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Home My WebLink AboutComprehensive Annual Financial Report 12/31/2014COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2014 Prepared By: Finance Department Alan Rolek, Director of Finance Paula Schloer, Accountant -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number I. INTRODUCTORY SECTION Principal City Officials 1 Organizational Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 8 II. FINANCIAL SECTION Independent Auditors' Report 9 Management's Discussion and Analysis 12 Basic Financial Statements Statement of Net Position Statement 1 22 Statement of Activities Statement 2 23 Balance Sheet - Governmental Funds Statement 3 25 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement 4 27 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds Statement 5 28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities Statement 6 30 Statement of Net Position - Proprietary Funds Statement 7 31 Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Statement 8 32 Statement of Cash Flows - Proprietary Funds Statement 9 33 Statement of Net Position - Fiduciary Funds — Agency Funds Statement 10 34 Notes to Financial Statements 35 -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Required Supplementary Information General Fund: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Statement 11 60 Note to Required Supplementary Information 66 Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 67 Combining Fund Financial Statements Combining Balance Sheet - Nonmajor Governmental Funds Statement 13 68 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds Statement 14 76 Special Revenue Fund - Program Recreation: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Statement 15 84 Statement of Changes in Assets and Liabilities - Fiduciary Funds - Agency Funds Statement 16 85 Supplementary Financial and Other Information Combined Schedule of Indebtedness Exhibit 1 86 Schedule of Deferred Tax Levies Exhibit 2 88 Debt Service Payments to Maturity - All Bonds Exhibit 3 90 Insurance in Force Exhibit 4 93 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 94 III. STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years Table 1 95 Changes in Net Position - Last Ten Fiscal Years Table 2 96 Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 98 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 4 100 Assessed and Actual Value of Taxable Property - Last Ten Fiscal Years Table 5 102 -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Table 6 103 Principal Property Taxpayers Table 7 104 Property Tax Levies and Collections - Last Ten Fiscal Years Table 8 105 Ratios of Outstanding Debt by Type Table 9 107 Ratios of Net General Bonded Debt Table 10 109 Direct and Overlapping Governmental Activities Debt Table 11 111 Legal Debt Margin Information Table 12 112 Demographic and Economic Statistics Table 13 114 Principal Employers, Current Year and Nine Years Ago Table 14 115 Full -Time Equivalent Employees by Type Table 15 116 Operating Indicators by Function/Program Table 16 118 Capital Asset Statistics by Function/Program Table 17 120 -This page intentionally left blank - I. INTRODUCTORY SECTION -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2014 Elected Officials Term Expires Mayor: Jeff Reinert December 31, 2015 Council Members: Dale Stoesz December 31, 2015 Rob Rafferty December 31, 2017 William Kusterman December 31, 2017 Dave Roeser December 31, 2015 Appointed Personnel City Administrator Jeff Karlson Director of Finance Alan Rolek Director of Public Safety John Swenson Director of Community Development Michael Grochala Director of Public Service Rick DeGardner CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2014 City of Liao Lakes Organizational Chart Administration City Clerk Human Resources Public Information City Council I FCity Administrator =I-- - Finance Community Development Accounting Planning Utility Billing Netwo rk Administration 4 Economic Development Engineering Environmental Services Building Inspections Advisory Board & Commissions Public Services Recreation Government Buildings Public Works Street 1 Fleet 1 Utility Maintenance Parks Senior Citizen Services Public Safety Police Division Fire Division Emergency Management/ Administration May 18, 2015 Honorable Mayor Members of the City Council Citizens of the City of Lino Lakes, Minnesota Minnesota State law requires that cities over 2,500 population publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended December 31, 2014. This report consists of management's representations concerning the finances of the City of Lino Lakes. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Lino Lakes' financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Lino Lakes' financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2014, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended December 31, 2014, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino Lakes' MD&A can be found immediately following the report of the independent auditors. 3 Profile of the Government The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County of Anoka. It covers an area of 33 square miles and has a population of approximately 20,700. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 23% since 2000. Within the City's borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is provided by I -35W and 1-35E. The City Charter, as amended, establishes a mayor -council form of government and grants the city council full policy-making and legislative authority to the mayor and four council members. The City council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a City administrator. The City administrator has the responsibility of carrying out the policies and ordinances of the City council, for overseeing the day-to-day operation of the city. The City council is elected at -large on a non-partisan basis, with council members serving four-year terms and the mayor serving a two-year term. Elections are held every two years with two council seats and the mayor being up for election each election cycle. The City provides a full range of municipal services. These services include: general government, public safety (police and fire), public works (streets and fleet), parks and recreation, conservation of natural resources (environmental and solid waste abatement), public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two enterprise funds, the water and sewer funds. The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are required to submit appropriations requests to the City administrator for review and consolidation into a proposed budget. The City administrator is responsible for submitting the proposed annual budget to the City Council in August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make transfers of appropriations within a department, but transfers of appropriations between departments require council approval. Budget -to -actual comparisons for the general fund and the recreation program fund, the only funds for which an annual budget has been adopted, are provided in this report beginning on pages 60 and 84, respectively. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Lino Lakes operates. Local economy. The economic development effort established by the City Council in 1993 increased the commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007 the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive interchange, was developing at a rapid pace. SuperTarget and Kohl's anchor the shopping center quadrant, while Apollo Business Park brought approximately 1,000 new employees to the area. Land was purchased by Anoka County on a third quadrant for future development of a regional library. Due to economic conditions, the County has pushed back construction of the library to 2018. Factors Affecting Financial Condition (Continued) In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast quadrant of I -35W and Lake Drive. Called Legacy at Woods Edge, this mixed-use development is intended to include diverse opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a 60 -unit workforce housing project, 13,000 square feet of leasable commercial space, and an assisted living facility. The Civic Complex and YMCA provide a civic and community focus as part of the vision for Town Center. A workforce family housing and assisted living facility provide diversity in housing to underserved populations within the City. In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion of public improvements in Legacy at Woods Edge to accommodate planned development and completed the improvements by 2008. However, it became evident at the end of 2007 that development was stalling. The recession has had negative impacts on the Legacy development. Both the master developer and lender defaulted, sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit. Development conditions have begun to improve relative to the Legacy property. During 2013, the assisted living facility purchased an adjoining parcel to expand its current operation. The 36 -room addition was completed in 2014. In addition, the State Legislature approved City -initiated special legislation which has allowed the City to acquire the tax forfeited property from the State at no cost except for an administrative fee payable to Anoka County if future sale revenues exceed the value of the special assessments on the property. The acquisition of this property will allow the City greater control in marketing the property to potential developers. The solid foundation that was built and strong interest by developers prior to the recession ensures that better economic times will once again bring the interest in residential and commercial growth needed to complete the vision. Street, streetscape, water, sewer, and storm water improvements, as well as a small community park, have been installed within the development area and assessed to the development. The $11.1 million I -35W Interchange improvement was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to finance its portion of the project cost. Building activity and development continued to be steady in 2014, however, improvement in developer activity is evident. Building permits for new homes in 2014 numbered 33, compared to 30 in 2013. In addition, the City granted final plat approval for six new residential developments totaling 138 units in 2014. In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011. With both major interstate interchanges complete, the City is preparing for development of several hundred acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension of Otter Lake Road North east of I -35E and planning for the extension of 21st Avenue west of I -35E, which will leave the City well poised to accommodate significant future industrial, commercial and residential development. A McDonald's restaurant was completed in 2014 at CSAH 14 and Otter Lake Road. In addition, Metropolitan Transit has constructed a 300 space Park and Ride at I35 -E at CSAH 14 and 21St Avenue. 5 Factors Affecting Financial Condition (Continued) Long-term financial planning. The City's currently adopted five-year financial plan identifies street and utility improvements totaling $23,387,990 over the five-year period. These improvements are anticipated to be funded through a number of funding sources, including special assessments, municipal state aid road funds, the area and unit trunk fund, the stormwater management fund and voter -approved tax levies. Also included in the final year of the plan is a feasibility study for a new public works facility. Scheduled capital equipment and office equipment needs and the financing for those needs are also included in the plan. The five-year plan also includes funding projections for operations and operating impacts for the five-year period. This plan is in the process of being revised to reflect the anticipated activity through the year 2019. Relevant Financial Policies The City uses a variety of financial policies to guide its fiscal actions and ensure fiscal stability. Fund balance policy. The City had adopted a Fund Balance policy which identified the required designated amounts in the Fund Balance of the General Fund at fiscal year-end and directed the transfer of any excess revenues to other funds for specific purposes, as identified annually. For the year ended December 31, 2011 and subsequent years, the City amended its Fund Balance policy to conform to the requirements of GASB 54. The new policy targets the unassigned fund balance of the general fund in a range of 40% to 50% of budgeted general fund expenditures and other financial uses. In addition, fund balances are classified in compliance with GASB 54 according to the hierarchy of usable fund balance resources. The unassigned general fund balance as of December 31, 2014 was $5,053,064, which is 57% of general fund budgeted expenditures and other financing uses for the year. Cash management policies and practices. The City's policy is to invest all available moneys at competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S. government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the investment policy annually. The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either insured by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened economy, a historically low interest rate environment has persisted over the last several years and has had a dramatic impact on the city's investment earnings. The average interest income yield on investments for 2014 was 0.85%. Total investment income also includes positive or negative changes in the fair value of investments. Changes in fair value of investments during the current year resulted in a net increase of $152,718, or 0.48%, for a total investement yield of 1.33%. The changes in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments the City intends to hold to maturity. It is the City's practice to purchase and hold investments to maturity and, accordingly, changes in fair value over the term of the City's investments are expected to net to book value. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. The City of Lino Lakes received this award for its comprehensive annual financial report for the year ended December 31, 2013. This marks the eighteenth consecutive year the City has received this prestigious award. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2014 report to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our current report continues to conform to the high standards of the Certificate program. The timely preparation of this report could not have been accomplished without the dedicated services of the Finance Department, auditors and other city staff. A special thank you goes to city accountant, Paula Schloer, for her efforts in assembling and reviewing information presented in this report. I also want to express my appreciation to the Mayor and City Council for their support for maintaining the highest standard of professionalism in the management of the financial operation of the City. Respectfully submitted, (2�4 I . ©. Alan J. Rolek Director of Finance 7 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lino Lakes Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 013 AK� Fxccutive Director/CEO II. FINANCIAL SECTION -This page intentionally left blank - 4 ` CliftanLarsonAllen LLP CLAconnect.com CliftonLarsvnAllen INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, as of and for the year ended December 31, 2014, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. ® An independent --r M Nexia International INTERNATIONAL Honorable Mayor and Members of the City Council City of Lino Lakes Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes as of December 31, 2014, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and schedule of funding progress to postemployment benefit plan, as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lino Lakes' basic financial statements. The combining fund financial statements and other supplementary financial and other information, the introductory section, and statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund statements, special revenue fund — program recreation schedule of revenues, expenditures, and changes in fund balance — budget and actual, the combining schedule of indebtedness, schedule of deferred tax levies, schedule of insurance in force, schedule of taxable valuations, tax levies, and tax rates, and the debt service payments to maturity — all bonds schedule are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining fund statements, special revenue fund — program recreation schedule of revenues, expenditures, and changes in fund balance — budget and actual, the combining schedule of indebtedness, schedule of deferred tax levies, schedule of insurance in force, schedule of taxable valuations, tax levies, and tax rates, and the debt service payments to maturity — all bonds schedule are fairly stated, in all material respects, in relation to the basic financial statements as a whole. 10 Honorable Mayor and Members of the City Council City of Lino Lakes Other Information (Continued) The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 18, 2015, on our consideration of the City of Lino Lakes' internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the result of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Lino Lakes' internal control over financial reporting and compliance. Z CliftonLarsonAllen LLP Minneapolis, Minnesota May 18, 2015 11 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the fiscal year ended December 31, 2014. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-7 of this report. FINANCIAL HIGHLIGHTS • The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year by $90,179,168 (net position). Of this amount $34,415,982 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. • The City's total net position decreased by $1,334,788 primarily due to annual depreciation of capital assets. • As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balance of $22,542,363, an increase of $964,790 in comparison with the prior year primarily due to the proceeds from the issuance of the 2014A Equipment Certificates and G.O. Bonds 2014A, the majority of which will be expended in 2015. Approximately 5% of this amount, or $1,177,213, is available for spending at the City's discretion (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance for the general fund was $5,053,064, or 57% of total general fund expenditures and other financing uses. • The City's total bonded debt increased by $1,091,000 (11.4%) during the current fiscal period. The City issued Equipment Certificates of $495,000 and a general obligation bond in the amount $2,645,000 to finance the improvement of 21st Avenue, Northpointe addition improvements and the construction of Well # 6 and Wellhouse. Principal in the amount of $2,049,000 was retired during the year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic financial statements. The City of Lino Lakes' basic financial statements comprise three components: 1. Government -wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of Lino Lakes' finances, in a manner similar to private - sector business. The statement of net position presents information on all of the City of Lino Lakes' assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Lino Lakes is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences and OPEB liabilities). 12 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Government -wide financial statements (Continued) Both of the government -wide financial statements distinguish functions of the City of Lino Lakes that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Lino Lakes include general government, public safety, public services, parks, recreation and forestry, conservation of natural resources and community development. The business -type activities of the City of Lino Lakes include a water utility and sewer utility. The government -wide financial statements can be found on pages 22-24 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Lino Lakes can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental functions and governmental activities. The City of Lino Lakes maintains forty-nine individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund, Improvement Note 2009F fund, Municipal State Aid fund and Area and Unit Charge fund all of which are considered to be major funds. Data from the other forty-four governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation special revenue funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 25 through 30 of this report. Proprietary funds — The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities. The proprietary fund statements provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The basic proprietary fund financial statements can be found on pages 31 through 33 of this report. 13 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. Notes to the financial statements — The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 35-59 of this report. Other information — The combining statements and schedules referred to earlier in conjunction with nonmajor governmental funds can be found on pages 68-83 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City of Lino Lakes' assets exceeded liabilities by $90,179,168 at the close of the most recent fiscal year, a decrease of $1,334,788 from the previous year. This decrease is primarily due annual depreciation of capital assets. The largest portion of the City of Lino Lakes' net position (52%) reflects its net investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Condensed versions of the statements of net position at December 31, 2014 and 2013 are as follows: Of the remaining balance of the City of Lino Lakes' net position, restricted net position (10%) are to be used for activities restricted by law (special revenue funds), debt service requirements and a nonexpendable environmental fund. Unrestricted net position (38%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 Governmental Activities Business -Type Activities Total 2014 2013 2014 2013 2014 2013 Current and Other Assets $ 32,904,991 $ 33,326,625 $ 14,029,608 $ 13,092,332 $ 46,934,599 $ 46,418,957 Capital Assets 36,212,984 37,854,973 27,556,022 28,423,284 63,769,006 66,278,257 Total Assets 69,117,975 71,181,598 41,585,630 41,515,616 110,703,605 112,697,214 Noncurrent Liabilities Outstanding 19,479,195 20,006,657 52,790 54,182 19,531,985 20,060,839 Other Liabilities 903,912 1,083,451 88,540 38,968 992,452 1,122,419 Total Liabilities 20,383,107 21,090,108 141,330 93,150 20,524,437 21,183,258 Net Position: Net Investment in Capital Assets 19,540,807 22,241,821 27,556,022 28,423,284 47,096,829 50,665,105 Restricted 8,666,357 11,000,033 - - 8,666,357 11,000,033 Unrestricted 20,527,704 16,849,636 13,888,278 12,999,182 34,415,982 29,848,818 Total Net Position $ 48,734,868 $ 50,091,490 $ 41,444,300 $ 41,422,466 $ 90,179,168 $ 91,513,956 Of the remaining balance of the City of Lino Lakes' net position, restricted net position (10%) are to be used for activities restricted by law (special revenue funds), debt service requirements and a nonexpendable environmental fund. Unrestricted net position (38%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental activities Governmental activities decreased the City of Lino Lakes' net position by $1,356,622. Reductions in Capital Grants and Contributions and increases in expenses for general government and public services activities account for this reduction for 2014. Business -type activities Business -type activities increased the City of Lino Lakes' net position by $21,834. Changes in market value of investments provided mainly for this increase. Condensed statements of revenues, expenses, and changes in net position highlights are as follows for the years ended December 31, 2014 and 2013: 15 Governmental Activities Business -Type Activities Total 2014 2013 2014 2013 2014 2013 REVENUES Program Revenues: Charges for Services $ 1,529,040 $ 1,452,169 $ 2,529,524 $ 2,725,139 $ 4,058,564 $ 4,177,308 Operating Grants and Contributions 840,676 527,368 - - 840,676 527,368 Capital Grants and Contributions 335,733 941,960 1,035 883 336,768 942,843 General Revenues: Property Taxes 8,612,016 8,392,601 - - 8,612,016 8,392,601 Franchise Taxes 124,292 109,438 124,292 109,438 Other Taxes 70,578 61,556 70,578 61,556 Contributions Not Restricted to Specific Programs 4,443 4,442 - - 4,443 4,442 Unrestricted Investment Earnings 172,738 216,488 96,213 113,402 268,951 329,890 Change in Market Value 92,957 (270,692) 58,255 (158,175) 151,212 (428,867) Gain on Disposal of Capital Assets 1,727 - 1,727 - Total Revenues 11,784,200 11,435,330 -2,681,249 14,469,227 14,116,579 EXPENSES General Government 2,036,550 1,566,388 2,036,550 1,566,388 Public Safety 4,107,759 3,950,197 4,107,759 3,950,197 Public Service 4,786,121 4,540,888 4,786,121 4,540,888 Parks, Recreation and Forestry 1,093,909 835,783 1,093,909 835,783 Conservation of Natural Resources 159,649 141,204 159,649 141,204 Community Development 407,448 404,726 407,448 404,726 Interest on Long -Term Debt 618,680 951,842 618,680 951,842 Water - - 965,641 927,800 965,641 927,800 Sewer - - 1,628,258 1,584,395 1,628,258 1,584,395 Total Expenses 13,210,116 12,391,028 2,593,899 2,512,195 15,804,015 14,903,223 CHANGE IN NET POSITION BEFORE TRANSFERS (1,425,916) (955,698) 91,128 169,054 (1,334,788) (786,644) Transfers 69,294 (353,304) (69,294) 353,304 CHANGE IN NET POSITION 1,356,622 1,309,002 21,834 522,358 1,334,788 786,644 Net Position - Beginning of Year 50,091,490 51,400,492 41,422,466 40,900,108 91,513,956 92,300,600 NET POSITION - END OF YEAR $ 48,734,868 $ 50,091,490 $ 41,444,300 $ 41,422,466 $ 90,179,168 $ 91,513,956 15 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Below are specific graphs that provide comparisons of the government activities' direct program revenues with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or general state aid. Expenses and Program Revenues — Governmental Activities $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 4 ■ Expenses �tA ��` e o��y�� ■ Revenues cca o eta\ ° Q 1 �p . IQ, �aN�° .,AaeJ Low �� e5 Q Revenues by Source — Governmental Activities Unrestricted investment earnings Other Charges for 2% Fra nchisetaxes 1� services 1% 13 Operating grants and contributions 7% Capita I grants and contributions 3% Property taxes 73% 16 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Below are specific graphs that provide comparisons of the business -type activities' direct program revenues with their expenditures. Excess revenues are retained within each fund until such time that capital replacement is needed. Expenses and Program Revenues — Business -type Activities $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Water Sewer Revenues by Source — Business -type Activities Othar Charges for services 99% 17 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental funds — The focus of the City of Lino Lakes' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lino Lakes' financing requirements. GASB Statement 54, divides fund balances into five categories: nonspendable, restricted, committed, assigned and unassigned. Definitions of these categories can be found in Note 1.0 in the Notes to the Financial Statements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for unrestricted spending at the end of the fiscal year. Approximately 5% of the total fund balance amount, or $1,177,213, constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is not available for new spending because it is restricted or has already been committed or assigned for other purposes. As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balances of $22,542,633, an increase of $964,790, or 4.5%, from the previous year. This increase is primarily due to the proceeds from the issuance of the 2014A Equipment Certificates and G.O. Bonds 2014A, the majority of which will be expended in 2015. The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal year, unassigned fund balance of the general fund stood at $5,053,064, while the total fund balance was $5,306,535. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund balance and total fund balance to total fund expenditures and financing uses. Unassigned fund balance represents 57% of total general fund expenditures and other financing uses, while total fund balance represents 60% of that same amount. The fund balance of the City of Lino Lakes' general fund decreased by $79,548 during the current fiscal year, while the City budget anticipated the use of $159,425 of the general fund's fund balance. Overall, the continued soft real estate market again resulted in reduced building activities this year which decreased permit revenue. Even as signs of economic recovery were being seen, the remaining effects of the recession also had an impact on property tax fiscal disparities delinquencies. Public Safety charges for services increased from traffic control activities through the year. Improvements in financial markets resulted in a positive impact on the value of current investments. In addition, reduced expenditures, primarily for personal services through vacant positions, and contractual services helped to offset the reduced revenues. Overall, the general fund's revenues were within less than 0.1% of the amended budget, while expenditures and transfers were 2% below budgeted levels. The G.O. improvement bonds 2005A fund has a total fund deficit of ($2,493,684). This fund is related to the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and delinquency in the collection of special assessments dedicated to this issue caused a significant decrease in this fund. The use of tax increments from TIF District 1-10 and an interfund loan from the Capital Improvements fund has aided in the payment of debt service for this issue. The Improvement Note 2009F fund, to service the debt issued to Anoka County as the City's financial commitment for the 1-35E interchange project, ended the year with a fund balance of $34,899, a decrease of $961,392. The decrease was directly due to the prepayment of outstanding bonds, per terms of the agreement with the County, from prepayments of special assessments in 2013 and 2014. This note, which was originally in the amount of $4,260,000, was reduced in 2011 to $3,695,000 to reflect cost savings during the contruction of this project. The outstanding balance as of the end of 2014 is $2,080,000. The Municipal State Aid fund, a capital projects fund used to finance reconstruction of state aid eligible streets, ended the year with a fund balance of $3,922,220. This fund received a large advance from the Minnesota Municipal State Aid in 2012 equal to the next five annual construction installments. These funds will be used over the next several years to pay debt service on the Tax Increment Bonds 2007A and the Improvement Notes 2009F, and for future MSA projects. 18 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Governmental funds (Continued) — The Area and Unit Charge fund has a total fund balance of $4,383,677, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $213,626, due in large part to the collection of special assessments and intergovernmental revneues, which were greater than the expenditures and transfers out. Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The water fund has total net position at year-end of $18,860,755, of which $5,422,986 is unrestricted. The increase in net position of $27,692 was primarily due to operating income. Total net position in the sewer fund at the end of 2014 was $22,583,545, of which $8,465,292 was unrestricted. The decrease in net position of $5,858 was primarily due to a net operating loss on the year. The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates were adjusted by 2% and 4%, respectively, in 2014. A 2% adjustment of water rates and 3% adjustment of sewer rates will go into effect in January, 2015. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting increases in business license revenue, planning and engineering fees, public safety charges for services, MSA maintenance aid, police aid, SCORE grants and gas franchise fees; reductions in fiscal disparities revenue, licenses and permits fines revenue; and reallocating resources within the original budget. The final amended budget is $99,500 greater than the original adopted budget. Revenues were $1,079 under budget for the year. This is due primarily due to various factors. Fiscal disparities revenues came in under budget by $161,391. This were offset by greater than anticipated planning and engineering fees and business licensing and greater than anticipated public safety charges for services due to higher than anticipated traffic control contracts. Expenditures came in under budget by $194,195 due mainly to lower than expected personal services costs from vacant positions and lower contractual expenditures. Energy costs electricity and heating fuels were higher than budgeted amounts, and supplies costs were generally lower than anticipated. Spending on contractual services was lower overall from budgeted levels. There were also net transfers from the general fund of $565,196. This resulted in a net fund balance decrease of $79,548 for the fiscal year, compared to the planned reduction of $159,425. 19 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business - type activities as of December 31, 2014, is $63,769,006. This investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino Lakes' investment in capital assets of approximately 5%. The extension of 21St Avenue north of CSAH 14 was completed during the year by the City, adding to road and utility infrastructure. The only additions were from projects in progress. The decrease within the governmental activities is attributable to the depreciation of buildings, constructed streets, underground infrastructure and other equipment. Within the business -type activities decreases were also attributable to depreciation of existing assets of the water and sewer funds. Capital Assets at Year -End (Net of Accumulated Depreciation) Additional information on the City's capital assets can be found in the notes to the financial statements on pages 46-47. Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $18,756,000. Of this amount $9,231,000 comprises tax supported debt and $7,445,000 is special assessment debt. All outstanding debt carries the general obligation backing for which the City is liable in the event of default by the property owners subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its share of the cost of the I-35E/County Road 14 Interchange project in the amount of $2,080,000. G.O. Bonds G.O. Special Assessment Bonds Note Payable - Anoka County Total Outstanding Debt Governmental Activities 2014 2013 $ 9,231,000 $ 9,865,000 $ 7,445,000 5,720,000 2,080,000 3,695,000 Business -Type Activities 2014 2013 2014 Total $ $ 9,231,000 7,445,000 2,080,000 2013 $ 9,865,000 5,720,000 3,695,000 $ 18,756,000 $ 19,280,000 $ $ - $ 18,756,000 $ 19,280,000 The City of Lino Lakes' total bonded debt increased by $1,091,000 (10.6%) during the current fiscal year. The key factors for the change include the issuance of $495,000 in 2014A Equipment Certificates and the issuance of a general obligation bond in the amount $2,645,000 to finance the improvement of 21s' Avenue, Northpointe addition improvements and the construction of Well # 6 and Wellhouse. Principal in the amount of $2,049,000 was retired during the year. Additional information on the City's long-term debt can be found in the notes to the financial statements on pages 48-50. 20 Governmental Activities Business -Type Activities Total 2014 2013 2014 2013 2014 2013 Land $ 3,275,859 $ 3,275,859 $ $ $ 3,275,859 $ 3,275,859 Construction in Progress 808,093 - 808,093 - Buildings 3,116,839 3,301,916 3,116,839 3,301,916 Office Equipment and Furniture 364,999 407,616 364,999 407,616 Vehicles 1,170,030 1,064,565 1,170,030 1,064, 565 Machinery and Shop Equipment 336,387 340,245 211,028 232,927 547,415 573,172 Other Equipment 167,804 182,700 - - 167,804 182,700 Infrastructure 26,972,973 29,282,072 27,344,994 28,190,357 54,317,967 57,472,429 Capital Assets, Net 36,212,984 37,854,973 27,556,022 28,423,284 63,769,006 66,278,257 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 46-47. Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $18,756,000. Of this amount $9,231,000 comprises tax supported debt and $7,445,000 is special assessment debt. All outstanding debt carries the general obligation backing for which the City is liable in the event of default by the property owners subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its share of the cost of the I-35E/County Road 14 Interchange project in the amount of $2,080,000. G.O. Bonds G.O. Special Assessment Bonds Note Payable - Anoka County Total Outstanding Debt Governmental Activities 2014 2013 $ 9,231,000 $ 9,865,000 $ 7,445,000 5,720,000 2,080,000 3,695,000 Business -Type Activities 2014 2013 2014 Total $ $ 9,231,000 7,445,000 2,080,000 2013 $ 9,865,000 5,720,000 3,695,000 $ 18,756,000 $ 19,280,000 $ $ - $ 18,756,000 $ 19,280,000 The City of Lino Lakes' total bonded debt increased by $1,091,000 (10.6%) during the current fiscal year. The key factors for the change include the issuance of $495,000 in 2014A Equipment Certificates and the issuance of a general obligation bond in the amount $2,645,000 to finance the improvement of 21s' Avenue, Northpointe addition improvements and the construction of Well # 6 and Wellhouse. Principal in the amount of $2,049,000 was retired during the year. Additional information on the City's long-term debt can be found in the notes to the financial statements on pages 48-50. 20 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2014 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • The unemployment rate for the City of Lino Lakes at year-end is 3.4%, which is a great improvement from a rate of 4.5% a year ago. This is slightly lower than the state's average unemployment rate of 3.6% and significantly lower than the national average of 5.4% at the end of 2014. • Residential growth in the City has continued to be significantly below the rates of the mid 2000's due to the general residential real estate market weakness, with about one-third the number of new home permits issued in 2014 as in 2007, and less than 82% of new home permits issued in 2005. This is an improvement over recent years. Recently increased building and development activities are signalling a recovery of the housing market. Property values of the existing tax base are expected to firm will continue to have an impact on the City's tax base for 2015. • Energy costs are expected to continue to remain steady or slightly increase over the coming months. This will have an impact on the City's budget for the coming year and thereafter. • Property tax reforms have significantly impacted state aid payments the City of Lino Lakes receives. The City is exempted from local government aid and the state legislature has discontinued the market value homestead credit in favor of a new market value exclusion, which excludes a portion of residential homestead property value from property taxes. • The Federal Reserve Board has continued the federal funds rates at historical lows, currently to between 0.00% — 0.25%, which is expected to result in reduced investment earnings. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014. 21 -This page intentionally left blank - BASIC FINANCIAL STATEMENTS -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION December 31, 2014 ASSETS Cash and investments Accrued interest receivable Accounts receivable Due from other governments Internal balances Taxes receivable Special assessments receivable Long-term notes receivable Prepaid items Inventory Permanently restricted cash and investments Capital assets: Land Construction in progress Other capital assets, net of depreciation Total assets LIABILITIES Accounts payable Salaries payable Contracts and retainage payable Accrued interest payable Due to other governments Other accrued liabilities Non-current liabilities: Due within one year Due in more than one year Total liabilities NET POSITION Net Investment in Capital Assets Restricted for: Debt service - expendable Economic development Environmental improvements - expendable Environmental improvements - nonexpendable Unrestricted Total net position Statement 1 Governmental Business -type Activities Activities Total $ 22,800,304 $ 13,055,884 $ 35,856,188 62,539 - 62,539 103,349 350,728 454,077 86,428 1,750 88,178 (559,110) 559,110 - 239,532 - 239,532 9,592,176 2,049 9,594,225 225,000 - 225,000 254,773 33,825 288,598 - 26,262 26,262 100,000 - 100,000 3,275,859 - 3,275,859 808,093 - 808,093 32,129,032 27,556,022 59,685,054 69,117,975 41,585,630 110,703,605 399,101 78,760 477,861 139,854 9,780 149,634 113,308 - 113,308 249,868 - 249,868 1,097 - 1,097 684 - 684 3,163,953 36,726 3,200,679 16,315,242 16,064 16,331,306 20,383,107 141,330 20,524,437 19,540,807 27,556,022 47,096,829 8,312,623 - 8,312,623 225,000 - 225,000 28,734 - 28,734 100,000 - 100,000 20,527,704 13,888,278 34,415,982 $ 48,734,868 $ 41,444,300 $ 90,179,168 The accompanying notes are an integral part of these basic f nancial statements. 22 CITY OF LINO LAKES, MINNESOTA STATEMENT OF ACTIVITIES Year Ended December 31, 2014 Functions/Programs Expenses Governmental activities: Program Revenues Capital Charges for Operating Grants Grants and Services and Contributions Contributions General government $ 2,036,550 $ 103,072 $ 15,649 $ - Public safety 4,107,759 763,470 187,848 - Public services 4,786,121 464,486 383,645 335,733 Parks, recreation and forestry 1,093,909 156,735 155,000 - Conservation of natural resources 159,649 1,882 71,682 - Community development 407,448 39,395 26,852 - Interest on long-term debt 618,680 - - - Total governmental activities 13,210,116 1,529,040 840,676 335,733 Business -type activities: Water 965,641 965,425 - 515 Sewer 1,628,258 1,564,099 - 520 Total business -type activities 2,593,899 2,529,524 - 1,035 Total $ 15,804,015 $ 4,058,564 $ 840,676 $ 336,768 General revenues: Taxes: Property taxes, levied for general purpose Franchise taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Change in market value Gain on disposal of capital assets Transfers Total general revenues and transfers Change in net position Net position - beginning Net position - ending The accompanying notes are an integral part of these basic financial statements. 23 Statement 2 Net (Expense) Revenue and Changes in Net Position Governmental Business -type Activities Activities Total $ (1,917,829) (3,156,441) (3,602,257) (782,174) (86,085) (341,201) (618,680) (10,504,667) $ (1,917,829) (3,156,441) (3,602,257) (782,174) (86,085) (341,201) (618,680) (10,504,667) 299 299 - (63,639) (63,639) (63,340) (63,340) (10,504,667) (63,340) (10,568,007) 8,612,016 - 8,612,016 124,292 - 124,292 70,578 - 70,578 4,443 - 4,443 172,738 96,213 268,951 92,957 58,255 151,212 1,727 - 1,727 69,294 (69,294) - 9,148,045 85,174 9,233,219 (1,356,622) 21,834 (1,334,788) 50,091,490 41,422,466 91,513,956 $ 48,734,868 $ 41,444,300 $ 90,179,168 24 CITY OF LINO LAKES, MINNESOTA BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2014 The accompanying notes are an integral part of these basic financial statements 25 G.O. Improvement Municipal Improvement Note State Assets General Bonds 2005A 2009F Aid Cash and investments $ 5,078,336 $ 959 $ 33,780 $ 3,922,220 Accrued interest receivable 62,539 - - - Accounts receivable 80,444 - - - Due from other governmental units 86,428 - - - Interfund receivable - - - - Taxes receivable: Delinquent 115,320 - - - Due from county 92,170 - - - Delinquent tax increment - - - - Special assessments receivable: Delinquent 6,835 - 726 - Noncurrent 271 5,561,118 2,729,693 - Due from county - - 7,180 - Long-term notes receivable - - - - Prepaid items 253,471 - - - Permanently restricted cash and investments - - - - Advances to other funds - - - - Total assets $ 5,775,814 $ 5,562,077 $ 2,771,379 $ 3,922,220 Liabilities , Deferred Inflows of Resources and Fund Balances Liabilities: Interfund payable $ - $ 2,494,643 - Accounts payable 198,448 - 6,061 - Salaries payable 139,401 - - - Contracts and retainage payable 7,907 - - - Due to other governmental units 1,097 - - - Advances from other funds - - - - Unearned revenue - - - Total liabilities 346,853 2,494,643 6,061 - Deferred inflows of resources: Unavailable resources 122,426 5,561,118 2,730,419 - Fund balances: Nonspendable 253,471 - - - Restricted - - 34,899 - Committed - - - - Assigned - - - 3,922,220 Unassigned 5,053,064 (2,493,684) - - Total fund balances 5,306,535 (2,493,684) 34,899 3,922,220 Total liabilities , deferred inflows of resources and fund balances $ 5,775,814 $ 5,562,077 $ 2,771,379 $ 3,922,220 The accompanying notes are an integral part of these basic financial statements 25 Statement 3 Area and Other Total Unit Governmental Governmental Charge Funds Funds $ 3,991,116 $ 9,773,893 $ 22,800,304 - - 62,539 22,402 503 103,349 - - 86,428 - 2,958,421 2,958,421 - 17,201 132,521 14,841 107,011 15,965 23,354 46,880 749,355 488,746 9,529,183 6,275 2,658 16,113 - 225,000 225,000 - 1,302 254,773 - 100,000 100,000 374,706 - 374,706 $ 5,159,819 $ 13,605,919 $ 36,797,228 $ - $ 1,022,888 $ 3,517,531 10,822 183,770 399,101 - 453 139,854 - 105,401 113,308 - - 1,097 - 374,706 374,706 - 684 684 10,822 1,687,902 4,546,281 765,320 529,301 9,708,584 - 101,302 354,773 - 2,795,627 2,830,526 - 152,078 152,078 4,383,677 9,721,876 18,027,773 - (1,382,167) 1,177,213 4,383,677 11,388,716 22,542,363 $ 5,159,819 $ 13,605,919 $ 36,797,228 26 -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2014 Total Fund Balances for Governmental Funds Total net position reported for governmental activities in the statement of net position is different because: Statement 4 $ 22,542,363 Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. Those assets consist of: Land $ 3,275,859 Construction in Progress 808,093 Buildings, net of accumulated depreciation 3,116,839 Office equipment and furniture, net of accumulated depreciation 364,999 Vehicles, net of accumulated depreciation 1,170,030 Machinery and shop equipment, net of accumulated depreciation 336,387 Other equipment, net of accumulated depreciation 167,804 Infrastructure, net of accumulated depreciation 26,972,973 36,212,984 Some of the City's property taxes and special assessments will be collected after year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as a deferred inflow of resources in the governmental funds. 9,708,584 Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. Accrued interest for general obligation bonds is included in the statement of net position. (249,868) Long-term liabilities that pertain to governmental funds, including bonds payable, are not due and payable in the current period and, therefore, are not reported as fund liabilities. All liabilities - both current and long-term - are reported in the statement of net position. Balances at year-end are: Bonds payable (16,676,000) Unamortized premiums (28,861) Unamortized discounts 32,684 Notes payable (2,080,000) Other postemployment benefits (91,023) Compensated absence payable (635,995) Total Net Position of Governmental Activities The accompanying notes are an integral part of these basic financial statements. 27 (19,479,195) $ 48,734,868 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended December 31, 2014 Revenue: General property taxes Tax increments Licenses and permits Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government Public safety Public works Parks, recreation and forestry Conservation of natural resources Community development Capital outlay: General government Public safety Public works Conservation of natural resources Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Issuance of debt Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - beginning of year Fund balance - December 31 G.O. Improvement Municipal Improvement Note State General Bonds 2005A 2009F Aid $ 7,147,977 $ - $ - $ - 407,681 - - - 512,064 - - - 15,701 - 653,350 - 313,826 - - - 119,715 - - - 30,506 - 5 35,434 17,503 - 253 21,189 32,135 - - - 131,485 - - - 8,728,593 - 653,608 56,623 1,683,185 3,845,732 1,336,087 791,075 149,292 400,145 4,576 32,986 9,867 - - - - 365,000 1,615,000 - - 168,784 121,012 - O,GJG,74J )JJ, /O'* 15/JV,V 1G - 475,648 (533,784) (1,082,404) 56,623 10,000 141,838 121,012 124,578 (565,196) - - (854,778) (555,196) 121,012 (730,200) 141,838 (79,548) (391,946) (961,392) (673,577) 5,386,083 (2,101,738) 996,291 4,595,797 $ 5,306,535 $ (2,493,684) $ 34,899 $ 3,922,220 The accompanying notes are an integral part of these basic financial statements. 28 Statement 5 Area and Other Total Unit Governmental Governmental Charge Funds Funds $ - $ 1,200,316 $ 8,348,293 - 263,718 263,718 - - 407,681 - 310,961 823,025 368,760 240,391 1,278,202 243,402 174,412 731,640 - 29,938 149,653 42,853 64,624 173,422 14,340 39,087 92,372 - 22,924 55,059 - 580,933 712,418 669,355 2,927,304 13,035,483 - 8,990 1,692,175 - - 3,845,732 40,367 1,837,234 3,213,688 - 151,734 942,809 - - 149,292 - 2,605 402,750 127,980 132,556 - 229,250 262,236 269,829 269,829 - - 9,867 1,684,000 3,664,000 406,984 696,780 40,367 4,718,606 15,281,714 628,988 (1,791,302) (2,246,231) - 2,211,106 2,608,534 (415,362) (703,904) (2,539,240) - 1,727 1,727 - 3,140,000 3,140,000 (415,362) 4,648,929 3,211,021 213,626 2,857,627 964,790 4,170,051 8,531,089 21,577,573 $ 4,383,677 $ 11,388,716 $ 22,542,363 29 CITY OF LINO LAKES, MINNESOTA Statement 6 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2014 Net Change in Fund Balances -Total Governmental Funds $ 964,790 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. Capital outlays $ 1,298,482 Depreciation expense (2,940,471) (1,641,989) The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported as an expenditure. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities and repayment of principal reduces the liability. Also, governmental funds report the effect of premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Interest is recognized as an expenditure in the governmental funds when it is due. In the statement of activities, however, interest expense is recognized as it accrues, regardless of when it is due. The net effect of these differences in the treatment of general obligation bonds and related items is as follows: Issuance of bonds (2,645,000) Issuance of equipment certificates (495,000) Bond discount 12,564 Repayment of bond principal 3,664,000 Change in accrued interest expense for general obligation bonds 46,126 Amortization of bond premium 21,974 Amortization of bond discount (2,563) 602,101 Delinquent and noncurrent property taxes and special assessments receivable will be collected subsequent to year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are not available in the governmental funds. Unavailable resources - December 31, 2013 10,961,595 Unavailable resources - December 31, 2014 9,708,584 (1,253,011) In the statement of activities, compensated absences and other post employment benefits are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). During fiscal year 2014, compensated absence payable and other post employment benefits payable increased. (28,513) Change in Net Position of Governmental Activities $ (1,356,622) The accompanying notes are an integral part of these basic financial statements. 30 CITY OF LINO LAKES, MINNESOTA Statement 7 STATEMENT OF NET POSITION - PROPRIETARY FUNDS December 31, 2014 Total Assets Water Sewer 2014 Current assets: Cash and cash equivalents $ 5,322,125 $ 7,733,759 $ 13,055,884 Accounts receivable 143,208 207,520 350,728 Due from other governmental units - 1,750 1,750 Interfund receivable - 559,110 559,110 Due from county - special assessments 1,024 1,025 2,049 Prepaid items 12,154 21,671 33,825 Total current assets 5,478,511 8,524,835 14,003,346 Non-current assets: Inventory 26,262 - 26,262 Capital assets being depreciated: Buildings 48,690 - 48,690 Equipment 155,276 390,235 545,511 Water and sewer systems 20,088,392 21,406,972 41,495,364 Total capital assets 20,292,358 21,797,207 42,089,565 Less: allowance for depreciation (6,854,589) (7,678,954) (14,533,543) Net capital assets 13,437,769 14,118,253 27,556,022 Total noncurrent assets 13,464,031 14,118,253 27,582,284 Total assets 18,942,542 22,643,088 41,585,630 Liabilities Current liabilities: Accounts payable 50,339 28,421 78,760 Salaries payable 5,053 4,727 9,780 Compensated absences payable - current portion 18,363 18,363 36,726 Total current liabilities 73,755 51,511 125,266 Non-current liabilities: Compensated absences payable - long term 8,032 8,032 16,064 Total liabilities 81,787 59,543 141,330 Net position Investment in capital assets 13,437,769 14,118,253 27,556,022 Unrestricted 5,422,986 8,465,292 13,888,278 Total net position $ 18,860,755 $ 22,583,545 $ 41,444,300 The accompanying notes are an integral part of these basic financial statements. 31 CITY OF LINO LAKES, MINNESOTA Statement 8 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS Year Ended December 31, 2014 Operating revenue: Charges for services Hook-up charges Water meter sales Other operating revenue Total operating revenue Operating expenses: Personal services Materials and supplies Contractual services MCES sewer charges Depreciation Utilities Other Total operating expenses Net income (loss) from operations Other income (expense): Investment earnings Net increase (decrease) in fair value of investments Special assessments Total other expense Net income before contributions and transfers Capital contributions and transfers: Transfer out Total contributions and transfers Change in net position Net position - January 1 Net position - December 31 The accompanying notes are an integral part of these basic financial statements. 32 Total Water Sewer 2014 $ 943,234 $ 1,557,214 $ 2,500,448 8,250 6,885 15,135 10,808 - 10,808 3,133 - 3,133 965,425 1,564,099 2,529,524 193,941 197,163 391,104 137,998 53,736 191,734 117,434 77,959 195,393 - 791,580 791,580 422,674 444,588 867,262 79,239 40,163 119,402 14,355 23,069 37,424 965,641 1,628,258 2,593,899 (216) (64,159) (64,375) 38,609 57,604 96,213 23,431 34,824 58,255 515 520 1,035 62,555 92,948 155,503 62,339 28,789 91,128 (34,647) (34,647) (69,294) (34,647) (34,647) (69,294) 27,692 (5,858) 21,834 18,833,063 22,589,403 41,422,466 $ 18,860,755 $ 22,583,545 $ 41,444,300 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended December 31, 2014 Cash flows from operating activities: Cash receipts from customers Cash paid to suppliers Cash paid to employees Net cash flows from operating activities Cash flows from noncapital financing activities: Net transfers Cash flows from capital and related financing activities: Collection of special assessments Cash flows from investing activities: Interest on investments Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to net cash from operating activities: Operating income (loss) Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation Change in assets and liabilities: Decrease in receivables (Increase) in prepaid items (Increase) in inventory Increase in payables Net cash flows from operating activities The accompanying notes are an integral part of these basic financial statements. 33 Statement 9 Total Water Sewer 2014 $ 1,029,532 $ 1,564,350 $ 2,593,882 (329,606) (975,125) (1,304,731) (197,240) (200,493) (397,733) 502,686 388,732 891,418 (34,647) (34,647) (69,294) 803 700 1,503 62,040 92,428 154,468 530,882 447,213 978,095 4,791,243 7,286,546 12,077,789 $ 5,322,125 $ 7,733,759 $ 13,055,884 $ (216) $ (64,159) $ (64,375) 422,674 444,588 867,262 64,107 251 64,358 (5,277) (7,152) (12,429) (11,578) - (11,578) 32,976 15,204 48,180 $ 502,686 $ 388,732 $ 891,418 CITY OF LINO LAKES, MINNESOTA Statement 10 STATEMENT OF NET POSITION - FIDUCIARY FUNDS - AGENCY FUNDS December 31, 2014 2014 Assets Cash and investments $ 783,438 Liabilities Deposits payable $ 783,438 The accompanying notes are an integral part of these financial statements. 34 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by U.S. generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Lino Lakes and its component units. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. Component Units In conformity with U.S. generally accepted accounting principles, the financial statements of component units have been included in the financial reporting entity either as blended component units or as discretely presented component units. Blended Component Units The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations because the governing body is substantively the same as the governing body of the City and a financial benefit or burden relationship exists between the City and the EDA. The EDA does not issue separate financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations because the members of the City Council serve as commission members and a financial benefit or burden relationship exists between the City and the HRA. The HRA has not yet incurred any financial activity. B. BASIC FINANCIAL STATEMENTS 1. Government -Wide Statements The government -wide financial statements (i.e., the statement of net position and the statement of activities) display information about the primary government and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges to external parties for support. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's enterprise funds and various other functions of government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 35 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 1. Government -Wide Statements (Continued) In the government -wide statement of net position, both the governmental and business -type activities columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The City's net position is reported in three parts: (1) net investment in capital assets; (2) restricted net position; and (3) unrestricted net position. The City first utilizes restricted resources to finance qualifying activities. The statement of activities demonstrates the degree to which the direct expenses of each function of the City's governmental activities and different business -type activities are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a given function or activity; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds, including its fiduciary funds and blended component unit. Separate statements for each fund category (governmental, proprietary, and fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or incidental activities. The City reports the following major governmental funds: General Fund The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. General Obligation Improvement Bonds 2005A Fund The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. Improvement Note 2009F Fund The improvement note 2009F fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. Municipal State Aid Fund The Municipal State Aid fund accounts for the collection of assessments on municipal state aid projects. 36 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 2. Fund Financial Statements (Continued) Area and Unit Charge Fund The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for debt payments and construction of governmental infrastructure. The City reports the following major proprietary funds: Water Fund The water fund accounts for customer water service charges that are used to finance water operating expenses. Sewer Fund The sewer fund accounts for customer water service charges that are used to finance sewer operating expenses. Additionally, the City reports the following fiduciary funds: Agency Funds - to account for assets held as an agent for individuals, private organizations, other governmental units, and/or other funds. The City's agency fund accounts for pass-through contractor's deposits relating to prospective developments. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. The City considers all revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. 37 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED) Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services, or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions, including special assessments. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. 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 appropriation, is not employed by the City because it is not presently considered necessary to assure effective budgetary control or to facilitate effective cash management. E. LEGAL COMPLIANCE — BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget (including the General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The City Administrator is authorized to transfer appropriations within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 38 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. LEGAL COMPLIANCE — BUDGETS (CONTINUED) 7. A capital improvement program is reviewed periodically by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e. administration, community development, public safety, public services, and other). 9. The City Council may authorize transfers of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund in the governmental fund financial statements, and an interfand payable in the fund with the deficit, until adequate resources are received. These interfund payables are eliminated for statement of net position presentation. Investments are stated at fair value and interest earnings are accrued at year-end. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. Permanently restricted cash and investments represents the principal and earnings portion of resources received that must be retained in a permanent fund. Only earnings from these funds may be used for purposes that support environmental maintenance and improvements. G. PROPERTY TAX CREDITS Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property. The State remits these credits through installments each year. These credits are recognized as revenue by the City at the time of collection. 39 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year-end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred inflows of resources because it is not available to finance current expenditures. Deferred inflows of resources in governmental fund are susceptible to full accrual on the government -wide statements. 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 through this formula for 2014 totaled $1,216,616. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. L SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, noncurrent and special assessments receivable in governmental funds are completely offset by deferred inflow of resources. Deferred inflows of resources in governmental funds are susceptible to full accrual on the government -wide statements. 40 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED) Once a special assessment roll is adopted, the amount attributed to each parcel is 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 are allowed to go delinquent, the property is subject to tax forfeit sale and 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 a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. J. INVENTORIES AND PREPAIDS The original cost of materials and supplies has been recorded as expenditures/expenses at the time of purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts of materials and supplies. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items under the purchases method in both government -wide and fund financial statements. K. INTERFUND RECEIVABLES/PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. The year-end balances are classified as interfund receivables and payables on the governmental fund balance sheets. The non-current portion of interfund loans are reported as "advances to/from other funds." Advances between funds are offset by a nonspendable fund balance account in the general fund to indicate they are not available for appropriation and are not expendable from available financial resources. L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, street lights, and similar items) are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets exceeding the City's capitalization threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. All existing City infrastructure has been capitalized regardless of date placed in service. Depreciation on exhaustible assets is recorded as an allocated expense in the statement of activities with accumulated depreciation reflected in the statement of net position. Capital assets are depreciated using the straight-line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure. Capital assets not being depreciated include land. 41 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation, PTO (Personal Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay allowable as severance pay is accrued in the government -wide and proprietary fund financial statements. The current portion is calculated based on historical trends. N. LONG-TERM OBLIGATIONS In the entity -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as an expense in the period they are incurred. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. O. FUND EQUITY In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable — portions of fund balance related to prepaids, inventories, long-term receivables, and corpus on any permanent fund. Restricted — funds are constrained by external parties (statute, grantors, bond agreements, etc.). Committed — funds are established and modified by a resolution approved by the City Council. Assigned — consists of internally imposed constraints. These constraints are established by the City Council and/or management. The City Council passed a resolution authorizing the Finance Director to assign fund balances and their intended uses. Unassigned — is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the City's policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts. The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund balance range of 40% - 50% of General Fund operating expenditures. 42 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. FUND EQUITY (CONTINUED) The fund equity balances in the proprietary funds have been classified into two broad categories: • Net position — net investment in capital assets • Unrestricted net position Net position represents the differences between assets and deferred outflows of resources and liabilities and deferred inflows of resources in the government -wide financial statements. Net position — net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the ouststanding balance of any long-term debt used to build or acquire capital assets. Net position is reported as restricted in government -wide financial statements when there are limitations on their use thorugh external restrictions imposed by creditors, grantors, or laws or regulations of other governments. P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All interfund transactions are eliminated except for activity between governmental activities and business - type activities for presentation in the entity -wide statements of net position and statements of activities. Note 2 DEPOSITS AND INVESTMENTS Components of Cash and Investments Cash and investments at year-end consist of the following: Deposits Investments Cash on Hand Total Cash and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Position Permanent restricted Cash and Investments - Statement of Net Position Cash and Investments - Statement of Net Position - Fiduciary Funds Total A. DEPOSITS $ 5,215,913 31,522,893 820 $ 36,739.626 $ 35,856,188 100,000 783,438 $ 36,739,626 The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council. 43 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) A. DEPOSITS (CONTINUED) Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial credit risk but rather follows Minnesota Statutes for deposits. Minnesota Statutes require that all 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 corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of a state or local government rated "A" or better; revenue obligations of a state or local government rated "AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a commercial bank or other financial institution not owned or controlled by the depository. The City's deposits in banks at December 31, 2014 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. B. INVESTMENTS The City may also invest idle funds as authorized by Minnesota Statutes as follows: • Direct obligations or obligations guaranteed by the United States or its agencies • Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less • General obligations rated "A" or better; revenue obligations rated "AA" or better • General obligations of the Minnesota Housing Finance Agency rated "A" or better • Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System • Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days or less • Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories • Repurchase or reverse purchase agreements and securities lending agreements financial institutions qualified as a "depository" by the government entity, 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 • Any security which is an obligation of a school district with an original maturity not exceeding 13 months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the credit enhancement program pursuant to section 126C.55. Investments Held with Broker — Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City's policy to minimize interest rate risk includes investing primarily in short-term securities and structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations. Information about the sensitivity of the fair values of the City's investments to market interest rate risk fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: 44 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. INVESTMENTS (CONTINUED) Type Minnesota Municipal Money Market Trust Fund Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assn. Negotiable CDs Municipal Bonds Mutual Fund Total Credit Risk 25 to 60 More than Months 60 Months 12 Months 13 to 24 Total or Less Months $ 252,220 $ 252,220 $ - 1,375,394 275,017 1,989,713 300,167 - 300,167 1,995,937 - 1,995,937 16,947,235 10,866,000 4,303,032 9,123,402 - 1,006,501 1,528,538 1,528,538 - $ 31,522,893 $ 12,921,775 $ 5,309,533 25 to 60 More than Months 60 Months Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City's policy to minimize credit risk includes limiting investing funds to those allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following chart summarizes year-end ratings for the City's investments as rated by Moody's Investors Service: Credit - 1,100,377 300,167 - - 1,995,937 1,778,203 - 6,127,188 1,989,713 $ 8,205,558 $ 5,086,027 Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City's policy to minimize credit risk includes limiting investing funds to those allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following chart summarizes year-end ratings for the City's investments as rated by Moody's Investors Service: The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota statutes as described on the previous page. Its investments are valued at amortized cost, which approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The amortized cost method of valuation values a security at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the fair value of instruments. The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2. For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. 45 Credit Type Quality Rating Amount Minnesota Municipal Money Market Trust Fund Aa2 $ 252,220 Federal Home Loan Bank Aaa/AA+ 1,375,394 Federal Home Loan Mortgage Corp. Aaa/AA+ 300,167 Federal National Mortgage Assn. Aaa/AA+ 1,995,937 Negotiable CDs Not Rated 16,947,235 Municipal Bonds A-Aaa 9,123,402 Mutual Fund Not Rated 1,528,538 Total $ 31,522,893 The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota statutes as described on the previous page. Its investments are valued at amortized cost, which approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The amortized cost method of valuation values a security at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the fair value of instruments. The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2. For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. 45 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. INVESTMENTS (CONTINUED) Concentration of Credit Risk The City places no limit on the amount that it may invest in any one issuer. The following is a list of investments which individually comprise more than 5% of the City's total investments: Type Amount Percentage Federal National Mortgage Assn. $ 1,995,937 6.33% Note 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2014 was as follows: Beginning Ending Balance Increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 3,275,859 $ - $ $ 3,275,859 Construction in Progress - 808,093 - 808,093 Total Capital Assets, Not Being Depreciated 3,275,859 808,093 4,083,952 Capital Assets, Being Depreciated: Buildings 6,726,117 39,502 6,765,619 Office Equipment and Furniture 1,383,032 35,340 (19,650) 1,398,722 Vehicles 2,542,950 375,422 (26,911) 2,891,461 Machinery and Shop Equipment 920,595 40,125 - 960,720 Other Equipment 952,447 - 952,447 Infrastructure 78,607,804 78,607,804 Total Capital Assets, Being Depreciated 91,132,945 490,389 (46,561) 91,576,773 Accumulated Depreciation for: Buildings (3,424,201) (224,579) - (3,648,780) Office Equipment and Furniture (975,416) (77,957) 19,650 (1,033,723) Vehicles (1,478,385) (269,957) 26,911 (1,721,431) Machinery and Shop Equipment (580,350) (43,983) - (624,333) Other Equipment (769,747) (14,896) - (784,643) Infrastructure (49,325,732) (2,309,099) - (51,634,831) Total Accumulated Depreciation (56,553,831) (2,940,471) 46,561 (59,447,741) Total Capital Assets, Being Depreciated, Net 34,579,114 (2,450,082) - 32,129,032 Governmental Activities Capital Assets, Net $ 37,854,973 $ (1,641,989) $ - $ 36,212,984 46 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 3 CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Balance Business -Type Activities: Capital Assets, Being Depreciated: Buildings $ 48,690 $ $ $ 48,690 Machinery and Shop Equipment 545,511 545,511 Water and Sewer Lines 41,495,364 41,495,364 Total Capital Assets, Being Depreciated 42,089,565 42,089,565 Accumulated Depreciation for: Buildings (48,690) (48,690) Machinery and Shop Equipment (312,584) (21,899) (334,483) Water and Sewer Lines (13,305,007) (845,363) (14,150,370) Total Accumulated Depreciation (13,666,281) (867,262) (14,533,543) Total Capital Assets, Being Depreciated, Net 28,423,284 (867,262) 27,556,022 Business -Type Capital Assets, Net $ 28,423,284 $ (867,262) $ $ 27,556,022 Depreciation expense charged to functions/programs of the primary government as follows: Governmental Activities: General Government $ 237,834 Public Safety 144,301 Public Services 2,409,552 Parks, Recreation and Forestry 148,284 Community Development 500 Total Depreciation Expense, Governmental Activities $ 2,940,471 Business -type Activities: Water $ 422,674 Sewer 444,588 Total Depreciation Expense, Governmental Activities $ 867,262 47 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 4 CITY INDEBTEDNESS City indebtedness at December 31, 2014 is composed of the following: Governmental Activities: General Obligation Bonds: 2012A Equipment Certificates 2013A Equipment Certificates 2014A Equipment Certificates G.O. Tax Abatement Bonds, Series 2006C G.O. Utility Revenue Bonds, Series 2006D G.O. CIP Refunding Bonds, Series 2006E G.O. Tax Increment Financing Bonds, Series 2007A G.O. Refunding Bonds, Series 2012A Total General Obligation Bonds Special Assessment Bonds: G.O. Improvement Bonds, Series 2005A G.O. Improvement Refunding Bonds, Series 2005B G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A G.O. Improvement Bonds, Series 2013A G.O. Improvement Bonds, Series 2014A Total Special Assessment Bonds Total Bonds Note Payable - Anoka County - 2009F Unamortized Bond Discounts Unamortized Bond Premiums Compensated Absences Payable Other Post Employment Benefit Plan Total Governmental Activities Business -Type Activities: Revenue Bonds: Compensated Absences Payable 48 Final Issue Maturity Interest Original Payable Date Date Rate Issue 12/31/2014 2/1/2012 12/31/2014 1.00% $ 150,000 $ 51,000 2/1/2013 12/31/2015 1.00% 193,000 130,000 2/15/2014 12/31/2017 1.00% 495,000 495,000 8/15/2006 2/1/2023 4.00%-4.30% 2,460,000 2,080,000 8/15/2006 2/1/2017 4.00%-4.15% 570,000 195,000 11/1/2006 2/1/2018 4.00% 2,990,000 1,570,000 7/15/2007 2/1/2024 4.00%-4.125% 4,215,000 2,765,000 11/15/2012 2/1/2024 1.00%-2.00% 2,015,000 1,945,000 13,208,000 9,231,000 11/1/2005 2/1/2021 4.35%-5.15% 5,550,000 3,140,000 11/1/2005 2/1/2015 3.75%-5.00% 3,755,000 420,000 7/9/2010 2/1/2020 2.00%-3.00% 1,000,000 625,000 7/15/2013 2/1/2024 1.25%-4.00% 615,000 615,000 11/20/2014 2/1/2026 0.40%-2.30% 2,645,000 2,645,000 13,815,000 7,445,000 27,023,000 16,676,000 8/1/2009 8/1/2024 4.00%-3.70% 4,260,000 2,080,000 (45,490) (32,684) 202,370 28,861 N/A 635,995 N/A 91,023 $ 31,439,880 $ 19,479,195 N/A $ 52,790 48 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 4 CITY INDEBTEDNESS (CONTINUED) Notes Payable Total The following is a schedule of changes in City indebtedness for the year ended December 31, 2014: Interest Principal Interest Payable Interest Years Endine December 31, Payable Due Within 12/31/2013 Issues Payments 12/31/2014 One Year Governmental activities: $ 360,000 $ 79,565 $ 2,751,000 $ 579,880 2016 Bonded debt: 429,419 375,000 70,166 2,497,000 499,585 General Obligation $ 9,865,000 $ 495,000 $ 1,129,000 $ 9,231,000 $ 1,431,000 Special Assessment 5,720,000 2,645,000 920,000 7,445,000 960,000 Unamortized Bond Discounts (22,683) (12,564) (2,563) (32,684) - Unamortized Bond Premiums 50,835 271,373 21,974 28,861 - Note Payable - Anoka County 3,695,000 - 1,615,000 2,080,000 360,000 Compensated Absences Payable 614,536 531,848 510,389 635,995 412,953 Other Post Employment Benefit Plan 83,969 7,054 - 91,023 - Total Governmental Activities 20,006,657 3,666,338 4,193,800 19,479,195 3,163,953 Business -Type Activities: Compensated Absences Payable 54,182 46,159 47,551 52,790 36,726 Total $ 20,060,839 $ 3,712,497 $ 4,241,351 $ 19,531,985 $ 3,200,679 All long-term bonded indebtedness outstanding at December 31, 2014 is backed by the full faith and credit of the City, including special assessment bond issues. Minimum annual principal and interest payments required to retire long-term debt, not including compensated absences payable are as follows. Description and Restrictions of Long -Term Debt General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. Note Payable - Anoka County 2009F - This note was used to finance improvement projects at the I -15E and County State Highway 14 interchange and will be repaid primarily with special assessments levied on the properties benefiting from the improvements. 49 Bonded Debt Notes Payable Total Principal Interest Principal Interest Principal Interest Years Endine December 31, 2015 $ 2,391,000 $ 500,315 $ 360,000 $ 79,565 $ 2,751,000 $ 579,880 2016 2,122,000 429,419 375,000 70,166 2,497,000 499,585 2017 2,413,000 358,191 390,000 60,164 2,803,000 418,355 2018 2,030,000 287,877 405,000 49,565 2,435,000 337,442 2019 1,670,000 258,014 420,000 13,359 2,090,000 271,373 2020-2024 5,855,000 386,123 130,000 46,415 5,985,000 432,538 2025-2026 195,000 3,048 195,000 3,048 Total $ 16,676,000 $ 2,222,987 $ 2,080,000 $ 319,234 $ 18,756,000 $ 2,542,221 Description and Restrictions of Long -Term Debt General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. Note Payable - Anoka County 2009F - This note was used to finance improvement projects at the I -15E and County State Highway 14 interchange and will be repaid primarily with special assessments levied on the properties benefiting from the improvements. 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 4 CITY INDEBTEDNESS (CONTINUED) Description and Restrictions of Long -Term Debt (Continued) Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be repaid primarily from pledged revenues derived from the constructed assets. In November 2014, the City issued General Obligation Bonds of $2,645,000 to fund various street and utility improvements within the City and improvements to the City's water system, including construction of a new well and well house. Approximately $1,510,000 of special assessments are expected to be filed related to the improvement portion of the bond. Net revenues of the City's water utility will repay the additional bond indebtedness. The bond was issued at a rate of 0.40%. The bonds will mature in 2026. Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. For the governmental activities, compensated absences and other postemployment benefit liability are generally liquidated by the general fund. The liability for Proprietary Fund employees is included in the accrued liabilities of those funds. Note 5 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Lino Lakes' legal debt margin for 2014 is computed as follows: 50 12/31/2014 Market Value $ 1,509,921,169 Applicable Percentage 3.0% Debt Limit 45,297,635 Amount of Debt Applicable to Debt Limit: Total Bonded Debt 16,676,000 Less: Special Assessment Bonds (7,445,000) Tax Abatement Bonds (2,080,000) Utility Revenue Bonds (195,000) Tax Increment Financing Bonds (2,765,000) Total Debt Applicable to Debt Limit 4,191,000 Legal Debt Margin $ 41,106,635 50 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE A. PLAN DESCRIPTION All full-time and certain part-time employees of the City of Lino Lakes are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are a cost-sharing, multiple -employer retirement plan. This plan is established and administered in accordance with Minnesota Statutes, Chapter 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0% for each year of service. For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees, who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the internet at www.nmpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by calling (651) 296-7460 or 1-800-652-9026. 51 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) B. FUNDING POLICY Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 6.25% respectively, of their annual covered salary. PEPFF members were required to contribute 9.6% of their annual covered salary. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the General Employees Retirement Fund for the years ended December 31, 2014, 2013, and 2012 were $162,934, $160,392, and $164,317, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ended December 31, 2014, 2013, and 2012 were $314,426, $290,737, and $315,541, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater Services (MOWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. 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. Note 8 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 2014 as follows: The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. 52 Fund Balance Deficit G.O. Improvement Bonds 2005A (2,493,684) Dedicated Parks $ (251,933) 21stAve. Extension 1-13 (193,082) Tax Increment Financing 1-11 (771,119) Fire House House #2 1-14 (105,685) Birch St Sanitary Sewer (11,331) Shenandoah Street Reconstruction (32,271) Improvement Bonds 2013A (16,746) The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. 52 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 8 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (CONTINUED) B. EXPENDITURES IN EXCESS OF BUDGET The following is a listing of expenditure categories that exceed budget appropriations: Note 9 CONTINGENCIES Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could have a material effect on the financial statements. Federal and State Funds — 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 financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2014. Liti ag tion — The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments, and litigation. As of December 31, 2014 any potential affect this may have on the City is not estimable, however it is not expected to have a material effect on the financial statements of the City. Labor Contracts — The City has various employees that are covered under labor agreements, that are subject to collective bargaining. The status of labor contracts in the City is as follows: Number of Expiration Date of Bargaining Unit Employees Current Contract LELS - Patrol 17 LELS - Patrol 49ers - Public Works AFSCME Non -unionized Employees Total Employees 15 17 62 53 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 Budget Actual Excess General Fund: General Government Buildings $ 419,163 $ 431,605 $ (12,442) Fire Protection 558,687 563,412 (4,725) Recreation 297,227 298,506 (1,279) Solid Waste Abatement 64,239 75,416 (11,177) Planning and Zoning Commission 112,088 114,285 (2,197) Program Recreation Special Revenue Fund: Supplies 38,250 43,815 (5,565) Other Services and Charges - 1,656 (1,656) Note 9 CONTINGENCIES Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could have a material effect on the financial statements. Federal and State Funds — 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 financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2014. Liti ag tion — The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments, and litigation. As of December 31, 2014 any potential affect this may have on the City is not estimable, however it is not expected to have a material effect on the financial statements of the City. Labor Contracts — The City has various employees that are covered under labor agreements, that are subject to collective bargaining. The status of labor contracts in the City is as follows: Number of Expiration Date of Bargaining Unit Employees Current Contract LELS - Patrol 17 LELS - Patrol 49ers - Public Works AFSCME Non -unionized Employees Total Employees 15 17 62 53 December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely 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. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2014. Future scheduled tax levies for all bonds outstanding at December 31, 2014 totaled $14,529,317. Note 11 FUND BALANCE At December 31, 2014, the City had various fund balances restricted, committed, or assigned through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2014 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: Note 12 SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2014 was $71,015. 54 Total Nonspendable Restricted Committed Assigned Unassigned General Fund: $ 5,053,064 $ - $ $ $ $ 5,053,064 Prepaid Items 253,471 253,471 - Total General Fund 5,306,535 253,471 5,053,064 G.O. Improvement Bonds 2005A: Deficit Fund Balance (2,493,684) - - (2,493,684) Improvement Bonds 2009F: Debt Service 34,899 34,899 Municipal State Aid: Construction Projects 3,922,220 - 3,922,220 Area and Unit Charge: Advances to Other Funds 374,706 374,706 Construction Projects 4,008,971 4,008,971 Total Area and Unit Charge 4,383,677 - 4,383,677 Nonmajor Governmental Funds: Prepaid Items 1,302 1,302 - - Economic Development - Loan Receivable 225,000 - 225,000 Corpus of Permanent Fund 100,000 100,000 - - Program Recreation 112,747 - 112,747 Cable TV Fund 39,331 39,331 Blue Heron Days 11,321 11,321 - Federal Narcotics 39,647 39,647 State Narcotics 5,811 5,811 DUI Forfeitures 1,528 1,528 Environmental Improvements 28,734 28,734 Debt Service 2,466,840 2,483,586 - (16,746) Construction Projects 9,721,876 - 9,721,876 Deficit Fund Balance (1,365,421) (1,365,421) Total Nonmajor Funds 11,388,716 101,302 2,795,627 152,078 9,721,876 (1,382,167) Total Fund Balances $ 22,542,363 $ 354,773 $ 2,830,526 $ 152,078 $ 18,027,773 $ 1,177,213 Note 12 SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2014 was $71,015. 54 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 13 INTERFUND RECEIVABLE AND PAYABLES The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds and at December 31, 2014 are as follows: Receivable Payable Governmental Activity: G.O. Improvement Bonds 2005A $ - $ 2,494,643 Other Nonmajor Governmental Funds 2,958,421 1,022,888 Business -type Activity: Sewer Fund 559,110 - $ 3,517,531 $ 3,517,531 Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and from other fund and at December 31, 2014 are as follows: Governmental Activity: Area and Unit Charge Other Nonmajor Governmental Funds Receivable $ 374,706 $ 374,706 Payable 374,706 $ 374,706 The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated Parks Fund. Note 14 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2014 are as follows: Governmental Activity: General Fund G.O. Improvement Note 2009A Improvement Bonds of 2009F Area and Unit Charge Municipal State Aid Other Nonmajor Governmental Funds Total Governmental Activity Business -type Activity: Water Fund Sewer Fund Total Business -Type Activity Total Transfer In $ 10,000 141,838 121,012 2,211,106 2,608,534 $ 2,608,534 Transfer Out $ (565,196) (415,362) (854,778) (703,904) (2,539,240) (34,647) (34,647) (69,294) $ (2,608,534) Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open and close funds. 55 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 15 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. Note 16 PROPERTY UNDER LEASE AGREEMENT The City entered into an agreement to lease space within the City Hall Complex to New Creations Child Care and Learning Center, LLC. The lease is dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of between $5.94 and $8.65 per square foot over the lease term, for a total of $325,021. Property under operating lease and held for lease consist of the following: 2014 Building $ 929,970 Less: Accumulated Depreciation (464,985) Total $ 464,985 Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows: Year Ending December 31, 2015 2016 2017 2018 2019 56 Amount 59,020 71,091 73,223 75,420 38,267 $ 317,021 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 17 CONDUIT DEBT OBLIGATIONS The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial assistance to private -sector entities for the acquisition and construction of industrial and commercial facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of December 31, 2014, one series of Industrial Revenue Bonds was outstanding with an aggregate remaining principal balance of $420,000, and one series of Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $1,906,323. Note 18 JOINT VENTURES Fire The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two commissioners to the District's Board. Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula takes into account each city's average number of calls, population, and total market value. During 2014, the City of Lino Lakes' contributions to the District were as follows: Operating $ 507,713 Capital 85,250 Total $ 592,963 The audited financial statements of the District as of December 31, 2014 can be reviewed upon request of the Centennial Fire District. In January 2014 the City Council voted to start the process to withdraw from the District which will be effective January 27, 2016. The City is currently exploring options for fire protection starting in January 2016. Anoka County The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid Highway 14 (Main Street) and 1-35E Interchange County Project. 57 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2014. A. PLAN DESCRIPTION The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of December 31, 2014 there were approximately 48 active participants and 6 retired participants receiving benefits from the City's health plans. B. FUNDING POLICY The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2014, the City contributed $19,414 to the plan. C. ANNUAL OPEB COST AND NET OPEB OBLIGATION The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution $ 29,029 Interest on Net OPEB Obligation 897 Adjustment to Annual Required Contribution (3,458) Annual OPEB Cost (Expense) 26,468 Contributions Made (19,414) Increase in Net OPEB Obligation 7,054 Net OPEB Obligation - Beginning of Year 83,969 Net OPEB Obligation - End of Year $ 91,023 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the two preceding years: 12/31/2012 12/31/2013 12/31/2014 $ 29,610 27,437 26,468 58 65.2% 77.6% 73.3% $ 77,871 83,969 91,023 Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB EndedCost Contributed Obligation 12/31/2012 12/31/2013 12/31/2014 $ 29,610 27,437 26,468 58 65.2% 77.6% 73.3% $ 77,871 83,969 91,023 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2014 Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) D. FUNDED STATUS AND FUNDING PROGRESS As of January 1, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $547,626. The annual payroll for active employees covered by the plan in the actuarial valuation was $5,009,531 for a ratio of UAAL to covered payroll of 10.9%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. ACTUARIAL METHODS AND ASSUMPTIONS Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 1% investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 8%, decreasing to an ultimate rate of 3% after six years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2014 was not to exceed 30 years. 59 -This page intentionally left blank - REQUIRED SUPPLEMENTARY INFORMATION CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Statement 11 Page 1 of 6 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenue: General property taxes: Current and delinquent $ 7,218,922 $ 6,016,472 $ 6,095,902 $ 79,430 Fiscal disparities - 1,202,450 1,041,059 (161,391) Excess tax increments - - 11,016 11,016 Total general property taxes 7,218,922 7,218,922 7,147,977 (70,945) Licenses and permits: Business 86,350 115,450 115,640 190 Non -business 333,300 283,300 292,041 8,741 Total licenses and permits 419,650 398,750 407,681 8,931 Intergovernmental: State: Market value credit - - 4,024 4,024 Police state aid 165,000 179,000 179,718 718 MSA maintenance 230,000 240,000 240,977 977 Other 35,000 35,000 9,481 (25,519) County/Regional: Solid waste 35,000 65,000 75,982 10,982 Other 4,000 4,000 1,882 (2,118) Total intergovernmental 469,000 523,000 512,064 (10,936) Special assessments: Penalties and Interest 15,000 15,000 15,701 701 Charges for services: General government 3,600 3,600 2,033 (1,567) Planning/engineering 10,000 35,000 33,815 (1,185) Fees retained from collection for other governments - SAC/surcharge 1,000 1,000 1,349 349 Administrative charge - other funds 50,000 50,000 50,000 - Aerial map charge - other funds 5,000 5,000 5,580 580 Public safety 151,500 166,500 221,049 54,549 Total charges for services 221,100 261,100 313,826 52,726 Fines and forfeits 140,500 120,500 119,715 (785) Investment earnings 30,000 40,000 30,506 (9,494) Change in market value - - 17,503 17,503 Refunds 25,000 25,000 32,135 7,135 Miscellaneous: Gas franchise fees 50,000 65,000 71,015 6,015 Cable TV 25,000 25,000 25,000 - Donations 5,000 10,000 5,245 (4,755) Other 11,000 27,400 30,225 2,825 Total miscellaneous 91,000 127,400 131,485 4,085 Total revenue 8,630,172 8,729,672 8,728,593 (1,079) A CITY OF LINO LAKES, MINNESOTA GENERALFUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Expenditures: General government: Mayor and council: Current: Personal services Supplies Other services and charges Contractual services Total mayor and council Elections: Current: Personal services Supplies Other services and charges Contractual services Capital outlay Total elections Administration: Current: Personal services Other services and charges Contractual services Total administration Finance: Current: Personal services Supplies Other services and charges Contractual services Total finance Cable TV: Current: Personal services Supplies Capital outlay Total cable TV Consultants: Current: Legal Statement 11 Page 2 of 6 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 35,772 $ 44,772 $ 43,765 $ 1,007 - - 74 (74) 23,500 56,000 44,629 11,371 15,800 15,800 15,976 (176) 75,072 116,572 104,444 12,128 18,067 18,067 16,407 1,660 800 800 348 452 1,100 1,100 779 321 100 100 60 40 3,227 3,227 3,149 78 23,294 23,294 20,743 2,551 354,770 340,549 340,691 (142) 25,360 25,360 14,671 10,689 6,500 19,500 18,384 1,116 386,630 385,409 373,751 11,658 294,319 294,319 294,057 262 900 900 629 271 118,600 118,600 108,049 10,551 100,900 100,900 99,136 1,764 514,719 514,719 501,871 12,848 1,734 1,734 1,647 87 50 50 - 50 500 500 225 275 2,284 2,284 1,872 412 140,000 165,000 162,754 2,246 61 CITY OF LINO LAKES, MINNESOTA GENERALFUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Expenditures (continued): General government (continued): Engineering/planning: Current: Contractual services Charter commission: Current: Other services and charges General government buildings: Current: Personal services Supplies Other services and charges Contractual services Total general government buildings Total general government Public safety: Police: Current: Personal services Supplies Other services and charges Contractual services Capital outlay Total police Fire protection: Current: Personal services Other services and charges Contractual services Capital outlay Total fire protection Building inspection: Current: Personal services Supplies Other services and charges Contractual services Total building inspection Total public safety Statement 11 Page 3 of 6 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 101,900 $ 101,900 $ 87,144 $ 14,756 1,500 3,825 3,577 248 83,100 93,100 91,765 1,335 2,163 2,163 1,849 314 26,000 40,000 48,954 (8,954) 297,000 309,000 321,768 (12,768) 68,000 68,000 57,832 10,168 393,163 419,163 431,605 (12,442) 1,638,562 1,732,166 1,687,761 44,405 2,979,838 2,979,838 2,947,909 31,929 27,900 27,900 25,654 2,246 83,100 93,100 91,765 1,335 39,440 39,440 34,923 4,517 28,000 33,000 32,986 14 3,158,278 3,173,278 3,133,237 40,041 - 28,975 17,601 11,374 - 21,100 33,861 (12,761) 507,712 507,712 511,050 (3,338) - 900 900 - 507,712 558,687 563,412 (4,725) 206,383 173,383 168,347 5,036 750 750 515 235 7,650 7,650 5,497 2,153 500 10,500 7,710 2,790 215,283 192,283 182,069 10,214 3,881,273 3,924,248 3,878,718 46,917 62 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Expenditures (continued): Public works: Streets: Current: Personal services Supplies Other services and charges Contractual services Total streets Fleet: Current: Personal services Supplies Other services and charges Contractual services Total fleet Total public works Parks and recreation: Parks: Current: Personal services Supplies Other services and charges Contractual services Total parks Recreation: Current: Personal services Supplies Other services and charges Contractual services Total recreation Total parks and recreation Statement 11 Page 4 of 6 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 569,461 $ 555,461 $ 550,324 $ 5,137 115,000 117,000 130,052 (13,052) 109,060 118,560 107,025 11,535 172,275 172,275 155,654 16,621 965,796 963,296 943,055 20,241 2,500 2,500 2,095 14,750 109,424 109,424 105,293 4,131 215,000 224,000 217,908 6,092 48,880 58,880 57,818 1,062 7,500 12,000 12,013 (13) 380,804 404,304 393,032 11,272 1,346,600 1,367,600 1,336,087 31,513 460,451 450,451 423,207 26,500 26,500 24,498 47,900 42,900 29,165 35,700 20,700 15,699 570,551 540,551 492,569 279,577 279,577 281,100 2,500 2,500 2,095 14,750 14,750 13,684 400 400 1,627 297,227 297,227 298,506 867,778 837,778 791,075 63 27,244 2,002 13,735 5,001 47,982 (1,523) 405 1,066 (1,227) (1,279) 46,703 CITY OF LINO LAKES, MINNESOTA GENERALFUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Expenditures (continued): Conservation of natural resources: Forestry: Current: Personal services Supplies Other services and charges Contractual services Capital outlay Total forestry Environmental: Current: Personal services Supplies Other services and charges Contractual services Total environmental Solid waste abatement: Current: Personal services Supplies Other services and charges Contractual services Total solid waste abatement Statement 11 Page 5 of 6 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 34,594 $ 34,594 $ 34,433 $ 161 1,250 1,250 745 505 400 400 115 285 5,500 5,500 8,514 (3,014) 5,000 5,000 - 5,000 46,744 46,744 43,807 2,937 51,301 36,301 34,291 2,010 1,400 1,400 826 574 8,050 8,050 3,804 4,246 1,250 1,250 1,015 235 62,001 47,001 39,936 7,065 30,189 41,189 41,735 (546) - - 19 (19) 550 550 472 78 6,000 21,000 23,323 (2,323) 36,739 64,239 75,416 (11,177) Total conservation of natural resources 145,484 157,984 159,159 (1,175) 64 CITY OF LINO LAKES, MINNESOTA GENERALFUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Expenditures (continued): Community development: Community development: Current: Personal services Supplies Other services and charges Contractual services Total community development Economic development: Current: Personal services Supplies Other services and charges Contractual services Total economic development Planning and zoning commission: Current: Personal services Supplies Other services and charges Contractual services Total planning and zoning commission Statement 11 Page 6 of 6 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 198,551 $ 198,551 $ 187,304 $ 11,247 100 100 115 (15) 8,400 8,400 7,088 1,312 1,400 1,400 955 445 208,451 208,451 195,462 12,989 21,638 21,638 12,710 8,928 150 150 - 150 74,750 83,250 77,288 5,962 400 400 400 - 96,938 105,438 90,398 15,040 81,738 81,738 83,895 (2,157) 200 200 151 49 16,750 14,150 13,132 1,018 19,000 16,000 17,107 (1,107) 117,688 112,088 114,285 (2,197) Total community development 423,077 425,977 400,145 25,832 Other : Contingency 100,000 - - - Total expenditures 8,402,774 8,445,753 8,252,945 194,195 Revenue over expenditures 227,398 283,919 475,648 193,116 Other financing sources (uses): Transfer in 121,656 121,656 10,000 (111,656) Transfer out (515,000) (565,000) (565,196) (196) Net increase (decrease) in fund balance $ (165,946) $ (159,425) (79,548) $ 81,264 Fund Balance - January 1 5,386,083 Fund balance - December 31 $ 5,306,535 65 CITY OF LINO LAKES, MINNESOTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2014 Note 1 BUDGETS The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles. The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded budget appropriations. General Fund: General government: General government buildings: Public safety Fire protection Parks and recreation: Recreation: Conservation of natural resources: Solid waste abatement Community development: Planning and zoning commission Actual in Final Excess of Budget Actual Budget $ 419,163 $ 431,605 $ (12,442) 507,712 511,050 (3,338) 297,227 298,506 (1,279) 64,239 75,416 (11,177) 112,088 114,285 (2,197) The excess expenditures were paid for with available fund balance during 2014. CITY OF LINO LAKES, MINNESOTA SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN December 31, 2014 Unfunded AAL (b -a) $ 329,191 474,770 547,626 67 Funded Ratio (a/b) Covered Payroll (c) $ 4,859,980 4,888,702 5,009,531 Statement 12 UAAL as a Percentage of Covered Payroll ((b-a)/c) 6.8% 9.7% 10.9% Actuarial Actuarial Accrued Actuarial Value of Liability Valuation Assets (AAL) Date (a) (b) 1/1/2008 $ - $ 329,191 1/1/2011 - 474,770 1/1/2014 - 547,626 Unfunded AAL (b -a) $ 329,191 474,770 547,626 67 Funded Ratio (a/b) Covered Payroll (c) $ 4,859,980 4,888,702 5,009,531 Statement 12 UAAL as a Percentage of Covered Payroll ((b-a)/c) 6.8% 9.7% 10.9% Nonmaior Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds during the year. Economic Development Authority - established to account for the receipt and uses of funds for economic purposes. Cable TV Fund - established to account for activities relating to their Cable TV. Program Recreation - established to account for various self-supporting recreational programs. Blue Heron Days - established to account for the activities associated with the Blue Heron Days festival. Federal Narcotics - established to account for activities associated with the the receipt and use of federal narcotics forfeitures. State Narcotics - established to account for activities associated with the receipt and use of state narcotics forfeitures. DUI Forfeitures - established to account activities associated with the receipt and use of DUI forfeitures. Debt Service Funds The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. The City's Debt Service Funds account for four types of bonded indebtedness: General Debt Bonds - are repaid primarily from property taxes. Improvement Bonds - are repaid primarily from special assessments. Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA leasing the buildings to the City of Lino Lakes and other tenants. Revenue Bonds - These bonds were issued to finance various improvements and will be repaid primarily from pledged revenues derived from the constructed assets. Capital Proiect Funds Capital Project Funds account for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds. The City maintained the following nonmajor Capital Project Funds during the year: Building and Facilities Fund - to account for the activities associated with the maintenance and replacement of municipal buildings and facilities. Capital Equipment Revolving Fund - to account for proceeds from Equipment Certificates and funds held to purchase capital equipment. Closed Bond Fund - to account for excess funds from matured bond issues. Street Reconstruction - to account for the financing of future reconstruction of City streets. Sealcoating - to account for money received from levies, assessments, and developer deposits for future street sealcoating and overlay projects. Nonmaior Governmental Funds (Continued) Capital Proiect Funds (Continued) Surface Water Mana eg ment - to account for the financing of surface water management and storm water improvements. Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch Street and Hodgson Road. Tax Increment Funds - to account for development projects financed with tax increments. Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees. 135E Interschange Fund - to account for activity related to the 135E/CSAH 14 Interchange Reconstruction Project. Office Equipment Revolving - to account for the receipt and use of funds for office equipment purchases. Legacy Woods Edge Improvement Fund - the Legacy Woods Edge Improvement fund accounts for construction costs related to infrastructure improvements in the Legacy Woods Edge development. Traffic Signal Fund - the Legacy traffic signal charge fund accounts for costs associated with construction of traffic signals in the City. Otter Lake Road Exension Fund - this fund accounts for activities relating to the construction performed in the extension of the Otter Lake Road. 21St Ave Extension Fund - this fund accounts for activities relating to the construction performed in the extension of 21 st Avenue within the City. Fire House #2 Construction Fund - this fund accounts for activities relating to the construction of Fire House #2. Well #6 Construction Fund - this fiord accounts for activities relating to the construction of Well # 6 and well house. Northpointe Improvements Fund - this fund accounts for activities relating to the construction of streets and utilities within the Northpointe development. Birch St/Centerville Rd Improvements Fund - this fund accounts for activities relating to the construction of street improvements and sanitary sewer extension in conjunction with Fire Station #2. 2015 Street Reconstruction Fund - this fund accounts for activities relating to the reconstruction of streets in the Shenandoah area of the City. Permanent Funds Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs. The City maintained the following nonmajor Permanent Fund during the year. Foxborough Environment Fund - established to account for the use of funds received for environmental maintenance and improvements in the Foxborough area. CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 M Special Revenue Economic Development Cable TV Program Blue Heron Federal State Authority Fund Recreation Days Narcotics Narcotics Assets Cash and investments $ $ 39,331 $ 116,876 $ 11,321 $ 39,647 $ 6,506 Accounts receivable - 503 Interfund receivable - Taxes receivable: Delinquent Due from county Special assessments receivable: Delinquent Noncurrent Due from county Delinquent tax increment Long-term notes receivable 225,000 - Prepaid items - 1,302 - - - Total assets $ 225,000 $ 39,331 $ 118,681 $ 11,321 $ 39,647 S 6,506 Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Interfund payable $ S $ - $ $ $ - Accounts payable 3,495 695 Salaries payable 453 - Contracts and retainage payable - Advances from other funds - Unearned revenue 684 - Total liabilities 4,632 695 Deferred inflows of resources: Unavailable resources - - Fund balance (deficit): Nonspendable 1,302 - Restricted 225,000 - 11,321 39,647 5,811 Committed - 39,331 112,747 - - - Assigned - - Unassigned - - - - Total fund balance (deficit) 225,000 39,331 114,049 11,321 39,647 5,811 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 225,000 $ 39,331 $ 118,681 $ 11,321 $ 39,647 $ 6,506 M Statement 13 Page 1 of 4 Special Revenue (Continued) Debt Service Improvement Special Certificates Improvement Improvement Refunding Improvement Improvement DUI Revenue of Bonds of Bonds of Bonds of Bonds of Bonds of Forfeitures Subtotal Indebtedness 2002A 2002B 2003A 2003B 2005B $ 1,668 $ 215,349 $ 113,072 $ $ $ $ $ 429,829 503 - - - 2,990 2,287 2,230 1,860 - 167 35,845 1,271 225,000 - - 1,302 - - $ 1,668 $ 442,154 $ 118,292 $ $ $ $ $ 471,259 140 4,330 - 453 - 684 _ 140 5,467 2,990 38,299 - 1,302 - - 1,528 283,307 115,302 432,960 - 152,078 - - 1,528 436,687 115,302 432,960 S 1,668 $ 442,154 S 118,292 $ $ $ $ $ 471,259 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 Assets Cash and investments $ 231,984 Debt Service (Continued) 153,560 Tax Utility CIP Improvement and Abatement Revenue Refunding TIF Utility Revenue Improvement Bonds Bonds Bonds Bonds Refunding Bonds Bonds of 2006C 2006D 2006E 2007A 2010 2012A Assets Cash and investments $ 231,984 $ 153,560 $ 848,690 $ 149,896 $ 223,948 $ 295,270 Accounts receivable - - - - - - Interfund receivable - - - Taxes receivable: Delinquent 3,699 6,787 1,098 Due from county 3,194 - 5,640 1,832 Special assessments receivable: Delinquent - 13,501 - - - Noncurrent 55,531 69,104 71,890 Due from county - - - Long-term notes receivable Prepaid items - - - - - - Total assets $ 238,877 $ 222,592 $ 861,117 $ 149,896 S 293,052 $ 370,090 Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Interfund payable $ $ $ $ $ $ Accounts payable Salaries payable Contracts and retainage payable Advances from other funds Unearned revenue - Total liabilities - Deferred inflows of resources: Unavailable Resources 3,699 69,032 6,787 69,104 72,988 Fund balance (deficit): Nonspendable - - - - - - Restricted 235,178 153,560 854,330 149,896 223,948 297,102 Committed - - - - - - Assigned - Unassigned - - - - - Total fund balance (deficit) 235,178 153,560 854,330 149,896 223,948 297,102 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 238,877 $ 222,592 $ 861,117 $ 149,896 $ 293,052 $ 370,090 70 Statement 13 Page 2 of 4 Debt Service (Continued) Capital Projects Improvement GO Debt Capital Closed Bonds of Bonds Service Building and Equipment Bond Street 2013A 2014A Subtotal Facilities Revolving Fund Fund Reconstruction $ $ 21,310 $ 2,467,559 $ 509,321 $ 162,820 $ 681,595 $ 650,450 - 1,935,533 1,022,888 16,861 - 340 14,756 85 13,668 6,181 - 232,370 52,208 106,417 1,271 - - $ $ 21,310 $ 2,746,485 $ 2,444,854 $ 162,820 S 1,763,297 $ 756,867 S 16,746 $ $ 16,746 $ - $ - $ - $ - - - 6,712 3,184 16,746 16,746 6,712 3,184 262,899 58,729 106,417 21,310 2,483,586 2,438,142 159,636 1,704,568 650,450 (16,746) - (16,746) - - - - (16,746) 21,310 2,466,840 2,438,142 159,636 1,704,568 650,450 $ - $ 21,310 $ 2,746,485 $ 2,444,854 $ 162,820 $ 1,763,297 $ 756,867 71 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 72 Capital Projects (Continued) Tax Tax Tax Surface Birch Street Increment Increment Increment Water Hodgson Road Financing Financing Financing Sealcoating Management Improvement 1-5 1-10 1-11 Assets Cash and investments $ 591,400 $ 494,339 $ $ 173,754 $ 189,037 $ Accounts receivable - - - - Interfund receivable Taxes receivable: Delinquent Due from county Delinquent tax increment - Special assessments receivable: Delinquent 3,505 Noncurrent 97,751 Due from county 1,387 Long-term notes receivable - Prepaid items - - - - Total assets $ 591,400 $ 596,982 $ $ 173,754 $ 189,037 $ Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Interfund payable $ - $ - $ $ $ $ 771,119 Accounts payable 18,422 20,873 - Salaries payable - - Contracts and retainage payable 47,889 Advances from other funds - Unearned Revenue - Total liabilities 66,311 20,873 771,119 Deferred inflows of resources: Unavailable Resources - 101,256 - Fund balance (deficit): Nonspendable - Restricted Committed - - Assigned 525,089 474,853 173,754 189,037 Unassigned - - - - (771,119) Total fund balance (deficit) 525,089 474,853 173,754 189,037 (771,119) Total liabilities, deferred inflows of resources and fund balance (deficit) $ 591,400 $ 596,982 $ $ 173,754 $ 189,037 $ 72 Statement 13 Page 3 of 4 Capital Projects (Continued) Office Equipment Legacy Woods Dedicated I35E Revolving Edge Traffic Otter Lake 21st Ave Parks Interchange Fund Improvement Signal Road Ext Ext $ 122,773 $ 72,153 $ 243,131 $ 533,848 $ 107,038 $ 293,515 $ $ 122,773 $ 72,153 $ 243,131 $ 107,038 $ 293,515 $ $ 533,848 2,946 15,274 374,706 374,706 2,946 15,274 $ $ - $ 143,993 8,338 15,619 23,127 33,470 23,127 8,338 193,082 69,207 227,857 533,848 83,911 285,177 (251,933) - - - - (193,082) (251,933) 69,207 227,857 533,848 83,911 285,177 (193,082) $ 122,773 $ 72,153 $ 243,131 $ 533,848 $ 107,038 $ 293,515 $ 73 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2014 74 Capital Projects (Continued) Fire House Birch Std Capital House #2 Well #6 Northpointe Centerville Rd 2015 Street Projects Construction Construction Improvements Improvements Reconstruction Subtotal Assets Cash and investments $ $ 1,100,305 $ 1,136,772 $ $ $ 7,062,251 Accounts receivable - - - Interfund receivable 2,958,421 Taxes receivable: - Delinquent 340 Due from county 85 Delinquent tax increment - Special assessments receivable: - Delinquent 9,686 Noncurrent 256,376 Due from county 1,387 Long-term notes receivable - Prepaid items - - - Total assets $ $ 1,100,305 $ 1,136,772 $ $ $ 10,288,546 Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Interfund payable $ 91,030 $ - $ - $ $ $ 1,006,142 Accounts payable 14,655 21,932 7,883 11,331 32,271 179,440 Salaries payable - - - - - - Contracts and retainage payable 915 105,401 Advances from other funds - - - - - 374,706 Unearned Revenue - Total liabilities 105,685 22,847 7,883 11,331 32,271 1,665,689 Deferred inflows of resources: Unavailable Resources - - - - - 266,402 Fund balance (deficit): Nonspendable - Restricted Committed - - - Assigned 1,077,458 1,128, 889 9,721,876 Unassigned (105,685) - - (11,331) (32,271) (1,365,421) Total fund balance (deficit) (105,685) 1,077,458 1,128,889 (11,331) (32,271) 8,356,455 Total liabilities, deferred inflows of resources and fund balance (deficit) $ $ 1,100,305 $ 1,136,772 $ $ $ 10,288,546 74 Statement 13 Page 4 of 4 Permanent Fund Foxborough Environment Total Fund 2014 128,734 $ 9,873,893 - 503 2,958,421 17,201 14,841 23,354 488,746 2,658 225,000 1,302 $ 128,734 $ 13,605,919 $ 1,022,888 183,770 453 105,401 374,706 684 1,687,902 529,301 100,000 101,302 28,734 2,795,627 - 152,078 9,721,876 - (1,382,167) 128,734 11,388,716 $ 128,734 $ 13,605,919 75 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2014 76 Special Revenue Economic Development Cable TV Program Blue Heron Federal State Authority Fund Recreation Days Narcotics Narcotics Revenue: General property taxes $ $ $ $ $ $ Tax increments Intergovernmental Special assessments Charges for services 28,277 146,135 - Fines and forfeits - - - 5,566 16,566 Investment earnings 265 1,139 75 175 91 Net increase (decrease) in fair value of investments 171 686 50 128 56 Refunds - - - - - Miscellaneous - 26,852 39,870 13,690 Total revenue 28,713 147,960 26,977 45,739 30,403 Expenditures: Current: General government 196 - - - - - Public safety - - - 6,092 24,592 Parks, recreation and forestry 136,078 15,656 - - Community development - - Capital outlay: General government Public safety Public works Debt service: Principal Interest and fiscal charges Bond issuance costs - - - Total expenditures 196 - 136,078 15,656 6,092 24,592 Revenue over (under) expenditures (196) 28,713 11,882 11,321 39,647 5,811 Other financing sources (uses): Transfer in 196 - - - - - Transfer out - (10,000) Sale of property Issuance of debt - Total other financing sources (uses) 196 (10,000) - - - Net increase (decrease) in fund balance - 28,713 1,882 11,321 39,647 5,811 Fund balance (deficit) - Beginning of year 225,000 10,618 112,167 - - - Fund balance (deficit) - December 31 $ 225,000 $ 39,331 $ 114,049 $ 11,321 $ 39,647 $ 5,811 76 Statement 14 Page 1 of 4 Special Revenue (Continued) Debt Service Improvement Special Certificates Improvement Improvement Refunding Improvement Improvement DUI Revenue of Bonds of Bonds of Bonds of Bonds of Bonds of Forfeitures Subtotal Indebtedness 2002A 2002B 2003A 2003B 2005B $ $ $ 168,294 $ $ $ $ $ 156,259 419 50,918 174,412 - - 7,806 29,938 - - 1 l 1,756 1,490 1,131 8 1,099 953 605 4,513 84,925 - - 12,338 292,130 171,156 208,913 - 196 - - - 10,810 41,494 - 151,734 154,000 35,000 425,000 5,118 978 34,800 10,810 193,424 159,118 35,978 459,800 1,528 98,706 12,038 (35,978) (250,887) - 196 - 220,000 (10,000) (50,000) (187,564) (69,932) (126,281) (17,636) - - (9,804) (50,000) (187,564) (69,932) (126,281) (17,636) 220,000 1,528 88,902 (37,962) (187,564) (69,932) (126,281) (53,614) (30,887) - 347,785 153,264 187,564 69,932 126,281 53,614 463,847 $ 1,528 $ 436,687 $ 115,302 $ - $ - $ - $ - $ 432,960 77 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2014 Revenue: General property taxes Tax increments Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government Public works Parks, recreation and forestry Community development Capital outlay: General government Public safety Public works Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Bond proceeds Total other financing sources (uses) Net increase (decrease)in fund balance Fund balance (deficit) - Beginning of year Fund balance (deficit) - December 31 Debt Service (Continued) Tax Utility CIP Improvement and Abatement Revenue Refunding TIF Utility Revenue Improvement Bonds Bonds Bonds Bonds Refunding Bonds Bonds of 2006C 2006D 2006E 2007A 2010 2012A $ 256,102 $ $ 445,660 $ $ $ 173,555 453 57,484 864 18,115 21,224 724 588 4,547 719 1,136 447 357 2,754 221 804 257,726 58,429 453,825 19,055 196,719 140,000 60,000 360,000 345,000 95,000 70,000 91,470 9,742 73,200 118,876 20,150 19,663 231,470 69,742 433,200 463,876 115,150 89,663 26,256 (11,313) 20,625 (463,876) (96,095) 107,056 - 69,294 - 463,875 367,922 126,283 69,294 126,283 - - 463,875 367,922 26,256 57,981 20,625 (1) 271,827 233,339 208,922 95,579 833,705 149,897 (47,879) 63,763 $ 235,178 $ 153,560 $ 854,330 $ 149,896 $ 223,948 $ 297,102 78 Statement 14 Page 2 of 4 Debt Service (Continued) Capital Projects (Continued) - Improvement GO Debt Capital Closed - Bonds of Bonds Service Building and Equipment Bond Street 2013A 2014A Subtotal Facilities Revolving Fund Fund Reconstruction $ $ $ 1,199,870 $ $ $ 446 $ 149,477 17,212 21,729 18 10,353 4,496 2,594 12,527 4,898 17 6,158 2,766 1,539 7,869 2,958 - - 334,309 - - - 35 1,365,858 341,571 4,133 38,054 29,585 1,425 7,369 271 - 79 55,753 - - 229,250 - 4,212 265,617 - 1,684,000 - - 19,162 393,159 19,162 - 2,077,159 61,661 494,867 7,369 - (19,162) 35 (711,301) 279,910 (490,734) 30,685 29,585 - 1,247,374 - 50,000 275,132 - (451,413) - - 21,275 21,275 495,000 - - 21,275 817,236 - 545,000 275,132 - (19,162) 21,310 105,935 279,910 54,266 305,817 29,585 2,416 - 2,360,905 2,158,232 105,370 1,398,751 620,865 $ (16,746) $ 21,310 $ 2,466,840 $ 2,438,142 $ 159,636 $ 1,704,568 $ 650,450 79 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2014 Revenue: General property taxes Tax increments Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government: Public works Parks, recreation and forestry Community development Capital outlay: General government Public safety Public works Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Issuance of debt Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - Beginning of year Fund balance (deficit) - December 31 Capital Projects (Continued) Surface Birch Street Tax Increment Tax Increment Tax Increment Water Hodgson Road Financing Financing Financing Sealcoating Management Improvement 1-5 1-10 1-11 IN 72,993 36,904 141,838 84,976 51,973 519,911 7,018 3,810 1,110 1,767 4,372 2,281 685 1,125 22,924 - - - 34,314 58,064 38,699 144,730 84,976 - 519,911 72,993 (15,677) (141,838) 633 1,049 923 IN 72,993 923 519,911 633 1,049 (485,597) (14,929) 38,066 143,681 84,053 490,000 - - - - (15,677) (141,838) (84,976) 490,000 (15,677) - (141,838) (84,976) 4,403 (14,929) (15,677) 38,066 1,843 (923) 520,686 489,782 15,677 135,688 187,194 (770,196) $ 525,089 $ 474,853 $ - $ 173,754 $ 189,037 $ (771,119) IN Statement 14 Page 3 of 4 Capital Projects (Continued) 134,943 3,288 19,365 808,093 72,227 13,825 Office 13,825 Equipment Legacy Woods 3,288 Dedicated I35E Revolving Edge Traffic Otter Lake 21 st Ave Parks Interchange Fund Improvement Signal Road Ext Extension 50,000 25,000 - 73,404 1,727 310,961 323 1,316 2,117 4,109 868 2,050 - 249 730 1,262 2,474 497 1,260 155,599 400 - - 156,171 2,046 3,779 6,583 1,365 3,310 310,961 134,943 3,288 19,365 808,093 72,227 13,825 13,825 134,943 72,227 3,288 19,365 808,093 142,346 (132,897) (68,448) 6,583 (1,923) (16,055) (497,132) 50,000 25,000 - 73,404 1,727 - - - 333,505 50,000 26,727 73,404 333,505 192,346 (132,897) (41,721) 6,583 (1,923) 57,349 (163,627) (444,279) 202,104 269,578 527,265 85,834 227,828 (29,455) $ (251,933) $ 69,207 $ 227,857 $ 533,848 $ 83,911 $ 285,177 $ (193,082) 81 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2014 Revenue: General property taxes Tax increments Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government Public works Parks, recreation and forestry Community development Capital outlay: General government Public safety Public works Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale ofproperty Issuance of debt Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) Beginning of year Fund balance (deficit) - December 31 Capital Projects (Continued) Fire House Birch St/ Capital House #2 Well #6 Northpointe Centerville Rd 2015 Street Projects Construction Construction Improvements Improvements Reconstruction Subtotal $ $ $ $ $ $ 446 263,718 310,961 90,914 934 1,019 50,956 843 920 31,830 - - 22,924 - - 490,308 1,777 1,939 1,262,057 105,685 59,319 28,270 - - 8,794 11,331 32,271 1,795,740 2,605 127,980 229,250 269,829 13,825 105,685 59,319 28,270 11,331 32,271 2,448,023 (105,685) (57,542) (26,331) (11,331) (32,271) (1,185,966) 963,536 (242,491) - - 1,727 1,135,000 1,155,220 3,118,725 1,135,000 1,155,220 3,841,497 (105,685) 1,077,458 1,128,889 (11,331) (32,271) 2,655,531 - - - 5,700,924 $ (105,685) $ 1,077,458 $ 1,128,889 $ (11,331) $ (32,271) $ 8,356,455 82 Statement 14 Page 4 of 4 Foxborough Environment Total Fund 2014 $ $ 1,200,316 263,718 310,961 240,391 174,412 29,938 1,559 64,624 - 39,087 - 22,924 5,700 580,933 7,259 2,927,304 8,990 1,837,234 151,734 2,605 127,980 229,250 269,829 1,684,000 406,984 - 4,718,606 7,259 (1,791,302) - 2,211,106 (703,904) 1,727 3,140,000 - 4,648,929 7,259 2,857,627 121,475 8,531,089 $ 128,734 $ 11,388,716 83 CITY OF LINO LAKES, MINNESOTA Statement 15 SPECIAL REVENUE FUND - PROGRAM RECREATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2014 Fund balance - January 1 Fund balance - December 31 84 112,167 $ 114,049 2014 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenue: Charges for services: Recreation fees $ 149,750 $ 149,750 $ 146,135 $ (3,615) Investment earnings - - 1,139 1,139 Change in market value - - 686 686 Total revenue 149,750 149,750 147,960 (1,790) Expenditures: Current: Personal services 59,680 59,680 59,031 649 Supplies 38,250 38,250 43,815 (5,565) Other services and charges - - 1,656 (1,656) Contractual services 36,650 36,650 31,576 5,074 Capital outlay 3,000 3,000 - 3,000 Total expenditures 137,580 137,580 136,078 1,502 Other financing sources (uses): Transfers out - - (10,000) (10,000) Net increase (decrease) in fund balance $ 12,170 $ 12,170 1,882 $ (10,288) Fund balance - January 1 Fund balance - December 31 84 112,167 $ 114,049 Fiduciary Funds Agency Fund Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. The City maintained the following Agency fund during the year: Contractor's Deposits — to account for pass-through costs relating to prospective developers. -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA Statement 16 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS Year Ended December 31, 2014 Balance Balance January 1, December 31, 2014 Additions Deductions 2014 Assets Cash and investments $ 669,478 $ 162,678 $ 48,718 $ 783,438 Liabilities Deposits payable $ 669,478 $ 162,678 $ 48,718 $ 783,438 85 -This page intentionally left blank - SUPPLEMENTARY FINANCIAL AND OTHER INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2014 Special Assessment Bonds G. 0. Improvement Bonds of 2003B 3.20%-5.60% 12/1/2003 Final G. O. Improvement Bonds of 2005A Interest 11/1/2005 Maturity G. 0. Improvement Refunding Bonds of 2005B Rates Dated Date General Obligation Bonds: 2.00%-3.00% 7/9/2010 2/1/2020 2011A Equipment Certificates 1.00% 2/14/2011 12/31/2014 2012A Equipment Certificates 1.00% 2/1/2012 12/31/2015 2013A Equipment Certificates 1.00% 2/1/2013 12/31/2016 2014A Equipment Certificates 1.00% 2/1/2014 12/31/2017 G.O. Tax Abatement Bonds, Series 2006C 4.00%-4.30% 8/15/2006 2/1/2023 G.O. Utility Revenue Bonds, Series 2006D 4.00%-4.15% 8/15/2006 2/1/2017 G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/2006 2/1/2018 G.O. Tax Increment Bonds, Series 2007A 4.00%-4.125% 7/15/2007 2/1/2024 G.O. Refunding Bonds, Series 2012A 1.00%-2.00% 11/15/2012 2/1/2024 Total General Obligation Bonds Special Assessment Bonds G. 0. Improvement Bonds of 2003B 3.20%-5.60% 12/1/2003 2/1/2014 G. O. Improvement Bonds of 2005A 4.35%-5.15% 11/1/2005 2/1/2021 G. 0. Improvement Refunding Bonds of 2005B 3.75%-5.00% 11/1/2005 2/1/2015 G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A 2.00%-3.00% 7/9/2010 2/1/2020 G.O. Improvement Bonds, Series 2013A 1.25%-4.00% 7/15/2013 2/1/2024 G.O. Improvement Bonds, Series 2014A 0.40%-2.30% 11/20/2014 2/1/2026 Total General Improvement Bonds with special assessments pledged Other Long -Term Debt: Note Payable - Anoka County - 2009A 4.00%-3.70% 8/01/2009 8/1/2024 Total City indebtedness Prior Years Original Issue Payments Payable 1/1/14 Issued 2014 Payable Payments 12/31/14 Exhibit 1 Principal Interest Due Due In 2015 In 2015 $ 170,000 $ 129,000 $ 41,000 $ $ 41,000 $ - $ - $ 150,000 49,000 101,000 50,000 51,000 51,000 510 193,000 - 193,000 63,000 130,000 65,000 1,300 495,000 - - 495,000 - 495,000 160,000 9,488 2,460,000 240,000 2,220,000 - 140,000 2,080,000 155,000 85,043 570,000 315,000 255,000 60,000 195,000 60,000 6,833 2,990,000 1,060,000 1,930,000 360,000 1,570,000 360,000 55,600 4,215,000 1,105,000 3,110,000 345,000 2,765,000 360,000 104,326 2,015,000 - 2,015,000 - 70,000 1,945,000 220,000 18,633 13,258,000 2,898,000 9,865,000 495,000 1,129,000 9,231,000 1,431,000 281,733 250,000 215,000 35,000 - 35,000 - - - 5,550,000 2,045,000 3,505,000 365,000 3,140,000 380,000 149,735 3,755,000 2,910,000 845,000 425,000 420,000 420,000 10,500 1,000,000 280,000 720,000 95,000 625,000 100,000 17,250 615,000 - 615,000 - - 615,000 60,000 17,565 - - - 2,645,000 - 2,645,000 - 23,532 11,170,000 5,450,000 5,720,000 2,645,000 920,000 7,445,000 960,000 218,582 4,260,000 - 3,695,000 - 1,615,000 2,080,000 360,000 79,565 $ 30,428,000 $ 10,088,000 $ 19,280,000 $ 3,140,000 $ 3,664,000 $ 18,756,000 $ 2,751,000 $ 579,880 87 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2014 2022/2023 2023/2024 $ 54,086 $ 138,548 $ 534,984 $ 3,439,546 $ 2,450,024 $ 1,374,030 W G. O. G. O. G. O. Tax CIP Year of Equipment Equipment Equipment Improvement Abatement Refunding Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Collection of 2012A of 2013A of 2014A of 2005A 2006C 2006E 2014/2015 $ 54,086 $ 69,615 $ 177,952 $ 567,247 $ 264,458 $ 449,820 2015/2016 - 68,933 178,868 572,497 278,140 460,110 2016/2017 - - 178,164 571,184 285,411 464,100 2017/2018 - - - 574,072 297,263 - 2018/2019 - - - 574,907 313,472 - 2019/2020 - - - 579,639 323,316 - 2020/2021 - - - - 337,517 - 2021/2022 - - - - 350,447 - 2022/2023 2023/2024 $ 54,086 $ 138,548 $ 534,984 $ 3,439,546 $ 2,450,024 $ 1,374,030 W Exhibit 2 $ 495,103 $ G.O. $ 257,620 $ 9,331 $ G. O. Improvement and G.O. G.O. TIF Utility Revenue G.O. Improvement Improvement Bonds Refunding Bonds Refunding Bonds Bonds Bonds 2007A 2010A 2012A 2013A 2014A Total $ 495,103 $ 124,688 $ 257,620 $ 9,331 $ 10,002 $ 2,479,922 500,983 121,537 266,406 8,544 11,640 2,467,658 506,023 118,387 259,128 7,158 3,324 2,392,879 268,723 120,488 261,868 5,772 6,301 1,534,487 271,243 117,180 258,849 3,882 4,595 1,544,128 278,593 124,372 182,417 1,992 1,505 1,491,834 285,313 - 179,687 4,722 2,148 809,387 291,403 - 181,949 1,992 2,865 828,656 301,855 - 183,899 - 3,655 489,409 306,127 - 180,330 - 4,500 490,957 $ 3,505,366 $ 726,652 $ 2,212,153 $ 43,393 $ 50,535 $ 14,529,317 E CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 2014 Equipment Equipment Equipment Certificates Certificates Certificates G. O. Improvement Bonds G. O. Improvement Refunding Bonds Bonds payable $ 51,000 $ 130,000 $ 495,000 $ 3,140,000 $ 420,000 Future interest payable 510 1,950 14,518 595,380 10,500 Totals $ 51,510 $ 131,950 $ 509,518 $ 3,735,380 $ 430,500 Payments to maturity: 2015 $ 51,510 $ 66,300 $ 169,488 $ 529,736 $ 430,500 2016 - 65,650 170,350 530,236 - 2017 - - 169,680 534,611 - 2018 - - - 532,861 - 2019 - - - 534,633 - 2020 - - - 534,784 - 2021 - - - 538,519 - 2022 - - - - - 2023 - - - - - 2024 - - - - - 2025 - - - - - 2026 - - - - - $ 51,510 $ 131,950 $ 509,518 $ 3,735,380 $ 430,500 .E Exhibit 3 G.O. G.O. G.O. $ 2,765,000 $ G.O. Tax Utility CIP G.O. Improvement and Abatement Revenue Refunding TIF Utility Revenue Bonds Bonds Bonds Bonds Refunding Bonds 2006C 2006D 2006E 2007A 2010A $ 2,080,000 $ 195,000 $ 1,570,000 $ 2,765,000 $ 625,000 452,472 12,539 130,000 517,677 57,675 $ 2,532,472 $ 207,539 $ 1,700,000 $ 3,282,677 $ 682,675 $ 240,043 $ 66,832 $ 415,600 $ 464,326 $ 117,250 248,381 69,254 420,800 469,526 114,250 260,858 71,453 430,100 473,926 111,250 267,464 - 433,500 252,126 113,175 278,327 - - 254,326 110,025 293,233 - - 261,026 116,725 302,183 - - 267,126 - 315,103 - - 272,504 - 326,880 - - 282,016 - - - - 285,775 - $ 2,532,472 $ 207,539 $ 1,700,000 $ 3,282,677 $ 682,675 91 CITY OF LINO LAKES, MIN] DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED) December 31, 2014 Exhibit 3 92 Note G.O. G.O. Payable - G.O. Improvement Improvement Anoka Refunding Bonds Bonds Bonds County - 2012A 2013A 2014A 2009A Totals Bonds payable $ 1,945,000 $ 615,000 $ 2,645,000 $ 2,080,000 $ 18,756,000 Future interest payable 110,653 109,320 213,800 1,116,894 3,343,888 Totals $ 2,055,653 $ 724,320 $ 2,858,800 $ 3,196,894 $ 22,099,888 Payments to maturity: 2015 $ 238,632 $ 77,565 $ 23,533 $ 460,345 $ 3,351,660 2016 247,618 76,815 138,543 465,945 3,017,368 2017 241,311 75,780 402,223 470,945 3,242,137 2018 244,660 74,460 399,633 475,345 2,793,224 2019 242,590 72,900 406,158 483,195 2,382,154 2020 170,520 71,100 401,788 485,070 2,334,246 2021 168,560 69,000 406,390 356,049 2,107,827 2022 166,400 71,500 162,055 - 987,562 2023 169,001 68,900 159,280 - 1,006,077 2024 166,361 66,300 161,151 - 679,587 2025 - - 162,644 - 162,644 2026 - - 35,402 - 35,402 $ 2,055,653 $ 724,320 $ 2,858,800 $ 3,196,894 $ 22,099,888 92 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 2014 General Liability: Exhibit 4 Coverage Amount Bodily Injury/Property Damage $ 1,500,000 Personal Injury/Police Professional Liability 1,500,000 Fire Legal Liability 50,000 Medical Expense Occurrence Limit 1,000 Medical Expense Aggregate 10,000 Property Damage ($500 Deductible) Property: Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 31,191,731 Faithful Performance Blanket Bond 500,000 Storage Tank Liability 250,000 Rented/Leased Equipment ($1,000 Deductible) 500,000 Public Official and Employee Liability ($1,000 Deductible Each Occurrence) 1,500,000 Automotive: Bodily Injury and Property Damage 1,500,000 Comprehensive and Collision Actual Cash Value Uninsured Motorists 200,000 Workmen's Compensation Statutory Umbrella Liability 1,000,000 Crime - Theft Disappearance and Destruction ($1,000 Deductible) 250,000 93 CITY OF LINO LAKES, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Taxable valuations: Total Fiscal disparities: Distribution Contribution Less: Captured Tax Increment Value Taxes Levied: Revenue Bond and Interest Totals Tax Capacity Values 2013/2014 $ 16,439,245 2,623,227 (1,063,999) (232,280) $ 17,766,193 Tax Capacity Values 2012/2013 $ 16,601,721 2,620,748 (1,205,912) (234,159) $ 17,782,398 Exhibit 5 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution 94 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate $ 7,098,922 39.784 $ 7,190,538 40.964 1,197,122 6.899 1,025,090 5.810 $ 8,296,044 46.683 $ 8,215,628 46.774 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution 94 STATISTICAL SECTION (Unaudited) -This page intentionally left blank - Statistical Section (Unaudited This part of the Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about overall financial health. The following are the categories of the various schedules that are included in this section. Financial Trends Tables 1-4 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Tables 5-8 These schedules contain information to help the reader assess the City's most significant revenue sources. Debt Capacity Tables 9-12 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information Tables 13-14 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating information Tables 15-17 These schedules contain service and infrastructure data to help the reader understand how the information the City's financial report relates to the services the City provides and the activities it performs. -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA Table 1 NET POSITION BY COMPONENT, LAST TEN FISCAL YEARS (accrual basis ofaccounting) Fiscal Year 95 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Governmental Activities Net Investment in Capital Assets $ 25,460,528 $ 29,549,174 $ 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217 $ 24,600,103 $ 22,166,342 $ 22,241,821 $ 19,540,807 Restricted 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112 11,000,033 8,666,357 Unrestricted 13,577,071 14,516,466 6,339,528 10,790,359 15,926,322 16,738,885 13,463,210 17,639,038 16,849,636 20,527,704 Total Govermnental Activities Net Position $ 51,088,083 $ 54,770,148 $ 53,453,148 $ 49,133,900 $ 48,741,249 $ 47,729,127 $ 49,662,116 $ 51,400,492 $ 50,091,490 $ 48,734,868 Business -Type Activities Net Investment in Capital Assets $ 28,342,832 $ 29,485,942 $ 29,836,775 $ 30,372,670 $ 30,071,840 $ 29,648,461 $ 29,216,866 $ 28,798,095 $ 28,423,284 $ 27,556,022 Unrestricted 5,572,338 6,880,547 8,063,983 9,028,778 10,112,207 10,728,626 11,201,362 12,102,013 12,999,182 13,888,278 Total Business -Type Activities Net Position $ 33,915,170 $ 36,366,489 $ 37,900,758 $ 39,401,448 $ 40,184,047 $ 40,377,087 $ 40,418,228 $ 40,900,108 $ 41,422,466 $ 41,444,300 Primary Government Net Investment in Capital Assets $ 53,803,360 $ 59,035,116 $ 66,625,928 $ 58,845,535 $ 53,472,293 $ 52,210,678 $ 53,816,969 $ 50,964,437 $ 50,665,105 $ 47,096,829 Restricted 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112 11,000,033 8,666,357 Unrestricted 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 27,467,511 24,664,572 29,741,051 29,848,818 34,415,982 Total Primary Government Net Position _L85 _L_91 _L91 _L11 _L81 _L_81 _L90 _L92 _L_91 $ 90,179,168 95 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) Program Revenues Fiscal Year Governmental activities: 2005 2006 2007 2008 2009 2010 Charges for services: 2011 Expenses General government $ 111,480 Governmental activities: $ 91,646 $ 79,844 $ 101,741 $ 98,403 $ 103,687 Public safety 998,210 844,514 General government $ 2,941,279 $ 2,886,825 $ 2,197,672 $ 2,323,358 $ 2,201,439 $ 1,987,415 $ 1,990,137 Public safety 428,174 3,091,174 3,516,376 3,730,504 4,051,162 4,299,366 3.,971,261 185,803 4,019,101 Public services 177,984 9,187,436 3,871,968 10,580,560 7,608,626 4,027,553 3,968,063 3,660 8,110,979 Parks, recreation and forestry 4,392 799,335 1,162,458 1,357,133 919,948 1,313,560 1,124,907 8,667 1,218,472 Conservation ofnatural resources Operating grants and contributions 150,092 156,592 183,420 184,624 215,607 197,571 617,450 139,544 Community development 383,211 691,880 1,122,802 1,114,158 1,005,997 1,105,254 7,347,613 617,747 Interest on long-term debt 12,662,534 797,341 926,021 980,849 1,045,781 928,668 1,064,172 Business -type activities: 927,535 Total governmental activities expenses $ 17,349,868 $ 13,212,120 $ 20,152,940 $ 17,247,657 $ 13,992,190 $ 13,418,643 $ 17,023,515 Business -type activities: Water $ 1,031,175 $ 1,175,172 Water $ 876,592 $ 976,575 $ 1,170,902 $ 1,020,770 $ 1,089,569 $ 1,045,901 $ 966,643 Sewer 1,502,164 1,217,825 1,228,123 1,298,963 1,287,943 1,432,107 1,466,847 - 1,638,063 Total business -type activities - 2,094,417 2,204,698 2,469,865 2,308,713 2,521,676 2,512,748 107117 2,604,706 Total primary government expenses $ 19,444,285 $ 15,416,818 $ 22,622,805 $ 19,556,370 $ 16,513,866 $ 15,931,391 $ 19,628,221 Program Revenues Governmental activities: Charges for services: General government $ 111,480 $ 88,924 $ 91,646 $ 79,844 $ 101,741 $ 98,403 $ 103,687 Public safety 998,210 844,514 1,078,995 1,296,418 725,747 691,005 713,985 Public works 434,087 420,741 389,489 413,040 428,174 427,223 382,287 Parks, recreation and forestry 196,951 188,439 185,803 187,285 165,994 177,984 210,976 Conservation ofnatural resources 4,873 6,854 4,559 3,660 3,858 4,153 4,392 Community development 26,985 20,530 15,839 11,623 8,667 14,148 5,138 Operating grants and contributions 761,924 643,749 851,791 693,065 682,797 617,450 593,798 Capital grants and contributions 10,128,024 5,963,204 7,189,346 1,0949789 1,357,015 1,388,984 7,347,613 Total governmental activities program revenues $ 12,662,534 $ 8,176,955 $ 9,807,468 $ 3,779,724 $ .3,473,993 $ 3,419,350 $ 9,361;876 Business -type activities: Charges for services: Water $ 1,031,175 $ 1,175,172 $ 1,215,763 $ 1,058,493 $ 1,365,817 $ 1,087,013 $ 1,090,104 Sewer 1,361,759 1,391,702 1,446,112 1,472,093 1,502,164 1,498,218 1,494,188 Operating grants and contributions - - - - 62,710 - - Capital grants and contributions 1,733,775 1,535,631 807750 107117 81769 87709 1,462 Total business -type activities program revenues 4,126,709 4,102,505 2,742,625 2,540,703 2,939,460 2,593,940 2,585,754 Total primary government program revenues $ 16,789,243 $ 12,279,460 $ 12,550,093 $ 6,320,427 $ 6,413,453 $ 6,013,290 $ 11,947,630 Net (Expense)/Revenue Governmental activities $ (4,687,334) $ (5,035,165) $ (10,345,472) $ (13,467,933) $ (10,518,197) $ (9,999,293) $ (7,661,639) Business -type activities 2,032;292 1,897,807 272,760 231,990 417,784 81,192 (18,952) Total primary government net expense $ (2,655,042) $ (3,137,358) $ (10,072,712) $ (13,235,943) $ (10,100,413) $ (9,918,101) $ (7,680,591) General Revenues and Other Changes in Net Position Governmental activities: Property taxes $ 7,383,415 $ 8,269,944 $ 8,785,280 $ 9,424,697 $ 9,808,324 $ 8,764,183 $ 8,768;805 Unrestricted grants and contributions - - 256,877 129,607 11,321 4,389 4;072 Unrestricted investment earnings 433,387 713,794 864,578 576,071 429,325 225,677 251,250 Change in market value - - - - - - - Gain on sale of capital assets - 33,217 17,424 12,512 12,644 - 37,579 Miscellaneous 160,955 - - - - - - Transfers (304,195) (299,725) (895,687) (994,202) (136,068) (7,078) 66,122 Total governmental activities $ 7,673,562 $ 8,717,230 $ 9,028,472 $ 9,148,685 $ 10,125,546 $ 8,987,171 $ 9,127,828 Business -type activities: Umestrlcted investment earnings $ 120,310 $ 253,787 $ 365,822 $ 274,498 $ 228,747 $ 104,770 $ 126,215 Change in market value - - - - - - - Transfers 304,195 299,725 895,687 994,202 136,068 7,078 (66,122) Total business -type activities 424,505 553,512 1,261,509 1,268,700 364,815 111,848 60,093 Total primary government $ 8,098,067 $ 9,270,742 $ 10,289,981 $ 10,417,385 $ 10,490,361 $ 9,099,019 $ 9,187,921 Change in Net Position Governmental activities $ 2,986,228 $ 3,682,065 $ (1,317,000) $ (4,319,248) $ (392,651) $ (1,012,122) $ 1,466,189 Business -type activities 2,456,797 2,451,319 1,534,269 1,500,690 782,599 193,040 41,141 Total primary government change in net position $ 5,443,025 $ 6,133,384 $ 217,269 _L_(2,818,558) $ 389,948 $ (819,082) $ 1,507,330 Table 2 Fiscal Year 2012 2013 2014 $ 1,883,961 $ 1,566,388 $ 2,036,550 4,046,415 3,950,197 4,107,759 5,584,283 4,540,888 4,786,121 1,210,867 835,783 1,093,909 184,051 141,204 159,649 430,121 404,726 407,448 837,755 95.1,842 618,680 $ 14,177,453 $ 12,391,028 $ 13,210,116 $ 949,121 $ 927,800 $ 965,641 1,527,637 1,584,395 1,628,258 2,476,758 2,512,195 23593,899 $ 16,654,21( $ 14,903,223 $ 15,804,015 $ 1,738,376 $ (1,309,002) $ (1,356,622) $ 129,151 $ 93,118 $ 103,072 642,745 697,584 763,470 476,296 456,024 464,486 191,832 175,978 156,735 19,297 1,347 1,882 16,940 28,118 39,395 450,179 527,368 840,676 5,125,693 941,960 335,733 $ 7,052,133 $ 2,921,497 $ 2,705,449 $ 1,371,809 $ 1,208,742 $ 965,425 1,505,781 1,516,397 1,564,099 20,018 883 1,035 2,897,608 2,726,022 2,530,559 $ 9,949,741 $ 5,647,519 $ 5,236,008 $ (7,125,320) $ (9,469,531) $ (10,504,667) 420,850 213,827 (63,340) $ (6,704,470) $ (6,704,470) $ (10,568,007) $ 8,610,709 $ 8,563,595 $ 8,806,886 4,941 4,442 4,443 202,828 216,488 172,738 - (270,692) 92,957 4,175 - 1,727 41,043 (353,304) 69,294 $ 8,863,696 $ 8,160,529 $ 9,148,045 $ 102,073 $ 113,402 $ 96,213 - (158,175) 58,255 (41,043) 353,304 (69,294) 61,030 308,531 85,174 $ 8,924,726 $ 8,469,060 $ 9,233,219 $ 1,738,376 $ (1,309,002) $ (1,356,622) 481,880 522,358 21,834 $ 2,220,256 $ (786,644) $ (1,334,788) 97 CITY OF LINO LAKES, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Fiscal Year Note: Governmental Accounting Standards Board Statement No. 54 was implemented in 2011. W 2005 2006 2007 2008 General Fund Reserved $ 148,652 $ 153,009 $ 181,759 $ 190,825 Unreserved 5,300,156 5,337,225 5,356,272 5,393,316 Nonspendable - - - - Unassigned - - - - Total general fund $ 5,448,808 $ 5,490,234 $ 5,538,031 $ 5,584,141 All Other Governmental Funds Reserved reported in: Special Revenue Funds $ 1,763 $ 1,813 $ 226,921 $ 226,973 Capital Projects Funds 957,112 957,112 885,825 812,400 Debt Service Funds 7,371,359 3,992,952 3,925,402 3,405,272 Permanent Funds 100,000 100,000 100,000 100,000 Unreserved reported in: Special Revenue Funds 74,716 82,385 100,955 106,573 Capital Projects Funds 7,348,375 5,525,508 8,395,827 5,927,411 Debt Service Funds - - - - Permanent Funds 853 5,378 17,023 22,224 Nonspendable - - - - Restricted - - - - Committed - - - - Assigned - - - - Unassigned - - - - Total all other governmental funds $ 15,854,178 $ 10,665,148 $ 13,651,953 $ 10,600,853 Total all funds $ 21,302,986 $ 16,155,382 $ 19,189,984 $ 16,184,994 Note: Governmental Accounting Standards Board Statement No. 54 was implemented in 2011. W Table 3 Fiscal Year 2009 2010 2011 2012 2013 2014 $ 196,568 $ 181,471 $ - $ - $ - $ - 5,191,396 5,445,334 - - - - - - 165,079 180,786 176,797 253,471 - - 5,440,101 5,053,031 5,209,286 5,053,064 $ 5,387,964 $ 5,626,805 $ 5,605,180 $ 5,233,817 $ 5,386,083 $ 5,306,535 $ 227,176 $ 227,342- 736,772 658,875 - - - - 3,457,349 2,986,102 - - - - 100,000 100,000 - - - - 93,956 110,471 - - - - 11,611,835 12,537,841 - - - - (558,443) (1,093,765) - - - - 15,824 12,676 - - - - - - 906,010 823,113 101,710 101,302 - - 2,658,010 3,041,524 3,651,550 2,830,526 - - 110,568 115,196 121,075 152,078 - - 10,808,268 15,573,179 15,710,702 18,027,773 - - (3,154,496) (3,262,728) (3,393,547) (3,875,851) $ 15,684,469 $ 15,539,542 $ 11,328,360 $ 16,290,284 $ 16,191,490 $ 17,235,828 $ 21,072,433 $ 21,166,347 $ 16,933,540 $ 21,524,101 $ 21,577,573 $ 22,542,363 CITY OF LINO LAKES, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Revenues Property Taxes Licenses and Permits Intergovernmental Special Assessments Charges for Services Fines and Forfeits Investment Earnings Net Increase (Decrease) in Fair Value of Investments Miscellaneous Total revenues Expenditures Current: General Government Public Safety Public Works Parks, Recreation and Forestry Conservation of Natural Resources Community Development Capital Outlay Debt Service: Principal Interest and Fiscal Charges Bond Issuance Costs Total expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses) Sale of Property Proceeds from Issuance of Debt Premium on Bonds Issued Discount on Bonds Issued Payment to Refunded Bond Escrow Agent Loan Payable Reapportionment Transfer In Transfer Out Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures Fiscal Year 2005 2006 2007 2008 $ 7,230,287 $ 8,103,263 $ 8,529,846 $ 9,095,085 812,172 581,582 694,435 802,135 1,808,111 1,818,519 6,143,689 1,004,476 1,769,821 2,901,100 1,961,253 950,188 601,548 687,551 753,698 872,534 100,980 101,518 139,932 133,531 433,385 713,795 864,578 576,071 948,009 716,692 889,901 516,415 13, 704,313 15,624,020 19,977,3 32 13,950,435 2,701,731 2,614,303 1,953,960 2,058,267 3,099,032 3,314,159 3,513,460 3,806,389 7,071,322 7,755,727 8,446,911 5,542,308 1,111,301 1,076,727 1,103,021 1,033,260 140,334 143,653 183,346 183,024 - 683,036 1,107,328 1,113,232 464,553 835,770 2,008,073 585,875 2,016,000 2,155,000 1,973,000 1,749,000 838,950 1,011,157 937,895 1,074,052 17,443,223 19,589,532 21,226,994 17,145,407 (3,738,910) (3,965,512) (1,249,662) (3,194,972) 280,269 28,818 54,037 13,750 9,412,000 6,327,000 4,375,000 209,000 176,231 450 - - - (13,635) (25,798) - - (7,225,000) - - 2,651,469 5,811,452 2,900,249 4,763,391 (2,955,664) (6,111,177) (3,019,224) (4,796,159) 9,564,305 (1,182,092) 4,284,264 189,982 $ 5,825,395 $ (5,147,604) $ 3,034,602 $ (3,004,990) 100 16.8% 16.9% 15.1% 27.6% Table 4 Fiscal Year 2009 2010 2011 2012 2013 2014 $ 9,561,570 $ 8,647,488 $ 8,655,971 $ 8,560,340 $ 8,475,214 $ 8,612,011 307,714 330,138 322,030 319,172 431,654 407,681 1,259,016 1,176,863 1,331,914 5,267,570 500,963 823,025 968,995 851,270 904,522 816,998 2,130,519 1,278,202 778,163 780,044 812,604 744,633 717,300 731,640 111,807 127,203 154,020 155,956 119,079 149,653 429,325 225,677 251,244 202,825 222,810 173,422 - - - - (276,276) 92,372 513,306 502,992 460,710 414,088 384,749 767,477 13,929,896 12,641,675 12,893,015 16,481,582 12,706,012 13,035,483 1,918,246 1,730,390 1,773,515 1,619,215 1,569,722 1,692,175 4,122,352 3,798,106 3,791,329 3,861,265 3,744,957 3,845,732 1,965,640 1,902,411 2,192,732 3,339,430 2,953,969 3,213,688 1,106,006 945,821 1,059,191 1,056,976 1,002,797 942,809 209,466 185,232 134,122 176,318 134,127 149,292 1,005,095 1,098,682 624,286 435,154 418,533 402,750 501,806 282,938 4,209,593 616,931 291,135 674,488 1,908,000 1,866,000 2,030,000 2,145,000 2,214,000 3,664,000 994,809 1,042,883 983,129 831,875 774,172 696,780 - - - 47,054 17,137 - 13,731,420 12,852,463 16,797, 897 14,129,218 13,120,549 15,281,714 198,476 (210,788) (3,904,882) 2,352,364 (414,537) (2,246,231) 35,700 20,600 50,953 4,175 16,727 1,727 4,596,000 1,170,000 120,000 2,165,000 808,000 3,140,000 11,141 10,980 - - 6,558 - - (965,000) - - (435,000) - - - (565,000) - - - 1,413,985 1,195,747 2,971,715 1,979,457 1,722,541 2,608,534 (1,367,863) (1,127,625) (2,905,593) (1,910,435) (1,650,817) (2,539,240) 4,688,963 304,702 (327,925) 2,238,197 468,009 3,211,021 $ 4,887,439 $ 93,914 $ (4,232,807) $ 4,590,561 $ 53,472 $ 964,790 22.7% 23.7% 18.6% 22.1% 25.3% 31.2% 101 CITY OF LINO LAKES, MINNESOTA ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS Table 5 Source: Anoka County, Minnesota Assessors' Office Note: The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. 102 Commercial/ Total Taxable Payable Residential Industrial Personal Assessed Total Direct Year Property Property Property Value Tax Rate 2005 $ 14,055,076 $ 2,290,829 $ 274,956 $ 16,620,861 42.22 2006 15,825,619 2,740,583 271,665 18,837,867 41.40 2007 17,605,080 3,047,965 288,290 20,941,335 38.99 2008 18,382,645 3,431,107 279,102 22,092,854 38.97 2009 18,919,087 4,002,349 275,496 23,196,932 38.73 2010 17,978,917 3,800,004 291,904 22,070,825 37.91 2011 16,214,698 3,223,901 303,964 19,742,563 42.04 2012 14,743,557 2,945,026 310,870 17,999,453 42.89 2013 13,693,905 2,571,769 336,047 16,601,721 46.77 2014 13,646,798 2,450,473 341,974 16,439,245 46.68 Source: Anoka County, Minnesota Assessors' Office Note: The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. 102 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 of Tax Capacity) Source: Anoka County Property Records and Tax Division Overlapping Rates Centennial City Direct Rate School General District Anoka Obligation Total ISD # 12 County Debt Total Fiscal Year Basic Rate Service Direct 2005 $ 36.838 $ 5.385 $ 42.223 2006 36.044 5.354 41.398 2007 34.356 4.638 38.994 2008 34.560 4.407 38.967 2009 34.716 4.017 38.733 2010 34.086 3.819 37.905 2011 37.425 4.616 42.041 2012 37.501 5.393 42.894 2013 40.964 5.810 46.774 2014 39.784 6.899 46.683 Source: Anoka County Property Records and Tax Division Overlapping Rates Centennial School Other District Anoka Taxing Total ISD # 12 County Districts Overlapping $ 37.486 $ 33.080 $ 6.696 $ 77.262 40.253 32.096 6.479 78.828 38.090 30.696 5.578 74.364 35.258 31.078 6.956 73.292 34.593 32.078 5.611 72.282 37.285 35.189 5.879 78.353 43.695 39.952 6.278 89.925 40.010 41.146 6.691 87.847 43.681 44.411 6.940 95.032 46.186 43.239 6.712 96.137 Notes: The majority of Lino Lakes is served by Independent School District No. 12. Rates for debt service are based on each year's requirements. 103 Table 6 Total Direct and Overlapping $ 119.485 120.226 113.358 112.259 111.015 116.258 131.966 130.741 141.806 142.820 -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA Table 7 PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO 2014 2005 Source: Anoka County 104 Percentage Percentage of Total of Total City City Taxable Taxable Taxable Taxable Net Tax Net Tax Net Tax Net Tax Taxpayer Capacity Rank Capacity Capacity Rank Capacity Target Corporation $ 202,004 1 1.23 % $ 263,094 1 1.53 Xcel Energy 181,380 2 1.10 136,964 3 0.80 Lino Lakes Realty LLC 170,200 3 1.04 - - Moline Concrete Products 104,649 4 0.64 133,481 4 0.78 Taylor Corporation 94,992 5 0.58 104,406 6 0.61 Kohl's Department Store 94,524 6 0.57 154,544 2 0.90 Gargaro Properties LLC 79,180 7 0.48 80,836 7 0.47 Marmon/Keystone Corp 72,020 8 0.44 76,308 8 0.44 CenterPoint Energy 63,156 9 0.38 58,700 10 0.34 Lino Lakes Business Center LLC 55,528 10 0.34 107,174 5 0.62 F&G Incorporated - - 72,040 9 0.42 Total $ 1,117,633 6.80 % $ 1,187,547 6.91 Source: Anoka County 104 CITY OF LINO LAKES, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS. LAST TEN FISCAL YEARS Notes: Current year levies and collections include State levy related credits. Does not include tax increment levies and collections. 105 Collected within the Fiscal Year of Levy Taxes Levied for the Fiscal Year of Amount Fiscal Operating Debt Total Tax Year Tax Levy Tax Levy Levy 96.8% 8,982,756 97.2% 2005 $ 6,342,211 $ 927,091 $ 7,269,302 2006 7,042,626 934,281 7,976,907 2007 7,558,995 897,333 8,456,328 2008 7,973,236 893,720 8,866,956 2009 8,295,172 949,166 9,244,338 2010 7,816,232 879,182 8,695,414 2011 7,719,240 940,760 8,660,000 2012 7,192,818 1,034,441 8,227,259 2013 7,190,538 1,025,090 8,215,628 2014 7,098,922 1,197,122 8,296,044 Notes: Current year levies and collections include State levy related credits. Does not include tax increment levies and collections. 105 Collected within the Fiscal Year of Levy Percentage of Amount Levy $ 6,881,838 94.7% 7,594,019 95.2% 8,324,180 98.4% 8,581,974 96.8% 8,982,756 97.2% 8,400,439 96.6% 8,486,845 98.0% 8,095,502 98.4% 8,094,911 98.5% 8,229,986 99.2% Collections in Subsequent Years $ 56,369 63,036 104,467 127,599 192,624 180,336 114,637 70,113 58,970 Total Collections to Date Amount $ 6,938,207 7,657,055 8,428,647 8,709,573 9,175,380 8,580,775 8,601,482 8,165,615 8,153,881 8,229,986 Percentage of Levy 95.4% $ 96.0% 99.7% 98.2% 99.3% 98.7% 99.3% 99.3% 99.2% 99.2% 106 Outstanding Delinquent Taxes 331,095 319,858 27,711 158,911 71,243 128,597 75,888 75,885 120,717 66,058 Table 8 Percentage of Levy Outstanding 4.6% 4.0% 0.3% 1.8% 0.8% 1.5% 0.9% 0.9% 1.5% 0.8% CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 107 Business -Type Governmental Activities Activities General General Special Other Obligation Total Fiscal Obligation Assessments Long -Term Revenue Primary Year Bonds Payable Debt Bonds Government 2005 $ 5,335,000 $ 19,405,000 $ - $ 2,425,000 $ 27,165,000 2006 7,177,000 13,940,000 - 4,410,000 25,527,000 2007 11,569,000 12,520,000 - 1,855,000 25,944,000 2008 11,184,000 11,365,000 - 1,530,000 24,079,000 2009 10,712,000 10,265,000 4,260,000 1,170,000 26,407,000 2010 10,141,000 9,175,000 4,260,000 795,000 24,371,000 2011 9,482,396 7,985,000 3,695,000 405,000 21,567,396 2012 10,688,221 6,780,000 3,695,000 - 21,163,221 2013 9,893,152 5,720,000 3,695,000 - 19,308,152 2014 9,227,177 7,445,000 2,080,000 - 18,752,177 Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 107 Percentage of Assessed Market Value 1.77 1.47 1.35 1.19 1.24 1.22 1.20 1.29 1.18 1.14 Table 9 (1) Percentage of Personal Per Income Capita 3.90 % $ 1,379 3.54 1,293 3.41 1,307 3.08 1,205 3.44 1,301 3.13 1,206 2.59 1,049 2.47 1,024 2.19 931 N/A 893 108 CITY OF LINO LAKES, MINNESOTA RATIOS OF NET GENERAL BONDED DEBT LAST TEN FISCAL YEARS Governmental Activities General Special Other Total Fiscal Obligation Assessments Long -Term Primary Year Bonds Payable Debt Government 2005 $ 5,335,000 $ 19,405,000 $ - $ 24,740,000 2006 7,177,000 13,940,000 - 21,117,000 2007 11,569,000 12,520,000 - 24,089,000 2008 11,184,000 11,365,000 - 22,549,000 2009 10,712,000 10,265,000 4,260,000 25,237,000 2010 10,141,000 9,175,000 4,260,000 23,576,000 2011 9,482,396 7,985,000 3,695,000 21,162,396 2012 10,688,221 7,095,000 3,695,000 21,478,221 2013 9,893,152 5,720,000 3,695,000 19,308,152 2014 9,227,177 7,445,000 2,080,000 18,752,177 Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 109 Less: Amounts Percentage Available in Debt Net of Assessed Service Funds Bonded Debt Market Value $ 7,371,359 $ 17,368,641 1.29 3,992,952 17,124,048 1.24 3,925,402 20,163,598 1.14 3,405,272 19,143,728 1.02 3,457,349 21,779,651 1.08 2,986,102 20,589,898 1.07 2,638,129 18,524,267 1.05 3,035,557 18,442,664 1.10 3,357,196 15,950,956 1.18 2,501,738 16,254,262 0.99 110 Table 10 Per Capita $ 1,005 1,091 1,109 1,034 1,130 1,058 923 879 766 774 -This page intentionally left blank - CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2014 Overlapping: Anoka County ISD 12 ISD 624 ISD 831 Metropolitan Council Rice Creek Watershed District Anoka County Railroad Authority Total Overlapping City of Lino Lakes Direct Debt Total Direct and Overlapping Debt: Debt Outstanding $ 143,506,281 51,790,000 90,960,000 23,455,000 1,507,019,856 500,000 26,460,000 $ 18,752,177 Estimated Percentage Applicable 6.5% 45.8% 3.4% 7.4% 0.6% 33.6% 6.5% Table 11 Estimated Share of Overlapping Debt $ 9,270,009 23,697,924 3,135,182 1,746,770 9,025,183 168,224 1,709,224 48,752,516 100% 18,752,177 $ 67,504,693 Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt outstanding data provided by each governmental unit. Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden bome by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment) of property subject to taxation in overlapping unit to valuation of property subject to taxation in City. 111 CITY OF LINO LAKES, MINNESOTA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Debt limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Fiscal Year 2005 2006 2007 2008 $ 30,698,674 $ 34,686,356 $ 38,556,150 $ 60,658,830 4,845,000 4,332,000 4,039,000 3,804,000 $ 25,853,674 $ 30,354,356 $ 34,517,150 $ 56,854,830 15.78% 12.49% 10.48% 6.27% 112 Table 12 Legal Debt Margin Calculation for Fiscal Year 2014 Market value $ 1,509,921,169 Debt limit (3% of market value) 45,297,635 Debt applicable to limit 4,191,000 Legal debt margin $ 41,106,635 Fiscal Year 2009 2010 2011 2012 2013 2014 $ 64,036,746 $ 60,622,086 $ 54,123,645 $ 45,595,717 $ 45,595,717 $ 45,297,635 3,642,000 3,386,000 2,961,000 4,280,000 4,280,000 4,191,000 $ 60,394,746 $ 57,236,086 $ 51,162,645 $ 41,315,717 $ 41,315,717 $ 41,106,635 5.69% 5.59% 5.47% 9.39%0 9.39% 9.25% 113 CITY OF LINO LAKES, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Per Capita (3) Personal School Income Enrollment Table 13 (4) Unemployment Rate $ 35,374 6,934 (2) 36,516 6,986 Personal 38,271 6,846 Income Fiscal (1) (thousands Year Population of dollars) 2005 19,698 $ 696,797 2006 19,736 720,680 2007 19,851 759,718 2008 19,987 781,132 2009 20,305 768,341 2010 20,216 777,912 2011 20,505 831,170 2012 20,625 857,753 2013 20,700 879,903 2014 21,000 N/A Per Capita (3) Personal School Income Enrollment Table 13 (4) Unemployment Rate $ 35,374 6,934 3.8 36,516 6,986 4.1 38,271 6,846 4.8 39,082 6,768 6.9 37,840 6,725 7.8 38,480 6,523 7.1 40,535 6,426 5.9 41,588 6,421 5.6 42,236 6,392 4.5 N/A 6,582 3.4 Source: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2014 which is city estimate (2) Information from Bureau of Economic Analysis Report - Anoka County statistics used as local information is unavailable (3) Information from ISD 12 Website (4) Information from MN Department of Employment and Economic Development - Anoka County statistics used as local information is unavailable Note: Information not available is marked N/A 114 CITY OF LINO LAKES, MINNESOTA PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO Table 14 Source: City of Lino Lakes Official Statements/Employer Surveys Notes: (1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment within the City was not available. 115 2014 2005 (1) (1) Percentage Percentage of Total of Total Employer Employees Rank Employment Employees Rank Employment State of Minnesota Corrections 450 1 N/A % 413 1 N/A % ISD 12 - Centennial Schools 362 2 N/A - - N/A Taylor Corporation 160 3 N/A 240 2 N/A Target Corporation 150 4 N/A 230 3 N/A Curtis 1000 130 5 N/A - - N/A Anoka County Juvenile Center 130 6 N/A 150 7 N/A Molin Concrete Products 123 7 N/A 162 6 N/A Kohls 120 8 N/A 135 9 N/A YMCA 120 9 N/A - - N/A Rehbein Transit, Inc. 100 10 N/A 150 8 N/A Synovis Interventional Systems - - - 200 4 N/A Summit Fire Protection - - - 165 5 N/A City of Lino Lakes - - - 72 10 N/A Total 1,845 - % 1,917 - % Source: City of Lino Lakes Official Statements/Employer Surveys Notes: (1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment within the City was not available. 115 CITY OF LINO LAKES, MINNESOTA FULL -TIME -EQUIVALENT EMPLOYEES BY TYPE LAST TEN FISCAL YEARS General Government Administration Seniors Finance Economic Development Planning Community Development Engineering Building Other Total General Government Public Safety Officers Civilians Fire Building Inspection Total Public Safety Public Works Streets Other Total Public Works Parks, Recreation and Forestry Water Sewer Total Source: City Finance Office 2005 2006 2007 2008 2009 5.00 5.00 5.00 5.00 5.00 0.63 0.63 0.63 0.63 0.63 3.50 3.50 3.50 3.50 3.50 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.75 2.75 2.75 2.75 2.75 1.00 1.00 1.00 1.00 1.00 1.15 1.15 1.40 1.40 1.40 17.03 17.03 17.28 17.28 17.28 25.00 26.00 26.00 27.00 27.00 4.75 4.75 4.75 4.75 4.75 4.25 4.25 4.25 4.25 4.25 34.00 35.00 35.00 36.00 36.00 6.35 6.85 7.35 7.35 7.35 1.15 1.15 1.15 1.15 1.15 7.50 8.00 8.50 8.50 8.50 9.05 9.55 9.80 9.80 9.80 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 71.88 73.88 74.88 75.88 75.88 116 Table 15 2010 2011 2012 2013 2014 4.00 3.50 3.50 3.50 3.50 0.63 - - - - 3.00 3.00 3.00 3.00 3.00 1.00 1.00 1.00 - - 2.00 1.00 1.00 1.00 1.00 2.25 2.00 2.00 2.00 2.00 1.00 - - - - 1.40 0.70 0.70 0.70 0.70 15.28 11.20 11.20 10.20 10.20 27.00 25.00 25.00 25.00 25.00 4.25 4.00 3.00 3.00 4.00 - - - - 1.00 2.75 2.50 2.50 2.50 2.00 34.00 31.50 30.50 30.50 32.00 6.85 7.00 7.00 7.00 7.00 1.15 1.00 1.00 1.00 1.00 8.00 8.00 8.00 8.00 8.00 9.30 9.00 9.00 8.70 8.70 2.15 2.15 2.15 2.30 2.30 2.15 2.15 2.15 2.30 2.30 70.88 64.00 63.00 62.00 63.50 117 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN YEARS Fiscal Year Function/Program 2005 2006 2007 1,461 General Government 3,767 3,151 Elections 1 2 1 Registered Voters 11,035 11,618 10,908 Number of Votes Cast 5,288 8,284 2,337 Voter Participation (Registered) 47.9% 71.3% 21.4% Public Safety Police: Calls for Service 6,973 6,990 7,053 Traffic Citations & Warnings 6,609 5,964 3,805 Part I Crimes 1,375 3,372 1,279 Part II Crimes 3,119 4,890 3,432 Inspections: Building Permits (1) 837 686 2,297 Value of Building Permits $53,686,592 $42,078,007 $30,539,559 Public Works General Maintenance (hours) 6,014 5,692 6,758 Street Maintenance (hours) 3,106 3,631 2,916 Fleet Maintenance (hours) 4,440 4,460 4,144 Snow Plowing/Sanding (hours) 1,003 867 1,425 Culture and Recreation Parks: Park Maintenance (hours) 10,577 10,368 10,939 Utilities Water Maintenance (hours) 3,904 4,387 4,256 Sanitary Sewer Maintenance (hours) 4,092 3,347 4,148 Source: Various City Departments Notes: Information not available is labeled N/A. (1) 1,565, 4,337 and 581 repair permits issued in 2007 and 2009, respectively, due to storm damage. 118 2008 2 12,723 11,051 86.9% 2009 1 11,805 4,354 36.9% 6,871 6,353 3,252 3,187 1,461 1,075 3,767 3,151 5,041 1,535 $15,852,780 $ 9,586,160 6,129 5,870 3,851 3,267 5,043 4,782 1,353 950 11,136 12,406 5,716 5,041 3,760 3,486 Table 16 Fiscal Year 2010 2011 2012 2013 2014 2 1 2 1 2 12,284 11,705 13,478 12,020 12,610 8,545 4,314 11,546 1,575 7,854 69.6% 36.9% 85.7% 13.1% 62.3% 6,398 6,384 6,344 6,210 6,210 2,743 2,604 2,694 2,597 2,597 982 1,117 N/A N/A N/A 2,911 2,911 N/A N/A N/A 509 452 459 490 431 $ 11,295,493 $ 11,295,493 $ 10,751,626 $ 17,683,665 $ 13,535,514 4,945 7,416 6,939 3,994 5,200 3,099 4,352 5,926 5,740 3,840 4,850 4,214 3,945 4,548 4,746 1,638 1,534 594 1,639 2,141 9,257 9,813 9,739 8,480 8,537 3,560 3,568 3,585 3,119 3,189 3,531 3,557 3,517 3,109 3,178 119 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN YEARS Function/Program 2005 Public Safety 1 Police: 12 Stations 1 Patrol Units 11 Fire (Joint Powers): 1 Stations in City 1 Fire Trucks 4 Public Works 673 Lights 559 Vehicles 29 City Streets (miles) 95.5 Culture and Recreation 96.1 Parks: 100.71 Parks 18 Park Acres 141 Trails (miles) 19 Park Shelters 5 Basketball Courts 6 Fishing Pier 1 Skating Rinks 4 Soccer Fields 8 Baseball/Softball Fields 18 Tennis Courts 2 Playgrounds 17 Water 4,340 Distribution System (miles) 50.8 Water Connections 3,957 Gallons Pumped (millions) 475 Number of Fire Hydrants 523 Water Tower Capacity (millions gallons) 2 Sanitary Sewer 2 Collection System (miles) 63.5 Sewer Connections 4,142 Storm Sewer 4,428 Pipe (miles) 33.1 Source: Various City Departments 120 Fiscal Year 2006 2007 2008 2009 1 1 1 1 12 12 12 12 1 1 1 1 5 5 5 5 673 673 673 673 29 29 29 29 96 96.1 100.71 100.71 t8 18 18 18 141 141 141 141 20 26 26 26 7 7 7 7 6 6 6 6 1 1 1 1 4 4 4 4 8 8 8 8 20 20 20 20 2 2 2 2 16 16 16 16 51.1 64.7 74.7 74.7 4,090 4,112 4,247 4,340 565 595 590 589 538 538 538 538 2 2 2 2 63.3 64.5 69.8 69.8 4,282 4,428 4,447 4,486 34.1 34.3 41.4 41.4 Table 17 18 18 Fiscal Year 18 18 2010 2011 2012 2013 2014 1 1 1 1 1 12 12 12 12 12 1 1 1 1 1 5 5 5 5 5 673 673 673 673 673 29 29 29 29 29 100.71 100.71 100.71 100.71 100.71 18 18 18 18 18 141 141 141 141 141 26 26 26 26 26 7 6 6 6 6 6 6 6 6 6 1 1 1 1 1 4 4 4 4 4 8 8 8 8 8 20 20 20 20 20 2 2 2 2 2 16 16 16 16 16 74.7 74.7 74.7 74.7 74.7 4,382 4,424 4424 4484 4520 498 492 609 536 536 538 538 538 538 538 2 2 2 2 2 69.8 69.8 69.8 69.8 69.8 4,530 4,567 4567 4624 4685 41.4 41.4 41.4 41.4 41.4 121 -This page intentionally left blank -