HomeMy WebLinkAbout06-03-2019 Council PacketCITY COUNCIL WORK SESSION AGENDA
CITY OF LINO LAKES
Monday, June 3, 2019
Community Room
6:00 P.M.
1. Review 2018 Annual Audit, Redpath & Company, Ltd.
2. MS4 Annual Report, Diane Hankee
3. Elmcrest Ave and Cedar Street Update, Diane Hankee
4. Blue Heron Days Parade, John Swenson
5. Fire Division Staffing, John Swenson
6. Pheasant Hills Watermain Discussion, Rick DeGardner
7. Environmental Coordinator Position, Michael Grochala
8. Job Classification and Compensation Study, Karissa Bartholomew
9. 2020 Budget, Sarah Cotton
10. Council Updates on Boards/Commissions, City Council
11. Monthly Progress Report, Jeff Karlson
12. Review Regular Agenda
13. Adjourn
WS – Item 1
WORK SESSION STAFF REPORT
Work Session Item No. 1
Date: June 3, 2019
To: City Council
From: Sarah Cotton, Finance Director
Re: 2018 Annual Audit Report
Background
Andy Hering of Redpath and Company will be in attendance at the meeting to provide an
overview of the City’s 2018 Annual Financial Report, present the auditor’s management
analysis and answer any questions you may have with regard to the financial condition of
the City.
The 2018 annual audit was undertaken earlier this year, with field work being completed
in May. The auditors review all financial transactions and the financial reports of the
City over the previous year for their fairness in presentation and for full disclosure of all
material aspects of the City’s financial condition. This review is conducted in accordance
with generally accepted auditing standards and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States. The auditors concluded that the City’s financial statements for 2018
presented fairly, in all material respects, the financial position of the City as of December
31, 2018. The auditors also issue their reports on the City’s legal compliance with certain
laws, regulations, contracts, etc., our internal control structure, and management issues.
It should be noted that the City has received the Certificate of Achievement for
Excellence in Financial Reporting from the Government Finance Officers Association of
the United States and Canada for its 2017 Comprehensive Annual Financial Report. The
city has received this award each year since 1995. We believe that the report issued for
2018 continues to uphold the high standards of reporting excellence that this prestigious
award represents.
The presentation at the work session will be comprehensive and is intended to provide the
opportunity for council members to ask any questions or make comments about the audit
report and the state of city finances. Mr. Hering will also give an abbreviated
presentation at the June 10, 2019, regular City Council meeting.
Requested Council Direction
None
Attachments
2018 Comprehensive Annual Financial Report
2018 Other Audit Reports
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2018
Prepared By: Finance Department
Sarah Cotton, Director of Finance
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting9
Organization Chart 10
Principal City Officials 11
Independent Auditor's Report 15
Management's Discussion and Analysis 19
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 33
Statement of Activities Statement 2 34
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 36
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position Statement 4 39
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 5 40
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balance of Governmental Funds to the Statement of Activities Statement 6 42
Statement of Net Position - Proprietary Funds Statement 7 43
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 8 44
Statement of Cash Flows - Proprietary Funds Statement 9 45
Statement of Net Position - Fiduciary Funds Statement 10 46
Notes to Financial Statements 47
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 11 88
Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 12 94
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund Statement 13 95
Schedule of Pension Contributions -
General Employees Retirement Fund Statement 14 96
INTRODUCTORY SECTION
FINANCIAL SECTION
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Schedule of Proportionate Share of Net Pension Liability -
Public Employees Police and Fire Fund Statement 15 97
Schedule of Pension Contributions -
Public Employees Police and Fire Fund Statement 16 98
Schedule of Changes in the Net Pension Liability and Related Ratios -
Lino Lakes Public Safety Department - Fire Division Statement 17 99
Schedule of Contributions -
Lino Lakes Public Safety Department - Fire Division Statement 18 100
Notes to RSI 101
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 19 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 20 107
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 21 110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 22 112
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 23 116
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 24 118
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 25 123
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 26 126
Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual Statement 27 129
Statement of Changes in Assets and Liabilities - Agency Funds Statement 28 130
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Financial Trends:
Net Position by Component Table 1 132
Changes in Net Position Table 2 134
Fund Balances, Governmental Funds Table 3 138
Changes in Fund Balances, Governmental Funds Table 4 140
Revenue Capacity:
Assessed and Actual Value of Taxable Property Table 5 142
Direct and Overlapping Property Tax Capacity Rates Table 6 143
Principal Property Taxpayers Table 7 145
Property Tax Levies and Collections Table 8 146
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 148
Ratios of Net General Bonded Debt Table 10 150
Direct and Overlapping Governmental Activities Debt Table 11 152
Legal Debt Margin Information Table 12 153
Demographic and Economic Information:
Demographic and Economic Statistics Table 13 154
Principal Employers Table 14 155
Operating Information:
Full-Time Equivalent City Government Employees By Function/Program Table 15 156
Operating Indicators by Function/Program Table 16 158
Capital Asset Statistics by Function/Program Table 17 160
Schedule of Long-Term Debt Exhibit 1 162
Schedule of Deferred Tax Levies Exhibit 2 164
Debt Service Payments to Maturity Exhibit 3 166
Insurance in Force Exhibit 4 170
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 171
STATISTICAL SECTION (UNAUDITED)
OTHER INFORMATION (UNAUDITED)
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INTRODUCTORY SECTION
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600 Town Center Parkway, Lino Lakes, MN 55014
Phone: 651-982-2400 ∙ Fax: 651-982-2499
May 24, 2019
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, 2018.
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 Redpath and Company, Ltd., 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, 2018, 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, 2018,
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.
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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 21,700. The
population has more than doubled from the 1990 census figure of 8,807 and has grown by 29.2% 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 I-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, fire and building inspection), public services (streets, fleet, parks and recreation),
conservation of natural resources (environmental and solid waste abatement), community development,
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 Statements 11 and 27, 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. Super Target and Kohl’s anchor the shopping center
quadrant, while Apollo Business Park brought approximately 1,000 new employees to the area.
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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, an
assisted living facility, and a 112-unit townhome development. 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.
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.
The city prepaid the Note with Anoka County in 2017 using MSA funds.
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 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.
Development activities continued to increase in 2018. Residential permit activity for new home
construction surpassed 100 for the third consecutive year with 162 issued. This trend is expected to
continue as national builder, Lennar Homes, began construction on the first phase of an 871 lot
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development. Overall construction activity exceeded $52 million in new valuation. Commercial
development continues to show signs of recovery as new construction activities and development
planning emerges. The City approved a concept plan for a 200-unit senior living community, which is
planned for construction in 2019.
Long-term financial planning. The City’s currently adopted five-year financial plan identifies street and
utility improvements totaling $31,853,679 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. 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
2023.
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, 2018 was $6,599,956 which is 62%
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, state and
local securities, 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 2018 was 1.63%. 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
unrealized losses of $172,593, or 0.37%, for a total investment yield of 1.26%. 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.
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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, 2017. This marks the twenty-third 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 2018 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. I 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,
Sarah R. Cotton
Director of Finance
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City of Lino Lakes Organizational Chart
City Council
City Administrator
Administration Finance Community
Development
Public Services Public Safety
City Clerk Accounting Planning Recreation Police Division
Human Resources Utility Billing
Economic
Development
Engineering
Environmental
Services
Government
Buildings
Public Works
Street / Fleet / Utility
Maintenance
Parks
Building Inspections
Fire Division
Senior Citizen
Services
Advisory Board &
Commissions
Network
Administration
Emergency
Management/
Administration
Public Information 10
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2018
Term Expires
Mayor: Jeff Reinert December 31, 2019
Councilmembers: Dale Stoesz December 31, 2021
Rob Rafferty December 31, 2021
Melissa Maher December 31, 2019
Michael Manthey December 31, 2019
City Administrator: Jeff Karlson Appointed
Directors:
Community Development Michael Grochala Appointed
Finance Sarah Cotton Appointed
Public Safety John Swenson Appointed
Public Services Richard DeGardner Appointed
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FINANCIAL SECTION
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55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the 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, Minnesota, as of and for the year ended December 31, 2018, and the related
notes to the financial statements, which collectively comprise the City of Lino Lakes,
Minnesota’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.
Auditor’s 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 auditor’s
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.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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, Minnesota,
as of December 31, 2018, 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, the budgetary comparison information, and the schedules
of OPEB and pension information, 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, Minnesota’s basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and
schedules, statistical section and other information are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules 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
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procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
The introductory section, the statistical section and other information 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 them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
May 24, 2019, on our consideration of the City of Lino Lakes, Minnesota’s 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 solely to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City of Lino
Lakes, Minnesota’s 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 the City of Lino Lakes, Minnesota’s internal control over financial reporting and
compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 24, 2019
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the
City’s financial statements this narrative overview and analysis of the financial activities of
the City for the fiscal year ended December 31, 2018. 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 in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$100,077,798 (net position). Of this amount, $32,148,347 (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 increased by $6,784,185.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $33,255,201, an increase of $9,199,079. Of this amount, $9,824,255
is restricted by external constraints established by creditors, grantors, contributors, or by state
statutory provisions.
At the end of the current fiscal year, the general fund balance was $6,886,142. Unassigned
fund balance for the general fund was $6,599,956, or 62% of total general fund expenditures
and other financing uses.
Total outstanding debt increased by $4,476,595 during 2018. General Obligation Bonds and
certificates of indebtedness totaling $7,218,900 were issued, while regularly scheduled
principal payments were made during the year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic
financial statements. The City’s basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 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’s finances, in a manner similar
to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
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Management’s Discussion and Analysis
decreases in net position may serve as a useful indicator of whether the financial position of
the City 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 vacation leave).
Both of the government-wide financial statements distinguish functions of the City 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 include general government, public safety, public services, conservation of natural
resources and community development. The business-type activities of the City include a
water utility and sewer utility.
The government-wide financial statements are statements 1 and 2 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, 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
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 financial 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
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
20
Management’s Discussion and Analysis
The City maintains six individual major 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 balance for the following major funds:
General Fund
G.O. Improvement Note of 2009A – Debt Service Fund
G.O. Improvement Bonds of 2016B – Debt Service Fund
Area and Unit Charge – Capital Project Fund
MSA Construction – Capital Project Fund
2018 Street Reconstruction – Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated 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 adopts an annual appropriated budget for its General Fund and its Program
Recreation special revenue fund. A budgetary comparison schedule has been provided for
those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are statements 3 through 6 of this report.
Proprietary funds. The City maintains two enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water and sewer 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 water and sewer funds, which are considered to be major
funds of the City. The basic proprietary fund financial statements are statements 7 through 9
of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held by the City as an
agent for individuals, private organizations, or other governments. Fiduciary funds are not
reflected by the government-wide financial statements because the resources of those funds
are not available to support the City’s own programs.
The basic fiduciary fund statements are Statements 10 and 28.
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 following Statement 10.
Other information. The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
21
Management’s Discussion and Analysis
information. Combining and individual fund statements and schedules are presented as
Statements 19 through 27.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $100,077,798 at the close of the most recent
fiscal year.
The largest portion of the City’s net position ($57,349,634, or 57%) reflects its net
investment in capital assets (e.g. land, buildings, equipment, and infrastructure) less any
related debt used to acquire those assets that is still outstanding. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s 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.
City of Lino Lakes’ Net Position
2018 2017 2018 2017 2018 2017
Assets:
Current and other assets $41,949,582 $32,942,034 $16,003,964 $15,272,668 $57,953,546 $48,214,702
Capital assets 44,102,567 42,611,027 32,709,079 31,831,950 76,811,646 74,442,977
Total assets $86,052,149 $75,553,061 $48,713,043 $47,104,618 $134,765,192 $122,657,679
Deferred outflows of resources $4,305,683 $5,625,220 $61,906 $97,118 $4,367,589 $5,722,338
Liabilities:
Long-term liabilities outstanding $30,443,714 $27,257,669 $312,016 $413,334 $30,755,730 $27,671,003
Other liabilities 1,981,550 894,136 87,787 43,453 2,069,337 937,589
Total liabilities $32,425,264 $28,151,805 $399,803 $456,787 $32,825,067 $28,608,592
Deferred inflows of resources $6,134,676 $6,410,858 $95,240 $66,954 $6,229,916 $6,477,812
Net position:
Net investment in capital assets $24,640,555 $22,868,259 $32,709,079 $31,831,950 $57,349,634 $54,700,209
Restricted 10,579,817 11,730,147 - - 10,579,817 11,730,147
Unrestricted 16,577,520 12,017,212 15,570,827 14,846,045 32,148,347 26,863,257
Total net position $51,797,892 $46,615,618 $48,279,906 $46,677,995 $100,077,798 $93,293,613
Governmental Activities Business-Type Activities Totals
$10,579,817 of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position
($32,148,347) may be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City 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.
22
Management’s Discussion and Analysis
The City’s net position increased by $6,784,185 during 2018. Key elements of this increase
are as follows:
City of Lino Lakes’ Changes in Net Position
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues:
Charges for services $2,602,483 $3,600,902 $2,971,301 $2,849,797 $5,573,784 $6,450,699
Operating grants and contributions 861,429 1,106,014 - - 861,429 1,106,014
Capital grants and contributions 5,187,023 4,141,383 1,242,032 836,029 6,429,055 4,977,412
General revenues:
General property taxes 9,767,468 9,441,819 - - 9,767,468 9,441,819
Tax increment 462,223 312,152 - - 462,223 312,152
Grants and contributions not
restricted to specific programs 59,508 181,712 - - 59,508 181,712
Unrestricted investment earnings 369,485 207,792 213,434 106,488 582,919 314,280
Gain on disposal of capital assets 17,318 38,022 - - 17,318 38,022
Total revenues 19,326,937 19,029,796 4,426,767 3,792,314 23,753,704 22,822,110
Expenses:
General government 2,345,386 2,395,633 - - 2,345,386 2,395,633
Public safety 4,749,394 5,166,538 - - 4,749,394 5,166,538
Public services 5,384,522 5,492,395 - - 5,384,522 5,492,395
Conservation of naturual resources 201,590 200,016 - - 201,590 200,016
Community development 576,794 459,455 - - 576,794 459,455
Interest and fees on long-term debt 414,607 518,897 - - 414,607 518,897
Water - - 1,332,755 1,245,249 1,332,755 1,245,249
Sewer - - 1,964,471 1,901,821 1,964,471 1,901,821
Total expenses 13,672,293 14,232,934 3,297,226 3,147,070 16,969,519 17,380,004
Increase in net position before transfers 5,654,644 4,796,862 1,129,541 645,244 6,784,185 5,442,106
Transfers (472,370) (308,694) 472,370 308,694 - -
Change in net position 5,182,274 4,488,168 1,601,911 953,938 6,784,185 5,442,106
Net position - January 1, as previously reported 46,615,618 42,819,930 46,677,995 45,724,057 93,293,613 88,543,987
Prior period adjustment - (692,480) - - (692,480)
Net position - January 1, as restated 46,615,618 42,127,450 46,677,995 45,724,057 93,293,613 87,851,507
Net position - December 31 $51,797,892 $46,615,618 $48,279,906 $46,677,995 $100,077,798 $93,293,613
Business-Type Activities TotalsGovernmental Activities
Governmental Activities
Governmental activities increased the City’s net position by $5,182,274 during 2018. The
cumulative effect of decreased charges for services, increased capital grants and
contributions, and a decrease in public safety expenses account for the increase in 2018. This
increase was partially offset by transfers out to business-type activities of $472,370.
23
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Expenses
24
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities increased the City’s net position by $1,601,911 during 2018. The
increase was due to contributions of capital assets from private sources, as well as the City’s
governmental activities, in the amount of $1,956,547, offset by transfers out of $242,145.
Below are specific graphs which provide comparisons of the business-type activities
revenues and expenses:
25
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City’s financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $33,255,201. Approximately 30% of this total amount ($9,824,255)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $388,184 of fund balance is not in a spendable
form, $182,613 has been committed, $19,195,652 has been assigned, and $3,664,497 is
unassigned.
The fund balance of the General Fund increased by $69,217 in 2018, while the City
anticipated the use of $32,288 of the general fund balance. Overall, signs of continued
economic recovery are being seen with increased building and development activities taking
place which resulted in increased license and permit revenues for the year. The City also saw
a significant increase in the number of roofing and siding permits issued during the year due
to a storm causing significant damage throughout the City in June of 2017. Finally, reduced
expenditures, primarily for personal services through vacant positions, and professional and
contractual services helped to increase the year end fund balance.
The G.O. Improvement Note of 2009A fund was established to service the debt issued by
Anoka County as the City’s financial commitment for the I-35E interchange project. The
City prepaid the remaining balance of the note in 2017 using MSA funds. As deferred
special assessments are received, MSA funds will be replenished. The fund began and ended
the year with a fund balance of $0, and transferred $647,371 to the MSA Construction fund.
The G.O. Improvement Bonds of 2016B fund decreased by $217,643. The 2016B series
bonds were issued to refund the 2005A series bonds and fund the Legacy at Woods Edge
improvements. Future tax increment and land sale proceeds are expected to cover debt
service and the interfund loan payable.
The Area and Unit Charge fund has a total fund balance of $8,156,800, all of which is
assigned for financing capital improvements. The fund balance during the current year
increased by $500,645 due to the collection of prepaid special assessments and trunk utility
development fees.
The MSA Construction fund has a total fund balance of $3,919,729, all of which is assigned
to capital improvements for City MSA designated roadways. The fund balance during the
current year increased by $3,076,355 primarily due to an advance of funds for MSA street
projects completed in prior years.
26
Management’s Discussion and Analysis
The 2018 Street Reconstruction fund has a total fund balance of $5,300,079. The fund
balance increased during the year by $5,497,747 due to proceeds from bond issuance
exceeding the expenditures incurred related to the West Shadow Lake Drive and LaMotte
Area Street Reconstruction project.
The combined fund balance of other governmental funds increased by $272,758 during 2018.
Primary reasons for the increase include the closeout of the debt service fund associated with
the 2006E Series G.O. CIP Refunding Bonds, the transfer of $500,000 from the General
Fund for park and trail improvements, and the closeout of the Birch Street turn lane and
utility project, offset by debt service expenditures exceeding revenues.
Proprietary funds. The City’s 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 $23,481,908, of which $6,008,956 is
unrestricted. The increase in net position of $860,344 was primarily due to capital
contributions, partially offset by a net operating loss.
The sewer fund has total net position at year-end of $24,797,998 of which $9,561,871 is
unrestricted. The increase in net position of $741,567 was primarily due to capital
contributions, partially offset by a net operating loss and a transfer to the 2018 Street
Reconstruction fund.
Budgetary Highlights
General Fund
The General Fund budget was amended during the year to reflect increased revenues relative
to building and licensing activities and state aid and decreased revenues related to a grant
funded police officer and fines and forfeitures. Changes to expenditure areas include
decreased personal services due to personnel vacancies, changes to professional and
contracted services, variances in supplies, investment in the Civic Complex air conditioning
units 2 & 3, and the final transfer for the park land loan and the comprehensive plan update
budgeted over 3 years (2016-2018). The final amended expenditure budget was $315,569
less than the original adopted budget.
Revenues were $96,898 over budget for the year. General property tax, special assessments,
fines and forfeits, and miscellaneous refunds and reimbursements were $71,231 under
budget; however, this variance was more than offset by greater than anticipated license and
permit revenues, intergovernmental revenue, charges for services, and investment earnings.
Expenditures came in under budget by $5,219 due to many factors including lower than
expected personal service costs from vacant positions and favorable professional and
contracted service activity. Fuel costs were much higher than anticipated due to an increase
in the average fuel price, as well as an increase in the number of snow events. Professional
27
Management’s Discussion and Analysis
and contracted service activity in parks was much higher than anticipated due to costs
associated with council initiated projects that were not originally planned for in 2018.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-
type activities as of December 31, 2018, amounted to $76,811,646 (net of accumulated
depreciation), an increase of $2,368,669 from the prior year. This investment in capital
assets includes land, wetland credits, construction in progress, buildings, equipment,
vehicles, and infrastructure. The City completed the Birch Street turn lane and utility
improvements, Phase II of the upgrades to the Civic Complex air conditioning system, the
Council Chambers upgrade, and Century Farms North trail improvements. The City has
continued to work to complete the land preparation activities for NorthPointe Park in 2018.
In addition, the City started trunk watermain and trail improvements on Lake Drive, trunk
utility improvements at 49&J, drainage improvements in the NE Area of the City, Water
Tower #3, Phase II of the controls automation upgrade at the Civic Complex, Woods Edge
Park improvements, and street and utility improvements in the West Shadow Lake Drive and
LaMotte areas. Developer lead infrastructure improvements at various stages of completion
include NorthPointe 4th, 5th, 6th and 7th Additions, Saddle Club 3rdAddition, Century Farms
6th and 7th Additions, St Clair Estates, and Chavez Estates.
City of Lino Lakes’ Capital Assets
(Net of Depreciation)
2018 2017 2018 2017 2018 2017
Land $3,320,059 $3,320,059 $ - $ - $3,320,059 $3,320,059
Wetland credits 167,224 162,372 - - 167,224 162,372
Construction in progress 3,595,457 2,482,238 1,623,032 1,507,153 5,218,489 3,989,391
Buildings 6,375,432 6,376,011 - - 6,375,432 6,376,011
Office equipment and furniture 270,711 236,777 - - 270,711 236,777
Vehicles 1,945,189 2,016,355 - - 1,945,189 2,016,355
Machinery and shop equipment 1,126,246 1,133,624 161,538 167,440 1,287,784 1,301,064
Other equipment 330,618 267,096 - - 330,618 267,096
Infrastructure 26,971,631 26,616,495 30,924,509 30,157,357 57,896,140 56,773,852
Total $44,102,567 $42,611,027 $32,709,079 $31,831,950 $76,811,646 $74,442,977
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 5 to the financial
statements.
28
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $24,452,838. Of this amount, $19,848,900 comprises tax supported debt and
$3,890,000 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 has a note payable to the City of Circle Pines for its share of the cost of
capital equipment to be used by the North Metro Telecommunications Commission in the
operation of a cable communications system in the amount of $202,125.
City of Lino Lakes’ Outstanding Debt
2018 2017 2018 2017 2018 2017
General obligation bonds $20,051,025 $14,947,725 $ - $ - $20,051,025 $14,947,725
G.O. special assessment bonds 3,890,000 4,905,000 - - 3,890,000 4,905,000
Bond premium 511,813 123,518 - - 511,813 123,518
Total $24,452,838 $19,976,243 $0 $0 $24,452,838 $19,976,243
Business-Type Activities TotalsGovernmental Activities
The City of Lino Lakes’ total bonded debt increased by $4,476,595 during the current fiscal
year. The key factors for the change include the issuance of $303,900 of Certificates of
Indebtedness to finance capital equipment purchases, $4,950,000 of General Obligation
Bonds to finance the West Shadow Lake Drive and LaMotte Area street and utility
improvements, and $1,965,000 to finance the Lake Drive water utility improvements.
Principal retired in the amount of $3,130,600 during the year.
Additional information on the City’s long-term debt can be found in Note 6.
Requests for information. This financial report is designed to provide a general overview
of the City’s finances for all 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.
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30
BASIC FINANCIAL STATEMENTS
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32
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2018
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $34,714,073 $14,999,488 $49,713,561
Accrued interest receivable 124,736 - 124,736
Due from other governmental units 77,256 1,982 79,238
Accounts receivable - net 61,051 366,298 427,349
Prepaid items 288,184 37,188 325,372
Internal balances (559,110) 559,110 -
Inventory - 39,898 39,898
Taxes receivable 198,715 - 198,715
Special assessments receivable 6,654,764 - 6,654,764
Long-term note receivable 225,000 - 225,000
Net pension asset 164,913 - 164,913
Capital assets - nondepreciable 7,082,740 1,623,032 8,705,772
Capital assets - net of accumulated depreciation 37,019,827 31,086,047 68,105,874
Total assets 86,052,149 48,713,043 134,765,192
Deferred outflows of resources related to pensions 4,305,683 61,906 4,367,589
Liabilities:
Accounts payable and other current liabilities 1,834,176 87,787 1,921,963
Accrued interest payable 147,374 - 147,374
Compensated absences payable:
Due within one year 497,161 28,292 525,453
Due in more than one year 316,711 4,586 321,297
Other post employment benefits 748,050 8,594 756,644
Bonds and notes payable:
Due within one year 2,815,075 - 2,815,075
Due in more than one year 21,637,763 - 21,637,763
Net pension liability:
Due in more than one year 4,428,954 270,544 4,699,498
Total liabilities 32,425,264 399,803 32,825,067
Deferred inflows of resources:
Pension related 6,087,516 95,240 6,182,756
OPEB related 47,160 - 47,160
Total deferred inflows of resources 6,134,676 95,240 6,229,916
Net position:
Net investment in capital assets 24,640,555 32,709,079 57,349,634
Restricted for:
Debt service 8,954,265 - 8,954,265
Tax increment purposes 557,211 - 557,211
Park improvements 227,540 - 227,540
Economic development 225,000 - 225,000
Environmental improvements - nonexpendable 100,000 - 100,000
Environmental improvements - expendable 33,853 - 33,853
Other purposes 481,948 - 481,948
Unrestricted 16,577,520 15,570,827 32,148,347
Total net position $51,797,892 $48,279,906 $100,077,798
Primary Government
The accompanying notes are an integral part of these financial statements.
33
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2018
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $2,345,386 $562,816
Public safety 4,749,394 1,591,658
Public services 5,384,522 448,009
Conservation of natural resources 201,590 -
Community development 576,794 -
Interest and fees on long-term debt 414,607 -
Total governmental activities 13,672,293 2,602,483
Business-type activities:
Water 1,332,755 1,217,589
Sewer 1,964,471 1,753,712
Total business-type activities 3,297,226 2,971,301
Total primary government $16,969,519 $5,573,784
The accompanying notes are an integral part of these financial statements.
34
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities Total
$16,688 $ - ($1,765,882)$ - ($1,765,882)
462,856 29,261 (2,665,619) - (2,665,619)
282,392 5,157,762 503,641 - 503,641
99,493 - (102,097) - (102,097)
- - (576,794) - (576,794)
- - (414,607) - (414,607)
861,429 5,187,023 (5,021,358)0 (5,021,358)
- 487,444 - 372,278 372,278
- 754,588 - 543,829 543,829
0 1,242,032 0 916,107 916,107
$861,429 $6,429,055 (5,021,358)916,107 (4,105,251)
General revenues:
General property taxes 9,767,468 - 9,767,468
Tax increment 462,223 - 462,223
Grants and contributions not
restricted to specific programs 59,508 - 59,508
Unrestricted investment earnings 369,485 213,434 582,919
Gain on disposal of capital assets 17,318 - 17,318
Transfers (472,370)472,370 -
Total general revenues and transfers 10,203,632 685,804 10,889,436
Change in net position 5,182,274 1,601,911 6,784,185
Net position - January 1 46,615,618 46,677,995 93,293,613
Net position - December 31 $51,797,892 $48,279,906 $100,077,798
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
35
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2018
333 G.O. 342 G.O.
Improvement Improvement
General Fund Note of 2009A Bonds of 2016B
Assets
Cash and investments $6,669,584 $ - $726,988
Accrued interest receivable 124,736 - -
Due from other governmental units 77,256 - -
Accounts receivable - net 30,894 - -
Prepaid items 286,186 - -
Advances to other funds - - -
Taxes receivable:
Due from county 96,116 - -
Delinquent 69,625 - -
Special assessments receivable:
Due from county - 1,418 -
Delinquent - - -
Deferred 106 2,100,886 2,994,379
Interfund loan receivable - - -
Long-term note receivable - - -
Total assets $7,354,503 $2,102,304 $3,721,367
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $218,936 $ - $450
Salaries payable 132,239 - -
Due to other governmental units 47,455 - -
Advances from other funds - 1,418 -
Contracts payable - - -
Interfund loan payable - - 2,876,643
Total liabilities 398,630 1,418 2,877,093
Deferred inflows of resources:
Unavailable revenue 69,731 2,100,886 2,994,379
Fund balance:
Nonspendable 286,186 - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned 6,599,956 - (2,150,105)
Total fund balance 6,886,142 0 (2,150,105)
Total liabilities, deferred inflows of $7,354,503 $2,102,304 $3,721,367
resources, and fund balance
The accompanying notes are an integral part of these financial statements.
36
Statement 3
485 Other Total
406 Area and 420 MSA 2018 Street Governmental Governmental
Unit Charge Construction Reconstruction Funds Funds
$8,164,676 $3,921,001 $6,400,371 $8,831,453 $34,714,073
- - - - 124,736
- - - - 77,256
24,575 - - 5,582 61,051
- - - 1,998 288,184
- 1,418 - 1,824 3,242
- - - 19,022 115,138
- - - 13,952 83,577
8,785 - - 32,846 43,049
27,768 - - 14,614 42,382
969,375 - - 504,587 6,569,333
- - - 3,095,946 3,095,946
- - - 225,000 225,000
$9,195,179 $3,922,419 $6,400,371 $12,746,824 $45,442,967
$31,538 $2,690 $83,410 $165,850 $502,874
- - - - 132,239
- - 46 44,933 92,434
- - - 1,824 3,242
9,698 - 1,016,836 80,095 1,106,629
- - - 778,413 3,655,056
41,236 2,690 1,100,292 1,071,115 5,492,474
997,143 - - 533,153 6,695,292
- - - 101,998 388,184
- - 4,788,701 5,035,554 9,824,255
- - - 182,613 182,613
8,156,800 3,919,729 511,378 6,607,745 19,195,652
- - - (785,354)3,664,497
8,156,800 3,919,729 5,300,079 11,142,556 33,255,201
$9,195,179 $3,922,419 $6,400,371 $12,746,824 $45,442,967
The accompanying notes are an integral part of these financial statements.
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38
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2018
Fund balance - total governmental funds (Statement 3) $33,255,201
Net position reported for governmental activities in the Statement of Net Position is
different because:
Certain assets used in governmental activities are not current financial resources and,
therefore, are not reported in the funds.
Capital assets 44,102,567
Net pension asset 164,913
Other long-term assets are not available to pay for current-period expenditures and
therefore, are reported as unavailable revenue in the funds:
Delinquent taxes receivable 83,577
Delinquent special assessments receivable 42,382
Deferred special assessments receivable 6,569,333
Long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the funds. Long-term liabilities at year end consist of:
Bonds and notes payable (23,941,025)
Unamortized bond premiums (527,800)
Unamortized bond discounts 15,987
Accrued interest payable (147,374)
Compensated absences payable (813,872)
Other post employment benefits (748,050)
Net pension liability (4,428,954)
Deferred outflows and inflows of resources related to pensions and OPEB are associated
with long-term liabilities that are not due and payable in the current period, and therefore,
are not reported in the funds. Balances at year end are:
Deferred outflows of resources 4,305,683
Deferred inflows of resources (6,134,676)
Net position of governmental activities (Statement 1)$51,797,892
39
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2018
333 G.O.342 G.O.
Improvement Improvement
General Fund Note of 2009A Bonds of 2016B
Revenues:
General property taxes $8,146,307 $ - $ -
Tax increment - - -
Licenses and permits 1,260,046 - -
Intergovernmental 651,993 - -
Special assessments 1,777 644,846 -
Charges for services 317,122 - -
Fines and forfeits 114,991 - -
Investment earnings 75,880 2,525 6,445
Miscellaneous 201,956 - -
Total revenues 10,770,072 647,371 6,445
Expenditures:
Current:
General government 1,927,378 - -
Public safety 4,536,585 - -
Public services 2,176,523 - -
Conservation of natural resources 199,026 - -
Community development 451,919 - -
Capital outlay:
General government 54,010 - -
Public safety 45,049 - -
Public services 16,853 - -
Debt service:
Principal - - 480,000
Interest and fiscal charges - - 22,225
Total expenditures 9,407,343 0 502,225
Revenues over (under) expenditures 1,362,729 647,371 (495,780)
Other financing sources (uses):
Transfers in - - 278,137
Transfers out (1,293,512)(647,371) -
Issuance of debt - - -
Bond premium - - -
Proceeds from sale of capital assets - - -
Total other financing sources (uses)(1,293,512)(647,371)278,137
Net change in fund balance 69,217 0 (217,643)
Fund balance - January 1 6,816,925 - (1,932,462)
Fund balance - December 31 $6,886,142 $0 ($2,150,105)
The accompanying notes are an integral part of these financial statements.
40
Statement 5
485 Other Total
406 Area and 420 MSA 2018 Street Governmental Governmental
Unit Charge Construction Reconstruction Funds Funds
$ - $ - $ - $1,607,231 $9,753,538
- - - 462,223 462,223
- - - - 1,260,046
- 2,801,307 - - 3,453,300
536,180 - - 823,167 2,005,970
264,957 - - 421,817 1,003,896
- - - 22,949 137,940
114,617 33,143 1,219 135,656 369,485
- - - 121,423 323,379
915,754 2,834,450 1,219 3,594,466 18,769,777
- - - 21,531 1,948,909
- - - 39,372 4,575,957
42,467 2,690 - 926,378 3,148,058
- - - - 199,026
- - - 120,991 572,910
- - - 189,798 243,808
- - - 182,479 227,528
327,393 - 2,006,051 647,575 2,997,872
- - - 2,650,600 3,130,600
- - - 415,434 437,659
369,860 2,690 2,006,051 5,194,158 17,482,327
545,894 2,831,760 (2,004,832) (1,599,692) 1,287,450
38,000 647,371 510,159 2,792,773 4,266,440
(407,022) (402,776) - (1,273,614) (4,024,295)
295,000 - 6,620,000 303,900 7,218,900
28,773 - 372,420 - 401,193
- - - 49,391 49,391
(45,249) 244,595 7,502,579 1,872,450 7,911,629
500,645 3,076,355 5,497,747 272,758 9,199,079
7,656,155 843,374 (197,668) 10,869,798 24,056,122
$8,156,800 $3,919,729 $5,300,079 $11,142,556 $33,255,201
The accompanying notes are an integral part of these financial statements.
41
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 6
EXPENDITURES AND CHANGES IN FUND BALANCE OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2018
Net change in fund balance - total governmental funds (Statement 5)$9,199,079
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 the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense:
Capital outlay 3,469,208
Depreciation (2,940,774)
Various other transactions involving capital assets increase (decrease) net position on
the Statement of Activities, but are not reported in governmental funds because they
do not provide (or use) current financial resources:
Contributions of infrastructure from private sources 1,690,433
Contributions of infrastructure to business-type activities (714,515)
Miscellaneous other differences related to capital assets (12,812)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Change in delinquent taxes receivable 13,930
Change in delinquent special assessments receivable 24,102
Change in deferred special assessments receivable (1,364,050)
The issuance of long-term debt provides current financial resources to governmental
funds, while repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effects of bond premiums
and discounts when the debt is first issued, whereas amounts are deferred and amortized
over the life of the debt in the Statement of Activities.
Bonds and notes issued (7,218,900)
Bond premium received (401,193)
Repayment of principal 3,130,600
Amortization of bond premiums and discounts 12,898
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds. Expenses reported in the Statement of Activities include the effects of the
changes in these expense accruals as follows:
Change in accrued interest payable 10,154
Change in compensated absences payable (44,964)
Change other post employment benefits liability and related deferred inflows of resources (6,066)
Pension expense in governmental funds is measured by current year employee contributions.
Pension expense in the Statement of Activities is measured by the change in the net pension
liability and related deferred inflows and outflows of resources. This is the amount by which
pension expense ($353,072) differed from pension contributions ($688,216).335,144
Change in net position of governmental activities (Statement 2)$5,182,274
The accompanying notes are an integral part of these financial statements.
42
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 7
PROPRIETARY FUNDS
December 31, 2018
601 Water 602 Sewer Total
Assets:
Current assets:
Cash and cash equivalents $6,022,044 $8,977,444 $14,999,488
Due from other governmental units - 1,982 1,982
Accounts receivable - net 150,405 215,893 366,298
Prepaid items 13,909 23,279 37,188
Inventory 39,898 - 39,898
Total current assets 6,226,256 9,218,598 15,444,854
Noncurrent assets:
Interfund loan receivable - 559,110 559,110
Capital assets:
Construction in progress 818,359 804,673 1,623,032
Equipment 154,909 333,754 488,663
Water and sewer systems 25,796,237 24,042,195 49,838,432
Total capital assets 26,769,505 25,180,622 51,950,127
Less: Allowance for depreciation (9,296,553) (9,944,495) (19,241,048)
Net capital assets 17,472,952 15,236,127 32,709,079
Total assets 23,699,208 25,013,835 48,713,043
Deferred outflows of resources related to pensions 30,953 30,953 61,906
Total assets and deferred outflows 23,730,161 25,044,788 48,774,949
Liabilities:
Current liabilities:
Accounts payable 28,110 33,294 61,404
Salaries payable 4,952 4,952 9,904
Due to other governments 8,453 2,952 11,405
Other accrued liabilities 3,110 1,964 5,074
Compensated absences payable - current portion 14,146 14,146 28,292
Total current liabilities 58,771 57,308 116,079
Noncurrent liabilities:
Compensated absences payable - noncurrent portion 2,293 2,293 4,586
Other post employment benefits 4,297 4,297 8,594
Net pension liability 135,272 135,272 270,544
Total noncurrent liabilities 141,862 141,862 283,724
Total liabilities 200,633 199,170 399,803
Deferred inflows of resources related to pensions 47,620 47,620 95,240
Total liabilities and deferred inflows 248,253 246,790 495,043
Net position:
Investment in capital assets 17,472,952 15,236,127 32,709,079
Unrestricted 6,008,956 9,561,871 15,570,827
Total net position $23,481,908 $24,797,998 $48,279,906
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
43
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2018
601 Water 602 Sewer Totals
Operating revenues:
Charges for services $1,122,136 $1,721,958 $2,844,094
Hook-up charges 40,030 31,754 71,784
Water meter sales 50,518 - 50,518
Other operating revenue 4,905 - 4,905
Total operating revenues 1,217,589 1,753,712 2,971,301
Operating expenses:
Personal services 270,608 275,907 546,515
Materials and supplies 205,025 35,821 240,846
Contractual services 140,187 132,250 272,437
MCES sewer charges - 949,776 949,776
Depreciation 597,571 495,856 1,093,427
Utilities 105,453 45,775 151,228
Other 13,911 29,086 42,997
Total operating expenses 1,332,755 1,964,471 3,297,226
Operating income (loss)(115,166)(210,759)(325,925)
Nonoperating revenues:
Investment earnings 82,783 130,651 213,434
Income (loss) before contributions and transfers (32,383)(80,108)(112,491)
Contributions and transfers:
Capital contributions from private sources 487,444 754,588 1,242,032
Capital contributions from governmental activities 405,283 309,232 714,515
Transfer out - (242,145)(242,145)
Total contributions and transfers 892,727 821,675 1,714,402
Change in net position 860,344 741,567 1,601,911
Net position - January 1 22,621,564 24,056,431 46,677,995
Net position - December 31 $23,481,908 $24,797,998 $48,279,906
Capital
Contributions Transfers - Net
Amounts reported above $1,956,547 ($242,145)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (714,515)714,515
Amounts reported on the statement of activities $1,242,032 $472,370
CHANGES IN FUND NET POSITION
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS Statement 9
PROPRIETARY FUNDS
For The Year Ended December 31, 2018
601 Water 602 Sewer Totals
Cash flows from operating activities:
Receipts from customers and users $1,224,192 $1,757,400 $2,981,592
Payment to suppliers (461,280) (1,171,306) (1,632,586)
Payment to employees (289,518) (294,817) (584,335)
Net cash flows provided by operating activities 473,394 291,277 764,671
Cash flows from noncapital financing activities:
Receipts from interfund loans - 355,839 355,839
Transfers out - (242,145) (242,145)
Net cash flows provided by
noncapital financing activities - 113,694 113,694
Cash flows from capital and related financing activities:
Acquisition of capital assets (11,479)(2,530) (14,009)
Cash flows from investing activities:
Investment earnings 82,783 130,651 213,434
Net increase in cash and cash equivalents 544,698 533,092 1,077,790
Cash and cash equivalents - January 1 5,477,346 8,444,352 13,921,698
Cash and cash equivalents - December 31 $6,022,044 $8,977,444 $14,999,488
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)($115,166) ($210,759) ($325,925)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation 597,571 495,856 1,093,427
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units - (368)(368)
Decrease (increase) in accounts receivable - net 6,603 4,056 10,659
Decrease (increase) in prepaid items (4,654)(5,452) (10,106)
Decrease (increase) in inventory (9,530) - (9,530)
Decrease (increase) in deferred outflows of resources 17,606 17,606 35,212
Increase (decrease) in payables 17,659 27,458 45,117
Increase (decrease) in other accrued liabilities (179)(604)(783)
Increase (decrease) in compensated absences (16,839) (16,839) (33,678)
Increase (decrease) in other post employment benefits 57 57 114
Increase (decrease) in net pension liability (33,877) (33,877) (67,754)
Increase (decrease) in deferred inflows of resources 14,143 14,143 28,286
Total adjustments 588,560 502,036 1,090,596
Net cash provided by operating activities $473,394 $291,277 $764,671
Noncash investing, capital and financing activities:
Contributions of capital assets $892,727 $1,063,820 $1,956,547
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
45
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 10
FIDUCIARY FUNDS
December 31, 2018
Assets:
Cash and investments $1,450,303
Liabilities:
Deposits payable $1,450,303
The accompanying notes are an integral part of these financial statements.
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes, Minnesota (the City) 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 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 significant accounting policies:
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity include those of the City (the primary
government) and its component units. The component units discussed below are included in the City’s
reporting entity because of the significance of their operational or financial relationships with the City.
COMPONENT UNITS
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component units have been included in the financial report as 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 a part of the
City’s operation because the governing body is substantially 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 Development 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. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government and its
component units. 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 for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
business-type activity are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business-type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
The fund financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. The
emphasis of governmental and proprietary fund financial statements is on major individual
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 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 Note of 2009A Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt. The note
was used to finance improvement projects at the I-35E and County Road 14 interchange.
General Obligation Improvement Bonds of 2016B Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt.
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.
MSA Construction Fund accounts for the financing of future reconstruction of state aid eligible
streets.
2018 Street Reconstruction Fund accounts for street and utility improvements within the West
Shadow Lake Drive and LaMotte neighborhoods.
The City reports the following major proprietary funds:
The Water Fund accounts for customer water service charges which are used to finance water
system operating expenses.
The Sewer Fund accounts for customer sewer service charges which are used to finance sanitary
sewer system operating expenses.
Additionally, the City reports the following fund type:
Agency funds account for assets held as an agent for individuals, private organizations and other
governmental units. 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 financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. 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
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
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. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
City considers all revenues, except reimbursement grants, to be available if they are collected within 60
days of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
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 revenues of
the water and sewer 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 accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and the Program
Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. Budgeted
amounts are reported as originally adopted and as amended by the City Council. 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 at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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
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 be
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.
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
authorized investments. Investment income is allocated to individual funds on the basis of the fund's
equity in the cash and investment pool.
Investments are stated at fair value, except for investments in external investment pools that meet
GASB 79 requirements, which are stated at amortized cost. Interest earnings are accrued at year-end.
For purposes of the Statement of Cash Flows, the proprietary funds consider 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.
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 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 government-wide financial statements, the City recognizes property tax revenue in the
period for which taxes were levied. Uncollectible property taxes are not material and have not been
reported.
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 received by the City in July, December, and the following January are
recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to
the City the following January) are classified as due from county. Taxes not collected by the county by
December 31 are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset
by deferred inflows of resources because they are not available to finance current expenditures.
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.
H. 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.
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
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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.
Within the government-wide financial statements, the City recognizes special assessment revenue in the
period that the assessment roll was adopted by the City Council. Uncollectible special assessments are
not material and have not been reported.
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, deferred and special deferred assessments receivable in governmental funds are
completely offset by deferred inflows of resources.
I. INVENTORY
For governmental funds, the original cost of materials and supplies are recorded as expenditures at the
time of purchase. These funds do not maintain material amounts of inventories.
Inventories of the proprietary funds are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method.
J. PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditures/expenses at the time of consumption.
K. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. 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/expenses in the fund
that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Such advances are classified as “advances to/from other funds.” Long-
term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as “internal balances.” All other interfund transactions are
reported as transfers.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 are defined by the City
as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation. All
existing City infrastructure has been capitalized regardless of date placed in service.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed.
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 15 to 50 years for
infrastructure.
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 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 government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums
and discounts are amortized over the life of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
O. DEFINED BENEFIT PENSION PLANS
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been
determined on the same basis as they are reported by PERA, except that PERA’s fiscal year end is June
30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit
53
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow of resources
(expense) that time. The City has one item that qualifies for reporting in the category. It is the pension
related deferred outflows of resources reported in the government-wide Statement of Net Position and
the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position
that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue)
until that time. The City has pension and OPEB related deferred inflows of resources reported in the
government-wide Statement of Net Pension and the proprietary funds Statements of Net Position. The
City also has a type of item, which arises only under a modified accrual basis of accounting, that
qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in
the governmental funds balance sheet. The governmental funds report unavailable revenue from the
following sources: property taxes and special assessments not collected within 60 days from year-end.
Q. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and
corpus of any permanent fund.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by a
resolution approved by the City Council, and committed amounts cannot be used for any other
purpose unless the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended
use. 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 both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed. When committed, assigned
or unassigned resources are available for use, it is the City’s policy to use resources in the following
order: 1) committed 2) assigned and 3) unassigned.
54
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The City formally adopted a fund balances policy for the general fund. The policy establishes an
unassigned fund balance range of 40% - 50% of general fund operating expenditures.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not
covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit
risk. At December 31, 2018, the bank balance of the City’s deposits was insured by the FDIC or
covered by pledged collateral held in the City’s name.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated
“A” or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
d) General obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc. or Standard & Poor’s Corporation; and
f) Time deposits that are fully insured by the Federal Deposits Insurance Corporation.
At December 31, 2018, the carrying amount of the City’s deposits with financial institutions was
$4,714,688.
55
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
At December 31, 2018, the City had the following investments and maturities:
Fair Less
Investment Type Rating Value Than 1 1 - 3 3 - 6
Brokered certificates of deposit Not rated $21,764,879 $5,281,248 $13,223,194 $3,260,437
Municipal bonds * 11,895,760 3,630,158 6,205,751 2,059,851
Federal Home Loan Mortgage Corp. AAA 1,481,550 - - 1,481,550
4M fund Not rated 9,227,709 9,227,709 - -
First American Gov't Obligation fund AAAm 1,478,455 1,478,455 - -
Invesco Gov't & Agency fund AAAm 599,883 599,883 - -
Total $46,448,236 $20,217,453 $19,428,945 $6,801,838
* AAA $1,627,686; AA+ $1,671,406 Total investments $46,448,236
AA $3,908,093; AA- $3,851,826 Deposits 4,714,688
A+ $228,655; A $608,094 Petty cash 940
Total cash and investments $51,163,864
Investment Maturities (in Years)
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business-type (Statement 1) $49,713,561
Fiduciary (Statement 10) 1,450,303
Total $51,163,864
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using
inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or
indirectly. Level 3 investments are valued using inputs that are unobservable.
57
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The City has the following recurring fair value measurements at December 31, 2018:
Investment Type 12/31/2018 Level 1 Level 2 Level 3
Investments at fair value:
Brokered certificates of deposit $21,764,879 $ - $21,764,879 $ -
Municipal bonds 11,895,760 - 11,895,760 -
Federal Home Loan Mortgage Corp. 1,481,550 - 1,481,550 -
$0 $35,142,189 $0
Investments not categorized:
4M fund 9,227,709 `
First American Gov't Obligation fund 1,478,455
Invesco Gov't & Agency fund 599,883
Total investments $46,448,236
Fair Value Measurement Using
The 4M fund is an external investment pool investment which is regulated by Minnesota Statutes and
the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
Statement No. 79. The 4M Plus fund requires funds to be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest
on the amount withdrawn.
The First American Government Obligation money market fund and the Invesco Government &
Agency money market fund are external investment pools. Each fund seeks to maintain a constant net
asset value (NAV) of $1 per share. The securities held by each fund are valued on the basis of
amortized cost. Shares may be redeemed without penalty on any business day.
C. INVESTMENT RISKS
Custodial Credit Risk – Investments – For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s
investment policy requires its brokers be licensed with the appropriate federal and state agencies. A
minimum capital requirement of $5,000,000 and at least five years of operation is mandatory.
Investments in securities are held by the City’s broker-dealers. The securities at each broker-dealer are
insured $500,000 through SIPC. Each broker-dealer has provided additional protection by providing
additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s
accounts.
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.
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Credit Risk – Credit risk is the risk than 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.
Concentration of Credit Risk – Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government’s investment in a single issuer. The City places no limit on the amount
it may invest in any one issuer. At December 31, 2018, no individual investments exceeded 5% of the
City’s total investment portfolio.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2018 are as
follows:
Property Special
Taxes Assessments Notes
Receivable Receivable Receivable Total
Major Funds:
General Fund $43,378 $ - $ - $43,378
G.O. Improvement Note of 2009A - 2,076,882 - 2,076,882
G.O. Improvement Bonds of 2016B - 2,994,379 - 2,994,379
Area and Unit Charge - 884,651 - 884,651
Nonmajor Funds 8,692 435,924 225,000 669,616
Total $52,070 $6,391,836 $225,000 $6,668,906
59
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 4 UNAVAILABLE REVENUE
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds are as follows:
Property Special
Taxes Assessments
Receivable Receivable Total
Major Funds:
General Fund $69,625 $106 $69,731
G.O. Improvement Note of 2009A - 2,100,886 2,100,886
G.O. Improvement Bonds of 2016B - 2,994,379 2,994,379
Area and Unit Charge - 997,143 997,143
Nonmajor Funds 13,952 519,201 533,153
Total $83,577 $6,611,715 $6,695,292
60
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2018 was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $3,320,059 $ - $ - $ - $3,320,059
Wetland credits 162,372 13,117 (8,265) - 167,224
Construction in progress 2,482,238 3,653,869 (1,826,135) (714,515) 3,595,457
Total capital assets, not being depreciated 5,964,669 3,666,986 (1,834,400) (714,515) 7,082,740
Capital assets, being depreciated:
Buildings 10,921,748 378,911 - - 11,300,659
Office equipment and furniture 783,626 86,190 (8,266) - 861,550
Vehicles 4,344,818 315,814 (103,778) - 4,556,854
Machinery and shop equipment 2,557,317 235,298 (84,670) - 2,707,945
Other equipment 1,111,410 85,048 - - 1,196,458
Infrastructure 85,882,657 2,306,583 - - 88,189,240
Total capital assets, being depreciated 105,601,576 3,407,844 (196,714)0 108,812,706
Less accumulated depreciation for:
Buildings 4,545,737 379,490 - - 4,925,227
Office equipment and furniture 546,849 52,256 (8,266) - 590,839
Vehicles 2,328,463 352,988 (69,786) - 2,611,665
Machinery and shop equipment 1,423,693 183,067 (25,061) - 1,581,699
Other equipment 844,314 21,526 - - 865,840
Infrastructure 59,266,162 1,951,447 - - 61,217,609
Total accumulated depreciation 68,955,218 2,940,774 (103,113)0 71,792,879
Total capital assets being depreciated - net 36,646,358 467,070 (93,601)0 37,019,827
Governmental activities capital assets - net $42,611,027 $4,134,056 ($1,928,001) ($714,515) $44,102,567
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in progress $1,507,153 $1,242,031 ($1,840,667) $714,515 $1,623,032
Capital assets, being depreciated:
Machinery and shop equipment 474,654 14,009 - - 488,663
Water and sewer systems 47,997,765 1,840,667 - - 49,838,432
Total capital assets, being depreciated 48,472,419 1,854,676 0 0 50,327,095
Accumulated depreciation for:
Machinery and shop equipment 307,215 19,910 - - 327,125
Water and sewer systems 17,840,406 1,073,517 - - 18,913,923
Total accumulated depreciation 18,147,621 1,093,427 0 0 19,241,048
Total capital assets being depreciated - net 30,324,798 761,249 0 0 31,086,047
Business-type activities capital assets - net $31,831,951 $2,003,280 ($1,840,667) $714,515 $32,709,079
61
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $396,284
Public safety 326,006
Public services 2,217,634
Conservation of natural resources 850
Total depreciation expense - governmental activities $2,940,774
Business-type activities:
Water $597,571
Sewer 495,856
Total depreciation expense - business-type activities $1,093,427
62
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 6 LONG-TERM DEBT
The City issues general obligation bonds and certificates of indebtedness to provide funds for the acquisition and
construction of major capital facilities and equipment. City indebtedness at December 31, 2018 consisted of the
following:
Final
Issue Maturity Interest Original Payable
Date Date Rate Issue 12/31/18
Governmental activities:
General Obligation Bonds:
2015B Certificates of Indebtedness 08/25/15 12/31/20 1.50% 963,000 398,000
2016A Certificates of Indebtedness 02/01/16 12/31/19 1.00% 469,000 158,000
2017A Certificates of Indebtedness 03/01/17 12/31/20 1.00% 311,000 209,000
2018A Certificates of Indebtedness 02/01/18 12/31/21 1.00% 303,900 303,900
G.O. TIF Bonds, Series 2007A 07/15/07 02/01/24 4.00% - 4.125% 4,215,000 1,435,000
G.O. Refunding Bonds, Series 2012A 11/15/12 02/01/24 1.00% - 2.00%2,015,000 1,040,000
G.O. Bonds, Series 2015A 08/01/15 02/01/31 2.00% - 3.00% 3,095,000 2,710,000
EDA Lease Revenue Bonds, Series 2015B 10/01/15 04/01/36 2.00% - 3.00% 4,350,000 4,015,000
G.O. Utility Revenue Bonds, Series 2016A 11/23/16 02/01/27 2.00% 1,420,000 1,290,000
G.O. Tax Abatement Refunding Bonds, Series 2016C 11/23/16 02/01/23 1.00% - 1.50% 1,600,000 1,375,000
G.O. Bonds, Series 2018A 12/19/18 02/01/34 3.00% - 5.00% 6,915,000 6,915,000
Total General Obligation Bonds 25,656,900 19,848,900
Special Assessment Bonds:
G.O. Imp & Utility Revenue Bonds, Series 2010A 07/09/10 02/01/20 2.00% - 3.00% 1,000,000 220,000
G.O. Improvement Bonds, Series, 2013A 07/15/13 02/01/24 1.25% - 4.00% 615,000 375,000
G.O. Improvement Bonds, Series 2014A 11/20/14 02/01/26 0.40% - 2.30% 2,645,000 1,800,000
G.O. Improvement Refunding Bonds, Series 2016B 11/23/16 02/01/21 0.875% - 1.50% 1,975,000 1,495,000
Total Special Assessment Bonds 6,235,000 3,890,000
G.O. Capital Note, Series 2016A 04/14/16 02/01/26 2.00% 294,525 202,125
Unamortized bond premiums 575,188 527,800
Unamortized bond discounts (38,362) (15,987)
Compensated absences payable N/A 813,872
Total Government Activities $32,723,251 $25,266,710
Business-Type Activities:
Compensated absences payable N/A $32,878
63
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2018:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:
General obligation bonds $14,714,250 $7,218,900 $2,084,250 $19,848,900 $1,747,900
Special assessment bonds 4,905,000 - 1,015,000 3,890,000 1,035,000
Total bonded debt 19,619,250 7,218,900 3,099,250 23,738,900 2,782,900
Capital note 233,475 - 31,350 202,125 32,175
Unamortized bond premiums 142,182 401,193 15,575 527,800 -
Unamortized bond discounts (18,664) - (2,677) (15,987) -
Compensated absences payable 768,908 634,743 589,779 813,872 497,161
Total governmental activities $20,745,151 $8,254,836 $3,733,277 $25,266,710 $3,312,236
Business-Type Activities:
Compensated absences payable $66,556 $33,311 $66,989 $32,878 $28,292
DESCRIPTIONS OF LONG-TERM DEBT
General Obligation Bonds – The bonds were issued for improvements or projects which benefited the City as a
whole and, therefore, are repaid from ad valorem levies.
Special Assessment Bonds – The 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.
Capital Note – This note was issued to fund the cost of the acquisition of capital equipment to be used by the
North Metro Telecommunications Commission in the operation of a cable communications system. The note
will be repaid from franchise fee revenue.
Utility 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.
64
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
DEBT SERVICE REQUIREMENTS
Future principal and interest payments required to retire long-term debt are as follows:
Years Ending
December 31 Principal Interest Principal Interest
2019 $2,782,900 $543,811 $32,175 $4,042
2020 2,696,000 600,599 33,000 3,399
2021 2,615,000 542,386 33,000 2,739
2022 1,830,000 483,876 33,825 2,079
2023 1,905,000 428,672 34,650 1,403
2024-2028 5,950,000 1,463,166 35,475 710
2029-2033 4,535,000 628,950 - -
2034-2036 1,425,000 61,438 - -
Total $23,738,900 $4,752,898 $202,125 $14,372
Bonded Debt Capital Note
It is not practicable to determine the specific year for payment of long-term compensated absences payable. For
governmental activities, compensated absences are liquidated by the General Fund. For business-type activities,
compensated absences are liquidated by the Water and Sewer Funds.
DEFERRED AD VALOREM TAX LEVIES – BONDED DEBT
All long-term bonded indebtedness is backed by the full faith and credit of the City, including special assessment
and revenue bond issues. General Obligation bond issues are financed by ad valorem tax levies and special
assessment bond issues 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.
The future scheduled tax levies are not shown as assets in the accompanying financial statements. Future
scheduled tax levies for all bonds outstanding at December 31, 2018 totaled $18,719,815.
65
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Remaining Principal Pledged
Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Pledge and Interest Paid Received
Certificates of Indebtedness Equipment purchases Ad valorem taxes 2016 - 2021 $1,091,430 $537,650 $562,872
2007A G.O. TIF Bonds Infrastructure improvements 2008 - 2023 $1,622,773 $252,126 $252,776
2011 - 2019 $226,750 $113,175 $113,281
2012A G.O. Bonds Infrastructure improvements 2013 - 2023 $1,083,433 $244,660 $193,492
2013A Improvement Bonds Infrastructure improvements Special assessments 2014 - 2023 $419,700 $74,460 $222,639
2014A Improvement Bonds Infrastructure improvements Special assessments 2015 - 2025 $1,894,869 $399,632 $402,403
2015A G.O. Bonds Infrastructure improvements Ad valorem taxes 2016 - 2030 $3,139,093 $258,262 $273,420
2015B EDA Lease Revenue Bonds Construction of a fire station Ad valorem taxes 2016 - 2035 $5,387,068 $300,888 $318,282
2016A Capital Note Cable communications equipment Franchise fees 2016 - 2025 $216,497 $36,019 $37,820
2016A Utility Revenue Bonds Water infrastructure improvements 2017 - 2026 $1,408,200 $157,100 $163,764
2016B Improvement Bonds Infrastructure improvements 2017 - 2020 $1,526,473 $501,575 $278,137
2016C G.O. Tax Abatement Bonds Infrastructure improvements Ad valorem taxes 2017 - 2022 $1,424,763 $244,150 $275,421
2018A G.O. Bonds Infrastructure improvements 2019-2033 $9,267,246 $ - $ - Ad valorem taxes, trunk
utility charges
Tax increment, MSA
funding via transfers
Ad valorem taxes,
special assessments
Special assessments, tax
increment
Trunk utility charges via
transfers
Revenue Pledged Current Year
2010A Improvement and Utility
Revenue Bonds
General and water infrastructure
improvements
Special assessments,
trunk utility charges
66
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 7 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.
1. 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 the Coordinated Plan. Coordinated Plan members are covered by Social Security.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, 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 1, 1999,
the PEPFF also covers police officers and firefighters belonging to local relief associations 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. 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.
1. GERF Benefits
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 members. Members hired prior to July 1, 1989, receive the
higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for Coordinated members is 1.2% for each of the first ten
years and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated Plan
members is 1.7% for all years of service. The accrual rates for former Minneapolis Employees
Retirement Fund (MERF) members is 2.0% for each of the first 10 years of service and 2.5% for
each additional year. For members hired prior to July 1, 1989 a full annuity is available when age
plus years of service equal 90 and normal retirement age is 65. For members hired on or after July
1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66.
Beginning January 1, 2019, benefit recipients will receive a future annual increase equal to 50
percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more
than 1.5 percent. For retirements on or after January 1, 2024, the first benefit increase is delayed
until the retiree reaches Normal Retirement Age (not applicable to Rule of 90 retirees, disability
benefit recipients, or survivors). A benefit recipient who has been receiving a benefit for at least
67
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
12 full months as of June 30 will receive a full increase. Members receiving benefits for at least
one month but less than 12 full months as of June 30 will receive a pro rata increase.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits
for PEPFF members first hired after June 30, 2014, vest on a prorated bases from 50% after ten
years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average
salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Beginning in 2019, the COLA will be fixed at 1 percent. Under funding measurements from 2017,
the 2.5 percent COLA trigger was never expected to occur and was subsequently removed from
law. Post retirement increases are given each year except for annuitants who have been receiving a
benefit for only 31 to 41 months. These annuitants will receive a prorated amount of the increase
on a sliding scale.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal
year 2018; the City was required to contribute 7.5% for Coordinated Plan members. The City
contributions to the GERF for the year ended December 31, 2018 were $202,526. The City
contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Legislation increased both employee and employer contribution rates in the Police and Fire Plan.
Employee rates increased from 10.80 percent of pay to 11.30 percent and employer rates increase
from 16.20 percent to 16.95 percent on January 1, 2019. On January 1, 2020 employee rates
increase to 11.80 percent and employer rates increase to 17.70 percent. The City contributions to
the PEPFF for the year ended December 31, 2018 were $420,821. The City contributions were
equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2018, the City reported a liability of $2,113,632 for its proportionate share of
GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State
of Minnesota’s contribution of $16 million to the fund in 2018. The State of Minnesota is
considered a non-employer contributing entity and the state’s contribution meets the definition of a
special funding situation. The State of Minnesota’s proportionate share of the net pension liability
associated with the City totaled $69,419. The net pension liability was measured as of June 30,
68
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
2018, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City’s proportion of the net pension liability was based on
the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2017 through June 30, 2018, relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2018, the City’s proportionate
share was 0.0381%, which was a decrease of 0.0033% from its proportionate share measured as of
June 30, 2017.
Post-retirement benefit increases were changed from 1.0% per year with a provision to increase to
2.5% upon attainment of 90% funding ratio to 50% of the Social Security Cost of Living
Adjustment, not less than 1.0% and not more than 1.5%, beginning January 1, 2019.
For the year ended December 31, 2018, the City recognized pension expense of $169,283 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$16,188 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $16 million to the GERF.
At December 31, 2018, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $55,944 $58,978
Changes in actuarial assumptions 193,160 237,489
Difference between projected and
actual investment earnings - 225,376
Changes in proportion 128,974 222,223
Contributions paid to PERA
subsequent to the measurement date 105,563 -
Total $483,641 $744,066
$105,563 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability during 2019. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2019 $32,999
2020 (118,211)
2021 (236,660)
2022 (44,116)
2023 -
Thereafter -
69
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
2. PEPFF Pension Costs
At December 31, 2018, the City reported a liability of $2,585,866 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2018 and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2017 through June 30, 2018, relative to the total employer contributions received from
all of PERA’s participating employers. At June 30, 2018, the City’s proportion was 0.2426%,
which was a decrease of 0.0144% from its proportion measured as of June 30, 2017. The City also
recognized $21,834 for the year ended December 31, 2018 as revenue (and an offsetting reduction
of net pension liability) for its proportionate share of the State of Minnesota’s on-behalf
contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
Beginning in January 1, 2019, the COLA will be fixed at 1 percent. Under funding measurements
from 2017, the 2.5 percent COLA trigger was never expected to occur and was subsequently
removed from law.
For the year ended December 31, 2018, the City recognized pension expense of $261,970 for its
proportionate share of the PEPFF’s pension expense.
At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $104,225 $620,175
Changes in actuarial assumptions 3,167,169 3,806,731
Difference between projected and
actual investment earnings - 560,207
Changes in proportion 307,549 439,714
Contributions paid to PERA
subsequent to the measurement date 227,348 -
Total $3,806,291 $5,426,827
A total of $227,348 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability during 2019. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as outflows:
70
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Year Ended Pension
December 31, Expense
2019 ($91,934)
2020 (204,554)
2021 (394,691)
2022 (1,060,238)
2023 (96,467)
Thereafter -
The net pension liability will be liquidated by the general, water and sewer funds.
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2018 actuarial valuation was determined using the following
actuarial assumptions:
GERF PEPFF
Inflation 2.50% per year 2.50% per year
Salary Growth 3.25% per year after 26 years of service 3.25% per year after 25 years of service
Investment rate of return 7.50%7.50%
The total pension liability for each of the defined benefit cost-sharing plans was determined by an actuarial
valuation as of June 30, 2018, using the entry age normal actuarial cost method. Inflation is assumed to be
2.50 percent for the General Employees Plan. Salary growth assumptions in the General Employees Plan
decrease in annual increments from 11.25 percent after one year of service, to 3.25 percent after 26 years of
service. In the Police and Fire Plan, salary growth assumptions decrease from 12.25 percent after one year
of service to 3.25 percent after 25 years of service.
Mortality rates for all plans are based on RP-2014 mortality tables. The tables are adjusted slightly to fit
PERA’s experience. Actuarial assumptions for the General Employees Plan are reviewed every four to six
years. The most recent six-year experience study for the General Employees Plan was completed in 2015.
The most recent four-year experience study for the Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions occurred in 2018:
General Employees Fund
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.0 percent per year through 2044 and 2.50
percent per year thereafter to 1.25 percent per year.
Police and Fire Fund
• The mortality projection scale was changed from MP-2016 to MP-2017.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method in
which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected future
71
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
rates of return by the target asset allocation percentages. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic stocks 36%5.10%
International stocks 17%5.30%
Bonds (fixed income)20%0.75%
Alternative assets (private markets)25%5.90%
Cash 2%0.00%
Totals 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows
used to determine the discount rate assumed that contributions from plan members and employees will
be made at the rate set in Minnesota statutes. Based on that assumption, the fiduciary net position of the
GERF and the PEPFF was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability $3,434,922 $2,113,632 $1,022,944
City's proportionate share of the
PEPFF net pension liability $5,544,259 $2,585,866 $139,398
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
72
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2018 is as follows:
GERF $185,471
PEPFF 261,970
Fire Pension Plan (Note 8)57,541
Total $504,982
Note 8 DEFINED BENEFIT PENSION PLAN – FIRE DIVISION
A. PLAN DESCRIPTION
The Lino Lakes Public Safety Department – Fire Division participates in the Statewide Volunteer
Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan
covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting
corporations that have elected to join the plan. At December 31, 2018 (measurement date), the plan
covered 24 active firefighters and zero vested terminated fire fighters whose pension benefits are
deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter
353G.
B. BENEFITS PROVIDED
The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and
survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per
year of service approved by the City of Lino Lakes. Members are eligible for a lump-sum retirement
benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting
schedule that increases from 5 years at 40% through 20 years at 100%.
C. CONTRIBUTIONS
The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as
specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed
$118,144 in fire state aid to the plan for the year ended December 31, 2018. Required employer
contributions are calculated annually based on statutory provisions. The City’s statutorily-required
contributions to the SVF plan for the year ended December 31, 2018 were $0. The City’s contributions
were equal to the required contributions as set by state statute, if applicable. In addition, the City made
voluntary contributions of $64,869 to the plan.
73
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
D. PENSION COSTS
At December 31, 2018, the City reported a net pension asset of $164,913 for the SVF plan. The net
pension asset was measured as of December 31, 2018. The total pension liability used to calculate the
net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula
to specific census data certified by the fire department. The following table presents the changes in net
pension liability during the year.
Plan Net
Total Fiduciary Pension
Pension Net Liability
Liability Position (Asset)
(a)(b)(a-b)
Beginning balance December 31, 2017 $97,711 $225,705 ($127,994)
Changes for the year:
Service cost 48,182 - 48,182
Interest on pension liability 8,754 - 8,754
Actuarial experience (gains) / losses 69,760 - 69,760
Projected investment earnings - 13,542 (13,542)
Contributions - employer - 64,869 (64,869)
Contributions - State of MN - 118,144 (118,144)
Asset (gain) / loss - (32,238)32,238
Benefit payouts - - -
PERA administrative fee - (702)702
Net changes 126,696 163,615 (36,919)
Balance end of year December 31, 2018 $224,407 $389,320 ($164,913)
There were no benefit provision changes during the measurement period.
For the year ended December 31, 2018, the City recognized pension expense of $57,541.
At December 31, 2018, the City reported deferred inflows of resources from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between projected and
actual investment earnings $21,849 $ -
Differences between expected and
actual economic experience 55,808 11,863
Total $77,657 $11,863
74
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year Ended Pension
December 31, Expense
2019 $13,444
2020 15,185
2021 16,767
2022 20,398
2023 -
Thereafter -
E. ACTUARIAL ASSUMPTIONS
The total pension liability at December 31, 2018, was determined using the entry age normal actuarial
cost method and the following actuarial assumptions:
Retirement eligibility at the later of age 50 or 20 years of service
Investment rate of return of 6.0%
Inflation rate of 3.0%
There were no changes in actuarial assumptions in 2018
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows
used to determine the discount rate assumed that contributions to the SVF plan will be made as
specified in statute. Based on that assumption and considering the funding ratio of the plan, the
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
75
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s net pension asset for the SVF plan, calculated using the discount rate
disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were
calculated using a discount rate 1% lower or 1% higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (5.0%) Discount Rate (6.0%) Discount Rate (7.0%)
Net pension asset $146,940 $164,913 $181,913
H. PLAN INVESTMENTS
1. Investment Policy
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota
Constitution to invest all state funds. Its membership as specified in the Constitution is comprised
of the Governor (who is designated as chair of the Board), State Auditor, Secretary of State and
State Attorney General.
All investments undertaken by the SBI are governed by the prudent person rule and other standards
codified in Minnesota Statutes, Chapter 11A and Chapter 353G.
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the
Investment Advisory Council, establishes investment policies for all funds under its control. These
investment policies are tailored to the particular needs of each fund and specify investment
objectives, risk tolerance, asset allocation, investment management structure and specific
performance standards. Studies guide the on-going management of the funds and are updated
periodically.
2. Asset Allocation
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset
allocation for the SVF that includes allocations to domestic equity, international equity, bonds and
cash equivalents. The long-term target asset allocation and long-term expected real rate of return is
the following:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic Stocks 35% 5.10%
International Stocks 15% 5.30%
Bonds 45% 0.75%
Cash 5% 0.00%
100%
The 6% long-term expected rate of return on pension plan investments was determined using a
building-block method. Best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using both long-term historical returns and
long-term capital market expectations from a number of investment management and consulting
76
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
organizations. The asset class estimates and the target allocations were then combined to produce a
geometric, long-term expected real rate of return for the portfolio. Inflation expectations were
applied to derive the nominal rate of return for the portfolio.
3. Description of Significant Investment Policy Changes During the Year
The SBI made no significant changes to their investment policy during fiscal year 2018 for the
Statewide Volunteer Firefighter Retirement Plan.
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the SVF plan’s fiduciary net position at June 30, 2018 is available in a
separately-issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained at www.mnpera.org.
Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Notes 7 and 8, the City provides post-
employment health care benefits, as defined in paragraph B, through its group health insurance plan
(the plan). The plan is a single-employer defined benefit OPEB plan administered by the City. The
authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and
299A.465. The benefits, benefit levels, employee contributions and employer contributions are
governed by the City and can be amended by the City through its personnel manual and collective
bargaining agreements with employee groups. No assets are accumulated in a trust that meets the
criteria in paragraph 4 of GASB Statement No. 75.
B. BENEFITS PROVIDED
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. 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.
The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty
in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal to the
employer portion of health insurance premiums that would have otherwise been paid if the officer or
firefighter was an active employee. During 2018, benefits were provided to one officer killed in the
line of duty.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in
which they participate. The premium is a blended rate determined on the entire active and retiree
population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those
77
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer
and the City’s plan becomes secondary.
C. PARTICIPANTS
As of the January 1, 2017 actuarial valuation, participants of the plan consisted of:
Active employees 46
Inactive employees or beneficiaries
currently receiving benefits 6
Total 52
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City’s total OPEB liability of $756,644 was measured as of December 31, 2018, and was
determined by an actuarial valuation as of January 1, 2017. Changes in the total OPEB liability during
2018 were:
Balance - beginning of year $746,540
Changes for the year:
Service cost 16,547
Interest 21,355
Changes of benefit terms -
Differences between expected and actual experience -
Changes in assumptions -
Benefit payments (27,798)
Net changes 10,104
Balance - end of year $756,644
The OPEB liability will be liquidated by the general, water and sewer funds.
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 3.50%
Salary increases 3.50%
Discount rate 2.85%
Investment rate of return 2.85%
Healthcare cost trend rates 8.00% for 2017, decreasing 1.00% per year to
an ultimate rate of 3.00% for 2022 and beyond
Retirees' share of benefit-related costs 100%
78
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of
return was based on the 20 year AA rated municipal bond rate as of November 22, 2017, obtained from
www.fmsbonds.com/market-yields.
Mortality rates were based on the SOA RP-2014 Total Dataset Mortality tables with Scale MP-2014 and
Improvement Scale BB.
Based on past experience of the plan, 90% of future retirees are assumed to continue medical coverage
until age 65. 50% of police/fire employees are assumed to retire at age 55, the balance at age 65. 50%
of other City employees are assumed to retire at age 62, the balance at age 65.
F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT
RATE
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using a discount rate that is 1% lower (1.85%) or 1% higher
(3.85%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.85%)(2.85%)(3.85%)
Total OPEB liability $841,593 $756,644 $681,860
G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE
COST TREND RATES
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower (7%
decreasing to 2%) or 1% higher (9% decreasing to 4%) than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(7% decreasing to 2%) (8% decreasing to 3%) (9% decreasing to 4%)
Total OPEB liability $671,431 $756,644 $855,544
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended December 31, 2018, the City recognized $33,979 of OPEB expense. At December
31, 2018, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience $0 $47,160
79
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended OPEB
December 31,Expense
2019 ($3,923)
2020 (3,923)
2021 (3,923)
2022 (3,923)
2023 (3,923)
Thereafter (27,545)
($47,160)
Note 10 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2018 as follows:
Fund Balance
Deficit
Major Funds:
G.O. Improvement Bonds of 2016B ($2,150,105)
Nonmajor Funds:
Tax Increment Financing 1-11 (782,682)
2040 Comp Plan Update (2,672)
The City intends to fund these deficits through future tax levies, special assessment collections, tax
increments, transfers from other funds, and various other sources.
80
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of departments within the General Fund that exceeded budget appropriations:
Final
Budget Actual Overage
General government:
Elections $30,640 $31,311 $671
Cable TV 2,500 2,728 228
Legal consultants 135,000 141,407 6,407
Government buildings 521,323 521,533 210
Public safety:
Building inspection 278,738 286,935 8,197
Public services:
Streets 883,161 888,558 5,397
Fleet 427,452 464,915 37,463
Parks 604,554 619,420 14,866
Recreation 214,486 220,483 5,997
Community development:
Economic development 100,827 104,270 3,443
Planning and zoning commission 134,852 136,816 1,964
Note 11 INTERFUND RECEIVABLES AND PAYABLES
Short-term advances to funds that have insufficient cash balances are classified as advances to/from other funds.
Long-term interfund loans are classified as interfund loan receivable/payable. A summary of interfund
receivables and payables at December 31, 2018 is as follows:
Receivable Payable
Short-term advances:
Major Funds:
G.O. Improvement Note of 2009A $ - $1,418
MSA Construction 1,418 -
Nonmajor Funds:
Closed Bond Fund 1,824 -
2040 Comp Plan Update - 1,824
$3,242 $3,242
Long-term interfund loans:
Major Funds:
G.O. Improvement Bonds of 2016B $ - $2,876,643
Sewer Fund 559,110 -
Nonmajor Funds:
Closed Bond Fund 778,413 -
Building and Facilities 2,317,533 -
Tax Increment Financing 1-11 - 778,413
$3,655,056 $3,655,056
81
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 12 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2018 are as follows:
Transfer In Transfer Out
Major Funds:
General Fund $ - $1,293,512
G.O. Improvement Note of 2009A - 647,371
G.O. Improvement Bonds of 2016B 278,137 -
Area and Unit Charge 38,000 407,022
MSA Construction 647,371 402,776
2018 Street Reconstruction 510,159 -
Sewer Fund - 242,145
Nonmajor governmental funds 2,792,773 1,273,614
Total $4,266,440 $4,266,440
During 2018, transfers were made to provide funding for capital improvement projects and capital outlay in
accordance with the City’s capital improvement plan. Transfers were also made to provide resources for debt
service payments, to close capital project funds and debt service funds, and to allocate financial resources to
funds that received benefit from services provided by another fund. These transfers are routine and consistent
with past practices.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 13 FUND BALANCE
At December 31, 2018, a summary of the governmental fund balance classifications is as follows:
G.O.Other
General Improvement Area and MSA 2018 Street Governmental
Fund Bonds of 2016B Unit Charge Construction Reconstruction Funds Total
Nonspendable:
Prepaid items $286,186 $ - $ - $ - $ - $1,998 $288,184
Corpus of permanent fund - - - - - 100,000 100,000
Total nonspendable 286,186 0 0 0 0 101,998 388,184
Restricted for:
Debt service - - - - - 3,740,709 3,740,709
Capital improvements - - - - 4,788,701 227,540 5,016,241
Economic development - - - - - 225,000 225,000
Blue Heron Days - - - - - 9,695 9,695
Narcotics and forfeiture funds - - - - - 204,357 204,357
K-9 Unit purposes - - - - - 37,189 37,189
Tax increment purposes - - - - - 557,211 557,211
Environmental purposes - - - - - 33,853 33,853
Total restricted 0 0 0 0 4,788,701 5,035,554 9,824,255
Committed for:
Recreation purposes - - - - - 18,497 18,497
Economic development - - - - - 89,541 89,541
Cable TV purposes - - - - - 74,575 74,575
Total committed 0 0 0 0 0 182,613 182,613
Assigned for:
Capital improvements - - 8,156,800 3,919,729 511,378 6,607,745 19,195,652
Unassigned 6,599,956 (2,150,105) - - - (785,354) 3,664,497
Total fund balance $6,886,142 ($2,150,105) $8,156,800 $3,919,729 $5,300,079 $11,142,556 $33,255,201
Note 14 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of
$4,744,742 and a net book value of $1,647,010, to New Creations Child Care and Learning Center, LLC. The lease is
dated July 1, 2014 and continues through June 30, 2019. As of December 31, 2018, future minimum lease payments
receivable in 2019 amount to $39,522. An agreement to extend the lease through June 30, 2029 is expected to be
signed during June 2019.
Note 15 TAX INCREMENT DISTRICTS
The City is the administrating authority for three 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.
83
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The following table reflects values at December 31, 2018:
TIF 1-5 TIF 1-11 TIF 1-12
Cottage TIF 1-10 Woods Clearwater
Homesteads Panattoni Edge Creek
Authorizing law M.S. 469 M.S. 469 M.S. 469 M.S. 469
Year established 1994 2004 2005 2006
Final year of district 2022 2023 2031 2026
Net tax capacity:
Original $128 $15,869 $25,291 $21,416
Current (payable 2018) 37,375 228,752 159,792 215,294
Captured - retained $37,247 $212,883 $134,501 $193,878
Note 16 COMMITMENTS AND CONTINGENCIES
A. LITIGATION
Existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance, of an immaterial amount, or, in the judgment of the City’s management, remotely
recoverable by plaintiffs.
B. 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, 2018.
C. COMMITTED CONTRACTS
At December 31, 2018, the City had commitments of $4,912,466 for uncompleted construction
contracts. In addition, the City has entered into construction contracts during 2019 totaling $1,790,574.
Note 17 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
84
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
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 18 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements:
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning
after December 15, 2019.
Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements. The provisions of this Statement are effective for reporting periods beginning after June 15,
2018.
Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Period. The
provisions of this Statement are effective for reporting periods beginning after December 15, 2019.
Statement No. 90 Majority Equity Interests. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2018.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 84 and Statement No. 87 may have a material impact.
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REQUIRED SUPPLEMENTARY INFORMATION
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REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
General propery taxes:
Current and delinquent $8,205,859 $7,132,701 $7,018,912 ($113,789)
Fiscal disparities - 1,058,158 1,126,142 67,984
Excess tax increments - - 1,253 1,253
Total general property taxes 8,205,859 8,190,859 8,146,307 (44,552)
Licenses and permits:
Business 130,515 149,515 163,235 13,720
Non-business 556,532 1,035,253 1,096,811 61,558
Total licenses and permits 687,047 1,184,768 1,260,046 75,278
Intergovernmental:
State:
Police state aid 224,660 254,660 256,885 2,225
OTS grant 74,546 14,000 14,395 395
MSA maintenance 240,000 260,000 261,197 1,197
Other 19,000 19,000 28,673 9,673
County solid waste grant 87,161 87,161 90,843 3,682
Total intergovernmental 645,367 634,821 651,993 17,172
Special assessments 9,000 4,000 1,777 (2,223)
Charges for services:
General government 15,571 22,071 16,860 (5,211)
Engineering and planning fees 15,000 27,000 37,065 10,065
Public safety 201,200 191,200 193,672 2,472
Public services 16,500 11,000 14,525 3,525
Investment management charge to other funds 50,000 50,000 55,000 5,000
Total charges for services 298,271 301,271 317,122 15,851
Fines and forfeits 134,132 120,600 114,991 (5,609)
Investment earnings 30,000 30,000 75,880 45,880
Miscellaneous:
Gas franchise fees 50,000 50,000 56,422 6,422
Building lease revenue 102,848 102,848 105,133 2,285
Refunds and reimbursements 50,000 50,000 31,153 (18,847)
Donations 5,000 500 500 -
Other 3,507 3,507 8,748 5,241
Total miscellaneous 211,355 206,855 201,956 (4,899)
Total revenues 10,221,031 10,673,174 10,770,072 96,898
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services 41,811 41,811 39,044 2,767
Other services and charges 20,000 17,000 18,629 (1,629)
Contractual services 17,500 17,500 17,433 67
Total mayor and city council 79,311 76,311 75,106 1,205
Elections:
Current:
Personal services 20,640 23,840 23,855 (15)
Supplies 5,400 5,600 6,170 (570)
Other services and charges 1,200 700 282 418
Contractual services - 500 1,004 (504)
Total elections 27,240 30,640 31,311 (671)
Administration:
Current:
Personal services 483,610 464,949 455,995 8,954
Other services and charges 20,360 18,360 23,609 (5,249)
Contractual services 7,959 7,959 4,619 3,340
Total administration 511,929 491,268 484,223 7,045
Finance:
Current:
Personal services 336,633 338,847 336,133 2,714
Supplies 1,000 1,000 776 224
Other services and charges 202,500 195,500 182,542 12,958
Contractual services 102,167 102,167 103,453 (1,286)
Total finance 642,300 637,514 622,904 14,610
Cable TV:
Current:
Personal services 2,500 2,500 2,728 (228)
Legal consultants:
Current:
Contractual services 135,000 135,000 141,407 (6,407)
Engineering/planning:
Current:
Contractual services 111,583 111,583 101,677 9,906
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
General government: (continued)
Charter commission:
Current:
Other services and charges 2,500 1,000 499 501
Government buildings:
Current:
Personal services 2,468 2,468 1,165 1,303
Supplies 40,546 38,546 34,233 4,313
Other services and charges 368,099 358,099 364,904 (6,805)
Contractual services 68,200 68,200 67,221 979
Capital outlay 11,000 54,010 54,010 -
Total government buildings 490,313 521,323 521,533 (210)
Total general government 2,002,676 2,007,139 1,981,388 25,751
Public safety:
Police:
Current:
Personal services 3,622,030 3,529,928 3,522,834 7,094
Supplies 35,825 35,825 26,195 9,630
Other services and charges 116,716 116,716 121,020 (4,304)
Contractual services 42,102 42,102 42,110 (8)
Capital outlay 17,602 17,602 17,596 6
Total police 3,834,275 3,742,173 3,729,755 12,418
Fire protection:
Current:
Personal services 500,003 467,344 439,336 28,008
Supplies 22,261 22,261 20,773 1,488
Other services and charges 47,405 47,405 47,050 355
Contractual services 30,851 30,851 30,332 519
Capital outlay 28,282 28,282 27,453 829
Total fire protection 628,802 596,143 564,944 31,199
Building inspection:
Current:
Personal services 242,670 264,343 277,136 (12,793)
Supplies 1,650 1,800 2,463 (663)
Other services and charges 8,920 9,270 7,271 1,999
Contractual services 3,325 3,325 65 3,260
Total building inspection 256,565 278,738 286,935 (8,197)
Total public safety 4,719,642 4,617,054 4,581,634 35,420
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REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Public services:
Streets:
Current:
Personal services 585,569 589,161 606,651 (17,490)
Supplies 149,302 119,302 105,513 13,789
Other services and charges 102,600 102,600 85,328 17,272
Contractual services 63,000 62,400 81,368 (18,968)
Capital outlay 9,698 9,698 9,698 -
Total streets 910,169 883,161 888,558 (5,397)
Fleet:
Current:
Personal services 123,552 124,328 129,039 (4,711)
Supplies 165,427 154,927 186,852 (31,925)
Other services and charges 66,042 66,042 74,581 (8,539)
Contractual services 76,000 76,000 68,288 7,712
Capital outlay 7,655 6,155 6,155 -
Total fleet 438,676 427,452 464,915 (37,463)
Parks:
Current:
Personal services 490,689 493,704 452,144 41,560
Supplies 25,500 25,500 20,422 5,078
Other services and charges 40,650 40,650 80,371 (39,721)
Contractual services 43,700 43,700 65,483 (21,783)
Capital outlay 1,000 1,000 1,000 -
Total parks 601,539 604,554 619,420 (14,866)
Recreation:
Current:
Personal services 241,291 195,186 203,979 (8,793)
Supplies 2,500 2,500 83 2,417
Other services and charges 15,800 15,800 16,141 (341)
Contractual services 1,000 1,000 280 720
Total recreation 260,591 214,486 220,483 (5,997)
Total public services 2,210,975 2,129,653 2,193,376 (63,723)
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REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Conservation of natural resources:
Forestry:
Current:
Personal services 37,153 37,408 37,177 231
Supplies 2,950 2,950 2,859 91
Other services and charges 380 380 354 26
Contractual services 20,000 20,000 20,287 (287)
Total forestry 60,483 60,738 60,677 61
Environmental:
Current:
Personal services 51,413 51,663 47,181 4,482
Supplies 1,000 700 221 479
Other services and charges 8,950 8,450 5,176 3,274
Contractual services 1,100 1,100 931 169
Total environmental 62,463 61,913 53,509 8,404
Solid waste abatement:
Current:
Personal services 54,561 54,776 52,255 2,521
Supplies 1,400 1,400 2,239 (839)
Other services and charges 14,700 14,700 8,659 6,041
Contractual services 16,500 16,500 21,687 (5,187)
Total solid waste abatement 87,161 87,376 84,840 2,536
Total conservation of natural resources 210,107 210,027 199,026 11,001
Community development:
Community development:
Current:
Personal services 203,861 204,110 204,532 (422)
Supplies 100 100 49 51
Other services and charges 7,900 7,900 5,627 2,273
Contractual services 900 900 625 275
Total community development 212,761 213,010 210,833 2,177
Economic development:
Current:
Personal services 21,627 14,627 13,277 1,350
Other services and charges 90,500 85,500 90,298 (4,798)
Contractual services 700 700 695 5
Total economic development 112,827 100,827 104,270 (3,443)
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REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Planning and zoning commission:
Current:
Personal services 104,693 105,402 105,516 (114)
Supplies 200 200 30 170
Other services and charges 16,250 16,250 11,991 4,259
Contractual services 38,000 13,000 19,279 (6,279)
Total planning and zoning commission 159,143 134,852 136,816 (1,964)
Total community development 484,731 448,689 451,919 (3,230)
Other:
Contingency 100,000 - - -
Total expenditures 9,728,131 9,412,562 9,407,343 5,219
Revenues over (under) expenditures 492,900 1,260,612 1,362,729 102,117
Other financing sources (uses):
Transfers out (1,217,900) (1,292,900) (1,293,512)(612)
Total other financing sources (uses)(1,217,900) (1,292,900) (1,293,512)(612)
Net change in fund balance ($725,000) ($32,288) 69,217 $101,505
Fund balance - January 1 6,816,925
Fund balance - December 31 $6,886,142
93
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
For The Year Ended December 31, 2018
2018 2017
Total OPEB liability:
Service cost $16,547 $16,990
Interest 21,355 22,542
Changes of benefit terms - -
Differences between expected and actual experience - (51,083)
Changes in assumptions - -
Benefit payments (27,798)(31,536)
Net change in total OPEB liability 10,104 (43,087)
Total OPEB liability - beginning 746,540 789,627
Total OPEB liability - ending $756,644 $746,540
Covered-employee payroll $3,240,932 $3,499,836
Total OPEB liability as a percentage of covered-employee payroll 23.3%21.3%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is intended to
show a ten year trend. Additional years will be added as they become available.
94
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2018
City's City's
Proportionate Proportionate Plan
State's Share of the Share of the Fiduciary
Proportionate Net Pension Net Net
Share Liability Pension Position
City's City's (Amount) and the State's Liability as a
Proportionate Proportionate of the Net Proportionate as a Percentage
Share Share (Amount) Pension Share of the Net Percentage of the
Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability of its Total
Date Ending the Net Pension Pension Associated Associated with Covered Covered Pension
June 30, December 31, Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability
2015 2015 0.0410%$2,124,883 $ - $2,124,883 $2,407,426 88.3%78.2%
2016 2016 0.0387%3,142,248 41,033 3,183,281 2,401,546 132.6% 68.9%
2017 2017 0.0414%2,642,949 33,230 2,676,179 2,666,880 100.3% 75.9%
2018 2018 0.0381%2,113,632 69,419 2,183,051 2,563,053 85.2%79.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
95
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2018
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered
December 31,(a)Contribution (b) (a-b)(c)Payroll (b/c)
2015 $182,102 $182,102 $ - $2,428,027 7.5%
2016 193,684 193,684 - 2,582,452 7.5%
2017 192,510 192,510 - 2,566,800 7.5%
2018 202,526 202,526 - 2,700,347 7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
96
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2018
Proportionate Share
Proportionate of the Net Pension Plan Fiduciary
Proportion Share (Amount) Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage
Date Ending the Net Pension Pension Covered Covered of the Total
June 30, December 31, Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
2015 2015 0.2490%$2,829,223 $2,284,973 123.8%86.6%
2016 2016 0.2590%10,394,121 2,495,778 416.5%63.9%
2017 2017 0.2570%3,469,806 2,643,314 131.3%85.4%
2018 2018 0.2426%2,585,866 2,556,951 101.1%88.8%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
97
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2018
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered
December 31,(a)Contribution (b) (a-b)(c)Payroll (b/c)
2015 $393,551 $393,551 $ - $2,429,327 16.2%
2016 424,970 424,970 - 2,623,271 16.2%
2017 416,665 416,665 - 2,572,006 16.2%
2018 420,821 420,821 - 2,597,660 16.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
98
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2018
Fiscal year ending and measurement date December 31, 2018 December 31, 2017
Total pension liability:
Service cost $48,182 $47,952
Interest on pension liability 8,754 6,191
Changes of benefit terms - -
Differences between expected and actual experience 69,760 (11,672)
Changes of assumptions - -
Benefit payments, including refunds of employee contributions - -
Net change in total pension liability 126,696 42,471
Total pension liability - beginning 97,711 55,240
Total pension liability - ending (a)$224,407 $97,711
Plan fiduciary net position:
Contributions - employer $64,869 $58,800
Contributions - State of Minnesota 118,144 113,797
Net investment income (18,696)9,153
Benefit payments, including refunds of employee contributions - -
Administrative expense (702)(572)
Net change in plan fiduciary net position 163,615 181,178
Plan fiduciary net position - beginning 225,705 44,527
Plan fiduciary net position - ending (b)$389,320 $225,705
Net pension liability/(asset) - ending (a) - (b)($164,913)($127,994)
Plan fiduciary net position as a percentage of the total pension liability 173%231%
Covered payroll N/A N/A
Net pension liability as a percentage of covered employee payroll N/A N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does
not meet the definition of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
99
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 18
SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2018
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered-Employee
December 31,(a)Contribution (b)(a-b)(c)Payroll (b/c)
2016 $ - $44,394 ($44,394) N/A N/A
2017 - 58,800 (58,800) N/A N/A
2018 - 64,869 (64,869) N/A N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does not
meet the defintion of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
100
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2018
Note A LEGAL COMPLIANCE – BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
Note B OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay
related benefits. There are no factors that affect trends in the amounts reported, such as changes of benefit
terms or assumptions.
Note C PENSION INFORMATION
PERA – General Employees Retirement Fund
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year
thereafter to 1.25% per year.
2017 Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and
60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for
active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested
deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
101
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2018
PERA – Public Employees Police and Fire Fund
2018 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes in Actuarial Assumptions:
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience study.
The net effect is proposed rates that average 0.34 percent lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent for non-
vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond
the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00%
per year through 2064 and 2.50% thereafter.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Single Employer – Fire Division
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only three years reported in the RSI, there is no additional information to include in the
notes.
102
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS AND SCHEDULES
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104
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
PERMANENT FUNDS
Permanent Funds account for financial resources that are legally restricted to the extent that only
earnings, and not the principal, may be used for purposes that support the City’s programs.
The City maintains one permanent fund – the Environment and Stewardship Fund. This fund
accounts for the use of funds received for environmental maintenance and improvements in the
Foxborough area, as well as funds received for the Preserve area.
105
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET Statement 19
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2018
Permanent
Fund Total
Environment and Nonmajor
Special Debt Capital Stewardship Governmental
Revenue Service Project Fund Funds
Assets
Cash and investments $447,105 $3,729,473 $4,521,022 $133,853 $8,831,453
Accounts receivable - net - - 5,582 - 5,582
Prepaid items 1,998 - - - 1,998
Advances to other funds - - 1,824 - 1,824
Taxes receivable:
Due from county - 18,909 113 - 19,022
Delinquent - 12,096 1,856 - 13,952
Special assessments receivable:
Due from county - 31,047 1,799 - 32,846
Delinquent - 1,273 13,341 - 14,614
Deferred - 252,296 252,291 - 504,587
Interfund loan receivable - - 3,095,946 - 3,095,946
Long-term note receivable 225,000 - - - 225,000
Total assets $674,103 $4,045,094 $7,893,774 $133,853 $12,746,824
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $13,251 $900 $151,699 $ - $165,850
Due to other governments - 37,820 7,113 - 44,933
Advances from other funds - - 1,824 - 1,824
Contracts payable - - 80,095 - 80,095
Interfund loan payable - - 778,413 - 778,413
Total liabilities 13,251 38,720 1,019,144 0 1,071,115
Deferred inflows of resources:
Unavailable revenue - 265,665 267,488 - 533,153
Fund balance:
Nonspendable 1,998 - - 100,000 101,998
Restricted 476,241 3,740,709 784,751 33,853 5,035,554
Committed 182,613 - - - 182,613
Assigned - - 6,607,745 - 6,607,745
Unassigned - - (785,354) - (785,354)
Total fund balance 660,852 3,740,709 6,607,142 133,853 11,142,556
Total liabilities, deferred inflows
of resources, and fund balance $674,103 $4,045,094 $7,893,774 $133,853 $12,746,824
106
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 20
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2018
Permanent
Fund Total
Environment and Nonmajor
Special Debt Capital Stewardship Governmental
Revenue Service Project Fund Funds
Revenues:
General property taxes $ - $1,607,139 $92 $ - $1,607,231
Tax increment - - 462,223 - 462,223
Special assessments - 643,196 179,971 - 823,167
Charges for services 132,137 - 289,680 - 421,817
Fines and forfeits 22,949 - - - 22,949
Investment earnings 7,154 46,694 79,921 1,887 135,656
Miscellaneous 58,384 37,820 16,569 8,650 121,423
Total revenues 220,624 2,334,849 1,028,456 10,537 3,594,466
Expenditures:
Current:
General government - - 21,531 - 21,531
Public safety 37,318 - 2,054 - 39,372
Public services 79,352 - 847,026 - 926,378
Community development 611 - 120,380 - 120,991
Capital outlay:
General government - - 189,798 - 189,798
Public safety 119,378 - 63,101 - 182,479
Public services 67,247 - 580,328 - 647,575
Debt service:
Principal - 2,650,600 - - 2,650,600
Interest and fiscal charges - 412,423 3,011 - 415,434
Total expenditures 303,906 3,063,023 1,827,229 0 5,194,158
Revenues over (under) expenditures (83,282) (728,174) (798,773) 10,537 (1,599,692)
Other financing sources (uses):
Transfers in 612 793,040 1,999,121 - 2,792,773
Transfers out - (547,956) (725,658) - (1,273,614)
Issuance of debt - - 303,900 - 303,900
Proceeds from sale of capital assets 3,631 - 45,760 - 49,391
Total other financing sources (uses)4,243 245,084 1,623,123 0 1,872,450
Net change in fund balance (79,039) (483,090) 824,350 10,537 272,758
Fund balance - January 1 739,891 4,223,799 5,782,792 123,316 10,869,798
Fund balance - December 31 $660,852 $3,740,709 $6,607,142 $133,853 $11,142,556
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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.
Program Recreation – established to account for various self-supporting recreational
programs.
Economic Development Authority – established to account for the receipt and uses of
funds for economic development purposes.
Cable TV Fund – established to account for activities relating to Cable TV.
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 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 for activities associated with the receipt and use
of DUI forfeitures.
Other Forfeitures – established to account for activities associated with the receipt and
use of other forfeitures
K-9 Unit – accounts for donations received by the City which are restricted for K-9 Unit
purposes.
109
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2018
203
201 Economic
Program Development
Recreation Authority
Assets
Cash and investments $22,948 $89,541
Prepaid items 1,744 -
Long-term note receivable - 225,000
Total assets $24,692 $314,541
Liabilities and Fund Balance
Liabilities:
Accounts payable $4,451 $ -
Fund balance:
Nonspendable 1,744 -
Restricted - 225,000
Committed 18,497 89,541
Total fund balance 20,241 314,541
Total liabilities and fund balance $24,692 $314,541
110
Statement 21
Total
Nonmajor
Special
204 Cable 205 Blue 206 Federal 207 State 208 DUI 209 Other 211 K-9 Revenue
TV Fund Heron Days Narcotics Narcotics Forfeitures Forfeitures Unit Funds
$77,044 $9,695 $132,310 $23,837 $53,667 $874 $37,189 $447,105
- 254 - - - - - 1,998
- - - - - - - 225,000
$77,044 $9,949 $132,310 $23,837 $53,667 $874 $37,189 $674,103
$2,469 $ - $1,235 $4,911 $ - $185 $ - $13,251
- 254 - - - - - 1,998
- 9,695 131,075 18,926 53,667 689 37,189 476,241
74,575 - - - - - - 182,613
74,575 9,949 131,075 18,926 53,667 689 37,189 660,852
$77,044 $9,949 $132,310 $23,837 $53,667 $874 $37,189 $674,103
111
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2018
203
201 Economic
Program Development
Recreation Authority
Revenues:
Charges for services $68,090 $ -
Fines and forfeits - -
Investment earnings 309 1,289
Miscellaneous 1,557 -
Total revenues 69,956 1,289
Expenditures:
Current:
Public safety - -
Public services 54,379 -
Community development - 611
Capital outlay:
Public safety - -
Public services - -
Total expenditures 54,379 611
Revenues over (under) expenditures 15,577 678
Other financing sources (uses):
Transfers in - 612
Proceeds from sale of capital assets - -
Total other financing sources (uses)0 612
Net change in fund balance 15,577 1,290
Fund balance - January 1 4,664 313,251
Fund balance - December 31 $20,241 $314,541
112
Statement 22
Total
Nonmajor
Special
204 Cable 205 Blue 206 Federal 207 State 208 DUI 209 Other 211 K-9 Revenue
TV Fund Heron Days Narcotics Narcotics Forfeitures Forfeitures Unit Funds
$64,047 $ - $ - $ - $ - $ - $ - $132,137
- - 3,687 5,890 12,032 1,340 - 22,949
1,812 137 2,526 353 723 5 - 7,154
- 19,638 - - - - 37,189 58,384
65,859 19,775 6,213 6,243 12,755 1,345 37,189 220,624
- - 19,303 14,584 2,775 656 - 37,318
7,983 16,990 - - - - - 79,352
- - - - - - - 611
- - 118,104 - 1,274 - - 119,378
67,247 - - - - - - 67,247
75,230 16,990 137,407 14,584 4,049 656 0 303,906
(9,371) 2,785 (131,194) (8,341) 8,706 689 37,189 (83,282)
- - - - - - - 612
- - - 3,631 - - - 3,631
0 0 0 3,631 0 0 0 4,243
(9,371) 2,785 (131,194) (4,710) 8,706 689 37,189 (79,039)
83,946 7,164 262,269 23,636 44,961 - - 739,891
$74,575 $9,949 $131,075 $18,926 $53,667 $689 $37,189 $660,852
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DEBT SERVICE FUNDS
Debt Service Funds are used to 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 and Notes – 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 Note – this note was issued to finance cable communications equipment and will
be repaid from revenues derived from franchise fees.
115
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2018
334 G.O.
332 G.O. Improvement 336 G.O.
315 TIF and Utility 335 G.O. Improvement
Certificates Bonds Bonds Bonds Bonds
of Indebtedness of 2007A of 2010A of 2012A of 2013A
Assets
Cash and investments $210,223 $149,696 $ - $263,837 $426,587
Taxes receivable:
Due from county 6,634 - - 2,074 -
Delinquent 4,363 - - 1,380 -
Special assessments receivable:
Due from county - - - - 12,303
Delinquent - - - - -
Deferred - - 231 - 252,065
Total assets $221,220 $149,696 $231 $267,291 $690,955
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $ -
Due to other governments - - - - -
Total liabilities 00000
Deferred inflows of resources:
Unavailable revenue 4,363 - 231 1,380 252,065
Fund balance:
Restricted 216,857 149,696 - 265,911 438,890
Total liabilities, deferred inflows of
resources, and fund balance $221,220 $149,696 $231 $267,291 $690,955
116
Statement 23
339 EDA 341 G.O. 343 G.O. Total
337 G.O. Lease 340 G.O. Utility Tax Nonmajor
Improvement 338 G.O. Revenue Capital Revenue Abatement Debt
Bonds Bonds Bonds Note Bonds Bonds Service
of 2014A of 2015A of 2015B of 2016A of 2016A of 2016C Funds
$1,162,052 $593,905 $280,071 $38,410 $261,726 $342,966 $3,729,473
- 3,212 3,739 - - 3,250 18,909
- 1,913 2,226 - - 2,214 12,096
18,744 - - - - - 31,047
1,273 - - - - - 1,273
- - - - - - 252,296
$1,182,069 $599,030 $286,036 $38,410 $261,726 $348,430 $4,045,094
$ - $ - $ - $ - $450 $450 $900
- - - 37,820 - - 37,820
0 0 0 37,820 450 450 38,720
1,273 1,913 2,226 - - 2,214 265,665
1,180,796 597,117 283,810 590 261,276 345,766 3,740,709
$1,182,069 $599,030 $286,036 $38,410 $261,726 $348,430 $4,045,094
117
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2018
334 G.O.
331 G.O. 332 G.O. Improvement
315 CIP TIF and Utility 335 G.O.
Certificates of Bonds Bonds Bonds Bonds
Indebtedness of 2006E of 2007A of 2010A of 2012A
Revenues:
General property taxes $562,872 $1,260 $ - $ - $175,884
Special assessments 91 85 - 247 17,608
Investment earnings 5,320 9,016 - - 2,611
Miscellaneous - - - - -
Total revenues 568,283 10,361 0 247 196,103
Expenditures:
Debt service:
Principal 519,250 425,000 190,000 105,000 230,000
Interest and fiscal charges 18,400 8,900 62,776 8,875 18,460
Total expenditures 537,650 433,900 252,776 113,875 248,460
Revenues over (under) expenditures 30,633 (423,539) (252,776) (113,628) (52,357)
Other financing sources (uses):
Transfers in - - 252,776 113,034 -
Transfers out - (547,956) - - -
Total other financing sources (uses)0 (547,956) 252,776 113,034 0
Net change in fund balance 30,633 (971,495)0 (594) (52,357)
Fund balance - January 1 186,224 971,495 149,696 594 318,268
Fund balance - December 31 $216,857 $0 $149,696 $0 $265,911
118
Statement 24
339 EDA 341 G.O. 343 G.O. Total
336 G.O. 337 G.O. Lease 340 G.O. Utility Tax Nonmajor
Improvement Improvement 338 G.O. Revenue Capital Revenue Abatement Debt
Bonds Bonds Bonds Bonds Note Bonds Bonds Service
of 2013A of 2014A of 2015A of 2015B of 2016A of 2016A of 2016C Funds
$ - $ - $273,420 $318,282 $ - $ - $275,421 $1,607,139
222,639 402,403 34 40 - - 49 643,196
4,658 13,020 4,660 2,708 337 1,507 2,857 46,694
- - - - 37,820 - - 37,820
227,297 415,423 278,114 321,030 38,157 1,507 278,327 2,334,849
60,000 370,000 195,000 170,000 31,350 130,000 225,000 2,650,600
15,160 30,332 63,962 131,538 6,470 27,750 19,800 412,423
75,160 400,332 258,962 301,538 37,820 157,750 244,800 3,063,023
152,137 15,091 19,152 19,492 337 (156,243) 33,527 (728,174)
- 130,224 127,289 5,953 - 163,764 - 793,040
- - - - - - - (547,956)
0 130,224 127,289 5,953 0 163,764 0 245,084
152,137 145,315 146,441 25,445 337 7,521 33,527 (483,090)
286,753 1,035,481 450,676 258,365 253 253,755 312,239 4,223,799
$438,890 $1,180,796 $597,117 $283,810 $590 $261,276 $345,766 $3,740,709
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CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds. The City maintained the following nonmajor Capital
Project Funds during the year:
Closed Bond Fund – to account for excess funds from matured bond issues.
Building and Facilities – to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving – to account for proceeds from Equipment Certificates and
funds held to purchase capital equipment.
Office Equipment Revolving – to account for the receipt and use of funds for office
equipment purchases.
Dedicated Parks – to account for the receipts and use of monies collected from park
dedication fees.
Tax Increment Financing Funds – to account for development projects financed with tax
increments.
Street Maintenance – to account for money received from levies, assessments, and
developer charges for future street maintenance projects.
Surface Water Management – to account for the financing of surface water management
and storm water improvements.
Street Reconstruction – to account for the financing of future reconstruction of City
streets.
Surface Water Maintenance – to account for surface water maintenance activities.
Park and Trail Improvements – to account for park and trail improvement activities.
Birch Street / Centerville Road Improvements – this fund accounts for activities relating
to the construction of street improvements and sanitary sewer in conjunction with Fire
House #2.
2040 Comp Plan Update – this fund accounts for the financing sources received and
expenditures incurred to update the City’s 2040 Comprehensive Plan.
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122
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 25
NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2
December 31, 2018
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Assets
Cash and investments $223,139 $197,518 $502,823 $40,998 $254,652
Accounts receivable - net - 5,582 - - -
Advances to other funds 1,824 - - - -
Taxes receivable:
Due from county 113 - - - -
Delinquent 1,856 - - - -
Special assessments receivable:
Due from county - - - - -
Delinquent 7,408 - - - -
Deferred 22,073 - - - -
Interfund loan receivable 778,413 2,317,533 - - -
Total assets $1,034,826 $2,520,633 $502,823 $40,998 $254,652
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $2,500 $ - $ - $5,398
Due to other governments 3,103 - - - -
Advances from other funds - - - - -
Contracts payable - - - - 21,714
Interfund loan payable - - - - -
Total liabilities 3,103 2,500 0 0 27,112
Deferred inflows of resources:
Unavailable revenue 31,337 - - - -
Fund balance:
Restricted - - - - 227,540
Assigned 1,000,386 2,518,133 502,823 40,998 -
Unassigned - - - - -
Total fund balance 1,000,386 2,518,133 502,823 40,998 227,540
Total liabilities, deferred inflows of
resources, and fund balance $1,034,826 $2,520,633 $502,823 $40,998 $254,652
123
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2018
411 Tax 417 Tax 418 Tax 419 Tax
Increment Increment Increment Increment
Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12
Assets
Cash and investments $338,560 $192,815 $ - $82,857
Accounts receivable - net - - - -
Advances to other funds - - - -
Taxes receivable:
Due from county - - - -
Delinquent - - - -
Special assessments receivable:
Due from county - - - -
Delinquent - - - -
Deferred - - - -
Interfund loan receivable - - - -
Total assets $338,560 $192,815 $0 $82,857
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $1,548 $55,732
Due to other governments 405 460 2,721 424
Advances from other funds - - - -
Contracts payable - - - -
Interfund loan payable - - 778,413 -
Total liabilities 405 460 782,682 56,156
Deferred inflows of resources:
Unavailable revenue - - - -
Fund balance:
Restricted 338,155 192,355 - 26,701
Assigned - - - -
Unassigned - - (782,682) -
Total fund balance 338,155 192,355 (782,682)26,701
Total liabilities, deferred inflows of
resources, and fund balance $338,560 $192,815 $0 $82,857
124
Statement 25
Page 2 of 2
Total
421 422 Surface 424 Surface 425 484 2040 Nonmajor
Street Water 423 Street Water Park and Trail Comp Plan Capital
Maintenance Management Reconstruction Maintenance Improvements Update Project Funds
$336,403 $1,004,245 $740,543 $168,189 $438,280 $ - $4,521,022
- - - - - - 5,582
- - - - - - 1,824
- - - - - - 113
- - - - - - 1,856
- 1,799 - - - - 1,799
- 5,933 - - - - 13,341
- 163,296 66,922 - - - 252,291
- - - - - - 3,095,946
$336,403 $1,175,273 $807,465 $168,189 $438,280 $0 $7,893,774
$8,406 $76,358 $ - $909 $ - $848 $151,699
- - - - - - 7,113
- - - - - 1,824 1,824
- - - 58,381 - - 80,095
- - - - - - 778,413
8,406 76,358 0 59,290 0 2,672 1,019,144
- 169,229 66,922 - - - 267,488
- - - - - - 784,751
327,997 929,686 740,543 108,899 438,280 - 6,607,745
- - - - - (2,672) (785,354)
327,997 929,686 740,543 108,899 438,280 (2,672) 6,607,142
$336,403 $1,175,273 $807,465 $168,189 $438,280 $0 $7,893,774
125
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2018
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Revenues:
General property taxes $92 $ - $ - $ - $ -
Tax increment - - - - -
Special assessments 21,654 - - - -
Charges for services - 190,469 - - 89,275
Investment earnings 9,045 3,026 9,069 845 5,613
Miscellaneous - - 14,214 1,129 1,226
Total revenues 30,791 193,495 23,283 1,974 96,114
Expenditures:
Current:
General government 3,804 1,050 - 16,677 -
Public safety - - - 2,054 -
Public services - - - 1,294 -
Community development - - - 1,695 -
Capital outlay:
General government - 181,559 - 8,239 -
Public safety - - 63,101 - -
Public services - - 232,054 - 224,223
Debt service:
Interest and fiscal charges - - - - 3,011
Total expenditures 3,804 182,609 295,155 29,959 227,234
Revenues over (under) expenditures 26,987 10,886 (271,872) (27,985) (131,120)
Other financing sources (uses):
Transfers in 547,956 - - 25,000 50,000
Transfers out (186,967) - - - -
Issuance of debt - - 303,900 - -
Proceeds from sale of capital assets - - 45,760 - -
Total other financing sources (uses)360,989 0 349,660 25,000 50,000
Net change in fund balance 387,976 10,886 77,788 (2,985) (81,120)
Fund balance - January 1 612,410 2,507,247 425,035 43,983 308,660
Fund balance - December 31 $1,000,386 $2,518,133 $502,823 $40,998 $227,540
126
Statement 26
Page 1 of 2
411 Tax 417 Tax 418 Tax 419 Tax 421 422 Surface
Increment Increment Increment Increment Street Water 423 Street
Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Maintenance Management Reconstruction
$ - $ - $ - $ - $ - $ - $ -
44,245 163,085 115,052 139,841 - - -
- - - - - 134,547 23,770
- - - - 9,936 - -
4,455 3,726 - 295 7,407 15,094 10,499
- - - - - - -
48,700 166,811 115,052 140,136 17,343 149,641 34,269
- - - - - - -
- - - - - - -
- - - - 667,488 27,401 -
564 1,047 4,683 112,391 - - -
- - - - - - -
- - - - - - -
- - - - - 94,051 -
- - - - - - -
564 1,047 4,683 112,391 667,488 121,452 0
48,136 165,764 110,369 27,745 (650,145)28,189 34,269
- - - - 717,900 8,265 -
- (163,085) (115,052) - - (87,000) -
- - - - - - -
- - - - - - -
0 (163,085) (115,052)0 717,900 (78,735)0
48,136 2,679 (4,683)27,745 67,755 (50,546)34,269
290,019 189,676 (777,999)(1,044)260,242 980,232 706,274
$338,155 $192,355 ($782,682)$26,701 $327,997 $929,686 $740,543
127
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 26
EXPENDITURES AND CHANGES IN FUND BALANCE Page 2 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2018
Total
424 Surface 425 481 Birch St/ 484 2040 Nonmajor
Water Park and Trail Centerville Rd Comp Plan Capital
Maintenance Improvements Improvements Update Project Funds
Revenues:
General property taxes $ - $ - $ - $ - $92
Tax increment - - - - 462,223
Special assessments - - - - 179,971
Charges for services - - - - 289,680
Investment earnings 2,605 6,280 1,962 - 79,921
Miscellaneous - - - - 16,569
Total revenues 2,605 6,280 1,962 0 1,028,456
Expenditures:
Current:
General government - - - - 21,531
Public safety - - - - 2,054
Public services 119,545 - - 31,298 847,026
Community development - - - - 120,380
Capital outlay:
General government - - - - 189,798
Public safety - - - - 63,101
Public services - 30,000 - - 580,328
Debt service:
Interest and fiscal charges - - - - 3,011
Total expenditures 119,545 30,000 0 31,298 1,827,229
Revenues over (under) expenditures (116,940) (23,720)1,962 (31,298) (798,773)
Other financing sources (uses):
Transfers in 125,000 500,000 - 25,000 1,999,121
Transfers out - (38,000) (135,554) - (725,658)
Issuance of debt - - - - 303,900
Proceeds from sale of capital assets - - - - 45,760
Total other financing sources (uses)125,000 462,000 (135,554)25,000 1,623,123
Net change in fund balance 8,060 438,280 (133,592)(6,298)824,350
Fund balance - January 1 100,839 - 133,592 3,626 5,782,792
Fund balance - December 31 $108,899 $438,280 $0 ($2,672) $6,607,142
128
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION Statement 27
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Revenues:
Charges for services $100,610 $100,610 $68,090 ($32,520)
Investment earnings - - 309 309
Miscellaneous - - 1,557 1,557
Total revenues 100,610 100,610 69,956 (30,654)
Expenditures:
Public services:
Current:
Personal services 43,725 43,725 20,764 22,961
Supplies 40,980 40,980 20,545 20,435
Other services and charges - - 350 (350)
Contractual services 16,800 16,800 12,720 4,080
Capital outlay 500 500 - 500
Total expenditures 102,005 102,005 54,379 47,626
Revenues over (under) expenditures (1,395) (1,395) 15,577 16,972
Fund balance - January 1 4,664
Fund balance - December 31 $20,241
129
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 28
AGENCY FUNDS
For The Year Ended December 31, 2018
Balance Balance
January 1,December 31,
2018 Additions Deletions 2018
Assets:
Cash and investments $1,719,511 $268,409 $537,617 $1,450,303
Liabilities:
Deposits payable $1,719,511 $268,409 $537,617 $1,450,303
130
STATISTICAL SECTION (UNAUDITED)
131
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Governmental activities:
Net investment in capital assets $23,400,453 $22,562,217 $24,600,103 $22,166,342
Restricted 9,414,474 8,428,025 11,598,803 11,595,112
Unrestricted 15,926,322 16,738,885 13,463,210 17,639,038
Total governmental activities net position $48,741,249 $47,729,127 $49,662,116 $51,400,492
Business-type activities:
Net investment in capital assets $30,071,840 $29,648,461 $29,216,866 $28,798,095
Unrestricted 10,112,207 10,728,626 11,201,362 12,102,013
Total business-type activities net position $40,184,047 $40,377,087 $40,418,228 $40,900,108
Primary government:
Net investment in capital assets $53,472,293 $52,210,678 $53,816,969 $50,964,437
Restricted 9,414,474 8,428,025 11,598,803 11,595,112
Unrestricted 26,038,529 27,467,511 24,664,572 29,741,051
Total primary government net position $88,925,296 $88,106,214 $90,080,344 $92,300,600
GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability
and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
GASB 75 was implemented in 2017. Net position was restated for 2016 to reflect the reporting of the OPEB liability
and OPEB related deferred inflows of resources. Net position for years prior to 2016 was not restated.
132
Table 1
2013 2014 2015 2016 2017 2018
$22,241,821 $19,540,807 $18,230,746 $18,597,344 $22,868,259 $24,640,555
11,000,033 8,666,357 8,635,293 13,342,852 11,730,147 10,579,817
16,849,636 20,527,704 13,888,120 10,187,254 12,017,212 16,577,520
$50,091,490 $48,734,868 $40,754,159 $42,127,450 $46,615,618 $51,797,892
$28,423,284 $27,556,022 $29,127,829 $31,860,610 $31,831,950 $32,709,079
12,999,182 13,888,278 14,672,630 13,863,447 14,846,045 15,570,827
$41,422,466 $41,444,300 $43,800,459 $45,724,057 $46,677,995 $48,279,906
$50,665,105 $47,096,829 $47,358,575 $50,457,954 $54,700,209 $57,349,634
11,000,033 8,666,357 8,635,293 13,342,852 11,730,147 10,579,817
29,848,818 34,415,982 28,560,750 24,050,701 26,863,257 32,148,347
$91,513,956 $90,179,168 $84,554,618 $87,851,507 $93,293,613 $100,077,798
133
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Expenses
Governmental activities:
General government $2,201,439 $1,987,415 $1,990,137 $1,883,961
Public safety 4,299,366 3,971,261 4,019,101 4,046,415
Public services 5,341,113 5,092,970 9,329,451 6,795,150
Conservation of natural resources 215,607 197,571 139,544 184,051
Community development 1,005,997 1,105,254 617,747 430,121
Interest and fees on long-term debt 928,668 1,064,172 927,535 837,755
Total governmental activities expenses 13,992,190 13,418,643 17,023,515 14,177,453
Business-type activities:
Water 1,089,569 1,045,901 966,643 949,121
Sewer 1,432,107 1,466,847 1,638,063 1,527,637
Total business-type activities expenses 2,521,676 2,512,748 2,604,706 2,476,758
Total primary government expenses $16,513,866 $15,931,391 $19,628,221 $16,654,211
Program revenues
Governmental activities:
Charges for services:
General government $101,741 $98,403 $103,687 $129,151
Public safety 725,747 691,005 713,985 642,745
Public services 594,168 605,207 593,263 668,128
Conservation of natural resources 3,858 4,153 4,392 19,297
Community development 8,667 14,148 5,138 16,940
Operating grants and contributions 682,797 617,450 593,798 450,179
Capital grants and contributions 1,357,015 1,388,984 7,347,613 5,125,693
Total governmental activities program revenues 3,473,993 3,419,350 9,361,876 7,052,133
Business-type activities:
Charges for services:
Water 1,365,817 1,087,013 1,090,104 1,371,809
Sewer 1,502,164 1,498,218 1,494,188 1,505,781
Operating grants and contributions 62,710 - - -
Capital grants and contributions 8,769 8,709 1,462 20,018
Total business-type activities 2,939,460 2,593,940 2,585,754 2,897,608
Total primary government program revenues $6,413,453 $6,013,290 $11,947,630 $9,949,741
134
Table 2
Page 1 of 2
2013 2014 2015 2016 2017 2018
$1,566,388 $2,036,550 $2,016,351 $2,456,864 $2,395,633 $2,345,386
3,950,197 4,107,759 5,135,865 6,567,523 5,166,538 4,749,394
5,376,671 5,880,030 7,971,712 6,228,893 5,492,395 5,384,522
141,204 159,649 186,111 216,905 200,016 201,590
404,726 407,448 432,268 454,144 459,455 576,794
951,842 618,680 632,876 831,529 518,897 414,607
12,391,028 13,210,116 16,375,183 16,755,858 14,232,934 13,672,293
927,800 965,641 1,394,897 1,367,693 1,245,249 1,332,755
1,584,395 1,628,258 2,089,842 1,850,962 1,901,821 1,964,471
2,512,195 2,593,899 3,484,739 3,218,655 3,147,070 3,297,226
$14,903,223 $15,804,015 $19,859,922 $19,974,513 $17,380,004 $16,969,519
$93,118 $103,072 $818,468 $520,231 $550,117 $562,816
697,584 763,470 199,498 1,359,426 2,249,152 1,591,658
632,002 621,221 603,866 865,327 801,633 448,009
1,347 1,882 - - - -
28,118 39,395 - - - -
527,368 840,676 526,107 722,858 1,106,014 861,429
941,960 335,733 1,176,732 5,046,307 4,141,383 5,187,023
2,921,497 2,705,449 3,324,671 8,514,149 8,848,299 8,650,935
1,208,742 965,425 1,014,836 1,094,897 1,150,834 1,217,589
1,516,397 1,564,099 1,621,633 1,659,322 1,698,963 1,753,712
- 263,024 263,024 - - -
883 1,035 3,035,031 1,543,947 836,029 1,242,032
2,726,022 2,793,583 5,934,524 4,298,166 3,685,826 4,213,333
$5,647,519 $5,499,032 $9,259,195 $12,812,315 $12,534,125 $12,864,268
135
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Net (expense) revenue:
Governmental activities ($10,518,197) ($9,999,293) ($7,661,639) ($7,125,320)
Business-type activities 417,784 81,192 (18,952) 420,850
Total primary government, net (10,100,413) (9,918,101) (7,680,591) (6,704,470)
General revenues and other changes in net position:
Governmental activities:
Property taxes 9,808,324 8,764,183 8,768,805 8,610,709
Unrestricted grants and contributions 11,321 4,389 4,072 4,941
Unrestricted investment earnings 429,325 225,677 251,250 202,828
Gain on disposal of capital assets 12,644 - 37,579 4,175
Special item - withdrawal from fire district - - - -
Transfers (136,068)(7,078)66,122 41,043
Total governmental activities 10,125,546 8,987,171 9,127,828 8,863,696
Business-type activities:
Unrestricted investment earnings 228,747 104,770 126,215 102,073
Transfers 136,068 7,078 (66,122)(41,043)
Total business-type activities 364,815 111,848 60,093 61,030
Total primary government $10,490,361 $9,099,019 $9,187,921 $8,924,726
Change in net position:
Governmental activities ($392,651) ($1,012,122) $1,466,189 $1,738,376
Business-type activities 782,599 193,040 41,141 481,880
Total primary government change in net position $389,948 ($819,082) $1,507,330 $2,220,256
GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
GASB 75 was implemented in 2017. OPEB expense for years prior to 2017 was not restated.
136
Table 2
Page 2 of 2
2013 2014 2015 2016 2017 2018
($9,469,531) ($10,504,667) ($13,050,512) ($8,241,709) ($5,384,635) ($5,021,358)
213,827 199,684 2,449,785 1,079,511 538,756 916,107
(9,255,704) (10,304,983) (10,600,727) (7,162,198) (4,845,879) (4,105,251)
8,563,595 8,806,886 9,243,236 9,343,500 9,753,971 10,229,691
4,442 4,443 5,363 91,385 181,712 59,508
(54,204)265,695 112,961 210,142 207,792 369,485
- 1,727 17,836 66,255 38,022 17,318
- - - 1,333,166 - -
(353,304)69,294 66,834 (914,414)(308,694)(472,370)
8,160,529 9,148,045 9,446,230 10,130,034 9,872,803 10,203,632
(44,773)154,468 51,167 107,119 106,488 213,434
353,304 (69,294)(66,834)914,414 308,694 472,370
308,531 85,174 (15,667)1,021,533 415,182 685,804
$8,469,060 $9,233,219 $9,430,563 $11,151,567 $10,287,985 $10,889,436
($1,309,002) ($1,356,622) ($3,604,282) $1,888,325 $4,488,168 $5,182,274
522,358 284,858 2,434,118 2,101,044 953,938 1,601,911
($786,644) ($1,071,764) ($1,170,164) $3,989,369 $5,442,106 $6,784,185
137
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2009 2010 2011 2012
General Fund:
Reserved $196,568 $181,471 $ - $ -
Unreserved 5,191,396 5,445,334 - -
Nonspendable - - 165,079 180,786
Unassigned - - 5,440,101 5,053,031
Total general fund $5,387,964 $5,626,805 $5,605,180 $5,233,817
All other governmental funds:
Reserved reported in:
Special revenue funds $227,176 $227,342 $ - $ -
Capital projects funds 736,772 658,875 - -
Debt service funds 3,457,349 2,986,102 - -
Permanent funds 100,000 100,000 - -
Unreserved reported in:
Special revenue funds 93,956 110,471 - -
Capital projects funds 11,611,835 12,537,841 - -
Debt service funds (558,443) (1,093,765) - -
Permanent funds 15,824 12,676 - -
Nonspendable - - 906,010 823,113
Restricted - - 2,658,010 3,041,524
Committed - - 110,568 115,196
Assigned - - 10,808,268 15,573,179
Unassigned - - (3,154,496) (3,262,728)
Total all other governmental funds $15,684,469 $15,539,542 $11,328,360 $16,290,284
Total all funds $21,072,433 $21,166,347 $16,933,540 $21,524,101
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Information
for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
138
Table 3
2013 2014 2015 2016 2017 2018
$ - $ - $ - $ - $ - $ -
- - - - - -
176,797 253,471 220,677 225,114 243,317 286,186
5,209,286 5,053,064 5,725,736 6,031,077 6,573,608 6,599,956
$5,386,083 $5,306,535 $5,946,413 $6,256,191 $6,816,925 $6,886,142
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
101,710 101,302 101,177 101,220 101,659 101,998
3,651,550 2,830,526 2,637,638 6,502,424 5,289,641 9,824,255
121,075 152,078 163,239 170,950 175,401 182,613
15,710,702 18,027,773 15,022,852 15,778,480 14,581,669 19,195,652
(3,393,547)(375,851) (3,815,304)(978,496) (2,909,173) (2,935,459)
$16,191,490 $20,735,828 $14,109,602 $21,574,578 $17,239,197 $26,369,059
$21,577,573 $26,042,363 $20,056,015 $27,830,769 $24,056,122 $33,255,201
139
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2009 2010 2011 2012
Revenues:
Property taxes $9,561,570 $8,647,488 $8,655,971 $8,560,340
Licenses and permits 307,714 330,138 322,030 319,172
Intergovernmental 1,259,016 1,176,863 1,331,914 5,267,570
Special assessments 968,995 851,270 904,522 816,998
Charges for services 778,163 780,044 812,604 744,633
Fines and forfeits 111,807 127,203 154,020 155,956
Investment earnings 429,325 225,677 251,244 202,825
Miscellaneous 513,306 502,992 460,710 414,088
Total revenues 13,929,896 12,641,675 12,893,015 16,481,582
Expenditures:
Current:
General government 1,918,246 1,730,390 1,773,515 1,619,215
Public safety 4,122,352 3,798,106 3,791,329 3,861,265
Public services 3,071,646 2,848,232 3,251,923 4,396,406
Conservation of natural resources 209,466 185,232 134,122 176,318
Community development 1,005,095 1,098,682 624,286 435,154
Capital outlay 501,806 282,938 4,209,593 616,931
Debt service:
Principal 1,908,000 1,866,000 2,030,000 2,145,000
Interest and fiscal charges 994,809 1,042,883 983,129 831,875
Bond issuance costs - - - 47,054
Total expenditures 13,731,420 12,852,463 16,797,897 14,129,218
Excess (deficiency) of revenues over expenditures 198,476 (210,788) (3,904,882) 2,352,364
Other financing sources (uses):
Proceeds from sale of capital assets 35,700 20,600 50,953 4,175
Issuance of debt 4,596,000 1,170,000 120,000 2,165,000
Premium on bonds issued 11,141 10,980 - -
Payment to refunded bond escrow agent - (965,000) - -
Loan payable reapportionment - - (565,000) -
Transfers in 1,413,985 1,195,747 2,971,715 1,979,457
Transfers out (1,367,863) (1,127,625) (2,905,593) (1,910,435)
Total other financing sources (uses)4,688,963 304,702 (327,925) 2,238,197
Special item - withdrawal from fire district - - - -
Net change in fund balance $4,887,439 $93,914 ($4,232,807) $4,590,561
Debt service as a percentage of noncapital expenditures 21.9%23.1%23.9%22.0%
Debt service as a percentage of total expenditures 21.1%22.6%17.9%21.1%
140
Table 4
2013 2014 2015 2016 2017 2018
$8,475,214 $8,612,011 $8,950,507 $9,369,090 $9,772,741 $10,215,761
431,654 407,681 551,202 895,581 1,447,571 1,260,046
500,963 823,025 679,627 706,944 1,080,953 3,453,300
2,130,519 1,278,202 703,141 4,400,635 2,283,974 2,005,970
717,300 731,640 696,501 1,293,556 1,327,781 1,003,896
119,079 149,653 127,803 251,653 613,593 137,940
(53,466)265,794 112,915 210,142 207,792 369,485
384,749 767,477 766,072 417,448 410,640 323,379
12,706,012 13,035,483 12,587,768 17,545,049 17,145,045 18,769,777
1,569,722 1,692,175 1,643,966 1,845,667 1,952,669 1,948,909
3,744,957 3,845,732 11,895,482 4,333,080 4,360,517 4,575,957
3,956,766 4,156,497 4,779,696 3,203,837 3,414,412 3,148,058
134,127 149,292 191,038 201,635 183,392 199,026
418,533 402,750 422,935 425,402 433,144 572,910
291,135 674,488 1,566,057 3,044,615 2,152,848 3,469,208
2,214,000 3,664,000 2,802,511 2,769,525 8,058,525 3,130,600
774,172 696,780 542,166 816,362 640,029 437,659
17,137 - 62,831 98,906 - -
13,120,549 15,281,714 23,906,682 16,739,029 21,195,536 17,482,327
(414,537) (2,246,231) (11,318,914)806,020 (4,050,491)1,287,450
16,727 1,727 54,522 72,182 103,328 49,391
808,000 3,140,000 8,606,250 5,464,000 311,000 7,218,900
6,558 - 114,960 41,497 - 401,193
(435,000) - - - - -
- - - - - -
1,722,541 2,608,534 3,392,971 3,521,180 6,984,443 4,266,440
(1,650,817) (2,539,240) (3,336,137) (3,241,959) (7,122,927) (4,024,295)
468,009 3,211,021 8,832,566 5,856,900 275,844 7,911,629
- - - 1,111,834 - -
$53,472 $964,790 ($2,486,348) $7,774,754 ($3,774,647) $9,199,079
23.3%29.9%15.0%26.2%45.4%25.5%
22.8%28.5%14.0%21.4%41.0%20.4%
141
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY Table 5
Last Ten Fiscal Years
Estimated
Commercial/Total Taxable Taxable
Payable Residential Industrial Personal Assessed Total Direct Market
Year Property Property Property Value Tax Rate Value
2009 $18,919,087 $4,002,349 $275,496 $23,196,932 38.73 $2,102,473,000
2010 17,978,917 3,800,004 291,904 22,070,825 37.91 2,001,889,600
2011 16,214,698 3,223,901 303,964 19,742,563 42.04 1,804,121,500
2012 14,743,557 2,945,026 310,870 17,999,453 42.89 1,640,455,854
2013 13,693,905 2,571,769 336,047 16,601,721 46.77 1,519,857,242
2014 13,646,798 2,450,473 341,974 16,439,245 46.68 1,509,921,169
2015 15,455,516 2,536,783 347,316 18,339,615 43.77 1,694,366,064
2016 15,472,329 2,609,482 359,006 18,440,817 46.02 1,699,288,883
2017 16,480,328 2,767,099 396,378 19,643,805 45.14 1,808,417,118
2018 17,879,879 2,966,548 442,867 21,289,294 42.83 1,959,826,108
The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula
to the estimated market value of the property.
Source: Anoka County, Minnesota Assessors' Office
142
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
General Centennial Other Total Direct and
Fiscal Basic Obligation Total School District Anoka Taxing Total Overlapping
Year Rate Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate
2009 34.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015
2010 34.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258
2011 37.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966
2012 37.501 5.393 42.894 40.010 41.146 6.691 87.847 130.741
2013 40.964 5.810 46.774 43.681 44.411 6.940 95.032 141.806
2014 39.784 6.899 46.683 46.186 43.239 6.712 96.137 142.820
2015 37.819 5.951 43.770 36.562 38.123 6.021 80.706 124.476
2016 35.025 10.994 46.019 36.426 38.894 6.405 81.725 127.744
2017 35.105 10.035 45.140 29.097 36.841 5.810 71.748 116.888
2018 36.168 6.658 42.826 34.970 35.334 5.658 75.962 118.788
The majority of the City is serviced by School District 12. Rates for debt service are based on each year's requirements.
Source: Anoka County Property Records and Tax Division
City Direct Rate Overlapping Rates
143
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144
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Net Tax Net Tax Net Tax Net Tax
Taxpayer Capacity Rank Capacity Capacity Rank Capacity
Northern States Power Co $215,921 1 1.01% $141,737 6 0.61%
AX Lino Lakes LP 214,854 2 1.01% - - -
Target Corporation 213,550 3 1.00% 254,772 1 1.10%
WI MN AB BIYNAH LLC 197,948 4 0.93% - - -
Minnegasco Inc 122,120 5 0.57% - - -
Moline Concrete Products 113,220 6 0.53% 150,370 4 0.65%
Gargaro Properties LLC 112,006 7 0.53% - - -
Taylor Corporation 95,302 8 0.45% 132,706 8 0.57%
Kohl's Department Store 89,494 9 0.42% 140,438 7 0.61%
Marmon/Keystone Corp 77,612 10 0.36% - - -
Lino Lakes Realty LLC - - 242,114 2 1.04%
Marshall Investment Corp - - 164,371 3 0.71%
Lino Lakes Assisted Living LLC - - 147,060 5 0.63%
Royal Oaks Realty Inc - - 115,350 9 0.50%
F&G Incorporated - - 108,700 10 0.47%
Total $1,452,027 6.81% $1,597,618 6.89%
Source: Anoka County
2018 2009
145
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year Fiscal Year of Levy
Percentage
Fiscal Operating Debt Total Tax of
Year Tax Levy Tax Levy Levy Amount Levy
2009 $8,295,172 $949,166 $9,244,338 $8,982,756 97.2%
2010 7,816,232 879,182 8,695,414 8,400,439 96.6%
2011 7,719,240 940,760 8,660,000 8,486,845 98.0%
2012 7,192,818 1,034,441 8,227,259 8,095,502 98.4%
2013 7,190,538 1,025,090 8,215,628 8,094,911 98.5%
2014 7,098,922 1,197,122 8,296,044 8,229,986 99.2%
2015 7,490,578 1,195,494 8,686,072 8,630,830 99.4%
2016 7,018,572 2,039,856 9,058,428 9,022,964 99.6%
2017 7,360,431 2,131,424 9,491,855 9,439,688 99.5%
2018 8,165,859 1,610,873 9,776,732 9,729,472 99.5%
Current year levies and collections include State levy related credits, but do not include tax increment levies and collections.
146
Table 8
Total Collections to Date
Collections in Percentage Outstanding Percentage
Subsequent of Delinquent of Levy
Years Amount Levy Taxes Outstanding
$194,591 $9,177,347 99.3%$66,991 0.7%
183,009 8,583,448 98.7%111,966 1.3%
127,277 8,614,122 99.5%45,878 0.5%
78,564 8,174,066 99.4%53,193 0.6%
70,293 8,165,204 99.4%50,424 0.6%
42,280 8,272,266 99.7%23,778 0.3%
26,955 8,657,785 99.7%28,287 0.3%
9,740 9,032,704 99.7%25,724 0.3%
15,835 9,455,523 99.6%36,332 0.4%
- 9,729,472 99.5%47,260 0.5%
147
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Business-Type
Governmental Activities Activities
General
General Special Other Obligation
Fiscal Obligation Assessments Long-Term Revenue
Year Bonds Payable Debt Bonds
2009 $10,712,000 $10,265,000 $4,260,000 $1,170,000
2010 10,141,000 9,175,000 4,260,000 795,000
2011 9,421,000 7,985,000 3,695,000 405,000
2012 10,331,000 7,095,000 3,695,000 -
2013 9,610,000 5,975,000 3,695,000 -
2014 9,036,000 7,640,000 2,080,000 -
2015 16,377,291 6,620,000 1,720,000 -
2016 18,337,081 7,795,000 1,609,000 -
2017 14,837,768 4,905,000 233,475 -
2018 20,360,713 3,890,000 202,125 -
Details regarding the City'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 yet available for 2018 from the Bureau of Economic Analysis Report
148
Table 9
Total Percentage Percentage
Primary of Assessed of Personal Per
Government Market Value Income Capita
$26,407,000 1.24%3.44%$1,301
24,371,000 1.22%3.13%1,206
21,506,000 1.19%2.59%1,049
21,121,000 1.29%2.46%1,024
19,280,000 1.27%2.19%925
18,756,000 1.24%2.04%888
24,717,291 1.46%2.64%1,205
27,741,081 1.63%2.84%1,334
19,976,243 1.10%1.94%946
24,452,838 1.25%(1)1,111
149
CITY OF LINO LAKES, MINNESOTA
RATIOS OF NET GENERAL BONDED DEBT
Last Ten Fiscal Years
General Special Total
Fiscal Obligation Assessments Primary
Year Bonds Payable Government
2009 $10,712,000 $10,265,000 $20,977,000
2010 10,141,000 9,175,000 19,316,000
2011 9,421,000 7,985,000 17,406,000
2012 10,331,000 7,095,000 17,426,000
2013 9,610,000 5,975,000 15,585,000
2014 9,036,000 7,640,000 16,676,000
2015 16,377,291 6,620,000 22,997,291
2016 18,337,081 7,795,000 26,132,081
2017 14,837,768 4,905,000 19,742,768
2018 20,360,713 3,890,000 24,250,713
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for population data.
Governmental Activities
150
Table 10
Less: Amounts Percentage
Per Available in Debt Net of Assessed Per
Capita (Total)Service Funds Bonded Debt Market Value Capita (Net)
$1,033 $3,457,349 $17,519,651 0.83%$863
955 2,986,102 16,329,898 0.82%808
849 2,638,129 14,767,871 0.82%720
845 3,035,557 14,390,443 0.88%698
748 3,357,196 12,227,804 0.80%587
789 2,501,738 14,174,262 0.94%671
1,121 2,813,226 20,184,065 1.19%984
1,256 8,420,263 17,711,818 1.04%851
935 5,171,905 14,570,863 0.81%690
1,102 4,456,461 19,794,252 1.01%900
151
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
As of December 31, 2018
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Overlapping debt:
Anoka County $92,260,000 6.1%$5,591,225
ISD 12 90,587,065 43.7%39,541,274
ISD 624 85,805,000 3.0%2,610,748
ISD 831 163,990,000 7.0%11,496,804
Metropolitan Council 1,549,087,966 0.6%8,698,997
Rice Creek Watershed District 305,420 32.5%99,202
Anoka County Railroad Authority 22,995,000 6.1% 1,393,564
Total overlapping 69,431,814
City of Lino Lakes direct debt $24,452,838 100%24,452,838
Total direct and overlapping debt $93,884,652
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
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 borne 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.
Sources: taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
152
CITY OF LINO LAKES, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2018
Market value $1,959,826,108
Applicable percentage 3%
Debt limit 58,794,783
Debt applicable to limit:
Total bonded debt 24,452,838
Less:
Special assessment bonds (3,890,000)
Tax abatement bonds (1,375,000)
Tax increment bonds (1,435,000)
Utility revenue bonds (3,255,000)
14,497,838
Legal debt margin $44,296,945
Net Debt
Net Debt Legal Amount of Debt Applicable
Fiscal Debt Applicable to Debt Applicable to to Limit
Year Population Limit Limit Margin Debt Limit Per Capita
2009 20,305 $64,036,746 $3,642,000 $60,394,746 5.69% $179
2010 20,216 60,622,086 3,386,000 57,236,086 5.59% 167
2011 20,505 54,123,645 2,961,000 51,162,645 5.47% 144
2012 20,625 49,213,676 4,591,000 44,622,676 9.33% 223
2013 20,833 45,595,717 4,280,000 41,315,717 9.39% 205
2014 21,129 45,297,635 4,191,000 41,106,635 9.25% 198
2015 20,519 50,830,982 11,941,250 38,889,732 23.49% 582
2016 20,803 50,978,666 10,122,081 40,856,585 19.86% 487
2017 21,117 54,252,514 10,426,243 43,826,271 19.22% 494
2018 22,000 58,794,783 14,497,838 44,296,945 24.66% 659
Legal Debt Margin Calculation for Fiscal Years 2009 Through 2018
153
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13
Last Ten Fiscal Years
(2) (2)
Personal Per
Income Capita (3) (4)
Fiscal (1)(thousands Personal School Unemployment
Year Population of dollars)Income Enrollment Rate
2009 20,305 $768,341 $37,840 6,725 7.8%
2010 20,216 777,912 38,480 6,523 7.1%
2011 20,505 831,170 40,535 6,426 5.9%
2012 20,625 857,753 41,588 6,421 5.6%
2013 20,833 879,903 42,236 6,392 4.5%
2014 21,129 917,252 43,412 6,410 3.4%
2015 20,519 934,764 45,556 6,371 3.3%
2016 20,803 975,682 46,901 6,473 3.9%
2017 21,117 1,028,123 48,687 6,500 3.1%
2018 22,000 Not available Not available 6,707 3.9%
Sources:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census and 2016 which is a 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 (audit report).
(4) Information from MN Department of Employment and Economic Development. Anoka County statistics used as local
information is unavailable.
154
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS Table 14
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank
Employment(1)Employees Rank
Employment(1)
ISD 12 - Centennial Schools 931 1 34.9% - - -
State of Minnesota Corrections 478 2 17.9% 500 1 28.4%
Target Corporation 273 3 10.2% 271 2 15.4%
Molin Concrete Products 240 4 9.0% 179 4 10.2%
Curtis 1000 (AdGraphics/Taylor Corp 200 5 7.5% 190 3 10.8%
Kohls 120 6 4.5% - - -
YMCA 120 7 4.5% - - -
Distribution Alternatives 117 8 4.4% - - -
Rehbein Transit, Inc. 100 9 3.8% 120 7 6.8%
Anoka County Juvenile Center 86 10 3.2% 149 6 8.5%
Customer Manufacturing - - - 60 9 3.4%
Nol-Tech Systems, Inc. - - - 56 10 3.2%
City of Lino Lakes - - - 74 8 4.2%
Synovis Interventional Systems - - - 160 5 9.1%
Total 2,665 1,759
(1)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
Source: City of Lino Lakes Official Statements and employer surveys
2018 2009
155
CITY OF LINO LAKES, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2009 2010 2011 2012
General Government:
Administration 5.00 4.00 3.50 3.50
Seniors 0.63 0.63 - -
Finance 3.50 3.00 3.00 3.00
Economic Development 1.00 1.00 1.00 1.00
Planning 2.00 2.00 1.00 1.00
Community Development 2.75 2.25 2.00 2.00
Building 1.00 1.00 - -
Other 1.40 1.40 0.70 0.70
Total General Government 17.28 15.28 11.20 11.20
Public Safety:
Sworn Officers 27.00 27.00 25.00 25.00
Civilians 4.75 4.25 4.00 3.00
Fire - - - -
Building Inspection 4.25 2.75 2.50 2.50
Total Public Safety 36.00 34.00 31.50 30.50
Public Works:
Streets 7.35 6.85 7.00 7.00
Other 1.15 1.15 1.00 1.00
Total Public Works 8.50 8.00 8.00 8.00
Parks, Recreation and Forestry 9.80 9.30 9.00 9.00
Water 2.15 2.15 2.15 2.15
Sewer 2.15 2.15 2.15 2.15
Total 75.88 70.88 64.00 63.00
Source: City Finance Office
Full-Time-Equivalent Employees as of December 31,
156
Table 15
2013 2014 2015 2016 2017 2018
3.50 3.50 3.50 4.00 4.00 4.00
- - - - - -
3.00 3.00 3.00 3.50 3.50 3.50
- - - - - -
1.00 1.00 1.00 1.00 1.00 1.00
2.00 2.00 2.00 2.00 2.00 2.00
- - - - - -
0.70 0.70 0.70 0.65 0.65 0.65
10.20 10.20 10.20 11.15 11.15 11.15
25.00 25.00 26.00 27.00 27.00 27.00
3.00 4.00 4.00 4.50 4.50 4.00
- 1.00 1.00 1.50 1.50 1.50
2.50 2.00 2.00 2.50 2.50 2.50
30.50 32.00 33.00 35.50 35.50 35.00
7.00 7.00 7.00 6.50 6.65 6.65
1.00 1.00 1.00 1.50 1.50 1.50
8.00 8.00 8.00 8.00 8.15 8.15
8.70 8.70 8.70 7.75 7.90 6.90
2.30 2.30 2.30 2.30 2.70 3.20
2.30 2.30 2.30 2.30 2.70 3.20
62.00 63.50 64.50 67.00 68.10 67.60
Full-Time-Equivalent Employees as of December 31,
157
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2009 2010 2011 2012
General Government:
Elections 1 2 1 2
Registered voters 11,805 12,284 11,705 13,478
Number of votes cast 4,354 8,545 4,314 11,546
Voter participation (registered)36.9%69.6%36.9%85.7%
Public Safety:
Police:
Calls for Service 6,353 6,398 6,384 6,344
Traffic Citations & Warnings 3,187 2,743 2,604 2,694
Part I Crime Rate 1,075 982 1,117 983
Part II Crime Rate 3,151 2,911 2,911 2,396
Police:
Case Numbers Generated
Avg Response Time (Emergency & Non-Emergency)
Part I Crime Offenses
Part II Crime Offenses
Clearance Rate
Fire:
Fire Call Load
Fire Property Loss
Fire Property Saved
Fire Inspections
Inspections:
Building Permits (1) (2)1,535 509 452 459
Value of Building Permits $9,586,160 $11,295,493 $11,192,264 $10,751,626
Public Works:
General Maintenance (hours)5,870 4,945 7,416 6,939
Street Mantenance (hours)3,267 3,099 4,352 5,926
Fleet Maintenance (hours)4,782 4,850 4,214 3,945
Snow Plowing/Sanding (hours)950 1,638 1,534 594
Culture and Recreation:
Parks
Park Maintenance (hours)12,406 9,257 9,813 9,739
Utilities:
Water Maintenance (hours)5,041 3,560 3,568 3,585
Sanitary Sewer Maintenance (hours)3,486 3,531 3,557 3,517
(1) 4,337 and 581 repair permits issued in 2008 - 2009, respectively, due to storm damage.
(2) Increase in permits issued - June 2017 storm damage.
(3) The Public Safety Department modified the metrics maintained for business purposes in 2016.
Those changes are reflected in the 2016-2018 Operating Indicators.
Source: Various City Departments
158
Table 16
2013 2014 2015 2016 2017 2018
121212
12,020 12,610 12,143 13,636 12,624 12,860
1,575 7,854 4,085 11,562 2,165 10,738
13.1% 62.3% 33.6% 84.8% 17.1% 83.5%
6,210 6,281 6,210 6,210 (3) (3)
2,597 2,296 2,199 2,199 (3) (3)
918 631 1,226 1,091 (3) (3)
2,144 1,836 2,395 3,635 (3) (3)
16,321 18,199 14,487
5:26 minutes 4:42 minutes 5:16 minutes
224 176 195
746 808 587
73% 82% 69%
269 316 356
$694,000 $325,100 $205,200
$10,511,300 $6,342,100 $1,791,500
53 117 107
490 431 654 761 5,422 3,281
$17,683,665 $13,535,514 $26,570,593 $53,390,619 $50,984,047 $50,990,945
3,994 5,200 7,839 5,534 6,313 420
5,740 3,840 3,347 4,053 3,765 12,418
4,548 4,746 4,322 4,437 3,986 2,648
1,639 2,141 754 960 928 2,117
8,480 8,537 8,332 9,698 8,576 9,027
3,119 3,189 3,240 3,539 3,278 4,080
3,109 3,178 3,240 3,539 3,278 4,080
159
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Safety:
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 12 12 12 12 12 12 12 12 12 12
Fire:
Stations 1 1 1 1 1 1 2 2 2 2
Fire Trucks 5 5 5 5 5 5 7 7 8 8
Public Works:
Lights 673 673 673 673 673 673 673 815 838 854
Vehicles 29 29 29 29 29 29 29 39 39 39
City Streets (miles)100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 106.9
Culture & Recreation:
Parks:
Parks 18 18 18 18 18 18 18 17 18 19
Park Acres 141 141 141 141 141 141 141 139.6 147 152
Trails (miles)26 26 26 26 26 26 26 29.75 30 30
Park Shelters 7 7 6 6 6 6 6 6 6 7
Basketball Courts 6 6 6 6 6 6 6 6 6 7
Fishing Pier 1 1 1 1 1 1 1 1 - -
Skating Rinks 4 4 4 4 4 4 4 4 3 3
Soccer Fields 8 8 8 8 8 8 8 6 4 4
Baseball/Softball Fields 20 20 20 20 20 20 20 8 8 8
Tennis Courts 2 2 2 2 2 2 2 2 - -
Playgrounds 16 16 16 16 16 16 16 15 16 17
Water:
Distribution System (miles)74.7 74.7 74.7 74.7 74.7 74.7 74.7 85.6 99.4 89.0
Water Connections 4,340 4,382 4,424 4,452 4,484 4,520 4,542 4,649 4,738 4,919
Gallons Pumped (millions)589 498 492 609 536 536 449 452 494 508
Number of Fire Hydrants 538 538 538 538 538 538 1,024 1,024 1,028 942
Water Tower Capacity (millions gallons) 2 2 2 2 2 2 2 2 2 2
Sanitary Sewer:
Collection System (miles)69.8 69.8 69.8 69.8 69.8 69.8 77.9 77.9 87.0 79.5
Sewer Connections 4,486 4,530 4,567 4,567 4,624 4,685 4,685 4,817 4,976 5,102
Storm Sewer:
Pipe (miles)41.4 41.4 41.4 41.4 41.4 41.4 41.4 53.7 54.1 55.0
Source: Various City Departments
160
OTHER INFORMATION (UNAUDITED)
161
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF LONG-TERM DEBT
December 31, 2018
Final
Interest Issue Maturity
Rates Date Date
Long-term debt:
General Obligation Bonds:
2015A Certificates of Indebtedness 1.00%2/1/15 12/31/18
2015B Certificates of Indebtedness 1.50% 8/25/15 12/31/20
2016A Certificates of Indebtedness 1.00%2/1/16 12/31/19
2017A Certificates of Indebtedness 1.00%3/1/17 12/31/20
2018A Certificates of Indebtedness 1.00%2/1/18 12/31/21
G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/06 2/1/18
G.O. TIF Bonds, Series 2007A 4.00% - 4.125% 7/15/17 2/1/24
G.O. Refunding Bonds, Series 2012A 1.00% - 2.00% 11/15/12 2/1/24
G.O. Bonds, Series 2015A 2.00% - 3.00% 8/1/15 2/1/31
EDA Lease Revenue Bonds, Series 2015B 2.00% - 3.00% 10/1/15 4/1/36
G.O. Utility Revenue Bonds, Series 2016A 2.00% 11/23/16 2/1/27
G.O. Tax Abatement Refunding Bonds, Series 2016C 1.00% - 1.50% 11/23/16 2/1/23
G.O. Bonds, Series 2018A 2.05% - 3.50% 12/19/18 2/1/34
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Imp & Utility Revenue Bonds, Series 2010A 2.00% - 3.00% 7/9/10 2/1/20
G.O. Improvement Bonds, Series, 2013A 1.25% - 4.00% 7/15/13 2/1/24
G.O. Improvement Bonds, Series 2014A 0.40% - 2.30% 11/20/14 2/1/26
G.O. Improvement Refunding Bonds, Series 2016B 0.875% - 1.50% 11/23/16 2/1/21
Total Special Assessment Bonds
G.O. Capital Note, Series 2016A 2.00% 4/14/16 2/1/26
Total long-term debt
162
Exhibit 1
Payable Payable Principal
Original Prior January 1, December 31, Due in
Issue Payments 2018 Issued Payments 2018 2019
$198,250 $132,000 $66,250 $ - $66,250 $ - $ -
963,000 370,000 593,000 - 195,000 398,000 197,000
469,000 155,000 314,000 - 156,000 158,000 158,000
311,000 - 311,000 - 102,000 209,000 104,000
303,900 - - 303,900 - 303,900 103,900
2,990,000 2,565,000 425,000 - 425,000 - -
4,215,000 2,590,000 1,625,000 - 190,000 1,435,000 200,000
2,015,000 745,000 1,270,000 - 230,000 1,040,000 230,000
3,095,000 190,000 2,905,000 - 195,000 2,710,000 200,000
4,350,000 165,000 4,185,000 - 170,000 4,015,000 175,000
1,420,000 - 1,420,000 - 130,000 1,290,000 135,000
1,600,000 - 1,600,000 - 225,000 1,375,000 245,000
6,915,000 - - 6,915,000 - 6,915,000
28,845,150 6,912,000 14,714,250 7,218,900 2,084,250 19,848,900 1,747,900
1,000,000 675,000 325,000 - 105,000 220,000 105,000
615,000 180,000 435,000 - 60,000 375,000 60,000
2,645,000 475,000 2,170,000 - 370,000 1,800,000 380,000
1,975,000 - 1,975,000 - 480,000 1,495,000 490,000
6,235,000 1,330,000 4,905,000 0 1,015,000 3,890,000 1,035,000
294,525 61,050 233,475 - 31,350 202,125 32,175
$35,374,675 $8,303,050 $19,852,725 $7,218,900 $3,130,600 $23,941,025 $2,815,075
2018
163
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2018
Year of Certificates of Certificates of Certificates of Certificates of
Levy/Indebtedness Indebtedness Indebtedness Indebtedness
Collection 2015B 2016A 2017A 2018A
2018/2019 $213,119 $167,559 $111,395 $115,211
2019/2020 214,216 - 111,353 107,100
2020/2021 - - - 106,050
2021/2022 - - - -
2022/2023 - - - -
2023/2024 - - - -
2024/2025 - - - -
2025/2026 - - - -
2026/2027 - - - -
2027/2028 - - - -
2028/2029 - - - -
2029/2030 - - - -
2030/2031 - - - -
2031/2032 - - - -
2032/2033 - - - -
2033/2034 - - - -
2034/2035 - - - -
$427,335 $167,559 $222,748 $328,361
164
Exhibit 2
G.O.
G.O. EDA Lease Tax Abatement
Refunding G.O.Revenue Refunding G.O.
Bonds Bonds Bonds Bonds Bonds
2012A 2015A 2015B 2016C 2018A Total
$180,012 $270,178 $315,722 $289,097 $233,159 $1,895,452
178,080 271,228 317,297 301,571 481,799 1,982,644
175,896 266,923 316,877 313,567 483,899 1,663,212
178,794 267,868 316,299 325,054 485,212 1,573,227
176,109 273,958 320,814 - 485,737 1,256,618
- 274,588 319,764 - 485,474 1,079,826
- 269,863 318,557 - 484,214 1,072,634
- 269,798 317,192 - 482,639 1,069,629
- 222,364 315,669 - 485,527 1,023,560
- 222,626 319,239 - 482,114 1,023,979
- 222,758 317,244 - 480,644 1,020,646
- 221,708 320,342 - 484,109 1,026,159
- - 317,231 - 481,320 798,551
- - 319,200 - 482,908 802,108
- - 318,780 - 478,170 796,950
- - 317,940 - - 317,940
- - 316,680 - - 316,680
$888,891 $3,053,860 $5,404,847 $1,229,289 $6,996,925 $18,719,815
165
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2018
Certificates of Certificates of
Indebtedness Indebtedness
2015B 2016A
Bonds payable $398,000 $158,000
Future interest payable 8,985 1,580
$406,985 $159,580
Payments to maturity:
2019 202,970 159,580
2020 204,015 -
2021 - -
2022 - -
2023 - -
2024 - -
2025 - -
2026 - -
2027 - -
2028 - -
2029 - -
2030 - -
2031 - -
2032 - -
2033 - -
2034 - -
2035 - -
2036 - -
$406,985 $159,580
166
Exhibit 3
Page 1 of 2
G.O.
Certificates of Certificates of G.O. TIF Refunding G.O.
Indebtedness Indebtedness Bonds Bonds Bonds
2017A 2018A 2007A 2012A 2015A
$209,000 $303,900 $1,435,000 $1,040,000 $2,710,000
3,140 8,825 187,773 43,433 429,093
$212,140 $312,725 $1,622,773 $1,083,433 $3,139,093
106,090 109,725 254,326 242,590 259,312
106,050 102,000 261,026 170,520 255,312
- 101,000 267,126 168,560 256,263
- - 272,504 166,400 252,163
- - 282,016 169,001 253,013
- - 285,775 166,362 258,712
- - - - 259,263
- - - - 254,481
- - - - 254,362
- - - - 209,400
- - - - 209,587
- - - - 209,150
- - - - 208,075
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
$212,140 $312,725 $1,622,773 $1,083,433 $3,139,093
167
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2018
G.O. Tax
EDA Lease G.O. Utility Abatement
Revenue Revenue Refunding G.O.
Bonds Bonds Bonds Bonds
2015B 2016A 2016C 2018A
Bonds payable $4,015,000 $1,290,000 $1,375,000 $6,915,000
Future interest payable 1,372,068 118,200 49,763 2,352,246
$5,387,068 $1,408,200 $1,424,763 $9,267,246
Payments to maturity:
2019 302,437 159,450 261,678 172,690
2020 298,937 161,700 273,770 367,788
2021 299,488 158,900 285,422 631,412
2022 299,012 156,100 296,605 637,537
2023 298,388 158,250 307,288 637,537
2024 302,538 155,350 - 641,413
2025 301,462 152,450 - 642,575
2026 300,237 154,500 - 632,987
2027 298,863 151,500 - 634,112
2028 297,338 - - 633,987
2029 300,587 - - 638,012
2030 298,613 - - 597,187
2031 301,106 - - 606,025
2032 298,062 - - 598,650
2033 298,800 - - 600,094
2034 298,200 - - 595,240
2035 297,200 - - -
2036 295,800 - - -
$5,387,068 $1,408,200 $1,424,763 $9,267,246
168
Exhibit 3
Page 2 of 2
G.O.
G.O. Imp & G.O. G.O. Improvement
Utility Revenue Improvement Improvement Refunding G.O. Capital
Bonds Bonds Bonds Bonds Note
2010A 2013A 2014A 2016B 2016A Total
$220,000 $375,000 $1,800,000 $1,495,000 $202,125 $23,941,025
6,750 44,700 94,869 31,473 14,372 4,767,270
$226,750 $419,700 $1,894,869 $1,526,473 $216,497 $28,708,295
110,025 72,900 406,158 506,780 36,217 3,362,928
116,725 71,100 401,788 505,868 36,399 3,332,998
- 69,000 406,390 513,825 35,739 3,193,125
- 71,500 162,055 - 35,904 2,349,780
- 68,900 159,280 - 36,053 2,369,726
- 66,300 161,151 - 36,185 2,073,786
- - 162,645 - - 1,518,395
- - 35,402 - - 1,377,607
- - - - - 1,338,837
- - - - - 1,140,725
- - - - - 1,148,186
- - - - - 1,104,950
- - - - - 1,115,206
- - - - - 896,712
- - - - - 898,894
- - - - - 893,440
- - - - - 297,200
- - - - - 295,800
$226,750 $419,700 $1,894,869 $1,526,473 $216,497 $28,708,295
169
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE Exhibit 4
December 31, 2018
Amount
General Liability:
Bodily Injury/Property Damage $2,000,000
Personal Injury/Police Professional Liability 2,000,000
Medical Expense Occurrence Limit 2,500
Medical Expense Aggregate 10,000
Property Damage ($1,000 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers)39,357,722
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 2,000,000
Comprehensive and Collision Actual Cash Value
Uninsured Motorists 200,000
Worker's Compensation Statutory
Employer Liability 1,500,000
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible)250,000
Coverage
170
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5
Tax Capacity Tax Capacity
Values Values
2017/2018 2016/2017
Taxable valuations:
Total $21,289,294 $19,643,805
Fiscal disparities:
Distribution 3,014,265 2,792,112
Contribution (1,215,584) (1,168,180)
Less: Captured Tax Increment Value (421,495) (293,970)
$22,666,480 $20,973,767
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $8,165,859 36.168 $7,360,431 35.105
Bond and Interest 1,610,873 6.658 2,131,424 10.035
Totals $9,776,732 42.826 $9,491,855 45.140
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
171
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172
55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
MINNESOTA LEGAL COMPLIANCE REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited, 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, the 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, Minnesota as of and for the year ended
December 31, 2018, and the related notes to the financial statements, which collectively
comprise the City of Lino Lakes, Minnesota’s basic financial statements and have issued our
report thereon dated May 24, 2019.
The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor
pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be tested: contracting
and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all
of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that the City
of Lino Lakes, Minnesota failed to comply with the provisions of the Minnesota Legal
Compliance Audit Guide for Cities. However, our audit was not directed primarily toward
obtaining knowledge of such noncompliance. Accordingly, had we performed additional
procedures, other matters may have come to our attention regarding the City of Lino Lakes,
Minnesota’s noncompliance with the above referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the
results of that testing, and not to provide an opinion on compliance. Accordingly, this
communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 24, 2019
55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited, in accordance with the 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, the 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, Minnesota as of and for the
year ended December 31, 2018, and the related notes to the financial statements, which
collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements, and have
issued our report thereon dated May 24, 2019.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Lino Lakes, Minnesota’s internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City of Lino Lakes, Minnesota’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Lino Lakes,
Minnesota’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be
prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies. Given these limitations, during
our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
Independent Auditor’s Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Lino Lakes, Minnesota’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the City of Lino Lakes, Minnesota’s internal control or on compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the City of Lino Lakes, Minnesota’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 24, 2019
55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the 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, Minnesota (the City) for the year ended December 31, 2018. Professional standards
require that we provide you with information about our responsibilities under generally accepted
auditing standards and Government Auditing Standards, as well as certain information related to
the planned scope and timing of our audit. We have communicated such information in our
letter to you dated December 13, 2018. Professional standards also require that we communicate
to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies.
The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies
was not changed during the year. We noted no transactions entered into by the City during the
year for which there is a lack of authoritative guidance or consensus. All significant transactions
have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and current
events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility
that future events affecting them may differ significantly from those expected. We believe the
most sensitive estimates affecting the City’s financial statements were the discount rate used to
measure the net pension liability and management’s estimate relating to the collectability of
Legacy at Woods Edge receivables (see page 3). The discount rate is based on actuarial studies
and the collectability of receivables is based on anticipated development. We evaluated the key
factors and assumptions used to develop these estimates in determining that they are reasonable
in relation to the financial statements taken as a whole.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 2
Certain financial statement disclosures are particularly sensitive because of their
significance to financial statement users. Determining sensitivity is subjective, however, we
believe the disclosures most likely to be considered sensitive are Note 7 – Defined Benefit
Pension Plans and Note 10A – Deficit Fund Balances.
The financial statement disclosures are neutral, consistent and clear.
Difficulties Encountered in Performing the Audit
We encountered no difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are clearly trivial, and communicate them to the
appropriate level of management. There were no uncorrected misstatements that have an effect
on our opinion on the financial statements. In addition, none of the misstatements detected as a
result of audit procedures and corrected by management were material, either individually or in
the aggregate, to each opinion unit’s financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting,
reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant
to the financial statements or the auditor’s report. We are pleased to report that no such
disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated May 24, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing
and accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the City’s financial statements or
a determination of the type of auditor’s opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting
principles and auditing standards, with management each year prior to retention as the City’s
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
Receivables related to the Legacy at Woods Edge Development
At December 31, 2018, the balance of receivables related to the Legacy at Woods Edge
Development was $6,649,435. The receivables are presented in the financial statements as
special assessments receivable ($2,994,379) and interfund loans receivable ($3,655,056).
Collection of these amounts is dependent upon receiving sufficient proceeds from land sales and
tax increment. Management believes all amounts are collectible.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the
budgetary comparison information, and the schedules of OPEB and pension information, which
are required supplementary information (RSI) that supplements the basic financial statements.
Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide
any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund financial
statements and schedules, which accompany the financial statements but are not RSI. With
respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to
prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory section, the statistical section or the
other information which accompany the financial statements but are not RSI. Such information
has 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.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 4
Restrictions on Use
This information is intended solely for the information and use of the City Council and
management of the City of Lino Lakes, Minnesota and is not intended to be, and should not be,
used by anyone other than these specified parties.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 24, 2019
City of Lino Lakes, Minnesota
2018 Audit Review
June 3, 2019
Andy Hering, CPA
Phone: 651-407-5877
Email: ahering@redpathcpas.com
1
Excellence in Financial Reporting
2
Follow Up On 2017 Findings
Internal Controls
None!
Minnesota Legal Compliance
None!
3
Reports Issued by Auditor
Opinion on the Fair Presentation of the Financial Statements
Report on Internal Controls
Report on Minnesota Legal Compliance
Communication to Those Charged with Governance
4
Results
Opinion on the Fair Presentation of the Financial Statements
Unmodified audit opinion
Report on Internal Controls
No findings
Minnesota Legal Compliance Report
No findings
Communication With Those Charged with Governance
Standard communications from auditor to governing body
5
Opinion on Financial Statements –Audit
Process
December 2018 / January 2019
Planning and preliminary testing
January –March 2019
City staff accumulate data, record year-end accruals, prepare audit
workpapers, and close the books on 2018
April 2019
Auditor receives trial balance and workpapers; audit planning is
finalized
Audit fieldwork is performed
May 2019
Financial statements are drafted by the auditor, reviewed by finance
staff. Transmittal letter and MD&A are updated.
6
Opinion on Financial Statements –Audit
Process
Audit Fieldwork –auditor performs tests to verify:
Occurrence: transactions and events that have been recorded have
occurred and pertain to the City
Completeness: all transactions and events that should have been
recorded have been recorded
Accuracy, Cutoff, Classification: amounts are accurately recorded in
the correct year and in the correct accounts
Data mining techniques
Journal entries
Disbursement register
7
Report on Internal Controls
What did we do?
We gained an understanding of internal controls in place and their
effectiveness in order to design our audit procedures.
How did we do it?
Obtain understanding of controls on each major class of transaction
and account balance.
Select a sample of transactions and perform detailed tests to
determine adherence to controls in place and effectiveness.
What is the result?
No internal control findings.
8
Report on Minnesota Legal Compliance
What did we do?
•Followed the audit guide published by the Office of the State Auditor. The
guide consists of seven sections:
–Depositories of public funds and investments
–Conflicts of interest
–Public indebtedness
–Contracting bid laws
–Claims and disbursements
–Tax increment
–Miscellaneous provisions
How did we do it?
•Select sample of transactions to test for compliance with statutory provisions.
What is the result?
•No legal compliance findings.
9
Communication to Those Charged with Governance
Accounting policies used and/or changed -none
Accounting estimates in the financial statements
•The discount rate used to measure the net pension liability ($4.7 million)
•Collectibility of receivables related to Legacy at Woods Edge
No difficulties encountered in performing the audit
Corrected and Uncorrected Misstatements
•K-9 Unit fund
No disagreements with management
Other Matters
•Legacy at Woods Edge receivables
•Property tax collection rate –99.5% for 2018.
10
Pensions
11
General Police
Employees and Fire
Plan Plan Total
1 Change in net pension liability:
2 Change in actuarial assumptions (1)($75,000)($87,000)($162,000)
3 Change in proportion (2)(158,000)(162,000)(320,000)
4 Experience difference (3)2,000 44,000 46,000
5 Earnings difference (4)(176,000)(445,000)(621,000)
6 Lino Lakes' share of pension expense 70,000 202,000 272,000
7 Contributions to the plan by City of Lino Lakes (192,000)(414,000)(606,000)
8 Contributions to the plan by State of Minnesota - (22,000)(22,000)
9 Decrease in net pension liability (529,000)(884,000)(1,413,000)
10 Beginning net pension liability 2,643,000 3,470,000 6,113,000
11 Ending net pension liability $2,114,000 $2,586,000 $4,700,000
1. Assumed future benefit increases were adjusted, as was the mortality projection scale.
2. The City's proportion is based upon its contributions to the plan in comparison to all participants.
3. This is the change between expected and actual experience in the measurement of the pension liability.
4. This is the difference between projected and actual earnings on plan investments.
Summary of Financial Activity
12
Notes:
•Debt service funds –2006E bonds paid off; $548,000 transfer to Closed Bond Fund
•Capital project funds –$2.8M of MSA rec’d; $5.5M increase in 2018 Constr. Fund
•Enterprise funds –unrestricted fund balance increased $725,000 to $15.6M
Change Fund Cash
Debt Interfund in Fund Balance Balance
Fund Type Revenue Expenditures Issued Transfers Balance 12/31/2018 12/31/2018
General Fund $10,770,000 $9,407,000 $ - ($1,294,000)$69,000 $6,886,000 $6,670,000
Special Revenue Funds 224,000 304,000 - 1,000 (79,000)661,000 447,000
Debt Service Funds 2,988,000 3,565,000 - (124,000)(701,000)1,591,000 4,456,000
Capital Project Funds 4,826,000 4,206,000 7,620,000 1,659,000 9,899,000 23,983,000 23,007,000
Permanent Funds 11,000 - - - 11,000 134,000 134,000
Enterprise Funds 5,141,000 3,297,000 - (242,000)1,602,000 48,280,000 14,999,000
Total $23,960,000 $20,779,000 $7,620,000 $ - $10,801,000 $81,535,000 $49,713,000
General Fund Summary
13
Favorable
Final (Unfavorable)
Budget Actual Variance
Revenues $10,673,000 $10,770,000 $97,000
Expenditures 9,412,000 9,407,000 5,000
Revenues over expenditures 1,261,000 1,363,000 102,000
Other financing sources (uses):
Transfers out (1,293,000)(1,294,000)(1,000)
Net change in fund balance ($32,000)$69,000 $101,000
General Fund 5 Year History
14
Fund Balance
Interfund Ending as a Percent of
Transfers Increase Fund Expenditures &
Revenues Expenditures (Net)(Decrease)Balance Transfers Out
2018 $10,770,000 $9,407,000 ($1,294,000)$69,000 $6,886,000 63%
2017 10,245,000 9,244,000 (440,000)561,000 6,817,000 67%
2016 9,417,000 8,904,000 (203,000)310,000 6,256,000 65%
2015 9,350,000 8,601,000 (110,000)639,000 5,946,000 65%
2014 8,729,000 8,253,000 (555,000)(79,000)5,307,000 60%
General Fund Monthly Cash Balances
15
Special Revenue Funds
16
Change Fund
Interfund in Fund Balance
Fund Revenue Expenditures Transfers Balance 12/31/2018 Comments
Program Recreation $70,000 $54,000 $ - $16,000 $20,000
Fund balance had decreased by
$109,000 from 2015 - 2017, now
under control with budget cuts.
Economic Development Authority 1,300 600 600 1,300 315,000 EDA has a $225,000 note
receivable due in 2037.
Cable TV Fund 66,000 75,000 - (9,000)75,000 Expenditures for Council
Chambers & technology upgrades.
Blue Heron Days 20,000 17,000 - 3,000 10,000 Expenditures are supported by
contributions and donations.
Federal & State Narcotics 16,000 152,000 - (136,000)150,000 Sqaud and body cameras
purchased for $112,500.
DUI and Other Forfeitures 14,000 5,000 - 9,000 54,000 Other Forfeiture' fund new in '18.
K-9 Unit 37,000 - - 37,000 37,000
New fund in 2018 to separately
account for donations. $10k rec'd
in 2018; $37k total.
Totals $224,300 $303,600 $600 ($78,700)$661,000
Debt Service Funds
17
Final
Future Maturity
Delinquent Scheduled Principal &Final
Fund Taxes and Deferred Interest Maturity
Balance Future Assmts Tax Levies Total Payments Date
Special Assessment Debt:
Imp and Utility Bonds of 2010A $ - $200 $ - $200 $227,000 2/1/20
Improvement Bonds of 2013A 439,000 252,000 - 691,000 420,000 2/1/24
Improvement Bonds of 2014A 1,181,000 1,000 - 1,182,000 1,895,000 2/1/26
Improvement Bonds of 2016B (2,150,000)2,994,000 - 844,000 1,526,000 2/1/21
Other Debt Supported by Taxes and User Fees:
Certificates of Indebtedness 217,000 4,000 1,146,000 1,367,000 1,091,000 12/31/19-21
TIF Bonds of 2007A 150,000 - - 150,000 1,623,000 2/1/24
Bonds of 2012A 266,000 1,000 889,000 1,156,000 1,083,000 2/1/24
Bonds of 2015A 597,000 2,000 3,054,000 3,653,000 3,139,000 2/1/31
Lease Revenue Bonds of 2015B 284,000 2,000 5,405,000 5,691,000 5,387,000 4/1/36
Capital Note of 2016A 600 - - 600 216,000 2/1/26
Utility Revenue Bonds of 2016A 261,000 - - 261,000 1,408,000 2/1/27
Tax Abatement Bonds of 2016C 346,000 2,000 1,229,000 1,577,000 1,425,000 2/1/23
Bonds of 2018A - - 6,997,000 6,997,000 9,267,000 2/1/34
$1,591,600 $3,258,200 $18,720,000 $23,569,800 $28,707,000
Fund Description
December 31, 2018
18
Capital Project Funds
Revenue Change Fund
and Debt Interfund in Fund Balance
Fund Proceeds Expenditures Transfers Balance 12/31/2018 Comments
Closed Bond Fund $31,000 $4,000 $361,000 $388,000 $1,000,000 Rec'd $548k from 2006E bond fund;
transferred $181k to 2018 St Project
Building and Facilities 193,000 183,000 - 10,000 2,518,000 Expenditures include AC upgrade,
Police Dept furniture
Capital Equipment Revolving 23,000 295,000 350,000 78,000 503,000 Flusher/tanker truck for public works
for $171,000
Office Equipment Revolving 2,000 30,000 25,000 (3,000)41,000 Variety of smaller purchases funded
by a General Fund transfer
Dedicated Parks 96,000 227,000 50,000 (81,000)228,000 Century Farms Trail, Birch Park
Playground, NorthPointe Park
Area and Unit Charge 1,240,000 370,000 (369,000)501,000 7,656,000
2018 Trunk Watermain/Trail Project
($256k), 49&J Utility Imp ($55k);
transfers to debt service funds
Tax Increment Financing 1-5 49,000 1,000 - 48,000 338,000 TIF 1-5 has no current obligations
Tax Increment Financing 1-10 167,000 1,000 (163,000)3,000 192,000 TIF revenue transferred to
Improvement Bonds of 2016B fund
Tax Increment Financing 1-11 115,000 5,000 (115,000)(5,000)(783,000)TIF revenue transferred to
Improvement Bonds of 2016B fund
Tax Increment Financing 1-12 140,000 112,000 - 28,000 27,000
Clearwater Creek TIF District - 2018
first yr receiving increment; majority
is paid back to developer
19
Capital Project Funds (cont)
Revenue Change Fund
and Debt Interfund in Fund Balance
Fund Proceeds Expenditures Transfers Balance 12/31/2018 Comments
MSA Construction 2,834,000 3,000 245,000 3,076,000 3,920,000 $2.8M of MSA; $647k of transfers in
(assmt rev from CSAH 14 / I 35E)
Street Maintenance 17,000 667,000 718,000 68,000 328,000 Rec'd transfer from General Fund and
MSA Fund to finance 2018 projects
Surface Water Management 150,000 121,000 (79,000)(50,000)930,000 NE Drainage Area Imp, $87k transfer
to 2018 Street Imp project
Street Reconstruction 34,000 - - 34,000 741,000 No 2018 projects
Surface Water Maintenance 3,000 120,000 125,000 8,000 109,000 Rec'd transfer from General Fund to
finance 2018 projects
Park and Trail Improvements 6,000 30,000 462,000 438,000 438,000 New fund, received $500,000 transfer
from General Fund as seed money
Birch St / Centerville Rd Improvements 2,000 - (136,000)(134,000) - Project completed, fund closed
2040 Comp Plan Update - 31,000 25,000 (6,000)(3,000)Received transfer from General Fund
2018 Street Reconstruction 6,993,000 2,006,000 510,000 5,497,000 5,300,000
West Shadow Lake Drive and LaMotte
neighborhood projects. Will see
significant swing in fund balance
due to timing of bond proceeds.
Captial Project Fund Totals $12,095,000 $4,206,000 $2,009,000 $9,898,000 $23,526,465
Enterprise Funds –Change in Net Position
20
2018 2017 2018 2017
Water Water Sewer Sewer
Fund Fund Fund Fund
Operating revenue $1,218,000 $1,151,000 $1,754,000 $1,699,000
Operating expenses 1,333,000 1,245,000 1,965,000 1,902,000
Operating loss (115,000)(94,000)(211,000)(203,000)
Non-operating revenue (expense)83,000 39,000 131,000 67,000
Capital contributions 892,000 588,000 1,064,000 418,000
Transfers in (out) - 69,000 (242,000)69,000
Change in net position $860,000 $602,000 $742,000 $351,000
Cash $6,022,000 $8,977,000 $8,444,000 $8,444,000
Enterprise Funds –Cash Flow
21
2018 2017 2018 2017
Water Water Sewer Sewer
Fund Fund Fund Fund
Cash flows from:
Operating activities $473,000 $444,000 $291,000 $141,000
Investment income 83,000 39,000 131,000 67,000
Transfers / Interfund loans - 69,000 114,000 (287,000)
Acquisition of capital assets (11,000)(23,000)(3,000) -
Increase (decrease) in cash 545,000 529,000 533,000 (79,000)
Cash - January 1 5,477,000 4,948,000 8,444,000 8,523,000
Cash - December 31 $6,022,000 $5,477,000 $8,977,000 $8,444,000
WS – Item # 2
WORK SESSION STAFF REPORT
Work Session Item No. 2
Date: June 3, 2019
To: City Council
From: Diane Hankee
Re: MS4 Annual Report
Background
The Municipal Separate Storm Sewer System (MS4) general permit is mandated by
federal regulations under the Clean Water Act and administered by the Minnesota
Pollution Control Agency. The permit allows for owners of storm sewer systems to
discharge stormwater into lakes, river and wetlands provided certain regulatory
requirements are met.
The City of Lino Lakes has been operating the storm sewer systems under the MS4
permit since 2006. The process includes an annual Storm Water Pollution Prevention
Program (SWPPP) report. The City’s SWPPP report for 2018 activity is comprised of 6
components, referred to as Minimum Control Measures (MCM’s) that provide for
implementation of the permit requirements:
1. Public education and outreach, which includes teaching citizens about better
stormwater management
2. Public participation: Include citizens in solving stormwater pollution problems.
This includes a required public annual meeting and an annual report.
3. A plan to detect and eliminate illicit discharges to the stormwater system (like
chemical dumping and wastewater connections)
4. Construction-site runoff controls
5. Post-construction runoff controls
6. Pollution prevention and municipal “good housekeeping” measures, like covering
salt piles and street-sweeping.
Staff will present the 2018 SWPPP report.
Requested Council Direction
None required, information only.
City of Lino LakesMS4 Program Update
June 3, 2019
1
NPDES Phase II MS4 Permit
National
Pollutant
Discharge
Elimination
System
2
Municipal / MS4 Program
MS4 = Municipal Separate Storm Sewer System
Who is regulated?
•Cities within Urbanized Areas as determined by U.S. Census
•Other MS4s as determined by MPCA policy and criteria
(e.g., MnDOT, Watershed Districts, colleges, County Lands/ROW)
Six Minimum Control Measures (MCMs)
3
4
1.Public Education and Outreach
2.Public Participation and Involvement
3.Illicit Discharge Detection and Elimination
4.Construction Site Stormwater Runoff Control
5.Post-Construction Stormwater Management
6.Pollution Prevention and Good Housekeeping
for Municipal Operations
MCM 1 & 2 Public Education,
Participation, and Involvement.
5
MS4 Program Activities
•Focused education on illicit discharges, shoreline management, construction
activities, and pollution prevention
•Distributed brochures and participated in community events
•Information on City’s website
•City held a Builder’s Workshop to discuss requirements and changes
6
MCM 3. Illicit Discharge Detection and
Elimination.
7
MS4
Program
Activities
•Completed routine
updates to the storm
sewer system map
•No Illicit Discharges
reported to-date
8
MCM 4. & 5. Construction/Post-
Construction Stormwater Runoff Control.
9
10
4 site plan reviews and 3
plat reviews completed in
2018
Over 10 active projects
requiring erosion &
sediment control practices
2018
209 compliance check
inspections completed by
the City to fulfil their MS4
duties in 2018
42 enforcements actions in
response to those
inspections (verbal warning,
written warning, stop
work/red tag)
•8 house red tags twice at
St. Claire Estates
•City sweeper was needed
at St. Claire Estates –7
tons of sediment swept
MCM 6. Pollution Prevention and Good
Housekeeping.
11
MS4
Program
Activities
Quarterly inspection of
Public Works Yard
Completed required
inspections for City’s
stormwater infrastructure
•515 assets inspected
•136 repairs or
cleanouts complete
•34 repairs planned
already for this year
12
MS4 Program Activities
Total cost for storm sewer inspection &
maintenance work orders: $143,000
City labor: $7,000
Public Works equipment cost: $5,500
Materials used: $500
Contracted services: $130,000
City receives a high volume of maintenance
requests
13
Contracted Services
•Pond Cleaning to restore capacity
•Whitetail
•LaMotte
•Diane St
•Drainage swales and outlet cleanings
14
Diane St
LaMotte North
15
Whitetail
THANK YOU
16
WS – Item #3
WORK SESSION STAFF REPORT
Work Session Item No. 3
Date: June 3, 2019
To: City Council
From: Diane Hankee, City Engineer
Re: Cedar Street Project Update
Background
On March 25, 2019 the City Council authorized the preparation of plans and
specifications for the Elmcrest Avenue and Cedar Street Roadway Paving project. The
project includes paving Elmcrest Avenue from Tart Lake Road to the south a distance of
2,300 feet, and Cedar Street from Otter Lake Road to the east a distance of 2,600 feet.
The City also entered into a Joint Powers Agreement with the City Hugo for cost sharing
of the project. The City of Hugo is funding the Elmcrest Avenue improvements and the
City of Lino Lakes is funding the Cedar Street improvements.
The estimated project cost for Cedar Street was $490,000. Funding for the project is
planned through the street reconstruction fund in the amount of $247,500 and state aid
funds in the amount of $242,500.
The geotechnical analysis for the project was recently completed. The gravel section of
the Cedar Street roadbed has underlying organics and peat for a good portion of the
roadway. The depth of the organics or peat is up to 11 feet below the surface. Removing
the organics and peat is beyond the original scope of the proposed grading project. It is
estimated that removing all the underlying materials would cost an additional $300,000.
Paving the gravel portion of the roadway as planned, while typical of existing roadways
that are of 5-ton design, does leave the roadway prone to settlement and heaving. This
will require additional maintenance overtime to mitigate the issue. Staff recommends
adding spot subgrade replacement near the surface and additional gravel. The described
additional measure is estimated to add $40,000 to the project.
At the July 8, 2019 Council meeting staff will present the bids for Council consideration.
Note the Minnesota Department of Transportation recently sent out a notice that
construction costs have risen, and to expect anywhere from a 10-20% increase in cost.
Requested Council Direction
None required.
Attachments
1. Project Location Map
Lino LakesHugo%&c(
Clearwater Creek Park
Cedar St Gravel 590 vpd
Cedar St Paved 1,100 vpd
Elmcrest Ave 700 vpd
E L LEN
CT
DELINACIRLACAS S E CTALBERT CTTART CTF L ORAC TTELELN STELLALNARTHURC T
IVERSON CT
TELE DROTTERLAKESERVICER
D
65TH ST
LACASSEDR
TARTLAKE R D 24THAVECLEAR
WATERCREEKDRMAINSTTOSBI35ELANGERLNOTTER LAKE RDCEDAR ST
INTERSTATE35EF A BLEHILLPKWY
NVALJEANBLVDNGARDENW
AYN
ELMCRESTAVEN
ARBRELN
NJARDINAVENF ABLE ROAD CT N
1 2 9 T H S T N
ArbrePark
ValjeanPark
Aspire Park
1 inch = 500 feet Document Path: K:\02029-870\GIS\Maps\RoadwayImprovement11x17Aerial.mxd Date Saved: 2/25/2019 1:47:24 PMRoadway Improvement ProjectsLino Lakes, MN
Lino Lakes ProjectHugo ProjectCity Boundary
Figure 1 - Project Location 0 600Feet¯
WS – Item 4
WORK SESSION STAFF REPORT
Work Session Item 4
Date: June 3, 2019
To: City Council
From: John Swenson, Public Safety Director
Re: Blue Heron Days Parade Update
Update
LLPSD Staff has been in communication with Lino Lakes Target Management. This
proposal has been reviewed by the Target real estate management team who did not
approve of a trail being established in that location, citing safety concerns for pedestrians
and bicyclists due to the proximity of the trail to the loading docks.
Staff replied to Target’s real estate team asking if they’d consider the trail if it was closed
by a full-obstruction gate to prevent pedestrian and bicyclist traffic, but allow Police staff
to utilize the trail, as proposed, for the parade each year. Target’s Sr. Real estate manager
said they’d consider that proposal, but requested to see pictures of a few gate options that
they could review and choose from, information about curb-cut, dimensions of the trail,
information on when the work would be done, and additional information on the specific
timeframe the gate would be open and staffed each year.
LLPSD staff has requested assistance in answering Target real estate team’s specific
questions from Lino Lakes streets department supervisor and City Engineer. In addition
to getting answers to the Target team’s questions, streets dept. supervisor is getting a bid
for the work which will later be presented to Council for review.
Staff is aware that the modification to the original proposal offered to Target has not yet
been reviewed or approved by Council and staff has not committed to this new proposal
with Target in any way, rather, offered it as a possible option, pending Council approval.
LLPSD staff expects the bid(s) and answers to Target team’s questions by mid-June,
2019.
Attachments
March 4, 2019 W.S. Item 4, Blue Heron Days Parade
WS – Item
WORK SESSION STAFF REPORT
Work Session Item
Date: March 4, 2019
To: City Council
From: Kyle Leibel, Deputy Public Safety Director
Re: Blue Heron Days Parade
Background
The Blue Heron Days parade route has historically been on Lake Drive, from Market
Place Drive to James Street. In order to detour traffic in manner that is safe and efficient,
Lake Dr. is closed to all non-parade traffic for the parade at Apollo Drive on the south
end and Main Street on the north end. The road closure starts at approximately 10:30
AM and historically has re-opened at approximately 1:00 PM. The road closure is ended
once all parade traffic is off the road and pedestrian traffic has diminished to level that is
safe to allow normal traffic to return to Lake Drive.
Throughout the years, the closure of Lake Drive for the parade has greatly limited
residents from the following Lino Lakes streets from leaving/returning to their
neighborhoods:
- 77th St. W.
- Carole Dr.
- Oak Ln.
- Knoll Dr.
- Lois Ln.
- Kelly St.
- Jane Ave.
- Wayne Ct.
- Timothy Ct.
- Sheila Ave.
- Both sides of Lake Dr. throughout the parade route
This closure affects the residents of 218 homes and approximately 15 businesses.
There have been residents who have expressed their concerns to staff and Council
Members in the past regarding the lack of access. The concerns of residents have
increased in the past two years because of the lack of access to their neighborhood with
the closing of the Gracewood Assisted Living driveway. Prior to Gracewood being
constructed, public safety staff allowed limited access to residents and vendors of the
Lino Lakes Business Expo to pass through the open lot between Marketplace Dr. and
77th. Though this was not ideal, it was a way of making it work. Once Gracewood
opened, they allowed the public safety department to allow limited access for the first
two years, then recognized a safety concern for their residents as traffic was allowed
through their lot and their residents were seated near the lot for the parade. In 2017,
Gracewood management asked public safety staff to close their lot and only allow
through-access for emergencies. Again in 2018, public safety staff had the same
agreement with Gracewood. This closure resulted in an increased number of complaints,
including an upset resident who lived within the closed area. After an exchange with
public safety staff, the resident created his own detour over traffic cones, through the
parade route and over a curb to get to his home. This event resulted in an unsafe act and
a criminal charge for reckless driving.
Because there isn’t a safe access point at this point, public safety staff is concerned that
the problems will continue if a safe access point isn’t established. Because of this, staff
has three possible options to address this matter and is seeking Council direction.
Option #1 – Make no changes and continue in the same manner as past years.
Option #2 – Adjust the end of the parade route to 79th St. rather than ending at James St.
This would shorten the parade route by approximately 1,100 feet. If the parade route
ended at 79th St., residents from within the closure would be allowed limited access
to/from their neighborhood from Kelly St. by traveling north on Lake Dr. to James, then
east on James to Main.
Challenges of this option:
- This option would create a need to limit parking for parade goers to only one side
of 79th St, Marilyn Dr., and 77th St., west of Lake Dr. These residential streets
have historically been primary parking areas for many who come to enjoy the
parade. Staff foresees a traffic/parking concern with this plan which would push
more parking of vehicles further into our neighborhoods and result in a longer
walk for parade-goers.
- The responsibility of posting no parking signs in advance would fall on Public
Services Department. Enforcement during the event would be on the Public
Safety Department.
- There would likely be an increase in traffic volume on the residential streets and
neighborhoods along 79th St., Marilyn, and 77th St. by adding the floats to these
areas.
Benefits of this option:
- Parade floats and parade participants would have a means of returning to the point
of parade origin without having to walk the parade route back along Lake Dr.
- Residents from the neighborhoods east of Lake Dr. throughout the parade route
closure would have access to/from their neighborhoods, on the north end of the
parade. Due to public safety concerns, access to/from Kelly St. would have to be
limited to residents and LL Business Expo vendors only and access would be
regulated and directed by public safety personnel.
Option #3 – Establish a paved path with swing-away bicycle gates on the south side of
77th St. W. in the 700 block into the Northeast corner of the Target parking lot. This path
could provide bicycle access to the Apollo Dr. businesses and also provide residents a
point of access to/from Apollo Dr. through the Target parking lot during the parade
closure timeframe.
Challenges of this option:
- Would need to secure permission from Target Corporation and identify funding
for improvements needed to provide a paved path for vehicular traffic and gates.
- The gate/path would need to be staffed by public safety staff who would limit
access to residents and vendors for the LL Business Expo.
- Would require traffic cones for traffic diversion through Target lot and onto
Apollo Dr.
Benefits to this option:
- This would create an access point to and from the neighborhoods in a safe
location, away from Lake Dr. parade route.
Attachments
Option #2 Map:
Option #3 Map:
WS – Item 5
WORK SESSION STAFF REPORT
Work Session Item 5
Date: June 3, 2019
To: City Council
From: John Swenson, Public Safety Director
Re: Fire Division Staffing
Background
Fire Station 1 is currently not staffed adequately with Paid On-Call (POC) Firefighters.
At this time we have a total of 7 POC Firefighters assigned to Station 1 and 12 assigned
to Fire Station 2. The fire staff study commissioned by the City Council in 2014
recommends that each station be staffed with 20 POC firefighters.
Our POC Firefighter recruiting effort is on-going and has a included direct mailing to
every address in Lino Lakes, recruiting videos, open houses, social media posts, and
continuous posting on the City website. We are currently seeking a permit from
Community Development to place signage in front of each fire station seeking POC
Firefighters.
The current staffing shortage is a direct result of a medical leave, a current POC
Firefighter moving for employment reasons, and lack of applicants.
In an effort to address this staffing shortage in the most cost effective manner, I would
like to discuss the Residential Police/Firefighter position with Council. This idea was
presented to Council in June of 2016 (staff report attached). At that time, the Council
was not supportive of moving forward with a MOU regarding Residential Police/
Firefighters.
We currently have 4 Police/Firefighters that reside within the required drive time to our
fire stations. Three of the four are within the required drive time to Fire Station 1, which
is the station with the greatest POC staffing need.
Utilization of Police/Firefighter staff in this manner reduces cost with respect to training
and fire suppression PPE.
Staff worked with staff from the Public Employee Retirement Association (PERA) who
administers the Lino Lakes Statewide Volunteer Firefighter Retirement Plan (SVFRP).
As you know currently all state fire aid is deposited directly into the Lino Lakes SVFRP
and there has been no City funds used to support the plan since 2016. PERA staff
performed a projection of the Lino Lakes SVFRP at its current benefit level ($5,000 per
year of service). This study determined that no City funds would be needed to fund the
Lino Lakes SVFRP. Below is a table prepared by PERA staff:
Year End
Cost for
Current POC
Service
Members (22)
Cost @ 25
POC Service
Members
Cost @ 30
POC Service
Members
Cost @ 35
POC Service
Members
Cost @ 40
POC Service
Members
Estimated
MN State
Fire Aid
12.31.2020 $ 59,887.00 $ 69,443 $ 85,369 $ 101,295 $ 117,221 $ 124,941
12.31.2021 $ 56,750.00 $ 67,689 $ 85,922 $ 104,154 $ 122,387 $ 128,520
12.31.2022 $ 53,066.00 $ 65,473 $ 86,150 $ 106,828 $ 127,505 $ 132,223
12.31.2023 $ 48,791.00 $ 62,753 $ 86,022 $ 109,291 $ 132,560 $ 136,056
12.31.2024 $ 43,877.00 $ 59,487 $ 85,503 $ 111,519 $ 137,535 $ 140,023
12.31.2025 $ 38,271.00 $ 55,627 $ 84,556 $ 113,484 $ 142,412 $ 144,129
12.31.2026 $ 31,778.00 $ 50,987 $ 83,002 $ 115,017 $ 147,032 $ 148,379
Staff is recommending utilizing Resident Police/Firefighters as one of the strategies to
address the Fire Division staffing shortage.
If Council is supportive of this direction, staff will contact LELS to determine if they are
agreeable to entering the MOU previously proposed. Once a MOU has been developed,
staff will bring the MOU back to Council for formal ratification.
Attachments
Staff Report and MOU as presented on June 27, 2016
CITY COUNCIL
AGENDA ITEM 3A
STAFF ORIGINATOR: Jeff Karlson
MEETING DATE: June 27, 2016
TOPIC: Memorandum of Understanding with LELS Local #299
VOTE REQUIRED: 3/5
INTRODUCTION
The Council is being asked to consider a Memorandum of Understanding that will allow residential cross-
trained police officers to act as paid-on-call firefighters.
BACKGROUND
As part of the integration of fires services in the Public Safety Department, staff recommended a fire
stipend for current police officers who successfully complete all required firefighter training and the
certifications. In September 2014 the City Council approved a $1.30 per hour stipend for staff upon the
successful completion of the State of Minnesota firefighter certification process.
In February 2015, the City and LELS Local No. 299 entered into a Memorandum of Agreement that
specified the following: (1) police officers may volunteer to be trained as Lino Lakes’ firefighters; (2) an
officer will receive premium pay of $1.30 per hour whether performing licensed police officer or
firefighter duties; (3) firefighter-trained officers are not obligated to respond to fire calls while they are
off-duty; and (4) firefighter-trained officers who respond to a fire call while off-duty will be paid at their
overtime rate.
During recent contract negotiations with LELS No. 299, the patrol officers proposed that the
Memorandum of Agreement be revised to include language providing that responses to fire calls, while
officers are off-duty, would be subject to the minimum hours’ provision in Article 14 of their contract.
At the same time, Public Safety Director John Swenson pointed out the department has police officers
living within the required nine-minute response time who wanted to go on more fire calls. Subsequently,
Mr. Swenson proposed an innovative solution that would allow cross-trained officers who live within a
nine-minute drive to respond to fire calls as paid-on-call firefighters.
The attached Memorandum of Understanding effectively creates a program for residential police officers
RPO’s”) to act as paid-on-call firefighters while off-duty. The RPO’s would be paid at the top paid-on-
call wage rate and would become eligible for the annual $5,000 contribution towards the statewide
volunteer firefighter pension fund. The City benefits by increasing its number of responders to fire calls
and by not having to pay the regular overtime rate for a cross-trained police officer.
RECOMMENDATION
Staff recommends approval of the Memorandum of Understanding between the City of Lino Lakes and
Law Enforcement Labor Services, Inc., Local No. 299.
ATTACHMENTS
Memorandum of Understanding
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding is entered into between the City of Lino Lakes (“City”) and
Law Enforcement Labor Services, Inc., Local #299 (“Union”).
WHEREAS, the City and the Union are parties to a 2016-2017 collective bargaining agreement
CBA”);
WHEREAS, Union members are licensed police officers whose duties have been limited to law
enforcement;
WHEREAS, the City resolved to utilize and train licensed Lino Lakes police officers in the
capacity of firefighters;
WHEREAS, the CBA does not provide compensation that recognizes the firefighter training or
performance of firefighter duties;
NOW, THEREFORE, the parties agree that:
1. Lino Lakes’ police officers may volunteer to be trained as Lino Lakes firefighters
hereinafter cross-trained police officers). The City reserves the right to add or reduce
crossed-trained police officers based on the fire staffing needs of the organization.
2. Upon successful completion of firefighter training (Fire 1, Fire 2, and Hazmat), an officer
will receive premium pay of $1.30 per hour, in addition to any other premium pay, for all
hours worked as a Lino Lakes police officer, whether performing licensed police officer
or firefighter duties.
3. Continuing education for cross-trained officers will occur on-duty when possible or
follow past-practice training guidelines.
4. Cross-trained officers are not obligated to respond to fire calls while they are off-duty.
5. Cross-trained officers who respond to a fire call while off-duty will be paid at their
overtime rate. Cross-trained officers who respond to a fire call shall receive a minimum
of one hour pay at the overtime rate and calculated in 15-minute intervals thereafter.
Cancellation of a fire call while an officer is in transit to the fire hall is not subject to the
minimum hours provision, but is subject to the overtime rate for the officer’s actual
round-trip transit time at the time of cancellation.
6. When a cross-trained officer responds to a fire call in their off-time, the officer is to
respond only in their capacity as a firefighter.
7. Employer will provide firefighter-related equipment (e.g. turnout gear) and any necessary
replacements to all employees who have completed Firefighter 1, Firefighter 2 and
HazMat training. Employer will not deduct such costs from the employee’s Clothing
Allowance.
8. Employer will pay all related fees for firefighter certification and recertification.
9. The term cross-trained residential police officer (“RPO”) shall apply to only those
officers who live within a nine-minute drive from either Lino Lakes Fire Station 1 or
Station 2. Drive time is calculated by normal, non-emergency driving in normal traffic
conditions.
10. RPO’s will bring their turn-out gear home with them or leave their gear at their assigned
Fire Station during their off-duty time. RPO’s will have a 15-minute paid early leave at
the end of each police shift to allow time to bring the turn-out gear to their assigned Fire
Station.
11. RPO’s will be paid at the top hourly wage as set by the City Council in the Resolution
Establishing Compensation Plan for Paid On-Call Fire Personnel.
12. RPO’s shall be eligible for the firefighter pension when the RPO responds to a minimum
of 20% (or the minimum standards established) of eligible fire calls that occur during
their off-duty hours and schedule one Saturday and one Sunday a quarter as the primary
on-call responder. On-call days will be scheduled through the District Chief. An eligible
fire-call is a call that generates a paid-on call firefighter response.
13. For each year an RPO complies with the requirements of paragraph 12 above, $5,000.00
will be contributed to the officer’s firefighter pension fund.
It is the parties’ intent that the Memorandum of Agreement regarding firefighter training and
compensation for police officers signed by the City and the Union on April 25, 2016 and April
29, 2016, respectively, is hereby rescinded by the execution of this Agreement.
It is further agreed that this Memorandum of Understanding shall continue as an addendum to
the current labor agreement until such time as a successor agreement is negotiated.
FOR LAW ENFORCEMENT FOR THE CITY OF
LABOR SERVICES, INC.: LINO LAKES:
LOCAL #299)
Business Agent Date Date
WS – 7
WORK SESSION STAFF REPORT
Work Session Item No. 7
Date: June 3, 2019
To: City Council
From: Michael Grochala, Community Development Director
Karissa Bartholomew, Human Resources Manager
Re: Environmental Coordinator Position replacement
Background
At the April 1, 2019 work session the City Council discussed the upcoming retirement of
Environmental Coordinator Marty Asleson after approximately 30 years with the City. At that
time staff proposed a transition plan that included a phased retirement pending backfill of the
Environmental Coordinator position. The City Council requested further review of the
Environmental Coordinator position prior to advertising the job opportunity.
Environmental Services Operation and Management Plan
In response to the direction provided at the April 1 work session staff has prepared the attached
draft Environmental Services Operation and Management Plan. The Plan outlines the
background of the position, City natural resource history and studies completed to date; an
assessment of environmental strengths and threats, as well as the activities and tasks undertaken
by the Environmental Coordinator position.
The Environmental Coordinator, under direction of the Community Development Director,
oversees four primary functional groups; Natural Resources, Forestry, Solid Waste and
Administration. As more specifically addressed in the plan, the position wears a number of hats
for the City and is a key member of city operational staffing.
Salary Adjustment
Staff recommends the position be filled, but at a reduced salary range. Lino Lakes’ current range
is $69,104 - $86,380. Staff is recommending a new salary range of $60,120 - $75,151. The
adjustment is based on a review of 17 similar positions in suburban metro communities.
Phased Retirement
Mr. Asleson’s last day of full time employment was April 26. Asleson began a phased
retirement to assist with the transition and is currently working at 75% time.
Upon filling the position, Asleson would work an additional two months, between 25% to 50%,
depending on the workload. Staff anticipates being able to bring in a new hire by the end of
August.
Staff will work within the current budget to execute the phased retirement and transition.
Requested Council Direction
1. Approve new salary, effective with a new hire.
2. Approve filling the Environmental Coordinator position, effective immediately.
Attachments
1. Environmental Services Operation and Management Plan draft
5/29/2019 1
City of Lino Lakes
Environmental Services
Operation and Management Plan
5/29/2019 2
Table of Contents
Introduction ......................................................................................................................................3
Background ......................................................................................................................................4
Natural History and Landscape ............................................................................................4
Natural Resource Inventory’s and Assessments ..................................................................7
Unique Resources and Threats...........................................................................................14
Essential Functions and Tasks .......................................................................................................16
Natural Resource Management ..........................................................................................16
Forestry ..............................................................................................................................22
Solid Waste ........................................................................................................................25
Administration ...................................................................................................................26
Appendices .....................................................................................................................................29
Environmental Coordinator Position Description ..............................................................29
Time Allocation Chart .......................................................................................................31
Native Area Maintenance Sites ..........................................................................................32
Prescription Burn Guidelines .............................................................................................34
Annual Work Plan..............................................................................................................36
Table of Figures
Figure 2-1 Presettlement Vegetation ............................................................................................. 6
Figure 2-2 Minnesota Land Cover Classification System ............................................................ 9
Figure 2-3 I-35E Corridor AUAR Area ...................................................................................... 11
Figure 2-4 High Priority Wetlands ............................................................................................. 12
Figure 2-5 Wetland Bank Areas ................................................................................................. 13
5/29/2019 3
Introduction
Environmental planning, resource management, and the establishment of the Environmental
Coordinator position were an outgrowth of the Community 20/20 Vision Plan completed in
1995. The vison established with the plan was:
The Environmental Vision is for the sustenance of the natural environment of Lino Lakes
through the protection and management of the wildlife, habitats, and other natural resources,
and to pass on to future residents a community still rich in these resources. Future development
is to include equal consideration of economic development and environmental protection issues.
Key recommendations of the plan included:
1) Establishment of an Environmental Advisory Board and Environmental staff position
to provide representation for environmental issues within City management.
2) Prepare a master plan for sustaining the environmental assets in our community
3) Review and revise City natural resource protection performance standards
The following chapters represent an overview of the work that has been done since 1995 to carry
out the vision, including review of the key environmental studies completed to date, deification
of unique Natural Resource opportunities and threat assessment, explanation of the core
functions of the Environmental Service division, and current operation procedures necessary to
implement the plans and policies of the City.
This document is intended to serve as both a resource and guide to environmental activities
within the City. It should be updated as operations expand or adapt to changing environmental
factors.
5/29/2019 4
BACKGROUND
This chapter summarizes background information helpful for understanding the natural
environment of Lino Lakes. The historic ecological patterns and vegetation communities found
in the city were those that were adaptable to the local soil conditions, hydrologic patterns, and
climate. Now, both remnants of these historic systems and communities of introduced species
e.g., agricultural species, lawns, orchards, and prairies to wetlands and lake edges have all been
historically present in the city. Clearly, the natural character of the city remains one of its most
important aspects and essential to the sense of place found here.
Natural History and Landscape
Lino Lakes is located within the Anoka Sandplain ecological subsection of central Minnesota.
The Anoka Sandplain is a 1,875 square mile glacial outwash plain that includes portions of 13
Minnesota counties, and includes most of Anoka, Isanti, and Sherburne counties. The Anoka
Sandplain was created and shaped by the last major glacial episode in Minnesota – the
Wisconsin glaciation – between 35,000 and 10,000 years ago.
Lino Lakes is located within the historic lake bottom of Glacial Lake Fridley which formed from
glacial ice-melt water circa 12,000 years ago. The release of glacial melt water from Glacial
Lake Fridley created deep, broad, irregular troughs within the glacial lake bottom. These troughs
formed the Rice Creek Chain of Lakes and associated wetland complexes of present day, as well
as numerous other lake chains to the northwest and southeast of Lino Lakes.
The glacial history of Lino Lakes resulted in complex patterns of surficial geology, hydrology,
and soil associations that remain as important influences on development, agricultural patterns
and natural resources conservation opportunities within the city. The upland soils of Lino Lakes
are typically sandy, moderately to well drained, and nutrient poor. Wetland soils are typically
shallow to deep organic peat deposits over sand or saturated sands, which occur within complex
networks of braided depressions throughout the city’s landscape. The southeastern most edge of
the city includes a small portion of a glacial till. The upland and wetland soils of this landscape
inclusion are comprised of fine-textured silt loams, loams, and clays that are poorly drained.
Topography throughout the city is generally flat to slightly undulating, and the regional
groundwater table is typically shallow below the soil surface.
Native vegetation patterns of Lino Lakes were described at the time of Minnesota’s Original
Land Survey (circa 1850), and prior to European settlement of Minnesota. Native vegetation
communities within the city prior to European settlement were primarily comprised of oak
barrens and savannas, aspen/oak forests and woodlands, dry, mesic, and wet prairies, rich fens,
poor fens, bogs, tamarack swamps, a network of shallow lakes and associated marshes, and
inclusions of mesic hardwood forest.(See Figure 2-1, Presettlement Vegetation.) Large-scale
natural processes dramatically influenced the formation, establishment, and succession of natural
vegetation patterns and natural communities within the landscape over thousands of years prior
to European settlement. These natural processes include: surface and sub-surface hydrology,
flooding, drought, herbivory, wildlife migration, plant dispersal, plant community succession,
and occasional to frequent wildfires. Over the past 150 years, the natural landscape and
5/29/2019 5
associated landscape processes have been widely altered to accommodate agricultural land uses,
development, and other human uses of the landscape.
Figure 2-1� Presettlement Vegetation
2-3
Baldwin
Lake
Rondeau
Lake
Bald
Eagle
Lake
Wilkinson
Lake
Otter Lake
Amelia
Lake
Reshanau LakeRice Lake
Centerville
Lake
Marshan Lake
George
Watch
Lake
Peltier Lake
Cedar Lake
Lilac
St
20th Ave S456721
456749
456721
456749
456714
456754
456723
456714
456754
456754
456714456714
20thAve20th Ave§¨¦35E
§¨¦35W
")53
")153
")140
")84
")84
Main
StMainStMain St
Cedar
St
HodgsonRdLake DrElm St
Birch St
Birch StLakeDrSunsetAve RondeauLake Dr EAsh St
Oak Ln
Apollo Dr62nd St N
Ash St RondeauLake Rd WCenterville RdHolly Dr4th AveHolly Dr E
Birch St
80th St E
64th St
White Bear TownshipCity of BlaineCity of Circle PinesCity of Columbus
City of HugoCity of North OaksCity of Shoreview ´
Figure 2-1
Presettlement Vegetation
Legend
City of Centerville
Aspen-Oak Land
Conifer Bogs and Swamps
Big Woods - Hardwoods (oak, maple, basswood, hickory)
Oak openings and barrens
Wet Prairie
Open Water
Right-of-Way
Municipal Boundary
Parcels
Streams
3,500 0 3,5001,750 Feet Date: 1/22/2018
5/29/2019 7
Natural Resource Inventories & Assessments
The natural resources and the natural environment of Lino Lakes represent valuable amenities
within the city. In response to mounting development pressure, significant efforts have been
made to inventory and assess the extent and quality of the city’s remaining natural resources and
to evaluate opportunities for natural resources conservation, restoration, and stewardship. Several
important studies, models, plans, and city documents have emerged and are summarized here.
These products have been based on analyses of existing extent and quality of natural resources
within the city, compliance with local, State, and Federal environmental regulatory requirements,
and the City’s desire to incorporate natural resources enhancement and stewardship into future
development plans to achieve a sustainable and contiguous parks, trails, and open space network
throughout the city. Many of the recent plans and documents build upon past studies, with the
intent that the current conditions of the natural resources within the city are identified and can be
used to implement land use regulations appropriately.
Minnesota County Biological Survey
In 1988, the Minnesota Department of Natural Resources’ County Biological Survey (MCBS)
conducted a broad-scale assessment and biological inventory of Anoka County’s most significant
remaining natural communities and rare plant and animal populations. Potential high-quality
areas were remotely identified and prioritized for further field assessment on a county-wide
scale. Within Lino Lakes, the County Biological Survey identified 23 natural community
remnants, 12 rare animal populations or rare animal nesting sites, and one rare plant population.
Although the MCBS was not able to comprehensively survey all areas within Lino Lakes, the
County Biological Survey was the best available and highest quality natural resources
information for Lino Lakes and surrounding communities for more than a decade after its
completion.
Assessment of Existing Ecological Conditions and Restoration and Management
Opportunities
In 1998, the city conducted a city-wide assessment of existing ecological conditions and
restoration and management opportunities within Lino Lakes. Data collection and interpretation
was based primarily on remote-sensing of available low-altitude aerial photography with only
limited field checking. This inventory, assessment, and analysis process resulted in the
identification of numerous contiguous natural and semi-natural potential habitat corridors within
the city. The results of the inventory were published in 1999 and served as the foundation for the
city’s Handbook for Environmental Planning and Conservation Development.
Lino Lakes Handbook for Environmental Planning and Conservation Development
In 1998 and 1999, the city developed the Lino Lakes Handbook for Environmental Planning and
Conservation Development (Handbook).The final Handbook (published in December 1999)
provided detailed guidance to enable the city to establish a viable conservation development
program, and included: a natural resources based planning model and framework, an overview of
Lino Lakes existing ecological resources, priority areas for ecological protection within the city,
action steps for protection of ecological systems, potential open space and greenway corridors, a
framework for ecological restoration and management, and principles of and guidelines for
conservation development.
5/29/2019 8
Minnesota Land Cover Classification System (MLCCS) and Natural Resources Inventory
From 2000 to 2001, the city participated in a detailed land cover classification and natural
resources inventory of the city, using the newly established Minnesota Land Cover Classification
System (MLCCS). The MLCCS survey of Lino Lakes documented all existing developed,
agricultural, semi-natural, and natural land cover types within the city (see Figure 2-2).The
MLCCS assessment and resulting natural resources inventory identified and mapped 1,978
natural community remnants and semi-natural landscapes of various ecological quality
throughout the city. Furthermore, the MLCCS inventory identified 11 additional rare plant
populations that had not previously been documented within Lino Lakes, as well as dozens of
potential natural rare species habitats that were flagged for future field checking. The MLCCS
assessment determined the ecological quality of remnant natural areas and classified each natural
area into high, moderate and low-quality areas.
Rare Wildlife and Plant Habitat Models
Using available natural resources inventory data and land cover information, and known habitat
affinities of rare animals, city staff developed a GIS based wildlife model to assess potential
habitats for rare animal populations known to occur within the city. This predictive model
identifies potential habitats for a state threatened reptile, the Blanding’s Turtle (Emydoidea
blandingii).
The city also assisted with the development of a predictive model to assess potential habitats that
could support rare plant populations within the city. The model parameters were based on
environmental data collected with historic and recent records of rare plant population records
documented within Lino Lakes and adjacent communities on the Anoka Sandplain (e.g. Blaine,
Ham Lake, and Columbus).The model analyzes available MLCCS land cover and natural
resources inventory data, as well as soils, wetlands, hydrology data, and recent aerial
photographs to determine natural and semi-natural habitats with a high likelihood of supporting
undocumented rare plant species populations.
The results of these models are used to review proposed development plans and conservation
projects, and to identify areas within the city that may require additional field survey and
assessment for the presence of rare wildlife or plant populations.
Lino Lakes Greenway System Plan
In 2004, the city updated its Comprehensive Parks, Natural Open Space/ Greenways, and Trail
System Plan (Greenway System Plan).The planning process incorporated updated and detailed
natural resources information and environmental analysis to develop a greenway system plan that
incorporated important natural resources into a contiguous network of recreational and habitat
corridors throughout the city. This program has resulted in the design and implementation of
residential conservation developments within the city that achieve ecological restoration, open
space reservation, recreational, and economic development goals of the city. This plan has been
updated for the 2040 Comprehensive Plan.
Figure 2-2. Minnesota Land Cover Classification System (MLCCS)
2-5
Baldwin
Lake
Rondeau
Lake
Bald
Eagle
Lake
Wilkinson
Lake
Otter Lake
Amelia
Lake
Reshanau LakeRice Lake
Centerville
Lake
Marshan Lake
George
Watch
Lake
Peltier Lake
Cedar Lake
Lilac
St
20th Ave S456721
456749
456721
456749
456714
456754
456723
456714
456754
456754
456714456714
20thAve20th Ave§¨¦35E
§¨¦35W
")53
")153
")140
")84
")84
Main
StMainStMain St
Cedar
St
HodgsonRdLake DrElm St
Birch St
Birch StLakeDrSunsetAve RondeauLake Dr EAsh St
Oak Ln
Apollo Dr62nd St N
Ash St RondeauLake Rd WCenterville RdHolly Dr4th AveHolly Dr E
Birch St
80th St E
64th St
White Bear TownshipCity of BlaineCity of Circle PinesCity of Columbus
City of HugoCity of North OaksCity of Shoreview ´
Figure 2-2
Minnesota Land Cover
Classification System (MLCCS)
Legend
City of Centerville
Artificial Surfaces and Associated Areas
Planted or Cultivated Vegetation
Forests
Woodland
Shrubland
Herbaceous
Open Water
Right-of-Way
Municipal Boundary
Parcels
Streams
3,500 0 3,5001,750 Feet Date: 1/22/2018
5/29/2019 10
I-35E Corridor Alternative Urban Areawide Review (AUAR)
The I-35E Corridor Alternative Urban Areawide Review (AUAR) was a proactive, citizen-driven
environmental review process that comprehensively assessed the environmental impacts of
development in a 4,600-acre growth area in the city. The AUAR was completed in 2005 and the
AUAR area is shown by Figure 2-3.The overarching goal of the project was to balance
development with natural resource conservation. The result of the AUAR process was a
Mitigation Plan that documents the actions the city will take to mitigate environmental impacts.
The AUAR and mitigation plan are updated every 5 years.
Lino Lakes Resource Management Plan (RMP)/Comprehensive Wetland Management
Plan
In 2008, as part of the integrated comprehensive planning process, the Rice Creek Watershed
District prepared a Resource Management Plan to provide a watershed-based approach to
wetland management. This process included an analysis of the city’s future land use plan to
determine the impacts of future growth on the area’s aquatic resources. A key component of the
plan was to establish a Wetland Management Corridor. This corridor includes high priority
wetlands (see Figure 2-4), natural open space (uplands), greenway connections and marginally
suitable development areas. The plan identifies several strategies to mitigate development
impacts, particularly within the Wetland Management Corridor. This study was approved by the
Board of Water and Soil Resources as a Comprehensive Wetland Management Plan in 2008.
Lino Lakes Special Area Management Plan (SAMP)
In 2010, Lino Lakes developed this plan with the intent that it could be used to expedite US
Army Corps of Engineer’s Section 404 Permits within the city. The purpose of the SAMP was to
provide a watershed-based and conservation-based framework for aquatic resource management,
particularly as development and redevelopment occur within the city. The study included an
inventory of wetlands and other land cover within the city using MLCCS process. The function
of the wetlands was also assessed to identify high priority wetlands and potential wetland
restoration sites. These data were used to determine criteria for the SAMP that would maintain
wetland function.
Natural Resources Revolving Fund Plan
In 2017, the City of Lino Lakes undertook a study to evaluate the potential for establishing
wetland banks at several locations throughout the city. The study identified six sites (shown on
Figure 2-5) for potential wetland banks. The goal of the plan is to establish a self-funding
mechanism to acquire, protect, and enhance high value ecological areas within the city. The
wetland banks would provide local opportunities to mitigate wetland impacts for both public and
private projects in Lino Lakes. The proceeds will provide for ongoing stewardship and expansion
of the greenway system.
Figure 2-3� I-35E Corridor AUAR Area
2-6
Baldwin
Lake
Rondeau
Lake
Bald
Eagle
Lake
Wilkinson
Lake
Otter Lake
Amelia
Lake
Reshanau LakeRice Lake
Centerville
Lake
Marshan Lake
George
Watch
Lake
Peltier Lake
Cedar Lake
Lilac
St
20th Ave S456721
456749
456721
456749
456714
456754
456723
456714
456754
456754
456714456714
20thAve20th Ave§¨¦35E
§¨¦35W
")53
")153
")140
")84
")84
Main
StMainStMain St
Cedar
St
HodgsonRdLake DrElm St
Birch St
Birch StLakeDrSunsetAve RondeauLake Dr EAsh St
Oak Ln
Apollo Dr62nd St N
Ash St RondeauLake Rd WCenterville RdHolly Dr4th AveHolly Dr E
Birch St
80th St E
64th St
White Bear TownshipCity of BlaineCity of Circle PinesCity of Columbus
City of HugoCity of North OaksCity of Shoreview ´
Figure 2-3
I-35E Corridor AUAR Area
Legend
City of Centerville
AUAR Area
Open Water
Right-of-Way
Municipal Boundary
Parcels
Streams
3,500 0 3,5001,750 Feet Date: 1/22/2018
Figure 2-4� High Priority Wetlands
2-7
Baldwin
Lake
Rondeau
Lake
Bald
Eagle
Lake
Wilkinson
Lake
Otter Lake
Amelia
Lake
Reshanau LakeRice Lake
Centerville
Lake
Marshan Lake
George
Watch
Lake
Peltier Lake
Cedar Lake
Lilac
St
20th Ave S456721
456749
456721
456749
456714
456754
456723
456714
456754
456754
456714456714
20thAve20th Ave§¨¦35E
§¨¦35W
")53
")153
")140
")84
")84
Main
StMainStMain St
Cedar
St
HodgsonRdLake DrElm St
Birch St
Birch StLakeDrSunsetAve RondeauLake Dr EAsh St
Oak Ln
Apollo Dr62nd St N
Ash St RondeauLake Rd WCenterville RdHolly Dr4th AveHolly Dr E
Birch St
80th St E
64th St
White Bear TownshipCity of BlaineCity of Circle PinesCity of Columbus
City of HugoCity of North OaksCity of Shoreview ´
Figure 2-4
High Priority Wetlands
Legend
City of Centerville
High Priority Wetlands
Wetlands
Open Water
Right-of-Way
Municipal Boundary
Parcels
Streams
3,500 0 3,5001,750 Feet Date: 1/22/2018
Figure 2-5� Wetland Bank Areas
2-8
Baldwin
Lake
Rondeau
Lake
Bald
Eagle
Lake
Wilkinson
Lake
Otter Lake
Amelia
Lake
Reshanau LakeRice Lake
Centerville
Lake
Marshan Lake
George
Watch
Lake
Peltier Lake
Cedar Lake
Lilac
St
20th Ave S456721
456749
456721
456749
456714
456754
456723
456714
456754
456754
456714456714
20thAve20th Ave§¨¦35E
§¨¦35W
")53
")153
")140
")84
")84
Main
StMainStMain St
Cedar
St
HodgsonRdLake DrElm St
Birch St
Birch StLakeDrSunsetAve RondeauLake Dr EAsh St
Oak Ln
Apollo Dr62nd St N
Ash St RondeauLake Rd WCenterville RdHolly Dr4th AveHolly Dr E
Birch St
80th St E
64th St
White Bear TownshipCity of BlaineCity of Circle PinesCity of Columbus
City of HugoCity of North OaksCity of Shoreview ´
Figure 2-5
Wetland Bank Areas
Legend
City of Centerville
Existing Wetland Bank
Potential Wetland Bank Site
Greenway System
Open Water
Right-of-Way
Municipal Boundary
Parcels
Streams
3,500 0 3,5001,750 Feet Date: 1/22/2018
5/29/2019 14
The resource inventories, studies and field investigations completed since the early 90’s have
identified for the public’s benefit, unique resources within the community, and helped shape
conservation policies and procedures necessary to preserve and or enhance those resources in the
years to come. However, the environment is not static and threats to these resources are
continually evolving. The following listing includes unique resources identified within the
community as well as potential threats.
Unique Natural Resources
• The City of Lino Lakes is divided diagonally by two primary glacial soil formations, sand
deposits (west side of city) and glacial clay deposits (east side of the City). These
different formations provide for a significant diversity of plants and animals in a
relatively small geographical area. Rare and endangered vegetation can be found in the
numerous groundwater dependent wetlands of the sandplain. Water willow and
cranberry bogs, along with other unique species, can be found in the clay soils
predominately supporting the westerly extent of the Eastern Hardwood forest.
• The combination of poorly drained soils and high water tables have left the City with an
abundance of wetlands. The City and watershed did an assessment of the function and
value of local wetlands in the 2008 Resource Management Plan. Unique wetlands are
distributed throughout Lino Lakes and form what we now call wetland management
corridors, the basis for the City Greenway system. These wetlands where identified
based on number of factors but primarily for vegetative diversity and their importance to
minimizing phosphorus loading to our lakes.
• The 15 lakes within the community are very unique features that give residents the joy of
swimming, fishing, boating, and wildlife watching.
• The City is home to a very unique Blue Heron colony on Peltier Island. Herons are a big
part of the Lino Lakes culture. Once the 2nd largest in the 7 county metro area the
rookery was nearly decimated by several environmental influences in the late 1990’s. A
strong local commitment to management of the rookery has brought it back.
• Ground water in Lino Lakes is abundant and high quality.
• Soils of the Sandplain offer good opportunities to save surface water resources from loss
downstream by infiltrating storage in subsoils and wetlands.
Threats to Lino Lakes Resources
• Development can either work around and save rare features of Lino Lakes, or destroy and
mitigate the loss by restoring an equal area of loss somewhere else than Lino Lakes.
Careful planning and understanding of the threatened and endangered species of Lino
Lakes can most often be saved with buffering and avoidance.
5/29/2019 15
• The majority of lakes within the City are listed as impaired by the MPCA for both
biological and nutrient degradation.
• The Heron Colony must be monitored and managed, to prevent the loss of the colony
from predation and disturbance.
• Our forests are threatened with Oak Wilt, Emerald Ash borer and a multitude of other
invasive pests and plants that can degrade our unique environmental areas and decrease
property values.
• Our ground water must be protected from pollution. Salt use may someday compromise
this resource. Unfiltered infiltration water can pollute our Drinking Water Service
Management Areas.
• Soil Compaction destroys soil infiltration and soil productivity, and leads to higher rates
of stormwater and irrigation water runoff. This is a very large threat in our development
areas.
5/29/2019 16
ENVIRONMENTAL SERVICES DIVISION
Essential Functions and Tasks
Natural Resources/Forestry/Solid Waste staff performs numerous functions to ensure that the
city’s natural resources are preserved and enhanced as this community matures. Functions vary
from preventing storm water pollution and conserving the city’s water supply to recycling and
insect/disease control; all with the goal of promoting environmental sustainability.
The division is broken into four functional groups to more accurately describe the independent
activities undertaken. These include Natural Resources, Forestry, Solid Waste, and
Administration.
The division consists of one full time position of Environmental Coordinator. The
Environmental Coordinator is supported by a part time recycling intern and two summer
seasonal employees.
NATURAL RESOURCES MANAGEMENT
CODE ENFORCEMENT (NR1)
Staff assists in the administration and enforcement of the city’s nuisance ordinance including
weeds and diseased trees. Activities include complaint response, site inspections, enforcement
notices, reinspections, ordering of work if not resolved, and billing procedures.
TASKS
NR1.1 Illicit Discharge (City Code § 405)
Manage Surface Water Management rules for construction site pollution and
residential pollution (such as grass clippings in the road). Door hangers are printed
for illicit discharge. Manage more serious incidents, according to protocol, by
contacting the duty officer.
NR1.2 Weeds (City Code § 904)
Respond to weed complaints immediately. Process is to be documented in
PermitWorks Enforcement module. Submit work order if correction is not made.
Coordinate with Public Works to correct, invoice property owner, and/or set property
assessment at the end of the year.
NR1.3 Construction Site Maintenance and Inspection (City Code § 1011)
Erosion Control inspections for new construction are scheduled daily. During
building season, complete a run through inspection of all erosion controls weekly.
Ensure weekly and post rainfall inspections are being performed by the permit holder.
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Communicate with permit holder of deficiencies and follow time frames established
for correction.
NR1.4 Conservation Area Encroachment Inspections
Annually inspect conservation easement boundaries. Respond to citizen complaints or
surveyed encroachments of conservation area.
PARK/OPEN SPACE MAINTENANCE AND INSPECTION (NR2)
Staff inspects, manages, and enforces over 170 acres of city owned conservation areas. Staff
coordinates with maintenance crews in the restoration of public wetlands, ponds and wetland
bank areas, involving a number of activities including site preparation, seeding chemical
controls, burning, mowing, buck thorn removal, and erosion control. Staff inspects sites for
compliance, public stormwater infrastructure, proposes maintenance recommendations, wetland
and drainage easement encroachments, monitors vegetation reestablishment, and inspects for
completeness.
TASKS
NR2.1 Native Vegetation – City Open Space and Conservation Areas
General. Areas with native plantings require management. A management plan
should be prepared for all conservation areas. These are guidelines because much of
this is adaptive. Weather and site specific performance will dictate what can and
should be done. Natives generally need weed control one to two times a year. The
standard practice for these areas is to manage undesirable vegetation for the first 3
years by mowing at appropriate times and using chemicals to kill undesirable plants.
Year 4 or 5 would include a burn, if possible. In most cases, it’s possible unless areas
come within 50 feet of a structure.
Inspect areas of the City that have native vegetation such as water treatment system
areas including raingardens, treatment ponds, park/open-space areas with established
vegetation, and a few school nature areas. Take corrective action when needed.
Schedule work to maintain the integrity of restored areas or manage the restoration of
new areas.
Prescription burns of native areas, where possible, should be done every 3 to 5 years.
Buckthorn removal is ongoing.
Coordinate maintenance with Parks Department.
Native plant areas that require ongoing management are included in Appendix B.
NR2.2 Foxborough and The Preserve Conservation Areas
Open space within Foxborough and The Preserve residential areas require annual
maintenance. Review maintenance plans submitted for HOA Conservation areas
each year and make decisions with the HOA’s on appropriate actions. The work can
be done by the City and fees collected are based on fee schedule (Public Works
standard costs for equipment/operator deployment).
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Foxborough conservation area maintenance is funded by the endowment held by the
City and HOA dues. Ensure dollars are received from association in January.
The Preserve conservation area maintenance is funded by HOA dues. Monitor the
Preserve funds for project management.
NR2.3 Wetland Banking and Habitat Restoration
The City owns two (2) wetland banks; Wollan Park (BWSR Bank Acct. 1122) and
Otter Lake Road (BWSR Bank Acct. 1601). Existing banks require ongoing
management in accordance with the banking approvals. A percentage of bank sales is
set aside to maintain restoration efforts.
Opportunities to restore or protect habitat will surface frequently in development
projects. This is done through development agreement, City/RCWD rules for
buffering, and the development of wetland management corridors.
Requirements for initiating a new wetland bank can be found online through the
BWSR website. It is standard practice to develop a budget up front in relation to a
restoration plan. Set a budget and expect everyone to stick to it; however, anything
can happen with restoration techniques and adaptability (budget contingency) is also
important.
Wetland banking/Restoration requires the removal of Reed Canary thatch. Timing is
critical and the process is very adaptive. The ideal time is when the thatch layer is
thawing out in the spring before subsoils/muck thaws and when a track-type unit can
get on the wetland and skin or cut out the reed canary thatch. Mucky soils underneath
must be frozen while the thatch is thawed. Most of the time there is about a 1 to 2
week window of opportunity to do this. Tracking closely is necessary.
Train a public works employee/equipment operator to get familiar with process (with
the approval of the Public Services Director). There is a definite “feel” to being on a
frozen wetland that is rapidly thawing from the top down.
Wetland banking and restoration will also involve the use of herbicides or grass
killers. Timing and the right chemical is important.
Control all volunteer woody plants that move in, unless they are desired. Oaks will
sometimes come in and won’t move around – Oaks are ok.
Answer questions to perspective credit buyers. Facilitate sale based on agreed upon
prices with Community Development Director. All sales subject to City Council
approval.
5/29/2019 19
PROGRAM MANAGEMENT (NR3)
NPDES – National Pollutant Discharge Elimination System
Staff is responsible for coordinating storm water pollution prevention programs in accordance
with the city’s National Pollutant Discharge Elimination System (NPDES) Phase II permit.
These activities include Public Education and Outreach, Public Participation and Involvement,
Illicit Discharge Detection and Elimination, Construction Site Storm Water Runoff Control, Post
Construction Storm Water Management, and Municipal Pollution Prevention/Good
Housekeeping.
TASKS
NR3.1 Annual Reporting
Minnesota Pollution Control Agency (MPCA) will distribute the annual report form
in January of each year. NPDES annual report is due in June. Coordinate data entry
with City Engineer (WSB) and Public Works (Streets Supervisor).
NR3.3 Illicit Discharge Detection and Elimination, Construction Site Storm Water Runoff
Control, Post Construction Storm Water Management, and Municipal Pollution
Prevention/Good Housekeeping.
Minnesota Pollution Control Agency (MPCA) will distribute the annual report form
in January of each year. NPDES annual report is due in June. Coordinate data entry
with City Engineer (WSB) and Public Works (Streets Supervisor).
NR3.4 Erosion Control Inspections
In construction areas, when the ground starts freezing up, perimeter control may
switch to Bio-logs. The reverse happens in the spring. Staff ensures conformance to
this standard and all other standards including weekly and monthly inspection
requirements of the permit holders and follow-up corrections.
Environmental Coordinator completes a pre-permit inspection and a post foundation
inspection for new construction projects. Contractor must be notified of any repairs
that need to be made. Inspection results are given to the Building Permit Technician
immediately following inspections.
Issues typical identified include stockpile management, cover for disturbed areas,
tracking off site issues, and storm drain protection. Make sure construction storm
water permit holders and developers/builders are doing their job. A state erosion
control certification is necessary. Any vegetation control with chemicals requires a
state license.
Enforce the City, RCWD, State, and Federal requirements year-round.
NR3.5 Private Pond Inspections
Privately owned Best Management Practices (BMP) such as storm ponds, infiltration
basins, and appurtenances must be inspected annually by owner. Pond inspection
forms should be mailed by March to all owner/operators. Completed inspection forms
5/29/2019 20
need to be returned to the City and any necessary corrections completed by end of
year. Follow up inspections may be necessary.
NR3.6 Culvert Blockages/Flooding
Check pipes controlling water flow in Section 5, Branch 8 of ACD 10-22-32 during
wet periods. Common for Beavers to block outflow. Refer trapping needs to
licensed trappers.
NR3.7 Well Head Protection Implementation
Wellhead protection areas are areas of the drinking water service management areas
that have different vulnerabilities and susceptibilities to pollution. Reduction of risk
for ground water pollution is done through implementing the well head protection
plan, good subdivision planning, public education efforts (quarterly newsletter),
working with the Anoka County Wellhead Protection Group, participate in joint
powers group well head sealing, and elimination of discovered point pollution
sources.
NR3.8 Water Conservation
Assist with public education and program implementation associated with City water
conservation efforts. Includes grant writing, subdivision review, water reuse
planning and landscaping requirements/inspections.
Landscaping requirements include soil remediation. Purpose is to encourage deeper
root growth, reduce water runoff, and minimize need for irrigation. This performance
standards includes minimum top soil depths and incorporation of top soil with native
soils.
PROJECT REVIEW/STAFF REPORTS (NR4)
Staff assists in the review of plans for new developments, subdivisions, building and other land
use submittals to insure conformance with the city’s environmental requirements. Staff works
with neighborhood groups and associations, Rice Creek Watershed District, Vadnais Lake Area
Water Management Organization (VLAWMO) and other entities regarding the implementation
of projects and conservation development within new subdivisions.
TASKS
NR4.1 On a monthly basis, the Environmental Board reviews incoming applications from a
natural resources perspective. The Environmental Coordinator must use a wide range
of studies, models, ordinances, rules, developed over the years concerning resources
in the City of Lino Lakes, as well as conventional resource wisdom.
The report writer must also communicate with City Planner, City Engineer, other
government agencies, and consultants in forming staff reports concerning project
review. Studies that are incorporated into the comprehensive plan form the basis for
the preservation of Lino Lakes unique resources include: the Resource Management
Plan, the RCWD rules, and the City Surface Water Management Plan. The City
Zoning Code must be looked at as it relates particularly to landscape issues (City
Planner completes landscape calculations) and Storm Water Pollution Prevention
Plans (SWPPP) for conformance to NPDES standards.
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Usually this is the first report done on a project (before Planning and Zoning Board
and Park Board) so generally there is about a week and a half to review and write a
staff report on findings, recommendations and comments.
Following the meeting, summarize recommendations and comments for Planning and
Zoning Board meeting and City Council meetings.
RESOURCE MANAGEMENT/INVENTORY (NR5)
TASKS
NR5.1 Heron Management
Maintain heron rookery – Protect from raccoons, minimize number of raccoons, and
annually assess needs.
Make contact with volunteers at the end of the year to plan a maintenance and/or
inventory trip to the island. Volunteers list is located on Shared Drive. Partners
include Eagle Brook Church (has gathered stick materials for nesting birds in the
past), Anoka County Parks, and any other city residents interested.
Make contact with 1801 77th Street (Strand/Coffey property) to use their property for
access. Purchase metal flashing, screws, and washers from Menards or Home Depot.
A $2000 grant was donated several years ago by the Blaine Jaycees for this. Must
track the expenditures. Pick a day when you still have ice to have a maintenance day
in late January or February. Get screw guns, batteries, tin snips, and ladders from the
shop. Volunteers will have a picnic over campfire on island after work is done. Work
must include removing bridging opportunities for raccoons, new nesting trees
flashing, and inventory update. The rotary club is interested in tree planting to replace
lost Ash trees from EAB. This should be done in the fall after birds have left.
NR5.2 Data Collection
The City collects infrastructure data using Global Positioning System (GPS) and
Trimble hardware and software. Data collected includes new trees and conservation
easements (signs and lines). Use Trimble to find property lines and sign locations.
All new signs must be GPS’d for permanent records. Rectify data through US Coast
Guard Station and create ArcView.Shp files. Get information into Cartegraph when
needed.
NR5.3 National Heritage Database
Enter into periodic agreement with the MN DNR to have access to the NHIS data.
Maintain an inventory of other rare plant and animal species as they are found. Use
the prediction models developed by Lino Lakes Environmental and Critical
Connections to map new areas and overlay on to new development proposal sites.
NR5.4 Minnesota Land Cover Classification System updates
Update and modify MLCCS layers as development is takes place, new information
becomes available and/or restoration activities are completed.
5/29/2019 22
FORESTRY
Staff coordinates and supervises annual tree plantings on public properties, parks and boulevards,
reforestation contract plantings, and special projects to promote safe and sustainable forest
management within the city. Authority and responsibilities are established under City Code §
1008.
BLVD TREE MAINTENANCE/HAZARDOUS REMOVAL (F1)
Staff supervises and participates in tree initiatives including trimming, removals, chemical
treatment for insects, disease and nutrient problems. Staff coordinates trimming of
approximately 500 boulevard trees annually.
TASKS
F1.1 Tree Maintenance
Coordinate with Public Works or contractor crews on pruning, tree maintenance, and
removals.
• Enter maintenance into Cartegraph
• GPS new trees into .Shp files then have them changed to Cartegraph files
• Update Cartegraph when something changes with tree
• Update data dictionary in Trimble periodically (new species added for
example)
F1.2 Pruning
City crews prune in winter months between snow events.
F1.3 Tree Maintenance
Many calls will be received concerning the health and vigor of not only public trees
but private trees as well. Environmental Coordinator should be on top of current
issues and able to respond to them.
F1.4 Tree Removals
Hazardous trees located on public property should be identified for removal.
Depending on the situation, removals can be done by City. Sometimes if there is a
more technical tree then bid the removal out. EAB blocks of trees on streets can be
bid out. There is money appropriated for this in the annual budget.
F1.5 Storm Damage
Storms sometimes damage trees. Decisions on whether to fix or remove and replace
damaged trees must be made. If Oak trees are damaged in April, May, or June,
seriously consider implementing control measures for Oak Wilt; or radically prune
damaged areas out of trees and paint wounds immediately. Communicate
information to residents after a storm. Might have to door knock. There is money
also appropriated for storm damage replacement. The priorities must be weighed if
there is an oak wilt situation that must be controlled on city property.
F1.6 Registration
Register with the Tree Care Registry in January each year - mail fee and application.
This is a mandatory fee because we perform in-house tree work.
F1.7 Tree Preservation
5/29/2019 23
Staff reviews building development plans to ensure preservation of trees in tree
protection areas. Site inspection are completed prior and during construction to
ensure conformance with tree preservation plans. Assistance is provided to
homeowners and builders to protect existing trees or coordinate tree mitigation.
Ensure that new development meets code for saving trees and take advantage of the
opportunity to remove tree threats like EAB, structurally unsound trees, or
undesirable trees. Periodically inspect construction site for intact tree preservation
fence.
BOULEVARD TREE PLANTINGS/TREE SALES (F2)
Staff plans, bids, and contracts annual plantings of boulevard trees for new properties and
replacement of existing trees.
TASKS
F2.1 Boulevard Tree Planting
Late winter or early spring, inventory new developments for anticipated boulevard
plant readiness. Develop a list of species and numbers and send out for bids. Almost
always this list changes as planting time gets closer. For example, a house was
finished building sooner than was anticipated or a storm caused a remove and replace
situation.
If you wait too long and you won’t get the trees you want. Recommend getting 3
bids-Midwest, Margolis, and an additional company. Have to estimate if house will
be done in time sometimes. Contractor calls in locates and the city stakes location.
Send a letter out to residents explaining process. Trees must be in line going down
street. Stakes can move laterally back and forth on lot as long as utilities are clear.
No planting 30 feet from a corner. Mix species, no more than 15% of any species in
planting areas. May be ok to mix species on each street. Environmental Coordinator
to supervise the planting of trees. Trees are recorded in Cartegraph.
Inspect new trees for 1 year warranty next spring or before 1 year warranty expires.
Have dead trees replaced.
Water new trees when droughty with City tanker. Started using Gators on new trees.
F2.2 Tree Sale
Coordinate an annual tree sale through the City and Anoka Conservation District.
Write an article for tree orders in Winter Newsletter. Order trees based on signups
and hand out during annual recycling day. Get volunteers to help with tree
disbursement.
5/29/2019 24
TREE DISEASE CONTROL (F3)
Staff works with residents on education of identifying incidents and controlling various tree
infections that occur in the city. Staff coordinates disease control efforts including notification
and enforcement of City Code violations. Diseases currently present in Lino Lakes Oak Wilt,
Diplodia, Emerald Ash Borer, Pine Bark Beetle, and Japanese Beetle.
Many calls come in with questions and concerns. Usually establish a list and resident
complaints/concerns in blocks.
TASKS
F3.1 Oak Wilt/Diplodia
Oak wilt starts showing and calls come in around 4th of July.
Enforce in cases where a disease will travel from one property to another and is
controllable. Adaptive example: Parts of the City were hit on June 11, 2017 with a
hail storm that damaged the bark on trees at a vulnerable time for Oak wilt and
Diplodia blight on pines in the Pine Vista subdivision. Pine Vista trees are over
stocked and need thinning. A private land forestry consultant (DNR listed forester)
should be hired by the neighborhood to scale a logging project. Residents can get
paid to remove dying trees this way. There is another resident on the west side of
Lake Drive that has very large conifers he wants to remove. They should include this
in the sale.
Refer work needed to get done to Paul Kajawa (612-282-2647), Rainbow Tree, S and
S Tree, or any other tree company proficient in oak wilt control. Paul has a vibratory
plow and can chemically treat and remove trees.
F3.2 Emerald Ash Borer
Staff is responsible for preparation, updating, and implementation of the Emerald Ash
Borer management plan. Conducts training and supervision of seasonal employees to
complete tree injections. Coordinates with public works to identify infestations and
working with the public on control.
• Follow EAB plan, update periodically.
• Most EAB is adaptive. Train seasonal staff to apply EAB chemicals. They
need to be licensed. License must be renewed every 2 years. Full time staff is
also licensed. Treating boulevard trees remain on a three year cycle to give
time to remove and replace.
• Work with residents on “what to do” with EAB.
• Maintain list of consultants for residents for tree work including EAB and
Oak wilt.
• Refer work needed to get done to Paul Kajawa (612-282-2647) who can
chemically treat and remove trees. Rainbow Tree can sell the equipment and
chemicals to people and train them how to inject a tree.
5/29/2019 25
• Maintain tree marshalling site and coordinate with District Energy for
disposal.
SOLID WASTE
REPORTING/LICENSING/COMPLAINTS (SW1)
Staff administers and oversees solid waste removal and licensing in the city including response
to resident inquiries and complaints. Staff reviews applications for waste haulers, collects fees,
and issues licenses according to city ordinance.
TASKS
SW1.1 Solid Waste Hauler Licensing
Licensing for solid waste haulers are valid from June 1 to May 31. Begin renewal
process in April.
SW1.2 SCORE Report
SCORE Reports due January and July.
SW1.3 SCORE Grant Application
County sends out SCORE grant applications in September. Application due at the
end of October.
PROGRAM IMPLEMENTATION AND SUPERVISION (SW2)
Staff administers the recycling program in the city and implements budgeting and reporting
requirements for receipt of SCORE funding. Recycling programs include monthly recycling
day, annual recycling day, organics recycling, and textile recycling.
TASKS
SW2.1 Solid Waste Budget
Balance the SCORE budget with the City solid waste budget. It is highly
recommended that all expenses and tonnages be updated in databases as they occur.
Keep an updated spreadsheet as expenditures and incomes.
SW2.2 Textile Recycling
Simple Recycling contract renewal due March of each year. City will review
progress and renew agreement on a yearly basis.
SW2.3 Organics Recycling
Monitor organic programs and assist residents with these programs (curbside and
drop-off). Monitor organics drop off carts. Update organic drop-off participants list
periodically. Send out emails to participants as needed.
SW2.4 Aluminum Cans
The City Council started an initiative to collect aluminum cans from businesses. If a
business is large enough, they must by state law recycle 3 things. Their lunchroom
cans can be 1 of the 3. Check cans for fullness periodically and call ACE when full
5/29/2019 26
to pick up. Get the tonnages for reporting purposes. The City receives a check in
return. Be persistent and communicate with hauler until check is received. Public
Works picks up comingled recyclables from the parks that go in a dumpster at the
shop. Make sure this stays clean. If trash accidently accidentally thrown in, the
protocol is to dumpster dive. Call Ace when full.
RECYCLING EVENTS (SW3)
The City operates 12 monthly recycling events including the annual Spring Recycling Day.
TASKS
SW3.1 Monthly/Annual Recycling Days
Manage the monthly Recycling Saturday with the current vender(s). Monthly
Recycling Saturday was the cities first Enhancement Grant project. Monthly
Recycling Saturday is on the 3rd Saturday of each month. The moto of “We Recycle
at Home, at Work, and on the Go” was part of the initial enhancement grant. Promote
this.
In the winter, make sure parking lot is plowed at Lino Park.
Advertise changes to Recycling Saturday. Postcards must reach houses at least a
week before recycle day. A newspaper ad can also be used. We have consistently
published an advertisement in the Quad Press each year for annual Spring Recycling
Day that reaches readers the week before recycle day.
SW3.2 Tires
Tires are collected at monthly Recycle Day and brought to the shop for temporary
storage. Pick up is coordinated with Metropolitan Mosquito Control based on
volume of tires.
ADMINISTRATION
ADMINISTRATION (A1)
TASKS
A1.1 ENVIRONMENTAL BOARD LIAISON
Staff serves as liaison to Environmental Board, prepares reports, presents at
meetings, and assists with carrying out the goals of the Environmental Board.
Environmental Board meetings are held the last Wednesday of every month. Meeting
packets must be ready to be sent out the Friday prior to the last Wednesday of the
month.
Goals are developed annually for the Environmental Board for the following year.
Start on this in October.
5/29/2019 27
In addition to project reviews, projects to be brought to the Environmental Board
include a wide spectrum of topics, some that surface because of merging issue, some
to educate the Environmental Board so that they can make educated decisions,
recommendations, and comments. Some are simply update reports for
Environmental, Forestry, or Solid Waste issues.
During warmer months, field trips are scheduled before the regular meeting to look at
previous completed projects.
A1.2 PROJECT MANAGEMENT
Staff assists with local project initiatives and coordination with adjacent jurisdictions.
A1.3 BOARDS/COMMITTEE AFFILIATIONS
Anoka Conservation District 2020-2029
Anoka County Cooperative Weed Management
Anoka County Solid Waste Abatement Advisory Team (SWAAT)
Anoka County Solid Waste Management (SWAC) – Monthly meetings held at
Bunker Hills on the 3rd Wednesday of each month
Anoka County Water Resources Task Force
Anoka County Wellhead Protection Group
Minnesota Shade Tree Task Force
Rice Creek Watershed District Technical Evaluation Panel (RCWD TEP)
Vadnais Lake Area Water Management Organization – Technical Commission
(VLAWMO TEC) – Monthly meetings
A1.4 SHORT RANGE PLANNING
Staff undertakes a number of projects initiated by advisory boards and/or city council
to address implementation of the comprehensive plan, changes in state law, or city
policy changes.
A1.5 GIS
Staff maintains the Geographic Information System database and mapping for natural
resources and forestry including rare plant and animal populations, restoration areas,
diseased trees, and well head protection. Keep an updated map of new trees planted,
wetland delineations, conservation easement signs and wetland buffer signs. Process
GIS data to Cartegraph for trees.
A1.6 GRANTS
Keep a look out for grants that can help with Environmental including surface water
and forestry.
Recycling is one large grant.
A1.7 TRACK ASSETS
Track the condition and status of stormwater structures, prairie areas and tree health
throughout the year. Most of this is done on the go or in response to a resident
inquiry.
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PUBLIC EDUCATION AND ASSISTANCE (A2)
Staff coordinates environmental education and offers programs in schools and courses to the
general public. Staff provides information to the public via handouts and the city website. Staff
coordinates and participates in city events such as Earth Day, Recycling Day, and Arbor Day.
This department also assists the public with a variety of issues including disease control, storm
water pond quality, water quality improvements, native plantings, rain gardens, and weed
control.
TASKS
A2.1 EARTH DAY
Start making contact with Wargo Nature Center at the end of the calendar year to
start planning Earth Day.
A2.2 ARBOR DAY
Start making contact with, either, Lino Lakes Elementary and/or Rice Lake
Elementary after the first of the year. (If they want DNR trees, order them when the
notice comes out). Get a large tree to plant, make sure there is proclamation and
agenda. Invite Mayor.
A2.3 CITY NEWSLETTER
Spring/Summer: Stormwater article
Fall: Stormwater article, tree sale information article
Winter: Stormwater article, tree sale information article
A2.4 STORMWATER
Routinely promote stormwater education through visiting schools, Earth Day, Arbor
Day, City Newsletter, and all other forms of media.
Work with Boy Scout and other service institutions to implement annual storm drain
stenciling program. Goal is to mark 200 catch basins annually.
A2.5 WETLANDS
Wetlands are a unique and very abundant resource in Lino lakes. Many calls come in
to ask what can be done in and around wetlands. Work with the Rice Creek
Watershed District Technical Evaluation Panel (RCWD TEP) on impact and
delineation issues in new proposed project areas.
A2.6 RESIDENT ASSISTANCE
Respond to resident questions and concerns. A spectrum of issues will come up from
recycling day questions to smelly ponds to tree related questions to wild animal
issues.
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APPENDIX A
POSITION DESCRIPTION
TITLE: Environmental Coordinator
REPORTS TO: Community Development Director
DEPARTMENT: Community Development
STATUS: Full-time/Union/Exempt
POSITION SUMMARY
Administers the City’s environmental program, forestry, erosion control and MS4/ National Pollution
Discharge Elimination System (NPDES) permitting. Other responsibilities include coordinating the recycling
program and managing the water conservation program.
ESSENTIAL DUTIES & RESPONSIBILITIES
General:
1. Serve as staff liaison to the Environmental Board, Rice Creek Watershed District, Vadnais Lake Area
Water Management Organization (VLAWMO), Anoka County Solid Waste group as well as other
boards and commissions.
2. Perform administrative duties including budget preparation, monitoring expenses, writing grants and
preparing staff reports for environmental programs.
3. Respond to citizen questions, complaints and requests for assistance related to native landscaping,
drainage, erosion control, tree preservation and water quality issues.
4. Develops environmental education opportunities and implements an environmental outreach program.
Prepares informational pieces and public service announcements as necessary.
5. Train and supervise seasonal interns and recycling intern.
6. Prepare surveys and take inventories of various environmental elements of the community to include
indigenous/migratory animals and plants.
7. Assist with the development of ordinances and policies to protect and enhance environmental
resources of the community.
8. Perform weed and code compliance inspections.
9. Review development proposals for conformance with City environmental development standards
including landscaping and stormwater management.
Surface Water Resources/Ground Water/Wellhead Protection:
10. Coordinates implementation of National Pollution Discharge Elimination System (NPDES) program.
11. Coordinates annual inspection of privately maintained storm water permit best management practice
(BMP) sites for functionality and compliance.
12. Coordinates wellhead protection activities in the City.
13. Implements and administers the City’s erosion control program including plan review, site inspection
and follow-up. Investigates and follows up on illicit discharge complaints.
5/29/2019 30
14. Coordinates and assists with protection and vegetative management of City owned native vegetation
areas including wetland banking areas.
Recycling and Solid Waste:
15. Coordinates the City’s solid waste and recycling programs.
Forestry:
16. Administers City Emerald Ash Borer plan diseased tree control program, tree inventory, hazard tree
assessment for public property trees, tree preservation plan reviews, maintain public property trees
(replace, plant fertilize, pest control, etc.) and coordinates boulevard tree planting.
Other:
17. Performs other duties as assigned or apparent.
Note: These examples are intended only as illustrative of various types of work performed, and are not all-
inclusive. The City reserves the right to add, modify, change or rescind work assignments.
REQUIRED KNOWLEDGE AND ABILITIES
1. Ability to communicate effectively and professionally with co-workers and members of the public; the
ability to maintain effective working relationships.
2. The ability to work independently and set departmental goals and work plans.
3. The ability to attend evening meetings when required.
4. Knowledge of environmental trends, development procedures, habitat preservation and methods of
modern forestry techniques.
5. The ability to use Microsoft Office, including Microsoft Word, Excel, and PowerPoint.
6. Knowledge of commonly used budgeting practices, as well as the ability to perform arithmetic
computations.
7. Skill in the application of time and project management principles.
MINIMUM QUALIFICATIONS
1. Bachelor’s Degree in Environmental Science, Environmental Planning, Forestry Management
Biology, Soil Sciences or related field.
2. One year experience in environmental or natural resources.
3. Valid driver’s license.
4. MN Tree Inspector’s Certification within one year of hire.
5. MN Erosion Control Installer Certification within one year of hire.
PREFERRED QUALIFICATIONS
1. Three to five years of experience in planning, forestry or environmental services.
2. Master’s degree in Environmental Science, Biology, Soil Sciences, Civil Engineering or related field.
3. Experience or ability to work with GIS.
4. Certified Wetland Delineator.
5. Licensed pesticide applicator.
5%
10%
5%
5%
10%
10%
10%
10%
5%
10%
10%
5%
5%
Forestry
30%
Natural Resources Management
Code Enforcement = 5%
Park/Open Space Maintenance = 10%
Program Management = 5%
Project Review/Staff Reports = 5%
Resource Management Inventory = 10%
Forestry
Blvd Tree Maintenance/Hazardous Removal = 10%
Blvd Tree Plantings/Tree Sales = 10%
Tree Disease Control = 10%
Solid Waste
Reporting/Licensing/Complaints = 5%
Program Implementation and
Supervision = 10%
Recycling Events = 10%
Administration
Administration = 5%
Public Education and Assistance = 5%
5/29/2019 32
APPENDIX C
Native Area Maintenance Sites
Location Resource Resource ID Notes
Wollan Park
• Wetland Bank
• Native Plantings
Interpretative park
Annually check for reed
canary grass and
buckthorn. Spray out
and cut the Buckthorn
and treat with Garlon at
least 2 times a year.
Instead of a weekly
mowing schedule, the
park needs to be looked
at for invasive Reed
Canary grass and other
undesirable plants and
cut/killed. Buckthorn in
Wollan Park should be
reduced to a mowing
(flail mowing), a couple
of times a year until the
seed bank is gone. Use
Garlon on the
Buckthorn.
Otter lake Road Wetland Bank
Birchwood Acres Park Native Plantings
Behm’s Park Native Plantings
City Hall Native Plantings
City Hall (Lake Drive)
• Stormwater
Mitigation
Ponds
• Native Plantings
MAR-001-C
MAR-002-A
MAR-003-A
The Preserve (HOA
partnership)
Conservation Areas
Foxborough (HOA
partnership)
Conservation Areas
Highland Meadows Native Plantings
Lino Park • Infiltration Pond
• Native Plantings
GW-006-B
Birch Street • Infiltration Pond RLA-001-R
5/29/2019 33
• Native Plantings RLA-001-Q
Elm Street • Infiltration Pond
• Native Plantings
RLA-026-A
Lake Drive and Main
Street
• Infiltration Pond
• Native Plantings
GW-016-D
GW-016-D
Middle School
• Oak Savanna
Restoration Area
(educational)
• Middle School
West Eagle
Project Native
Restoration
(educational)
Highland Meadows
West Pond
Native Plantings
Fire Station 2 –
Restoration/Mitigation
Areas
• Native Plantings
• Wetland
Restoration
• Filtration Ponds
SHE-023-A
CWC-025-B
CWC-025-C
41
Control Reed Canary
and aggressive non-
natives. Fire Station 2
boarders. Spray out
broad leave plants.
These areas may need to
have netting removed
and over-seed with Blue
Gramma. Spring and
early summer 2019 will
tell.
Stoneybrook
Conservation Areas
Saddle Club
Conservation Area
5/29/2019 34
APPENDIX D
Prescription Burn Guidelines
Permits are needed from DNR and applications are completed online. File in form for equipment,
personnel, clear zone issues, smoke direction and nearest structures. Notify residents/businesses
of intentions.
Use USDA Standard Fire Behavior Fuel Models: A Comprehensive Set for Use with
Rothermel’s Surface Fire Spread Model, and National Wildfire Coordinating Group Prescribed
Fire Complexity Rating System Guide for MNDNR Permit.
Notify Cambridge DNR and Lino Lakes Police and Fire
Notify residents if there could be possible close smoke issues
All required equipment must be inspected.
For larger burns, use Ranger/Kubota for tank and pump/hose
Use backpack cans, shovel, rakes, and chainsaw
The City has trained burn specialists. Have one person in charge (fire boss), one with a torch to
direct fire, flank and sometimes end personnel with water cans.
Make sure required fire breaks are in place
Must have a 10 foot clear zone around burn area.
Some course work in Fire Weather is important for this function. The DNR also offers a wild
land fire fighter certification (week). Must have 1 person in charge that knows how to run a
control burn. Without this person, contract control burns out.
Weather
• Temperatures above 68 F are desirable for total fuel consumption.
• Hottest parts of the day is usually between 11:00 and 4:00 PM.
• Steady winds between 5 to 18 MPH most desirable.
• Calm days to 2 MPH not necessarily the best. Takes longer, fire can create its own
weather and may change its own direction, heat will dissipate more slowly and cause
damage to non-target plants.
• Persistent winds from a constant direction safest.
• Obtain probable wind directions. Northwest winds most persistent.
5/29/2019 35
• Winds are most likely to change following calm or low wind speeds, and when winds are
from east or northeast directions.
Fire behavior is most unpredictable when temps are rising during the morning hours.
Temp rise of 20 F from sunrise to midafternoon reduces the Relative Humidity (RH) by one-half
and cold-fronts drop humidity.
Preferred RH is from 25 to 50%. Under certain conditions a RH 20 to 80% can produce
satisfactory results.
When 50% RH, fires may not burn area completely.
Recommendation for grass lands 20-80% RH
Grasslands have been burned 9 hrs. after .5 inch rain.
Stability is important. A small decrease in temperature occurs with increase in altitude. With
inversions, an increase in temperature occurs.
With unstable air, a large decrease in temps occur with high temperatures. Will get strong
convective fire behavior. Helps to confine fire to prescribed area. If too unstable, the fire can
experience strong in-drafts and spotting. It no longer meets the Rx and the fire should be
extinguished.
Clouds in layers, steady winds, smoke, and haze hanging near the ground are signs of stability.
Unstable air = dust devils, gusty winds, good visibility, and clouds with vertical growth.
5/29/2019 36
APPENDIX E
Annual Work Plan
TO BE ADDED
WS – 8
WORK SESSION STAFF REPORT
Work Session Item No. 8
Date: June 3, 2019
To: City Council
From: Karissa Bartholomew, Human Resources Manager
Re: Job Classification and Compensation Study
Background
In December 2018, the Council was made aware of the City’s issues with pay equity
compliance, which is a result of discrepancies in the City’s job classification system and
compensation plan. Last year’s compliance was only achieved by a pay increase to a
female position.
The City’s job classification system assigns each position points based on job duties and
technical skills. When job points do not correspond with the expected pay, any variance
creates a domino effect within the compensation plan. Currently, several positions are
above or below market. Based on what we are being told by consultants and Minnesota
Management & Budget that oversees pay equity, making adjustments to select positions
will no longer suffice.
Recommendation
Staff is recommending the City perform a comprehensive classification and compensation
study on all City positions in 2019 to redress internal equity issues and to ensure
compliance with pay equity. Below are two options for the Council to consider.
1. Bring in a compensation consultant. The obvious advantage is that the study would
demonstrate credibility, neutrality, and objectivity. A complete classification and
compensation study would cost the City $30,000. However, the cost can be
significantly reduced by having staff work with the consultant. Staff received a quote
from Keystone Consulting to perform this study at a reduced cost of $10,500.
2. The compensation study could be performed in-house; however, the current
benchmarking methodology would need to be abandoned. This would require access
to the Hay job evaluation system database, which is proprietary and would cost $6,000.
Unless the Council is committed to an annual fee for continued access, staff does not
recommend the Hay evaluation system.
Unlike Hay, Keystone uses its own job evaluation system. Once the compensation study
is completed, the City has full access to Keystone’s evaluation system, which would save
the City money in the long run.
WS – Item 9
WORK SESSION STAFF REPORT
Work Session Item No. 9
Date: June 3, 2019
To: City Council
From: Sarah Cotton, Finance Director
Re: 2020 Budget
Background
The management team is currently in the process of preparing the 2020 budget. The
proposed budget calendar is as follows:
• Friday, July 19th – Electronic Proposed Budget delivered to City Council
• Monday, July 22nd – Hard Copy Proposed Budget delivered to City Council
• Monday, July 29th – Special Budget Work Session
• Monday, September 23rd – Last meeting to adopt Preliminary Budget and Levy
• Monday, December 9th – Adopt Final Budget and Levy
The City was notified a few weeks ago that as of April 15, 2019, the City’s taxable
market value is estimated to increase 8.42%. This excludes new construction for Pay
2020. Based on this preliminary estimate, the City’s tax levy could increase by $710,140
without raising the tax capacity rate of 41.817%. However, there are several other factors
to consider, including: (1) inflationary adjustments; (2) salary and benefit increases; (3)
capital equipment replacement; and (4) the use of fund reserves in the 2019 budget. The
City utilized $594,773 of general fund reserves/surplus to balance the 2019 budget.
Requested Council Direction
Confirm Special Budget Work Session date and discuss any Council priorities staff should
be aware of as we prepare the 2020 budget.
Attachments
None
Item #11
Monthly Progress Report
June 3, 2019
Item Last Action Taken Staff Status
Digital Scanning Project 8/7/17 – Scanner Operator Rusty Ray
submitted his resignation.
Julie Sharon Fiebiger accepted the
position and started Feb. 19
White Bear Lake Restoration
Assn. v. Dept. of Natural
Resources (DNR)
4/22/19 – The Minnesota Court of
Appeals released its ruling in favor of the
DNR
Jeff The WBL Restoration Assn.
said they will appeal the
decision
Employment Update April 2019 – Environmental Coordinator
Marty Asleson has started his phased
retirement
Jeff Environmental Coordinator –
On tonight’s agenda