HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2011COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2011
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
II. FINANCIAL SECTION
Independent Auditors' Report 9
Management's Discussion and Analysis 11
— Basic Financial Statements
Statement of Net Assets Statement 1 21
"" Statement of Activities Statement 2 22
Balance Sheet - Governmental Funds Statement 3 24
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets Statement 4 26
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds Statement 5 27
— Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance to the Statement
of Activities Statement 6 29
Statement of Net Assets - Proprietary Funds Statement 7 30
•• Statement of Revenues, Expenses and Changes in Net Assets -
Proprietary Funds Statement 8 31
Statement of Cash Flows - Proprietary Funds Statement 9 32
Statement of Net Assets - Fiduciary Funds — Agency Funds Statement 10 33
Notes to Financial Statements 34
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual Statement 11 59
Notes to Required Supplementary Information 65
Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 66
Combining Fund Financial Statements
—
Combining Balance Sheet – Nonmajor Governmental Funds Statement 13 67
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance – Nonmajor Governmental Funds Statement 14 73
Special Revenue Fund – Program Recreation:
Schedule of Revenues, Expenditures and Changes in Fund
— Balance – Budget and Actual Statement 15 79
Statement of Changes in Assets and Liabilities – Fiduciary Funds –
Agency Funds Statement 16 80
—
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 81
Schedule of Deferred Tax Levies Exhibit 2 83
— Debt Service Payments to Maturity - All Bonds Exhibit 3 85
Insurance in Force Exhibit 4 88
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Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 89
III. STATISTICAL SECTION
Net Assets by Component – Last Eight Fiscal Years Table 1 90
Changes in Net Assets - Last Eight Fiscal Years Table 2 91
Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 93
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years Table 4 95
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years Table 5 97
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Direct and Overlapping Property Tax Rates -
... Last Ten Fiscal Years Table 6 98
Principal Property Taxpayers Table 7 99
"" Property Tax Levies and Collections — Last Ten Fiscal Years Table 8 100
Ratios of Outstanding Debt by Type Table 9 102
Direct and Overlapping Governmental Activities Debt Table 10 104
Legal Debt Margin Information Table 11 105
Demographic and Economic Statistics Table 12 107
Principal Employers, Current Year and Nine Years Ago Table 13 108
Full -Time Equivalent Employees by Type Table 14 109
Operating Indicators by Function/Program Table 15 111
Capital Asset Statistics by Function/Program Table 16 113
I.
INTRODUCTORY
SECTION
�- CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2011
Vo im
Elected Officials
Term Expires
... Mayor:
Jeff Reinert December 31, 2013
Council Members:
Dale Stoesz December 31, 2015
Rob Rafferty December 31, 2013
Jeff O'Donnell December 31, 2013
Dave Roeser December 31, 2015
Appointed Personnel
City Administrator Jeff Karlson
Director of Finance Alan Rolek
Director of Public Safety John Swenson
Director of Community Development Michael Grochala
Director of Public Service Rick DeGardner
City of Lino Lakes Organizational Chart
Citizens
Honorable Mayor
and
City Council
Commissions
Cable
• Parks and Recreation
• Economic Development
▪ Planning and Zoning
Fire
Environmental
City Administrator
City Clerk
Engineering
Professional Consultants
Attorney
Fiscal
I ,
Public Services
Public Safety
Parks
Public Works
Recreation
Administration
Police
Emergency Management
Community Development
Human Resources
Administrative Services
2
Finance
Planning
Economic Development
Engineering
Environmental Services
Inspections
Accounting
Management Information Systems
Utility Billing
low
May 17, 2012
Honorable Mayor
Members of the City Council
• Citizens of the City of Lino Lakes, Minnesota
▪ Minnesota State law requires that cities over 2,500 population publish within six months of the close of each
fiscal year a complete set of financial statements presented in conformity with generally accepted accounting
principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed
certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue
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the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended
December 31, 2011.
This report consists of management's representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations, management
"" of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to
protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Lino Lakes' financial statements in conformity with GAAP. Because the cost of internal
• controls should not outweigh their benefits, the city's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
•- report is complete and reliable in all material respects.
The City of Lino Lakes' financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended December 31, 2011, are free of material misstatement.
The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in
Nom, the financial statements; assessing the accounting principles used and significant estimates made by management;
and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the
audit that there was a reasonable basis for rendering an unqualified opinion that the City's financial statements for
the fiscal year ended December 31, 2011, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
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GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is
designed to complement MD &A and should be read in conjunction with it. The City of Lino Lakes' MD &A can
be found immediately following the report of the independent auditors.
3
600 Town Center Parkway, Lino Lakes, Minnesota 55014 -1182
Phone: 651 - 982 -2400 • Fax: 651 - 982 -2499
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County of
Anoka. It covers an area of 33 square miles and has a population of approximately 20,300. The population has
more than doubled from the 1990 census figure of 8,807 and has grown by 21% since 2000. Within the City's
borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is
provided by I -35W and I -35E.
The City Charter, as amended, establishes a mayor - council form of government and grants the city council full
policy - making and legislative authority to the mayor and four council members. The city council is responsible,
among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a city
administrator. The city administrator has the responsibility of carrying out the policies and ordinances of the city
council, for overseeing the day -to -day operation of the city. The city council is elected at -large on a non - partisan
basis, with council members serving four -year terms and the mayor serving a two -year term. Elections are held
every two years with two council seats and the mayor being up for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public safety
(police and fire), public works (streets and fleet), parks and recreation, conservation of natural resources
(environmental and solid waste abatement), public improvements, providing and maintaining sanitary and storm
sewer, water infrastructure, and two enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are
required to submit appropriations requests to the city administrator for review and consolidation into a proposed
budget. The city administrator is responsible for submitting the proposed annual budget to the City Council in
August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by
resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond the
estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make
transfers of appropriations within a department, but transfers of appropriations between departments require
council approval. Budget -to- actual comparisons for the general fund and the recreation program fund, the only
funds for which an annual budget has been adopted, are provided in this report beginning on pages 57 and 78,
respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of three
industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the Clearwater
Creek Development Center on 35E, provided excellent opportunities for manufacturing and distribution
businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007 the Lino Lakes
Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive interchange, was developing
at a rapid pace. SuperTarget and Kohl's anchor the shopping center quadrant, while Apollo Business Park brought
approximately 1,000 new employees to the area. Land was purchased by Anoka County on a third quadrant for
future development of a regional library. Due to economic conditions, the County has pushed back construction of
the library to 2015.
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Factors Affecting Financial Condition (Continued)
In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast quadrant
of I -35W and Lake Drive. Called Legacy at Woods Edge, this mixed -use development is intended to include
diverse opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic
Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a 60 -unit workforce housing
project, 13,000 square feet of leasable commercial space, and an assisted living facility. The Civic Complex and
YMCA provide a civic and community focus as part of the vision for Town Center. A workforce family housing
and assisted living facility provide diversity in housing to underserved populations within the City.
In 2006, the City placed a major focus on reconstruction of the 35W /Lake Drive interchange and completion of
public improvements in Legacy at Woods Edge to accommodate planned development and completed the
improvements by 2008. However, it became evident at the end of 2007 that development was stalling. The
recession has had negative impacts on the Legacy development. Both the master developer and lender defaulted,
sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit. However, the solid
foundation that was built and strong interest by developers prior to the recession ensures that better economic
times will once again bring the interest in residential and commercial growth needed to complete the vision.
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Street, streetscape, water, sewer, and storm water improvements, as well as a small community park, have been
installed within the development area and assessed to the development. This $11.1 million improvement was
financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued
$4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to
finance its portion of the project cost. Once construction gains its footing again the City can assess the benefitting
properties. The City continues to look for ways to resurrect the project and strives to be prepared to market the
property when the economy recovers.
Building activity and development continued to be soft in 2011, reflecting the nationwide market. Building
permits for new homes in 2011 numbered 34, compared to 31 in 2010. This represents about 1/3 of the new home
permits issued in 2007 and is down by approximately 83% from 2005.
In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed to
service future growth on the 35E /County Road 14 interchange area. A major reconstruction of the interchange
completed a multi -year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W
in Lino Lakes. The City portion of the cost for this bridge reconstruction project is being financed through Anoka
County, with the City issuing an initial $4.26 million General Obligation Note to the County. Due to cost savings
in this project the Note was amended to $3.695 million in 2011.
With both major interstate interchanges complete, the City is preparing for development of several hundred acres
in the northeast quadrant of 35E/14. Interest in the commercial interchange has spurred planning for an extension
of Otter Lake Road North, which will leave the City well poised to accommodate significant future industrial,
commercial and residential development.
5
Factors Affecting Financial Condition (Continued)
Long -term financial planning. The city's current five -year financial plan, adopted in January, 2008, identifies
street and utility improvements totaling $23,287,990 over the period of 2008 through 2012. These improvements
are anticipated to be funded through a number of funding sources, including special assessments, municipal state
aid road funds, the area and unit trunk fund, the stormwater management fund and voter - approved tax levies. Also
included in the final year of the plan is a feasibility study for a new public works facility. Scheduled capital
equipment and office equipment needs and the financing for those needs are also included in the plan. The five -
year plan also includes funding projections for operations and operating impacts for the period of 2008 -2012. This
plan is in the process of being revised to reflect the anticipated activity through the year 2016.
Cash management policies and practices. The City's policy is to invest all available moneys at competitive
rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while
maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S.
government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the
investment policy annually.
The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either insured
by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened
economy, a historically low interest rate environment has persisted over the last few years and has had a dramatic
impact on the city's investment earnings. The average yield on investments for 2011 was 1.51 %. Investment
income includes positive or negative changes in the fair value of investments. Changes in fair value during the
current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize
such amounts, especially in the case of temporary changes in the fair value of investments the City intends to hold
to maturity.
Risk management. The City's general property, liability and worker's compensation coverage is provided
through the League of Minnesota Cities Trust (LMCIT).
At the beginning of the insurance year, the city deposits with LMCIT 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. LMCIT's reserves and rates are reviewed annually by an
actuary to assure that the program remains financially strong.
6
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of
-- Achievement for excellence in financial reporting to cities that meet certain criteria. The City of Lino Lakes
received this award for its comprehensive annual financial report for the year ended December 31, 2010. This
marks the eleventh consecutive year the City has received this prestigious award. A governmental unit must
— publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which
conform to program requirements. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
-
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2011 report to
GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our
current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of the
Finance Department, auditors and other city staff. A special thank you goes to city accountant, Paula Schloer, for
her efforts in assembling and reviewing information presented in this report. I also want to express my
appreciation to the Mayor and City Council for their support for maintaining the highest standard of
professionalism in the management of the financial operation of the City.
Respectfully submitted,
Alan J. Rolek
Director of Finance
7
Certificate of
Achievement
for Excellence
in Financial
Reporting
Printed to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2010
A Certificate of Achievement for F' cdlesoc 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.
8
IL
FINANCIAL
SECTION
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Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
6,
CliftonLarsonAllen
INDEPENDENT AUDITORS' REPORT
CliftonLarsonAllen LLP
www.diftonlarsonallen.com
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, each major fund, and the aggregate remaining fund information of the City of Lino
Lakes, Minnesota, as of and for the year ended December 31, 2011, which collectively comprise the
— City's basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City's management. Our responsibility is to express opinions on these financial
statements based on our audit.
We conducted our audit in accordance with U.S. 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 financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
— and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
— In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Lino Lakes, as of December 31,
— 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the
year then ended in conformity with accounting principles generally accepted in the United States of
America.
As discussed in Note 1Q to the basic financial statements, an error resulting in the understatement of
capital assets due to not recording previously donated land as of December 31, 2010, was discovered
by management. The financial statements include a restatement of beginning net assets to correct this
error.
As discussed in the notes to the basic financial statements, the City adopted the provisions of
Government Accounting Standards Board Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, as of and for the year ended December 31, 2011. The statement
results in the City reporting nonspendable, restricted, committed, assigned, and unassigned fund
— balances in its governmental funds.
9
Honorable Mayor and
Members of the City Council
City of Lino Lakes
In accordance with Government Auditing Standards, we have also issued our report dated May 17,
2012 on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters.
The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of
our audit.
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and schedule of funding
progress as listed on the table of contents be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the Governmental
Accounting Standards Board, who considers it to be an essential part of financial reporting for placing
the basic financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The other supplementary information and
combining fund financial statements, as listed on the table of contents, are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The other
supplementary information and combining fund financial statements are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The introductory and statistical sections are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information has not been subjected to the auditing procedures applied in the audit of
the basic financial statements, and accordingly, we do not express an opinion or provide any assurance
on it.
Minneapolis, Minnesota
May 17, 2012
10
CliftonLarsonAllen LLP
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial
statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the
— fiscal year ended December 31, 2011. We encourage readers to consider the information presented here
in conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages 3 -7 of this report.
— FINANCIAL HIGHLIGHTS
• The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year
by $90,080,344 (net assets). Of this amount $24,664,572 (unrestricted net assets) may be used to
- meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
• The City's total net assets increased by $1,507,330 primarily due to reductions in community
— development activities, staffing levels, and interest payments on long -term debt. In addition, a prior
period adjustment for unrecorded park land increased net assets by $466,800.
• As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
— combined ending fund balance of $16,933,540, a decrease of $4,232,807 in comparison with the
prior year primarily due to expenditures for the construction of the interchange at I- 35E /CSAH14.
Approximately 13% of this total amount, or $2,285,605, is available for spending at the City's
discretion (unassigned fund balance).
• At the end of the current fiscal year, unassigned fund balance for the general fund was $5,440,101, or
64% of total general fund expenditures.
• The City's total bonded debt decreased by $2,300,000 (11.4 %) during the current fiscal period. In
addition, a note the City issued in 2009 to Anoka County for $4,260,000 for the City's portion
135E /County Road 14 interchange project cost was reduced to $3,695,000 due to project cost
savings. Principal in the amount of $2,420,000 was retired during the year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic
financial statements. The City of Lino Lakes' basic financial statements comprise three components:
1. Government -wide financial statements
2. Fund financial statements
3. Notes to the financial statements
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements The government -wide financial statements are designed to
provide readers with a broad overview of the City of Lino Lakes' finances, in a manner similar to private -
sector business.
The statement of net assets presents information on all of the City of Lino Lakes' assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or decreases in net
assets may serve as a useful indicator of whether the financial position of the City of Lino Lakes is
improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise
to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes and earned but unused compensated absences and OPEB liabilities).
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government -wide financial statements (Continued) Both of the government -wide financial statements
distinguish functions of the City of Lino Lakes that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City of Lino Lakes include general government, public safety, public
services, parks, recreation and forestry, conservation of natural resources and community development.
The business -type activities of the City of Lino Lakes include a water utility and sewer utility.
The government -wide financial statements can be found on pages 21 -23 of this report.
Fund financial statements A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements. All of the funds of the City of Lino Lakes can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds — Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near -term
financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental functions and governmental activities.
The City of Lino Lakes maintains thirty -seven individual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund,
Improvement Bonds of 2009A fund, I -35E Interchange fund and Area and Units Charge fund, all of which
are considered to be major funds. Data from the other thirty -two governmental funds are combined into a
single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation
special revenue funds. A budgetary comparison statement has been provided for these funds to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 24 through 29 of this report.
Proprietary funds — The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities.
The proprietary fund statements provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for
the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The
basic proprietary fund financial statements can be found on pages 30 through 32 of this report.
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CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
individuals, private organizations, or other governments.
Notes to the financial statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to
the financial statements can be found on pages 34 -58 of this report.
Other information — The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 67 -80 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. The City of Lino Lakes' assets exceeded liabilities by $90,080,344 at the close of the most
recent fiscal year, an increase of $1,507,330 from the previous year. This increase is primarily due to
reductions in community development activities, staffing levels, and interest payments on long -term debt.
'- In addition, a prior period adjustment for unrecorded park land increased net assets by $466,800.
By far the largest portion of the City of Lino Lakes' net assets (60 %) reflects its investment in capital
-- assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to
acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although the City of
Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
-- Condensed versions of the statements of net assets at December 31, 2011 and 2010 are as follows:
■.-
Current and Other Assets
Capital Assets
Total Assets
Noncurrent Liabilities Outstanding
Other Liabilities
Total Liabilities
Net Assets:
-- Invested in Capital Assets, Net
of Related Debt
Restricted
Unrestricted
Total Net Assets
Governmental Activities
2011 2010
$ 30,125,796 $ 31,085,069
42,067,496 41,950,227
Business -Type Activities
2011 2010
$ 11,292,527 $ 10,830,886
29,621,802 30,442,635
Total
2011
$ 41,418,323
71,689,298
2010
$ 41,915,955
72,392,862
72,193,292 73,035,296 40,914,329 41,273,521 113,107,621 114,308,817
21,845,856 24,336,418 450,334 835,278
685,320 969,751 45,767 61,156
22,531,176 25,306,169 496,101 896,434
24,600,103
11,598,803
13,463,210
22,562,217
8,428,025
16,738,885
29,216,866 29,648,461
11,201, 362 10,728,626
22,296,190 25,171,696
731,087 1,030,907
23,027,277 26,202,603
53,816,969
11,598,803
24,664,572
52,210,678
8,428,025
27,467,511
$ 49,662,116 $ 47,729,127 $ 40,418,228 $ 40,377,087 $ 90,080,344 $ 88,106,214
Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (13 %) are to be used
for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (27 %)
may be used to meet the government's ongoing obligations to citizens and creditors.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
categories of net assets, both for the government as a whole, as well as for its separate governmental
and business -type activities.
Governmental activities Governmental activities increased the City of Lino Lakes' net assets by
$1,466,189. Reductions in community development activities, staffing levels, and interest payments on
long -term debt were directly attributable to the increase in City's net assets. During the year, there was a
significant increase in capital grants and contributions which was due mainly to special assessments
relating to the 135E /CSAH 14 interchange project. Additionally, there was a significant increase in public
service expenditures which was caused mainly by the City's contribution towards the joint powers
agreement with Anoka County for the County's 135E /CSAH 14 interchange project. In addition, a prior
period adjustment for unrecorded park land increased net assets by $466,800.
Business -type activities Business -type activities increased the City of Lino Lakes' net assets by
$41,141. Investment earnings provided directly for this increase.
Condensed statements of revenues, expenses, and changes in net assets highlights are as follows for
the years ended December 31, 2011 and 2010:
REVENUES
Program Revenues:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues:
Property Taxes
Franchise Taxes
Other Taxes
Contributions Not Restricted to
Specific Programs
Unrestricted Investment Earnings
Gain on Disposal of Capital Assets
Total Revenues
EXPENSES
General Government
Public Safety
Public Service
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Interest on Long -Term Debt
Water
Sewer
Total Expenses
CHANGE IN NET ASSETS
BEFORE TRANSFERS
Transfers
CHANGE IN NET ASSETS
Net Assets - Beginning of Year
Prior Period Adjustment
Net Assets - Beginning of Year, As Restated
Governmental Activities
Business -Type Activities Total
2011 2010 2011
$ 1,420,465 $
593,798
7,347,613
8,513,559
149,118
106,128
4,072
251,250
37,579
2010 2011 2010
1,412,916 $ 2,584,292 $ 2,585,231 $
617,450 - -
1,388,984 1,462 8,709
8,568,236
150,924
45,023
4,389
225,677
18,423,582 12,413,599
1,990,137
4,019,101
8,110,979
1,218,472
139,544
617,747
927,535
1,987,415
3,971,261
3,968,063
1,124,907
197,571
1,105,254
1,064,172
17,023, 515 13,418, 643
126,215
104,770
4,004,757 $
593,798
7,349,075
8,513,559
149,118
106,128
4,072
377,465
37,579
2,711,969 2,698,710 21,135,551
966,643 1,045,901
1,638,063 1,466,847
2,604,706 2,512,748
1,990,137
4,019,101
8,110,979
1,218,472
139,544
617,747
927,535
966,643
1,638,063
19,628,221
3,998,147
617,450
1,397,693
8,568,236
150,924
45,023
4,389
330,447
15,112,309
1,987,415
3,971,261
3,968,063
1,124,907
197,571
1,105,254
1,064,172
1,045,901
1,466,847
15,931,391
1,400,067 (1,005,044) 107,263 185,962 1,507,330 (819,082)
66,122 (7,078) (66,122) 7,078 - -
1,466,189 (1,012,122) 41,141 193,040 1,507,330 (819,082)
47,729,127 48,741,249 40,377,087 40,184,047 88,106,214 88,925,296
466,800 - - - 466,800 -
48,195,927 48,741,249 40,377,087 40,184,047 88,573,014 88,925,296
NET ASSETS - END OF YEAR $ 49,662,116 $ 47,729,127 $ 40,418,228 $ 40,377,087 $ 90,080,344 $ 88,106,214
14
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the government activities' direct program revenues
with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or
general state aid.
Expenses and Program Revenues — Governmental Activities
$9,000,000
$8,000,000
7,000,000
$6,000,000
,000,000
,000,000
$3,000,000
$2,000,000
$1,000,000
cr Q`r`G�
6
VJ {
SC 5"
gqG o` i`cO
C^°"‘ c,`0• 0 °. � t '04
c ads
Revenues by Source — Governmental Activities
Unrestricted grants and
contributions
0%
Franchise taxes
1%
Property to xe s
46%
Unrestricted investment
earnings
1% Other
1%
■ Expenses
■ Revenues
Charges for services
8%
Operating grants and
contributions
3%
Cap kal grants and
contributions
40%
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the business -type activities' direct program
revenues with their expenditures. Excess revenues are retained within each fund until such time that
capital replacement is needed.
Expenses and Program Revenues — Business -type Activities
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200, 000
$-
Water
Revenues by Source — Business -type Activities
Operating grants and
contributions
0%
Capital grants and
contributions
0%
Sewer
Other
4%
Charges for services
95%
16
O Expenses
■ Revenues
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds — The focus of the City of Lino Lakes' governmental funds is to provide information
on near -term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Lino Lakes' financing requirements. GASB Statement 54, implemented for 2011,
divides fund balances into five categories: Nonspendable, Restricted, Committed, Assigned and
Unassigned. Definitions of these categories can be found in Note 1.0 in the Notes to the Financial
Statements. In particular, unassigned fund balance may serve as a useful measure of a government's net
resources available for unrestricted spending at the end of the fiscal year. Approximately 13% of the total
fund balance amount, or $2,285,605, constitutes unassigned fund balance, which is available for
spending at the government's discretion. The remainder of fund balance is not available for new
spending because it has already been committed for other purposes. As of the end of the current fiscal
year, the City of Lino Lakes' governmental funds reported combined ending fund balances of
$16,933,540, a decrease of $4,232,807, or 20 %, from the previous year. This reduction is primarily due to
expenditures for the construction of the interchange at I- 35E /CSAH14.
The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal
year, unassigned fund balance of the general fund stood at $5,440,101, while the total fund balance was
$5,605,180. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund
balance and total fund balance to total fund expenditures. Unassigned fund balance represents 64% of
total general fund expenditures, while total fund balance represents 66% of that same amount.
The fund balance of the City of Lino Lakes' general fund decreased by $21,625 during the current fiscal
year, while the city budget anticipated the use of up to $300,000 of the general fund balance. Overall, the
continued soft real estate market again resulted in reduced building activities this year which decreased
permit revenue. Even as signs of economic recovery were being seen, the remaining effects of the
recession also had an impact on property tax delinquencies. In addition, reduced expenditures, primarily
for personal services through vacant positions, and contractual services offset the reduced revenues.
— Overall, the general fund's revenues were within approximately 1.4% of the amended budget, while
expenditures and transfers were 4.3% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund deficit of ($1,628,613). This fund is related to
the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and
delinquency in the collection of special assessments dedicated to this issue caused a significant
decrease in this fund. An interfund loan from the Capital Improvements fund has aided in the payment of
-- debt service for this issue.
The Improvement Note 2009A fund, to service the debt issued to Anoka County as the City's financial
commitment for the I -35E interchange project, ended the year with a fund balance of $491. This note was
reduced during the year from the original $4,260,000 to $3,695,000 to reflect cost savings during the
— contruction of this project.
-- The 135E Interchange fund has a fund balance deficit at year -end of ($6,842), reduced significantly due
to the construction activities.
The area and unit charge fund has a total fund balance of $3,828,636, of which $578,641 is
nonspendable due to advances to other funds, and $3,249,995 is assigned for financing capital
improvements. The fund balance during the current year increased by $249,726, due in large part to the
increased special assessment collections in 2011.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED)
Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found
in the government -wide financial statements, but in more detail.
The water fund has total net assets at year -end of $17,857,797, of which $3,875,049 are unrestricted.
The increase in net assets of $135,114 was primarily due to operating income and investment earnings.
Total net assets in the sewer fund at the end of 2011 were $22,560,431, of which $7,326,313 was
unrestricted. Net assets decreased $93,973 during the current year resulting primarily from operations,
most notably increases in MCES sewage treatment costs.
The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer Rates
were unchanged in 2011. A review of utility rates is scheduled for 2012.
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budget was amended several times during the year reflecting donations and grants received
primarily for police personnel and equipment, a reduction in expected state aid, and reallocating
resources within the original budget.
Revenues were $134,212 under budget for the year. This is due primarily to higher delingencies in
property tax collections. MSA maintenance payments came in over budget due to adjusted distribution
formulas which increased the City's allocation. Investment earnings were slightly higher than the
amended budget as a result of unrealized gains from increased market value of investments held. Lower
building activity due to the recessed economy and, therefore, fewer new construction building permits
being issued was also a factor. State intergovernmental revenues for police PERA aid were below
budgeted levels for the year due to position vacancies. Local government grants were slightly over
budget due to slightly higher grant funds allocated by the granting entity. Public safety charges for service
were slightly over budget due to higher than expected traffic control contracts. Fines and forfeitures were
over budgeted amounts due to the success of the City's Achieving Compliance through Education (ACE)
program.
Expenditures came in under the revenues by $720,339 due mainly to lower than expected personal
services costs from vacant positions and reduced benefit costs. Energy costs for fuels and electricity
were higher than budgeted amounts, and supplies costs were generally lower than anticipated. There
were also net transfers from the general fund of $741,964. This resulted in a net fund balance decrease
of $21,625 for the fiscal year.
18
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business-
' type activities as of December 31, 2011, is $71,689,298 (net of accumulated depreciation). This
investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery
and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino
Lakes' investment in capital assets (net of accumulated depreciation) of approximately 1 %. Due to the
economic downturn, no new infrastructure projects were undertaken by the City, and therefore, the only
additions were from projects in progress. The decrease within the governmental activities is attributable to
the depreciation of constructed streets, underground infrastructure and vehicles. Within the business -type
activities decreases were also attributable to depreciation of existing assets of the water and sewer funds.
Land
Construction in Progress
Buildings
Office Equipment and Fumiture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Capital Assets, Net
Capital Assets at Year -End
(Net of Accumulated Depreciation)
Govemmental Activities Business -Type Activities
2011
$ 3,275,859
211,705
3,542,239
447,690
1,192,147
197,507
232,546
32,967,803
$ 42,067,496
2010
$ 2,809,059
3,728,690
360,674
1,223,361
232,749
271,875
33,323,819
$ 41,950,227
2011 2010
$ - $
204,551 182,348
29,417,251 30, 260 , 287
$ 29,621,802 $ 30,442,635
Total
2011
3,275,859
211,705
3,542,239
447,690
1,192,147
402,058
232,546
62,385,054
$ 71,689,298
2010
$ 2,809,059
3,728,690
360,674
1,223,361
415,097
271,875
63,584,106
$ 72,392,862
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 34 -58.
Long -term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $17,811,000. Of this amount $9,421,000 comprises tax supported debt, $7,985,000 is
special assessment debt and $405,000 is revenue supported debt. All outstanding debt carries the
general obligation backing for which the City is liable in the event of default by the property owners
subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In
•-. addition, the City carries a note to Anoka County for its share of the cost of the I -35E /County Road 14
Interchange project in the amount of $3,695,000.
G.O. Bonds
G.O. Special Assessment Bonds
G.O. Revenue Bonds
Total Outstanding Debt
Outstanding Debt at Year -End
Governmental Activities Business -Type Activities
2011 2010 2011 2010
$ 9,421,000 $ 10,141,000 $ - $ -
7,985,000 9,175,000 - -
- 405,000 795,000
$ 17,406,000 $ 19,316,000 $ 405,000 $ 795,000
Total
2011 2010
$ 9,421,000 $ 10,141,000
7,985,000 9,175,000
405,000 795,000
$ 17,811,000 $ 20,111,000
_, The City of Lino Lakes' total bonded debt decreased by $2,300,000 (11.4 %) during the current fiscal year.
The key factors for the change include the issuance of $120,000 in 2011A Equipment Certificates and
retirement of principal in the amount of $2,420,000 during the year.
Additional information on the City's long -term debt can be found in the notes to the financial statements
on pages 34 -58.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2011
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
• The unemployment rate for the City of Lino Lakes at year -end is 5.9 %, which is a significant decrease
from a rate of 7.1% a year ago. This is slightly higher than the state's average unemployment rate of
5.8% and significantly lower than the national average of 8.3% at the end of 2011.
• Residential growth in the City has slowed significantly over the last several years due to the general
residential real estate market downturn and current economic recession, with about one -third the
number of new home permits issued in 2011 as in 2007, and less than 83% of new home permits
issued in 2005. This is expected to level off in 2012, with hopes of the beginning of a recovery of the
housing market in 2013. This, as well as falling property values of the existing tax base, will have a
significant impact on the City's tax base for 2012 and beyond.
• Energy costs, while relatively stable in recent months, are expected to continue to increase over the
coming months. This will have an impact on the City's budget for the coming year and thereafter.
• Property tax reforms and State budget deficits have significantly impacted state aid payments the City
of Lino Lakes receives. Local government aid and market value homestead credit was reduced to
zero for 2003 and 2004 -2011. The City is exempted from local government aid and the state
legislature has discontinued the market value homestead credit in favor of a new market value
exclusion, which excludes a portion of residential homestead property value from property taxes.
• The Federal Reserve Board has continued the federal funds rates at historical lows, currently to
between 0.00% — 0.25 %, which is expected to result in sizable decreases in the City's investment
earnings.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of
those with an interest in the government's finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Director of
Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014.
20
BASIC FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2011
Governmental Business -type
Activities Activities
Statement 1
Total
ASSETS
Cash and investments $ 16,876,712 $ 10,224,890 $ 27,101,602
Accrued interest receivable 70,842 70,842
Accounts receivable 110,574 428,427 539,001
Due from other governments 150,962 1,728 152,690
- Internal Balances (559,110) 559,110 -
Taxes receivable 441,759 441,759
Special assessments receivable 12,323,665 31,023 12,354,688
,� Long -term notes receivable 225,000 - 225,000
Prepaid items 167,448 19,572 187,020
Inventory 27,433 27,433
Unamortized bond issue costs 198,063 344 198,407
Permanently restricted cash and investments 119,881 - 119,881
Capital assets:
Land 3,275,859 3,275,859
Construction in progress 211,705 211,705
Other capital assets, net of depreciation 38,579,932 29,621,802 68,201,734
Total assets 72,193,292 40,914,329 113,107,621
%..
LIABILITIES
Accounts payable 160,539 22,857 183,396
Salaries payable 183,876 11,399 195,275
Contracts and retainage payable 4,820 4,820
Accrued interest payable 334,899 6,104 341,003
Due to other governments 1,186 1,186
... Other accrued liabilities 5,407 5,407
Non - current liabilities:
Due within one year 2,554,343 432,646 2,986,989
Due in more than one year 19,291,513 17,688 19,309,201
_
Total liabilities 22,531,176 496,101 23,027,277
NET ASSETS
Invested in capital assets, net of related debt 24,600,103 29,216,866 53,816,969
Restricted for:
Debt service - expendable 11,478,922 11,478,922
Environmental improvements - nonexpendable 119,881 119,881
Unrestricted 13,463,210 11,201,362 24,664,572
Total net assets $ 49,662,116 $ 40,418,228 $ 90,080,344
The accompanying notes are an integral part of these basic financial statements.
21
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2011
Functions/Programs
Governmental activities:
General government
Public safety
Public services
Parks, recreation and forestry
Conservation of natural resources
Community development
Interest on long -term debt
Total governmental activities
Business -type activities:
Water
Sewer
Total business -type activities
Total
Expenses
$ 1,990,137
4,019,101
8,110,979
1,218,472
139,544
617,747
927,535
17,023,515
966,643
1,63 8,063
2,604,706
$ 19,628,221
Program Revenues
Charges for Operating Grants
Services and Contributions
$ 103,687 $
713,985
382,287
210,976
4,392
5,138
1,420,465
1,090,104
1,494,188
2,584,292
$ 4,004,757
10,341
334,384
198,292
2,075
48,706
593,798
$ 593,798
Capital
Grants and
Contributions
$ 89,937
7,257,676
7,347,613
731
731
1,462
$ 7,349,075
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise taxes
Other taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Gain on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning, as Previously Stated
Prior Period Adjustment
Net Assets - Beginning, as Restated
Net assets - ending
The accompanying notes are an integral part of these basic financial statements.
22
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business -type
Activities Activities
Total
(1,786,172) $ $ (1,786,172)
(2,970,732) (2,970,732)
(272,724) (272,724)
... (1,005,421) (1,005,421)
(86,446) (86,446)
(612,609) - (612,609)
(927,535) (927,535)
(7,661,639) - (7,661,639)
124,192 124,192
(143,144) (143,144)
(18,952) (18,952)
(7,661,639) (18,952) (7,680,591)
8,513,559 - 8,513,559
149,118 149,118
106,128 106,128
4,072 4,072
251,250 126,215 377,465
37,579 - 37,579
66,122 (66,122) -
9,127,828 60,093 9,187,921
1,466,189 41,141 1,507,330
47,729,127 40,377,087 88,106,214
466,800 - 466,800
48,195,927 40,377,087 88,573,014
$ 49,662,116 $ 40,418,228 $ 90,080,344
23
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2011
G.O. Improvement
Improvement Note I35E
Assets General Bonds 2005A 2009A Interchange
Cash and investments $ 5,337,583 $ 2 $ 491 $
Cash and investments with escrow agent - -
Accrued interest receivable 70,842 -
Accounts receivable 86,822 -
Due from other governmental units 149,462 -
Interfund receivable - -
Taxes receivable:
Delinquent 297,117 - -
Due from county -
Special assessments receivable:
Delinquent -
Deferred 19,101 5,851,618 4,158,530 _
Due from county -
Long-term notes receivable
Prepaid items 165,079 -
Permanently restricted cash and investments - --
Advances to other funds -
row
Total assets $ 6,224,311 $ 5,851,620 $ 4,159,021 $
Liabilities and Fund Balances
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governmental units
Advances from other funds
Deferred revenue
Total liabilities
$ $ 1,628,615 $ $ 3,759
113,145 3,083
183,762 - -
4,820
1,186
316,218 5,851,618 4,158,530
619,131 7,480,233 4,158,530 6,842
Fund balances:
Nonspendable 165,079 - -
Restricted - 491
Committed -
Assigned -
Unassigned 5,440,101 (1,628,613) - (6,842)
Total fund balances 5,605,180 (1,628,613) 491 (6,842)
Total liabilities and fund balances $ 6,224,311 $ 5,851,620 $ 4,159,021 $
The accompanying notes are an integral part of these basic financial statements.
24
Statement 3
Area and Other Total
Unit Governmental Governmental
Charge Funds Funds
$ 3,217,984 $ 8,320,652 $ 16,876,712
�- 70,842
23,752 - 110,574
1,500 150,962
2,008,599 2,008,599
34,824 331,941
11,513 109,818
87,103 41,823 128,926
1,097,666 1,055,990 12,182,905
8,375 3,459 11,834
- 225,000 225,000
- 2,369 167,448
- 119,881 119,881
578,641 578,641
$ 5,013,521 $ 11,825,610 $ 33,074,083
$ $ 935,335 $ 2,567,709
116 44,195 160,539
114 183,876
4,820
1,186
578,641 578,641
1,184,769 1,132,637 12,643,772
1,184,885 2,690,922 16,140,543
578,641 327,369 1,071,089
- 2,657,519 2,658,010
- 110,568 110,568
3,249,995 7,558,273 10,808,268
- (1,519,041) 2,285,605
3,828,636 9,134,688 16,933,540
5,013,521 $ 11,825,610 $ 33,074,083
25
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET ASSETS
December 31, 2011
Total Fund Balances for Governmental Funds
Total net assets reported for governmental activities in the statement of net assets
is different because:
Capital assets used in governmental funds are not financial resources and,
therefore, are not reported in the funds. Those assets consist of:
Land
Construction in Progress
Buildings, Net of Accumulated Depreciation
Office Equipment and Furniture, Net of Accumulated Depreciation
Vehicles, Net of Accumulated Depreciation
Machinery and Shop Equipment, Net of Accumulated Depreciation
Other Equipment, Net of Accumulated Depreciation
Infrastructure, Net of Accumulated Depreciation
Some of the City's property taxes and special assessments will be collected after
year -end, but are not available soon enough to pay for the current period's
expenditures and, therefore, are reported as deferred revenue in the governmental
funds.
Bond issuance costs are reported as expenditures in the governmental funds and are
shown net of accumulated amortization on the statement of net assets.
Interest on long -term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due. Accrued interest for general obligation
bonds is included in the statement of net assets.
Long -term liabilities that pertain to governmental funds, including bonds payable,
are not due and payable in the current period and, therefore, are not reported as
fund liabilities. All liabilities - both current and long -term - are reported in the
statement of net assets. Balances at year -end are:
Bonds Payable
Unamortized Premiums
Unamortized Discounts
Notes Payable
Other Post Employment Benefits
Compensated Absence Payable
Total Net Assets of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
w
INEMP
26
$ 3,275,859
211,705
3,542,239
447,690
1,192,147
197,507
232,546
32,967,803
Statement 4
$ 16,933,540
42,067,496
12,643,772
198,063
(334,899)
(17,406,000)
(89,014)
27,621
(3,695,000)
(72,808)
(610,655) (21,845,856)
$ 49,662,116
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2011
G.O. Improvement
Improvement Note I35E
Revenue: General Bonds 2005A 2009A Interchange
General property taxes $ 7,499,109 $ - $ $ -
Tax increments
Licenses and permits 322,030
Intergovernmental 590,392
Special assessments 21,813 47,476
Charges for services 367,037
Fines and forfeits 154,020
Investment earnings 54,390
Refunds 27,641
Miscellaneous 149,978
Total revenue 9,186,410 - 47,476
Expenditures:
Current:
General government 1,761,776
Public safety 3,791,329 -
Public works 1,324,246 - 13,792
Parks, recreation and forestry 852,717 -
Conservation of natural resources 134,122
Community development 572,284
Capital outlay:
General government 500
Public safety 6,479 -
Public works - 3,706,142
Parks, recreation and forestry - - -
Conservation of natural resources 22,250
Community development 368 -
Debt service:
Principal - 315,000
Interest and fiscal charges 219,848 153,410
Total expenditures 8,466,071 534,848 153,410 3,719,934
Revenue over (under) expenditures 720,339 (534,848) (105,934) (3,719,934)
Other financing sources (uses):
Transfer in 106,000 83,333
Transfer out (741,964) -
Sale of property - -
Issuance of debt -
Loan payable reapportionment - - (565,000)
Total other financing sources (uses) (741,964) 106,000 (481,667)
Net increase (decrease) in fund balance (21,625) (534,848) 66 (4,201,601)
Fund balance - beginning of year 5,626,805 (1,093,765) 425 4,194,759
Fund balance - December 31 $ 5,605,180 $ (1,628,613) $ 491 $ (6,842)
The accompanying notes are an integral part of these basic financial statements.
27
Area and
Unit
Charge
Statement 5
Other Total
Governmental Governmental
Funds Funds
912,149 $ 8,411,258
244,713 244,713
322,030
741,522 1,331,914
440,741 394,492 904,522
240,816 204,751 812,604
154,020
72,550 124,304 251,244
27,641
283,091 433,069
754,107 2,905,022 12,893,015
25,731
11,739 1,773,515
3,791,329
828,963 2,192,732
206,474 1,059,191
134,122
52,002 624,286
11,543 12,043
175,696 182,175
256,033 3,962,175
30,582 30,582
22,250
368
1,715,000
609,871
25,731 3,897,903
2,030,000
983,129
16,797,897
728,376 (992,881) (3,904,882)
(478,650)
(478,650)
249,726
3,578,910
$ 3,828,636
2,782,382
(1,684,979)
50,953
120,000
1,268,356
275,475
8,859,213
$ 9,134,688
2,971 ,715
(2,905,593)
50,953
120,000
(565,000)
(327,925)
(4,232,807)
21,166,347
$ 16,933,540
28
CITY OF LINO LAKES, MINNESOTA Statement 6
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2011
Net Change in Fund Balances -Total Governmental Funds $ (4,232,807)
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities,
assets are capitalized and the cost is allocated over their estimated useful lives and reported as
depreciation expense.
Capital outlays
Contributed capital assets
Proceeds from sales of capital assets
Depreciation expense
$ 603,226
1,980,000
(50,953)
(2,919,383)
The governmental funds report bond proceeds as financing sources, while repayment of bond
principal is reported as an expenditure. In the statement of net assets, however, issuing debt
increases long -term liabilities and does not affect the statement of activities and repayment of
principal reduces the liability. Also, governmental funds report the effect of issuance costs,
premiums and discounts when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities. Interest is recognized as an expenditure in the
governmental funds when it is due. In the statement of activities, however, interest expense is
recognized as it accrues, regardless of when it is due. The net effect of these differences in the
treatment of general obligation bonds and related items is as follows:
Issuance of equipment certificates (120,000)
Repayment of bond principal 2,595,000
Change in accrued interest expense for general obligation bonds 76,214
Amortization of bond issuance costs (31,237)
Amortization of bond premium 13,087
Amortization of bond discount (2,470)
Delinquent and deferred property taxes and special assessments receivable will be collected
subsequent to year -end, but are not available soon enough to pay for the current period's
expenditures and, therefore, are deferred in the governmental funds.
Deferred revenue - December 31, 2010
Deferred revenue - December 31, 2011
9,130,784
12,643,772
(349,531)
2,530,594
3,512,988
In the statement of activities, compensated absences and other post employment benefits are
measured by the amounts earned during the year. In the governmental funds, however,
expenditures for these items are measured by the amount of financial resources used (essentially,
the amounts actually paid). During fiscal year 2011, compensated absence payable and other post
employment benefits payable decreased. 4,945
Change in Net Assets of Governmental Activities $ 1,466,189
The accompanying notes are an integral part of these basic financial statements.
29
WIN
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
December 31, 2011
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Due from other governmental units
Interfund receivable
Special assessments receivable
Due from county - special assessments
Prepaid items
Total current assets
Non - current assets:
Special assessments, long term
Inventory
Unamortized bond issue costs
Capital assets being depreciated:
Buildings
Equipment
Water and sewer systems
Total capital assets
Less: allowance for depreciation
Net capital assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Salaries payable
Deferred Revenue
Accrued interest payable
Bonds payable - current portion
Compensated absences payable - current portion
Total current liabilities
Non - current liabilities:
Compensated absences payable - long term
Total liabilities
Net assets
Invested in capital assets, net of related debt
Unrestricted
Total net assets
The accompanying notes are an integral part of these basic financial statements.
30
Water
$ 3,649,473
217,426
12,997
1,644
8,640
3,890,180
Sewer
$ 6,575,417
211,001
1,728
559,110
1,644
10,932
7,359,832
Statement 7
Total
2011
$ 10,224,890
428,427
1,728
559,110
12,997
3,288
19,572
11,250,012
14,738 14,738
27,433 27,433
344 - 344
48,690 - 48,690
152,648 340,843 493,491
19,784,263 21,258,093 41,042,356
19,985,601 21,598,936 41,584,537
(5,597,917) (6,364,818) (11,962,735)
14,387,684 15,234,118 29,621,802
14,430,199 15,234,118 29,664,317
18,320,379 22,593,950 40,914,329
17,736
5,700
5,407
6,104
404,936
13,855
453,738
8,844
462,582
5,121
5,699
13,855
24,675
8,844
33,519
13,982,748 15,234,118
3,875,049 7,326,313
$ 17,857,797 $ 22,560,431
22,857
11,399
5,407
6,104
404,936
27,710
478,413
17,688
496,101
29,216,866
11,201,362
$ 40,418,228
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
Year Ended December 31, 2011
Statement 8
Total
Water Sewer 2011
Operating revenue:
Charges for services $ 1,054,977 $ 1,486,616 $ 2,541,593
Hook -up charges 9,260 7,220 16,480
Water meter sales 10,561 - 10,561
Other operating revenue 15,306 352 15,658
Total operating revenue 1,090,104 1,494,188 2,584,292
Operating expenses:
Personal services 175,906 177,758 353,664
Materials and supplies 154,450 73,029 227,479
Contractual services 92,345 163,233 255,578
MCES sewer charges - 720,986 720,986
Depreciation 421,616 446,577 868,193
Utilities 80,906 42,251 123,157
Other 19,903 14,229 34,132
Total operating expenses 945,126 1,638,063 2,583,189
Net income from operations 144,978 (143,875) 1,103
Other income (expense):
Investment earnings 43,983
Special assessments 731
Bond interest (15,864)
Paying agent fees (5,653)
Total other income (expense) 23,197
82,232
731
82,963
126,215
1,462
(15,864)
(5,653)
106,160
Net income before contributions and transfers 168,175 (60,912) 107,263
Transfers:
Transfer out (33,061) (33,061) (66,122)
Change in Net Assets 135,114 (93,973) 41,141
Net Assets - January 1 17,722,683 22,654,404 40,377,087
Net Assets - December 31 $ 17,857,797 $ 22,560,431 $ 40,418,228
The accompanying notes are an integral part of these basic financial statements.
31
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2011
Statement 9
Cash flows from operating activities:
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Net transfers
Cash flows from capital and related financing activities:
Principal paid on revenue bonds
Collection of special assessments
Interest and paying agent fees on revenue bonds
Acquisition of capital assets
Net cash flows from (used) by capital and related
financing activities
Cash flows from investing activities:
Interest on investments
Net increase in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income to net cash
from operating activities:
Operating income
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
(Increase) decrease in receivables
Decrease in prepaid items
Decrease in inventory
Decrease in payables
Net cash flows from operating activities
Water
$ 1,046,220
(356,940)
(173,231)
516,049
(33,061)
(390,000)
9,679
(22,468)
(29,837)
(432,626)
43,983
94,345
3,555,128
$ 3,649,473
Sewer
$ 1,498,862
(1,019,639)
(174,083)
305,140 _
(33,061)
1,030
(17,524)
(16,494)
82,232
337,817
6,237,600
$ 6,575,417
Total
2011
$ 2,545,082
(1,376,579)
(347,314)
821,189
(66,122)
(390,000)
10,709
(22,468)
(47,361)
(449,120)
126,215
432,162
9,792,728
$ 10,224,890
$ 144,978 $ (143,875) $
421,616 446,577
(49,083) 4,674
781 635
143 -
(2,386) (2,871)
$ 516,049 $ 305,140 $
The accompanying notes are an integral part of these basic financial statements.
32
1,103
868,193
(44,409)
1,416
143
(5,257)
821,189
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS - AGENCY FUNDS
December 31, 2011
Statement 10
2011
Assets
Cash and investments $ 700,980
Liabilities
Deposits payable $ 700,980
The accompanying notes are an integral part of these financial statements.
33
.— CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under
home rule charter regulations and applicable statutory guidelines.
- The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies:
MEW
your
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Lino Lakes and its component units. A component unit is a legally
separate entity for which the primary government is financially accountable, or for which the exclusion of
the component unit would render the financial statements of the primary government misleading. The
criteria used to determine if the primary government is financially accountable for a component unit
include whether or not the primary government appoints the voting majority of the potential component
unit's board, is able to impose its will on the potential component unit, is in a relationship of financial
benefit or burden with the potential component unit, or is fiscally depended upon by the potential
component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of component
units have been included in the financial reporting entity either as blended component units or as discretely
presented component units.
Blended Component Units
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations
because the members of the City Council serve as commission members. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members. The HRA
has not yet incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government -Wide Statements
The government -wide financial statements (i.e., the statement of net assets and the statement of activities)
display information about the primary government and its component units. These statements include the
financial activities of the overall City government, except for fiduciary activities. Governmental activities,
which normally are supported by taxes and intergovernmental revenues, are reported separately from
business -type activities, which rely to a significant extent on fees and charges to external parties for
support. As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the City's enterprise funds and
various other functions of government. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
1. Government -Wide Statements (Continued)
In the government -wide statement of net assets, both the governmental and business -type activities
columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual,
economic resource basis, which recognizes all long -term assets and receivables as well as long -term debt
and obligations. The City's net assets are reported in three parts: (1) invested in capital assets, net of related
debt; (2) restricted net assets; and (3) unrestricted net assets. The City first utilizes restricted resources to
finance qualifying activities.
The statement of activities demonstrates the degree to which the direct expenses of each function of the
City's governmental activities and different business -type activities are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or activity. Program revenues
include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a
given function or activity; and (2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or activity. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
2. Fund Financial Statements
The fund financial statements provide information about the City's funds, including its fiduciary funds and
blended component unit. Separate statements for each fund category (governmental, proprietary, and
fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on
major individual governmental and enterprise funds, with each displayed as separate columns in the fund
financial statements. All remaining governmental and enterprise funds are aggregated and reported as
nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund
The general fund is the City's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds 2005A Fund
The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for,
and the payment of, interest, principal and related costs on general long -term debt.
Improvement Note 2009F Fund
The improvement note 2009F fund accounts for the accumulation of resources for, and the payment of,
interest, principal and related costs on general long -term debt.
I35E Interchange Fund
The I35E interchange fund accounts for the activity related to the I35E /CSAH 14 Interchange
Reconstruction Project.
35
Nimm
NNW
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
Area and Unit Charge Fund
The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for
debt payments and construction of infrastructure.
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service charges that are used to finance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer water service charges that are used to finance water operating
expenses.
Additionally, the City reports the following fiduciary funds:
Agency Funds - to account for assets held as an agent for individuals, private organizations, other
governmental units, and/or other funds. The City's agency fund accounts for pass- through contractor's
deposits relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government -wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary
Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Private - sector standards of accounting and financial reporting issued on or before November 30, 1989,
generally are followed in both the government -wide and proprietary fund financial statements to the extent
that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private- sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all revenues to be available if they are collected within 60
days after the end of the current period. Property and other taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long -term debt, compensated absences, and claims and judgments, which
are recognized as expenditures to the extent that they have matured. Proceeds of general long -term debt
and acquisitions under capital leases are reported as other financing sources.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services,
or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions,
including special assessments.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the
City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund.
Budgeted expenditure appropriations lapse at year -end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by
the City because it is not presently considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E. LEGAL COMPLIANCE — BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the
following January 1. The operating budget includes proposed expenditures and the means of financing
them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can be
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the
City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the
Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and
calculate user charges. These debt service and budget amounts represent general obligation bond
indenture provisions and net income for operation and capital maintenance and are not reflected in the
financial statements.
37
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE — BUDGETS (CONTINUED)
7. A capital improvement program is reviewed periodically by the City Council for the Capital Project
Funds. However, appropriations for major projects are not adopted until the actual bid award of the
improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved
by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e.
administration, community development, public safety, public services, and other).
9. The City Council may authorize transfers of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in investments
authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis
of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund in the governmental fund
financial statements, and an interfund payable in the fund with the deficit, until adequate resources are
received. These interfund payables are eliminated for statement of net assets presentation.
Investments are stated at fair value and interest earnings are accrued at year -end.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
Permanently restricted cash and investments represents the principal portion of resources received that
must be retained in a permanent fund. Only earnings from these funds may be used for purposes that
support environmental maintenance and improvements.
G. PROPERTY TAX CREDITS
Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax
credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property.
The State remits these credits through installments each year. These credits are recognized as revenue by
the City at the time of collection.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy /assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are
payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability to enforce payment of
property taxes by property owners. The County possesses this authority.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. In practice, current
and delinquent taxes and State credits received by the City in July, December and the following January
are recognized as revenue for the current year. Taxes and credits not received at the year -end are classified
as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the
City in January is fully offset by deferred revenue because it is not available to finance current
expenditures. Deferred revenue in governmental activities is susceptible to full accrual on the government -
wide statements.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth
since 1971. Property taxes paid to the City through this formula for 2011 totaled $1,096,862. 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.
Within the fund financial statements, the revenue from special assessments is recognized by the City when
it becomes measurable and available to finance expenditures of the current fiscal period. In practice,
current and delinquent special assessments received by the City are recognized as revenue for the current
year. Special assessments are collected by the County and remitted by December 31 (remitted to the City
the following January) and are also recognized as revenue for the current year. All remaining delinquent,
deferred and special deferred assessments receivable in governmental funds are completely offset by
deferred revenues. Deferred revenue in governmental activities is susceptible to full accrual on the
government -wide statements.
AMMO
39 ...
Now
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED)
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first
proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Generally, the City will collect the full amount of its special assessments
not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which
event the property is subject to such sale after five years.
J. INVENTORIES
The original cost of materials and supplies has been recorded as expenditures /expenses at the time of
purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts
of materials and supplies.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. The year -end balances are classified as interfund receivables and payables on the
governmental fund balance sheets. The non - current portion of interfund loans are reported as "advances
to /from other funds." Advances between funds are offset by a nonspendable fund balance account in
applicable governmental funds to indicate they are not available for appropriation and are not expendable
from available financial resources.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks,
street lights, and similar items) are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets exceeding the City's capitalization
threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. All existing City infrastructure has been capitalized regardless of date placed in service.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net Assets. Capital assets are depreciated using the
straight -line method over their estimated useful lives. Since surplus assets are sold for an immaterial
amount when declared as no longer needed for City purposes, no salvage value is taken into consideration
for depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and
Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure.
Capital assets not being depreciated include land and construction in progress.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits.
All vacation pay and the portion of sick pay allowable as severance pay is accrued as incurred in the
government -wide and proprietary fund financial statements. The current portion is calculated based on
historical trends.
N. LONG -TERM OBLIGATIONS
In the entity-wide financial statements, long -term debt and other long -term obligations are reported as
liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight -line method. Bond issue costs, if material, are
amortized over the term of the related debt using the straight -line method.
In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs
are recognized during the current period. The face amount of the debt issue is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts are
reported as other financing uses. Issue costs are reported as debt service expenditures.
O. FUND EQUITY
At December 31, 2011, the City adopted GASB Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions.
In the fund financial statements, governmental funds report fund balances in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable — portions of fund balance related to prepaids, inventories, long -term receivables,
and corpus on any permanent fund.
Restricted — funds are constrained by external parties (statute, grantors, bond agreements, etc).
Committed — funds are established and modified by a resolution approved by the City Council.
Assigned — consists of internally imposed constraints. These constraints are established by the
City Council and/or management. The City Council also delegates the authority to assign fund
balance to the Finance Director.
Unassigned — is the residual classification for the General Fund and also reflects negative residual
amounts in other funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is
available, it is the City's policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are
available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts.
Gala
The City formally adopted a fund balance policy for the General Fund. The policy establishes an
unassigned fund balance range of 40% - 50% of General Fund operating expenditures.
41 �.
i
IMEnr
Nr-
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and
as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions
are reported as transfers.
All Interfund transactions are eliminated except for activity between governmental activities and business-
type activities for presentation in the entity-wide statements of net assets and statements of activities.
Q. PRIOR PERIOD ADJUSTMNENT
The amount of land at December 31, 2010 was understated due to unrecorded donated land from previous
years. A total of $466,800 was added to the beginning balance of land and the adjustment was posted to
beginning net assets on the government -wide statement of activities.
Note 2 DEPOSITS AND INVESTMENTS
Components of Cash and Investments
Cash and investments at year -end consists of the following:
Deposits $ 4,532,173
Investments 23,389,470
Cash on Hand 820
Total $ 27,922,463
Cash and investments are presented in the financial statements as follows:
Cash and Investments - Statement of Net Assets $ 27,221,483
Cash and Investments - Statement of Net Assets - Fiduciary Funds 700,980
Total $ 27,922,463
A. Deposits
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's
portion of this pool is displayed on the statement of net assets and the balance sheet as "Cash and
Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions
which are authorized by the City Council.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
A. Deposits (Continued)
Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the
City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial
credit risk but rather follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits
be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal
110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include:
U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of
a state or local government rated "A" or better; revenue obligations of a state or local government rated
"AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits
insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in
safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a
commercial bank or other financial institution not owned or controlled by the depository.
The carrying value and bank balance of the City's deposits in banks at December 31, 2011 is $4,532,173
and $4,770,040, respectively, and were entirely covered by federal depository insurance or by surety bonds
and collateral in accordance with Minnesota Statutes.
B. Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows:
• Direct obligations or obligations guaranteed by the United States or its agencies
• Shares of investment companies registered under the Federal Investment Company Act of 1940 and
received the highest credit rating, is rated in one of the two highest rating categories by a statistical
rating agency, and all of the investments have a final maturity of thirteen months or less
• General obligations rated "A" or better; revenue obligations rated "AA" or better
• General obligations of the Minnesota Housing Finance Agency rated "A" or better
• Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System
• Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of
highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days
or less
• Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches
of foreign banks or United States insurance companies if similar debt obligations of the issuer or the
collateral pledged by the issuer is in the top two rating categories
• Repurchase or reverse purchase agreements and securities lending agreements financial institutions
qualified as a "depository" by the government entity, with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or certain Minnesota securities
broker - dealers
Investments Held with Broker —
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
to changes in market interest rates. The City's policy to minimize interest rate risk includes investing
primarily in short-term securities and structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations. Information about the sensitivity of the fair values of the City's
investments to market interest rate risk fluctuations is provided by the following table that shows the
distribution of the City's investments by maturity:
43
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Type
Minnesota Municipal Money
Market Trust Fund
Federal Farm Credit Banks
Federal Home Loan Bank
Federal Home Loan Mortgage Corp.
Federal National Mortgage Assn.
Negotiable CDs
Municipal Bonds
Mutual Fund
Total
Credit Risk
12 Months 13 to 24
Total or Less Months
$ 66,659
300,878
1,302,457
1,382,033
3,002,642
12,077,180
4,986,283
271,338
$ 23,389,470
$ 66,659 $
12,077,180
385,022
271,338
$ 12,800,199
25 to 60 More than
Months 60 Months
$ - $
300,878
1,302,457
300,215 1,081,818
1,550,956 1,451,686
682,673 2,126,401 1,792,187
$ 682,673 $ 4,278,450 $ 5,628,148
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. The City's policy to minimize credit risk includes limiting investing funds to those
allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments
are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The following chart summarizes year -end ratings for
the City's investments as rated by Moody's Investors Service:
Type
Minnesota Municipal Money Market Trust Fund
Federal Farm Credit Banks
Federal Home Loan Bank
Federal Home Loan Mortgage Corp.
Federal National Mortgage Assn.
Negotiable CDs
Municipal Bonds
Mutual Fund
Total
Credit
Quality Rating
Aa2
Aaa/AA+
Aaa/AA+
Aaa/AA+
Aaa/AA+
Not Rated
A -Aaa
Not Rated
Amount
$ 66,659
300,878
1,302,457
1,382,033
3,002,642
12,077,180
4,986,283
271,338
$ 23,389,470
The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with
the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
statutes as described on the previous page. Its investments are valued at amortized cost, which
approximates market value in accordance with Rule 2a -7 of the Investment Company Act of 1940. The
amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the fair value of instruments.
The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who
administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2.
For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
will not be able to recover the value of its investment or collateral securities that are in the possession of an
outside party. The City's investment policy doesn't specifically address custodial credit risk.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The City places no limit on the amount that it may invest in any one issuer. The following is a list of
investments which individually comprise more than 5% of the City's total investments:
Type Amount Percentage
Federal Home Loan Bank $ 1,302,457 5.57%
Federal Home Loan Mortgage Corporation 1,382,033 5.91%
Federal National Mortgage Association 3,002,641 12.84%
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2011 was as follows:
Beginning
Beginning Prior Period Balance, Ending
Balance Adjustment as Restated Increases Decreases Balance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land $ 2,809,059 $ 466,800 $ 3,275,859 $ - $ $ 3,275,859
Construction in Progress - - 211,705 211,705
Total Capital Assets, Not Being Depreciated 2,809,059 466,800 3,275,859 211,705 - 3,487,564
Capital Assets, Being Depreciated:
Buildings 6,499,752 6,499,752 30,582 6,530,334
Office Equipment and Furniture 1,160,889 - 1,160,889 160,255 (14,755) 1,306,389
Vehicles 2,348,111 - 2,348,111 200,684 (172,166) 2,376,629
Machinery and Shop Equipment 693,565 693,565 - 693,565
Other Equipment 980,308 - 980,308 - (27,860) 952,448
Infrastructure 75,713,197 75,713,197 1,980,000 - 77,693,197
Total Capital Assets, Being Depreciated 87,395,822 - 87,395,822 2,371,521 (214,781) 89,552,562
Accumulated Depreciation for:
Buildings (2,771,062) - (2,771,062) (217,033) (2,988,095)
Office Equipment and Furniture (800,215) - (800,215) (71,911) 13,427 (858,699)
Vehicles (1,124,750) - (1,124,750) (223,567) 163,835 (1,184,482)
Machinery and Shop Equipment (460,816) - (460,816) (35,242) - (496,058)
Other Equipment (708,433) - (708,433) (35,614) 24,145 (719,902)
Infrastructure (42,389.378) - (42,389,378) (2,336,016) - (44,725,394)
Total Accumulated Depreciation (48.254,654) (48,254,654) (2,919,383) 201,407 (50,972,630)
Total Capital Assets, Being Depreciated, Net 39,141,168 39,141,168 (547,862) (13,374) 38,579,932
Governmental Activities Capital Assets, Net $ 41,950,227 $ 466,800 $ 42,417,027 5 (336,157) $ (13,374) $ 42,067,496
Depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General Government $ 244,716
Public Safety 91,629
Public Services 2,423,523
Parks, Recreation and Forestry 158,665
Conservation of Natural Resources 350
Community Development 500
Total Depreciation Expense, Governmental Activities $ 2,919,383
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 3 CAPITAL ASSETS (CONTINUED)
Beginning Ending
Balance Increases Decreases Balance
Business -Type Activities:
Capital Assets, Not Being Depreciated:
Construction in Progress $ $ - $ $
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings 48,690 - - 48,690
Machinery and Shop Equipment 464,203 47,360 (18,072) 493,491
Water and Sewer Lines 41,042,356 - - 41,042,356
Total Capital Assets, Being Depreciated 41,555,249 47,360 (18,072) 41,584,537
Accumulated Depreciation for:
Buildings (48,690) - - (48,690)
Machinery and Shop Equipment (281,855) (25,157) 18,072 (288,940)
Water and Sewer Lines (10,782,069) (843,036) - (11,625,105)
Total Accumulated Depreciation (11,112,614) (868,193) 18,072 (11,962,735)
Total Capital Assets, Being Depreciated, Net 30,442,635 (820,833) - 29,621,802
Business -Type Capital Assets, Net $ 30,442,635 $ (820,833) $ - $ 29,621,802
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2011 is composed of the following:
Final
Issue Maturity Interest Original
Date Date Rate Issue
Payable
12/31/2011
Governmental Activities:
General Obligation Bonds:
2008A Equipment Certificates 2/1/2008 12/31/2011 4.00% $ 209,000 $ -
2009A Equipment Certificates 4/1/2009 12/31/2012 3.00% 336,000 118,000
2010A Equipment Certificates 4/1/2010 12/31/2013 2.00 % - 3.00% 170,000 118,000
2011A Equipment Certificates 2/14/11 12/31/2014 1.00% 120,000 120,000
G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00%-4.30% 2,460,000 2,430,000
G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00 % -4.15% 570,000 370,000
G.O. CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 2,605,000
G.O. Tax Increment Financing Bonds, Series 2007A 7/15/2007 2/1/2024 4.00%-4.125% 4,215,000 3,660,000
Total General Obligation Bonds 11,070,000 9,421,000
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A 8/1/2002 2/1/2013 3.00 % - 4.10% 645,000 60,000
G.O. Improvement Bonds, Series 2002B 8/1/2002 2/1/2013 3.20% -5.55% 2,110,000 515,000
G.O. Improvement Refunding Bonds, Series 2003A 12/1/2003 2/1/2019 2.00%-4.25% 2,090,000 545,000
G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20% -5.60% 250,000 95,000
G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35% -5.15% 5,550,000 4,180,000
G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75% -5.00% 3,755,000 1,690,000
G.O. Improvement & Utility Revenue Refunding Bonds, Series
2010A 7/9/2010 2/1/2020 2.00% -3.00% 1,000,000 900,000
Total Special Assessment Bonds 15,400,000 7,985,000
Total Bonds 26,470,000 17,406,000
Note Payable - Anoka County - 2009A 8/1/2009 8/1/2024 4.00% -3.70% 4,260,000 3,695,000
Unamortized Bond Discounts (45,490) (27,621)
Unamortized Bond Premiums 202,370 89,014
Compensated Absences Payable N/A 610,655
Other Post Employment Benefit Plan N/A 72,808
Total Governmental Activities $ 30,886,880 $ 21,845,856
Business -Type Activities:
Revenue Bonds:
G.O. Water Revenue Refunding Bonds, Series 2006F 11/1/2006 2/1/2012 3.55%-3.625% $ 1,740,000 $ 405,000
Unamortized Bond Discounts (4,002) (64)
Compensated Absences Payable N/A 45,398
Total Business -Type Activities $ 1,735,998 $ 450,334
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2011:
Payable Payable Due Within
12/31/2010 Issues Payments 12/31/2011 One Year
Governmental activities:
Bonded debt:
General Obligation $ 10,141,000 $ 120,000 $ 840,000 $ 9,421,000 $ 940,000
Special Assessment 9,175,000 1,190,000 7,985,000 1,205,000
Unamortized Bond Discounts (30,091) - (2,470) (27,621) -
Unamortized Bond Premiums 102,101 13,087 89,014
Note Payable - Anoka County 4,260,000 - 565,000 3,695,000 -
Compensated Absences Payable 625,121 547,346 561,812 610,655 409,343
Other Post Employment Benefit Plan 63,287 27,268 17,747 72,808 -
Total Governmental Activities 24,336,418 694,614 3,185,176 21,845,856 2,554,343
Business -Type Activities:
Revenue Bonds 795,000 - 390,000 405,000 405,000
Unamortized Bond Discounts (826) (762) (64) (64)
Compensated Absences Payable 41,104 37,050 32,756 45,398 27,710
Total Business-Type Activities 835,278 37,050 421,994 450,334 432,646
Total $ 25,171,696 $ 731,664 $ 3,607,170 $ 22,296,190 $ 2,986,989
All long -term bonded indebtedness outstanding at December 31, 2011 is backed by the full faith and credit of the
City, including special assessment bond issues. For the governmental activities, compensated absences are generally
liquidated by the general fund.
�- Minimum annual principal and interest payments required to retire long -term debt, not including compensated
w
absences payable are as follows.
Govemmental Activities Business -Type Activities
Principal Interest Principal Interest Total
Years ending December 31,
2012 $ 2,145,000 $ 807,928 $ 405,000 $ 7,341 $ 3,365,269
2013 2,175,000 748,305 - 2,923,305
2014 1,931,000 658,459 - 2,589,459
2015 2,260,000 578,331 2,838,331
2016 1,940,000 494,390 2,434,390
2017 -2021 8,375,000 1,418,405 9,793,405
2022 -2024 2,275,000 228,102 2,503,102
Total $ 21,101,000 $ 4,933,920 $ 405,000 $ 7,341 $ 26,447,261
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.
Revenue Bonds - These bonds were issued to finance various improvements in the water fund and will be repaid
primarily from pledged revenues derived from the constructed assets.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 4 CITY INDEBTEDNESS (CONTINUED)
In December 2009, the City of Lino Lakes entered into a joint powers agreement for a note payable with Anoka
County for $4,260,000. The note payable with Anoka county is for the reconstruction of County State Aid Highway
14 (Main Street) and I -35E Interchange County Project. During 2011, the note payable balance was reduced by
Anoka County due to lower than expected project costs. The amount of the note payable was reduced from
$4,260,000 to $3,695,000.
Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund
employees through the end of the year which will be paid or used in future periods. For the governmental activities,
compensated absences are generally liquidated by the general fund. The liability for Proprietary Fund employees is
included in the accrued liabilities of those funds.
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally
from property taxes. The City of Lino Lakes' legal debt margin for 2011 is computed as follows:
Market value
Applicable percentage
Debt Limit
12/31/11
$ 1,804,121,500
3.0%
54,123,645
Amount of debt applicable to debt limit:
Total bonded debt 17,811,000
Less: Special assessment bonds (7,985,000)
Tax abatement bonds (2,430,000)
Utility revenue bonds (370,000)
Tax increment financing bonds (3,660,000)
Revenue bonds (405,000)
Total debt applicable to debt limit 2,961,000
Legal debt margin $ 51,162,645
49
-- CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE
A. PLAN DESCRIPTION
All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire
Fund (PEPFF) which are a cost - sharing, multiple - employer retirement plan. This plan is established and
administered in accordance with Minnesota Statutes, Chapter 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute
are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring
member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary
for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each
remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the
annuity accrual rate is 3.0% for each year of service.
For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a
full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and
Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social
Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced
retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a
lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees, who are entitled to benefits but are not receiving
them yet, are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the interne at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by
calling (651) 296 -7460 or 1- 800 - 652 -9026.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED)
B. FUNDING POLICY
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10% and 6.25% respectively, of their annual covered salary. PEPFF members
were required to contribute 9.6% of their annual covered salary in 2011. The City is required to contribute
the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for
Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the General
Employees Retirement Fund for the years ended December 31, 2011, 2010, and 2009 were $187,186,
$177,081, and $186,454, respectively. The City's contributions to the Public Employees Police & Fire
Fund for the years ended December 31, 2011, 2010, and 2009 were $285,356, $280,046, and $303,949,
respectively. The City's contributions were equal to the contractually required contributions for each year
as set by state statute.
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of
the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis
and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective
basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater
Services (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 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
A. Deficit Fund Balances
The City has deficit fund balances at December 31, 2011 as follows:
Fund Balance
Deficit
35E Interchange $ (6,842)
Dedicated Parks (578,237)
Tax Increment Financing 1 -11 (764,145)
G.O. Improvement Bonds 2005A (1,628,613)
Traffic Control (176,659)
The City intends to fund these deficits through future tax levies, special assessment levies, tax increments,
transfers from other funds, and various other sources.
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY (CONTINUED)
B. Expenditures in Excess of Budget
The following is a listing of expenditure categories that exceed budget appropriations for non -major funds:
Budget Actual
Excess
Program Recreation Special Revenue Fund:
Supplies $ 50,955 $ 118,134 $ (67,179)
Note 9 CONTINGENCIES
Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office
of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could
have a material effect on the financial statements.
Federal and State Funds — The City receives financial assistance from federal and state governmental agencies in the
form of grants. The disbursement of funds received under these programs generally requires compliance with the
terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any
disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the
opinion of management, any such disallowed claims will not have a material effect on any of the financial
statements of the individual fund types included herein or on the overall financial position of the City at December
31, 2011.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies
is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is
notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to
cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy
any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31,
2011.
Future scheduled tax levies for all bonds outstanding at December 31, 2011 totaled $18,962,681.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 11 FUND BALANCE
At December 31, 2011, the City had various fund balances restricted, committed, or assigned through legal
restriction and City Council authorization. Major fund balance appropriations at December 31, 2011 are shown on
the various balance sheets as segregations of the fund balance. The fund balances are as follows:
Total Nonspendable Restricted Committed Assigned Unassigned
General Fund: $ 5,440,101 $ - $ - $ - $ - $ 5,440,101
Prepaid items 165,079 165,079 -
Total General Fund 5,605,180 165,079 - 5,440,101
G.O. Improvement Bonds 2005A:
Deficit Fund Balance (1,628,613) - (1,628,613)
Improvement Bonds 2009F:
Debt Service 491 491 -
135E Interchange:
Deficit Fund Balance (6,842) - - (6,842)
Area and Unit Charge:
Advances to Other Funds 578,641 578,641 -
Construction Projects 3,249,995 - - 3,249,995
Total Area and Unit Charge 3,828,636 578,641 3,249,995 -
Nonmajor Governmental Funds:
Prepaid items 2,369 2,369 -
Long -term Loan Receivable 225,000 225,000 -
Corpus of Permanent Fund 100,000 100,000 -
Program Recreation 110,568 - - 110,568
Environmental Improvements 19,881 19,881 -
Debt Service 2,637,638 2,637,638
Construction Projects 7,558,273 - 7,558,273
Deficit Fund Balance (1,519,041) - (1,519,041)
Total Nonmajor Funds 9,134,688 327,369 2,657,519 110,568 7,558,273 (1,519,041)
Total Fund Balances $ 16,933,540 $ 1,071,089 $ 2,658,010 $ 110,568 $ 10,808,268 $ 2,285,605
Note 12 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service
within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2011 was
$91,203.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds
and at December 31, 2011 are as follows:
Governmental Activity:
G.O. Improvement Bonds 2005A
I35E Interchange
Other Nonmajor Governmental Funds
Business -Type Activity:
Sewer Fund
53
Receivable
2,008,599
559,110
Payable
$ 1,628,615
3,759
935,335
$ 2,567,709 $ 2,567,709
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 13 INTERFUND RECEIVABLE AND PAYABLES (CONTINUED)
Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and
from other fund and at December 31, 2011 are as follows:
Receivable Payable
Governmental Activity:
Area and Unit Charge $ 578,641 $
Other Nonmajor Governmental Funds - 578,641
$ 578,641 $ 578,641
The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated
Parks Fund.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2011 are as follows:
Transfer In Transfer Out
Governmental Activity:
General Fund $ $ (741,964)
Improvement Bonds of 2005A 83,333
Improvement Bonds of 2009F 106,000
Area and Unit Charge - (478,650)
Other Nonmajor Governmental Funds 2,782,382 (1,684,979)
Total Governmental Activity 2,971,715 (2,905,593)
Business -Type Activity:
Water Fund (33,061)
Sewer Fund (33,061)
Total Business -Type Activity (66,122)
Total $ 2,971,715 $ (2,971,715)
Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the
transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open
and close funds.
Note 15 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self - insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 15 RISK MANAGEMENT (CONTINUED)
Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT. The City
pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the
LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City
retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies.
These amounts are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and employee
health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 16 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial
assistance to private- sector entities for the acquisition and construction of industrial and commercial facilities which
are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities
transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the
repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements. As of December 31, 2011, two series of Industrial Revenue Bonds were outstanding with aggregate
remaining principal balances of $765,000 and $400,000, respectively, and one series of Commercial Revenue Notes
was outstanding with an aggregate remaining principal balance of $2,610,679.
Note 17 LEASE COMMITMENT
The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City Hall
complex to the Independent School District No. 12 (ISD 12). The lease term has been renewed as of July 1, 2009
and continues through June 30, 2011 and requires payments of $110 per square foot over the lease term for a total
of $300,000. Effective February 14, 2011, the lease was further renewed through June 30, 2012 and requires two
payments of $60,000 semi annually.
The prorated carrying value of the building being leased is as follows:
Building $ 929,970
Less: Accumulated Depreciation (371,988)
Net $ 557,982
Note 18 JOINT VENTURES
Fire
The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino
Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but
not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two
commissioners to the District's Board.
55
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 18 JOINT VENTURES (CONTINUED)
Fire (Continued)
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 2011, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 525,842
Capital 87,000
Total $ 612,842
Separate financial statements of the District can be obtained by contacting the Centennial Fire District.
The audited condensed financial statements of the District as of December 31, 2011 are as follows:
Total Assets $ 1,524,597
Total Liabilities 109,106
Total Net Assets 1,415,491
Total Operating Revenue 923,222
Total Operating Expenses 818,638
Anoka County
The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid
Highway 14 (Main Street) and I -35E Interchange County Project.
Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City
engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as
of January 1, 2011.
A. Plan Description
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active
employees, who retire from the City when over age 50 and with 20 years of service, may continue
coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits
program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium
cost. As of December 31, 2011 there were approximately 49 active participants and 7 retired participants
receiving benefits from the City's health plans.
B. Funding Policy
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2011, the City contributed
$18,396 to the plan.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. Annual OPEB Cost and Net OPEB Obligation
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize any un- funded actuarial liabilities over a period not to exceed
thirty years. The following table shows the components of the City's annual OPEB cost for the year, the
amount actually paid from the plan, and changes in the City's net OPEB obligation.
Annual Required Contribution $ 29,449
Interest on Net OPEB Obligation 1,266
Adjustment to Annual Required Contribution (2,798)
Annual OPEB Cost (Expense) 27,917
Contributions Made (18,396)
Increase in Net OPEB Obligation 9,521
Net OPEB Obligation- Beginning of Year 63,287
Net OPEB Obligation- End of Year $ 72,808
The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2011:
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEB Cost OPEB
Ended Cost Contributed Obligation
12/31/2009 $ 41,152 45.9% $ 44,734
12/31/2010 40,404 51.1% 63,287
12/31/2011 27,917 65.9% 72,808
D. Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the City's unfunded actuarial accrued
liability (UAAL) was $474,770. The annual payroll for active employees covered by the plan in the
actuarial valuation was $4,953,560 for a ratio of UAAL to covered payroll of 9.6 %.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information about whether the actuarial value
of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
57
... CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2011
Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
"" each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long -term perspective of the calculations.
In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 2% inflation rate, a 2% investment rate of return (net of administrative
expenses), which is a blended rate of the expected long -term investment returns on plan assets and on the
employer's own investments calculated based on the funded level of the plan at the valuation date. The
initial healthcare trend rate was 0 %, increasing to an ultimate rate of 4% after three years. The UAAL is
being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization
period at December 31, 2011 was not to exceed 30 years.
REQUIRED SUPPLEMENTARY INFORMATION
■
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
Statement 11
Page 1 of 6
Revenue:
General property taxes:
Current and delinquent
Fiscal disparities
Excess tax increments
Total general property taxes
Licenses and permits:
Business
Non - business
Total licenses and permits
Intergovernmental:
State:
Market Value Credit
Police state aid
MSA maintenance
Other
County/Regional:
Solid waste
Other
Total intergovernmental
Special Assessments:
Penalties and Interest
Charges for services:
General government
Planning/engineering
Fees retained from collection for
other governments - SAC /surcharge
Administrative charge - other funds
Aerial map charge - other funds
Public safety
Total charges for services
Fines and forfeits
Investment earnings
Refunds
Miscellaneous:
Gas franchise fees
Cable TV
Donations
Other
Total miscellaneous
Total Revenue
2011
Original
Budget
Final
Budget
Variance with
Final Budget
Positive
Actual (Negative)
$ 7,599,240 $ 6,666,440 $ 6,521,402 $ (145,038)
- 967,800 977,707 9,907
7,599,240
79,200
334,500
413,700
7,634,240 7,499,109
89,200 85,446
239,500 236,584
328,700 322,030
(135,131)
(3,754)
(2,916)
(6,670)
3,405 3,405
185,000 185,000 164,305 (20,695)
185,000 185,000 198,292 13,292
162,282 179,282 183,722 4,440
35,000 35,000 32,276 (2,724)
5,000 9,000 8,392 (608)
572,282 593,282 590,392 (2,890)
6,000 6,000 21,813 15,813
22,400 22,400 18,413 (3,987)
6,000 6,000 5,048 (952)
1,000 1,000 1,178 178
50,000 50,000 50,000 -
4,000 4,000 90 (3,910)
290,000 290,000 292,308 2,308
373,400 373,400 367,037 (6,363)
135,000 145,000 154,020 9,020
60,000 50,000 54,390 4,390
15,000 25,000 27,641 2,641
105,000 105,000 91,203 (13,797)
55,000 55,000 57,915 2,915
5,000 5,000 250 (4,750)
100,000 610 610
265,000 165,000 149,978 (15,022)
9,439,622 9,320,622 9,186,410 (134,212)
59
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
2011
Statement 11
Page 2 of 6
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Expenditures:
General government:
Mayor and council:
Current:
Personal services $ 40,573 $ 40,573 $ 32,277 $ 8,296
Other services and charges 33,000 33,000 25,013 7,987
Contractual Services 15,236 15,236 14,320 916
Total mayor and council 88,809 88,809 71,610 17,199
Elections:
Current:
Personal services 11,010 11,010 6,254 4,756
Supplies 300 300 15 285
Other services and charges 2,250 2,250 1,684 566
Contractual Services 500 500 - 500
Total elections 14,060 14,060 7,953 6,107
Administration:
Current:
Personal services 427,924 452,924 453,126 (202)
Supplies - 99 (99)
Other services and charges 20,400 20,400 9,255 11,145
Contractual Services 3,400 3,400 3,539 (139)
Total administration 451,724 476,724 466,019 10,705
Finance:
Current:
Personal services 300,164 300,164 298,891 1,273
Supplies 1,500 1,500 861 639
Other services and charges 102,825 102,825 100,188 2,637
Contractual Services 102,900 102,900 98,476 4,424
Total finance 507,389 507,389 498,416 8,973
Cable TV:
Current:
Personal services 2,163 2,163 1,654 509
Supplies 50 50 - 50
Total cable TV 2,713 2,713 2,154 559
Consultants:
Current:
Legal 175,000 185,000 171,875 13,125
60
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
2011
Statement 11
Page 3 of 6
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
General government (continued):
Engineering /planning:
Current:
Contractual services $ 176,600 $ 116,600 $ 113,186 $ 3,414
Senior Service:
Current:
Personal services - (92) 92
Charter commission:
Current:
Other services and charges 1,500 1,500 1,500
General government buildings:
_ Current:
Personal services 91,910 61,910 62,726 (816)
Supplies 37,500 37,500 26,861 10,639
Other services and charges 309,880 304,880 268,047 36,833
Contractual services 25,000 70,000 72,021 (2,021)
Capital outlay - - -
Total general government buildings 464,290 474,290 429,655 44,635
Total general government 1,882,085 1,867,085 1,762,276 104,809
Public safety:
Police:
Current:
Personal services 2,981,380 2,931,380 2,907,888 23,492
Supplies 28,500 28,500 26,070 2,430
Other services and charges 81,050 89,050 86,461 2,589
Contractual services 37,000 37,000 36,471 529
Capital outlay 7,200 7,200 6,479 721
Total police 3,135,130 3,093,130 3,063,369 29,761
Mar Fire protection:
Current:
Contractual services 525,844 525,844 525,842 2
Building inspection:
IMmr Current:
Personal services 198,719 198,719 194,805 3,914
Supplies 970 970 291 679
Other services and charges 12,420 12,420 12,910 (490)
Contractual services 1,150 1,150 591 559
Capital outlay -
Total building inspection 213,259 213,259 208,597 4,662
Total public safety 3,874,233 3,832,233 3,797,808 34,425
61
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
2011
Statement 11
Page 4 of 6
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Public works:
Streets:
Current:
Personal services $ 536,538 $ 541,538 $ 526,908 $ 14,630
Supplies 130,500 130,500 125,026 5,474
Other services and charges 101,685 106,685 104,463 2,222
Contractual services 172,200 172,200 174,819 (2,619)
Total streets 940,923 950,923 931,216 19,707
Fleet:
Current:
Personal services 92,761 97,761 94,044 3,717
Supplies 224,000 244,000 239,324 4,676
Other services and charges 56,070 71,070 57,961 13,109
Contractual services 2,700 2,700 1,701 999
Total fleet 375,531 415,531 393,030 22,501
Total public works
1,316,454 1,366,454 1,324,246 42,208
Parks and recreation:
Parks:
Current:
Personal services $ 456,894 $ 464,394 $ 461,695 $ 2,699
Supplies 26,500 41,500 37,864 3,636
Other services and charges 50,700 50,700 40,350 10,350
Contractual services 45,850 45,850 35,094 10,756
Total parks 579,944 602,444 575,003 27,441
Recreation:
Current:
Personal services 275,708 266,708 260,945 5,763
Supplies 2,500 2,500 2,218 282
Other services and charges 16,600 16,600 14,228 2,372
Contractual services 800 800 323 477
Total recreation 295,608 286,608 277,714 8,894
Total parks and recreation 875,552 889,052 852,717 36,335
62
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
2011
Statement 11
Page 5 of 6
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Conservation of natural resources:
Forestry:
Current:
Personal services 33,407 33,407 33,319 88
Supplies 1,250 1,250 1,855 (605)
Other services and charges 800 800 355 445
Contractual services 5,500 500 1 499
- Total forestry 45,957 57,957 57,780 177
Environmental:
Current:
Personal services 50,504 50,504 50,102 402
-
Supplies 1,500 1,500 627 873
Other services and charges 9,480 9,480 4,089 5,391
Contractual services 1,550 6,550 6,432 118
Total environmental 63,034 68,034 61,250 6,784
Solid waste abatement:
- Current:
Personal services $ 29,016 $ 29,016 $ 29,504 $ (488)
Supplies - - -
- Other services and charges 550 550 350 200
Contractual services 6,000 6,000 7,488 (1,488)
Capital outlay - - - -
Total solid waste abatement 35,566 35,566 37,342 (1,776)
INIMP
Total conservation of natural resources 144,557 161,557 156,372 5,185
63
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
2011
Statement 11
Page 6 of 6
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
Community Development:
Community Development:
Current:
Personal services 222,676 222,676 218,208 4,468
Supplies 100 100 17 83
Other services and charges 8,700 8,700 8,154 546
Contractual Services 1,330 1,330 1,160 170
Total community development 232,806 232,806 227,807 4,999
Economic Development:
Current:
Personal services 90,227 90,227 90,643 (416)
Supplies 150 150 150
Other services and charges 49,500 59,500 50,854 8,646
Contractual services 400 400 710 (310)
Total economic development 140,277 150,277 142,207 8,070
Planning and zoning commission:
Current:
Personal services 171,139 176,139 172,474 3,665
Supplies 250 250 35 215
Other services and charges 18,350 18,350 13,484 4,866
Contractual services 22,350 22,350 16,545 5,805
Total planning and zoning commission 212,089 217,089 202,638 14,451
Total community development 585,172 600,172 572,652 27,520
Other :
Contingency 75,000 62,500 62,500
Total Expenditures 8,753,053 8,779,053 8,466,071 312,982
Revenue over Expenditures 686,569 541,569 720,339 178,770
Other financing sources (uses):
Transfer out (686,569) (841,569) (741,964) 99,605
Net increase (decrease) in fund balance $ - $ (300,000) (21,625) $ 278,375
Fund Balance - January 1 5,626,805
Fund balance - December 31 $ 5,605,180
64
Wow
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2011
Note 1 BUDGETS
The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles.
The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded
budget appropriations.
Final
Budget
Actual
Actual in
Excess of
Budget
General Fund:
Conservation of natural resources:
Solid waste abatement $ 35,566 $ 37,342 $ (1,776)
65
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN
December 31, 2011
Statement 12
Actuarial UAAL as a
Actuarial Accrued Percentage
Actuarial Value of Liability Unfunded Funded Covered of Covered
Valuation Assets (AAL) AAL Ratio Payroll Payroll
Date (a) (b) (b -a) (a/b) (c) ((b -a) /c)
1/1/2008 $ $ 329,191 $ 329,191 - $ 4,859,980 6.8%
1/1/2011 474,770 474,770 4,953,560 9.6%
66
INEwa
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted
to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds
during the year.
Economic Development Authority - established to account for the receipt and uses of funds for
economic purposes.
Program Recreation - established to account for various self - supporting recreational programs.
Debt Service Funds
The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and
related costs on general long -term debt.
The City's Debt Service Funds account for four types of bonded indebtedness:
General Debt Bonds - are repaid primarily from property taxes.
Improvement Bonds - are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA
leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds - These bonds were issued to finance various improvements and will be repaid
primarily from pledged revenues derived from the constructed assets.
Capital Project Funds
Capital Project Funds account for the acquisition or construction of major capital facilities other than those
financed by Proprietary Funds and Trust Funds. The City maintained the following nonmajor Capital Project
Funds during the year:
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Capital Equipment Revolving Fund - to account for funds held to purchase capital equipment.
Closed Bond Fund - to account for excess funds from matured bond issues.
Street Reconstruction - to account for the financing of future reconstruction of City streets.
Sealcoating - to account for money received from 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.
Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch
Street and Hodgson Road.
Tax Increment Funds - to account for development projects financed with tax increments.
Capital Project Funds (Continued)
Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees.
Municipal State Aid - to account for the collection of assessments on municipal state aid projects.
Office Equipment Revolving Fund - to account for the receipt and use of funds for office equipment
purchases.
Legacy Woods Edge Improvement Fund - the Legacy Woods Edge Improvement fund accounts for
construction costs related to infrastructure improvements in the Legacy Woods Edge development.
Traffic Signal - to account for costs associated with construction of traffic signals in the City.
Permanent Funds
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not
principal, may be used for purposes that support the City's programs. The City maintained the following
nonmajor Permanent Fund during the year.
Foxborough Environment Fund - established to account for the use of funds received for environmental
maintenance and improvements in the Foxborough area.
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2011
Special Revenue Debt Service
Lease Public Project
Economic Special Certificates Revenue Refunding
Development Program Revenue of Bonds Bonds
Authority Recreation Subtotal Indebtedness of 1998A of 1999C
Assets
Cash and investments $ $ 113,836 $ 113,836 $ 129,811 $ - $
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent - 8,059 -
Due from county - - 3,293 -
Special assessments receivable:
Delinquent
Deferred
Due from county - -
Long-term notes receivable 225,000 225,000 - -
Prepaid items - 2,369 2,369 - -
Total assets $ 225,000 $ 116,205 $ 341,205 $ 141,163 $ $
Liabilities and Fund Balance (Deficit)
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governments
Advances from other funds
Deferred revenue
Total liabilities
$ $ - $ - $ - $
3,154 3,154
114 114
3,268 3,268
8,059
8,059
Fund balance (deficit):
Nonspendable 225,000 2,369 227,369 -
Restricted - - 133,104 - -
Committed - 110,568 110,568 - -
Assigned - - - -
Unassigned - - -
Total fund balance (deficit) 225,000 1 12,937 337,937 133,104 - -
Total liabilities and fund balance (deficit) $ 225,000 $ 116,205 $ 341,205 $ 141,163 $ - $
67
Y
Statement 13
Page 1 of 3
Debt Service (Continued)
Improvement Improvement and Tax
Improvement Improvement Refunding Improvement Utility Revenue Improvement Abatement
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds
2002A 2002B 2003A 2003B 2004A 2005B 2006C
$ 228,292 $
56,847
497,652 $ 147,244 $ 67,350 $
$ 324,213 $ 138,965
899 4,978 6,289
- - 275 1,528 2,060
- 2,053 3,249 4,162
106,612 122,328 31,626 171,162
- - 538
$ 285,139 $ 604,264 $ 271,625 $ 103,399 $ $ 506,581 $ 147,314
$
56,847
56,847
$ $
106,612
106,612
124,381
124,381
228,292 497,652 147,244
228,292
$ 285,139
35,774
35,774
67,625
180,302
180,302
326,279
6,289
6,289
141,025
497,652 147,244 67,625 326,279 141,025
$ 604,264 $ 271,625 $ 103,399 $ $ 506,581 $ 147,314
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2011
Debt Service (continued) Capital Projects
Utility CIP Improvement and
Revenue Refunding TIF Utility Revenue Debt Capital
Bonds Bonds Bonds Refunding Bonds Service Improvement
2006D 2006E 2007A 2010 Subtotal Projects
Assets
Cash and investments $ 67,711 $ 759,335 $ 154,320 $ 109,770 $ 2,624,663 $ 946,336
Accounts receivable - - - - - .�
Due from other governmental units - -
Interfund receivable - - - 1,069,505
Taxes receivable:
Delinquent 13,370 - 33,595
Due from county - 4,079 11,235 -
Delinquent tax increment - - - -
Special assessments receivable:
Delinquent 3,542 - 8,158 21,164 - AMR
Deferred 129,516 - 121,307 739,398
Due from county - - - 1,202 1,740 -
Long -term notes receivable - - - -
Prepaid items - - -
Total assets $ 200,769 $ 776,784 $ 154,320 $ 240,437 $ 3,431,795 $ 2,015,841
Liabilities and Fund Balance (Deficit)
Liabilities:
Interfund payable $ $ - $ - $ - $ $
Accounts payable - - -
Salaries payable -
Contracts and retainage payable - -
Due to other governments - -
Advances from other funds - - - - -
Deferred revenue 133,058 13,370 - 129,465 794,157
Total liabilities 133,058 13,370 - 129,465 794,157
Fund balance (deficit):
Nonspendable - - - - -
Restricted 67,711 763,414 154,320 110,972 2,637,638
Committed - - - - - -
Assigned - - 2,015,841
Unassigned - - - - -
Total fund balance (deficit) 67,711 763,414 154,320 110,972 2,637,638 2,015,841
Total liabilities and fund balance (deficit) $ 200,769 $ 776,784 $ 154,320 $ 240,437 $ 3,431,795 $ 2,015,841
69
OMB
MEW
Statement 13
Page 2 of 3
Capital Projects (Continued)
Tax
Capital Closed Surface Birch Street Increment
Equipment Bond Street Water Hodgson Road Financing
Revolving Fund Fund Reconstruction Sealcoating Management Improvement 1 -5
$ 184,259 $ 481,477 $ 587,203 $ 465,169 $ 374,653 $ 15,583 $ 78,255
1,500
939,094
1,229
278
- - 20,659
5,531 131,868 179,193
- - 1,719
$ 184,259 $ 1,427,609 $ 719,071 $ 465,169 $ 577,724 $ 15,583 $ 78,255
$ - $ - $ $ - $ - $
- 1,929 10,438
6,760 131,868
6,760 131,868
18,232
199,852
1,929 210,290 18,232
184,259 1,420,849 587,203 463,240 367,434
15,583
60,023
184,259 1,420,849 587,203 463,240 367,434 15,583 60,023
$ 184,259 $ 1,427,609 $ 719,071 $ 465,169 $ 577,724 $ 15,583 $ 78,255
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2011
Assets
Cash and investments
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from county
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from county
Long -term notes receivable
Prepaid items
Total assets
Liabilities and Fund Balance (Deficit)
Capital Projects (continued)
Tax Tax Office
Increment Increment Equipment Legacy Woods
Financing Financing Dedicated Municipal Revolving Edge
1 -10 1 -11 Parks State Aid Fund Improvement
$ 188,669 $ $ 404 $ 1,439,143 $ 272,023 $ 548,979
$ 188,669 $ $ 404 $ 1,439,143 $ 272,023 $ 548,979
Liabilities:
Interfund payable $ - $ 763,725 $ - $ $ - $
Accounts payable 42 420 - 4,931
Salaries payable - - -
Contracts and retainage payable
Due to other governments - -
Advances from other funds - - 578,641
Deferred revenue - - -
Total liabilities 42 764,145 578,641 4,931
Fund balance (deficit):
Nonspendable
Restricted
Committed - - -
Assigned 188,627 - 1,439,143 267,092 548,979
Unassigned - (764,145) (578,237) - - -
Total fund balance (deficit) 188,627 (764,145) (578,237) 1,439,143 267,092 548,979
Total liabilities and fund balance (deficit) $ 188,669 $ - $ 404 $ 1,439,143 $ 272,023 $ 548,979
71
Statement 13
Page 3 of 3
Permanent
Capital Projects (Continued) Fund
Capital Foxborough
Traffic Projects Environment Total
Signal Subtotal Fund 2011
$ $ 5,582,153 119,881 8,440,533
1,500 1,500
2,008,599 2,008,599
1,229 34,824
278 11,513
20,659 41,823
316,592 1,055,990
1,719 3,459
225,000
2,369
$ 7,932,729 119,881 $ 11,825,610
171,610 935,335 935,335
5,049 41,041 44,195
114
578,641 578,641
338,480 1,132,637
176,659 1,893,497 2,690,922
- 100,000 327,369
- 19,881 2,657,519
- - 110,568
7,558,273 - 7,558,273
(176,659) (1,519,041) - (1,519,041)
(176,659) 6,039,232 119,881 9,134,688
$ 7,932,729 119,881 $ 11,825,610
72
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2011
Special Revenue Debt Service
Lease Public Project
Economic Special Certificates Revenue Refunding
Development Program Revenue of Bonds Bonds
Authority Recreation Subtotal Indebtedness of 1998A of 1999C
Revenue:
General property taxes $ - $ - $ $ 264,457 $ 1,881 $ 1,270
Tax increments -
Intergovernmental - -
Special assessments - 334 199 134
Charges for services - 204,751 204,751 -
Investment earnings - 1,847 1,847 2,760 6,910 3,545
Miscellaneous - - - - 120,000 -
Total revenue - 206,598 206,598 267,551 128,990 4,949
Expenditures:
Current:
General government 395 - 395 -
Public works - - -
Parks, recreation and forestry - 206,474 206,474 -
Conservation of natural resources - -
Community development - -
Capital outlay:
General government - -
Public safety - -
Public works - - -
Debt service:
Principal - 240,000 -
Interest and fiscal charges - 19,695 -
Total expenditures 395 206,474 206,869 259,695
Revenue over (under) expenditures (395) 124 (271) 7,856 128,990 4,949
Other financing sources (uses):
Transfer in 395 - 395
Transfer out - - (616,514) (276,121)
Sale of property - -
Issuance of debt - -
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses) 395 395 (616,514) (276,121)
Net increase (decrease) in fund balance 124 124 7,856 (487,524) (271,172)
Fund balance (deficit) -
Beginning of year 225,000 112,813 337,813 125,248 487,524 271,172
Fund balance (deficit) - December 31 $ 225,000 $ 112,937 $ 337,937 $ 133,104 $ - $
73
Statement 14
Page 1 of 3
Debt Service (Continued)
"' Improvement Improvement and Tax
Improvement Improvement Refunding Improvement Utility Revenue Improvement Abatement
Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds
2002A 2002B 2003A 2003B 2004A 2005B 2006C
INime
WINN
■
temp
$ - $
10,567
2,899
13,466
- $ $ 21,271 $ $ 120,389 $ 188,932
114,075 24,575 17,930 18,327 58,144 313
5,934 881 535 2,870 - 544
120,009 25,456 39,736 21,197 178,533 189,789
25,000 235,000 60,000 30,000
3,697 35,077 23,405 5,950
28,697 270,077 83,405 35,950
(15,231) (150,068) (57,949) 3,786
82,637
425,000 30,000
87,958 103,587
512,958 133,587
21,197 (334,425) 56,202
- 396,012
- (236,385)
- 82,637 - (236,385) 396,012
(15,231) (150,068) 24,688 3,786 (215,188) 61,587 56,202
243,523 647,720 122,556 63,839 215,188 264,692 84,823
$ 228,292 $ 497,652 $ 147,244 $ 67,625 $ - $ 326,279 $ 141,025
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2011
Debt Service (Continued) Capital Projects
Utility CIP Improvement and
Revenue Refunding TIF Utility Revenue Debt Capital
Bonds Bonds Bonds Refunding Bonds Service Improvement
2006D 2006E 2007A 2010 Subtotal Projects
Revenue:
General property taxes $ $ 313,949 $ - $ - $ 912,149 $
Tax increments - - - -
Intergovernmental - - - 89,937
Special assessments 17,504 633 - - 262,735
Charges for services - - - -
Investment earnings - 28 26,906 18,497
Miscellaneous - - 120,000 148,892
Total revenue 17,504 314,582 - 28 1,321,790 257,326
Expenditures:
Current:
General government - 2,370
Public works 192,862
Parks, recreation and forestry - - -
Conservation of natural resources - - - -
Community development - - - -
Capital outlay:
General government -
Public safety - -
Public works - - -
Debt service:
Principal 50,000 305,000 215,000 100,000 1,715,000
Interest and fiscal charges 16,889 111,067 152,394 30,386 590,105
Total expenditures 66,889 416,067 367,394 130,386 2,305,105 195,232
Revenue over (under) expenditures (49,385) (101,485) (367,394) (130,358) (983,315) 62,094
Other financing sources (uses):
Transfer in 66,122 616,514 366,626 236,385 1,764,296
Transfer out - - (1,129,020)
Sale of property -
Issuance of debt -
Discount on bonds issued -
Premium on bonds issued -
Payment made to refunding
bond escrow agent -
Total other financing
sources (uses) 66,122 616,514 366,626 236,385 635,276
Net increase (decrease) in fund balance 16,737 515,029 (768) 106,027 (348,039) 62,094
Fund balance (deficit) -
Beginning of year 50,974 248,385 155,088 4,945 2,985,677 1,953,747
Fund balance (deficit) - December 31 $ 67,711 $ 763,414 $ 154,320 $ 110,972 $ 2,637,638 $ 2,015,841
75
Statement 14
Page 2 of 3
Capital Projects (Continued)
Capital Closed Surface Birch Street Tax Increment
Equipment Bond Street Water Hodgson Road Financing
Revolving Fund Fund Reconstruction Sealcoating Management Improvement 1 -5
MEWS
$ - $ - $ - $ $ $ - $ -
- - 40,663
5,420 25,590 100,747 - -
4,380 14,019 7,265 7,921 4,305 200 773
200 - - - - - -
... 4,580 19,439 32,855 7,921 105,052 200 41,436
w
175,696
256,033
8,974 - - - -
- - 420,389 44,891 - -
- - - - 37,081
431,729 8,974 - 420,389 44,891 37,081
(427,149) 10,465 32,855 (412,468) 60,161 200 4,355
200,000 276,121 16,570 445,000
50,953
120,000
370,953 276,121 16,570 445,000
(56,196) 286,586 49,425 32,532 60,161 200 4,355
240,455 1,134,263 537,778 430,708 307,273 15,383 55,668
$ 184,259 $ 1,420,849 $ 587,203 $ 463,240 $ 367,434 $ 15,583 $ 60,023
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2011
Capital Projects (Continued)
Office
Tax Increment Tax Increment Equipment Legacy Woods
Financing Financing Dedicated Municipal Revolving Edge
1 -10 1 -11 Parks State Aid Fund Improvement
Revenue:
General property taxes $ - $ - $ - $ - $ - $
Tax increments 146,442 57,608 - - -
Intergovernmental - - 631,585 20,000
Special assessments - - -
Charges for services - - -
Investment earnings 1,740 - 724 23,854 3,493 6,875
Miscellaneous - - 8,299 - - -
Total revenue 148,182 57,608 9,023 655,439 3,493 26,875
Expenditures:
Current:
General government:
Public works
Parks, recreation and forestry
Conservation of natural resources - -
Community development 7,814 7,107
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry - - 30,582
Debt service:
Principal
Interest and fiscal charges - 19,766
Total expenditures 7,814 7,107 50,348
Revenue over (under) expenditures 140,368 50,501 (41,325)
655,439
11,543
11,543
(8,050) 26,875
Other financing sources (uses):
Transfer in - 55,000 - 25,000
Transfer out (38,179) (50,000) (467,780)
Sale of property - -
Issuance of debt -
Premium on bonds issued - -
Payment made to refunding
bond escrow agent - -
Total other financing
sources (uses) (38,179) (50,000) 55,000 (467,780) 25,000
Net increase (decrease) in fund balance 102,189 501 13,675 187,659 16,950 26,875
Fund balance (deficit) -
Beginning ofyear 86,438 (764,646) (591,912) 1,251,484 250,142 522,104
Fund balance (deficit) - December 31 $ 188,627 $ (764,145) $ (578,237) $ 1,439,143 $ 267,092 $ 548,979
77
Statement 14
Page 3 of 3
Capital Projects (Continued)
Permanent
Fund
Capital Foxborough
Traffic Projects Environment Total
Signal Subtotal Fund 2011
$ $ 912,149
244,713 244,713
741,522 741,522
131,757 394,492
204,751
94,046 1,505 124,304
157,391 5,700 283,091
1,369,429 7,205 2,905,022
11,344 11,739
170,821 828,963 828,963
206,474
52,002 52,002
11,543
175,696
256,033
30,582
11,543
175,696
256,033
30,582
1,715,000
19,766 609,871
170,821 1,385,929 3,897,903
(170,821) (16,500) 7,205 (992,881)
1,017,691 2,782,382
(555,959) (1,684,979)
50,953 50,953
120,000 120,000
632,685 1,268,356
(170,821) 616,185 7,205 275,475
(5,838) 5,423,047 112,676 8,859,213
(176,659) $ 6,039,232 119,881 9,134,688
78
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2011
Statement 15
2011
Original Final
Budget Budget
Actual
Variance with
Final Budget
Positive
(Negative)
Revenue:
Charges for services:
Recreation Fees $ 171,525 $ 171,525 $ 204,751 $ 33,226
Investment earnings 1,847 1,847
Total revenue 171,525 171,525 206,598 35,073
Expenditures:
Current:
Personal services 86,000 86,000 64,351 21,649
Supplies 50,955 50,955 118,134 (67,179)
Other services and charges 1,000 1,000 395 605
Contractual services 27,150 27,150 23,594 3,556
Capital outlay 4,000 4,000 4,000
Total expenditures 169,105 169,105 206,474 (37,369)
Net increase (decrease) in fund balance $ 2,420 $ 2,420 124 $ (2,296)
Fund balance - January 1 112,813
Fund balance - December 31 $ 112,937
79
WNW
Fiduciary Funds
Agency Fund
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, or other governments. The City maintained the following Agency fund during the year:
Contractor's Deposits — to account for pass - through costs relating to prospective developers.
CITY OF LINO LAKES, MINNESOTA Statement 16
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS
Year Ended December 31, 2011
Balance Balance
January 1, December 31,
2011 Additions Deductions 2011
Assets
Cash and investments $ 753,507 $ 298,768 $ 351,295 $ 700,980
Deposits receivable 750 - 750
Total assets $ 754,257 $ 298,768 $ 352,045 $ 700,980
Liabilities
Deposits payable
$ 754,257 $ 624,684 $ 677,961 $ 700,980
80
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2011
General Obligation Bonds:
2008A Equipment Certificates
2009A Equipment Certificates
2010A Equipment Certificates
2011A Equipment Certificates
G.O. Tax Abatement Bonds, Series 2006C
G.O. Utility Revenue Bonds, Series 2006D
G.O. CIP Refunding Bonds, Series 2006E
G.O. Tax Increment Bonds, Series 2007A
Total General Obligation Bonds
Interest
Rates
Dated
Final
Maturity
Date
4.00% 2/1/08 12/31/2011
3.00% 4/1/2009 12/31/2012
2.00 % -3.00% 4/1/10 12/31/2013
1.00% 2/14/11 12/31/2014
4.00 % -4.30% 8/15/06 2/1/23
4.00 % -4.15% 8/15/06 2/1/17
4.00% 11/1/06 2/1/18
4.00 % - 4.125% 7/15/2007 2/1/2024
Special Assessment Bonds:
G. O. Improvement Bonds of2002A 3.00 % -4.10% 8/1/02 2/1/13
G. O. Improvement Bonds of2002B 3.20 % -5.55% 8/1/02 2/1/13
G. O. Improvement Refunding Bonds of 2003A 2.00 % -4.25% 12/1/03 2/1/19
G. O. Improvement Bonds of 2003B 3.20 % -5.60% 12/1/03 2/1/14
G. O. Improvement and Utility Bonds of2004A 1.90 % -4.45% 11/15/04 2/1/20
G. O. Improvement Bonds of 2005A 4.35 % -5.15% 11/1/05 2/1/21
G. O. Improvement Refunding Bonds of 2005B 3.75 % -5.00% 11/1/05 2/1/15
G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A 2.00 % -3.00% 7/9/10 2/1/20
Total General Improvement Bonds with special assessments pledged
Revenue Bonds:
G. O. Water Utility Revenue Refunding Bonds of 2006F 3.55 % - 3.625% 11/1/06 2/1/12
Total Revenue Bonds
Other Long -Term Debt:
Note Payable - Anoka County - 2009A
Total City indebtedness
81
4.00 % -3.70% 8/01/09 8/1/24
IMMO
NIMIV
WNW
Exhibit 1
Prior Years
Original
Issue
Payments
Payable
1 /1 /11
Issued
2011
Payments
Payable
12/31/11
Principal Interest
Due Due
In 2012 In 2012
$ 209,000 $ 135,000 $ 74,000 $ $ 74,000 $ - $ - $
336,000 104,000 232,000 - 114,000 118,000 118,000
336,000 - 170,000 - 52,000 118,000 58,000
170,000 - 120,000 120,000 39,000
2,460,000 - 2,460,000 - 30,000 2,430,000 85,000
570,000 150,000 420,000 50,000 370,000 55,000
2,990,000 80,000 2,910,000 - 305,000 2,605,000 320,000
4,215,000 340,000 3,875,000 - 215,000 3,660,000 265,000
11,286,000 809,000 10,141,000 120,000 840,000 9,421,000 940,000
645,000 560,000
2,110,000 1,360,000
2,090,000 1,485,000
250,000 125,000
1,330,000 1,330,000
5,550,000 1,055,000
3,755,000 1,640,000
1,000,000 -
16,730,000 7,555,000
1,740,000
1,740,000
85,000
750,000
605,000
125,000
4,495,000
2,115,000
1,000,000
9,175,000
945,000 795,000
945,000 795,000
25,000
235,000
60,000
30,000
315,000
425,000
100,000
1,190,000
3,540
3,540
2,300
100,520
14,023
97,800
142,026
363,749
60,000 30,000 1,829
515,000 250,000 21,395
545,000 60,000 20,538
95,000 30,000 4,390
4,180,000 330,000 202,985
1,690,000 420,000 71,375
900,000 85,000 23,400
7,985,000 1,205,000 345,912
390,000 405,000 405,000 7,341
390,000 405,000 405,000 7,341
4,260,000 - 4,260,000 565,000 3,695,000 98,267
$ 34,016,000 $ 9,309,000 $ 24,371,000 $ 120,000 $ 2,985,000 $ 21,506,000 $ 2,550,000 $ 815,269
82
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2011
Public
Lease Project G. O. G. O. G. O.
Year of Equipment Equipment Equipment Revenue Refunding Improvement Improvement Improvement
Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Bonds Bonds
Collection of 2009A of 2010A of 2011A of 1998A 1999C of 2002A of 2003B of 2005A
2011/2012 $ 127,617 $ 64,617 $ 43,365 $
2012/2013 64,890 42,851
2013/2014 - 43,481
2014/2015
2015/2016 -
2016/2017
2017/2018 -
2018/2019 -
2019/2020 -
2020/2021
2021/2022 -
2022/2023 -
2023/2024 -
$ 8,385 $ 21,917 $ 566,722
20,248 569,609
23,781 566,197
567,247
572,497
571,184
574,072
574,907
579,639
$ 127,617 $ 129,507 $ 129,697 $ $ $ 8,385 $ 65,946 $ 5,142,074
83
Exhibit 2
G.O. G.O. G.O. G.O.
Improvement Tax CIP G. O. Improvement and
Refunding Abatement Refunding TIF Utility Revenue
Bonds Bonds Bonds Bonds Refunding Bonds
of 2005B 2006C 2006E 2007A 2010A
Total
$ 512,925 $ 235,011 $ 468,720 $ 432,943 $ 114,713 $ 2,596,935
490,613 245,511 459,060 442,813 123,427 2,459,022
463,050 255,381 443,940 493,843 121,433 2,411,106
- 264,458 449,820 495,103 124,688 1,901,316
278,140 460,110 500,983 121,537 1,933,267
285,411 464,100 506,023 118,387 1,945,105
_ 297,263 - 268,723 120,488 1,260,546
313,472 - 271,243 117,180 1,276,802
323,316 - 278,593 124,372 1,305,920
337,517 285,313 - 622,830
- 350,447 291,403 - 641,850
AMP
- - 301,855 301,855
- 306,127 306,127
$ 1,466,588 $ 3,185,927 $ 2,745,750 $ 4,874,965 $ 1,086,225 $ 18,962,681
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2011
G. O.
G.O. G.O. Improvement G.O.
Equipment Equipment Equipment Improvement Improvement Refunding Improvement
Certificates Certificates Certificates Bonds Bonds Bonds Bonds
2009A 2010A 2011A of 2002A of 2002B 2003A 2003B
Bonds payable $ 118,000 $ 118,000 $ 120,000 $ 60,000 $ 515,000 $ 545,000 $ 95,000
Future interest payable 3,540 5,340 3,520 2,445 28,749 94,021 8,148
Totals $ 121,540 $ 123,340 $ 123,520 $ 62,445 $ 543,749 $ 639,021 $ 103,148
Payments to maturity:
2012 $ 121,540 $ 61,540 $ 41,300 $ 31,830 $ 271,395 $ 80,537 $ 34,390
2013 61,800 40,810 30,615 272,354 78,438 32,778
2014 - 41,410 - 81,088 35,980
2015 - 78,488 -
2016 - 80,788
2017 77,988
2018 - 79,994 -
2019 - - 81,700 -
2020
2021
2022 - - -
2023
2024
$ 121,540 $ 123,340 $ 123,520 $ 62,445 $ 543,749 $ 639,021 $ 103,148
85
Exhibit 3
G. 0. G.O. G.O. G.O. G.O.
G. O. Improvement Tax Utility CIP G.O. Improvement and
Improvement Refunding Abatement Revenue Refunding TIF Utility Revenue
Bonds Bonds Bonds Bonds Bonds Bonds Refunding Bonds
2005A 2005B 2006C 2006D 2006E 2007A 2010A
$ 4,180,000 $ 1,690,000 $ 2,430,000 $ 370,000 $ 2,605,000 $ 3,660,000 $ 900,000
-
1,152,838 166,375 740,332 47,575 382,100 909,155 122,375
$ 5,332,838 $ 1,856,375 $ 3,170,332 $ 417,575 $ 2,987,100 $ 4,569,155 $ 1,022,375
MEW
$ 532,986 $ 491,375 $ 185,520 $ 69,022 $ 417,800 $ 407,026 $ 108,400
- 531,111 477,875 221,320 71,722 439,300 416,026 116,600
533,361 456,625 231,020 69,292 430,000 463,426 114,700
529,736 430,500 240,043 66,832 415,600 464,326 117,250
530,236 248,381 69,254 420,800 469,526 114,250
- 534,611 260,858 71,453 430,100 473,926 111,250
532,861 267,464 433,500 252,126 113,175
534,633 278,327 - 254,326 110,025
534,784 293,233 - 261,026 116,725
538,519 302,183 267,126 -
- 315,103 - 272,504 -
326,880 - 282,016 -
- - 285,775
NNW
$ 5,332,838 $ 1,856,375 $ 3,170,332 $ 417,575 $ 2,987,100 $ 4,569,155 $ 1,022,375
CITY OF LINO LAKES, MINI
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
December 31, 2011
Exhibit 3
G.O. Water
Utility Note
Revenue Payable -
Refunding Anoka
Bonds County -
of 2006F 2009A Totals
Bonds payable $ 405,000 $ 3,695,000 $ 21,506,000
Future interest payable 7,341 1,267,407 4,941,261
Totals $ 412,341 $ 4,962,407 $ 26,447,261
Payments to maturity:
2012 $ 412,341 $ 98,267 $ 3,365,269
2013 132,558 2,923,307
2014 132,558 2,589,460
2015 495,558 2,838,333
2016 501,158 2,434,393
2017 506,158 2,466,344
2018 - 510,557 2,189,677
2019 - 518,408 1,777,419
2020 - 520,282 1,726,050
2021 526,092 1,633,920
2022 535,963 1,123,570
2023 484,848 1,093,744
2024 - 285,775
$ 412,341 $ 4,962,407 $ 26,447,261
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2011
Exhibit 4
Coverage Amount
General Liability:
Bodily Injury/Property Damage $ 1,500,000
Personal Injury/Police Professional Liability 1,500,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
MOM
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 27,647,677
Faithful Performance Blanket Bond 500,000
= Storage Tank Liability 250,000
Rented/Leased Equipment ($1,000 Deductible) 500,000
twomo
Public Official and Employee Liability ($1,000 Deductible each occurrence) 1,500,000
Automotive:
Bodily injury and property damage 1,500,000
Comprehensive and Collision Actual Cash Value
Uninsured motorists 200,000
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible) 250,000
88
CITY OF LINO LAKES, MINNESOTA Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Tax Capacity Tax Capacity
Values Values
2010/2011 2009/2010
Taxable valuations:
Total $ 19,783,539 $ 22,070,825
Fiscal disparities:
Distribution 2,932,332 2,833,602
Contribution (1,576,375) (1,697,800)
Less: Captured Tax Increment Value (251,890) (327,659)
$ 20,887,606 $ 22,878,968
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $ 7,719,240 37.425 $ 7,816,232 34.086
Bond and Interest 940,760 4.616 879,182 3.819
Totals
$ 8,660,000 42.041 $ 8,695,414 37.905
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
89
III.
STATISTICAL
SECTION
Statistical Section (Unaudited)
— This part of the Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about overall financial health. The following are the
categories of the various schedules that are included in this section.
IMP
Financial Trends Tables 1 -4
These schedules contain trend information to help the reader understand how the City's financial
performance and well -being have changed over time.
Revenue Capacity Tables 5 -8
These schedules contain information to help the reader assess the City's most significant revenue
sources.
Debt Capacity Tables 9 -11
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 12 -13
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating information Tables 14 -16
These schedules contain service and infrastructure data to help the reader understand how the
information the City's financial report relates to the services the City provides and the activities it
performs.
CITY OF LINO LAKES, MINNESOTA
NET ASSETS BY COMPONENT,
LAST NINE FISCAL YEARS
... (accrual basis of accounting)
r..
Uwe
Table 1
Fiscal Year
2003 2004 2005 2006 2007 2008 2009 2010 2011
Governmental activities
Invested in capital assets, net of related debt $ 25,993,905 $ 28,807,262 $ 25,460,528 $ 29,549,174 $ 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217 $ 24,600,103
Restricted 3,568,555 3,045,052 12,050,484 10,704,508 10.324,467 9,870,676 9,414,474 8,428,025 11,598,803
Unrestricted 15,668.226 16,249,541 13,577,071 14,516,466 6,339,528 10,790,359 15,926,322 16,738,885 13,463,210
Total governmental activities net assets $ 45,230,686 $ 48.101,855 $ 51,088,083 $ 54,770,148 $ 53,453,148 $ 49,133,900 $ 48,741,249 $ 47,729,127 $ 49,662,116
Business -type activities
Invested in capital assets, net of related debt $ 25,537,383 $ 26,713,498 $ 28,342,832 $ 29,485,942 $ 29,836,775 $ 30,372,670 $ 30,071,840 $ 29,648,461 $ 29,216,866
Unrestricted 3,778,936 4,744,875 5,572,338 6,880,547 8,063,983 9,028,778 10,112,207 10,728,626 11,201,362
Total business -type activities net assets $ 29,316,319 $ 31,458,373 $ 33,915,170 $ 36,366,489 $ 37,900,758 $ 39,401,448 $ 40,184,047 $ 40,377,087 $ 40,418,228
Primary Government
Invested in capital assets, net of related debt $ 51,531,288 $ 55,520,760 $ 53,803,360 $ 59,035,116 $ 66,625,928 $ 58,845,535 $ 53,472,293 $ 52,210,678 $ 53,816,969
Restricted 3,568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803
Unrestricted 19,447,162 20.994,416 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 27,467,511 24,664,572
Total primary govemment net assets $ 74,547,005 _ $ 79,560,228 $ 85,003,253 $ 91,136,637 $ 91,353,906 $ 88,535,348 $ 88,925,296 $ 88,106,214 $ 90,080,344
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
90
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST NINE FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006 2007 2008 2009
Expenses
Governmental activities:
General Government $ 6,092,587 $ 2,524,387 $ 2,941.279 $ 2,886,825 $ 2,197,672 $ 2,323,358 S 2,201,439
Public Safety 2,648,944 2,799,294 3,091,174 3,516,376 3,730,504 4,051,162 4,299,366
Public Services 1,162,412 7,254,708 9,187,436 3,871,968 10,580,560 7,608,626 4,027,553
Parks, Recreation and Forestry 932,113 1,196,096 799,335 1,162,458 1,357,133 919,948 1,313,560
Conservation of Natural Resources 111,946 116,869 150,092 156,592 183,420 184,624 215,607
Community Development 859,110 420,874 383,211 691,880 1,122,802 1,114,158 1,005,997
Interest on long -term debt 815,681 748,832 797,341 926,021 980,849 1,045,781 928,668
Total governmental activities expenses $ 12,622,793 $ 15,061,060 $ 17,349,868 $ 13,212,120 $ 20,152,940 $ 17,247,657 $ 13,992,190
Business -type activities:
Water $ 968,458 $ 914,039 $ 876,592 $ 976,575 $ 1,170,902 8 1,020,770 $ 1,089,569
Sewer 1,046,170 1,130,994 1,217,825 1,228,123 1,298,963 1,287,943 1,432,107
Total business -type activities 2,014,628 2,045,033 2,094,417 2,204,698 2,469,865 2,308,713 2,521,676
Total primary government expenses $ 14,637,421 $ 17,106,093 0 19,444,285 $ 15,416,818 $ 22,622,805 5 19,556,370 $ 16,513,866
Program Revenues
Governmental activities:
Charges for services:
General Government 102,520 $ 122,861 $ 111,480 88,924 5 91,646 $ 79,844 $ 101,741
Public Safety 964,034 1,049,858 998,210 844,514 1,078,995 1,296,418 725,747
Public Works 493,312 454,191 434,087 420,741 389,489 413,040 428,174
Parks, Recreation and Forestry 250,816 242,857 196,951 188,439 185,803 187,285 165,994
Conservation of Natural Resources 5,369 11,763 4,873 6,854 4,559 3,660 3,858
Community Development 28,210 28,952 26,985 20,530 15,839 11.623 8,667
Operating grants and contributions 633,691 677,079 761,924 643,749 851,791 693,065 682,797
Capital grants and contributions 4,536,567 7,515,238 10,128,024 5,963,204 7,189,346 1.094,789 1,357,015
Total governmental activities program revenues S 7,014,519 5 10,102,799 $ 12,662,534 $ 8,176,955 5 9,807,468 0 3,779,724 S 3,473,993
Business -type activities:
Charges for services:
Water S 1,064,326 S 979,075 $ 1,031,175 $ 1,175,172 S 1,215,763 5 1,058,493 S 1,365,817
Sewer 1,216,589 1,280,652 1,361,759 1,391,702 1,446,112 1,472,093 1,502,164
Operating grants and contributions 62,710
Capital grants and contributions 2,719,081 1,589,419 1,733,775 1,535,631 80,750 10,117 8,769
Total business -type activities program revenues 4,999,996 3,849,146 4,126,709 4,102,505 2,742,625 2,540,703 2,939.460
Total primary government program revenues $ 12,014,515 0 13,951,945 $ 16,789,243 S 12,279,460 $ 12,550,093 S 6,320,427 S 6,413,453
Net (Expense) /Revenue
Governmental activities
Business -type activities
Total primary govemment net expense
$ (5,608.274) $ (4,958,261) $ (4,687,334) $ (5,035,165) $ (10,345.472) S (13,467,933) $ (10,518,197)
2,985,368 1,804,113 2,032 _92 1,897,807 272,760 231,990 417,784
$ (2,622,906) $ (3,154,148) $ (2,655,042) $ (3,137,358) 5 (10,072,712) $ (13,235,943) S (10,100,413)
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes 0 6,847,470 5 6,630,279 $ 7,383,415 $ 8,269,944 $ 8,785,280 $ 9,424,697 5 9,808,324
Unrestricted grants and contributions - - - 256,877 129,607 11,321
Unrestricted investment earnings 194,220 221,302 433,387 713,794 864,578 576,071 429,325
Gain on sale of capital assets 1,280,957 33,217 17,424 12,512 12,644
Miscellaneous - 160,955
Transfers (301,355) (303,108) (304,195) (299,725) (895,687) (994,202) (136,068)
Total governmental activities $ 6,740,335 $ 7,829,430 $ 7,673,562 5 8,717,230 $ 9,028,472 $ 9,148,685 $ 10,125,546
Business -type activities:
Unrestricted investment earnings $ 20,866 $ 34,833 $ 120,310 $ 253,787 $ 365,822 S 274,498 5 228,747
Transfers 301,355 303,108 304,195 299,725 895,687 994,202 136,068
Total business -type activities 322,221 337,941 424,505 553,512 1,261,509 1,268,700 364,815
Total primary govemment $ 7,062,556 S 8,167,371 5 8,098,067 $ 9,270,742 S 10,289,981 $ 10,417,385 $ 10,490,361
Change in Net Assets
Governmental activities
Business -type activities
Total primary government change in net assets
S 1,132,061 S 2,871,169 $ 2,986.228 S 3,682,065 0 (1,317,000) $ (4,319,248) S (392,651)
3.307.589 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690 782,599
$ 4,439,650 S 5,013,223 $ 5,443.025 S 6,133,384 S 217,269 $ (2.818,558) 5 389,948
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
91
MINN
Table 2
2010 2011
$ 1,987,415 $ 1,990,137
3,971,261 4,019,101
3,968,063 8,110,979
1,124,907 1,218,472
197,571 139,544
1,105,254 617,747
1,064,172 927,535
$ 13,418,643 $ 17,023,515
$ 1,045,901 $ 966,643
1,466,847 1,638,063
2,512,748 2,604,706
0 15,931,391 S 19,628,221
$ 98,403 $ 103,687
691,005 713,985
427,223 382,287
177,984 210,976
4,153 4,392
14,148 5,138
617,450 593,798
1,388,984 7,347,613
sm. $ 3,419,350 $ 9,361,876
$ 1,087,013 $ 1,090,104
1,498,218 1,494,188
8,709 1,462
2,593,940 2,585,754
$
6.013,290 $ 11,947,630
$ (9,999,293) $ (7,661,639)
81,192 (18,952)
$ (9,918,101) $ (7,680,591)
$ 8,764,183 $ 8,768,805
4,389 4,072
225,677 251,250
37,579
(7,078) 66,122
8 8,987,171 $ 9,127,828
$ 104,770 $ 126,215
7,078 (66,122)
111,848 60,093
$ 9.099,019 $ 9,187,921
$ (1,012,122) $ 1,466,189
193,040 41,141
$ (819,082) $ 1,507.330
92
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
General Fund
Reserved
Unreserved
Nonspendable
Unassigned
Total general fund
All Other Governmental Funds
Reserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Unreserved reported in:
Special Revenue Funds
Capital Projects Funds
Debt Service Funds
Permanent Funds
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total all other governmental funds
Total all funds
Table 3
Fiscal Year
2002
$ 120,727
4,232,291
$ 4,353,018
$ 2,430
1,946,617
1,818,859
25,200
6,317,650
(612,943)
2003
$ 133,921
4,775,969
$ 4,909,890
$ 1,759
1,946,618
2,482,184
32,704
5,406,014
675,409
2004
$ 142,492
5,067,973
2005
$ 148,652
5,300,156
$ 5,210,465 $ 5,448,808
$ 1,718
957,112
2,556,300
57,616
6,241,408
452,972
$ 9,497,813 $ 10,544,688 $ 10,267,126
$ 13,850,831 $ 15,454,578 $ 15,477,591
93
$ 1,763
957,112
7,371,359
100,000
74,716
7,348,375
853
$ 15,854,178
$ 21,302,986
Table 3 (Continued)
Fiscal Year
2006 2007 2008 2009 2010 2011
$ 153,009
5,337,225
$ 181,759
5,356,272
$ 190,825
5,393,316
$ 196,568
5,191,396
$ 5,490,234 $ 5,538,031 $ 5,584,141 $ 5,387,964
$ 1,813
957,112
3,992,952
100,000
82,385
5,525,508
5,378
$ 226,921
885,825
3,925,402
100,000
100,955
8,395,827
17,023
$ 226,973
812,400
3,405,272
100,000
106,573
5,927,411
22,224
$ 227,176
736,772
3,457,349
100,000
93,956
11,611,835
(558,443)
15,824
$ 10,665,148 $ 13,651,953 $ 10,600,853 $ 15,684,469
$ 181,471 $
5,445,334
165,079
5,440,101
$ 5,626,805 $ 5,605,180
$ 227,342
658,875
2,986,102
100,000
110,471
12,537,841
(1,093,765)
12,676
906,010
2,658,010
110,568
10,808,268
(3,154,496)
$ 15,539,542 $ 11,328,360
$ 16,155,382 $ 19,189,984 $ 16,184,994 $ 21,072,433 $ 21,166,347 $ 16,933,540
94
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Revenues
Property Taxes
Licenses and Permits
Intergovernmental
Special Assessments
Charges for Services
Fines and Forfeits
Investment Earnings
Miscellaneous
Total revenues
Expenditures
Current:
General Government
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Capital outlay
Debt Service
Principal
Interest and fiscal charges
Construction/Acquisition
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Sale of Property
Proceeds from Issuance of Debt
Premium on Bonds Issued
Discount on Bonds Issued
Payment to Refunded Bond Escrow Agent
Loan Payable Reapportionment
Transfer In
Transfer Out
Total other financing sources (uses)
Net change in fund balances
Table 4
Fiscal Year
2002
$ 6,243,200
913,498
858,816
2,050,015
611,414
100,393
447,182
710,513
11,935,031
2003
$ 6,687,516
766,524
2,011,285
2,812,386
658,370
97,223
194,049
677,823
13,905,176
2004
2005
2006
$ 6,523,938 $ 7,230,287 $ 8,103,263
867,909 812,172 581,582
2,419,531 1,808,111 1,818,519
1,587,510 1,769,821 2,901,100
639,565 601,548 687,551
106,053 100,980 101,518
221,303 433,385 713,795
782,179 948,009 716,692
13,147,988 13,704,313 15,624,020
2,893,683 5,808,015 2,261,908 2,701,731 2,614,303
2,463,004 2,609,171 2,798,013 3,099,032 3,314,159
1,245,451 1,770,649 5,126,578 7,071,322 7,755,727
952,039 969,597 954,945 1,111,301 1,076,727
111,880 114,580 115,631 140,334 143,653
- - - - 683,036
1,057,099 622,218 515,287 464,553 835,770
2,851,332 1,684,450 1,960,000 2,016,000 2,155,000
1,030,395 865,638 798,405 838,950 1,011,157
1,833,592 229,321 - - -
14,43 8,475 14,673,639 14,530,767 17,443,223 19,589,532
(2,503,444) (768,463) (1,382,779) (3,738,910) (3,965,512)
2,878,201
851,472
(1,155,547)
2,574,126
2,673,565
1,120,223
(1,421,578)
2,372,210
$ 70,682 $ 1,603,747
Debt service as a percentage of
noncapital expenditures 33.6%
95
18.4%
1,280,957 280,269 28,818
1,604,000 9,412,000 6,327,000
176,231 450
(6,057) - (13,635)
(1,170,000) - (7,225,000)
5,283,306 2,651,469 5,811,452
(5,586,414) (2,955,664) (6,111,177)
1,405,792 9,564,305 (1,182,092)
$ 23,013 $ 5,825,395 $ (5,147,604)
19.7%
16.8% 16.9%
Table 4 (Continued)
Fiscal Year
2007
$ 8,529,846
... 694,435
6,143,689
1,961,253
753,698
•- 139,932
864,578
889,901
19,977,332
■
No.
WIN
2008
$ 9,095,085
802,135
1,004,476
950,188
872,534
133,531
576,071
516,415
13,950,435
2009
2010
2011
$ 9,561,570 $ 8,647,488 $ 8,655,971
307,714 330,138 322,030
1,259,016 1,176,863 1,331,914
968,995 851,270 904,522
778,163 780,044 812,604
111,807 127,203 154,020
429,325 225,677 251,244
513,306 502,992 460,710
13,929,896 12,641,675 12,893,015
1,953,960 2,058,267 1,918,246 1,730,390 1,773,515
3,513,460 3,806,389 4,122,352 3,798,106 3,791,329
8,446,911 5,542,308 1,965,640 1,902,411 2,192,732
1,103,021 1,033,260 1,106,006 945,821 1,059,191
183,346 183,024 209,466 185,232 134,122
1,107,328 1,113,232 1,005,095 1,098,682 624,286
2,008,073 585,875 501,806 282,938 4,209,593
1,973,000 1,749,000 1,908,000 1,866,000 2,030,000
937,895 1,074,052 994,809 1,042,883 983,129
21,226,994 17,145,407 13, 731,420 12,852,463 16,797,897
(1,249,662) (3,194,972) 198,476 (210,788) (3,904,882)
54,037
4,375,000
(25,798)
2,900,249
(3,019,224)
4,284,264
13,750 35,700
209,000 4,596,000
11,141
4,763,391
(4,796,159)
189,982
1,413,985
(1,367,863)
4,688,963
$ 3,034,602 $ (3,004,990) $ 4,887,439
15.1%
27.6%
22.7%
20,600
1,170,000
10,980
(965,000)
1,195,747
(1,127,625)
304,702
$ 93,914
50,953
120,000
(565,000)
2,971,715
(2,905,593)
(327,925)
$ (4,232,807)
23.7% 18.6%
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Payable
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Residential
Property
$ 9,179,811
10,649,345
12,252,347
14,055,076
15,825,619
17,605,080
18,382,645
18,919,087
17,978,917
16,214,698
Commercial/
Industrial
Property
$ 1,202,560
1,487,554
1,982,146
2,290,829
2,740,583
3,047,965
3,431,107
4,002,349
3,800,004
3,223,901
Source: Anoka County, Minnesota Assessors' Office
Personal
Property
$ 246,594
251,016
259,194
274,956
271,665
288,290
279,102
275,496
291,904
303,964
97
Total Taxable
Assessed
Value
Table 5
Total Direct
Tax Rate
$ 10,628,965 $
12,387,915
14,493,687
16,620,861
18,837,867
20,941,335
22,092,854
23,196,932
22,070,825
19,742,563
53.08
47.60
42.29
42.22
41.40
38.99
38.97
38.73
37.91
42.04
CITY OF LINO LAKES, MINNESOTA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
City Direct Rate Overlapping Rates
Table 6
General Centennial Total Direct
Obligation School Other and
yam Debt Redevelopment Total District Anoka Taxing Total Overlapping
Fiscal Year Basic Rate Service Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate
2002 $ 43.940 $ 9.144 $ 53.084 $ 37.828 $ 37.976 $ 5.913 $ 81.717 $ 134.801
2003 40.268 7.335 47.603 37.467 37.714 7.050 82.231 129.834
2004 36.302 5.985 42.287 36.649 35.221 6.373 78.243 120.530
2005 36.838 5.385 42.223 37.486 33.080 6.696 77.262 119.485
"' 2006 36.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226
2007 34.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358
2008 34.560 4.407 38.967 35.258 31.078 6.956 73.292 112.259
2009 34.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015
2010 34.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258
2011 37.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966
UMW
OWN
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
98
WNW
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
2011 2002
Table 7
Percentage Percentage
of Total of Total
City City
Taxable Taxable Taxable Taxable
Net Tax Net Tax Net Tax Net Tax
Taxpayer Capacity Rank Capacity Capacity Rank Capacity
Target Corporation $ 241,894 1 1.22 % $ - - %
_ Lino Lakes Realty LLC 227,648 2 1.15 - -
Xcel Energy 152,398 3 0.77 129,316 1 0.99
Moline Concrete Products 140,306 4 0.71 85,888 4 0.66
Kohl's Department Store 130,194 5 0.66 - -
Taylor Corporation 111,778 6 0.57 96,938 2 0.74
Gargaro Properties LLC 97,920 7 0.49
EOC Lino Lakes LLC 96,246 8 0.49
Marmon/Keystone Corp 89,250 9 0.45
Royal Oaks Realty Inc 79,789 10 0.40 - -
Lino Lakes Business Center - 93,570 3 0.72
Individual - 72,200 5 0.55
F &G Incorporated 62,078 6 0.48
Anoka Electric Cooperative - 41,040 7 0.32
�- Minnegasco, Inc. - 40,446 8 0.31
Northern Development LLC 39,958 9 0.30
DJT Properties, LLC 29536 10 0.23
Total
Source: Anoka County
Uwe
Wow
$ 1,367,423 6.91 %
99
$ 690,970 5.30 %
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
Taxes Levied for the Fiscal Year
Table 8
Collected within the
Fiscal Year of Levy
Percentage
Fiscal Operating Debt Total Tax of
Year Tax Levy Tax Levy Levy Amount Levy
2002 $ 4,885,509 $ 1,016,649 $ 5,902,158 $ 5,847,692 99.1%
2003 5,180,932 943,689 6,124,621 6,062,273 99.0%
2004 5,623,542 927,078 6,550,620 6,145,419 93.8%
2005 6,342,211 927,091 7,269,302 6,881,838 94.7%
2006 7,042,626 934,281 7,976,907 7,594,019 95.2%
2007 7,558,995 897,333 8,456,328 8,324,180 98.4%
2008 7,973,236 893,720 8,866,956 8,581,974 96.8%
2009 8,295,172 949,166 9,244,338 8,982,756 97.2%
2010 7,816,232 879,182 8,695,414 8,400,439 96.6%
2011 7,719,240 940,760 8,660,000 8,486,845 98.0%
Notes:
Current year levies and collections include State levy related credits (HACA and Market Value Credit).
Does not include tax increment levies and collections.
100
Table 8 (Continued)
Total Collections to Date
— Collections in Percentage Outstanding Percentage
Subsequent of Delinquent of Levy
Years Amount Levy Taxes Outstanding
$ 56,678 $ 5,904,370 100.0% $
87,237 6,149,510 100.0%
48,417 6,193,836 100.0%
56,188 6,938,026 95.4%
61,568 7,655,587 96.0%
101,847 8,426,027 99.6%
108,474 8,690,448 98.0%
106,254 9,089,010 98.3%
8,400,439 96.6%
8,486,845 98.0%
356,784
331,276
321,320
30,301
176,508
155,328
294,975
173,155
0.0%
0.0%
5.4%
4.6%
4.0%
0.4%
2.0%
1.7%
3.4%
2.0%
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Governmental Activities
General
Obligation
Bonds
$ 6,244,450
6,030,000
5,764,000
5,335,000
7,177,000
11,569,000
11,184,000
10,712,000
10,141,000
9,421,000
Special
Assessments
Payable
Other
Long -Term
Debt
$ 11,640,000 $
12,840,000
11,580,000
19,405,000
13,940,000
12,520,000
11,365,000
10,265,000
9,175,000
7,985,000
4,260,000
4,260,000
3,695,000
Business -Type
Activities
General
Obligation
Revenue
Bonds
$ 3,220,000
2,970,000
2,705,000
2,425,000
4,410,000
1,855,000
1,530,000
1,170,000
795,000
405,000
Notes:
Details regarding the District's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
102
Table 9
Total
Primary
Government
$ 21,104,450
21, 840,000
20,049,000
27,165,000
25,527,000
25,944,000
24,079,000
26,407,000
24,371,000
21,506,000
Less: Amounts
Available in Debt
Service Funds
Table 9 (Continued)
Percentage Percentage
Net of Assessed of Personal Per
Bonded Debt Market Value Income Capita
$ 1,818,859 $ 19,285,591
2,482,184 19,357,816
2,556,300 17,492,700
7,371,359 19,793,641
3,992,952 21,534,048
3,925,402 22,018,598
3,405,272 20,673,728
3,457,349 22,949,651
2,986,102 21,384,898
2,638,129 18,867,871
0.60 3.57 $ 1,224
0.48 3.38 1,113
0.40 2.91 975
0.35 3.09 1,078
0.41 3.13 1,150
0.60 3.13 1,118
0.55 2.77 1,048
0.50 N/A 1,156
0.48 N/A 1,070
0.44 N/A 929
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2011
Overlapping:
Anoka County
ISD 12
ISD 624
ISD 831
Metropolitan Council
Anoka County Railroad Authority
Total Overlapping
City of Lino Lakes Direct Debt
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
$ 150,438,506 6.6% $ 9,962,720
82,525,000 48.0% 39,609,047
108,130,000 3.5% 3,806,186
32,920,000 7.7% 2,544,506
213,645,000 0.6% 1,330,641
29,285,000 6.6% 1,939,385
59,192,485
$ 21,506,000 100% 21,506,000
Total Direct and Overlapping Debt: $ 80,698,485
Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long -term debt,
the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply
that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
Now
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
104
CITY OF LINO LAKES, MINNESOTA
Legal Debt Margin Information
Last Ten Fiscal Years
Table 11
Fiscal Year
2002 2003 2004 2005
Debt limit $ 20,688,642 $ 25,024,436 $ 28,616,070 $ 30,698,674
Total net debt applicable to limit 5,479,450 5,350,000 5,169,000 4,845,000
Legal debt margin $ 15,209,192 $ 19,674,436 $ 23,447,070 $ 25,853,674
Total net debt applicable to the limit
as a percentage of debt limit 26.49% 21.38% 18.06% 15.78%
105
INN It
Mew
Table 11
Legal Debt Margin Calculation for Fiscal Year 2011
Market value $ 1,804,121,500
Debt limit (3% of market value) 54,123,645
Debt applicable to limit 2,961,000_
Legal debt margin $ 51,162,645
Fiscal Year
2006 2007 2008 2009 2010 2011
$ 34,686,356 $ 38,556,150 $ 60,658,830 $ 64,036,746 $ 60,056,688 $ 54,123,645
4,332,000 4,039,000 3,804,000 3,642,000 3,386,000 2,961,000
$ 30,354,356 $ 34,517,150 $ 56,854,830 $ 60,394,746 $ 56,670,688 $ 51,162,645
12.49% 10.48% 6.27% 5.69% 5.64% 5.47%
106
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Table 12
(2)
Personal Per
Income Capita (3) (4)
Fiscal (1) (thousands Personal School Unemployment
Year Population of dollars) Income Enrollment Rate
2002 17,942 $ 572,099 $ 31,886 6,985 4.3
2003 18,368 600,266 32,680 6,992 5.0
2004 18,725 640,170 34,188 6,956 4.6
2005 19,698 686,968 34,875 6,934 3.8
2006 19,736 703,983 35,670 6,986 4.1
2007 19,851 745,901 37,575 6,874 4.8
2008 19,987 774,376 38,744 6,754 6.9
2009 20,305 N/A N/A 6,722 7.8
2010 20,400 N/A N/A 6,621 7.1
2011 20,300 N/A N/A 6,426 5.9
Source:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2011 which is
city estimate
(2) Information from Bureau of Economic Analysis Report - Anoka County statistics used as local
information is unavailable
(3) Information from ISD 12 Website
(4) Information from MN Department of Employment and Economic Development - Anoka County statistics
used as local information is unavailable
Note: Information not available is marked N/A
107
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
2011 2002
Table 13
(1) (1)
Percentage Percentage
of Total of Total
Employer Employees Rank Employment Employees Rank Employment
State of Minnesota Corrections 432 1 N/A % 600 1 N/A %
ISD 12 - Centennial Schools 362 2 N/A - N/A
Target Corporation 260 3 N/A - N/A
Curtis 1000 130 4 N/A - - N/A
Kohls 121 5 N/A 160 3 N/A
Molin Concrete Products 120 6 N/A 135 5 N/A
YMCA 120 7 N/A - - N/A
Rehbein Transit, Inc. 100 8 N/A 130 6 N/A
Anoka County Juvenile Center 86 9 N/A 160 3 N/A
Nol -Tech Systems, Inc. 70 10 N/A 57 10 N/A
City of Lino Lakes - 67 8 N/A
AdGraphics 300 2
Custom Manufacturing - 60 9 -
Summit Fire Protection - 120 7
Total 1,801 - % 1,789 - %
Source: City of Lino Lakes Official Statements
Notes:
(1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment
within the City was not available.
108
CITY OF LINO LAKES, MINNESOTA
Full- time - Equivalent Employees by Type
Last Ten Fiscal Years
Table 14
2002 2003 2004 2005 2006
General Government
Administration 5.00 5.00 5.00 5.00 5.00
Seniors 0.63 0.63 0.63 0.63 0.63
Finance 3.50 3.50 3.50 3.50 3.50
Economic Development 1.75 1.00 1.00 1.00 1.00
Planning 2.00 2.00 2.00 2.00 2.00
Community Development 2.00 2.00 2.00 2.75 2.75
Engineering -
Building 1.00 1.00 1.00 1.00 1.00
Other 0.55 0.55 0.55 1.15 1.15
Total General Government 16.43 15.68 15.68 17.03 17.03
Public Safety
Officers 22.00 22.00 22.00 25.00 26.00
Civilians 4.00 4.00 4.00 4.75 4.75
Building Inspection 4.00 4.00 4.00 4.25 4.25
Total Public Safety 30.00 30.00 30.00 34.00 35.00
Public Works
Streets 5.85 5.85 5.85 6.35 6.85
Other 1.15 1.15 1.15 1.15 1.15
Total Public Works 7.00 7.00 7.00 7.50 8.00
Parks, Recreation and Forestry 9.15 9.15 9.15 9.05 9.55
Water 2.15 2.15 2.15 2.15 2.15
Sewer 2.15 2.15 2.15 2.15 2.15
Total 66.88 66.13 66.13 71.88 73.88
Source: City Finance Office
109
Table 14 (Continued)
2007 2008 2009 2010 2011
5.00 5.00 5.00 4.00 3.50
0.63 0.63 0.63 0.63
3.50 3.50 3.50 3.00 3.00
1.00 1.00 1.00 1.00 1.00
- 2.00 2.00 2.00 2.00 1.00
2.75 2.75 2.75 2.25 2.00
1.00 1.00 1.00 1.00
1.40 1.40 1.40 1.40 0.70
17.28 17.28 17.28 15.28 11.20
26.00 27.00 27.00 27.00 25.00
4.75 4.75 4.75 4.25 4.00
4.25 4.25 4.25 2.75 2.50
35.00 36.00 36.00 34.00 31.50
7.35 7.35 7.35 6.85
1.15 1.15 1.15 1.15
8.50 8.50 8.50 8.00
7.00
1.00
8.00
9.80 9.80 9.80 9.30 9.00
2.15 2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15 2.15
74.88 75.88 75.88 70.88 64.00
Ner
110
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Ten Years
Function/Program
Table 15
Fiscal Year
2002 2003 2004 2005
General Government
Elections 2 1 2 1
Registered voters 9,423 9,911 11,718 11,035
Number of votes cast 8,291 4,650 10,147 5,288
Voter participation (registered) 88.0% 46.9% 86.6% 47.9%
Public Safety
Police:
Calls for Service 7,318 7,668 7,538 7,766
Traffic Citations & Warnings 2,611 2,564 3,258 3,631
Part I Crimes 404 370 316 257
Part II Crimes 1,259 1,004 644 591
Inspections:
Building Permits (1) 860 826 835 837
Inspections N/A N/A N/A N/A
Value of Building Permits $53,977,610 $55,864,076 $61,579,910 $53,686,592
Public Works
General Maintenance (hours) N/A 2,656 3,263 6,014
Street Maintenance (hours) N/A 4,082 3,533 3,106
Fleet Maintenance (hours) N/A 3,780 3,804 4,440
Snow Plowing /Sanding (hours) N/A 1,020 855 1,003
Culture and Recreation
Parks:
Park Maintenance (hours) N/A N/A 10,210 10,577
Utilities
Water Maintenance (hours) N/A N/A 4,349 3,904
Sanitary Sewer Maintenance (hours) N/A N/A 3,347 4,092
Source: Various City Departments
Notes:
Information not available is labeled N /A.
(1) 1,565 and 4,337 repair permits issued in 2007 and 2008, respectively, due to storm damage.
111
Table 15 (Continued)
Fiscal Year
2006 2007
2008 2009
2010 2011
2 1 2 1 2 1
11,618 10,908 12,723 11,805 12,284 11,705
8,284 2,337 11,051 4,354 8,545 4,314
71.3% 21.4% 86.9% 36.9% 69.6% 36.9%
7,418 7,208 7,318 6644 6575 6360
5,958 3,796 3,304 3180 2744 2599
292 250 305 215 225 221
649 671 1,191 630 667 656
686 2,297 5,041 1,535 509 509
-- N/A N/A N/A N/A N/A N/A
$42,078,007 $30,539,559 $15,852,780 $ 9,586,160 $ 11,295,493 $ 11,295,493
5,692 6,758 6,129 5,870 4,945 7,416
3,631 2,916 3,851 3,267 3,099 4,352
4,460 4,144 5,043 4,782 4,850 4,214
867 1,425 1,353 950 1,638 1,534
10,368 10,939
11,136 12,406
9,257 9,813
4,387 4,256 5,716 5,041 3,560 3,568
3,347 4,148 3,760 3,486 3,531 3,557
112
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Years
Function/Program
Table 16
Fiscal Year
2002 2003 2004 2005 2006
Public Safety
Police:
Stations 1 1
Patrol Units 9 9
Fire (Joint Powers):
Stations in City 1 1
Fire Trucks 4 4
1
10
1
4
1
4
1
5
Public Works
Lights 486 489 489 559 673
Vehicles 28 28 29 29 29
City Streets (miles) 93.2 93.8 94.3 95.5 96.0
Culture and Recreation
Parks:
Parks 18 19 19 18 18
Park Acres 138 142 142 141 141
Trails (miles) 14 18 18 19 20
Park Shelters 4 4 5 5 7
Basketball Courts 5 6 6 6 6
Fishing Pier 1 1 1 1 1
Skating Rinks 4 4 4 4 4
Soccer Fields 8 8 8 8 8
Baseball /Softball Fields 18 18 18 18 20
Tennis Courts 2 2 2 2 2
Playgrounds 16 17 17 17 16
Water
Distribution System (miles) 42.5 46.2 48.2 50.8 51.1
Water Connections 3,433 3,548 3,738 3,957 4,090
Gallons Pumped (millions) 358 518 474 475 565
Number of Fire Hydrants 409 452 490 523 558
Water Tower Capacity (millions gallons) 2 2 2 2 2
Sanitary Sewer
Collection System (miles) 51.3 59.2 61.4 63.5 63.3
Sewer Connections 3,636 3,763 3,960 4,142 4,282
Storm Sewer
Pipe (miles)
Source: Various City Departments
29.8
113
31.3 31.9
33.1 34.1
Table 16 (Continued)
Fiscal Year
2007 2008 2009 2010 2011
1 1
12 12
1
5
1 1 1
12 12 12
1 1 1 1
5 5 5 5
673 673 673 673 673
29 29 29 29 29
96.1 96.1 96.1 96.1 96.1
18 18 18 18 18
141 141 141 141 141
29 29 29 29 29
7 7 7 7 6
6 6 6 6 6
1 1 1 1 1
4 4 4 4 4
8 8 8 8 8
20 20 20 20 20
2 2 2 2 2
16 16 16 16 16
51.5 51.5 51.5 51.5 51.5
4,112 4,247 4,340 4,382 4,424
595 590 589 498 492
558 558 558 558 558
2 2 2 2 2
64.5 64.5
64.5 64.5 64.5
4,428 4,447 4,486 4,530 4,567
34.3 34.3 34.3 34.3 34.3