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HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2000COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2000 Prepared By: Finance Department Alan Rolek, Director of Finance Paula Schloer, Accountant CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number I. INTRODUCTORY SECTION — Principal City Officials 1 Organization Chart 2 Letter of Transmittal 3 — Certificate of Achievement for Excellence in Financial Reporting 11 — II. FINANCIAL SECTION Independent Auditor's Report 12 General Purpose Financial Statements bow Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenue, Expenditures and Changes in — Fund Balance - All Governmental Fund Types Combined Statement of Revenue, Expenditures and Changes in — Fund Balance - Budget and Actual - General and Special Revenue Fund Types Combined Statement of Revenue, Expenses and Changes in Retained Earnings - All Proprietary Fund Types Combined Statement of Cash Flows - All Proprietary Fund Types Notes to Financial Statements Statement 1 13 Statement 2 15 Statement 3 16 Statement 4 17 Statement 5 18 19 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Combining, Individual Fund and Account Group Financial Statements General Fund: Balance Sheet Statement 6 41 Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 7 42 Special Revenue Funds: Combining Balance Sheet Statement 8 48 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 9 49 Program Recreation — Statement of Revenue, Expenditures and Changes in Fund Balance - Budget and Actual Statement 10 50 Debt Service Funds: Combining Balance Sheet Statement 11 51 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 12 53 Capital Project Funds: Combining Balance Sheet Statement 13 55 Combining Statement of Revenue, Expenditures and Changes in Fund Balance Statement 14 61 Enterprise Funds: Combining Balance Sheet Statement 15 67 Combining Statement of Revenue, Expenses and Changes in Retained Earnings Statement 16 68 Combining Statement of Cash Flows Statement 17 69 Agency Funds: Combining Balance Sheet Statement 18 70 Combining Statement of Changes in Assets and Liabilities Statement 19 71 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Immn Reference Number General Fixed Asset Account Group: ` Schedule of General Fixed Assets - By Source Statement 20 72 Schedule of General Fixed Assets - By Function and Activity Statement 21 73 Schedule of Changes in General Fixed Assets - By Function and Activity Statement 22 74 General Long -Term Debt Account Group: Schedule of General Long -Term Debt Statement 23 75 Supplementary Financial Information Combined Schedule of Indebtedness Exhibit 1 76 Schedule of Deferred Tax Levies Exhibit 2 78 Debt Service Payments to Maturity - All Bonds Exhibit 3 79 Insurance in Force Exhibit 4 81 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 82 III. STATISTICAL SECTION General Fund: Expenditures By Function - Last Ten Fiscal Years Table 1 83 Revenue By Source - Last Ten Fiscal Years Table 2 84 Property Tax Levies and Collections - Last Ten Fiscal Years Table 3 85 Special Assessment Levies and Collections - Last Ten Fiscal Years Table 4 86 Ratio of Annual Debt Service Expenditures for General Bonded Debt to Total General Expenditures - Last Ten Fiscal Years Table 5 87 Assessed and Estimated Actual Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years Table 6 88 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Property Tax Rates - Direct and Overlapping Government - Last Ten Fiscal Years Table 7 90 Ratio of Net Bonded Debt to Assessed Value and Net Bonded Debt Per Capita - Last Ten Fiscal Years Table 8 91 Computation of Direct and Overlapping Debt including Debt Ratios Table 9 92 Computation of Legal Debt Margin Table 10 93 Schedule of Revenue Bond Coverage - Water Fund - Last Nine Fiscal Years Table 11 94 Principal Taxpayers Table 12 95 Property Value, Construction Permits and Bank Deposits - Last Ten Fiscal Years Table 13 96 Demographic Statistics Table 14 97 Miscellaneous Statistics Table 15 98 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2000 _ Mayor: John Bergeson MMID Elected Officials Term Expires December 31, 2001 Council Members: Caroline Dahl December 31, 2001 Jeff Reinert December 31, 2001 Donna Carlson December 31, 2003 Jeff O'Donnell December 31, 2003 Appointed Personnel City Administrator Linda Waite Smith Director of Finance Alan Rolek Director of Public Safety David Pecchia Director of Community Development * Director of Public Service Rick DeGardner Director of Administration Daniel Tesch _ Accountant Paula Schloer Vow * Position was not filled as of 12/31/00. City of Lino Lakes Organizational Chart Citizens Honorable Mayor and City Council Commissions Cable Parks and Recreation Economic Development Planning and Zoning Fire Environmental City Administrator City Clerk• Professional Consultants Engineering Attorney Fiscal Public Services Public Safety Parks Public Works Recreation Administration Police Emergency Management Inspections Community Development Human Resources Administrative Services 2 Finance Planning Economic Development Engineering Environmental Services Accounting Management Infomration Systems Utility Billing Ilmns ■ May, 2001 Honorable Mayor Members of the City Council City of Lino Lakes, Minnesota The Comprehensive Annual Financial Report of the City of Lino Lakes, Minnesota is submitted herein for the year ended December 31, 2000. The City is responsible for the accuracy and completeness of the presentation including all disclosures. The Finance department believes that the data presented is accurate in all material aspects and presents the financial position and results of operations of the City in a fair manner. — The organization, form and contents of this report were prepared in accordance with the standards prescribed by the Government Finance Officer' s Association of the United States and Canada, the American Institute of Certified Public Accountants, the State Auditor's Office, the State of Minnesota and the City Charter. The Comprehensive Annual Financial Report consists of three parts: a. An Introductory Section - contains the letter of transmittal, table of contents, elected and administrative officials and organizational chart. b. A Financial Section - contains the independent auditors report, notes to the financial statements, combined financial statements and the combining and individual fund and account group statements and supplemental schedules. c. A Statistical Section - contains various unaudited tables showing the financial trends of the City and miscellaneous statistics. We believe that the data presented is accurate in all material aspects. It is presented in a manner that fairly reflects the financial operations of the City and is easily read for maximum understanding of the financial matters presented. The notes are considered an essential part in providing insight into the information presented. Reliable financial information requires an establishment of accounting records that are adequately supported by — internal accounting controls. The City believes that existing internal accounting controls are adequate to provide reasonable assurance that City assets are safeguarded against loss from unauthorized use or disposition and that the financial records are reliable for the preparation of the financial statements. IMMO 600 Town Center Parkway, Lino3Lakes, Minnesota 55014-1182 Phone: 651 - 982 -2400 • Fax: 651 - 982 -2499 • TDD: 651 - 982 -2410 The City Charter grants the City Council full authority over the financial matters of the City. The City Administrator has the responsibility of submitting the annual budget to the City Council. The budget is adopted by resolution and the amounts can not increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. THE REPORTING ENTITY In accordance with the Governmental Accounting Standards Board requirements, the financial reporting entity includes all funds and account groups of the City as well as all of its component units. Component units are legally separate entities for which the primary government is financially accountable. Blended component units, although legally separate entities, are in substance, part of the primary government's operations and are included as part of the primary government. Accordingly, the Economic Development Authority is reported as a Special Revenue Fund of the primary government. The City provides a full range of municipal services. These services include: general government, public safety (police & fire), public works (streets & fleet), parks and recreation, conservation of natural resources (environmental & solid waste abatement), public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two enterprise funds, the water and sewer funds. ECONOMIC CONDITION AND OUTLOOK The City of Lino Lakes is a growing community within the County of Anoka. It covers an area of 33 square miles and has a population of nearly 17,000. 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 economic development effort established in 1993 by the city council has begun to reverse dependence on residential property taxes. Since 1993, the city has added more than $27 million in additional commercial /industrial market value. The Apollo Business Park on I -35W and the Clearwater Creek Development Center on I -35E continue to attract industrial development. A new business park on Lake Drive near the Town Center is expected to be improved for development in 2001. With the many wetlands and regional parks, environmental issues are important to the city. In 1999, the city approved its first Preservation Development subdivision, a large step forward in the implementation of the city's overall environmental inventory and management plan. This plan will preserve the valuable open spaces and wetlands within the city. MAJOR INITIATIVES Commercial development in Lino Lakes has been the focus of a city- initiated development called the Town Center on the I -35W interchange area. This innovative project incorporates mixed -use development that includes professional buildings, civic facilities, commercial development and a mix of housing types. The city received a $220,000 Livable Communities grant in 1998 from the Metropolitan Council to hire Peter Calthorpe Associates, a planner on the cutting edge of urban and suburban neighborhood development, to refine the city's plan for the Town Center. An additional grant of $450,000 was awarded in 2000 to begin implementation of the housing initiatives outlined in the Calthorp plan. 4 — The Village, the Southeast quadrant of the Town Center, is the site of the newly completed Lino Lakes Civic Complex. This $6 million facility that houses city hall, police and a Centennial School District program, is a critical component to the success of a mixed use Town Center. The location of the complex is part of the — economic development effort in providing a strong civic focus within the mixed -use center. The Civic Complex recently received an award from the League of Minnesota Cities for innovation and excellence in housing, economic development and community spaces. law IlEw The city is considering participating in the construction costs of a YMCA in The Village section of the Town Center. The YMCA is anticipating building a new recreation facility in the near future. FINANCIAL INFORMATION The City's policy is to invest all available moneys at competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S. government agencies. Cash is pooled in one account to provide maximum return. General Fund The General Fund accounts for all revenues and expenditures necessary to provide basic governmental operations of the City. General Fund revenues totaled $5,613,395 in 2000 compared to $5,343,453 in 1999. The breakdown of revenues is shown in the following table: 2000 1999 $ Change % Change General property taxes $3,306,057 $2,962,664 $343,393 11.59% — Licenses and permits 884,746 823,719 61,027 7.41% Intergovernmental revenues 702,606 940,053 (237,447) (25.26 %) Special Assessments 5,405 -0- 5,405 100.00% Charges for services 272,145 278,510 (6,365) (2.29 %) Fines and forfeits 124,458 87,434 37,024 42.35% Interest on Investments 140,592 27,655 112,937 408.38% Miscellaneous 177,386 223,418 (46,032) (20.60 %) Ilme Total $5,613,395 $5,343,453 $2_69494/ 5.05% General property taxes increased in 2000 reflecting the growth in the tax base of the City and the additional service needs arising from that growth. Licenses and permits increased due to the continued surplus of building permits issued for new housing and commercial /industrial units in the City. State and federal disaster aid received in 1999 is reflected directly in the decrease in Intergovernmental revenues in 2000, as well as direct reduction in homestead credit state aids. Fines and forfeitures increased due to additional enforcement employed throughout the year. The sale of the former police facility and greater than expected tree refunds inflated miscellaneous revenues in 1999, therefore, a reduction in this revenue area was realized in 2000. Investment earnings increased appreciably in 2000 due to a changing interest rate environment. Additionally, in accordance with GASB 31, which requires investments be carried at fair market value, the recording of unrealized gains had a substantial impact on interest revenue for the year. 5 General fund expenditures totaled $5,513,148 in 2000 compared to $5,237,554 in 1999. The breakdown of expenditures is shown in the following table. 2000 1999 $ Change % Change General Government $1,770,528 $1,771,069 $ (541) (0.03 %) Public Safety 2,158,346 1,958,169 200,177 10.22% Public Works 786,420 628,070 158,350 25.21% Parks and Recreation 655,863 647,163 8,700 1.34% Conservation of Natural Resources 141,991 233,083 (91,092) (39.08 %) Total $5,513,148 $5,237,554 $275,594 5.26% The settlement of three of the four collective bargaining unit contracts in 1999 had a direct impact on expenditures throughout the General Fund in 2000. Despite this, the costs in the General Government area were substantially the same in 2000 as in 1999. Public safety increased mainly due to the addition of a sergeant position and other personnel changes, capital outlay expenditures and increased fire contract costs. Public Works costs were higher in 2000 due to labor costs, higher contractual costs for street repair, increased cost of motor fuels and increased capital expenditures. The increase in Parks and recreation expenses was primarily due labor costs. Storm damage sustained in 1998 was the primary reason for higher expenditures in the Conservation of Natural Resources area in 1999, and the reduction in these costs is reflected in 2000. The fund balance of the General fund continues to grow as shown below: Expenditure Fund Balance Percent Budget Beginning of Year of Budget 1991 2,268,639 1,169,624 51.56% 1992 2,552,835 1,265,236 49.56% 1993 2,829,202 1,406,296 49.71% 1994 3,169,862 1,756,659 55.42% 1995 3,551,957 1,870,934 52.67% 1996 3,966,738 2,086,231 52.59% 1997 4,400,087 2,723,025 61.89% 1998 5,524,646 3,057,912 55.35% 1999 5,252,474 3,411,332 64.95% 2000 5,601,671 3,434,474 61.31% The fund balance for the year increased $107,122 for a total ending fund balance of $3,541,596. Special Revenue Funds The Economic Development Authority Fund accounts for personal expenses of the City Council when acting as the Economic Development Authority. The Community Development Block Grant Fund accounts for expenditures associated with funds allocated through Anoka County from the Federal Government to fund allowable projects. The Program Recreation Fund accounts for the activities of the Recreation Department for self - supporting programs. 6 Debt Service Funds Improvement Bonds Funds account for the accumulation of resources for debt service payments made on general obligation debt issued for local improvement projects. The Certificates of Indebtedness Fund accounts for debt service payments made on debt issued to finance capital purchases. These certificates are financed internally. The Public Project Revenue Bonds Fund and Public Project Refunding Bond Fund were established to account for debt service payments related to the construction of the City's fire hall and civic complex. The Lease Revenue Bond Fund was established to account for debt service payments related to the construction of the City's Civic Complex. Capital Project Funds The Closed Bond Fund was established to account for all excess bond receipts. The Dedicated Parks Fund accounts for revenues and expenditures for the acquisition and construction of park projects. The Area and Unit Charges Fund accounts for water and sewer area assessments to be used for the construction of City utility infrastructure. The Surface Water Management was established to help fund the costs associated with surface water issues and - planning. The Town Center /Civic Center Project Funds were established to account for costs associated with the creation of the "Village ", including: infrastructure, civic buildings and development of the property for commercial use. Tax Increment Funds were established to account for projects financed with tax increments. MINIm Enterprise Funds The Water Fund accounts for the operations of the municipal water system. The following table illustrates the operations: 2000 1999 $ Change % Change Operating Revenues $718,822 $555,368 $163,454 29.43% Operating Expenses 495,183 380,928 114,255 29.99% — (Excluding Depreciation) Operating Income (Loss) $223,639 $174,440 $ 49,199 28.20% Water revenues increased due to increased number of users on the system, resulting in greater consumption. Installation of a telephone meter reading system caused increases in personnel, supply and contractual costs over ▪ the previous year. fimml 7 The Sewer Fund accounts for the operations of the municipal sanitary sewer system. The following table illustrates the operations: Operating Revenues Operating Expenses (Excluding Deprecation) Operating Income (Loss) 2000 1999 $ Change % Change $875,850 $713,523 $162,327 22.75% 641,729 549,162 92,567 16.86% $234,121 $164,361 $69,760 42.44% As with the Water Fund, additional users resulted in increased revenues for the year. Personnel costs, Metropolitan Council Environmental Services charges for sewage treatment, and system maintenance and repair costs driven by installation of a telephone meter reading system were responsible for the increase in expenses from the previous year. AGENCY FUNDS The Contractors Deposits Fund accounts for the pass - through costs of developer financed projects within the City. The Pending Assessments Fund accounts for the receipt of assessment prepayments prior to certification. This fund is closed annually at certification time. The balance in this fund is the result of assessments being collected that will not be certified to Anoka County until 2001. The Investment Fund accounts for the pooling of all the City's money that is invested throughout the year. Interest on investments is recorded in this fund before allocating to all funds. Interest earned in 2000 was $1,000,915 compared to $245,589 in 1999. The increase in interest income resulted from changing market conditions and unrealized gains booked as a result of increased market value of securities held, in compliance with GASB 31. GENERAL FIXED ASSETS ACCOUNT GROUP General fixed assets are those assets used for general governmental functions only. This does not include enterprise funds. Depreciation is not recorded on the general fixed assets. GENERAL LONG -TERM DEBT ACCOUNT GROUP This group reports the current assets available in the Debt Service Funds and recognizes the amounts to be provided through future tax levies, assessments and tax increments. CASH MANAGEMENT Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations of the U.S. Treasury. 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. The City Council reviews the investment policy annually and last amended it in 1998. 8 — DEBT ADMINISTRATION At year -end, the City had a number of debt issues outstanding. These issues included $6,911,450 of general - obligation bonds and equipment certificates, $13,165,000 of general obligation improvement bonds with special assessments pledged and $4,340,000 of revenue bonds. The City also had contracts for deed in the amount of $1,209,352. During 2000, the City issued $325,450 of equipment certificates internally, the proceeds of which — were used to purchase equipment. RISK MANAGEMENT The City's general property and liability coverage is provided through the League of Minnesota Cities Trust (LMCIT) and worker's compensation is provided through State Fund Mutual. At the beginning of the insurance year, the city deposits with State Fund a premium determined by calculating estimated payroll and applying experience modification ratios. An audit is performed at the end of the insurance year, which may produce a refund or an adjustment due. State Funds reserves and rates are reviewed annually by — an actuary to assure that the program remains financially strong. INDEPENDENT AUDIT MOM Minnesota State law requires that cities over 2,500 population submit annual financial statements attested by a certified public accountant or the State Auditor to the State Auditor. The firm Larson, Allen, Weishair and Co., lima LLP was retained by the City Council to perform the audit. Generally accepted auditing standards and the standards set forth in the Comptroller General of the United States' Government Auditing Standards, were used by the auditors in conducting the engagement. In addition, the requirements of the Federal Single Audit Act of — 1984 and the related U.S. Office of Management and Budget's Circular A -133 have been met by the City. The auditor's report on the general purpose financial statements and combining and individual fund statements and schedules is included in the financial section of the report. The auditor's reports on internal controls and — compliance with applicable laws and regulations can be found in a separately issued legal compliance report. CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING The Government Finance Officers Association of the United State and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. A governmental unit must — publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. The City of Lino Lakes received this award for the year ended December 31, 1999. The City is submitting the 2000 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 program requirements. 9 ACKNOWLEDGMENTS The preparation of this report could not have been accomplished without the dedicated services of the Finance Department, auditors and other city staff. I also want to express my appreciation to the Mayor and City Council for their responsible policies involving the financial operation of the City. Respectfully submitted, 10 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lino Lakes, Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 1999 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. 11 Executive Director II. FINANCIAL SECTION L arsQnAllen- W e i s h a i r & Co., L L P ACHIEVE THE DESIRED EFFECT'. Business Consultants i Certified Public Accountants INDEPENDENT AUDITOR'S REPORT Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota We have audited the accompanying general - purpose financial statements of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 2000 as listed in the Table of Contents. These general purpose financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. •- In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Lino Lakes, Minnesota as of December 31, 2000, and the results of its operations and cash flows of its proprietary fund types for the year then ended in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued a report dated March 29, 2001 on our consideration of the City of Lino Lakes Minnesota's internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts, and grants. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining and individual fund and account group financial statements, schedules and tables listed in the Table of Contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Lino Lakes, Minnesota. Such information, except for the statistical tables on which we express no opinion, has been subjected to the auditing procedures applied in our audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. Now Austin, Minnesota March 29, 2001 12 LARSON, ALLEN, WEISHAIR & CO., LLP GENERAL PURPOSE FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS December 31, 2000 Governmental Fund Types Special Debt Capital Assets General Revenue Service Project Cash and investments $ 3,262,693 $ 53,882 $ 1,987,282 $ 5,662,499 Cash and investments with escrow agent - 2,184,015 - Accrued interest receivable - 34,247 - Accounts receivable 77,823 - 15,422 Deposits receivable - - Due from other governmental units 356,154 2,673 - Interfund receivable 6,263,850 Taxes receivable: Delinquent 31,804 9,769 - Due from County 59,852 13,008 115,075 Delinquent tax increment - 8,858 Special assessments receivable: Delinquent 1,151 6,626 Deferred 925,569 2,309,972 Due from County - - 3,781 7,259 Prepaid items 105,052 1,017 - Advances to Other Funds - 582,916 Land held for resale 989,506 Fixed assets (net of accumulated depreciation) - Amount available in Debt Service Fund Amount to be provided for retirement of GLTD - Total assets Liabilities, equity and other credits $ 3,893,378 $ 57,572 $ 5,158,822 $ 15,961,983 Liabilities: Interfund payable $ $ 4,760 $ 104,533 $ 6,029,990 Accounts payable 173,408 1,374 44,915 448,996 Salaries payable 136,239 1,189 - Retainage payable - 10,235 Accrued interest payable Deposits payable Due to other governmental units 5,003 - Advances from Other Funds - - 582,916 Deferred revenue 37,132 936,489 2,326,814 Bonds payable - - Contract for deed payable Compensated absences payable Total liabilities 351,782 7,323 1,085,937 9,398,951 Equity and other credits: Contributed capital Invested in general fixed assets Retained earnings - unreserved Fund balance (deficit): Reserved 105,052 1,017 4,101,453 1,572,422 Unreserved: Designated 3,436,544 51,319 10,061,453 Undesignated - (2,087) (28,568) (5,070,843) Total equity and other credits 3,541,596 50,249 4,072,885 6,563,032 Total liabilities, equity and other credits $ 3,893,378 The accompanying notes are an integral part of these financial statements. $ 57,572 $ 5,158,822 $ 15,961,983 13 Statement 1 Proprietary Fiduciary Account Groups Totals Fund Type Fund Type General General Long- (Memorandum Only) Enterprise Agency Fixed Assets Term Debt 2000 1999 $ 1,278,630 $ 528,256 $ 650,367 12,734 126,030 - 206,892 - 10,520 NEM Ipme 298,990 346 6,671 26,730,505 $ 29,185,135 $ 664,806 $ $ 12,773,242 $ 11,441,581 2,834,382 2,844,386 173,011 158,082 300,137 390,042 10,520 10,520 358,827 337,866 6,263,850 6,024,110 41,573 23,199 187,935 74,062 8,858 5,848 7,777 11,947 3,534,531 4,877,170 11,386 7,406 112,740 120,109 582,916 - - 989,506 989,506 12,780,630 - 39,511,135 37,766,238 - 4,072,885 4,072,885 3,818,103 17,537,953 17,537,953 18,853,001 $ 12,780,630 $ 21,610,838 $ 89,313,164 $ 87,753,176 $ - $ 124,567 $ 95,505 58,653 8,398 - 97,276 - 481,586 1,217 - 4,340,000 29,838 '- 4,572,234 664,806 23,117,561 1,495,340 24,612,901 - $ 29,185,135 $ 664,806 12,780,630 $ $ 6,263,850 $ 6,024,110 822,851 1,115,334 145,826 225,739 10,235 351,661 97,276 99,086 481,586 427,586 6,220 13,038 582,916 3,300,435 4,613,627 20,076,450 24,416,450 25,499,570 1,209,352 1,209,352 1,459,352 325,036 354,874 274,399 21,610,838 37,691,871 40,103,502 23,117,561 22,389,099 12,780, 630 11, 690, 618 1,495,340 953,013 5,779,944 4,929,202 13, 549,316 13,204,552 (5,101,498) (5,516,810) 12,780,630 51,621,293 47,649,674 $ 12,780,630 $ 21,610,838 $ 89,313,164 $ 87,753,176 CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - ALL GOVERNMENTAL FUND TYPES For the Year Ended December 31, 2000 Statement 2 Revenue: General property taxes Tax increments Licenses and permits Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Refunds and reimbursements Miscellaneous Total revenue Expenditures: Current: General government Public safety Public works Parks and recreation Conservation of natural resources Capital outlay: General government Public safety Public works Parks and recreation Conservation of natural resources Debt service: Principal Interest and fiscal charges Refunding bond issuance costs Construction/acquisition Total expenditures Revenue over (under) expenditures Other fmancing sources (uses): Operating transfer in Operating transfer out Contract for deed proceeds Bond proceeds Payment to refunding bond escrow Total other fmancing sources (uses) Net increase (decrease) in fund balance Fund balance Beginning of year, as previously stated Prior period adjustment Beginning of year, as restated Residual equity transfer in Residual equity transfer out Fund balance - December 31 Special Debt Capital General Revenue Service Project $ 3,306,057 $ $ 875,247 $ - - 1,032,592 884,746 - 702,606 19,109 80,741 - 5,405 - 838,062 2,262,892 272,145 194,628 151,522 124,458 140,592 3,193 164,574 621,818 58,200 - 61,776 119,186 112,500 333,959 5,613,395 216,930 2,071,124 4,464,559 Totals (Memorandum Only) 2000 1999 $ 3,734,898 837,036 823,719 1,047,725 2,519,598 562,359 87,434 230,921 119,055 353,554 10,316,299 $ 4,181,304 1,032,592 884,746 802,456 3,106,359 618,295 124,458 930,177 119,976 565,645 12,366,008 1,707,992 19,672 1,418,127 3,145,791 2,644,205 2,126,696 - - 2,126,696 1,951,820 766,230 - 72,559 838,789 627,925 647,882 180,970 - 828,852 755,215 106,543 - 106,543 218,981 62,536 33,781 96,317 143,970 31,650 155,136 186,786 179,498 20,190 135,461 155,651 101,906 7,981 135,162 143,143 1,137,140 35,448 - 35,448 14,102 5,513,148 200,642 100,247 16,288 56,875 (50,000) 6,875 107,122 16,288 1,198,570 250,000 1,448,570 1,190,734 1,037,740 4,142 1,041,882 1,029,874 - - 46,205 725,663 725,663 8,775,128 2,236,310 2,930,031 10,880,131 18,816,703 (165,186) 1,534,528 1,485,877 (8,500,404) 419,968 50,000 526,843 948,297 (797,352) (847,352) (997,663) 600,000 325,450 325,450 3,000,539 (961,098) 419,968 (421,902) 4,941 2,590,075 254,782 1,112,626 1,490,818 (5,910,329) 3,434,474 33,961 3,818,103 5,330,406 12,616,944 18,527,273 120,000 120,000 3,434,474 33,961 3,818,103 5,450,406 12,736,944 18,527,273 - 440,942 440,942 (440,942) (440,942) $ 3,541,596 $ 50,249 The accompanying notes are an integral part of these financial statements. $ 4,072,885 $6,563,032 $ 14,227,762 $ 12,616,944 15 CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL • GENERAL AND SPECIAL REVENUE FUND TYPES For the Year Ended December 31, 2000 Statement 3 Special Revenue Fund - General Program Recreation Over Over (Under) (Under) Budget Actual Budget Budget Actual Budget Revenue: General property taxes $ 3,333,877 $ 3,306,057 $ (27,820) $ $ $ Licenses and permits 642,243 884,746 242,503 Intergovernmental 672,521 702,606 30,085 Special Assessments 5,405 5,405 Charges for services 366,500 272,145 (94,355) 172,760 194,628 21,868 _ Fines and forfeits 100,000 124,458 24,458 Investment earnings 87,531 140,592 53,061 3,193 3,193 Refunds and reimbursements 42,000 58,200 16,200 Miscellaneous 72,792 119,186 46,394 Total revenue 5,317,464 5,613,395 295,931 172,760 197,821 25,061 Expenditures: Current: General government 1,764,714 1,707,992 (56,722) - Public safety 2,132,836 2,126,696 (6,140) Public works 772,488 766,230 (6,258) - - Parks and recreation 660,906 647,882 (13,024) 151,015 180,970 29,955 ▪ Conservation of natural resources 118,795 106,543 (12,252) Capital outlay. General government 44,450 62,536 18,086 �, Public safety 12,732 31,650 18,918 Public works 15,000 20,190 5,190 Parks and recreation 55,750 7,981 (47,769) Conservation of natural resources 24,000 35,448 11,448 Total expenditures 5,601,671 5,513,148 (88,523) 151,015 180,970 29,955 Revenue over (under) expenditures (284,207) 100,247 384,454 21,745 16,851 (4,894) Other financing sources (uses): Operating transfers from other funds Operating transfers to other funds 56,875 56,875 (50,000) (50,000) Net increase (decrease) in fund balance $ (277,332) 107,122 $ 384,454 $ 21,745 16,851 $ (4,894) - Fund balance Beginning balance 3,434,474 35,485 llama Fund balance - December 31 $ 3,541,596 $ 52,336 The accompanying notes are an integral part of these financial statements. CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND AND CHANGES IN RETAINED EARNING - ALL PROPRIETARY FUND TYPES For The Year Ended December 31, 2000 Statement 4 Enterprise Funds 2000 1999 Operating revenue: Water sales $ 717,617 $ 453,092 Sewer charges 875,850 679,020 Other operating revenue 1,205 136,779 Total operating revenue 1,594,672 1,268,891 Operating expenses: Personal services 262,284 238,667 Materials and supplies 257,187 137,852 Contractual services 124,547 98,557 Repair and maintenance 1,568 MCES sewer charges 396,800 368,937 Depreciation: Purchased assets 104,578 102,777 Contributed assets 504,805 412,573 Utilities 86,257 71,367 Other 9,837 13,142 Total operating expenses 1,746,295 1,445,440 Net income (loss) from operations (151,623) (176,549) Other income (expense): Investment earnings 70,738 14,668 Special assessments 35,510 42,010 Bond interest (234,812) (228,000) Paying agent fees (2,800) (2,800) Total other income (expense) (131,364) (174,122) Net income (loss) before operating transfers (282,987) (350,671) Operating transfers: Operating transfer from General Fund 49,366 Operating transfer from Capital Project Fund 320,509 Total operating transfers 320,509 49,366 Net income (loss) 37,522 (301,305) Credit arising from transfer of depreciation to contributions from property owners 504,805 412,573 Retained earnings - January 1 953,013 841,745 Retained earnings - December 31 $ 1,495,340 $ 953,013 The accompanying notes are an integral part of these financial statements. 17 - CITY OF LINO LAKES, MINNESOTA COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES — For the Year Ended December 31, 2000 Now Statement 5 Enterprise Funds 2000 1999 Cash flows from operating activities: Operating income $ (151,623) $ (176,549) ▪ Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 609,383 515,350 — Change in assets and liabilities: Decrease (increase) in receivables 6,341 42,116 Decrease (increase) in prepaid items (1,921) 31,079 loom Increase (decrease) in payables 61,692 29,498 Net cash flows from operating activities 523,872 441,494 ▪ Cash flows from noncapital financing activities: Operating transfer from General Fund Operating transfer from Capital Project Funds '— Net cash flows from noncapital financing activities 320,509 320,509 49,366 49,366 Cash flows from capital and related financing activities: Principal paid on revenue bonds (210,000) (205,000) Proceeds from issuance of refunding bonds - 680,000 Investment with escrow agent 2,528 (652,895) Collection of special assessments 35,510 42,010 Interest and paying agent fees on revenue bonds (237,612) (230,800) Acquisition of fixed assets (31,001) (43,423) Net cash flows from capital and related financing activities (440,575) (410,108) Cash flows from investing activities: Investment earnings 70,738 14,668 Net increase (decrease) in cash and cash equivalents 474,544 95,420 Cash and cash equivalents - January 1 804,086 708,666 Cash and cash equivalents - December 31 $ 1,278,630 $ 804,086 — Noncash investing, capital and financing activities: - Water and Sewer lines in the amount of $1,233,267 and $4,611,608 were contributed to the Water and Sewer Fund in 2000 and 1999 respectively. ■ The accompanying notes are an integral part of these financial statements. 18 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The financial statements of the City of Lino Lakes have been prepared in conformity with generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Lino Lakes and its component units. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. COMPONENT UNITS In conformity with generally accepted accounting principles, the financial statements of component units have been included in the financial reporting entity either as blended component units or as discretely presented component units. Blended Component Units. The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations because the members of the City Council serve as commission members. The EDA does not issue separate fmancial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally separate from the City. However, for fmancial 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. The HRA has not yet incurred any financial activity. B. FUND ACCOUNTING The accounting system of the City is organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts recording cash and other fmancial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations. 19 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The following types of funds and account groups are employed by the City: GOVERNMENTAL FUNDS General Fund - to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Capital Project Funds - to account for financial resources to be used for the acquisition or construction of major facilities other than those financed by Proprietary Funds. PROPRIETARY FUNDS Enterprise Funds - to account for operations: (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or, (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. FIDUCIARY FUNDS Trust and Agency Funds - to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. These include (a) expendable trust funds, (b) nonexpendable trust funds, (c) pension trust funds, and (d) agency funds. ACCOUNT GROUPS The governmental fund types are designed to account for the financial flow of a particular fund; therefore, they generally include only current assets and current liabilities on their balance sheets. The City maintains two account groups to account for noncurrent assets and long -term liabilities as follows: General Fixed Assets - The City maintains a separate account group which contains the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. General Long -Term Debt - This account group contains the long -term obligations of the City including general obligation bonds, certificates of indebtedness, contracts payable and compensated absences payable. These long -term liabilities are expected to be financed by the governmental funds. 20 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. BASIS OF ACCOUNTING The accounting and reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for on a current financial resources measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. All Proprietary Funds are accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with this activity are included on their balance sheets. Their reported fund equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. The modified accrual basis of accounting is followed by the City for its Governmental Funds and Fiduciary- Agency Funds. Under this method of accounting, revenues are recognized when they become susceptible to accrual - that is, when they become both measurable and available to finance expenditures of the fiscal period. "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Major revenue sources susceptible to accrual include property taxes (excluding delinquent taxes received over 60 days after year end), special assessments, intergovernmental revenues, charges for services and interest on investments. Major revenue sources not susceptible to accrual include licenses and permits, fees, and miscellaneous revenues. Such revenues are recorded as revenue when received because they are not measurable until collected. Expenditures are generally recognized in the accounting period when the fund liability is incurred, except for interest on general long -term debt which is recognized when due. The accrual basis of accounting is followed for the Proprietary Funds. Under this method of accounting, revenues are recognized during the accounting period in which they are earned and become measurable and expenses are recognized in the accounting period in which they are incurred if measurable. Governmental Accounting Standards Board (GASB) Statement #20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities that Use Proprietary Funds, provides proprietary activities with a choice of authoritative guidance issued after November 30, 1989. The City of Lino Lakes has elected to follow GASB pronouncements exclusively after that date. The City reports deferred revenue on its combined balance sheet. Deferred revenues arise when a potential revenue does not meet both the "measurable" and "available" criteria for recognition m the current period. Deferred revenues also arise when resources are received by the government before it has a legal claim to them, as when grant monies are received prior to the incurrence of qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met, or when the government has a legal claim to the resources, the liability for deferred revenue is removed from the combined balance sheet and revenue is recognized. The City has reported as deferred revenues the amount of $3,300,435, which consists of the following: Oak Wilt Suppression and misc. $ 6,686 Property taxes receivable 50,431 Special assessments receivable 3,243,318 Total $ 3,300,435 21 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. BUDGETS Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund. Budgeted amounts are reported as originally adopted, or as amended by the City Council. Individual amendments were not material in relation to the original appropriations, which were adjusted. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is not presently considered necessary to assure effective budgetary control or to facilitate effective cash management. Reconciliation of Budgetary Basis to GAAP Basis Governmental funds presented on Statement 3 are the General Fund and the Program Recreation Special Revenue Fund. The following is a reconciliation of fund balances on a budgetary basis as presented on Statement 3, to the GAAP basis as presented on Statement 2: Special Revenue Funds Governmental Fund: Fund Balance — Budgetary Basis $ 52,336 Fund Balances — Non - Budgeted Funds (deficit) (2,087) Fund Balances — GAAP Basis $ 50,249 E. LEGAL COMPLIANCE - BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget (including the General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The City Administrator is authorized to transfer appropriations within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may 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. 22 eimm Vow CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 total fund level. Monitoring of budgets is maintained at the expenditure category level (i.e., personal services, supplies; other services and charges; capital outlay) within each activity. 9. The City Council may authorize transfer of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund, and an interfund payable in the fund with the deficit, until adequate resources are received. Investments are stated at fair value as of the balance sheet date. Interest earnings are accrued at the balance sheet date. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. G. HOMESTEAD CREDIT AND AGRICULTURAL CREDIT AID (HACA) Property taxes on homestead property (as defined by State Statutes) are partially reduced by HACA. This credit is paid to the City by the State m lieu of taxes levied against homestead property. The State remits this credit through installments each year. The credit is recognized as revenue by the City at the time of collection. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. The City recognizes property tax revenue when it becomes both measurable and available to fmance expenditures of the current period. In practice, current and delinquent taxes and State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because it is 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. Property taxes paid to the City through this formula for 2000 and 1999 totaled $572,406 and $478,347, respectively. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. I. 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. 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 funding are completely offset by deferred revenues. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. 24 lam MEM INNEN WENN Ima CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. INVENTORIES The original cost of materials and supplies has been recorded as expenditures /expenses at the time of purchase of both the Governmental and Proprietary Funds. These funds do not maintain material amounts of materials and supplies. K. INTERFUND RECEIVABLES/PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables are classified as interfund receivables and payables on the balance sheet. The non - current portion of interfund loans are reported as "advances to /from other funds." Advances between funds are offset by a fund balance reserve account in applicable governmental funds to indicate they are not available for appropriation and are not expendable available financial resources. L. LAND HELD FOR RESALE These assets are recorded in the governmental fund, which purchased them at the lower of cost or market. M. FIXED ASSETS GENERAL FIXED ASSETS General fixed assets are recorded as expenditures of the Governmental Funds at the time of purchase. Such assets are capitalized at historical cost or estimated historical cost in the General Fixed Asset Account Group. Public Domain ( "infrastructure ") general fixed assets consisting of roads, bridges, curbs, gutters, streets, sidewalks, drainage systems and lighting systems are excluded from general fixed assets as these assets are immovable and of value only to the City. Gifts or contributions are recorded in general fixed assets at fair market value at the time received. No depreciation has been provided on general fixed assets. PROPRIETARY FUNDS Fixed assets of the Proprietary Funds are stated at historical cost, estimated historical cost, or in the case of contributions, at fair market value at the time received. Depreciation has been provided using the straight -line method over the estimated useful lives of assets, as follows: Purchased Assets: Water 5 -50 years Sewer 5 -50 years Contributed Assets: Water 20 -50 years Sewer 20 -50 years Fixed assets of the water and sewer utility operations include the water distribution system and sewage collection system. These systems have been wholly (or substantially) financed by non - operating funds (special assessments, general taxes, federal and state grants, and other sources) and contributed to the sewer and water operating funds. City policy is to finance these assets by the sources indicated rather than by user charges. Accordingly, the water and sewer user rates are not established at levels sufficient to cover depreciation on these assets. 25 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Depreciation on these assets is shown in the operating statements; however, the depreciation is eventually transferred against the contribution account rather than retained earnings in accordance with generally accepted accounting principles. Consequently, the contribution account reflects the net book value of contributed assets rather than the original cost of such assets. N. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Amounts that are expected to be liquidated with expendable available financial resources are reported as an expenditure and a fund liability of the governmental fund that will pay it. Amounts that are not expected to be liquidated with expendable available financial resources are reported in the General Long -Term Debt Account Group. No expenditure is reported for these amounts. An unpaid vacation and severance pay is payable when used or upon termination of employment. In addition, an amount is recorded for those individuals not eligible for retirement at December 31, 2000, but for whom a payout of the amount earned to that date is expected. In accordance with the provisions of Statement of Government Accounting Standards No. 16, Accounting for Compensated Absences, a liability is recorded for nonvesting accumulating rights to receive sick pay benefits. Sick leave is payable when used and in some cases upon termination of employment. For several employees, sick leave is payable upon retirement or termination in accordance with the terms of their employment contracts. The remaining sick leave amounts are not recorded as liabilities because payment is not probable. O. LONG -TERM OBLIGATIONS Long -term debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated in the Debt Service Fund for payment early in the following year. For other long- term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the General Long -Term Debt Account Group. Long -term liabilities expected to be financed from proprietary fund operations are accounted for in those funds. P. FUND EQUITY Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions from developers, customers or other funds. Reserves represent those portions of fund equity not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. Q. INTERFUND TRANSACTIONS Quasi - external transactions 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. All other interfund transactions, except quasi - external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. During 2000, the City made residual equity transfers to close two debt service funds. All other interfund transfers are reported as operating transfers. 26 MINIM VINO AMEN IMINM CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. PRIOR PERIOD ADJUSTMENT The beginning fund balance in the Town Center Project Fund was restated in the amount of $120,000 due to a correction of an accrued payable in the previous year. S. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2 DEPOSITS AND INVESTMENTS 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. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds. Authorized collateral includes the legal investments described below and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. At year -end, the carrying amount of the City's deposits was $519,081 and the bank balance was $468,907. The entire bank balance was covered by Federal depository insurance or by collateral held by the City's agent in the City's name. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United Stages 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) General obligations of the State of Minnesota or any of its municipalities. d) Bankers acceptance of United States banks eligible for purchase by the Federal Reserve System. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. 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. Cash and Investment balances as of December 31, 2000 are as follows: Custodial Credit Risk Category Security Type 1 2 3 Fair Value U.S. Government & Agency Securities $ 8,622,000 $ $ $ 8,622,000 Commercial Paper 2,581,261 2,581,261 Municipal Bonds 626,450 626,450 Negotiable Certificates of Deposit 1,221,247 1,221,247 Totals $ 13,050,958 $ $ 13,050,958 Investment not subject to categorization: Mutual Funds 1,1 10,980 U.S. Government Securities Pooled Investment 729,331 (pool value is Fair Value) Money Market Funds 196,454 Total Investments 15,087,723 Deposits 519,081 Cash on Hand 820 Total Deposits, Investments and cash on hand $ 15,607,624 A reconciliation of cash and investment as shown on the combined balance sheet is as follows: Cash and investments Cash and investments with escrow agent 28 12,773,242 2,834,382 15,607,624 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) • The City's investments are categorized above to give an indication of the level of custodial credit risk assumed at year -end. Category 1 includes investments that are insured or registered or for which the _ securities are held by the City or its agent in the City's name. Category 2 includes uninsured or unregistered investments for which the securities are held by the counterparty's trust department or agent in the City's name. Category 3 includes uninsured and unregistered investments for which the securities are held by the counterparty or by its trust department or agent but not in the City's name. Cash and investments with escrow agent consist of undisbursed proceeds of the Public Project Bonds of 1999C, the G.O. Improvement Refunding Bonds of 1999A, the G.O. Water Revenue Refunding bonds of 1999B and the Lease Revenue Bonds of 1998 which are restricted for the payment of debt associated with the City's fire station and the payment for construction and capitalized interest costs of the Civic Complex, respectively. Note 3 FIXED ASSETS A summary of changes in general fixed assets is as follows: Balance Balance 1 /1 /00 Additions Deletions 12/31/00 Land and Improvements $ 2,208,755 $ 832,082 $ $ 3,040,837 Buildings 6,418,767 5,133 6,423,900 Equipment and Furniture 789,751 159,534 8,047 941,238 Other 704,037 14,333 - 718,370 Vehicles 1,019,332 113,420 52,307 1,080,445 Machinery/Shop Equipment 549,976 138,320 112,456 575,840 11,690,618 $ 1,262,822 $ 172,810 $ 12,780,630 A summary of Proprietary Fund fixed assets at December 31, 2000 is as follows: Water Sewer Total Building and Structures $ 48,690 $ $ 48,690 Machinery and Equipment 119,946 163,456 283,402 Water and Sewer Lines 14,137,319 15,938,234 30,075,553 Total 14,305,955 16,101,690 30,407,645 Less: Accumulated Depreciation (1,659,250) (2,017,890) (3,677,140) Net Fixed Assets $ 12,646,705 $ 14,083,800 $ 26,730,505 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 4 CITY INDEBTEDNESS The following is a schedule of changes in City indebtedness for the year ended December 31, 2000: Balance Balance 1 /1 /00 Additions Deletions 12/31/00 General Long Term Debt Account Group: Bonded debt: General obligation $ 6,904,570 Special assessment 14,045,000 Contracts for deed payable 1,459,352 Compensated absences payable — net 262,182 Total general long term debt 22,671,104 Proprietary Fund: Revenue bond 4,550,000 Compensated absences -net 12,217 Total $ 27,233,321 $ 325,450 $ 318,570 $ 6,911,450 880,000 13,165,000 250,000 1,209,352 62,854 325,036 388,304 1,448,570 21,610,838 210,000 4,340,000 17,621 - 29,838 $ 405,925 $ 1,658,570 $ 25,980,676 All long -term bonded indebtedness outstanding at December 31, 2000 is backed by the full faith and credit of the City, including special assessment bond issues. Delinquent special assessments receivable at December 31, 2000 totaled $7,777. The annual requirement to amortize all debt outstanding at December 31, 2000 including interest payments of $7,837,922 is as follows: 2001 2002 2003 2004 2005 and on General Obligation Bonds $ 919,337 $ 785,692 $ 673,646 $ 561,009 $ 7,374,334 $ Special Assessment Bonds 3,533,814 1,756,950 1,531,236 1,493,400 7,959,014 Revenue Bonds 1,081,551 418,564 412,189 415,091 3,338,545 Total $ 5,534,702 $ 2,961,206 $ 2,617,071 $ 2,469,500 $ 18,671,893 $ Total 10,314,018 16,274,414 5,665,940 32,254,372 It is not practicable to determine the specific year for payment of compensated absences payable. The contracts for deed obligations do not include regular and scheduled payments (payments occur as land is sold) and have been excluded from the above schedule of annual requirements to amortize debt. 30 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 4 CITY INDEBTEDNESS (CONTINUED) City indebtedness at December 31, 2000 is composed of the following: Final Issue Maturity Interest Original Date Date Rate Issue Payable 12/31/00 General Obligation Bonds: 1998 Equipment Certificates 2/1/98 12/31/01 6.00% 287,734 96,000 1999 Equipment Certificates 2/1/99 12/31/02 6.00% 307,570 205,000 2000 Equipment Certificates 2/1/00 12/31/03 6.00% 325,450 325,450 Civic Complex Lease Rev. Bonds - 98A 8/1/98 2/1/19 4.20 % -5.35% 5,350,000 5,350,000 Public Project Revenue Ref. Bonds - 99C 9/1/99 2/1/10 4.75 % -5.10% 980,000 935,000 Total General Obligation Bonds 7,250,754 6,911,450 Special Assessment Bonds: G.O. Improvement Refunding Bonds, 4/1/92 2/1/06 4.00 % -6.70% 3,640,000 1,970,000 '... Series 1992A G.O. Improvement Refunding Bonds, 10/1/96 2/1/07 4.20 % -5.20% 4,685,000 3,160,000 Series 1996A G.O. Improvement Refunding Bonds, 8/1/98 2/1/15 4.50 % -4.90% 4,310,000 4,310,000 Serie I998A G.O. Improvement Refunding Bonds, 8/1/98 2/1/15 4.50 % -4.90% 2,000,000 2,000,000 Series 1998B -- G.O. Improvement Refunding Bonds, 9/1/99 2/1/06 4.25 % -4.70% 1,725,000 1,725,000 Series 1999A Total Special Assessment Bonds 16,360,000 13,165,000 Revenue Bonds: G.O. Water Revenue Bonds, 4/1/92 2/1/08 4.50 % -6.80% 1,060,000 720,000 Series 1992B G.O. Water Revenue Bonds, 10/1/96 2/1/12 4.10 % -5.70% 3,320,000 2,940,000 Series 1996B G.O. Water Revenue Bonds, 9/1/99 2/1/08 4.25 % -4.90% 680,000 680,000 Series 1999B Total Revenue Bonds Total - All Bonds 5,060,000 4,340,000 28,670,754 24,416,450 Contract for Deed Payable 4/30/97 2/1/02 8.00% 511,714 511,714 Contract for Deed Payable 12/1/97 12/1/02 8.00% 347,638 347,638 Contract for Deed Payable 12/21/99 12/1/02 6.00% 600,000 350,000 Total Contracts for Deed 1,459,352 1,209,352 Compensated Absences Payable N/A 354,874 Total Indebtedness $ 30,130,106 $ 25,980,676 Description and Restrictions of Long -Term Debt General Obligation Bonds — The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds — These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. 31 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 4 CITY INDEBTEDNESS (CONTINUED) Public Project Revenue Bonds and Civic Complex Lease Revenue Bonds — These bonds were issued by the Economic Development Authority (EDA) of Lino Lakes for the purpose of financing the construction of public facilities. Pursuant to Minnesota Statutes and a lease purchase contract between the EDA and the City of Lino Lakes, a Trust Indenture between the EDA and a regional bank has been established for the purpose of financing payment of these bonds. The City has pledged rental payments in amounts equal to the debt service requirements and plans to annually appropriate City funds available for this purpose. As required by bond covenant, a reserve account has been established with a trustee, which is to be used to pay principal and interest on the bonds in the event that other available resources are inadequate to do so. Through the transactions described above, the City (Primary Government) has, in substance, assumed the debt service on the revenue bonds issued by the EDA. Therefore, the bonds have been included in the Primary Government's General Long -Term Debt Account Group. Further, the lease payment made by the City will be reflected as debt service principal and interest payments on the City's operating statements. Contract for Deeds — The City has entered into two contracts for deed bearing interest at 8 %, these contracts were issued for the purchase of land for the express purpose of resale. The contracts for deed will be repaid from the proceeds of land sales. One of the contracts calls for monthly interest only payments with a balloon payment due in December of 2002. The second contract calls for payments equal. to $2.50 per square foot to be made as land is sold, with the final unpaid balance due on December 1, 2002. Such payments are then applied first to interest accrued since the last payment date and then to the principal balance. The third contract for deed bears interest at 6 %, this contract calls for payments over the next three years. Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. The liability for Proprietary Fund employees is included in the accrued liabilities of those funds. Refunded Bonds General Obligation Improvement Refunding Bonds, Series 1992A — The City issued General Obligation Improvement Refunding Bonds, Series 1999A to advance refund the G.O. Improvement Refunding Bonds, Series 1992A in a crossover refunding pursuant to Minnesota Statutes § 475.67, Subd.13. The proceeds of the 1999A issue were placed into an irrevocable trust fund to provide or the future debt service of the 1992A bonds. Debt service on the series 1999A bonds will be paid from the trust fund through February 1, 2001 and the City will pay debt service thereafter. The City will continue to pay debt service on the 1992A bonds through February 1, 2001. The call date is February 1, 2001, at which time the trust fund will pay the 1992A bonds with maturity dates after February 1, 2002 General Obligation Water Revenue Refunding Bonds, Series 1992B — The City issued General Obligation Improvement Refunding Bonds, Series 1999B to advance refund the G.O. Improvement Refunding Bonds, Series 1992B in a crossover refunding pursuant to Minnesota Statutes § 475.67, Subd.13. The proceeds of the 1999B issue were placed into an irrevocable trust fund to provide or the future debt service of the 1992B bonds. Debt service on the series 1999B bonds will be paid from the trust fund through February 1, 2001 and the City will pay debt service thereafter. The City will continue to pay debt: service on the 1992B bonds through February 1, 2001. The call date is February 1, 2001, at which time the trust fund will pay the 1992B bonds with maturity dates after February 1, 2002. 32 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 5 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Lino Lake's legal debt margin for 2000 and 1999 is computed as follows: Market value Applicable percentage Debt Limit December 31, 2000 775,398,200 2 % 15,507,964 1999 687,737,400 2 % 13,754,748 Amount of debt applicable to debt limit: Total bonded debt 24,416,450 25,499,570 Less: Special assessment bonds (13,165,000) (14,045,000) Public project revenue bonds (6,285,000) (6,330,000) Cash and investment in Debt Service Funds (29,726) Revenue bonds (4,340,000) (4,550,000) Total debt applicable to debt limit 626,450 544,844 Legal debt margin 14,881,514 13,209,904 Note 6 DEFINED BENEFIT PENSION PLANS - STATEWIDE A. PLAN DESCRIPTION All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost - sharing, multiple - employer retirement plans. These plans are established and administered in accordance with Minnesota Statute, Chapters 353 and 356. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERF's Coordinated and Basic Plan members. The retiring member receives the higher of a step -rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2 percent of average salary for each of the first 10 years and 2.7 percent for each remaining year. For a Coordinated Plan member is 1.2 percent of average salary for each of the first 10 years and 1.7 percent for each remaining year. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUEDZ Under Method 2, the annuity accrual rate is 2.7 percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of service. For all PEPFF members and for PERF members whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A normal annuity is a lifetime annuity that ceases upon the death of the retiree - -no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will reduce the monthly normal annuity amount, because the annuity is payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet, are bound by the provisions in effect at the time they last terminated their public service. PERA issues a publicly available financial report that includes financial statements and required supplementary information for PERF and PEPFF. That report may be obtained by writing to PERA, 514 St. Peter Street #200, St. Paul, Minnesota, 55102 or by calling (651) 296 -7460 or 1- 800 - 652 -9026. B. FUNDING POLICY Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. PERF Basic Plan members and Coordinated Plan members are required to contribute 8.75% and 4.75 %, respectively, of their annual covered salary. PEPFF members are required to contribute 6.20% of their annual covered salary. The City of Lino Lakes is required to contribute the following percentages of annual covered payroll: 11.43% for Basic Plan PERF members, 5.18% for Coordinated Plan PERF members, and 9.30% for PEPFF members. The City's contributions for the years ending June 30, 2000, 1999, and 1998 were $207,255, $175,126, and $183,662, respectively, equal to the contractually required contributions for each year as set by state statute. 34 IMMO Imam IMmo Imm Imo CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed. Note 8 RECONCILIATION OF CONTRIBUTED CAPITAL Changes to contributed capital during the year are as follows: Water Sewer Total Beginning Balance $ 8,760,643 13,628,456 $ 22,389,099 Note 9 SEGMENT INFORMATION Capital Contributions $ 574,762 658,505 $ 1,233,267 The City actively maintains two Enterprise Funds which provide information for the year ended December 31, 2000 is as follows: Operating revenue Depreciation expense Operating income (loss) Property, plant and equipment additions Capital Contributions Net income (loss) Operating transfers in (out) Net property, plant and equipment Net working capital Total assets Bonds payable Total equity Water Utility $ 718,822 287,967 (64,328) 574,762 75,385 320,509 12,646,705 77,613 14,076,205 4,340,000 9,543,389 Depreciation on Contributed Assets $ (198,004) (306,801) $ (504,805) Ending Balance $ 9,137,401 13,980,160 $ 23,117,561 water and sanitary sewer services. Segment Sewer Utility $ 875,850 321,416 (87,295) 658,505 (37,863) 14,083,800 1,000,631 15,108,930 15,069,512 Totals 2000 $ 1,594,672 609,383 (151,623) 1,233,267 37,522 320,509 26,730,505 1,078,244 29,185,135 4,340,000 24,612,901 1999 $ 1,268,891 515,350 (176,549) 4,655,031 4,611,608 (301,305) 49,366 26,075,620 1,308,844 28,062,654 4,550,000 23,342,112 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 10 DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 2000 as follows: Fund Balance Deficit Special Revenue Funds: Economic Development Fund $ 1,143 Community Development Block Grant 944 Debt Service Funds: Public Project Refunding Bonds of 1999C 94,789 Capital Project Funds: Dedicated Parks 155,052 MSA Construction 425,143 1997 Construction 1,374,287 1998 Construction 2,839,838 Town Center Project 1,690 General Tax Increment Administrative 12,974 Tax Increment Financing 1 -6 40,950 Tax Increment Financing 1 -7 421,838 Tax Increment Financing 1 -9 8,238 Tax Increment Financing 3 -1 145,954 The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. Note 11 CONTINGENCIES Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment of the City attorney, remotely recoverable by plaintiffs. 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, 2000. Note 12 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies m 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. 36 N.= Wow CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 12 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT (CONTINUED) These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2000 and 1999. Future scheduled tax levies for all bonds outstanding at December 31, 2000 totaled $15,155,505. Note 13 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY At December 31, 2000 and 1999, the City had designated and reserved portions of its various fund equities through legal restriction and City Council authorization. Major fund equity appropriations at December 31, 2000 and 1999 are shown on the various balance sheets as segregations of the fund equity. A summary of such designations is as follows: December 31, 2000 1999 General Fund: Reserve for prepaid items $ 105,052 $ 115,359 Designated for cash flow reserve 3,436,544 3,319,115 Special Revenue Fund: Reserve for prepaid items Designated for recreation programs Debt Service Funds: Reserved for debt retirement Capital Project Funds: Reserved for Advance to Other Funds Reserved for land held for resale Designated for capital improvements Totals Note 14 SHARE IN GAS FRANCHISE PROFITS 1,017 51,319 4,101,453 582,916 989,506 10,061,453 $ 19,329,260 35,485 3,824,337 989,506 9,849,952 $ 18,133,754 The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service within the City of Lino Lakes. The amount reported as revenue in the General Fund for 2000 and 1999 totaled $56,600 and $43,852 , respectively. CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 15 INTERFUND RECEIVABLE AND PAYABLES Individual fund receivable and payable balances at December 31, 2000 are as follows: Fund Receivable Payable Special Revenue Funds: Economic Development Authority $ - $ 1,143 Community Development Block Grant - 3,617 Debt Service Fund: Public Project Refunding Bonds of 1999C 104,533 Capital Project Funds: Area and Unit Charge 6,263,850 MSA Construction 425,143 1997 Construction 1,333,772 1998 Construction 2,672,946 Town Center Project 991,196 General Tax Increment Administrative 11,599 Tax Increment Financing District 1 -6 - 40,594 Tax Increment Financing District 1 -7 381,744 Tax Increment Financing District 1 -9 6,441 Tax Increment Financing District 3 -1 166,555 Agency Fund: Investment Fund - 124,567 $ 6,263,850 $ 6,263,850 Advances to /from Other Funds Dedicated Parks $ $ 582,916 Areas and Unit Charges 582,916 $ 582,916 $ 582,916 Note 16 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self - insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. 38 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 16 RISK MANAGEMENT (CONTINUED) The City continues to carry commercial insurance for all other risks health insurance. There were no significant reductions in insurance from the previous coverage for any of the past three fiscal years. of loss, including disability and employee year or settlements in excess of insurance Note 17 CONDUIT DEBT OBLIGATIONS The City has issued Industrial Development Revenue Bonds to provide financial assistance to private- sector entities for the acquisition and construction of industrial and commercial facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying fmancial statements. As of December 31, 2000, two series of Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $2,550,000 and $4,800,000, respectively. Note 18 LEASE COMMITMENT The City of Lino Lakes entered into a lease agreement dated December 8, 1997 whereby the City constructed a facility on property it already owned. Upon completion, this facility was leased to the Independent School District No. 12 (ISD 12), the tenant, in January 1999 and will continue until June 30, 2009. The tenant's — payments are $110 per square foot per year for a total of $1,200,000 over the term of the lease. The schedule of remaining payments is as follows: Wwle 2001 2002 2003 2004 2005 Thereafter $ 112,500 112,500 112,500 112,500 112,500 412.500 $ 975,000 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2000 Note 19 JOINT FIRE VENTURE The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two commissioners to the District's Board. Each calendar year participating cities are to pay the District its share of the total operating and capital budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula takes into account each city's average number of calls, population, and total market value. During 2000, the City of Lino Lakes' contributions to the District were as follows: Operating $ 294,005 Capital 66,100 $ 360,105 Separate financial statements of the District can be obtained by contacting the Centennial Fire District. The unaudited condensed financial statements of the District as of December 31, 2000 are as follows: Total assets $ 1,564,519 Total liabilities 57,747 Total equity 1,506,772 Total operating revenue 515,450 Total operating expenses 469,608 40 COMBINING, INDIVIDUAL FUND AND ACCOUNT GROUP FINANCIAL STATEMENTS GENERAL FUND _ The General fund accounts for all financial resources except those required to be accounted for in another fund. - CITY OF LINO LAKES, MINNESOTA GENERAL FUND BALANCE SHEET - December 31, 2000 With Comparative Amounts At December 31, 1999 NINO Assets WINO Statement 6 2000 1999 Cash and investments $ 3,262,693 $ 3,150,236 Accounts receivable 77,823 167,249 Due from other governmental units 356,154 336,636 Taxes receivable: Delinquent 31,804 19,206 - Due from County 59,852 50,411 Prepaid items 105,052 115,359 Total assets $ 3,893,378 $ 3,839,097 Liabilities and Fund Balance Liabilities: Accounts payable $ 173,408 $ 157,838 - Salaries payable 136,239 211,597 Contracts payable - 1,225 Due to other governmental units 5,003 9,429 — Deferred revenue 37,132 24,534 Total liabilities 351,782 404,623 - Fund balance: Reserved for prepaid items 105,052 115,359 Unreserved: Designated for cash flow reserve 3,436,544 3,319,115 Total fund balance 3,541,596 3,434,474 INEW Total liabilities and fund balance $ 3,893,378 $ 3,839,097 41 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 (With Comparative Amounts For The Year Ended December 31, 1999) Statement 7 Page 1 of 6 2000 Over (Under) 1999 Budget Actual Budget Actual Revenue: General property taxes: Current and delinquent $ 3,320,877 $ 2,850,171 $ (470,706) $ 2,564,686 Fiscal disparities 452,164 452,164 378,324 Excess tax increments 13,000 3,722 (9,278) 19,654 Total general property taxes 3,333,877 3,306,057 (27,820) 2,962,664 Licenses and permits: Non - business 616,193 849,992 233,799 794,945 Business 26,050 34,754 8,704 28,774 Total licenses and permits 642,243 884,746 242,503 823,719 Intergovernmental: Federal: Other 84,400 76,562 (7,838) 47,123 State: Local performance aid - - 17,631 Homestead credit 303,621 303,621 329,326 Mobile home homestead credit - 3,470 3,470 3,461 Police state aid 95,000 110,384 15,384 112,587 MSA maintenance 120,000 147,707 27,707 139,940 Other 30,000 20,622 (9,378) 116,780 County/Regional: Solid waste 37,000 40,240 3,240 32,397 Other 2,500 (2,500) 140,808 Total intergovernmental 672,521 7D2,606 30,085 940,053 Special Assessments: Penalties and Interest 5,405 5,405 Charges for services: General government 34,500 35,493 993 33,281 Planning /engineering 150,000 18,040 (131,960) 12,810 Recreation 7,000 7,000 7,000 Fees retained from collection for other governments - SAC /surcharge 4,000 4,521 521 6,179 Administrative charge - other funds 133,000 122,892 (10,108) 136,766 Aerial map charge - other funds 12,000 18,810 6,810 17,910 Public safety 26,000 65,389 39,389 64,564 Total charges for services 366,500 272,145 (94,355) 278,510 Fines and forfeits 100,000 124,458 24,458 87,434 Investment earnings 87,531 140,592 53,061 27,655 Refunds and reimbursements 42,000 58,200 16,200 74,095 Miscellaneous: Gas franchise fees 42,000 56,600 14,600 43,852 Cable TV 17,000 33,427 16,427 26,610 Sale of property 10,000 22,158 12,158 70,916 Donations 3,792 7,001 3,209 5,100 Other - - - 2,845 Total miscellaneous 72,792 119,186 46,394 149,323 Total revenue 5,317,464 5,613,395 295,931 5,343,453 42 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 (With Comparative Amounts For The Year Ended December 31, 1999) Statement 7 Page 2of6 2000 Over (Under) Budget Actual Budget 1999 Actual Expenditures: General government: Mayor and council: Current Immt Personal services $ 36,757 $ 33,802 $ (2,955) $ 31,287 Supplies 500 611 111 819 Other services and charges 32,224 34,744 2,520 28,264 Contractual Services 18,000 19,748 1,748 18,546 Total mayor and council 87,481 88,905 1,424 78,916 Elections: .... Current Personal services 16,700 13,787 (2,913) 5,438 Supplies 300 346 46 59 Other services and charges 450 1,607 1,157 5,308 IIMM Capital outlay 2,500 24,696 22,196 - Total elections 19,950 40,436 20,486 10,805 Administration: �-- Current Personal services 323,307 312,820 (10,487) 354,388 Supplies 4,000 3,256 (744) 10,392 Other services and charges 39,996 27,058 (12,938) 32,397 _ Contractual Services 3,500 6,578 3,078 3,313 Capital outlay 600 1,873 1,273 Total administration 371,403 351,585 (19,818) 400,490 Finance: Current Personal services 163,320 162,162 (1,158) 113,483 Supplies 1,600 2,517 917 2,224 Other services and charges 27,953 48,008 20,055 34,338 Contractual Services 56,950 55,956 (994) 60,653 Capital outlay 1,050 1,819 769 23,508 Total finance 250,873 270,462 19,589 234,206 Cable TV: Current ... Personal services 3,495 1,729 (1,766) 2,193 Supplies 200 90 (110) 7 Capital outlay 201 Total cable TV 3,695 1,819 (1,876) 2,401 Consultants: Current Legal 125,000 147,100 22,100 117,706 43 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 (With Comparative Amounts For The Year Ended December 31, 1999) General government: (continued) Economic Development: Current Statement 7 Page 3 of 6 2000 Over (Under) Budget Actual Budget 1999 Actual Personal services $ 183,289 $ 169,368 $ (13,921) $ 134,480 Supplies 750 1,702 952 897 Other services and charges 27,759 26,612 (1,147) 144,408 Contractual services 16,500 1,066 (15,434) 1,869 Capital outlay 3,800 4,049 249 - Total economic development 232,098 202,797 (29,301) 281,654 Planning and zoning commission: Current Personal services 113,166 119,663 6,497 110,295 Supplies 477 477 537 Other services and charges 41,959 8,526 (33,433) 10,573 Contractual services 19,150 13,625 (5,525) 13,819 Capital outlay 1,000 475 (525) Total planning and zoning commission 175,275 142,766 (32,509) 135,224 Engineering /planning: Current Personal services 18,327 Supplies - 329 Other services and charges - 35 35 1,281 Contractual services 190,000 174,509 (15,491) 136,273 Capital outlay - 1,557 1,557 642 Total engineering /planning 190,000 176,101 (13,899) 156,852 Senior Service Current Personal services 12,425 12,450 25 11,754 Supplies 300 - (300) - Other services and charges 903 897 (6) 284 Capital outlay 500 511 11 179 Total charter commission 14,128 13,858 (270) 12,217 Charter commission: Current Supplies 200 - (200) Other services and charges 4,800 515 (4,285) Capital outlay 538 538 988 Total charter commission 5,000 1,053 (3,947) 988 General government buildings: Current Personal services 49,655 53,966 4,311 23,518 Supplies 35,400 32,637 (2,763) 19,714 Other services and charges 183,206 192,859 9,653 163,784 Contractual services 49,000 27,166 (21,834) 18,404 Capital outlay 17,000 27,018 10,018 114,190 Total general government buildings 334,261 333,646 (615) 339,610 Total general government 1,809,164 1,770,528 44 (38,636) 1,771,069 CITY OF LINO LAKES, MINNESOTA Statement 7 GENERAL FUND Page 4 of 6 STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 (With Comparative Amounts For The Year Ended December 31, 1999) 2000 Over (Under) Budget Actual Budget 1999 Actual - Public safety: Police: Current Personal services $ 1,487,034 $ 1,471,071 $ (15,963) $ 1,338,926 . - Supplies 22,860 29,780 6,920 25,612 Other services and charges 84,453 85,200 747 96,649 Contractual services 35,520 38,922 3,402 24,781 Capital outlay 12,732 31,617 18,885 6,349 Total police 1,642,599 1,656,590 13,991 1,492,317 Fire protection: Current Contractual services 294,005 294,005 283,178 Building inspection: Current Personal services 172,122 170,278 (1,844) 144,126 Supplies 1,000 1,613 613 2,139 Other services and charges 5,542 2,392 (3,150) 3,200 Contractual services 30,300 33,435 3,135 33,209 Capital outlay 33 33 Total building inspection 208,964 207,751 (1,213) 182,674 Total public safety 2,145,568 2,158,346 12,778 1,958,169 Public works: Streets: Current Personal services 295,126 271,243 (23,883) 232,667 Supplies 96,010 82,369 (13,641) 78,797 Other services and charges 62,667 70,897 8,230 54,685 Contractual services 105,340 102,246 (3,094) 81,722 Capital outlay - 1,537 Total streets 559,143 526,755 (32,388) 449,408 Fleet: Current ,., Personal services 78,391 71,727 (6,664) 70,703 Supplies 117,030 136,170 19,140 89,886 Other services and charges 17,924 31,553 13,629 18,048 Contractual services 25 25 25 Capital outlay 15,000 20,190 5,190 Total fleet 228,345 259,665 31,320 178,662 Total public works 787,488 786,420 (1,068) 628,070 45 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 (With Comparative Amounts For The Year Ended December 31, 1999) Statement 7 Page 5of6 2000 Over (Under) Budget Actual Budget 1999 Actual Parks and recreation: Parks: Current Personal services $ 328,083 $ 328,132 $ 49 $ 314,057 Supplies 51,100 51,262 162 43,230 Other services and charges 47,630 40,534 (7,096) 43,453 Contractual services 17,100 13,776 (3,324) 17,009 Capital outlay 55,750 7,695 (48,055) 49,788 Total parks 499,663 441,399 (58,264) 467,537 Recreation: Current Personal services 186,624 189,190 2,566 157,396 Supplies 6,000 5,922 (78) 4,048 Other services and charges 19,669 14,738 (4,931) 13,424 Contractual services 4,700 4,328 (372) 4,758 Capital outlay 286 286 - Total recreation 216,993 214,464 (2,529) 179,626 Total parks and recreation 716,656 655,863 (60,793) 647,163 Conservation of natural resources: Forestry: Current Personal services 30,827 31,619 792 29,535 Supplies 2,510 208 (2,302) 91 Other services and charges 2,592 280 (2,312) 468 Contractual services 5,550 7,009 1,459 18,915 Capital outlay 22,000 31,110 9,110 14,102 Total forestry 63,479 70,226 6,747 63,111 Storm damage cleanup Current Other services and charges - 3,581 Contractual services 68,528 Total storm damage cleanup 72,109 Environmental: Current Personal services 30,856 31,209 353 28,878 Supplies 2,700 2,494 (206) 691 Other services and charges 9,192 6,876 (2,316) 7,474 Contractual services 5,600 212 (5,388) 38,156 Capital outlay 2,000 (2,000) Total environmental 50,348 40,791 (9,557) 75,199 46 CITY OF LINO LAKES, MINNESOTA GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 (With Comparative Amounts For The Year Ended December 31, 1999) Statement 7 Page 6 of 6 2000 Over (Under) Budget Actual Budget 1999 Actual Conservation of natural resources: (continued) Solid waste abatement: Current Personal services $ 6,168 $ 7,909 1,741 $ 7,875 MIMI Supplies 700 50 (650) 32 Other services and charges 6,900 1,983 (4,917) 2,142 Contractual services 15,200 16,694 1,494 12,615 Capital outlay 4,338 4,338 Total solid waste abatement 28,968 30,974 2,006 22,664 Total conservation of natural resources 142,795 141,991 (804) 233,083 Total expenditures 5,601,671 5,513,148 (88,523) 5,237,554 Revenue over expenditures (284,207) 100,247 384,454 105,899 Other financing sources (uses): Operating transfer from Capital Projects Funds 56,875 56,875 155,783 Operating transfer to Capital Projects Funds (189,174) Operating transfer to Special Revenue Fund (50,000) (50,000) Operating transfer to Enterprise Fund (49,366) Total other fmancing sources (uses) 6,875 6,875 (82,757) Net increase (decrease) in fund balance $ (277,332) 107,122 $ 384,454 23,142 Fund Balance - January 1 3,434,474 3,411,332 Fund balance - December 31 $ 3,541,596 $ 3,434,474 47 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 Special Revenue Funds during the year. MEM Economic Development Authority - established to account for the receipt and uses of funds for economic purposes. Community Development Block Grant - to account for the financial activity related to projects funded by CDBG programs. Program Recreation - established to account for various self - supporting recreational programs. CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUNDS COMBINING BALANCE SHEET December 31, 2000 (With Comparative Totals For December 31, 1999) Statement 8 Economic Conununity Development Development Program Totals Authority Block Grant Recreation 2000 1999 Assets Cash and investments $ $ - $ 53,882 $ 53,882 $ 41,031 Due from other govemments 2,673 2,673 1,230 Prepaid items - 1,017 1,017 Total assets $ $ 2,673 $ 54,899 $ 57,572 $ 42,261 Liabilities and Fund Balance Liabilities: Interfund payable $ 1,143 $ 3,617 $ $ 4,760 $ 2,754 Accounts payable - 1,374 1,374 3,987 Salaries payable 1,189 1,189 1,559 Total liabilities 1,143 3,617 2,563 7,323 8,300 Fund balance: Reserved for prepaid items 1,017 1,017 Unreserved: Designated for recreation programs 51,319 51,319 35,485 Undesignated (1,143) (944) (2,087) (1,524) Total fund balance (1,143) (944) 52,336 50,249 33,961 Total liabilities and fund balance $ $ 2,673 $ 54,899 $ 57,572 $ 42,261 48 ▪ CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - For The Year Ended December 31, 2000 (With Comparative Totals For the Year Ended December 31, 1999) Statement 9 .�. Revenue: Intergovernmental: Federal: CDBG • Charges for services: Recreation fees Investment earnings Total revenues Economic Community Development Development Program Totals Authority Block Grant Recreation 2000 1999 $ 19,109 $ $ 19,109 $ 20,604 19,109 194,628 194,628 164,555 3,193 3,193 671 197,821 216,930 185,830 Expenditures: General government: _ Current: Personal services 576 10,300 10,876 r 9,807 Other services and charges 8,796 8,796 285 Contractual services - 12,071 Parks, recreation and forestry: Current: Personal services 87,895 87,895 72,787 Supplies 92,617 92,617 82,266 Other services and charges 458 458 2,643 Contractual services 144 Capital outlay 9,086 Total expenditures 576 19,096 180,970 200,642 189,089 ■ Revenue (under) expenditures (576) 13 16,851 16,288 (3,259) Fund balance - January 1 (567) (957) 35,485 33,961 37,220 Fund balance - December 31 $ (1,143) $ (944) $ 52,336 $ 50,249 $ 33,961 49 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND - PROGRAM RECREATION STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2000 (With Comparative Totals For the Year Ended December 31, 1999) Statement 10 2000 Over (Under) Budget Actual Budget 1999 Actual Revenue Charges for services: Recreation Fees $ 172,760 $ 194,628 $ 21,868 $ 164,555 Investment earnings 3,193 3,193 661 Total revenue 172,760 197,821 25,061 165,216 Expenditures: Current: Personal services 73,547 87,895 14,348 72,787 Supplies 77,018 92,617 15,599 82,266 Other services and charges 450 458 8 2,643 Contractual services - 144 Capital outlay 9,086 Total expenditures 151,015 180,970 29,955 166,926 Net increase (decrease) in fund balance $ 21,745 16,851 $ (4,894) (1,710) Fund balance - January 1 35,485 37,195 Fund balance - December 31 $ 52,336 $ 35,485 50 NNW DEBT SERVICE FUNDS The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and related costs on general long -term debt. The City's Debt Service Funds account for three types of bonded indebtedness: • General Debt Bonds - are repaid primarily from property taxes. • Improvement Bonds - are repaid primarily from special assessments. • Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA leasing the buildings to the City of Lino Lakes and other tenants. CITY OF LINO LAKES, MINNESOTA DEBT SERVICE FUNDS COMBINING BALANCE SHEET December 31, 2000 (With Comparative Totals For 1999) Improvement Improvement Improvement Improvement Bonds of Bonds of Bonds of Bonds of 1992A 1996A 1998A 1998B Assets Cash and investments $ 65,990 $ 829,374 $ 56,816 $ 262,343 Cash and investments with escrow agent Accrued Interest Receivable Accounts Receivable Taxes receivable: Delinquent 1,530 Due from County Special assessments receivable: Delinquent 1,151 - - - Deferred 37,607 304,528 199,548 383,886 Due from County 231 - - 3,550 Total assets $ 104,979 $ 1,133,902 $ 256,364 $ 651,309 Liabilities and Fund Balance Liabilities: Interfund payable $ $ - $ - $ Accounts payable 43,900 255 255 Deferred revenue 38,758 304,528 199,548 385,416 Total liabilities 38,758 348,428 199,803 385,671 Fund balance Reserved for debt retirement Unreserved - undesignated Total fund balance Total liabilities and fund balance 785,474 56,561 265,638 66,221 - - 66,221 785,474 56,561 265,638 $ 104,979 $ 1,133,902 $ 256,364 $ 651,309 51 Statement 11 WINN Public Project Lease Improvement Public Project Certificates Revenue Revenue Refunding Refunding of Bonds Bonds Bonds Bonds Totals Indebtedness of 1990A of 1998A of 1999A of 1999C 2000 1999 $ 44,233 $ 391,847 $ 332,466 $ Ram 3,454 5,399 493,662 2,463 1,503 3,282 2,332 5,277 $ 53,086 $ 395,682 MN $ 837,150 4,213 $ 1,680,657 31,736 $ 1,987,282 $ 1,611,598 9,696 2,184,015 2,188,920 48 34,247 22,727 412 9,769 3,993 13,008 10,413 1,151 2,973 925,569 1,347,884 3,781 2,413 $ 1,716,606 $ 9,744 $ 5,158,822 $ 5,191,333 g. $ $ $ $ - $ 104,533 $ 104,533 $ 18,380 - 255 250 - 44,915 3,454 1,503 3,282 936,489 1,354,850 3,454 1,503 3,537 250 104,533 1,085,937 1,373,230 49,632 394,179 833,613 1,716,356 4,101,453 3,824,337 (94,789) (28,568) (6,234) 49,632 394,179 833,613 1,716,356 (94,789) 4,072,885 3,818,103 $ 53,086 $ 395,682 $ 837,150 $ 1,716,606 $ 9,744 $ 5,158,822 $ 5,191,333 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For the Year Ended December 31, 2000 With Comparative Totals For The Year Ended December 31, 1999 Revenue: General property taxes: Current and delinquent Fiscal disparities Intergovernmental: State: HACA and equalization aid Special assessments: Current and delinquent Prepayments Penalties and interest Investment earnings Lease Revenue Total revenue Improvement Improvement Improvement Improvement Bonds of Bonds of Bonds of Bonds of 1992A 1996A 1998A 1998B 9,081 35,073 888 534,714 138 416 28,308 10,107 598,511 107 175,027 175,134 $ 119,193 18,991 12,752 920 20,588 60,095 6,912 239,451 Expenditures: Debt service: Principal 280,000 600,000 Interest 137,345 167,300 198,225 92,702 Refunding bond issuance costs - - - Fiscal charges 750 2,505 599 599 Total expenditures 418,095 769,805 198,824 93,301 Revenue over (under) expenditures (407,988) (171,294) (23,690) 146,150 Other financing sources (uses): Operating transfer from Capital Project Funds 417,345 Bond proceeds - Payment to refunding bond escrow Total other financing sources (uses) 417,345 Net increase (decrease) in fund balance 9,357 (171,294) (23,690) 146,150 Fund balance - January 1 56,864 956,768 80,251 119,488 Fund balance - December 31 $ 66,221 $ 785,474 $ 56,561 $ 265,638 53 loimm MEN Now Statement 12 Public Project Lease Improvement Public Project Certificates Revenue Revenue Refunding Refunding of Bonds Bonds Bonds Bonds Totals Indebtedness of 1990A of 1998A of 1999A of 1999C 2000 1999 $ 264,180 $ 114,224 $ 257,409 $ 42,046 18,173 41,031 28,234 12,203 27,552 460 210 345 - 5,379 14,616 32,388 76,434 537 - 112,500 - 340,299 159,426 471,225 76,434 537 273,570 51,390 324,960 15,339 $ 755,006 $ 672,211 120,241 100,023 80,741 87,068 45,181 839,350 731,217 71,887 61,664 34 164,574 56,904 112,500 112,500 2,071,124 1,939,977 - 45,000 1,198,570 1,190,734 267,117 71,025 42,292 1,027,396 1,021,234 - 46,205 230 3,411 450 1,800 10,344 8,640 230 270,528 71,475 89,092 2,236,310 2,266,813 159,196 200,697 4,959 (88,555) (165,186) (326,836) 2,623 419,968 423,850 � „ 2,692,969 - (961,098) 2,623 419,968 2,155,721 15,339 159,196 203,320 4,959 (88,555) 254,782 1,828,885 34,293 234,983 630,293 1,711,397 (6,234) 3,818,103 1,989,218 $ 49,632 $ 394,179 $ 833,613 $ 1,716,356 $ (94,789) $ 4,072,885 $ 3,818,103 OWNS 54 CAPITAL PROJECT FUNDS Capital Project Funds account for the acquisition or construction of major capital facilities other Ulan than those financed by Proprietary Funds and Trust Funds. The City maintained the following Capital Project Funds during the year: MINN IMMIN Imwr Capital Improvement Projects - to account for the proceeds from Equipment Certificates. Closed Bond Fund - to account for excess funds from matured bond issues. Dedicated Parks - to account for the receipt and use of monies collected from dedicated parks fees. Area and Unit Charge - to account for the collection of water and sewer unit charges to be used for debt payments and construction of infrastructure. MSA Construction - to account for the collection of assessments on MSA projects. Street Reconstruction — to account for the financing of future reconstruction of City streets. Sealcoating - to account for money received from assessments and developer deposits for future street sealcoating projects. Surface Water Management - to account for the financing of surface water management and storm water improvements. SAC Revolving - to account for refunds from the Metropolitan Council Environmental Service for properties that paid Sewer Area Charges (SAC) that will be collected in the future. Construction Funds - to account for the construction of public improvements. Town Center Project - to account for costs associated with the construction of the City Town Center project. Civic Center Project - to account for costs associated with the construction of the Civic Complex project Tax Increment - to account for development projects financed with tax increments. CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 Area Capital Closed and Improvement Bond Dedicated Unit MSA Projects Fund Parks Charge Construction Assets Cash and investments $ 157,721 $ 836,287 $ 434,984 $ 970,190 $ Cash and investments with escrow agent - - Accrued interest receivable - Accounts receivable 15,422 Interfund receivable 6,263,850 Taxes receivable: Due from County Delinquent tax increment Special assessments receivable: Delinquent 38 4,926 Deferred 41,233 1,711,469 Due from County - 6,011 Advances to Other Funds 582,916 Land held for resale - Total assets Liabilities and Fund Balance Liabilities: Interfund payable Accounts payable Retainage payable Advances from Other Funds Deferred revenue Total liabilities $ 157,721 $ 877,558 $ 434,984 $ 9,554,784 $ $ - $ - $ - 469 7,211 7,120 21,430 - 582,916 - 1,216 41,413 - 1,716,395 1,685 48,624 590,036 1,737,825 Fund balance (deficit): Reserved for Advances to Funds 582,916 Reserved for land held for resale Unreserved: Designated: Capital improvements - 7,234,043 Undesignated 156,036 828,934 (155,052) - (425,143) Total fund balance (deficit) 156,036 828,934 (155,052) 7,816,959 (425,143) $ 425,143 425,143 Total liabilities and fund balance $ 157,721 $ 877,558 $ 434,984 $ 9,554,784 $ 55 Maw Statement 13 Page 1 of 3 Street Reconstruction Sealcoating Surface Water SAC Interim Management Revolving Construction $ 445,036 $ 154,715 $ 1,160,838 $ 359,657 $ 222,964 1,060 210 1,452 51,892 151,539 353,839 1,248 $ 496,928 $ 307,524 $ 1,517,377 $ 359,657 $ 222,964 57 27,967 3,799 51,892 51,949 151,749 355,291 179,716 359,090 444,979 127,808 1,158,287 - 222,964 - - 359,657 - 444,979 127,808 1,158,287 359,657 222,964 $ 496,928 $ 307,524 $ 1,517,377 $ 359,657 $ 222,964 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 1994 1995 1996 1997 1998 Construction Construction Construction Construction Construction Assets Cash and investments $ $ $ 694,874 $ $ Cash and investments with escrow agent Accrued interest receivable Accounts receivable Interfund receivable Taxes receivable: Due from County Delinquent tax increment Special assessments receivable: Delinquent Deferred Due from County Advances to Other Funds Land held for resale Total assets Liabilities and Fund Balance Liabilities: Interfund payable Accounts payable Retainage payable Advances from Other Funds Deferred revenue Total liabilities $ $ $ 694,874 $ $ $ $ $ 1,333,772 $ 2,672,946 40,515 156,657 10,235 1,374,287 2,839,838 Fund balance (deficit): Reserved for Advances to Other Funds Reserved for land held for resale Unreserved: Designated: Capital improvements - 694,874 Undesignated (1,374,287) (2,839,838) Total fund balance (deficit) 694,874 (1,374,287) (2,839,838) Total liabilities and fund balance $ $ $ 694,874 $ $ 57 Statement 13 Page 2 of 3 Town Civic Town General Center Center Center Tax Increment Project Project Infrastructure Administrative MEI 989,506 $ 87,400 $ 49,917 $ $ 989,506 $ 87,400 $ 49,917 $ $ 991,196 $ - $ - $ 11,599 4,942 24,029 1,375 Mew 991,196 4,942 lam 989,506 24,029 12,974 82,458 25,888 (991,196) - - (1,690) 82,458 25,888 (12,974) (12,974) $ 989,506 $ 87,400 $ 49,917 $ MINIM 58 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals for December 31, 1999 Tax Tax Tax Tax Tax Increment Increment Increment Increment Increment Financing Financing Financing Financing Financing 1 -4 1 -5 1 -6 1 -7 1 -8 Assets Cash and investments $ 44,683 $ 31,708 $ $ $ 11,525 Cash and investments with escrow agent - Accrued interest receivable Accounts receivable Interf ind receivable Taxes receivable: Due from County 3 574 33 1,314 149 Delinquent tax increment 89 1,974 121 Special assessments receivable: Delinquent Deferred Due from County Advances to Other Funds Land held for resale Total assets Liabilities and Fund Balance $ 44,686 $ 32,282 $ 122 $ 3,288 $ 11,795 Liabilities: Interfund payable $ $ - $ 40,594 $ 381,744 $ - Accounts payable 17,646 389 41,408 844 Retainage payable Advances from Other Funds Deferred revenue 89 1,974 121 Total liabilities 17,646 41,072 425,126 965 Fund balance (deficit): Reserved for Advances to Other Funds Reserved for land held for resale Unreserved: Designated: 10,830 Capital improvements 44,686 14,636 Undesignated - (40,950) (421,838) - Total fund balance (deficit) 44,686 14,636 (40,950) (421,838) 10,830 Total liabilities and fund balance $ 44,686 $ 32,282 $ 122 $ 3,288 $ 11,795 59 IMEID Statement 13 Page 3 of 3 •M, Tax Tax Inci,,uent Increment Financing Financing Totals 1 -9 3 -1 2000 1999 $ $ IIMINIE MOM $ IIMN 111,942 $ 5,662,499 $ 5,368,066 - 2,571 10 15,422 16,805 6,263,850 5,772,540 115,075 13,238 6,674 8,858 5,848 6,626 5,920 2,309,972 3,222,475 7,259 3,452 582,916 251,570 989,506 989,506 $ 118,616 $ 15,961,983 $ 15,652,001 $ 6,441 $ 166,555 $ 6,029,990 $ 5,624,924 1,797 91,341 448,996 860,422 10,235 350,436 582,916 251,570 6,674 2,326,814 3,234,243 8,238 264,570 9,398,951 10,321,595 Mow (8,238) (8,238) 582,916 251,570 989,506 989,506 10,061,453 9,598,382 (145,954) (5,070,843) (5,509,052) (145,954) 6,563,032 5,330,406 $ $ 118,616 $ 15,961,983 $ 15,652,001 Maw 60 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2000 With Comparative Totals For The Year Ended December 31, 1999 Capital Closed Area and Improvement Bond Dedicated Unit MSA Projects Fund Parks Charge Construction Revenue: General property taxes: Tax increments $ $ $ $ $ Special assessments: Current and delinquent 16,421 169,558 Prepayments - 156,022 1,123,892 Penalties and interest 883 322 Utility Charges - - 151,522 Investmenteamings 12,813 35,850 16,833 387,061 Refunds and reimbursements 8,000 - Miscellaneous Rental payments - Park dedication fees 96,400 - 167,087 Sale of property - - Total miscellaneous 96,400 167,087 Total revenue 117,213 209,176 183,920 1,832,355 Expenditures: Current: General govemment: Contractual services 6,981 68,983 262 Public works: Contractual services 2,342 Capital outlay: General government 30,342 - - - Public safety 155,136 - Public works 80,881 Parks, recreation and forestry 40,674 94,488 - Debt service: Principal 250,000 - Interest 4,142 Construction/acquisition - Total expenditures 309,375 8,981 348,630 68,983 262 Revenue over (under) expenditures (192,162) 200,195 (164,710) 1,763,372 (262) Other financing sources (uses): Operating transfer from Capital Project Funds - 50,000 Operating transfer to General Fund (56,875) - - Operating transfer to Debt Service Funds - (417,345) Operating transfer to Enterprise Funds (18,800) - (301,709) - Contract for deed proceeds - - Bond proceeds 325,450 - Total other financing sources (uses) 249,775 50,000 (719,054) Net increase (decrease) in fund balance 57,613 200,195 (114,710) 1,044,318 (262) Fund balance (deficit) Beg nning of year, as previously stated 98,423 626,739 (40,342) 7,204,559 (424,881) Prior period adjustment Beginning of year, as restated 98,423 628,739 (40,342) 7,204,559 (424,881) Residual equity transfer in Residual equity transfer out (431,918) Fund balance (deficit) - December 31 $ 156,036 $ 828,934 $ (155,052) $ 7,816,959 $ (425,143) 61 WIM IMMO ■ MINN Statement 14 Page 1 of 3 Surface Street Water SAC Interim Reconstruction Sealcoating Management Revolving Construction 12 16,742 30,909 183,596 224,906 329,769 3 18 52 17,771 6,872 63,237 18,418 11,248 33,225 ■ 201,382 281,763 ■ 423,967 18,418 3,067 67,150 3,067 198,315 210,549 210,549 54,580 472,651 594,381 41,342 41,342 52,590 5,955 31,943 1,703 5,955 33,646 71,214 (170,414) 12,463 18,944 198,315 71,214 (170,414) 12,463 18,944 246,664 56,594 1,328,701 347,194 204,020 246,664 56,594 1,328,701 347,194 204,020 ■ $ 444,979 $ 127,808 $ 1,158,287 $ 359,657 $ 222,964 62 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2000 With Comparative Totals For The Year Ended December 31, 1999 1994 1995 1996 1997 1998 Construction Construction Construction Construction Construction Revenue: General property taxes: Tax increments Special assessments: Current and delinquent - - Prepayments - Penalties and interest Utility Charges Investment earrings 5,461 - 35,123 - Refunds and reimbursements - 15,814 Miscellaneous Rental payments - - Park dedication fees Sale of property - - Total miscellaneous Total revenue 5,461 - 35,123 15,814 Expenditures: Current: General government: Contractual services 1,897 45 164,487 275,339 Public works: Contractual services - - Capital outlay General government Public safety - Public works Parks, recreation and forestry - - Debt service: Principal Interest - Construction/acquisition 8,287 - 4,301 361 Total expenditures 10,184 - 45 168,788 275,700 Revenue over (under) expenditures (4,723) - 35,078 (168,788) (259,886) Other financing sources (uses): Operating transfer from Capital Project Funds Operating transfer to General Fund Operating transfer to Debt Service Funds Operating transfer to Enterprise Funds Contract for deed proceeds Bond proceeds Total other financing sources (uses) Net increase (decrease) in fund balance (4,723) 35,078 (168,788) (259,886) Fund balance (deficit) Beginning of year, as previously stated (436,219) 9,024 659,796 (1,205,499) (2,579,952) Prior period adjustment Beginning of year, as restated (436,219) 9,024 659,796 (1,205,499) (2,579,952) Residual equity transfer in 440,942 - - Residual equity transfer out (9,024) Fund balance (deficit) - December 31 $ $ $ 694,874 $ (1,374,287) $ (2,839,838) 63 MEM WIEM IMm IMMO Yaw fmm Statement 14 Page 2 of 3 Town Civic Town General Center Center Center Tax Increment Project Project Infrastructure Administrative 169 27,811 27,980 9,787 5,430 2,268 33,867 39,297 12,055 3,439 24,029 5,790 3,439 24,029 5,790 (27,980) 35,858 (11,974) (5,790) (27,980) (93,710) 120,000 (2,623) (2,623) 33,235 (11,974) (5,790) 49,223 37,862 (7,184) 26,290 49,223 37,862 (7,184) $ (1,690) $ 82,458 $ 25,888 $ (12,974) 64 CITY OF LINO LAKES, MINNESOTA CAPITAL PROJECT FUNDS COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE For The Year Ended December 31, 2000 With Comparative Totals For The Year Ended December 31, 1999 Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment Financing Financing Financing Financing Financing 1-4 1 -5 1 -6 1 -7 1 -8 Revenue: General property taxes: Tax increments $ 170 $ 43,101 $ 8,998 $ 351,067 $ 35,049 Special assessments: Current and delinquent Prepayments Penalties and interest Utility Charges - Investment earnings 2,265 840 - 328 Refunds and reimbursements - Miscellaneous Rental payments - Park dedication fees - Sale of property Total miscellaneous Total revenue 2,435 40,941 8,998 351,067 35,377 Expenditures: Current: General government: Contractual services Public works: Contractual services Capital outlay General government Public safety Public works Parks, recreation and forestry Debt service: Principal Interest Construction/acquisition Total expenditures 137 37,426 9,412 314,408 45,631 137 37,426 9,412 314,408 45,631 Revenue over (under) expenditures 2,298 3,515 (414) 36,659 (10,254) Other financing sources (uses): Operating transfer from Capital Project Funds - Operating transfer to General Fund - - - Operating transfer to Debt Service Funds - - Operating transfer to Enterprise Funds - - Contract for deed proceeds Bond proceeds - - - Total other financing sources (uses) Net increase (decrease) in fund balance 2,298 3,515 (414) 36,659 (10,254) Fund balance (deficit) Beginning of year, as previously stated 42,388 1':,121 (40,536) (458,497) 21,084 Prior period adjustment - Benningofyear,asrestated 42,388 1.,121 (40,536) (458,497) 21,084 Residual equity transfer in Residual equity transfer out Fund balance (deficit) - December 31 $ 44,686 $ 14,636 $ (40,950) $ (421,838) • $ 10,830 65 Statement 14 Page3 of3 Tax Increment Tax Increment ■ Financing Financing Totals 1 -9 3 -1 2000 1999 $ 11,505 $ 585,702 $ 1,032,592 $ 837,036 11,505 233,642 744,222 2,018,185 815,234 11,065 48,871 151,522 119,294 621,818 145,691 90,906 44,960 52,605 263,487 39,126 41,342 - 304,829 91,731 585,702 4,464,559 2,847,039 7,847 415,386 1,418,127 989,693 IMIM 72,559 1,392 33,781 5,250 155,136 173,149 135,461 100,369 135,162 1,078,266 250,000 4,142 725,663 8,775,128 7,847 415,386 2,930,031 11,123,247 3,658 170,316 1,534,528 (8,276,208) IMM IMMO IMINIIII 50,000 368,664 (56,875) (55,783) (419,968) (703,340) (320,509) - 600,000 325,450 307,570 (421,902) 517,111 3,658 170,316 1,112,626 (7,759,097) (316,270) 5,330,406 13,089,503 - 120,000 (316,270) 5,450,406 13,089,503 440,942 (440,942) $ (8,238) $ (145,954) $ 6,563,032 $ 5,330,406 Maya MIMI 66 ENTERPRISE FUNDS MwMi _ Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent of the government's council is the cost of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the government's council has decided that periodic — determination of net income is appropriate for accountability purposes. The City maintained the following Enterprise Funds during the year: Water Fund - to account for customer water service charges that are used to finance water operating expenses. Sewer Fund - to account for customer sewer service charges that are used to finance sewer operating expenses. CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS COMBINING BALANCE SHEET December 31, 2000 With Comparative Totals For December 31, 1999 Statement 15 Assets Totals Water Sewer 2000 1999 Current assets: Cash and cash equivalents $ 366,689 $ 911,941 $ 1,278,630 $ 804,086 Cash and investments with escrow agent 650,367 - 650,367 652,895 Accrued interest receivable 12,734 - 12,734 8,321 Accounts receivable 96,884 110,008 206,892 205,576 Special assessments receivable: Due from county 173 173 346 1,541 Prepaid items 3,663 3,008 6,671 4,750 Total current assets 1,130,510 1,025,130 2,155,640 1,677,169 Long term assets: Special assessments, long terra 298,990 298,990 309,865 Fixed assets: Buildings 48,690 48,690 48,690 Equipment 119,946 163,456 283,402 252,401 Water and sewer systems 14,137,319 15,938,234 30,075,553 28,842,286 Total fixed assets 14,305,955 16,101,690 30,407,645 29,143,377 Less: Allowance for depreciation (1,659,250) (2,017,890) (3,677,140) (3,067,757) Net fixed assets 12,646,705 14,083,800 26,730,505 26,075,620 Total assets $ 14,076,205 $ 15,108,930 $ 29,185,135 $ 28,062,654 Liabilities and Fund Equity Current liabilities: Accounts payable $ 75,205 $ 20,300 $ 95,505 $ 43,047 Salaries payable 4,199 4,199 8,398 12,583 Accrued interest payable 97,276 - 97,276 99,086 Due to other governmental units 1,217 1,217 3,609 Bonds payable - current portion 875,000 875,000 210,000 Total current liabilities 1,052,897 24,499 1,077,396 368,325 Long -term liabilities: Bonds payable - long term 3,465,000 - 3,465,000 4,340,000 Compensated absences - payable 14,919 14,919 29,838 12,217 Total liabilities 4,532,816 39,418 4,572,234 4,720,542 Fund equity: Contributed capital 9,137,401 13,980,160 23,117,561 22,389,099 Retained earnings 405,988 1,089,352 1,495,340 953,013 Total fund equity 9,543,389 15,069,512 24,612,901 23,342,112 Total liabilities and fund equity $ 14,076,205 $ 15,108,930 $ 29,185,135 $ 28,062,654 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS For The Year Ended December 31, 2000 With Comparative Totals For The Year Ended December 31, 1999 Statement 16 Totals Water Sewer 2000 1999 taw Operating revenue: Charges for services $ 613,575 $ 849,750 $ 1,463,325 $ 1,132,112 Hook -up charges 32,800 26,100 58,900 61,035 Water meter sales 71,242 71,242 68,172 Other operating revenue 1,205 1,205 7,572 Total operating revenue 718,822 875,850 1,594,672 1,268,891 Operating expenses: Personal services 128,532 133,752 262,284 238,667 Materials and supplies 252,662 4,525 257,187 137,852 Contractual services 41,952 82,595 124,547 98,557 Repair and maintenance 1,568 MCES sewer charges 396,800 396,800 368,937 Depreciation: - Purchased assets 89,963 14,615 104,578 102,777 Contributed assets 198,004 306,801 504,805 412,573 Utilities 63,630 22,627 86,257 71,367 Other 8,407 1,430 9,837 13,142 Total operating expenses 783,150 963,145 1,746,295 1,445,440 Net income (loss) from operations (64,328) (87,295) (151,623) (176,549) Other income (expense): Investment earnings 30,572 40,166 70,738 14,668 Special assessments 26,244 9,266 35,510 42,010 Bond interest (234,812) - (234,812) (228,000) _ Paying agent fees (2,800) (2,800) (2,800) Total other income (expense) (180,796) 49,432 (131,364) (174,122) Net income (loss) before operating transfers (245,124) (37,863) (282,987) (350,671) Operating transfers: Operating transfer from General Fund 49,366 Operating transfer from Capital Projects Fund 320,509 320,509 - Total operating transfers 320,509 320,509 49,366 Net income (loss) 75,385 (37,863) 37,522 (301,305) Credit arising from transfer of depreciation to contributed capital 198,004 306,801 504,805 412,573 Retained earnings - January 1 132,599 820,414 953,013 841,745 Retained earnings - December 31 $ 405,988 $ 1,089,352 $ 1,495,340 $ 953,013 CITY OF LINO LAKES, MINNESOTA ENTERPRISE FUNDS COMBINING STATEMENT OF CASH FLOWS For The Year Ended December 31, 2000 With Comparative Totals For The Year Ended December 31, 1999 Statement 17 Totals Water Sewer 2000 1999 Cash flows from operating activities: Operating income $ (64,328) $ (87,295) $ (151,623) $ (176,549) Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation 287,967 321,416 609,383 515,350 Change in assets and liabilities: Decrease (increase) in receivables 14,983 (8,642) 6,341 42,116 Decrease (increase) in prepaid items (2,225) 304 (1,921) 31,079 Increase (decrease) in payables 35,360 26,332 61,692 29,498 Net cash flows from operating activities 271,757 252,115 523,872 441,494 Cash flows from noncapital financing activities: Operating transfer from General Fund - 49,366 Operating transfer from Capital Project Funds 320,509 320,509 - Net cash flows from noncapital financing activities 320,509 320,509 49,366 Cash flows from capital and related financing activities: Principal paid on revenue bonds (210,000) (210,000) (205,000) Proceeds from issuance of refunding bonds 680,000 Investment with escrow agent 2,528 - 2,528 (652,895) Collection of special assessments 26,244 9,266 35,510 42,010 Interest and paying agent fees on revenue bonds (237,612) - (237,612) (230,800) Acquisition of fixed assets (2,647) (28,354) (31,001) (43,423) Net cash tows from capital and related financing activities (421,487) (19,088) (440,575) (410,108) Cash flows from investing activities: Interest on investments 30,572 40,166 70,738 14,668 Net increase (decrease) in cash and cash equivalents 201,351 273,193 474,544 95,420 Cash and cash equivalents - January 1 165,338 638,748 804,086 708,666 Cash and cash equivalents - December 31 $ 366,689 $ 911,941 $ 1,278,630 $ 804,086 - Water lines in the amount of $574,762 were contributed to the Water Fund in 2000. - Sewer lines in the amount of $658,505 were contributed to the Sewer Fund in 2000. AGENCY FUNDS Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, other governments and/or other funds. The City maintained the following Agency Funds during the year: Contractor's Deposits - to account for pass - through costs relating to prospective developers. Pending Assessments Deposits - to account for prepayment of special assessments by developers prior to Council adoption. Investment Fund - to account for the pooling of investments of the City. CITY OF LINO LAKES, MINNESOTA AGENCY FUNDS COMBINING BALANCE SHEET December 31, 2000 (With Comparative Totals For December 31, 1999) Statement 18 Pending Contractors Assessment Investment Totals Deposits Deposits Fund 2000 1999 Assets Cash and investments $ 503,336 $ 24,920 $ - $ 528,256 $ 466,564 Accrued interest receivable - 126,030 126,030 127,024 Deposits receivable 10,520 10,520 10,520 Total assets $ 513,856 $ 24,920 $ 126,030 $ 664,806 $ 604,108 Liabilities Interfund payable $ $ - $ 124,567 $ 124,567 $ 126,482 Accounts payable 57,190 1,463 58,653 50,040 Deposits payable 456,666 24,920 481,586 427,586 Total liabilities $ 513,856 $ 24,920 $ 126,030 $ 664,806 $ 604,108 70 CITY OF LINO LAKES, MINNESOTA AGENCY FUNDS COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES For The Year Ended December 31, 2000 Statement 19 Balance Balance January 1, December 31, 2000 Additions Deletions 2000 !' Contractors deposits: Assets Cash and investments $ 441,644 $ 777,606 $ 715,914 $ 503,336 Deposits receivable 10,520 10,520 Total assets $ 452,164 $ 777,606 $ 715,914 $ 513,856 Liabilities Accounts payable $ 49,498 $ 417,857 $ 410,165 $ 57,190 Deposits payable 402,666 812,460 758,460 456,666 Total Liabilities $ 452,164 $ 1,230,317 $ 1,168,625 $ 513,856 Pending Assessment Deposits: Assets Cash and investments Liabilities Deposits payable Investment Fund: Assets Accrued interest receivable $ 24,920 $ 365,641 $ 365,641 $ 24,920 $ 24,920 $ 365,641 $ 365,641 $ 24,920 127,024 $ 126,030 $ 127,024 $ 126,030 Liabilities Interfund payable $ 126,482 $ 124,567 $ 126,482 $ 124,567 Accounts payable 542 1,463 542 1,463 Total Liabilities $ 127,024 $ 126,030 $ 127,024 $ 126,030 Totals -All Trust and Agency Funds: Assets Cash and investments $ 466,564 $ 1,143,247 $ 1,081,555 $ 528,256 Accrued interest receivable 127,024 994 126,030 Deposits receivable 10,520 10,520 Total assets $ 604,108 $ 1,143,247 $ 1,082,549 $ 664,806 Liabilities Interfund payable $ 127,024 $ $ 2,457 $ 124,567 Accounts payable 49,498 419,320 410,165 58,653 Deposits payable 427,586 1,178,101 1,124,101 481,586 Total liabilities $ 604,108 $ 1,597,421 $ 1,536,723 $ 664,806 71 GENERAL FIXED ASSETS ACCOUNT GROUP The City maintains a separate account group for the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. CITY OF LINO LAKES, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS - BY SOURCE For the Year Ended December 31, 2000 Statement 20 Balance Balance January 1, December 31, 2000 Additions Deletions 2000 Land and improvements $ 2,208,755 $ 832,082 $ - $ 3,040,837 Buildings 6,418,767 5,133 6,423,900 Office equipment and furniture 789,751 159,534 8,047 941,238 Vehicles 1,019,332 113,420 52,307 1,080,445 Machinery and Shop Equipment 549,976 138,320 112,456 575,840 Other 704,037 14,333 718,370 Totals $ 11,690,618 $ 1,262,822 $ 172,810 $ 12,780,630 Investment in General Fixed Assets from: General Fund $ 1,005,117 Special Revenue Funds 3,585 Capital Project Funds 9,698,145 Grants 45,252 Donations 69,746 Debt Service Funds 61,400 Assets acquired before January 1, 1992 1,897,385 Total investment in General Fixed Assets $ 12,780,630 72 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY As of December 31, 2000 Mow Statement 21 General government: Administration /finance Elections Economic development Engineering /planning Government buildings Senior center Total general government OWED Public safety: Police Office Machinery Land Equipment and and and Shop Other Improvements Buildings Furniture Vehicles Equipment Improvements Total $ $ 284,431 985,155 1,269,586 6,410,942 6,410,942 $ 97,870 $ $ 48,805 8,825 19,201 13,107 32,330 459,675 8,628 636,910 51,531 144,502 $ $ 97,870 48,805 312,457 45,437 6,809 21,879 7,884,460 8,628 6,809 21,879 8,397,657 386,349 3,000 107,724 641,575 Public works: Streets 12,958 4,629 511,609 283,450 812,646 Shop - 21,202 35,528 56,730 Surface water management 472,651 71,241 543,892 Total public works 472,651 12,958 25,831 511,609 390,219 1,413,268 Parks, recreation and forestry: Parks, recreation and forestry Total parks, recreation and forestry 1,298,600 1,298,600 133,995 130,956 175,812 588,767 2,328,130 133,995 130,956 175,812 588,767 2,328,130 Totals $ 3,040,837 $ 6,423,900 $ 941,238 $ 1,080,445 $ 575,840 $ 718,370 $ 12,780,630 tame 73 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF CHANGES IN GENERAL FIXED ASSETS BY FUNCTION AND ACTIVITY For The Year Ended December 31, 2000 Statement 22 Balance Balance January 1, December 31, 2000 Additions Deletions 2000 General government: Administration/finance $ 77,298 $ 20,572 $ $ 97,870 Elections 21,531 27,275 48,806 Economic development 24,222 288,235 312,457 Engineering/planning 45,437 - - 45,437 Government buildings 7,788,418 104,088 8,047 7,884,459 Senior center 8,628 8,628 Total general government 7,965,534 440,170 8,047 8,397,657 Public safety. Police 574,024 Building inspections 6,459 Total public safety 580,483 93,899 93,899 26,348 641,575 6,459 32,807 641,575 Public works: Streets 821,048 80,133 88,536 812,645 Shop 36,540 20,190 56,730 Surface water management 16,662 527,231 543,893 Total public works 874,250 627,554 88,536 1,413,268 Parks, recreation and forestry. Parks, recreation and forestry 2,270,351 101,199 43,420 2,328,130 Total parks, recreation and forestry 2,270,351 101,199 43,420 2,328,130 Totals $ 11,690,618 $ 1,262,822 $ 172,810 $ 12,780,630 74 GENERAL LONG -TERM DEBT ACCOUNT GROUP The General Long -Term Debt Account Group is used to account for long -term debt of the City other than debt recorded in the Enterprise Funds. CITY OF LINO LAKES, MINNESOTA SCHEDULE OF GENERAL LONG -TERM DEBT December 31, 2000 Statement 23 December 31, 2000 1999 Amount Available And To Be Provided For The Retirement of General Long -Term Debt: Amount available in Debt Service Fund $ 4,072,885 $ 3,818,103 Amount to be provided - future tax levies /assessments /tax increment collections 17,537,953 18,853,001 Total available and to be provided $ 21,610,838 $ 22,671,104 General Long -Term Debt Payable: Bonds payable: General Obligation Bonds: 1997 Equipment Certificates 75,000 1998 Equipment Certificates 96,000 192,000 1999 Equipment Certificates 205,000 307,570 2000 Equipment Certificates 325,450 - Civic Complex Lease Revenue Bonds - 1998A 5,350,000 5,350,000 Public Project Revenue Refunding Bonds - I999C 935,000 980,000 Total general obligation bonds 6,91 1,450 6,904,570 Special assessment bonds: G. O. Improvement Bonds of 1992A 1,970,000 2,250,000 G. O. Improvement Bonds of 1996A 3,160,000 3,760,000 G. O. Improvement Bonds of 1998A 4,310,000 4,310,000 G. O. Improvement Bonds of 1998B 2,000,000 2,000,000 G. O. Improvement Bonds of 1999A 1,725,000 1,725,000 Total special assessment bonds 13,165,000 14,045,000 Total bonds payable 20,076,450 20,949,570 Contracts for deed payable 1,209,352 1,459,352 Compensated absences payable 325,036 262,182 Total general long -term debt $ 21,610,838 $ 22,671,104 75 SUPPLEMENTARY FINANCIAL INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2000 Interest Rates Dated Final Maturity Date General Obligation Bonds: 1997 Equipment Certificates 6.00% 2/1/97 12/31/00 1998 Equipment Certificates 6.00% 2/1/98 12/31/01 1999 Equipment Certificates 6.00% 2/1/99 12/31/02 2000 Equipment Certificates 6.00% 2/1/00 12/31/03 Civic Complex Lease Revenue Bonds - 1998A 4.20% -5.35% 8/1/98 2/1/19 Public Project Revenue Refunding Bonds - 1999C 4.75% -5.10% 9/1/99 2/1/10 Total General Obligation Bonds Special Assessment Bonds: G. O. Improvement Bonds of 1992A 4.00 % -6.70% 4/1/92 2/1/06 G. O. Improvement Bonds of 1996A 4.20 % -5.20% 10/1/96 2/1/07 G. O. Improvement Bonds of 1998A 4.50 % -4.90% 8/1/98 2/1/15 G. O. Improvement Bonds of 1998B 4.50% -4.90% 8/1/98 2/1/15 G. O. Improvement Refunding Bonds of 1999A 4.25 % -4.70% 9/1/99 2/1/06 Total General Improvement Bonds with special assessments pledged Revenue Bonds: G. O. Water Revenue Bonds of 1992B 4.50 % -6.80% 4/1/92 2/1/08 G. O. Water Revenue Bonds of 1996B 4.10% -5.70% 10/1/96 2/1/12 G. O. Water Revenue Refunding Bonds of 1999B 4.25 % -4.90% 9/1/99 2/1/08 Total Revenue Bonds Total - all bonds Contract for deed payable 8.00% 7/2/97 2/1/02 Contract for deed payable 8.00% 12/1/97 12/1/02 Contract for deed payable 6.00% 12/21/99 2/1/02 Total - Contracts for deed Total City indebtedness 76 Exhibit 1 Prior Years Principal Interest Original Payable 2000 Payable Due Due Issue Payments 1/1/00 Issued Payments 12/31/00 In 2001 In 2001 $ 225,000 $ 150,000 $ 75,000 $ $ 75,000 $ - $ - $ - 287,734 95,734 192,000 96,000 96,000 96,000 5,760 307,570 - 307,570 102,570 205,000 102,500 12,300 325,450 325,450 108,550 37,427 5,350,000 5,350,000 5,350,000 165,000 263,653 980,000 980,000 45,000 935,000 85,000 43,146 7,150,304 245,734 6,904,570 325,450 318,570 6,911,450 557,050 362,286 3,640,000 1,390,000 2,250,000 280,000 1,970,000 1,970,000 64,403 4,685,000 925,000 3,760,000 600,000 3,160,000 595,000 140,115 _ 4,310,000 4,310,000 - 4,310,000 290,000 191,700 2,000,000 2,000,000 2,000,000 115,000 90,115 1,725,000 1,725,000 1,725,000 - 77,481 16,360,000 2,315,000 14,045,000 880,000 13,165,000 2,970,000 563,814 1,060,000 275,000 785,000 - 65,000 720,000 720,000 23,855 _ 3,320,000 235,000 3,085,000 145,000 2,940,000 155,000 151,400 680,000 - 680,000 - 680,000 - 31,295 5,060,000 510,000 4,550,000 210,000 4,340,000 875,000 206,550 Mai 28,570,304 3,070,734 25,499,570 325,450 1,408,570 24,416,450 4,402,050 1,132,650 598,382 86,668 511,714 511,714 - 347,638 - 347,638 - 347,638 - 27,811 600,000 600,000 250,000 350,000 250,000 21,000 1,546,020 86,668 1,459,352 250,000 1,209,352 250,000 48,811 $30,116,324 $ 3,157,402 $26,958,922 $ 325,450 $ 1,658,570 $25,625,802 $ 4,652,050 $ 1,181,461 77 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2000 Exhibit 2 Public G.O. G. 0. Lease G. 0. Project Improvement Year of Equipment Equipment Equipment Improvement Revenue Improvement Refunding Refunding Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Bonds Bonds Collection of 1998 of 1999 of 2000 of 1992A of 1998A of 1998B of 1999C of 1999A Total 2000/2001 $ 101,760 $ 120,540 $ 153,276 $ 353,352 $ 330,947 $ 154,604 $ 417,356 $ 122,110 $ 1,753,945 _ 2001/2002 - 114,082 127,537 358,981 338,888 151,273 418,826 118,317 1,627,904 2002/2003 - 120,705 367,953 345,959 153,192 419,187 119,685 1,526,681 2003/2004 - 369,724 325,988 154,876 418,399 120,729 1,389,716 2004/2005 348,731 332,525 151,072 390,270 126,641 1,349,239 2005/2006 343,382 152,519 121,459 617,360 2006/2007 353,031 153,729 126,667 633,427 2007/2008 361,562 154,704 516,266 - 2008/2009 368,387 155,441 523,828 2009/2010 485,462 155,796 641,258 2010/2011 485,987 155,757 641,744 2011/2012 490,655 155,313 645,968 .- 2012/2013 489,001 154,537 643,538 2013/2014 491,258 158,719 649,977 2014/2015 492,413 492,413 2015/2016 497,716 497,716 _ 2016/2017 501,215 501,215 2017/2018 503,310 503,310 lamp $ 101,760 $ 234,622 $ 401,518 $ 1,798,741 $ 7,537,686 $ 2,161,532 $ 2,064,038 $ 855,608 $ 15,155,505 78 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 2000 G. O. Improvement G. 0. G. 0. G. 0. Equipment Equipment Equipment Refunding Improvement Improvement Improvement Certificates Certificates Certificates Bonds Bonds Bonds Bonds 1998 1999 2000 of 1992A of 1996A of 1998A of 1998B Bonds payable $ 96,000 $ 205,000 $ 325,450 $ 1,970,000 $ 3,160,000 $ 4,310,000 $ 2,000,000 Future interest payable 5,760 18,450 56,948 64,403 500,880 1,502,475 762,167 Totals $ 101,760 $ 223,450 $ 382,398 $ 2,034,403 $ 3,660,880 $ 5,812,475 $ 2,762,167 Payments to maturity. 2001 101,760 114,800 145,977 2,034,403 735,115 481,700 205,115 2002 - 108,650 121,464 - 702,565 468,650 195,053 2003 114,957 493,980 455,600 190,103 2004 - 469,460 442,550 190,040 2005 444,785 429,500 189,752 2006 419,965 416,450 184,352 2007 395,010 403,400 183,840 2008 385,462 183,103 2009 372,637 182,140 2010 359,670 180,882 2011 346,489 179,256 2012 333,094 177,248 2013 319,485 174,888 2014 305,805 172,230 2015 291,983 174,165 2016 - - 2017 2018 - 2019 - 2020 2021 - $ 101,760 $ 223,450 $ 382,398 $ 2,034,403 $ 3,660,880 $ 5,812,475 $ 2,762,167 79 Exhibit 3 G. 0. G. 0. G. 0. G. 0. Water Civic Public Improvement Water Water Revenue Complex Project _, Refunding Revenue Revenue Refunding Revenue Revenue Bonds Bonds Bonds Bonds Bonds Bonds of 1999A of 1992B of 1996B of 1999B of 1998A of 1999C Totals $ 1,725,000 $ 720,000 $ 2,940,000 $ 680,000 $ 5,350,000 $ 935,000 $ 24,416,450 279,489 23,855 1,151,575 150,510 3,087,305 234,105 7,837,922 $ 2,004,489 $ 743,855 $ 4,091,575 $ 830,510 $ 8,437,305 $ 1,169,105 $ 32,254,372 77,481 743,855 306,401 31,295 428,653 128,147 5,534,702 390,682 304,075 114,489 431,469 124,109 2,961,206 - 391,553 301,355 110,834 438,618 120,071 2,617,071 391,350 303,108 111,983 444,975 116,034 2,469,500 390,081 304,195 112,795 426,078 131,521 2,428,707 363,342 299,725 118,143 431,860 126,534 2,360,371 - 299,680 113,154 441,625 116,640 1,953,349 298,915 117,817 450,282 111,790 1,547,369 419,034 457,595 101,964 1,533,370 - 419,682 346,594 92,295 1,399,123 418,864 455,094 - 1,399,703 416,541 455,068 1,381,951 - 459,002 953,375 456,790 934,825 458,415 924,563 458,990 458,990 - 463,181 463,181 465,845 465,845 467,171 467,171 $ 2,004,489 $ 743,855 $ 4,091,575 $ 830,510 $ 8,437,305 $ 1,169,105 $ 32,254,372 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 2000 Exhibit 4 Coverage Amount General Liability. Bodily Injury/Property Damage $ 1,000,000 Personal Injury/Police Professional Liability 1,000,000 Employee Benefit Liability 1,000,000 Fire Legal Liability 50,000 Medical Expense Occurrence Limit 1,000 Medical Expense Aggregate 10,000 Property Damage ($500 Deductible) Property. Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 17,438,172 Faithful Performance Blanket Bond 500,000 Storage Tank Liability 100,000 Rented/Leased Equipment ($500 Deductible) 200,000 Public Official and Employee Liability ($500 Deductible each occurrence) 1,000,000 Automotive: Bodily injury and property damage 1,000,000 Comprehensive and Collision Actual Cash Value Uninsured motorists 1,000,000 Workmen's compensation Statutory Umbrella Liability 1,000,000 Crime - Theft Disappearance and Destruction ($500 Deductible) 50,000 — CITY OF LINO LAKES, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5 Tax Capacity Tax Capacity Values Values — 1999/2000 1998/1999 Taxable valuations: Total $ 11,398,762 $ 10,043,022 — Fiscal disparities: Distribution 1,551,086 1,382,028 Contribution (549,358) (464,039) Less: Captured Tax Increment Value (804,752) (646,438) $ 11,595,738 $ 10,314,573 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes Levied: Revenue 3,307,877 28.406 2,926,261 28.503 Bond and Interest 879,649 7.554 773,657 7.536 Totals Certified levy amount is after HACA reduction IMMIE 82 $ 4,187,526 35.960 $ 3,699,918 36.039 III. STATISTICAL SECTION CITY OF LINO LAKES, MINNESOTA GENERAL FUND EXPENDITURES BY FUNCTION Last Ten Fiscal Years (Unaudited) Table 1 Fiscal Total General Public Public Parks and Other Year Expenditures Government Safety Works Recreation Functions 1991 $ 2,268,639 $ 667,448 $ 845,420 $ 499,737 $ 256,034 $ 1992 2,552,835 807,564 910,147 505,096 330,028 1993 2,829,202 911,230 1,025,157 565,019 327,796 1994 3,169,862 1,082,796 1,127,883 554,533 404,650 1995 3,557,038 1,173,047 1,265,064 700,873 418,054 1996 3,966,738 1,289,751 1,446,985 694,455 535,547 1997 4,400,087 1,366,602 1,751,226 697,934 439,263 145,062 1998 5,328,796 1,560,268 1,778,898 673,156 722,728 593,746 1999 5,237,554 1,771,069 1,958,169 628,070 647,163 233,083 2000 5,513,148 1,770,528 2,158,346 786,420 655,863 141,991 CITY OF LINO LAKES, MINNESOTA GENERAL FUND REVENUES 13Y SOURCE Last Ten Fiscal Years - (Unaudited) Mos Table 2 Fiscal Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Total General Fund Revenue $ 2,421,534 2,705,794 3,177,662 3,295,398 3,772,335 4,627,532 4,736,496 5,722,363 5,343,453 5,613,395 General Property Taxes Levied Licenses and Permits Inter - Govemmental Revenues Charges Fines for and Other Services Forfeits Revenue $ 1,179,087 $ 332,392 $ 483,015 $ 195,190 $ 86,603 $ 145,247 493,977 607,831 210,129 79,643 107,216 565,684 673,944 239,562 83,019 195,084 383,388 677,337 353,026 72,454 211,651 544,267 738,652 241,393 93,861 212,747 788,480 816,794 308,262 86,158 300,790 566,561 881,459 291,090 99,390 239,511 726,599 1,380,063 347,485 102,489 260,839 823,719 940,053 278,510 87,434 251,073 884,746 702,606 272,145 124,458 323,383 1,206,998 1,420,369 1,597,542 1,941,415 2,327,048 2,658,485 2,904,888 2,962,664 3,306,057 CITY OF LINO LAKES, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Table 3 Percent of Percent of Total Tax Delinquent Total Current Percentage Delinquent Total Collections Outstanding Taxes to Fiscal Tax Tax of Levy Tax Tax To Tax Delinquent Tax Year Levy Collections Collected Collections Collections Levy Taxes Levy 1991 $ 1,717,474 $ 1,674,178 97.48% $ 24,342 $ 1,698,520 98.90% $ 59,664 3.47% 1992 1,865,188 1,805,972 96.83% 24,395 1,830,367 98.13% 76,791 4.12% 1993 2,073,987 2,057,602 99.21% 50,099 2,107,701 101.63% 29,534 1.42% 1994 2,268,950 2,243,045 98.86% 15,014 2,258,059 99.52% 27,804 1.23% 1995 2,634,350 2,613,719 99.22% 21,206 2,634,925 100.02% 22,368 0.85% 1996 3,040,000 3,011,917 99.08% 15,641 3,027,558 99.59% 22,489 0.74% 1997 3,349,400 3,316,426 99.02% 23,962 3,340,388 99.73% 32,598 0.97% 1998 3,589,617 3,564,611 99.30% 30,186 3,594,797 100.14% 29,774 0.83% 1999 4,116,312 4,085,625 99.25% 23,876 4,109,501 99.83% 23,199 0.56% 2000 4,571,888 4,534,998 99.19% 19,452 4,554,450 99.62% 46,344 1.01% Note: Does not include tax increment levies and collections. Note: Current tax collections include State levy related credits (HACA). 85 - CITY OF LINO LAKES, MINNESOTA SPECIAL ASSESSMENT LEVIES AND COLLECTIONS Last Ten Fiscal Years (Unaudited) Table 4 % of Current % of Total Current Current Collections Delinquent Collections Total • Fiscal Assmts. Assmts. to Assmts. Assessments Total to Current Outstanding Year Due Collected Due Collected Collected Assmts. Due Del. Assmts. ▪ 1991 $ 351,941 $ 293,452 83.38% $ 65,396 $ 358,848 101.96% $ 126,088 1992 379,521 306,443 80.74% 82,664 389,107 102.53% 118,690 1993 632,067 580,678 91.87% 39,313 619,991 98.09% 43,036 1994 387,200 355,543 91.82% 32,743 388,286 100.28% 36,497 1995 394,770 353,424 89.53% 26,051 379,475 96.13% 10,221 1996 366,146 355,609 97.12% 26,831 382,440 104.45% 21,040 1997 593,957 589,158 99.19% 20,153 609,311 102.59% 5,692 ▪ 1998 664,912 657,041 98.82% 3,561 660,602 99.35% 12,019 1999 520,982 512,433 98.36% 8,429 520,862 99.98% 11,947 2000 503,922 434,857 86.29% 9,078 443,935 88.10% 7,919 CITY OF LINO LAKES, MINNESOTA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years (Unaudited) Table 5 Percent of Debt Service Interest Total Total Expenditures Fiscal and Debt General Fund to General Year Principal Other Service (1) Expenditures (2) Expenditures 1991 $ 127,500 $ 108,872 $ 236,372 $ 2,268,639 10.42% 1992 172,500 114,821 287,321 2,552,835 11.25% 1993 177,500 108,276 285,776 2,829,202 10.10% 1994 282,500 96,268 378,768 3,169,862 11.95% 1995 228,500 96,135 324,635 3,557,038 9.12% 1996 188,000 100,248 288,248 3,966,738 7.27% 1997 188,000 106,785 294,785 4,400,087 6.70% 1998 190,000 112,201 302,201 5,328,796 5.67% 1999 295,734 387,500 683,234 5,237,554 13.04% 2000 273,570 318,507 592,077 5,513,148 10.74% - (1) Excludes tax increment, special assessment, enterprise, EDA bonds and payments on refunded bonds. (2) Includes expenditures of General Fund only. Note: Amounts rounded to the nearest hundred. CITY OF LINO LAKES, MINNESOTA ASSESSED AND ESTIMATED ACTUAL VALUE AND NET BONDED DEBT PER CAPTIA Last Ten Fiscal Years (Unaudited) Taxes Real Personal Payable Property Property Total Fiscal Disparities 1991 $ 4,250,314 $ 283,565 $ 4,533,879 $ 1,006,228 1992 4,359,156 289,520 4,648,676 1,083,066 1993 4,557,819 309,993 4,867,812 954,529 1994 5,146,854 360,097 5,506,951 970,411 1995 6,204,237 392,508 6,596,745 879,810 1996 7,390,566 435,045 7,825,611 952,790 1997 8,344,972 462,282 8,807,254 1,003,376 1998 9,244,905 434,234 9,679,139 1,036,542 1999 9,649,657 393,365 10,043,022 917,989 2000 11,003,125 395,637 11,398,762 1,001,728 Source: Anoka County Department of Property Records and Taxation. Table 6 Tax Increment Assessor's Estimated Ratio of Total Net Taxable Market Value of Assessed to Value Taxable Property Actual Value $ (215,224) $ 5,324,883 $ 264,013,200 2.02% (245,834) 5,485,908 290,466,200 1.89% (244,419) 5,577,922 320,714,400 1.74% (256,841) 6,220,521 368,267,100 1.69% _, (287,819) 7,188,736 435,100,000 1.65% (307,790) 8,470,611 501,825,800 1.69% (410,724) 9,399,906 552,696,200 1.70% MEMO Vmsw (555,542) 10,160,139 627,423,800 1.62% (646,438) 10,314,573 687,737,400 1.50% (804,752) 11,595,738 775,398,200 1.50% 89 CITY OF LINO LAKES, MINNESOTA PROPERTY TAX RATES (3) - DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years (Unaudited) Table 7 Tax Rates (Per $100 of Tax Capacity) Year Taxes Payable City School (1) County Other (2) Total 1991 26.564 68.717 31.400 5.133 131.814 1992 26.822 67.857 32.990 5.306 132.975 1993 29.386 60.589 32.779 6.510 129.264 1994 29.661 62.537 32.680 6.260 131.138 1995 30.772 64.308 32.765 6.977 134.822 1996 31.015 63.103 31.036 5.647 130.801 1997 31.167 66.000 30.542 5.197 132.906 1998 30.437 59.004 30.618 6.342 126.401 1999 36.039 64.802 32.265 6.830 139.936 2000 35.961 58.230 30.861 7.635 132.687 (1) The majority of Lino Lakes is served by School District 12. (2) Other includes: Metropolitan Council, Mosquito Control, Metropolitan Transit, Rice Creek Watershed District and Forest Lake Hospital. (3) The State of Minnesota changed the method of calculating property taxes effective for taxes payable in 1991. Years 1991 through 1998 retlect tax capacity values based on a different formula than in previous years. Source: Anoka County Department of Property Records and Taxation. Inem CITY OF LINO LAKES, MINNESOTA RATIO OF NET BONDED DEBT TO ASSESSED VALUE AND NET BONDED DEBT PER CAPITA Last Ten Fiscal Years (Unaudited) Table 8 Ratio of Less Net Bonded Net Taxable Gross Cash and Debt to Net — Value of Bonded Investments Net Assessed Bonded Debt Year Population (1) Property Debt (2) on Hand Bonded Debt Value Per Capita 1991 9,273 $ 5,324,883 $ 1,591,000 $ 105,537 $ 1,485,463 27.90% 160.19 1992 10,056 5,485,908 1,553,500 121,842 1,431,658 26.10% 142.37 1993 11,193 5,577,922 1,526,000 222,111 1,303,889 23.38% 116.49 1994 12,266 6,220,521 1,393,500 142,173 1,251,327 20.12% 102.02 1995 13,097 7,188,736 1,341,000 135,440 1,205,560 16.77% 92.05 1996 13,756 8,470,611 1,378,000 194,807 1,183,193 13.97% 86.01 — 1997 14,560 9,399,906 1,415,000 111,834 1,303,166 13.86% 89.50 1998 15,053 10,160,139 6,862,734 721,623 6,141,111 60.44% 407.97 1999 15,760 10,314,573 6,904,570 666,137 6,238,433 60.48% 395.84 — 2000 16,791 11,595,738 6,911,450 1,271,904 5,639,546 48.63% 335.87 (1) Population estimates provided from Metropolitan Council except for 1990 which reflects the federal census. (2) Amount excludes tax increment, special assessment, enterprise and EDA bonds. CITY OF LINO LAKES, MINNESOTA COMPUTATION OF DIRECT AND OVERLAPPING DEBT INCLUDING DEBT RATIOS December 31, 2000 (Unaudited) Table 9 Bonded G.O. Percentage Gross Bonded Debt Applicable City Share Overlapping Debt: Outstanding (1) in City(2) of Debt Anoka County $ 78,265,000 5.71% $ 4,468,932 School District 12 64,695,000 45.92% 29,707,944 School District 624 43,880,000 2.73% 1,197,924 School District 831 58,115,000 6.85% 3,980,878 SISD 916 20,060,000 2.75% 551,650 Metropolitan Council 114,310,645 0.58% 663,002 Total Overlapping Debt 379,325,645 40,570,330 Direct Debt: City of Lino Lakes 6,911,450 100.00% 6,911,450 Total Overlapping & Direct Debt $ 386,237,095 $ 47,481,780 Debt Ratios: Ratio of Debt per capita (16,791 population) - overlapping $2,416 Ratio of Debt per capita (16,791 population) - direct 5412 Ratio of Debt per capita (16,791 population) - total $2,828 Ratio of Debt to estimated market valuation of 5775,398,200 6.12% (1) Does not include general obligation debt supported by utility revenues, tax or aid anticipation certificates, State -aid road or revenue debt. (2) Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment) of property subject to taxation in overlapping unit to valuation of property subject to taxation in City. - CITY OF LINO LAKES, MINNESOTA COMPUTATION OF LEGAL DEBT MARGIN December 31, 2000 - (Unaudited) Omsk Table 10 2000 1999 Market Value $ 775,398,200 $ 687,737,400 Debt Limit Percentage 2% 2% — Debt Limit 15,507,964 13,754,748 Total Bonded Debt 24,416,450 25,499,570 Less: Special Assessment Bonds (13,165,000) (14,045,000) Revenue Bonds - Enterprise Fund (4,340,000) (4,550,000) — Public Project Revenue Bonds (6,285,000) (6,330,000) Cash in related Debt Service Funds (29,726) Total Debt Applicable to Debt Limit $ 626,450 544,844 Legal Debt Margin $ 14,881,514 $ 13,209,904 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF REVENUE BOND COVERAGE WATER FUND Last Nine Years (3) (Unaudited) Table 11 Net Revenue Available Interest Fiscal Gross Operating for Debt and Year Revenues (1) Expenses (2) Service Principal Fiscal Charges Total Coverage 1992 $ 232,586 $ 142,923 $ 89,663 $ - $ 57,632 $ 57,632 1.56 1993 332,888 169,431 163,457 75,350 75,350 2.17 1994 394,245 149,764 244,481 25,000 66,080 91,080 2.68 1995 461,747 177,724 284,023 40,000 64,118 104,118 2.73 1996 466,310 210,778 255,532 50,000 170,881 220,881 1.16 1997 851,173 271,575 579,598 50,000 229,900 279,900 2.07 1998 598,005 237,866 360,139 140,000 225,182 365,182 0.99 1999 604,734 380,928 223,806 205,000 220,910 425,910 0.53 2000 1,039,331 495,183 544,148 210,000 237,612 447,612 1.22 (1) Total Water Fund revenues and transfers in. (2) Total Water Fund expenses exclusive of depreciation, interest on debt and fiscal charges. (3) Prior to 1992 the City's Water Fund had no debt. tims CITY OF LINO LAKES, MINNESOTA PRINCIPAL TAXPAYERS (Unaudited) Table 12 Ten of the City's Largest Taxpayers Percent of 2000 Net Tax City's Net Taxpayer Type of Business Capacity Tax Capacity Northern States Power Utility $ 213,973 1.88% Taylor Corp. Commercial/Industrial 157,535 1.38% Gargaro, Nicholas & Deborah Commercial/Industrial 117,167 1.03% Molin Concrete Products Commercial/Industrial 101,849 0.89% F & G, Inc. Commercial/Industrial 92,126 0.81% Northern Development LLC Commercial/Industrial 62,454 0.55% Anoka Electric Cooperative Utility 59,360 0.52% Minnegasco, Inc. Utility 58,772 0.51% Lino Lakes Business Center Commercial/Industrial 55,143 0.48% DJT Properties LLC Commercial /Industrial 50,921 0.45% Total Ten Largest Taxpayers $ 969,300 8.50% Source: Anoka County Department of Property Records and Taxation. CITY OF LINO LAKES, MINNESOTA PROPERTY VALUE, CONSTRUCTION PERMITS AND BANK DEPOSITS Last Ten Years (Unaudited) Table 13 Fiscal Property Number of Permit Bank Year Value (1) Building Permits Valuation Deposits (2) 1991 $ 264,013,200 396 $ 34,041,557 Not Available 1992 290,466,200 615 36,636,546 Not Available 1993 320,714,400 628 44,537,437 Not Available 1994 368,367,100 566 26,713,028 Not Available 1995 435,100,000 598 40,636,691 Not Available 1996 501,825,800 588 74,061,188 Not Available 1997 552,696,200 597 32,666,843 Not Available 1998 627,423,800 911 48,683,257 Not Available 1999 687,737,400 893 54,522.159 Not Available 2000 775,398,500 1,672 57,080..794 Not Available (1) Assessor's estimated market value of taxable property from Table 6. (2) Bank deposits are excluded due to the banks within the City being consolidated with banks outside the City. As a result, local deposits are unavailable. Source: City Inspection records. CITY OF LINO LAKES, MINNESOTA DEMOGRAPHIC STATISTICS Last Ten Years (Unaudited) Table 14 Fiscal School Number of Unemployment Year Population (2) Enrollment (1) Households (2) Rate (3) 1991 9,273 4,638 2,777 4.9% — 1992 10,056 4,931 2,974 4.8% 1993 11,193 5,219 3,313 4.8% — 1994 12,266 5,587 3,671 3.6% 1995 13,097 5,932 3,899 3.1% 1996 13,756 6,010 4,095 2.6% _ 1997 14,560 6,230 4,280 2.5% 1998 15,053 6,469 4,443 1.9% 1999 15,760 6,732 4,692 2.5% 2000 16,791 6,778 5,018 2.6% (1) Centennial School District 12 (2) Metropolitan Council except 2000 is Federal Census (3) Minnesota Department of Economic Security CITY OF LINO LAKES, MINNESOTA MISCELLANEOUS STATISTICS (Unaudited) Table 15 Date of Incorporation Date of Adoption of City Charter Form of Government Area of City (square miles) Miles of Streets: Trunk Highways Paved - County Paved - City Number of Street Lights Fire Protection: Centennial Fire District Total Number of Stations (within Lino Lakes) Total Number of Volunteers Police Protection: Number of Stations Number of sworn officers Recreation: Park Acreage Number of Parks & Playgrounds Trails 5/11/55 1/12/82 Charter 33 17.4 28.5 97.65 397 3 1 52 1 21 166 21 14 miles Municipal Water: Gallons Pumped 372,613,000 Number of Connections 2,922 Miles of watermain 39.98 Number of Fire Hydrants 526 Water Tower Capacity (gallons) 2 million Municipal Sewer: Number of Connections Miles of sewermain Employees: Full -time Part-time 3,104 49.78 62 5 Elections: Registered voters - last general election 10,125 Number of votes cast 8,073 Percent of registered voters voting 79% 98