 Other 6,052 6,052 4,572 Total miscellaneous 0 14,783 14,783 10,149 Total expenditures 1,482,001 1,519,189 37,188 1,377,263 Revenue over (under) expenditures (16,641) 98,097 114,738 (8,765) Other increases (decreases): Operating transfer from Special Revenue Fund 39,846 Contract for deed - land purchase 80,000 Total other increases (decreases) 0 0 0 119,846 Net increase (decrease) in fund balance ($16,641) 98,097 $114,738 111,081 Fund balance - January 1 539,380 428,299 Residual equity transfers: From other funds 19,028 To other funds (14,113) Fund balance - December 31 $642,392 $539,380 The accompanying notes are an integral part of these financial statements CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND FEDERAL REVENUE SHARING BALANCE SHEET December 31, 1987 Statement 8 December 31, Assets 1987 1986 Cash and investments $1,635 Due from other governmental units 742 Total assets $0 $2,377 Fund Balance Fund Balance: Designated for ensuing year's budget $2,377 Total fund balance The accompanying notes are an integral part of these fmancial statements. $0 $2,377 Revenue: Intergovernmental: Federal grants: CITY OF LINO LAKES, MINNESOTA Statement 9 FEDERAL REVENUE SHARING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 1987 1987 Over (Under) 1986 Budget Actual Budget Actual Memorandum Only Federal revenue sharing $28,358 Interest on investments 1,635 Total revenue $0 $0 $0 29,993 Expenditures: Other Total expenditures Revenue over expenditures Other increases (decreases): Operating transfer to General Fund Net increase (decrease) in fund balance Fund balance - January 1 Residual equity transfer Fund balance - December 31 0 0 0 0 0 0 0 29,993 $0 (39,846) 0 $0 (9,853) 2,377 12,230 (2,377) $0 $2,377 The accompanying notes are an integral part of these financial statements. Assets Cash and investments Cash held with bond purchaser Taxes receivable: Delinquent Due from county Special assessments receivable: Delinquent Deferred Special deferred City property Tax forfeit Due from County Total assets CITY OF LINO LAKES, M[NNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 1987 1985 Certificates Improvement Improvement Improvement of Bonds Bonds Bonds Indebtedness of 1980 of 1981 of 1982 $728 $74,833 $20,677 $352,993 922 60 5,052 12 22,886 18,571 72,508 121,242 34 262 110,728 3,784 $6,702 $74,867 $39,510 $684,213 Liabilities and Fund Balance Liabilities: Cash overdraft Accounts payable Deferred revenue $922 $34 $18,833 $327,424 Total liabilities 922 34 18,833 327,424 Fund Balance: Reserved for debt retirement 5,780 74,833 20,677 356,789 Unreserved: Undesignated Total fund balance 5,780 74,833 20,677 356,789 Total liabilities and fund balance $6,702 $74,867 $39,510 $684,213 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 10 Temporary Temporary Improvement Improvement Improvement Improvement Improvement Totals Borxls Bonds Bonds Bonds Bonds December 31, of 1983 of 1984 of 1985 of 1986 of 1987 1987 1986 Memorandum Only $6,961 $10,170 $230,810 $42,532 $37,625 $777,329 $466,196 325,227 982 4,357 5,064 6,516 165,517 999 189,402 290,525 70,880 14,585 1,174,468 98,075 48,107 1,497,194 1,856,207 42,925 11,974 54,899 42,925 7,768 10,510 139,520 148,097 111,024 2,066 5,850 $77,841 $24,755 $1,580,629 $195,041 $97,706 $2,781,264 $3,140,050 $49,634 738 $70,880 $14,585 $1,347,753 $152,509 $60,081 $1,993,021 2,342,111 70,880 14,585 1,347,753 152,509 60,081 1,993,021 2,392,483 6,961 10,170 232,876 42,532 37,625 788,243 792,670 (45,103) 6,961 10,170 232,876 42,532 37,625 788,243 747,567 $77,841 $24,755 $1,580,629 $195,041 $97,706 $2,781,264 $3,140,050 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA 1 DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND I CHANGES IN FUND BALANCE For The Year Ended December 31, 1987 1985 1 Certificates Improvement Improvement Improvement Improvement of Bonds Bonds Bonds Bonds t Indebtedness of 1977 of 1980 of 1981 of 1982 Revenue: General property taxes: Current and delinquent $29,995 $218 I Penalties, interest and other 1,227 459 Total general property taxes 31,222 677 Intergovernmental: I State: Homestead credit 11,764 Total intergovernmental 11,764 Special assessments: I Current and delinquent $3,481 $88,158 $7,510 144,369 Prepayments 56,873 Penalties and interest 31,778 25,897 Total special assessments 3,481 119,936 7,510 227,139 I Interest on investments 613 1,548 15,984 Total revenue 43,599 3,481 119,936 9,058 243,800 Curren' I Professional services Debt Service: I Principal retirement 35,000 6,320 5,000 485,000 Interest 4,804 158 2,713 29,910 Paying agent fees 200 373 Total expenditures 39,804 6,478 0 7,913 515,283 I Revenue over (under) expenditures 3,795 (2,997) 119,936 1,145 (271,483) Other increases: I Bond proceeds Total other increases 0 0 0 0 0 Net increase (decrease) in fund balance 3,795 (2,997) 119,936 1,145 (271,483) Fund balance - January 1 1,985 19,648 (45,103) 19,532 628,272 Residual equity transfer (16,651) 1 Fund balance - December 31 $5,780 $0 $74,833 $20,677 $356,789 1 1 1 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 11 Temporary Temporary Improvement Improvement Improvement Improvement Improvement Totals Bonds Bonds Bonds Bonds Bonds December 31, of 1983 of 1984 of 1985 of 1986 of 1987 1987 1986 Memorandum Only $30,213 $30,994 1,686 280 31,899 31,274 $16,274 16,274 332 16.606 11,764 12,766 11,764 12,766 $5,499 $99,126 $20,288 384,705 142,646 4,385 173,192 2,106 $24,691 261,247 91,831 1,185 58,860 11,069 272,318 22,394 24,691 704,812 234,477 533 5,087 2,698 834 27,629 28,925 11,602 277,405 25,092 25,525 776,104 307,442 6,776 10,000 3,500 544,820 149,820 6,050 2,345 123,950 15,417 185,347 200,001 241 200 1,014 769 16,050 5,845 124,191 15,617 0 731,181 357,366 556 5,757 153,214 9,475 25,525 44,923 (49,924) 12,100 12,100 325,227 0 0 0 0 12,100 12,100 325,227 556 5,757 153,214 9,475 37,625 57,023 275,303 6,405 4,413 79,358 33,057 0 747,567 472,264 304 (16,347) $6,961 $10,170 $232,876 $42,532 $37,625 $788,243 $747,567 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1987 Parks Capital Community Interim and Improvement Development Construction Lakes Playgrounds Projects Block Grant Fund Addition #7 Assets Cash and investments $113,258 $97,951 Cash held with bond purchaser Accounts receivable 8,826 Taxes receivable: Delinquent 332 Due from County 67 Special assessments receivable: Deferred Due from other governmental units Total assets Liabilities and Fund Balance $5,846 $122,084 $98,350 $5,846 $0 $0 Liabilities: Cash overdraft $2,070 $17,288 Accounts payable $154 3,659 Contracts payable Due to other governmental units Deferred revenue 5,060 $332 Total liabilities 5,214 332 5,729 $0 17,288 Fund balance (deficit): Unreserved: Designated: Committed contracts Capital improvements 117 Equipment acquisition 98,018 Park improvements 116,870 Undesignated (17,288) Total fund balance 116,870 98,018 117 0 (17,288) Total liabilities and fund balance $122,084 $98,350 $5,846 $0 $0 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 12 Page 1 of 2 Baldwin Lake West Mobile Reiling Rice Lake North Main Shadow Sunset Deer Pass 80th Home Court Road Estates Road Street Lake Drive Road Trail Street $39,869 $439,191 $3,060 $153,060 $39,869 $0 $439,191 $3,060 $0 $0 $153,060 $0 $0 $1,600 $2,048 $10,819 $130 $17,972 28 $1,773 $14 368 1,206 58,367 499 $24,403 1,604 57,641 24,403 2,834 60,140 1,618 59,689 10,819 $0 997 17,972 4,412 15,466 374,639 1,442 153,060 (2,834) (59,689) (10,819) (997) (17,972) 15,466 (2,834) 379,051 1,442 (59,689) (10,819) 153,060 (997) (17,972) $39,869 $0 $439,191 $3,060 $0 $0 $153,060 $0 $0 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 1987 Comprehensive Reshanau Ash Street Area Wide Lake East Otter Water Estates South D. Erickson's Extension Bay Assets Cash and investments $294,345 $109,206 $69,361 Cash held with bond purchaser Accounts receivable Taxes receivable: Delinquent Due from County Special assessments receivable: Deferred Due from other governmental units Total assets Liabilities and Fund Balance $294,345 $109,206 $69,361 $0 $0 Liabilities: Cash overdraft $3,289 $1,491 Accounts payable $10,962 $3,409 $3,860 317 Contracts payable 41,359 17,149 14,255 Due to other governmental units 281 421 Deferred revenue Total liabilities 52,321 20,839 18,536 3,289 1,808 Fund balance (deficit): Unreserved: Designated: Committed contracts 1,751 1,456 Capital improvements 242,024 86,616 49,369 Equipment acquisition Park improvements Undesignated (3,289) (1,808) Total fund balance 242,024 88,367 50,825 (3,289) (1,808) Total liabilities and fund balance $294,345 $109,206 $69,361 $0 $0 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 12 Page 2 of 2 1 West Central Totals 1 Sewer & 74th 1160 2nd 4th Ash Street December 31, Water Trunk Street Main Street Avenue Avenue Sewer 1987 1986 Memorandum I Only $1,319,301 $936,192 147,875 8,826 5,060 1 332 3,395 67 1 $94,317 94,317 $150,329 156,175 5,135 $0 $0 $0 $0 $150,329 $94,317 $1,579,018 $1,097,657 1 $5,500 $143,516 $47,123 $252,846 $312,178 I $803 $11,300 $55 1,224 388 38,314 23,810 2,376 135,211 202,045 84,350 24,403 I 94,317 99,709 29,946 5,500 803 11,300 55 144,740 144,204 610,430 592,382 1 7,619 403,918 5,589 928,322 673,335 I 98,018 43,417 116,870 84,663 (5,500) (803) (11,300) (55) (49,887) (182,241) (700,058) I(5,500) (803) (11,300) (55) 5,589 (49,887) 968,588 505,275 $0 $0 $0 $0 $150,329 $94,317 $1,579,018 $1,097,657 1 1 1 1 1 The accompanying notes are an integral part of these financial statements. 1 Revenue: General property taxes: Current and delinquent $1,207 Penalties, interest and other 2,546 Total property taxes 3,753 Connection charges Intergovernmental: State: LAWCON $1,992 MSA construction Federal: LAWCON 1,455 Local: CDBG $25,093 Other Total intergovernmental 25,093 3,447 Special assessments: Prepayments Total special assessments Interest on investments $8,607 2,459 Park dedication fees Donations 8,871 Other Total revenue 17,478 6,212 25,093 3,447 $0 $0 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1987 1 1 Parks Capital Community Interim and Improvement Development Construction Lakes Playgrounds Projects Block Grant LAWCON Fund Addition #7 1 1 1 1 1 1 1 1 1 1 1 1 1 Fund balance (deficit) - January 1 131,907 43,417 1,713 (47,244) (258,457) (17,288) Residual equity transfer (30,048) 44,161 258,457 Fund balance (deficit) - December 31 $116,870 $98,018 $117 $0 $0 ($17,288) 1 Expenditures: General government Current Personal services 4,443 Contractual services 340 Supplies 1,741 364 Capital outlay: General government Public safety 167 Highways and streets 28,904 Parks 386 800 Construction costs Sewer abatement 22,246 Total expenditures 2,467 29,871 26,689 364 0 0 Revenue over (under) expenditures 15,011 (23,659) (1,596) 3,083 0 0 Other increases: Bonds proceeds 78,260 Total other increases 0 78,260 0 0 0 0 Net increase (decrease) in fund balance 15,011 54,601 (1,596) 3,083 0 0 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 13 Page 1 of 2 Baldwin Lake West Mobile Tomahawk Reiling Rice Lake North Main Shadow Sunset Deer Pass Home Court Trail Road Estates Road Street Lake Drive Road Trail $2,453 $33,011 $8,126 $45 2,453 $0 $0 33,011 $0 $0 $0 8,126 45 0 2.453 0 0 55 167,252 1,941 59,359 79 11,773 55 167,252 1,941 59,359 0 79 11,773 (55) (134,241) (1,941) (59,359) 0 8,047 (11,728) 9,473 11,108 0 0 0 0 9,473 0 0 0 11,108 2,453 0 (55) (134,241) 7,532 (59,359) 0 8,047 (620) 13,013 304 (2,779) 513,292 (6,090) (330) (10,819) 145,013 (377) (304) $15,466 $0 ($2,834) $379,051 $1,442 ($59,689) ($10,819) $153,060 ($997) ✓ v The accompanying notes are an integral part of these financial statements. Revenue: General property taxes: Current and delinquent Penalties, interest and other Total property taxes Connection charges Intergovernmental: State: LAWCON MSA construction Federal: LAWCON Local: CDBG Other Total intergovernmental Special assessments: Prepayments Total special assessments Interest on investments Park dedication fees Donations Other Total revenue Expenditures: General government Current Personal services Contractual services Supplies Capital outlay: General government Public safety Highways and streets Parks Construction costs Sewer abatement Total expenditures Revenue over (under) expenditures CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 1987 Comprehensive Reshanau Ash Street 80th Area Wide Lake East Otter Street Water Estates South D. Erickson's Extension Bay $6,030 $1,287 $1,695 $0 6,030 1,287 1,695 $0 $0 12,744 428,677 394,803 332,292 3,289 1,808 12,744 428,677 394,803 332,292 3,289 1,808 (12,744) (422,647) (393,516) (330,597) (3,289) (1,808) Other increases: Bonds proceeds 664,671 481,883 381,422 Total other increases 0 664,671 481,883 381,422 0 0 Net increase (decrease) in fund balance (12,744) 242,024 88,367 50,825 (3,289) (1,808) Fund balance (deficit) - January 1 0 0 0 0 0 0 Residual equity transfer (5,228) Fund balance (deficit) - December 31 ($17,972) $242,024 $88,367 $50,825 ($3,289) ($1,808) ✓ ✓ - The accompanying notes are an integral part of these financial statements. ICITY OF LINO LAKES, MINNESOTA Statement 13 Page 2 of 2 1 I West Central Totals Sewer & 74th 1160 2nd 4th Ash Street December 31, Water Trunk Street Main Street Avenue Avenue Sewer 1987 1986 Memorandum I Only $1,352 2,546 1,365 I 3,753 2,717 18,285 I $615,038 1,992 615,038 3,262 1,455 3,495 I25,093 5,976 22,716 22,716 I637,754 666,294 12,733 $10,115 10,115 10,115 10,115 0 I 63,713 100,393 4,400 8,871 3,900 2,459 2,459 111 $0 $0 $0 $0 640,213 10,115 755,205 142,428 1 4,443 15,855 340 2,105 680 167 24,843 I 28,904 57,472 1,186 5,989 5,500 803 11,300 55 466,337 60,002 1,958,069 1,408,741 22,246 I 5,500 803 11,300 55 466,337 60,002 2,017,460 1,513,580 (5,500) (803) (11,300) (55) 173,876 (49,887) (1,262,255) (1,371,152) 84,942 171.1,759 144,743 0 0 0 0 84,942 0 1,711,759 144,743 (5,500) (803) (11,300) (55) 258,818 (49,887) 449,504 (1,226,409) 0 0 0 0 0 0 505,275 1,731,684 III (253,229) 13,809 I ($5,500) ($803) ($11,300) ($55) $5,589 ($49,887) $968,588 $505,275 v�' The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS WATER AND SEWER FUND BALANCE SHEET December 31, 1987 Assets Current assets: Accounts receivable Due from other governmental units Prepaid expenses Inventory Total current assets Fixed assets: Well Buildings Equipment Water and sewer system Total Fixed assets Less: Allowance for depreciation Net Fixed assets Total assets Liabilities and Fund Equity Liabilities: Cash overdraft Accounts payable Salaries payable Due to other governmental units Total liabilities Fund equity: Contributions - net Retained earnings Total fund equity Total liabilities and fund equity The accompanying notes are an integral part of these financial statements. Statement 14 December 31, 1987 1986 Memorandum Only $23,227 $16,256 14,345 8,079 4,902 4,570 3,245 4,216 45.719 33.121 18,500 48,690 17,421 973,802 1,058,413 (236,217) 822.196 $867,915 $27,142 6,345 370 1,171 35,028 818,429 14,458 832.887 $867,915 18,500 48,690 15,561 973,802 1,056,553 (212,604) 843.949 $877,070 $14,357 39 138 703 15,237 840,959 20,874 861.833 $877,070 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, 1987 Statement 15 December 31, 1987 1986 Operating revenue: Water sales $21,492 $11,608 Sewer charges 49,942 41,655 Other operating revenue 6,916 4,676 Total operating revenue 78,350 57,939 Operating expenses: Personal services 29,577 16,204 Materials and supplies 4,532 3,623 Contractual services 8,295 710 Repair and maintenance 11,003 5,313 MWCC sewer charges 33,709 28,272 Depreciation: Purchased assets 1,082 984 Contributed assets 22,530 22,530 Utilities 2,849 2,229 Sewer service charge 956 2,110 Other 2,835 336 Total operating expenses 117,368 82,311 Net income (loss) from operations Other income : Maintenance agreement - MWCC Net income (loss) (39,018) (24,372) 10,072 7,100 (28,946) (17,272) Other increases : Credit arising from transfer of depreciation to contributions from property owners 22,530 22,530 Net other increases (decreases) 22,530 22,530 Net increase (decrease) in retained earnings (6,416) 5,258 Retained earnings - January 1 20,874 15,616 Retained earnings - December 31 $14,458 $20,874 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 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUND WATER AND SEWER FUND STATEMENT OF CASH FLOWS For The Year Ended December 31, 1987 Statement 16 December 31, 1987 1986 Cash Flows from Operating Activities: Net income (loss) ($28,946) ($17,272) Noncash expenses (revenues) included in net income: Depreciation 23,612 23,514 Decrease (increase) in receivables, prepaid expenses and inventory (12,598) (6,952) Increase (decrease) in payables 7,006 (3,553) Net cash provided by operating activities Cash flows from investing activities: Purchase of fixed assets Net cash used by investing activities Net increase (decrease) in cash The accompanying notes are an integral part of these fmancial statements. (10,926) (4,263) (1,859) 0 (1,859) 0 ($12,785) ($4,263) Assets Cash and investments Cash with escrow agent Accrued interest on investments Due from developers Total assets Liabilities Cash overdraft Accounts payable Due to developers Deferred compensation payable Total liabilities CITY OF LINO LAKES, MINNESOTA AGENCY FUNDS COMBINING BALANCE SHEET December 31, 1987 Contractors Deposits $972 10,161 Investment Fund $11,684 Deferred Compensation $59,420 $11,133 $11,684 $59,420 $2,179 8,954 $11,684 $59,420 $11,133 $11,684 $59,420 Statement 17 Totals December 31, 1987 1986 Memorandum Only $972 $7,454 59,420 41,465 11,684 6,991 10,161 5,776 $82,237 $61,686 $11,684 2,179 8,954 59,420 $6,991 5,840 7,390 41,465 $82,237 $61,686 The accompanying notes are an integral part of these fmancial statements. CITY OF LINO LAKES, MINNESOTA Statement 18 AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31,1987 Balance Balance January 1, December 31, 1987 Additions Deletions 1987 Contractors deposits: Assets Cash and investments $7,454 $3,995 $10,477 $972 Due from developers 5,776 4,385 10,161 Total assets $13,230 $8,380 $10,477 $11,133 Liabilities Accounts payable $5,840 $2,295 $5,956 $2,179 Due to developers 7,390 1,564 8,954 Total liabilities $13,230 $3,859 $5,956 $11,133 Investment Fund: Assets Accrued interest on investments $6,991 $11,684 $6,991 $11,684 Total assets $6,991 $11,684 $6,991 $11,684 Liabilities Cash overdraft $6,991 $11,684 $6,991 $11,684 Total liabilities $6,991 $11,684 $6,991 $11,684 Deferred Compensation: Assets Cash with escrow agent Liabilities Deferred compensation payable Totals -All Trust and Agency Funds: $41,465 $20,461 $2,506 $59,420 $41,465 $20,461 $2,506 $59,420 Assets Cash and investments $7,454 $3,995 $10,477 $972 Cash with escrow agent 41,465 20,461 2,506 59,420 Accrued interest on investments 6,991 11,684 6,991 11,684 Due from developers 5,776 4,385 0 10,161 Total assets $61,686 $40,525 $19,974 $82,237 Liabilities Cash overdraft $6,991 $11,684 $6,991 $11,684 Accounts payable 5,840 2,295 5,956 2,179 Due to developers 7,390 1,564 0 8,954 Deferred compensation payable 41,465 20,461 2,506 59,420 Total liabilities $61,686 $36,004 $15,453 $82,237 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA Statement 19 STATEMENT OF GENERAL FIXED ASSETS December 31, 1987 (Unaudited) Balance Balance January 1, December 31, 1987 Additions Deletions 1987 Land $298,943 $298,943 Wells 6,216 6,216 Buildings and improvements 516,163 516,163 Furniture and equipment 487,879 $103,230 $42,596 548,513 Totals $1,309,201 $103,230 $42,596 $1,369,835 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA STATEMENT OF GENERAL LONG - TERM DEBT December 31, 1987 Amount Available And To Be Provided For The Retirement of Long -Term Debt Amount available in Debt Service Fund Amount to be provided- future tax levies /assessments /tax increment collections Total available and to be provided General Long-Term Debt Payable Statement 20 December 31, 1987 1986 $729,383 $745,308 3,792,713 2,609,608 $4,522,096 $3,354,916 Bonds payable: General Obligation Bonds: 1985 Certificate of Indebtedness $37,500 $72,500 1987 Equipment Certificates 78,000 Total. General Obligation Bonds 115,500 72,500 General Obligation Bonds with special assessments pledged: G. O. Improvement Bonds of 1977 6,320 G. O. Improvement Bonds of 1981 20,000 25,000 G. O. Improvement Bonds of 1982 115,000 600,000 G. O. Improvement Bonds of 1983 60,000 70,000 G. O. Improvement Bonds of 1984 24,500 28,000 G. O. Temporary Improvement Bonds of 1985 1,850,000 1,850,000 G. O. Improvement Bonds of 1986 475,000 475,000 G. O. Temporary Improvement Bonds of 1987 1,650,000 Total General Obligation Bonds with special assessments pledged 4,194,500 3,054,320 Total Bonds Payable 4,310,000 3,126,820 Assessments payable on City property 148,096 148,096 Contract for deed 64,000 80,000 Total general long -term debt $4,522,096 $3,354,916 The accompanying notes are an integral part of these fmancial statements. SUPPLEMENTARY FINANCIAL INFORMATION General Obligation Bonds: 1985 Certificates of Indebtedness 1987 Equipment Certificates CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 1987 Final Prior Years Interest Maturity Original Rates Dated Date Issue 6.25 - 6.75 12/1/85 12/1/88 $107,500 6.75 11/1/87 11/1/88 0 Total General Obligation Bonds 107,500 General Improvement Bonds with special assessments pledged: G. O. Improvement Bonds of 1977 5.00 7/16/77 7/26/87 63,200 G. O. Improvement Bonds of 1981 10.64 12/1/81 12/1/91 45,000 G. O. Improvement Bonds of 1982 7.25 - 8.80 10/1/82 2/1/91* 750,000 G. O. Improvement Bonds of 1983 8.65 1001/83 10/1/93 100,000 G. O. Improvement Bonds of 1984 6.50 5/1/84 11/1/94 35,000 G. O. Temporary Improvement Bonds of 1985 7.03 11/1/85 11/1/88 1,850,000 G. O. Improvement Bonds of 1986 5.43 12/1/86 2/1/97 475,000 G. O. Temporary Improvement Bonds of 1987 5.43 9/1/87 9/1/90 0 Total General Improvement Bonds with special assessments pledged 3,318,200 Total - All Bonds 3,425,700 Contract for deed 8.00 10/1/87 7/1/91 80,000 Total indebtedness $3,505,700 *Bonds maturing in years 1989 through 1991 representing $375,000 called on 2/1/87 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Payable Payments 1/1/87 CITY OF LINO LAKES, MINNESOTA 1987 Issued Exhibit 1 Principal Interest Payable Due Due Payments 12/31/87 In 1988 In 1988 $35,000 $72,500 $35,000 $37,500 $37,500 $2,531 0 0 $78,000 0 78,000 78,000 5,265 35,000 72,500 78,000 35,000 115,500 115,500 7,796 56,880 6,320 6,320 0 0 0 20,000 25,000 5,000 20,000 5,000 2,175 150,000 600,000 485,000 115,000 115,000 4,715 30,000 70,000 10,000 60,000 10,000 5,250 7,000 28,000 3,500 24,500 3,500 2,083 0 1,850,000 0 1,850,000 1,850,000 123,950 0 475,000 0 475,000 10,000 22,925 0 0 1,650,000 0 1,650,000 0 85,800 263,880 3,054,320 1,650,000 509,820 4,194,500 1,993,500 246,898 298,880 3,126,820 1,728,000 544,820 4,310,000 2,109,000 254,694 0 80,000 0 16,000 64,000 16,000 5,120 $298,880 $3,206,820 $1,728,000 $560,820 $4,374,000 $2,125,000 $259,814 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 1987 1985 G. 0. G. 0. Year of Certificates 1987 Improvement Improvement Levy/ of Equipment Bonds Bonds Collection Indebtedness Certificates of 1984 of 1986 -A Total 1987/1988 $39,000 $78,000 $117,000 1988/1989 $119 $34,838 34,957 1989/1990 35,639 35,639 1990/1991 2,508 2,508 1991/1992 1,689 1,689 1992/1993 839 839 $39,000 $78,000 $119 $75,513 $192,632 Exhibit 2 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY December 31, 1987 1 1 1985 G.O. G.O. I Certificates 1987 Improvement Improvement of Equipment Bonds Bonds I Indebtedness Certificates of 1981 of 1982 Bonds payable $37,500 $78,000 $20,000 $115,000 Future interest payable 2,531 5,265 5,462 9,430 Totals $40,031 $83,265 $25,462 $124,430 Payments to maturity: 1988 $40,031 $83,265 $7,175 $124,430 1989 6,637 1990 6,100 1991 5,550 1992 1993 1994 1995 1996 1997 1 1 1 1 1 $40,031 $83,265 $25,462 $124,430 I 1 1 1 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA Exhibit 3 G. O. G. O. G. 0. G. 0. Temporary G. 0. Temporary Improvement Improvement Improvement Improvement Improvement Bonds Bonds Bonds Bonds Bonds of 1983 of 1984 of 1985 of 1986 of 1987 Totals $60,000 $24,500 $1,850,000 $475,000 $1,650,000 $4,310,000 19,600 8,574 123,950 81,163 257,400 513,375 $79,600 $33,074 $1,973,950 $556,163 $1,907,400 $4,823,375 $15,250 $5,582 $1,973,950 $32,925 $85,800 $2,368,408 14,400 5,310 144,975 85,800 257,122 13,550 5,031 139,288 1,735,800 1,899,769 13,700 4,743 133,225 157,218 11,800 4,445 19,710 35,955 10,900 4,139 18,915 33,954 3,824 18,090 21,914 17,235 17,235 16,350 16,350 15,450 15,450 $79,600 $33,074 $1,973,950 $556,163 $1,907,400 $4,823,375 CITY OF LINO LAKES, MINNESOTA CONSTRUCTION WORK IN PROCESS December 31, 1987 Description LAWCON - Country Lakes Park 80th street 4th Avenue Lakes Addition #7 Reiling Road Rice Lake Estates North Road Main Street West Shadow Lake Drive Sunset Road Deer Pass Trail Baldwin Lake Mobile Home Court Comprehensive Area Wide Water Reshanau Lake Estates South D. Erickson's Ash Street East Extension Otter Bay West Central Sewer and Water Trunk Comprehensive Sanitary Sewer and Water 74th Street 1160 Main Street Ash Street Sewer 2nd Avenue Totals * Completed Project Contractor $92,985 80,890 24,129 1,123,337 6,344 57,641 9,976 44,829 363,578 352,839 285,092 3,265 11,300 47,511 $2,503,716 CITY OF LINO LAKES, MINNESOTA Lard Expended Easements Prior Engineering and Other Total 1987 Years $13,641 $18,293 $124,919 * $364 $124,555 13,990 3,933 17,923 12,744 5,179 549,418 89,307 719,615 466,337 253,278 22,333 13,342 35,675 * 35,675 7,289 4,303 35,721 * 55 35,666 170,426 91,193 1,384,956 167,252 1,217,704 1,593 94 8,031 * 1,941 6,090 2,007 41 59,689 * 59,359 330 10,788 31 10,819 * 10,819 84 120 204 79 125 1,837 337 12,150 * 11,773 377 13,174 28,459 86,462 86,462 51,779 12,764 428,121 428,121 0 30,687 11,277 394,803 394,803 0 41,458 5,742 332,292 332,292 0 24 3,289 3,289 0 1,318 490 1,808 1,808 0 5,500 5,500 5,500 0 556 556 556 0 803 803 * 803 0 11,300 * 11,300 0 7,441 5,050 60,002 60,002 0 55 55 55 0 $946,177 $284,800 $3,734,693 $1,958,433 $1,776,260 Exhibit 4 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 1987 Coverage Amount General Liability: Bodily Injury/Property Damage $600,000 Personal Injury 600,000 Property: Buildings and Contents 1,363,500 Contractors Equipment 85,800 Miscellaneous 25,089 Valuable Papers 50,000 Faithful Performance Blanket Bond 100,000 Public Official and Employee Liability 1,000,000 Police Professional Liability 500,000 Automotive: Bodily injury and property damage 600,000 Comprehensive and Collision ACV Uninsured motorists 600,000 Workmen's compensation Statutory Employee Benefit Level 600,000 Umbrella Liability 1,000,000 Exhibit 5 CITY OF LINO LAKES, MINNESOTA Exhibit 6 ASSESSED VALUATIONS, TAX LEVIES AND MILL RATES Assessed Valuations: Total Fiscal Disparity Contribution Net Assessed Valuation Fiscal Disparity Distribution 1987/88 1986/87 $33,682,122 $29,997,115 1,069,782 984,515 $32,612,340 $29,012,600 $7,358,338 $6,273,957 Tax Levies: City Totals $1,146,850 $990,000 Fiscal Disparity Distribution Tax 208,500 167,811 Balance Levied Against Property Located in Lino Lakes $938,350 $822,189 Mill Rates: Property Located in Lino Lakes 29.306 28.339 Fiscal Disparity 28.339 26.749 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF SOURCES AND USES OF FUNDS FOR TAX INCREMENT HOUSING DISTRICT #1 -1 December 31, 1987 Accounted Amended for in Current Amount Budget Prior Years Year Remaining Sources of funds: Bond Proceeds $1,200,000 $1,200,000 Tax increment collections 2,404,254 2,404,254 Interest on investments 0 0 Total sources of funds 3,604,254 $0 $0 3,604,254 Uses of funds: Public improvements 974,094 Bonding costs 25,000 Bond discount 24,000 Capitalized interest 192,404 Debt service 2,355,000 Total uses of funds 3,570,498 Funds remaining (deficit) $33,756 0 974,094 25,000 24,000 192,404 2,355,000 0 3,570,498 $0 50 $33,756 Exhibit 7