11-13-2018 Council Meeting Packet

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 years by $133,718 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of$124,952. REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: Revenue Pied ed CurrentYear Remaining Principal Pledged Tenn of Principal and Interest -Bond Issue Use of Proceeds r~ PledRe and Interest Paid Received Certificates oflndebtedness Equipment purchases Ad valorem taxes 2015-2020 $1,316,355 $606,792 2006E G.O. CIP Bonds Infrastructure improvements Advalorem taxes 2007-2017 S433,500 $431,657 2007A G.O. TIF Bonds Infrastructure improvements MSA funding via 2008-2023 $1,874,899 $475,481 transfenL tax increment 2010A Improvement and Utility General and water infrastructure Special assessments and 2011 -2019 S339,925 $111,955 Revenue Bonds improvements trunkcluu-ge, 2012A G.O. Bonds Infrastructure improvements Ad valorem taxes and 2013-2023 $1,328,093 $242,020 Snec:ialassessmcnts 2013A Improvement Bonds Infrastructure improvements Special assessments 2014-2023 $494,160 $76,853 2014A Improvement Bonds Infrastructure improvements Special assessments 2015-2025 $2,294,501 $402,927 2015A 0.0. Bonds Infrastructure improvements Advaloremtaxes 2016-2030 $3,397,356 $257,817 20158 EDA Leese Revenue Bonds Construction of a fire station Advaloremtaxes 2016-2035 $5,687,956 $299,942 2016A Capital Note Cable communications equipment Franchise fees 2016-202S $252,516 $37,595 2016A Utility Revenue Bonds Water infrastructure improvements Tnmk utility charges via 2017-2026 $1,565,300 $20,269 ... ,,.,, 20 I 68 Improvement Bonds Infrastructure improvements Special assessments, 2017-2020 $2,028,048 $17,015 tax increment 2016C G.O. Tax Abatement Bonds Infrastructure improvements Ad valorem taxes 2017-2022 $1,668,913 $14,671 Note 7 CONDUIT DEBT 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 $633,871 $462,493 $475,481 $46,247 $200,014 $63,606 $251,212 $271,621 $315,855 $37,595 $274,474 $ $2S9,7IO CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 accompanying financial statements. At December 31, 2017, one series oflndustrial Revenue Bonds was outstanding with an aggregate remaining principal balance of $60,000, and one series of Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $1,097,227. Note8 DEFINED BENEFIT PENSION PLANS -PERA A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA 's defined benefit pension plans are tax qualified plans under Section 401 ( a) of the Internal Revenue Code. I. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). 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. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. 2. Public Employees Police and Fire Fund (PEPFF) The PEP FF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July I, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each Janwuy. Increases are related to the funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given I% increases. The benefit provisions stated in the following 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. I. GERF Benefits Benefits are based on a member's highest 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 a step-IV-28