Comprehensive Annual Financial Report 12/31/2008

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2008 Note 17 LEASE COMMITMENT (CONTINUED) The prorated carrying value of the building being leased is as follows: Building $ 929,970 Less: Accumulated Depreciation (278,991) Net $ 650,979 Note 18 JOINT FIRE VENTURE The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two commissioners to the District's Board. Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula takes into account each city's average number of calls, population, and total market value. During 2008, the City of Lino Lakes' contributions to the District were as follows: Operating $ 487,757 Capital 69,000 Total $ 556,757 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, 2008 are as follows: Total Assets $ 1,057,485 Total Liabilities 127,212 Total Net Assets 930,273 Total Operating Revenue 679,546 Total Operating Expenses 648,011 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, 2008. 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, 2008 there were approximately 63 active participants and 5 retired participants receiving benefits from the City's health plans. 55