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1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />1 <br />CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2010 <br />Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) <br />B. FUNDING POLICY <br />Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are <br />established and amended by the state legislature. The City makes annual contributions to the pension plans <br />equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members <br />are required to contribute 9.10% and 6.0% respectively, of their annual covered salary. PEPFF members <br />were required to contribute 9.4% of their annual covered salary in 2010. The City is required to contribute <br />the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.00% for <br />Coordinated Plan members, and 14.1% for PEPFF members. The City's contributions to the General <br />Employees Retirement Fund for the years ended December 31, 2010, 2009, and 2008 were $177,081, <br />$186,454, and $183,456, respectively. The City's contributions to the Public Employees Police & Fire <br />Fund for the years ended December 31, 2010, 2009, and 2008 were $280,046, $303,949, and $268,569, <br />respectively. The City's contributions were equal to the contractually required contributions for each year <br />as set by state statute. <br />Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES <br />During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of <br />the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis <br />and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective <br />basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater <br />Services (MCWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills <br />the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of <br />recognizing these charges as an expense of the sewer utility operation in the year for which they are billed. <br />Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY <br />A. Deficit Fund Balances <br />The City has deficit fund balances at December 31, 2010 as follows: <br />Fund Balance <br />Deficit <br />Dedicated Parks $ (591,912) <br />Tax Increment Financing 1 -11 (764,646) <br />G.O. Improvement Bonds 2005A (1,093,765) <br />Traffic Control (5,838) <br />The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, <br />transfers from other funds, and various other sources. <br />B. Expenditures in Excess of Budget <br />The following is a listing of expenditure categories that exceed budget appropriations for non -major funds: <br />Budget <br />Actual • Excess <br />Program Recreation Special Revenue Fund: <br />Supplies $ 44,230 $ 66,336 $ (22,106) <br />50 <br />