HomeMy WebLinkAbout10-24-2016 Council Packet EXPANDED AGENDA
CITY COUNCIL AGENDA
Monday, October 24, 2016
***********
City Council Meeting
6:30 p.m.
(Scheduled to be broadcast on Channel 16)
City Council: Mayor Reinert, Council Members Kusterman, Maher, Manthey and Rafferty
City Administrator: Jeff Karlson
COUNCIL WORK SESSION, 6:00 P.M.
Community Room (not televised)
1. I-35W North Corridor Project Consent
2. Review Regular Agenda
CITY COUNCIL MEETING, 6:30 P.M.
Roll Call - Council Members Rafferty, Kusterman, Manthey, Maher, and Mayor
Reinert were present
Pledge of Allegiance
Open Mike / Public Comment - Jamie Jensen, St. Clair Company, requested
assistance relative his development at Birch St and Hokah Dr
Setting the Agenda: Addition or deletion of agenda items
The agenda was approved as amended to remove Item 1F and Item 4A (both
to be discussed at the next regular work session)
1. CONSENT AGENDA
A) Consideration of Expenditures:
i) October 24, 2016 (Check No. 104664 through 104761) in the
amount of $811,661.62
B) Consider approval of October 3, 2016 Work Session Minutes
C) Consider approval of October 10, 2016 Council Meeting Minutes
D) Consider Resolution No. 16-148, Authorizing Certification of Delinquent
Water & Sewer Utility Charges for Collection with 2016 Property Taxes
Payable in 2017
E) Consider Resolution No. 16-149, Appointing Election Judges
F) Consider approval of October 10, 2016 Public Safety Update
Session
Action Taken: Motion by Maher, seconded by Rafferty, to approve the
Consent Agenda, Items 1A through 1E as presented, was adopted
Council Agenda -2- October 24, 2016
2. FINANCE DEPARTMENT
A) Awarding the Sale of Bonds, Series 2016ABC
i. Consider Resolution No. 16-145, Awarding the Sale of $1,420,000
General Obligation Water Utility Revenue Bonds, Series 2016A,
Sarah Cotton
Action Taken: Motion by Maher seconded by Rafferty,, to approve
Resolution No. 16-145 as presented, was adopted (Kusterman abstained)
ii. Consider Resolution No. 16-146, Awarding the Sale of $1,980,000
Taxable General Obligation Refunding Improvement Bonds, Series
2016B, Sarah Cotton
Action Taken: Motion by Maher, seconded by Manthey, to approve
Resolution No. 16-146 as presented, was adopted (Kusterman abstained)
iii. Consider Resolution No. 16-147, Awarding the Sale of $1,600,000
General Obligation Tax Abatement Refunding Bonds, Series 2016C,
Sarah Cotton
Action Taken: Motion by Maher, seconded by Manthey, to approve
Resolution No. 16-147 as presented, was adopted (Kusterman abstained)
3. ADMINISTRATION DEPARTMENT
A) Consider Six-Month Employment Extension for Community Development
Intern, Jeff Karlson
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
the employment extension as recommended, was adopted
4. PUBLIC SAFETY DEPARTMENT
A) Consider Resolution No. 16-144, Accepting Traffic Safety Grant State fiscal
years of 2017 & 2018 Renewal, Kelly McCarthy
5. PUBLIC SERVICES DEPARTMENT
None
6. COMMUNITY DEVELOPMENT DEPARTMENT
A) Consider Resolution No. 16-135, Approving Third Amendment to PUD
Development Stage Plan/Preliminary Plat for Century Farm North, Katie Larsen
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-135 as presented, was adopted
B) Consider Resolution No. 16-137, Adopting Special Assessment, Individual
Utility Connections, Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-137 as presented, was adopted
Council Agenda -3- October 24, 2016
C) Consider Resolution No. 16-138, Adopting Special Assessment, NorthPointe
2nd Addition, Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-138 as presented, was adopted
D) Consider Resolution No. 16-139, Adopting Special Assessment, NorthPointe
3rd Addition, Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-139 as presented, was adopted
E) Consider Resolution No. 16-140, Adopting Special Assessment, NorthPointe
4th Addition, Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-140 as presented, was adopted
F) Consider Resolution No. 16-141, Adopting Special Assessment, Saddle Club
2nd Addition, Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-141 as presented, was adopted
G) Consider Resolution No. 16-142, Adopting Special Assessment, Century
Farm North 6th Addition, Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-142 as presented, was adopted
H) Consider Resolution No. 16-143, Adopting Special Assessment, 21st Avenue,
Diane Hankee
Action Taken: Motion by Kusterman, seconded by Manthey, to approve
Resolution No. 16-143 as presented, was adopted
7. UNFINISHED BUSINESS
None
8. NEW BUSINESS
None
Adjournment
Community Calendar – A Look Ahead
October 24, 2016 through November 14, 2016
Thursday, November 3 8:00 am, Community Room EDAC
Monday, November 7 6:00 pm, Community Room Council Work Session
Monday, November 7 6:30 pm, Community Room Park Board
Tuesday, November 8 7:00 am to 8:00 pm Election Day
Wednesday, November 9 6:30 pm, Council Chambers Planning & Zoning
Monday, November 14 6:30 pm, Council Chambers City Council Meeting
Updated October 21, 2016
CITY COUNCIL AGENDA
Monday, October 24, 2016
***********
City Council Meeting
6:30 p.m.
(Scheduled to be broadcast on Channel 16)
City Council: Mayor Reinert, Council Members Kusterman, Maher, Manthey and Rafferty
City Administrator: Jeff Karlson
COUNCIL WORK SESSION, 6:00 P.M.
Community Room (not televised)
1. I-35W North Corridor Project Consent
2. Review Regular Agenda
CITY COUNCIL MEETING, 6:30 P.M.
Call to Order and Roll Call
Pledge of Allegiance
Open Mike / Public Comment
Setting the Agenda: Addition or deletion of agenda items
1. CONSENT AGENDA
A) Consideration of Expenditures:
i) October 24, 2016 (Check No. 104664 through 104761) in the
amount of $811,661.62
B) Consider approval of October 3, 2016 Work Session Minutes
C) Consider approval of October 10, 2016 Council Meeting Minutes
D) Consider Resolution No. 16-148, Authorizing Certification of Delinquent
Water & Sewer Utility Charges for Collection with 2016 Property Taxes
Payable in 2017
E) Consider Resolution No. 16-149, Appointing Election Judges
F) Consider approval of October 10, 2016 Public Safety Update
Session
2. FINANCE DEPARTMENT
A) Awarding the Sale of Bonds, Series 2016ABC
i. Consider Resolution No. 16-145, Awarding the Sale of $1,420,000
General Obligation Water Utility Revenue Bonds, Series 2016A,
Sarah Cotton
ii. Consider Resolution No. 16-146, Awarding the Sale of $1,980,000
Taxable General Obligation Refunding Improvement Bonds, Series
2016B, Sarah Cotton
Council Agenda -2- October 24, 2016
iii. Consider Resolution No. 16-147, Awarding the Sale of $1,600,000
General Obligation Tax Abatement Refunding Bonds, Series 2016C,
Sarah Cotton
3. ADMINISTRATION DEPARTMENT
A) Consider Six-Month Employment Extension for Community Development
Intern, Jeff Karlson
4. PUBLIC SAFETY DEPARTMENT
A) Consider Resolution No. 16-144, Accepting Traffic Safety Grant State fiscal
years of 2017 & 2018 Renewal, Kelly McCarthy
5. PUBLIC SERVICES DEPARTMENT
None
6. COMMUNITY DEVELOPMENT DEPARTMENT
A) Consider Resolution No. 16-135, Approving Third Amendment to PUD
Development Stage Plan/Preliminary Plat for Century Farm North, Katie
Larsen
B) Consider Resolution No. 16-137, Adopting Special Assessment, Individual
Utility Connections, Diane Hankee
C) Consider Resolution No. 16-138, Adopting Special Assessment, NorthPointe
2nd Addition, Diane Hankee
D) Consider Resolution No. 16-139, Adopting Special Assessment, NorthPointe
3rd Addition, Diane Hankee
E) Consider Resolution No. 16-140, Adopting Special Assessment, NorthPointe
4th Addition, Diane Hankee
F) Consider Resolution No. 16-141, Adopting Special Assessment, Saddle Club
2nd Addition, Diane Hankee
G) Consider Resolution No. 16-142, Adopting Special Assessment, Century
Farm North 6th Addition, Diane Hankee
H) Consider Resolution No. 16-143, Adopting Special Assessment, 21st Avenue,
Diane Hankee
7. UNFINISHED BUSINESS
None
8. NEW BUSINESS
None
Adjournment
Community Calendar – A Look Ahead
October 24, 2016 through November 14, 2016
Thursday, November 3 8:00 am, Community Room EDAC
Monday, November 7 6:00 pm, Community Room Council Work Session
Council Agenda -3- October 24, 2016
Monday, November 7 6:30 pm, Community Room Park Board
Tuesday, November 8 7:00 am to 8:00 pm Election Day
Wednesday, November 9 6:30 pm, Council Chambers Planning & Zoning
Monday, November 14 6:00 pm, Community Room Council Work Session
Monday, November 14 6:30 pm, Council Chambers City Council Meeting
WS – Item 1
WORK SESSION STAFF REPORT
Work Session Item No. 1
Date: October 24, 2016
To: City Council
From: Michael Grochala
Re: I-35W North Corridor Improvements Municipal Consent
Background
The City Council considered resolution options 80A, 80B, and 80C at the October 10,
2016 Council meeting. None were approved. The Council left open the option for
additional consideration at the October 24, 2016 meeting if requested.
No action is required. If no action is taken by the City within 90 days of the public
hearing the layout is deemed approved.
The deadline for action was October 30, 2016. However, this date has been changed to
November 20, 2016 which is 90 days from the August 22, 2016 public hearing. The
October 30, 2016 date was based on the hearing that was originally scheduled for July.
Requested Council Direction
No action is required. Council may consider adding to the regular agenda.
Attachments
1. Lino Specific Improvements Map
2. Resolution No. 16-80A
3. Resolution No. 16-80B
4. Resolution No. 16-80C
Project Layout
Lexington Ave (Blaine) through Sunset Ave (Lino Lakes)
End of Resurfacing
Approx. 1600’
Proposed Noise Wall
Existing Wall
Start new SB Lane
CITY OF LINO LAKES
RESOLUTION NO. 16-80A
A RESOLUTION APPROVING A MINNESOTA DEPARTMENT OF
TRANSPORTATION FINAL LAYOUT FOR STATE PROJECT 6284-172 I35W NORTH
CORRIDOR WITHIN THE MUNICIPAL LIMITS OF LINO LAKES
WHEREAS, a Public Hearing on the final layout for State Project 6284-172 for improvements to
the Interstate 35W North Corridor was held by the City Council of Lino Lakes on August 22,
2016; and
WHEREAS, the Commissioner of Transportation has prepared a final layout for State Project
Layout 1A, 6284-172 on Interstate 35W North, from Sunset Avenue to approximately 1,600 feet
northeast within the City of Lino Lakes for corridor improvements; and seeks the approval
thereof, as described in Minnesota Statutes 161.162 to 161.167; and
WHEREAS, said final layout is on file in the Metro District, Minnesota Department of
Transportation office, Roseville, Minnesota, being marked as S.P. 6284-172, Layout 1A, from
R.P. 680+00 to 696+00.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Lino Lakes
approves Minnesota Department of Transportation Recommended Final Layout for the
improvement 6284-172 on Interstate 35W North Corridor within the corporate limits of Lino
Lakes.
BE IT FURTHER RESOLVED, that the City Council of the City of Lino Lakes supports the
construction of sound barriers and additional lanes to I-35W between Highway 36 and County
Road 17, as those improvements are clearly needed, but opposes designating the additional lanes
as MnPass lanes and opposes any specific restriction or special purpose of the additional lanes.
The new lanes shall be open to all given that all taxpayers are financially supporting their
construction.
Adopted by the Council of the City of Lino Lakes this 10th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_______________and was duly seconded by Council Member ________________ and upon
vote being taken thereon, the following voted in favor thereof:
The following voted against same:
______________________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
CITY OF LINO LAKES
DRAFT RESOLUTION NO. 16-80B
A RESOLUTION APPROVING A MINNESOTA DEPARTMENT OF
TRANSPORTATION FINAL LAYOUT FOR STATE PROJECT 6284-172 I35W NORTH
CORRIDOR WITHIN THE MUNICIPAL LIMITS OF LINO LAKES
WHEREAS, a Public Hearing on the final layout for State Project 6284-172 for improvements to
the Interstate 35W North Corridor was held by the City Council of Lino Lakes on August 22,
2016; and
WHEREAS, the Commissioner of Transportation has prepared a final layout for State Project
Layout 1A, 6284-172 on Interstate 35W North, from Sunset Avenue to approximately 1,600 feet
northeast within the City of Lino Lakes for corridor improvements; and seeks the approval
thereof, as described in Minnesota Statutes 161.162 to 161.167; and
WHEREAS, said final layout is on file in the Metro District, Minnesota Department of
Transportation office, Roseville, Minnesota, being marked as S.P. 6284-172, Layout 1A, from
R.P. 680+00 to 696+00; and
WHEREAS, the City Council supports the proposed Project improvements within the corporate
limits of Lino Lakes, but generally opposes the expansion of MnPASS lanes in Minnesota.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Lino Lakes
approves Minnesota Department of Transportation Recommended Final Layout for the
improvement 6284-172 on Interstate 35W North Corridor within the corporate limits of Lino
Lakes.
Adopted by the Council of the City of Lino Lakes this 10th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_______________and was duly seconded by Council Member ________________ and upon
vote being taken thereon, the following voted in favor thereof:
The following voted against same:
_______________________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
CITY OF LINO LAKES
DRAFT RESOLUTION NO. 16-80C
A RESOLUTION APPROVING A MINNESOTA DEPARTMENT OF
TRANSPORTATION FINAL LAYOUT FOR STATE PROJECT 6284-172 I35W NORTH
CORRIDOR WITHIN THE MUNICIPAL LIMITS OF LINO LAKES
WHEREAS, a Public Hearing on the final layout for State Project 6284-172 for improvements to
the Interstate 35W North Corridor was held by the City Council of Lino Lakes on August 22,
2016; and
WHEREAS, the Commissioner of Transportation has prepared a final layout for State Project
Layout 1A, 6284-172 on Interstate 35W North, from Sunset Avenue to approximately 1,600 feet
northeast within the City of Lino Lakes for corridor improvements; and seeks the approval
thereof, as described in Minnesota Statutes 161.162 to 161.167; and
WHEREAS, said final layout is on file in the Metro District, Minnesota Department of
Transportation office, Roseville, Minnesota, being marked as S.P. 6284-172, Layout 1A, from
R.P. 680+00 to 696+00.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Lino Lakes
approves Minnesota Department of Transportation Recommended Final Layout for the
improvement 6284-172 on Interstate 35W North Corridor within the corporate limits of Lino
Lakes.
Adopted by the Council of the City of Lino Lakes this 10th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_______________and was duly seconded by Council Member ________________ and upon
vote being taken thereon, the following voted in favor thereof:
The following voted against same:
______________________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
CITY COUNCIL SPECIAL WORK SESSION October 3, 2016
DRAFT
1
CITY OF LINO LAKES 1
MINUTES 2
3
DATE : October 3, 2016 4
TIME STARTED : 6:00 p.m. 5
TIME ENDED : 7:55 p.m. 6
MEMBERS PRESENT : Council Member Rafferty, Kusterman, 7
Maher, Manthey and Mayor Reinert 8
MEMBERS ABSENT : None 9
10
Staff members present: City Administrator Jeff Karlson; Community Development 11
Director Grochala; City Planner Katie Larsen; City Clerk Julie Bartell. 12
13
Kolstad Septic System v. City of Lino Lakes: Mayor Reinert introduced Jeff Kolstad 14
and State Representative Linda Runbeck. The mayor said this is a matter that he’d like 15
the council to discuss prior to beginning the regular work session agenda. He explained 16
that a property has a septic issue requiring system replacement. State law apparently 17
dictates who can do that work (it must be a professional or a property owner). He 18
understands that the City has chosen to interpret the state law to say that, in the case of 19
this property and this project, Mr. Kolstad’s 78 year-old dad must be on the bobcat doing 20
this replacement. The mayor said he is calling for discussion of the matter. 21
22
Representative Linda Runbeck added that she believes the key to state law is to avoid 23
having an unauthorized/unlicensed contractor involved but if you handle it as a property 24
owner that would seem to be okay. 25
26
Administrator Karlson explained that he has reviewed the situation with staff (including 27
the city’s building inspector). They reviewed state law and how the city interprets that 28
“property owner” within that law means the person who controls the property. It’s 29
actually quite unusual for a property owner to ask for this permission – it’s most often 30
done by a licensed contractor. In this case the work was begun by the family members 31
(including Jeff Kolstad) and an inspection by the city did occur. It was found that the 32
work was not being done by the property owner and it wasn’t being completed properly 33
and as well the proper equipment wasn’t being used. 34
35
Community Development Director Grochala explained that there has been an amended 36
design submitted. He added that it is most important that the system installed is correct 37
and safe. Normally a licensed installer must do the work but there is an exception for 38
owner installation. He noted state law. He suggested that in this case it is a nephew 39
doing the work. Mr. Grochala added that the house will be put up for sale and a new 40
owner should be able to trust the system put in place. 41
42
Mayor Reinert concurred that the system must be correct. He is aware that the Kolstad’s 43
have been paying taxes in the city for more than forty years and have not asked for much. 44
The mayor said there are apparently three things that have turned up wrong and that 45
CITY COUNCIL SPECIAL WORK SESSION October 3, 2016
DRAFT
2
brought the city into the picture. He suggests that perhaps staff should be explaining 46
needs to be done to get the job done correctly. 47
48
Community Development Director Grochala explained that staff cannot be in the 49
business of designing improvements and the role suggested is typically handled by the 50
contractor. Mr. Grochala suggested that the council could interpret the regulations to 51
include extended family and that would allow this project to continue with the current 52
workers. 53
54
Mr. Kolstad addressed the council. This involves his father’s home but he himself was a 55
resident for a very long time until lately. He agrees that it is the role of the city to work 56
with the citizens. He feels that the building inspector wasn’t helpful but much more 57
regulatory than necessary. 58
59
Mr. Karlson noted that the father applied for the permit so that wasn’t actually accurate. 60
Mr. Kolstad explained that his father isn’t able to do the work. 61
62
Council Member Maher asked for clarification that the property owner must be on the 63
equipment and operating it. Staff said no – the owner must be on the property. 64
65
Mr. Kolstad suggested that the building inspector had “his dander up” when he arrived 66
and that caused him to threaten certain actions. He feels that the inspector was overly 67
sensitive to the regulations. 68
69
Representative Runbeck suggested that the city wouldn’t be on the hook if the system 70
were to fail – it would be the homeowner. Mr. Kolstad noted that they (the owners) will 71
be required to enter a hold-harmless on the situation. At this point in the project, they are 72
offering to rectify what is wrong and have it corrected for the inspector’s approval. 73
74
Council Member Rafferty asked if the surveyor work is done correctly and that was 75
verified by Mr. Kolstad, who added that the issue was that the wrong type of vehicle was 76
used over the drain field area. The mayor confirmed that it is fixable. 77
78
Community Development Director Grochala read aloud the statute related to the 79
situation. Council Member Kusterman said the law isn’t ambiguous and it is clear. He 80
noted that there must be a way for the city to remediate the problem however he believes 81
that the staff is following the law. Mr. Kolstad said he spoke with a state enforcement 82
agency and a person at the Minnesota Pollution Control Agency and they stated that the 83
laws are written to be somewhat ambiguous and they feel that the city has room for 84
interpretation. The state official did say that he personally wouldn’t enforce it in this 85
situation. Mr. Kolstad said the purpose of his request is to assist an elderly citizen who 86
doesn’t have a lot of money. There was a mistake made along the way but they’d still 87
like to be allowed to proceed with the project. 88
89
CITY COUNCIL SPECIAL WORK SESSION October 3, 2016
DRAFT
3
Mayor Reinert suggested that there is a route to get this done. Mr. Grochala said the 90
council can direct that it be allowed (as their interpretation of the law). He explained how 91
staff has applied the regulations in the past, to hold responsible the person who comes in 92
and takes out the permit who must be the property owner. In this case the owner isn’t 93
living on the property. Mayor Reinert said he likes to see a culture in this city of helping 94
businesses and residents. 95
96
Council Member Manthey confirmed that a project is typically inspected four times and 97
asked if those inspections actually provide enough insight to know if the process is being 98
followed well enough. The goal is of course to get this done correctly and safely. He has 99
done projects like this and the inspection element is very important. 100
101
Mr. Kolstad said he understands that a homeowner issued permit is scrutinized much 102
more than a contractor permitted project. 103
104
Representative Runbeck noted that this apparently isn’t a common circumstance which 105
we’ve heard from staff. But it does seem to call for some latitude on the part of the city 106
especially because a skilled person is working on the project. 107
108
Mayor Reinert remarked that there are many properties with septic systems within the city 109
so perhaps a review of the process is warranted to see if the city is fair in the issuance of 110
permits. Going forward, he suggested that everything should be in writing. He 111
confirmed with staff that they will provide a written correction notice in this situation. 112
The mayor clarified that all instructions should be in writing. 113
114
Council Member Kusterman suggested that the law is clear and city staff is just 115
interpreting the law that is out there and if the council wants it to be different, the council 116
must give staff that direction. 117
118
The mayor remarked that there is a person at the meeting who makes state law and she 119
interprets it to allow Mr. Kolstad to do this that should mean something. Ms. Runbeck 120
added that inspectors don’t need to make your life hell but they do take the law very 121
seriously. It’s important to have this clear though when the property will actually be 122
turning over soon. 123
124
Council Member Manthey suggested that the discussion wouldn’t be occurring if there 125
wasn’t something done wrong. He sees that family members should be allowed to help 126
but also that the city inspector needs definition to do his job. 127
128
Mr. Kolstad said that he could easily add his name to the deed for the property with a quit 129
claim deed, however, he thinks the principle of the city’s involvement here is important. 130
He pledges that the work will be done right and it will save money to his father. 131
132
The council discussed the term “individual” as it applied in the regulations. 133
134
CITY COUNCIL SPECIAL WORK SESSION October 3, 2016
DRAFT
4
The council concurred that their direction is staff should interpret the law that with 135
guidance and instruction from staff, this project can be continued. 136
137
Community Development Director Grochala remarked that the council seems to be 138
suggesting that staff interpret extended family as allowed to do this. Mayor Reinert 139
remarked he likes the direction to be that it the work should be done “under the direction” 140
of the property owner. 141
142
Council Member Kusterman suggested that the matter can be settled with a statement of 143
the council that the City of Lino Lakes has extended the definition of “an individual” to 144
“extended family”. The council concurred that they will consider that change and staff 145
will confirm with the city attorney that that is appropriate and, if necessary, bring forward 146
an action to the council. The mayor remarked that once there is an opinion from the city 147
attorney, staff and decide if official action is needed or if the project can then proceed 148
quickly. 149
150
1. I-35W Project Municipal Consent - Mayor Reinert explained that staff is 151
presenting three resolutions and the council can chose to adopt one at the council 152
meeting. It was clarified that the state will construe Resolution One to be a denial of the 153
project. Mayor Reinert remarked that the city attorney has expressed that even the first 154
resolution is advisory unless the city is contributing any money. The mayor argued that 155
there hasn’t been a fair description that this is a MnPass project. Community 156
Development Director Grochala said he is presenting the information as he has received 157
it. 158
159
Council Member Manthey recalled the council’s discussion with MnDOT staff. There 160
was discussion of the project in terms of it being part of the MnPass system. 161
162
Mayor Reinert remarked that Resolution One actually stands for something but the state 163
is calling it a deal breaker. It’s about interpretation. He suggests that if council members 164
really want to stand for something, they should vote for that one. Council Member Maher 165
asked about the Mayor’s goal; he said it is to not support MnPass, which represents 166
special lanes for special people. 167
168
The council discussed the three resolutions and will consider all those options at the 169
council meeting. 170
171
2. St. Clair Estates Final Plat - City Planner Larsen recalled the council 172
consideration of the preliminary plat. A large part of that discussion was access to Birch 173
Street. The change that resulted now allows for an additional lot. This will go to the 174
Planning and Zoning Board yet and will most likely be to the council the last meeting of 175
October. Does the additional lot have much impact; she suggests not. The numbers 176
don’t change enough to impact trips. 177
178
CITY COUNCIL SPECIAL WORK SESSION October 3, 2016
DRAFT
5
Council Member Maher said she voted no on the preliminary plat because of the number 179
of lots and so the increase will not change her mind. 180
181
The council discussed the history of cul-de-sac lengths in the city. Mayor Reinert said he 182
will not support the addition of the lot. The council concurred that they do not support 183
the change to 36 lots. Planner Larsen indicated that she will convey that message to the 184
developer and the Planning and Zoning Board. 185
186
3. Council Updates on Boards/Commissions 187
188
North Metro Telecommunications Commission – Council Member Maher reported a 189
slight increase in budget (operations increase related to salaries). The City of Oak Grove 190
wants to use North Metro to do on-line meetings and it will cost a minimum of $5,000 191
per year. Neither Comcast nor Century Link showed up for the meeting. The upgrade is 192
alive and well. 193
194
4. Monthly Progress Report 195
196
Mayor Reinert recalled that the council requested the addition of North Metro Television 197
to this list. Administrator Karlson said he has spoken with North Metro Director Heidi 198
Arnson and other area administrators calling for discussion of making the government 199
channels more relevant. It means a change in how we approach use and could mean some 200
structural changes in what services they apply. He will have information for the progress 201
report based on what comes from that discussion. 202
203
Regarding the upgrade of the council chambers and community room, Administrator 204
Karlson said he has brought in an expert and will have additional information on design 205
options based on that preliminary discussion. 206
207
5. Review Regular Agenda- 208
209
Item 6A – Community Development Director Grochala will be adding a staff report 210
regarding special assessments for the Otter Lake Road project. 211
212
The other Community Development Department reports were reviewed briefly. 213
214
The meeting was adjourned at 7:55 p.m. 215
216
These minutes were considered, corrected and approved at the regular Council meeting held on 217
October 24, 2016. 218
219
220
221
Julianne Bartell, City Clerk Jeff Reinert, Mayor 222
223
COUNCIL MINUTES October 10, 2016
DRAFT
1
CITY OF LINO LAKES 1
MINUTES 2
3
4
DATE : October 10, 2016 5
TIME STARTED : 6:30 p.m. 6
TIME ENDED : 8:05 p.m. 7
MEMBERS PRESENT : Council Member Rafferty, Kusterman, Maher, 8
Manthey, and Mayor Reinert 9
MEMBERS ABSENT : 10
11
Staff members present: City Administrator Jeff Karlson; Community Development Director Michael 12
Grochala; City Engineer Diane Hankee; Director of Public Safety John Swenson; and City Clerk Julie 13
Bartell 14
15
PUBLIC COMMENT 16
17
No one was present to address the council regarding a matter not on the agenda. 18
19
SETTING THE AGENDA 20
21
The agenda was approved as presented. Mayor Reinert said he would be reading the Proclamation 22
Honoring Toastmasters Month 2016. 23
24
CONSENT AGENDA 25
26
Council Member Rafferty moved to approve the Consent Agenda, Items 1A through 1E as presented. 27
Council Member Maher seconded the motion. Motion carried on a voice vote. 28
29
ITEM ACTION 30
31
Consideration of Expenditures: 32
33
October 10, 2016 (Check No. 10494 – 34
104663, $209,075.83) Approved 35
36
September 26, 2016 Council Work Session 37
Minutes Approved 38
39
September 26, 2016 City Council Meeting 40
Minutes Approved 41
42
Consider Resolution 16-131, Approving Off-Sale Liquor Approved 43
and Tobacco License for Liquor Barrel 44
45
COUNCIL MINUTES October 10, 2016
DRAFT
2
Proclamation Honoring Toastmasters Month 2016 Approved 46
47
FINANCE DEPARTMENT REPORT 48
49
There was no report from the Finance Department. 50
51
ADMINISTRATION DEPARTMENT REPORT 52
53
There was no report from the Administration Department. 54
55
PUBLIC SAFETY DEPARTMENT REPORT 56
57
There was no report from the Public Safety Department. 58
59
PUBLIC SERVICES DEPARTMENT REPORT 60
61
There was no report from the Public Services Department. 62
63
COMMUNITY DEVELOPMENT DEPARTMENT REPORT 64
65
6A) Public Hearing, Consider Resolution No. 16-130, Adopting Special Assessments, Otter 66
Lake Road Extension - Community Development Director Grochala reviewed the written staff 67
report, including the history that brings the project forward to this point of adopting special 68
assessments that support the extension of Otter Lake Road. He reviewed the improvements included 69
in the project. He noted the total cost of the project and that all of that is not being assessed; the city 70
is paying for a larger water main pipe for future expansion. He reviewed the process used to 71
determine assessments and the property owners impacted. Mr. Grochala explained that some of the 72
process for obtaining property included eminent domain proceedings. The proposed assessments will 73
be spread over ten years with an interest rate imposed. A public hearing is required, property owners 74
have been notified and a notice published in the official newspaper. Staff is recommending adoption 75
of the assessments. 76
77
Council Member Rafferty asked about businesses impacted by the project. Director Grochala 78
reviewed how the plans were adjusted to minimize the impact for some concerned property owners. 79
80
Council Member Kusterman asked if there has been any feedback on the assessment proceedings. 81
Mr. Grochala said that a representative of BLino LLC did contact him and indicated that they 82
wouldn’t be challenging the assessments. 83
84
Mayor Reinert opened the public hearing. 85
86
There being no one present wishing to speak, the public hearing was closed. 87
88
Council Member moved to approve Resolution No. 16-130 as presented. Council Member Manthey 89
seconded the motion. Motion carried on a voice vote. 90
COUNCIL MINUTES October 10, 2016
DRAFT
3
91
6B) Consider Resolution No. 16-128, Order the Project, Approving the Plans & Specifications 92
and Authorizing the Ad for Bid, 2016 Surface Water Management Project - City Engineer 93
Hankee noted that the resolution approves the City’s 2016 Surface Water Management Project. Sites 94
included in this project are selected based on feasibility and public input. The project is preferred to 95
be done in the late fall. She noted the project budget and, if approved, that the council will receive 96
the results of a bid process in the near future. 97
98
Council Member Kusterman asked if this is the type of work that could be done by city staff. Ms. 99
Hankee explained that staff is involved to a certain level, including assisting with impacts on property 100
owners. Past that it is appropriate to outsource this work. 101
102
Council Member Manthey asked if the project is always within the allotted budget and Ms. Hankee 103
explained that there is an established list and they work toward completing that list as much as they 104
can within the budget. 105
106
Council Member Manthey moved to approve Resolution No. 16-128 as presented. Council Member 107
Kusterman seconded the motion. Motion carried on a voice vote. 108
109
6C) Consider Resolution No. 16-129, Accepting and Approving the Grant Agreement between 110
the City of Lino Lakes and the Metropolitan Council of Environmental Service for the 111
Improvement of Publically Owned Infrastructure - City Engineer Hankee noted that the resolution 112
authorizes staff to accept and approve an agreement related to receipt of funds to support a sewer 113
lining project within the Shenandoah neighborhood. Ms. Hankee explained that the Metropolitan 114
Council has identified the city as eligible for the grant and the eligibility doesn’t mean the city is 115
mandated in any way at this time. 116
117
Council Member Kusterman moved to approve Resolution No. 16-129 as presented. Council 118
Member Rafferty seconded the motion. Motion carried on a voice vote. 119
120
6D Consider Resolution No. 16-80, Approving a Minnesota Department of Transportation 121
Final Layout, State Project 6284-172 I-35W North Corridor Improvements - Community 122
Development Director Grochala reviewed the request before the council to approve a project on 123
Highway I-35W, extending into Lino Lakes. The project scope was reviewed, including: 124
- the area involved; 125
- the addition of a lane in each direction 126
- the inclusion of a MnPass Lane 127
- spot improvements. 128
129
He reviewed the project funding and proposed schedule. A map was shown indicating the spot 130
improvements. Noise walls are proposed to extend into Lino Lakes (a picture indicating the type of 131
wall proposed was shown). The project layout was reviewed including the type of improvement that 132
would occur on the Lino Lakes’ portion of the project. The Lino Lakes’ portion of this project would 133
be rolled ahead from plans to do it at a later date. The noise wall process includes a vote of the 134
residents and that is underway (with resident approval anticipated). Since the project extends into 135
COUNCIL MINUTES October 10, 2016
DRAFT
4
Lino Lakes, MnDOT has asked the city for municipal consent. Mr. Grochala reviewed the process 136
expected of the city (pass a resolution, not pass a resolution). The council did have a discussion 137
about a possible resolution and an alternate resolution was developed that reflected some council 138
concerns. That resolution was forwarded to MnDOT staff and they have indicated they would take 139
the resolution as a disapproval of the project. Staff is now presenting three resolution options to the 140
council: a) approving the layout with conditions related to lane restrictions; b) opposing MnPass in 141
general but approving the layout of the project; or c) approving the lay out as is. The council did see 142
resolution options at the last work session, and he reviewed each of those three resolutions as they are 143
included in the staff report. 144
145
Mayor Reinert moved to approve Resolution 16-80A (he read a section of the resolution). He noted 146
that he feels the resolution is a win/win for everyone as it allows the city to oppose the concept of 147
special lanes for special people (as he does) while allowing the project to go forward for those who 148
support it. It also will assure, if the state were to come to the city and ask for city assistance, the city 149
cannot be asked for funds for that purpose. This protects the city from having to fund a special lane 150
and thereby protects the city’s residents from that. Council Member Rafferty seconded the motion 151
for discussion purposes. 152
153
Mayor Reinert asked City Attorney Langel to further explain the resolution. 154
155
Mr. Langel explained that the language of the resolution was previously proposed. He agrees that the 156
language agrees with the improvements outside of the MnPass lanes. His understanding is that 157
MnDOT has looked at the language and is interpreting it as a city denial. That would have 158
consequences that could remove Lino Lakes from the project and therefore risk loss of the 159
improvements. Mayor Reinert suggested that the consequences aren’t based on legality but on the 160
firm hand of the state in their need to get full compliance. He is fully opposed to the MnPass lanes 161
and would like to state that. 162
163
Council Member Manthey noted that there are three resolution options. He understands that the 164
mayor is in favor of 16-80A. He noted 16-80B and that it allows some footing for the city while 165
allowing the project to continue within the city. The goal seems to be to get a message on MnPASS 166
lanes but not to stop the project. 167
168
Mayor Reinert remarked that Resolution No. 16-80b doesn’t have any teeth. Council Member 169
Manthey said the council has discussed the options and MnDOT has come back with their opinion; he 170
thinks getting the project done is important. 171
172
Council Member Kusterman said he will vote no on all three of the resolutions. He prefers to ensure 173
there will be a noise wall and not allow that to fall on principle. That is the most important thing for 174
him. 175
176
The motion failed on a voice vote. 177
178
COUNCIL MINUTES October 10, 2016
DRAFT
5
Council Member Manthey moved to approve Resolution 16-80B as presented. Council Member 179
Maher seconded the motion. Mayor Reinert suggested that this resolution gives the council cover, 180
standing on principle but not really standing on anything. Motion failed on a voice vote. 181
182
There were no additional motions and therefore no action by the council. 183
184
6E) Consider Resolution No. 16-132, Clarifying Licensing Requirements for Owner Installed 185
Individual Sewage Treatment Systems (ISTS) - Community Development Director Grochala 186
reviewed the written report outlining staff’s request for the council to clarify the city’s permitting 187
requirements for owner installed sewer systems. He noted a single address where orders were issued 188
on the regulations. The city council received a request to review that situation. 189
190
Staff would suggest that either the owner or that owner’s designated representative should be on the 191
site when work is going on. Staff has drafted a resolution that would set those items as the city’s 192
policy in these matters. 193
194
Mayor Reinert said he supports the resolution as it gives residents more flexibility in this type of work 195
and allows them to have family and friends assist with projects. 196
197
Council Member Manthey asked if the resolution replaces the statute and Mr. Grochala said no, this 198
would be a situation of the city stating its policy. Council Member Manthey suggested that there is a 199
safety issue if appropriate regulations don’t remain; Mr. Grochala suggested that there will be always 200
be a licensed designer involved in plans but there could be installation by an individual without 201
experience. He clarified that it not very typical to have an owner ask for this. 202
203
Council Member Manthey asked if it would be appropriate to link on-site inspections to the owner by 204
requiring a homeowner sign-off. Mr. Grochala explained that the homeowner will need to take out 205
the permit and would actually be the contact for the city. 206
207
Council Member Kusterman received clarification that homeowners will first be abiding by state and 208
local regulations and then will be aware of the city’s additional policy. 209
210
Council Member Rafferty remarked that he concurs that it would be appropriate for the homeowner to 211
sign off on who will actually do the job so city hall can properly follow the project. Mayor Reinert 212
remarked that staff has indicated that there will be higher scrutiny in the case of a permit issued to an 213
owner; the case that brought this forward was clearly one where some long-term residents required 214
more flexibility in their situation but with additional city oversight. The bottom line remains that the 215
system must be done right. 216
217
Council Member Kusterman said that gets back to the law which seems to be written to protect 218
against the city determining to what level they can allow people to do the work. Mayor Reinert 219
suggested that the city’s policy isn’t in conflict with the statute but provides the city’s interpretation 220
within the terms of those regulations. 221
222
COUNCIL MINUTES October 10, 2016
DRAFT
6
Council Member Maher suggested that the policy set by the resolution would require staff process be 223
developed and Mr. Grochala concurred. 224
225
Mayor Reinert asked Mr. Grochala if he has any concern that the job that has brought this policy 226
forward will be done correctly? Mr. Grochala said he suspects there will be more staff involvement 227
and there may be kick-back. He believes that regardless there must be that line of communication. 228
229
Council Member Kusterman recalled that staff reported that the homeowner himself applied for the 230
permit. Mayor Reinert explained that staff will be held accountable for a safe end product. 231
232
Council Member Rafferty moved to approve Resolution No. 16 as amended to reflect that 233
communication is required to the homeowner. Attorney Langel explained the difficulty of adding 234
language that would actually serve that purpose. Council Member Rafferty withdrew his motion. 235
236
Mayor Reinert said the bottom line is to have a system installed correctly; a process including some 237
city oversight seems the answer to him. Will staff put together that process? Mr. Grochala explained 238
that the existing rules establish the process; additionally they would have to be clear on everyone who 239
is working on the project so contact and oversight doesn’t become unclear. 240
241
Council Member Kusterman expressed concern that this action could open the process up very wide. 242
Would a bonding process be appropriate? He isn’t uncomfortable opening the door for all 243
homeowners to bring in unlicensed, non-bonded individuals to do this important work. 244
245
Mr. Grochala clarified that the current law allows an individual to put in their own system, without a 246
bond but with a plan prepared under license. For staff, understanding who to contact is very 247
important. 248
249
Mayor Reinert asked, under what the state allows are there issues that arise? Mr. Grochala said he 250
doesn’t think so. Mayor Reinert suggested that the action is a resolution, presenting a policy, not 251
changing regulations; perhaps the city could have discussion in the future about how this is working 252
and tweak it if necessary. 253
254
Council Member Manthey suggested that he hears staff indicating concern that project standards 255
could be lessened. Mayor Reinert said staff will require certain standards and enforce them and he 256
feels that getting a report back on this from staff is an important element to moving forward. 257
258
Council Member Rafferty moved to approve Resolution No. 16-132, amended to require that the 259
subject will be revisited at a future work session. Council Member Manthey seconded the motion. 260
Motion carried on a voice vote. Council Member Maher voted “no”. 261
262
UNFINISHED BUSINESS 263
264
There was no Unfinished Business. 265
266
NEW BUSINESS 267
COUNCIL MINUTES October 10, 2016
DRAFT
7
268
Public Safety Director Swenson briefly updated the council on the active, multi-jurisdictional 269
investigation that is on-going regarding a recent helicopter crash in Lino Lakes. Residents are 270
requested to turn in any debris that is located. 271
272
COMMUNITY EVENTS 273
274
MONTHLY RECYCLE DAY will be held at Lino Park (7850 Lake Drive) on Saturday, October 15 275
from 10:00 a.m. to 2:00 p.m. See city website for a list of accepted items. 276
277
BEYOND THE YELLOW RIBBON Lino Lakes has fulfilled all the requirements to become an 278
official Beyond the Yellow Ribbon Community. The public is welcome to join us for the 279
proclamation ceremony in the West Learning Center at Centennial High School on Thursday, October 280
27, at 7:00 p.m. 281
282
ABSENTEE VOTING HAS BEGUN You may absentee vote at City Hall. Hours are 8:00 a.m. to 283
4:30 p.m. Monday through Friday now through November 7. Information is available on the City 284
website to apply for a ballot by mail. 285
286
WALDOCH FARM PUMPKIN PATCH AND CORN MAZE will be open daily September 17 287
through October 31 from 10:00 a.m. to 7:00 p.m. 288
289
COMMUNITY CALENDAR 290
291
Community Calendar – A Look Ahead 292
October 10, 2016 through October 24, 2016 293
Wednesday, October 12 6:30 pm, Council Chambers Planning & Zoning 294
Monday, October 24 6:00 pm, Community Room Council Work Session 295
Monday, October 24 6:30 pm, Council Chambers City Council Meeting 296
297
ADJOURN 298
299
There being no further business, Council Member Rafferty moved to adjourn at 8:05 p.m. Council 300
Member Manthey seconded the motion. Motion carried on a voice vote. 301
302
These minutes were considered and approved at the regular Council Meeting, October 24, 2016. 303
304
305
Julianne Bartell, City Clerk Jeff Reinert, Mayor 306
307
CITY COUNCIL
AGENDA ITEM 1D
STAFF ORIGINATOR Sarah Cotton
MEETING DATE October 24, 2016
TOPIC Consider Resolution No. 16-148, Authorizing the Certification of
Delinquent Water and Sewer Utility Charges for Collection with
2016 Property Taxes Payable in 2017
VOTE REQUIRED Simple Majority
BACKGROUND
Staff annually brings before the City Council delinquent water and sewer utility charges for
certification to the County Auditor for collection with the following year property taxes. Affected
property owners received mailed notice of this proceeding and have been allowed ample time to
pay the delinquent charges.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No. 16-148, authorizing the certification
of delinquent water and sewer utility charges to be collected with 2016 property taxes payable in
2017 at an interest rate of 8% per annum.
ATTACHMENTS
Resolution No. 16-148
Listing of Delinquent Utility Accounts
CITY OF LINO LAKES
RESOLUTION NO. 16-148
RESOLUTION AUTHORIZING THE CERTIFICATION OF DELINQUENT WATER
AND SEWER UTILITY CHARGES FOR COLLECTION WITH THE 2016 PROPERTY
TAXES PAYABLE IN 2017
WHEREAS, pursuant to City Code Section 401.29 and Section 402.14, Subd. 5, the Clerk has
prepared a list of properties having delinquent water and sewer charges to be
certified to the Anoka County Auditor for collection with the 2016 property taxes,
payable in 2017, and
WHEREAS, notice of such certification was mailed to affected property owners, and
WHEREAS, the City Council has met to consider the certification of such delinquent water and
sewer charges.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes, Minnesota that
the Clerk is hereby authorized to certify the delinquent water and sewer charges as indicated on the
attached listing to the Anoka County Auditor to be collected with the 2016 property taxes, payable
in 2017 at an interest rate of 8.00% per annum.
Adopted by the Council of the City of Lino Lakes this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member _____________ and upon vote
being taken thereon, the following voted in favor thereof:
The following voted against same:
_____________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
10/13/16CITY OF LINO LAKES2016 CERTIFICATION LISTPenalties and Interest to be addedAccountNamePINProperty AddressMailing AddressMailing CityStateZipTotal005058-000JZS ISANTI LLC17-31-22-22-0046 475 APOLLO DR 12500 CREEK RD W MINNETONKA MN 55305861.67$ 005129-001 ROBERT & CARRIE VAN REESE 08-31-22-14-0060 7858 NANCY CT 7858 NANCY CTLINO LAKESMN 55014-1187 446.94$ 005234-000 DAN & BETSY COLLIER 18-31-22-34-0008 7287 LEA CT 1405 S FERN ST #519ARLINGTONVA 22202-2818 391.57$ 005302-000 ANGELA & DANIEL DEYO 09-31-22-22-0047 820 KELLY ST 820 KELLY STLINO LAKESMN 55014-2478 297.82$ 005319-000 JOE & MANDY DELMEDICO 09-31-22-22-0043 871 KELLY ST 871 KELLY STLINO LAKESMN 55014 306.41$ 005364-000 GINA KOLFLAT & KELLY MINION 09-31-22-21-0047 973 KELLY ST 973 KELLY STLINO LAKESMN 55014-2479 739.69$ 005381-000 MATT & JESSICA LONG 09-31-22-12-0014 997 KELLY ST 997 KELLY STLINO LAKESMN 55014-2479 300.30$ 005388-000 JAMES FRANDSEN 18-31-22-33-0014 7257 MEADOW CT 7257 MEADOW CTLINO LAKESMN 55014-1168 150.89$ 005471-000TC HOME RENTAL HOLDINGS LLC07-31-22-24-0183 7872 GOTLAND LN1920 SOUTH FIRST ST STE 2201 MINNEAPOLIS MN 55454543.44$ 005477-000 TWIN CITIES HOME RENTAL HOLDINGS LLC 07-31-22-24-0186 7884 GOTLAND LN 1920 SOUTH FIRST ST STE 2201MINNEAPOLISMN 55454 237.31$ 005522-000 AMANDA LARSON & JON GRIEFENHAGEN 08-31-22-14-0052 7890 NANCY CT 7890 NANCY CTLINO LAKESMN 55014-1187 584.73$ 005542-000 MELISSA EASON 07-31-22-34-0065 98 PALOMINO LN 98 PALOMINO LNLINO LAKESMN 55014-2916 463.96$ 005571-000 NIKKI & ERICH SCHNEIDER 07-31-22-31-0011 152 PALOMINO LN 152 PALOMINO LNLINO LAKESMN 55014-2913 702.22$ 005574-000 BENJAMIN & RUTH LEE 07-31-22-42-0039 201 PALOMINO LN 201 PALOMINO LNLINO LAKESMN 55014-2906 563.22$ 005580-000 JENNIFER BRINKWORTH 07-31-22-42-0036 227 PALOMINO LN 227 PALOMINO LNLINO LAKESMN 55014-2906 467.71$ 005595-000 JOHN & KELLI HOFMANN 07-31-22-43-0005 7612 PALOMINO LN 7612 PALOMINO LNLINO LAKESMN 55014-2905 530.34$ 005637-000 GARY & ANNETTE KIRCHNER 07-31-22-42-0022 7698 PALOMINO LN 7698 PALOMINO LNLINO LAKESMN 55014-2905 638.48$ 005656-000 MICHAEL & DEBRA WENZEL 07-31-22-43-0024 7636 BEHM LN 7636 BEHM LNLINO LAKESMN 55014-2902 230.37$ 005690-000 STEPHEN & ANN ROMAN 07-31-22-43-0046 7681 PALOMINO LN 7681 PALOMINO LNLINO LAKESMN 55014-2905 488.13$ 005793-000 SUMERA AHMED 07-31-22-24-0028 133 STALLION LN 133 STALLION LNLINO LAKESMN 55014-7004 592.85$ 005875-000 JOSH OSMUNDSON 07-31-22-24-0051 219 STALLION LN 219 STALLION LNLINO LAKESMN 55014-7014 491.80$ 005906-000 STACI SCHURHAMER 07-31-22-24-0056 229 STALLION LN 229 STALLION LNLINO LAKESMN 55014-7014 177.93$ 005918-000 LORI SCHILTZ 07-31-22-43-0032 263 TECKLA CT 263 TECKLA CTLINO LAKESMN 55014 460.83$ 005920-000 JIM & MICHELLE DEHLER 07-31-22-43-0088 246 TECKLA CT 246 TECKLA CTLINO LAKESMN 55014 289.19$ 006012-000 LUCAS LORENZ 08-31-22-12-0055 7940 HIGHLAND DR 7940 HIGHLAND DRLINO LAKESMN 55014-2453 733.92$ 006138-000 KELLEY & JOYCE KIMBALL 07-31-22-43-0056 7636 APPALOOSA LN 7636 APPALOOSA LNLINO LAKESMN 55014-2907 827.45$ 006199-000 ROGER & LEEA HARRIS 08-31-22-21-0076 533 ARLO LN 533 ARLO LNLINO LAKESMN 55014-5509 474.87$ 006238-000 LAURIE THOMAS WASUT 07-31-22-32-0054 11 CENTURY TRL 11 CENTURY TRLLINO LAKESMN 55014-7001 425.70$ 006258-000 BRAD & STACEY SANDERS 07-31-22-32-0071 60 CENTURY TRL 60 CENTURY TRLLINO LAKESMN 55014-7001 652.46$ 006314-000 ROGERS KAYONGO & GRACE BESSMAN 07-31-22-24-0083 7818 CENTURY TRL 7818 CENTURY TRLLINO LAKESMN 55014-7015 492.90$ 006357-000 MICHAEL CLOUTIER 08-31-22-24-0038 595 LOIS LN 595 LOIS LNLINO LAKESMN 55014-1069 374.95$ 006371-000 PATRICK & KELLY CONLIN 08-31-22-13-0104 625 LOIS LN 625 LOIS LNLINO LAKESMN 55014-5498 469.59$ 006497-000 COURTLAND & HEATHER GREGORY 08-31-22-12-0013 7906 MARILYN DR 7906 MARILYN DRLINO LAKESMN 55014-5505 360.28$ 006523-000 EAGLE CREST NW INC08-31-22-13-0057 7805 OAK CTPO BOX 47333 PLYMOUTH MN 55447389.30$ 006596-000 DANIEL WALDOCH & KELLY OWEN 08-31-22-13-0142 652 OAK LN 652 OAK LNLINO LAKESMN 55014 236.46$ 006654-000 CHARLES DWAMINA 18-31-22-34-0028 7259 SAVANNA CT 945 IVY HILLS RDBELLE PLAINEMN 56011-5125 254.93$ 006665-000JERRY LASHOMB18-31-22-34-0030 7263 SAVANNA CT4480 CHURCHILL ST SHOREVIEW MN 55126378.44$
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AccountNamePINProperty AddressMailing AddressMailing CityStateZipTotal008594-000JANELL O'BRIEN20-31-22-22-0020 446 AQUA CIR 446 AQUA CIR LINO LAKES MN 55014-1684 3.37$ 008609-000MICHAEL KIMMEL20-31-22-22-0022 448 AQUA CIR PO BOX 3531 LA PUENTE CA 91744-0631 0.75$ 008777-000CRYSTAL BILJAN20-31-22-22-0143 518 AQUA CIR 518 AQUA CIR LINO LAKES MN 55014 127.33$ 014581-000CRYSTAL BILJAN20-31-22-22-0143 518 AQUA CIR 518 AQUA CIR LINO LAKES MN 55014 2.60$ 014661-000 JEFFREY & GUST KEMPF 08-31-22-12-0030 7923 HIGHLAND DR 3700 125TH AVE NEBLAINE MN 55449 233.32$ 014917-000502 ARROWHEAD LLC29-31-22-34-0063 502 ARROWHEAD DR1216 MACEY WAY STILLWATER MN 5508275.44$ 014509-000 RESIDENT30-31-22-44-0119 6464 LAKOTA TRL6464 LAKOTA TRLLINO LAKES MN55014278.63$ 009288-000SECRETARY OF HUD30-31-22-44-0098 6413 LAKOTA TRL 4400 WILL ROGERS PKWY STE 300OKLAHOMA CITY OK 7310841.12$ 009324-000JENNA PROPERTIES LLC30-31-22-44-0177 6429 LAKOTA TRL9100 BALTIMORE ST NE STE 102 BLAINE MN 5544919.01$ 010259-000 502ARROWHEAD, LLC29-31-22-34-0063 502 ARROWHEAD DR1216 MACEY WAY STILLWATER MN 5508277.72$ 012319-000 TREVOR & BETHANY PERKINS 28-31-22-43-0028 1019 PHEASANT RUN S 1019 PHEASANT RUN S LINO LAKES MN 55014 $ 94.94 014033-000 BRANDT & TERESA WENDLAND 25-31-22-42-0042 2297 TART LAKE RD 2297 TART LAKE RD LINO LAKES MN 55038-7726 $ 60.56 4,536.31$ RENTAL PROPERTY005457-000 RONALD STANLEY08-31-22-43-0014 700 77TH ST 700 77TH ST LINO LAKES MN 55014-1147 930.56$ 005845-000 AKP INVESTMENTS LLC07-31-22-24-0042 183 STALLION LN2515 WHITE BEAR AVE STE A8 121 MAPLEWOOD MN 55109147.03$ 006712-000 DANIEL SALO18-31-22-34-0041 7287 SAVANNA CT19148 CARSON ST NW ELK RIVER MN 55330116.79$ 007079-000 JITENDRAPAL KUNDAN 07-31-22-24-0106 174 SHETLAND LN 3525 PARK AVE MINNEAPOLIS MN 55407 441.08$ 007090-000 GLENN RUSSELL07-31-22-24-0094 185 SHETLAND LN1030 MAGNOLIA LN MINNEAPOLIS MN 55441237.94$ 007281-000 RAPHEAL & MARGARET JOHN19-31-22-12-0047 7148 2ND AVE5275 W BALD EAGLE BLVD SAINT PAUL MN 55110244.38$ 005997-000GUST & JEFFREY KEMPF08-31-22-12-0030 7923 HIGHLAND DR3700 125TH AVE NE BLAINEMN55449100.00$ 011458-000 JAMES & BEVERLY MALLEY 29-31-22-34-00836486 TOMAHAWK TRL 311 1ST ST INDIAN ROCK BEACH FL 3378593.04$ 009292-00 MARK & MARISUE MUELLNER 30-31-22-44-0110 6414 LAKOTA TRL1595 STONEYBROOK DR LINO LAKES MN 5503823.42$ 009857-000MARK & MARISUE MUELLNER30-31-22-41-0023 6581 SIOUX LN1595 STONEYBROOK DR LINO LAKES MN 55038223.11$ 012114-000 DIANE & BRAD SCHEIFELS28-31-22-42-0044 1072 KILLDEER CT5416 LAKE ELMO AVE N LAKE ELMO MN 55042786.06$ 011892-000 RANDALL & ELIZABETH SAGRILLO 21-31-22-43-0028 6832 BLACK DUCK DR 6832 BLACK DUCK DR LINO LAKES MN 55014 $ 36.87 012467-000 THOMAS ROSSMEISL & STEVE KISSEL 28-31-22-24-0024 6643 WHITE BIRCH CT 1899 RICE ST ROSEVILLE MN 55113 $ 220.02 012741-001 JOSEPH DAILEY 27-31-22-13-0038 1400 PHEASANT HILLS DR 1400 PHEASANT HILLS DR LINO LAKES MN 55038 $ 2.60 013771-000 LYNDA VALENTINE 25-31-22-44-0009 6432 CLEARWATER CRK DR 6432 CLEARWATER CREEK DR LINO LAKES MN 55038-7773 $ 72.06 012077-000 WILLIAM & NANCY ARMAS 28-31-22-12-0016 6773 E SHADOW LAKE DR 640 CAMINO DE LA REINA SAN DIEGO CA 92108 330.72$ 4,005.68$ Total 97,517.98$
CITY COUNCIL
AGENDA ITEM 1E
STAFF ORIGINATOR: Julie Bartell, City Clerk
MEETING DATE: October 24, 2016
TOPIC: Resolution No. 16-149, Election Judge Approval
VOTE REQUIRED: 3/5
INTRODUCTION
On November 8, 2016 the General Election will be held. Election judges are required in order
to staff the city’s seven voting precincts.
BACKGROUND
The governing body of a municipality has the authority to appoint qualified applicants to serve
as election judges. In July, the City Council approved the appointment of election judges who
would serve for both the General and Primary election. Staff is now forwarding the names of
additional judges that are needed for the November 8th General Election.
RECOMMENDATION
Staff recommends approval of Resolution No. 16-145, Appointing Additional Election Judges
for the 2016 General Election.
ATTACHMENTS
Resolution No. 16-145
CITY OF LINO LAKES
RESOLUTION NO. 16-145
APPOINTING ADDITIONAL ELECTION JUDGES FOR
THE NOVEMBER 8, 2016 GENERAL ELECTION
WHEREAS, a General Election will be held on November 8, 2016; and
WHEREAS, pursuant to Minnesota Statute 204B.21, Subd. 2, election judges for each precinct
in a municipality shall be appointed by the governing body of that municipality; and
WHEREAS, pursuant to Minnesota Statute 204B.21, a list of eligible voters was prepared; and
WHEREAS, the following qualified individuals have agreed to serve as election judges; and
WHEREAS, pursuant to Minnesota Statute 204B.25, election judges will receive training from
the Anoka County Elections and Voter Registration division;
NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes that
the following named persons are qualified individuals and are hereby appointed to serve as
election judges for the 2016 General Election:
Carolyn Mastenbrook Diana Kiffmeyer
James Mastenbrook Clemence Robinson
Sue Schweitzer Kay Taylor
Nan Corson Julian Klaas
Patricia Doocy Mary Elizabeth Glenn
Sharyn Kusterman Ruth Lee
Genny O’Fallon Monica Stoesz
Anthony Stoesz Holly Thomas
Steven Heiskary Ronald White
Margaret Heiskary William Trudeau
George Lamb Sandra Trudeau
Robert Lorence Deborah Anwar
Donna Carpentier Bankim Desai
Lorita Janas Briana Leahy
Tiffany Tembruell Sheryl Zipf
Adopted by the Council of the City of Lino Lakes this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_______________and was duly seconded by Council Member ________________ and upon a
vote being taken thereon, the following voted in favor thereof:
The following voted against same:
_______________________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
CITY COUNCIL SPECIAL WORK SESSION October 10, 2016
DRAFT
1
CITY OF LINO LAKES 1
MINUTES 2
3
DATE : October 10, 2016 4
TIME STARTED : 8:15 p.m. 5
TIME ENDED : 10:35 p.m. 6
MEMBERS PRESENT : Council Member Rafferty, Kusterman, 7
Maher, Manthey and Mayor Reinert 8
MEMBERS ABSENT : None 9
10
Staff members present: City Administrator Jeff Karlson; Public Safety Director John 11
Swenson; Deputy Director Kelly McCarthy; Deputy Director Dan L’Allier; Caption 12
Wayne Wegener; City Clerk Julie Bartell. 13
14
1. MN Dept of Public Safety 2015 Uniform Crime Report - Public Safety Director 15
Swenson reviewed the report and how it is put together. He noted a decrease in 16
availability time for officers to be out in neighborhoods suppressing crime and that the 17
numbers reflect that. Council Member Kusterman asked if certain neighborhoods are 18
impacted and Director Swenson said there was not a clear pattern. Deputy Director 19
McCarthy explained that officers do log proactive and active time; they have seen a clear 20
decrease in the percentage of proactive time and fire training time during on-duty hours is 21
a part of that. Director Swenson briefly reviewed what proactive hours involves. 22
Mayor Reinert asked how many officers are typically on duty and Director Swenson said 23
that figure never goes below two but they do have more due to overlap during some high 24
volume times. 25
26
Council Member Rafferty recalled previous questions about public safety vehicles and 27
active shifts per day. He noted a communication that he received that indicates six per 28
day. Deputy Director McCarthy explained the variables that impact the number on each 29
shift; for instance, they do reduce their daytime staffing because that proves consistent. 30
31
Council Member Kusterman remarked that 2011 figures show the same trend as 2015 but 32
without the fire training element. Deputy Director McCarthy explained that there was a 33
trend at that time that was addressed. 34
35
The council heard that there is a correlation between proactive police cruising time 36
through neighborhoods and a lower crime rate. When a council member suggested that 37
watching for open doors may be too much oversight, Director Swenson explained the 38
theory that thieves will return to an area where there is known opportunity – such as open 39
doors. 40
41
Council Member Rafferty suggested that there can’t be any training done during the 42
night? The council was informed that there is training on the night shift as well because 43
it is done as much on-line as possible. 44
45
CITY COUNCIL SPECIAL WORK SESSION October 10, 2016
DRAFT
2
Director Swenson noted the numbers that are coming in for 2016. They indicate a drop 46
from 2015. The city still does have the lowest crime rate in the county. 47
48
Director Swenson highlighted the department’s high clearance rate, of which they are 49
proud. 50
51
2. Third Quarter Statistics for 2016 were reviewed by Director Swenson. Average 52
response time was noted. The mayor touched on the reduction in the number of calls 53
where paid on-call staff responded. Director Swenson noted the city’s change in 54
protocol for when paid on-call are asked to respond. Calls for service are on pace to be 55
higher. Mayor Reinert noted that the cross training that the police receive allows them to 56
provide services at more medical calls that previous. Director Swenson clarified that the 57
police have been additionally trained in the area of NARCAN. 58
59
Director Swenson reviewed: 60
- Fire Division Third Quarter 2016 call data: 61
- Criminal Offense data for Part 1 and Part 2 offenses and arrests; 62
- Felony Case File Submissions; 63
- Administrative Reporting; 64
- Third Quarter Notable Events (identify theft case, Night to Unite, Safety Camp); 65
Narcan equipment addition; Firearms Safety Training; new emergency warning 66
siren; 40 under 40 for Captain Wegener; Fire box rekeying; Preplans developed 67
for response; 21 business fire inspections. 68
69
3. Public Safety Department Fleet- 70
71
- Apparatus Replacement Plan (Fire Division) (report in packet was read); 72
73
4. Funding mechanism for fire apparatus replacement - Mayor Reinert moved on to 74
how the city would pay for equipment (bonding or not). He noted that as the city levies 75
for the $100,000 each year, if it just goes into a fund, it loses money because the city gets 76
so little return on its investments. If the funding sits in an account for years, you have 77
people move from the city and they’ve paid but seen no benefit. He feels those are real 78
considerations. He suggests that the city could promise a bonding amount each year and 79
not actually bond for it until it is needed. The council will get more advice from the 80
finance director on the prospect (before actually changing the replacement plan). 81
82
The council discussion the Police Division Vehicle Replacement Plan (including the 83
current thee-year plan and another based on a four year replacement); the three year plan 84
is based on industry standards and best practices throughout the nation. The four-year 85
replacement plan was reviewed. Council Member Rafferty asked when the standard 86
changed from four to three years and Director Swenson said it isn’t actually a three year 87
situation. Council Member Rafferty asked for discussion of a mileage policy because the 88
department doesn’t have one. Deputy Director McCarthy explained that they follow the 89
ICMA model that calls for no more than 20,000 miles per year per squad vehicle. 90
CITY COUNCIL SPECIAL WORK SESSION October 10, 2016
DRAFT
3
Council Member Rafferty also discussed resale value. Mayor Reinert remarked that he 91
has questioned the need to have vehicles for each of the district chiefs plus an extra car. 92
Council Member Manthey suggested that the reason for those cars seem to be for 93
response to calls; in his experience, district chiefs did not have a take home vehicle. 94
Deputy Director McCarthy explained the reason to provide a district chief with a take 95
home vehicle – to respond quickly to emergency calls. 96
97
Mayor Reinert stated that the council will have further discussion of some of these topics 98
at the November work session; there will be budget topics as well. 99
100
5. Elimination of Lino Lakes Participation in DEA Task Force – Director Swenson 101
reviewed the written report. 102
103
Mayor Reinert said he requested that this matter be included on the agenda. The city has 104
been involved in the program for five years. He thinks it is excessive to have this officer 105
involvement especially for a city this size. It was a three-year commitment and the city 106
has been in it for five. He suggests that the city has done its fair share and it’s time to let 107
another city take over. It doesn’t pay for itself. Council Member Manthey noted the 108
funds that come back in forfeiture and he wonders how much that makes up for costs. 109
Mayor Reinert acknowledged those funds but he still feels it is time to end the city’s 110
participation. Council Member Maher remarked that her hesitance would relate to crime 111
being on the rise and how this program helps in crime reduction. Mayor Reinert 112
suggested that all cities benefit from this program and so the city would still receive that 113
benefit without supporting an officer. Director Swenson explained that any Lino Lakes’ 114
work related to narcotics is given to this officer who can then leverage the resources of 115
the whole task force for that work; that is what would be lost to the city. Further 116
discussion on the matter will occur as part of 2017 budget considerations. 117
118
Council Member Rafferty noted information he received from staff that shows what other 119
departments of similar sized cities have for sworn staff. He’d like to extend that report 120
because he finds that type of information helpful. 121
122
Mayor Reinert noted that you can use a baseline of three officers at all shifts during 24 123
hours – that is 12.6. Level of service is an important discussion that the council will 124
continue. The city does have the best public safety department around and that should be 125
kept but discussions about cost will continue. 126
127
The meeting was adjourned at 10:35 p.m. 128
129
These minutes were considered, corrected and approved at the regular Council meeting held on 130
October 24, 2016. 131
132
133
Julianne Bartell, City Clerk Jeff Reinert, Mayor 134
135
CITY COUNCIL
AGENDA ITEM 2A
STAFF ORIGINATOR: Sarah Cotton, Finance Director
MEETING DATE: October 24, 2016
TOPIC: Awarding the Sale of Bonds, Series 2016ABC
VOTE REQUIRED: Simple Majority
BACKGROUND
At the August 8, 2016, City Council meeting, the City Council approved the plans and
specifications and authorized the advertisement for bids related to the 2016 Aqua Lane to Black
Duck Drive Trunk Water Main Project. The project will create a looped water system that will
provide residents with high quality water supply and adequate pressure for fire demand. The
project includes trunk water main improvements along Aqua Lane, through the Anoka County
Regional Park, along Sand Piper Drive and West Shadow Lake Drive, and connecting the
existing water main on the north end of Black Duck Drive.
On September 26, 2016, the City Council approved Resolution No. 16-116 providing for the
issuance and sale of approximately $1,420,000 General Obligation Water Utility Revenue
Bonds, Series 2016A to finance the water main improvements noted above. The bond issue will
have a 10-year term and will be repaid utilizing revenues from the city’s Area and Unit Trunk
fund.
On September 26th, the City Council also approved Resolution No. 16-125 and Resolution No.
16-126 providing for the issuance and sale of approximately $1,980,000 Taxable General
Obligation Refunding Improvement Bonds, Series 2016B and $1,600,000 General Obligation
Tax Abatement Refunding Bonds, Series 2016C, respectively. The 2016B refunding would
refinance the outstanding portion of the Series 2005A Taxable G.O. Improvement Bonds issued
to fund the Legacy at Woods Edge Improvements, while the 2016C refunding would refinance
the outstanding portion of the Series 2006C G.O. Tax Abatement Bonds issued to finance the
city’s participation in the YMCA project.
It was estimated at the time that by refunding the 2005A Series issue that the city could achieve
net present value savings of approximately $130,682 over the term of the issue, a 6.20% savings,
and that by refunding the 2006C Series issue that the city could achieve net present value savings
of approximately $133,833 over the term of the issue, a 7.73% savings. The total estimated net
present value savings of these refundings was estimated to be approximately $265K.
The 2016B refunding issue has been structured with a term matching that of the 2005A bonds
and would be repaid through previously adopted special assessments, TIF, and other
miscellaneous revenues. The 2016C refunding issue has been structured with a term matching
that of the 2006C bonds and would be repaid from tax abatement revenues.
The City has since issued its Official Statement and advertised for bids for these issues. Bids
were received earlier today by the City’s financial advisors, Springsted, Inc. Terri Heaton of
Springsted, Inc. will be in attendance at the City Council meeting to present the results of the
bidding process.
RECOMMENDATION
Consider approval of Resolution No. 16-145, Resolution No. 16-146, and Resolution No. 16-
147.
ATTACHMENTS
Preliminary Official Statement
Resolution No. 16-145
Resolution No. 16-146
Resolution No. 16-147
____________________________
* Preliminary; subject to change.
The information contained in this Preliminary Official Statement is deemed by the City to be final as of the date hereof; however, the pricing and underwriting information is subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 7, 2016 NEW ISSUES S&P Ratings: Requested
BANK QUALIFIED – SERIES 2016A BONDS AND SERIES 2016C BONDS In the opinion of Kennedy & Graven, Chartered, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect) and assuming compliance with certain covenants, interest to be paid on the Series 2016A Bonds and the Series 2016C Bonds is excluded from gross income for federal income tax purposes and, to the same extent, is excluded from taxable net income of individuals, estates, and trusts for Minnesota income tax purposes, and is not a preference item for purposes of computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is taken into account in determining adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on certain corporations and is subject to Minnesota franchise taxes on certain corporations (including financial institutions) measured by income. No opinion will be expressed by Bond Counsel regarding the other state or federal tax consequences caused by the receipt or accrual of interest on the Series 2016A Bonds and the Series 2016C Bonds or arising with respect to ownership of the Series 2016A Bonds and the Series 2016C Bonds. See “TAX EXEMPTION – SERIES 2016A BONDS” and “TAX EXEMPTION – SERIES 2016C BONDS” herein. Interest on the Series 2016B Bonds is includable in gross income for federal income tax purposes and is includable in taxable net income for Minnesota income tax purposes. See “TAXABILITY OF INTEREST – SERIES 2016B BONDS” herein. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Series 2016A Bonds and the Series 2016C Bonds or arising with respect to ownership of the Series 2016A Bonds and the Series 2016C Bonds. City of Lino Lakes, Minnesota
$1,420,000*
General Obligation Water Utility Revenue
Bonds, Series 2016A
(the “Series 2016A Bonds”)
$1,980,000*
Taxable General Obligation Improvement
Refunding Bonds, Series 2016B
(the “Series 2016B Bonds”)
$1,600,000*
General Obligation Tax Abatement Refunding Bonds, Series 2016C
(the “Series 2016C Bonds”) (Book Entry Only) Dated Date: Date of Delivery Interest Due: Each February 1 and August 1,
commencing August 1, 2017 The Bonds (as defined herein) will mature as shown on the inside front cover of this Official Statement.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds.
All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of
redemption scheduled to conform to the respective maturity schedules set forth on the following page.
The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct
general ad valorem taxes. Additional sources of security for the Bonds are discussed herein.
A separate proposal must be submitted for each issue subject to the minimum bid amounts shown below, plus accrued
interest, if any. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public
for each maturity of each issue must be 98.0% or greater. Following receipt of proposals, a good faith deposit for each
issue will be required to be delivered to the City by the lowest bidder as described in each “Terms of Proposal” herein.
Award of the Bonds will be made on the basis of True Interest Cost (TIC). Minimum Bid The Series 2016A Bonds $1,407,930
The Series 2016B Bonds $1,966,140
The Series 2016C Bonds $1,590,400 The City will designate the Series 2016A Bonds and the Series 2016C Bonds as “qualified tax-exempt obligations”
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, and the Series 2016A Bonds and the
Series 2016C Bonds will not be subject to the alternative minimum tax for individuals.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of
Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the
Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral
multiples thereof. Investors will not receive physical certificates representing their interest in the Bonds purchased. (See
“Book Entry System” herein.) U.S. Bank National Association, St. Paul, Minnesota will serve as registrar (the
“Registrar”) for the Bonds. The Bonds will be available for delivery at DTC on or about November 23, 2016. PROPOSALS RECEIVED: October 24, 2016 (Monday) until 11:00 A.M., Central Time AWARD: October 24, 2016 (Monday) at 6:30 P.M., Central Time
Further information may be obtained from SPRINGSTED Incorporated,
Municipal Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota 55101-2887 (651) 223-3000.
____________________________
* Preliminary; subject to change.
City of Lino Lakes, Minnesota
$1,420,000* General Obligation Water Utility Revenue Bonds, Series 2016A
The Series 2016A Bonds will mature February 1 in the years and amounts* as follows:
2018 $130,000
2019 $135,000
2020 $140,000
2021 $140,000
2022 $140,000
2023 $145,000
2024 $145,000
2025 $145,000
2026 $150,000
2027 $150,000
The City may elect on February 1, 2025, and on any day thereafter, to prepay the Series 2016A Bonds due
on or after February 1, 2026 at a price of par plus accrued interest.
$1,980,000* Taxable General Obligation Improvement Refunding Bonds, Series 2016B
The Series 2016B Bonds will mature February 1 in the years and amounts* as follows:
2018 $480,000 2019 $490,000 2020 $500,000 2021 $510,000
The Series 2016B Bonds will not be subject to optional prepayment in advance of their respective stated
maturity dates.
$1,600,000* General Obligation Tax Abatement Refunding Bonds, Series 2016C
The Series 2016C Bonds will mature February 1 in the years and amounts* as follows:
2018 $225,000
2019 $245,000
2020 $260,000
2021 $275,000
2022 $290,000
2023 $305,000
The Series 2016C Bonds will not be subject to optional prepayment in advance of their respective stated
maturity dates. The Series 2016C Bonds will be subject to extraordinary redemption. See “THE BONDS
– Redemption Provisions – Extraordinary Redemption” herein.
CITY OF LINO LAKES, MINNESOTA
CITY COUNCIL
Jeff Reinert Mayor
William Kusterman Council Member
Melissa Maher Council Member
Michael Manthey Council Member
Rob Rafferty Council Member
CITY ADMINISTRATOR
Jeffrey Karlson
FINANCE DIRECTOR
Sarah Cotton
MUNICIPAL ADVISOR
Springsted Incorporated
St. Paul, Minnesota
BOND COUNSEL
Kennedy & Graven, Chartered
Minneapolis, Minnesota
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this
document, as the same may be supplemented or corrected by the City from time to time, may be treated as
a Preliminary Official Statement with respect to the Bonds described herein that is deemed final as of the
date hereof (or of any such supplement or correction) by the City.
By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the
City agrees that, no more than seven business days after the date of such award, it shall provide without
cost to the senior managing underwriter of the syndicate to which the Bonds are awarded copies of the
Final Official Statement in the amount specified in each Terms of Proposal.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to
make any representations with respect to the Bonds, other than as contained in the Preliminary Official
Statement or the Final Official Statement, and if given or made, such other information or representations
must not be relied upon as having been authorized by the City.
Certain information contained in the Preliminary Official Statement or the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not
guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION
IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE
SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE PRELIMINARY OFFICIAL
STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO
CHANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not
purport to be comprehensive or definitive. All references to such documents are qualified in their entirety
by reference to the particular document, the full text of which may contain qualifications of and
exceptions to statements made herein. Where full texts have not been included as appendices to the
Preliminary Official Statement or the Final Official Statement, they will be furnished upon request.
Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an
organization unaffiliated with the City. The City is not responsible for the selection of the CUSIP
numbers and makes no representation as to the accuracy thereof as printed on the Bonds or as set forth in
the Final Official Statement. No assurance can be given by the City that the CUSIP numbers for the
Bonds will remain the same after the delivery of the Final Official Statement or the date of issuance and
delivery of the Bonds.
____________________________
* Preliminary; subject to change.
TABLE OF CONTENTS
Page(s)
Terms of Proposal:
$1,420,000* General Obligation Water Utility Revenue Bonds, Series 2016A ........................... i-v
$1,980,000* Taxable General Obligation Improvement Refunding Bonds, Series 2016B .......... vi-x
$1,600,000* General Obligation Tax Abatement Refunding Bonds, Series 2016C ..................... xi-xv
Introductory Statement ....................................................................................................................... 1
Continuing Disclosure ....................................................................................................................... 1
The Bonds .......................................................................................................................................... 2
The Series 2016A Bonds ................................................................................................................... 5
The Series 2016B Bonds .................................................................................................................... 5
The Series 2016C Bonds .................................................................................................................... 6
Future Financing ................................................................................................................................ 7
Litigation ............................................................................................................................................ 7
Legality .............................................................................................................................................. 7
Tax Exemption – Series 2016A Bonds .............................................................................................. 8
Tax Exemption – Series 2016C Bonds .............................................................................................. 8
Related Tax Considerations - Series 2016A Bonds and Series 2016C Bonds ................................... 9
Bank-Qualified Tax-Exempt Obligations – Series 2016A Bonds and Series 2016C Bonds ............. 10
Taxability of Interest – Series 2016B Bonds ..................................................................................... 11
Ratings ............................................................................................................................................... 11
Municipal Advisor ............................................................................................................................. 11
Certification ....................................................................................................................................... 11
City Property Values .......................................................................................................................... 12
City Indebtedness ............................................................................................................................... 13
City Tax Rates, Levies and Collections ............................................................................................. 19
Funds on Hand ................................................................................................................................... 20
Investments ........................................................................................................................................ 20
General Information Concerning the City ......................................................................................... 21
Governmental Organization and Services .......................................................................................... 26
Proposed Forms of Legal Opinions ........................................................................................ Appendix I
Continuing Disclosure Certificate ............................................................................................ Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ..................................................................................... Appendix III
Excerpt of 2015 Comprehensive Annual Financial Report .................................................... Appendix IV
________________________________
* Preliminary; subject to change.
- i -
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,420,000* CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION WATER UTILITY REVENUE BONDS, SERIES 2016A
(BOOK ENTRY ONLY)
Proposals for the Series 2016A Bonds will be received on Monday, October 24, 2016, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the
Series 2016A Bonds will be by the City Council at 6:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Series 2016A Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®.
For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal
in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City,
its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
neither the City, its agents nor PARITY® shall be responsible for a bidder’s failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Series 2016A Bonds, and PARITY®
is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms
of Proposal shall control. Further information about PARITY®, including any fee charged, may be
obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
- ii -
DETAILS OF THE SERIES 2016A BONDS
The Series 2016A Bonds will be dated as of the date of delivery and will bear interest payable on
February 1 and August 1 of each year, commencing August 1, 2017. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.
The Series 2016A Bonds will mature February 1 in the years and amounts* as follows:
2018 $130,000
2019 $135,000
2020 $140,000
2021 $140,000
2022 $140,000
2023 $145,000
2024 $145,000
2025 $145,000
2026 $150,000
2027 $150,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2016A Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2016A Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public.
Proposals for the Series 2016A Bonds may contain a maturity schedule providing for a combination of
serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a
price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule
set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities”
in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The Series 2016A Bonds will be issued by means of a book entry system with no physical distribution of
Series 2016A Bonds made to the public. The Series 2016A Bonds will be issued in fully registered form
and one Series 2016A Bond, representing the aggregate principal amount of the Series 2016A Bonds
maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust
Company (“DTC”), New York, New York, which will act as securities depository of the Series 2016A
Bonds. Individual purchases of the Series 2016A Bonds may be made in the principal amount of $5,000
or any multiple thereof of a single maturity through book entries made on the books and records of DTC
and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered
owner of the Series 2016A Bonds. Transfer of principal and interest payments to participants of DTC
will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial owners. The
purchaser, as a condition of delivery of the Series 2016A Bonds, will be required to deposit the
Series 2016A Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay
for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2025, and on any day thereafter, to prepay Series 2016A Bonds due on
or after February 1, 2026. Redemption may be in whole or in part and if in part at the option of the City
and in such manner as the City shall determine. If less than all Series 2016A Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid.
DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and
each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed.
All prepayments shall be at a price of par plus accrued interest.
- iii -
SECURITY AND PURPOSE
The Series 2016A Bonds will be general obligations of the City for which the City will pledge its full
faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net
revenues of the City’s water utility. The proceeds will be used to finance improvements to the City’s
water system.
BIDDING PARAMETERS
Proposals shall be for not less than $1,407,930 plus accrued interest, if any, on the total principal amount
of the Series 2016A Bonds. No proposal can be withdrawn or amended after the time set for receiving
proposals unless the meeting of the City scheduled for award of the Series 2016A Bonds is adjourned,
recessed, or continued to another date without award of the Series 2016A Bonds having been made.
Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity
must be 98.0% or greater. Series 2016A Bonds of the same maturity shall bear a single rate from the date
of the Series 2016A Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $14,200 (the “Deposit”) no later than 2:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the lowest bidder (the “purchaser”) will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Series 2016A Bonds will be awarded on the basis of the lowest interest rate to be determined on a
true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The
City's computation of the interest rate of each proposal, in accordance with customary practice, will be
controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters
relating to the receipt of proposals and award of the Series 2016A Bonds, (ii) reject all proposals without
cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein.
- iv -
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Series 2016A Bonds. If the Series 2016A Bonds qualify for municipal bond insurance
and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of
the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to
reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to
the City. All costs associated with the issuance and administration of such policy and associated ratings
and expenses (other than any independent rating requested by the City) shall be paid by the successful
bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2016A
Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the
Series 2016A Bonds.
CUSIP NUMBERS
If the Series 2016A Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Series 2016A Bonds, but neither the failure to print such numbers on any Series 2016A Bond nor any
error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Series 2016A Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
On or about November 23, 2016, the Series 2016A Bonds will be delivered without cost to the purchaser
through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an
approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary
closing papers, including a no-litigation certificate. On the date of settlement, payment for the
Series 2016A Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of
the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of
payment for the Series 2016A Bonds has been made impossible by action of the City, or its agents, the
purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's
non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding
sale of the Series 2016A Bonds, to provide annual reports and notices of certain events. A description of
this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the
Series 2016A Bonds will be conditioned upon receiving evidence of this undertaking at or prior to
delivery of the Series 2016A Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Series 2016A Bonds, and said Preliminary Official Statement will serve as a
nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange
Commission. For copies of the Preliminary Official Statement or for any additional information prior to
sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
- v -
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Series 2016A Bonds, together with any other
information required by law. By awarding the Series 2016A Bonds to an underwriter or underwriting
syndicate, the City agrees that, no more than seven business days after the date of such award, it shall
provide without cost to the sole underwriter or to the senior managing underwriter of the syndicate (the
“Underwriter” for purposes of this paragraph) to which the Series 2016A Bonds are awarded up to
25 copies of the Final Official Statement. The City designates the Underwriter of the syndicate to which
the Series 2016A Bonds are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Such Underwriter agrees that if its proposal is accepted by
the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with all
Participating Underwriters of the Series 2016A Bonds for purposes of assuring the receipt by each such
Participating Underwriter of the Final Official Statement.
Dated September 26, 2016 BY ORDER OF THE CITY COUNCIL
/s/ Julie Bartell
City Clerk
________________________________
* Preliminary; subject to change.
- vi -
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,980,000* CITY OF LINO LAKES, MINNESOTA TAXABLE GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2016B
(BOOK ENTRY ONLY)
Proposals for the Series 2016B Bonds will be received on Monday, October 24, 2016 until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the
Series 2016B Bonds will be by the City Council at 6:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Series 2016B Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®.
For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal
in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City,
its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
neither the City, its agents nor PARITY® shall be responsible for a bidder’s failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Series 2016B Bonds, and PARITY®
is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms
of Proposal shall control. Further information about PARITY®, including any fee charged, may be
obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
- vii -
DETAILS OF THE SERIES 2016B BONDS
The Series 2016B Bonds will be dated as of the date of delivery and will bear interest payable on
February 1 and August 1 of each year, commencing August 1, 2017. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.
The Series 2016B Bonds will mature February 1 in the years and amounts* as follows:
2018 $480,000 2019 $490,000 2020 $500,000 2021 $510,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2016B Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2016B Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public.
Proposals for the Series 2016B Bonds may contain a maturity schedule providing for a combination of
serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a
price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule
set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities”
in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The Series 2016B Bonds will be issued by means of a book entry system with no physical distribution of
Series 2016B Bonds made to the public. The Series 2016B Bonds will be issued in fully registered form
and one Series 2016B Bond, representing the aggregate principal amount of the Series 2016B Bonds
maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust
Company (“DTC”), New York, New York, which will act as securities depository of the Series 2016B
Bonds. Individual purchases of the Series 2016B Bonds may be made in the principal amount of $5,000
or any multiple thereof of a single maturity through book entries made on the books and records of DTC
and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered
owner of the Series 2016B Bonds. Transfer of principal and interest payments to participants of DTC
will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial owners. The
purchaser, as a condition of delivery of the Series 2016B Bonds, will be required to deposit the
Series 2016B Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay
for the services of the registrar.
OPTIONAL REDEMPTION
The Series 2016B Bonds will not be subject to payment in advance of their respective stated maturity
dates.
SECURITY AND PURPOSE
The Series 2016B Bonds will be general obligations of the City for which the City will pledge its full
faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge
special assessments levied against benefited properties. The proceeds will be used to refund the February
1, 2018 through February 1, 2021 maturities of the City’s Taxable General Obligation Improvement
Bonds, Series 2005A, dated November 1, 2005.
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TAXABILITY OF INTEREST
Interest on the Series 2016B Bonds is includable in gross income for federal income tax purposes and is
includable in taxable net income for Minnesota income tax purposes.
BIDDING PARAMETERS
Proposals shall be for not less than $1,966,140 plus accrued interest, if any, on the total principal amount
of the Series 2016B Bonds. No proposal can be withdrawn or amended after the time set for receiving
proposals unless the meeting of the City scheduled for award of the Series 2016B Bonds is adjourned,
recessed, or continued to another date without award of the Series 2016B Bonds having been made.
Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity
must be 98.0% or greater. Series 2016B Bonds of the same maturity shall bear a single rate from the date
of the Series 2016B Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $19,800 (the “Deposit”) no later than 2:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the lowest bidder (the “purchaser”) will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Series 2016B Bonds will be awarded on the basis of the lowest interest rate to be determined on a
true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The
City's computation of the interest rate of each proposal, in accordance with customary practice, will be
controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters
relating to the receipt of proposals and award of the Series 2016B Bonds, (ii) reject all proposals without
cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein.
- ix -
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Series 2016B Bonds. If the Series 2016B Bonds qualify for municipal bond insurance
and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of
the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to
reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to
the City. All costs associated with the issuance and administration of such policy and associated ratings
and expenses (other than any independent rating requested by the City) shall be paid by the successful
bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2016B
Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the
Series 2016B Bonds.
CUSIP NUMBERS
If the Series 2016B Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Series 2016B Bonds, but neither the failure to print such numbers on any Series 2016B Bond nor any
error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Series 2016B Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
On or about November 23, 2016, the Series 2016B Bonds will be delivered without cost to the purchaser
through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an
approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary
closing papers, including a no-litigation certificate. On the date of settlement, payment for the
Series 2016B Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of
the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of
payment for the Series 2016B Bonds has been made impossible by action of the City, or its agents, the
purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's
non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding
sale of the Series 2016B Bonds, to provide annual reports and notices of certain events. A description of
this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the
Series 2016B Bonds will be conditioned upon receiving evidence of this undertaking at or prior to
delivery of the Series 2016B Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Series 2016B Bonds, and said Preliminary Official Statement will serve as a
nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange
Commission. For copies of the Preliminary Official Statement or for any additional information prior to
sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporate d,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
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A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Series 2016B Bonds, together with any other
information required by law. By awarding the Series 2016B Bonds to an underwriter or underwriting
syndicate, the City agrees that, no more than seven business days after the date of such award, it shall
provide without cost to the sole underwriter or to the senior managing underwriter of the syndicate (the
“Underwriter” for purposes of this paragraph) to which the Series 2016B Bonds are awarded up to
25 copies of the Final Official Statement. The City designates the Underwriter of the syndicate to which
the Series 2016B Bonds are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Such Underwriter agrees that if its proposal is accepted by
the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with all
Participating Underwriters of the Series 2016B Bonds for purposes of assuring the receipt by each such
Participating Underwriter of the Final Official Statement.
Dated September 26, 2016 BY ORDER OF THE CITY COUNCIL
/s/ Julie Bartell
City Clerk
________________________________
* Preliminary; subject to change.
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,600,000* CITY OF LINO LAKES, MINNESOTA GENERAL OBLIGATION TAX ABATEMENT REFUNDING BONDS, SERIES 2016C
(BOOK ENTRY ONLY)
Proposals for the Series 2016C Bonds will be received on Monday, October 24, 2016 until 11:00 A.M .,
Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the
Series 2016C Bonds will be by the City Council at 6:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Series 2016C Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®.
For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal
in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither the City,
its agents nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
neither the City, its agents nor PARITY® shall be responsible for a bidder’s failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Series 2016C Bonds, and PARITY®
is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this Terms
of Proposal shall control. Further information about PARITY®, including any fee charged, may be
obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
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DETAILS OF THE SERIES 2016C BONDS
The Series 2016C Bonds will be dated as of the date of delivery and will bear interest payable on
February 1 and August 1 of each year, commencing August 1, 2017. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.
The Series 2016C Bonds will mature February 1 in the years and amounts* as follows:
2018 $225,000
2019 $245,000
2020 $260,000
2021 $275,000
2022 $290,000
2023 $305,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Series 2016C Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Series 2016C Bonds as that of the original proposal. Gross spread is the differential between the price paid to the City for the new issue and the prices at which the securities are initially offered to the investing public.
Proposals for the Series 2016C Bonds may contain a maturity schedule providing for a combination of
serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at a
price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule
set forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities”
in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The Series 2016C Bonds will be issued by means of a book entry system with no physical distribution of
Series 2016C Bonds made to the public. The Series 2016C Bonds will be issued in fully registered form
and one Series 2016C Bond, representing the aggregate principal amount of the Series 2016C Bonds
maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust
Company (“DTC”), New York, New York, which will act as securities depository of the Series 2016C
Bonds. Individual purchases of the Series 2016C Bonds may be made in the principal amount of $5,000
or any multiple thereof of a single maturity through book entries made on the books and records of DTC
and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered
owner of the Series 2016C Bonds. Transfer of principal and interest payments to participants of DTC
will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial owners. The
purchaser, as a condition of delivery of the Series 2016C Bonds, will be required to deposit the
Series 2016C Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay
for the services of the registrar.
OPTIONAL REDEMPTION
The Series 2016C Bonds will not be subject to payment in advance of their respective stated maturity
dates.
EXTRAORDINARY REDEMPTION
The Series 2016C Bonds are subject to extraordinary redemption on any day in whole, but not in part, at a
redemption price equal to par, plus accrued interest to the redemption date, upon conveyance, lease or
transfer of the YMCA Project to an entity that is not a qualified 501(c)(3) entity under the Internal
Revenue Code of 1986, as amended, or a unit of state or local government, in connection with the
foreclosure of the Mortgage, Security Agreement, Fixture Financing Agreement and Assignment of
- xiii -
Leases and Rents (the “Mortgage”) from the YMCA of Greater Saint Paul, a Minnesota nonprofit
corporation, for the benefit of Patriot Bank Minnesota, provided in conjunction with the issuance of the
City’s Revenue Note (YMCA Project), Series 2006A and Revenue Note (YMCA Project), Series 2006B.
The debt secured by the Mortgage matures June 1, 2021.
SECURITY AND PURPOSE
The Series 2016C Bonds will be general obligations of the City for which the City will pledge its full
faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge tax
abatement revenue derived by the City from specified properties. The proceeds will be used to refund the
February 1, 2018 through February 1, 2023 maturities of the City’s General Obligation Tax Abatement
Bonds, Series 2006C, dated August 15, 2006.
BIDDING PARAMETERS
Proposals shall be for not less than $1,590,400 plus accrued interest, if any, on the total principal amount
of the Series 2016C Bonds. No proposal can be withdrawn or amended after the time set for receiving
proposals unless the meeting of the City scheduled for award of the Series 2016C Bonds is adjourned,
recessed, or continued to another date without award of the Series 2016C Bonds having been made.
Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity
must be 98.0% or greater. Series 2016C Bonds of the same maturity shall bear a single rate from the date
of the Series 2016C Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $16,000 (the “Deposit”) no later than 2:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the lowest bidder (the “purchaser”) will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Series 2016C Bonds will be awarded on the basis of the lowest interest rate to be determined on a
true interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The
City's computation of the interest rate of each proposal, in accordance with customary practice, will be
controlling.
- xiv -
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of matters
relating to the receipt of proposals and award of the Series 2016C Bonds, (ii) reject all proposals without
cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Series 2016C Bonds. If the Series 2016C Bonds qualify for municipal bond insurance
and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of
the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the right to
reject any bid specifying municipal bond insurance, even though such bid may result in the lowest TIC to
the City. All costs associated with the issuance and administration of such policy and associated ratings
and expenses (other than any independent rating requested by the City) shall be paid by the successful
bidder. Failure of the municipal bond insurer to issue the policy after the award of the Series 2016C
Bonds shall not constitute cause for failure or refusal by the successful bidder to accept delivery of the
Series 2016C Bonds.
CUSIP NUMBERS
If the Series 2016C Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Series 2016C Bonds, but neither the failure to print such numbers on any Series 2016C Bond nor any
error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Series 2016C Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
On or about November 23, 2016, the Series 2016C Bonds will be delivered without cost to the purchaser
through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an
approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary
closing papers, including a no-litigation certificate. On the date of settlement, payment for the
Series 2016C Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of
the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of
payment for the Series 2016C Bonds has been made impossible by action of the City, or its agents, the
purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's
non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding
sale of the Series 2016C Bonds, to provide annual reports and notices of certain events. A description of
this undertaking is set forth in the Official Statement. The purchaser's obligation to purchase the
Series 2016C Bonds will be conditioned upon receiving evidence of this undertaking at or prior to
delivery of the Series 2016C Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Series 2016C Bonds, and said Preliminary Official Statement will serve as a
nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange
Commission. For copies of the Preliminary Official Statement or for any additional information prior to
sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
- xv -
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Series 2016C Bonds, together with any other
information required by law. By awarding the Series 2016C Bonds to an underwriter or underwriting
syndicate, the City agrees that, no more than seven business days after the date of such award, it shall
provide without cost to the sole underwriter or to the senior managing underwriter of the syndicate (the
“Underwriter” for purposes of this paragraph) to which the Series 2016C Bonds are awarded up to
25 copies of the Final Official Statement. The City designates the Underwriter of the syndicate to which
the Series 2016C Bonds are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Such Underwriter agrees that if its proposal is accepted by
the City, (i) it shall accept designation and (ii) it shall enter into a contractual relationship with all
Participating Underwriters of the Series 2016C Bonds for purposes of assuring the receipt by each such
Participating Underwriter of the Final Official Statement.
Dated September 26, 2016 BY ORDER OF THE CITY COUNCIL
/s/ Julie Bartell
City Clerk
____________________________
* Preliminary; subject to change.
- 1 -
OFFICIAL STATEMENT
CITY OF LINO LAKES, MINNESOTA
$1,420,000*
GENERAL OBLIGATION WATER UTILITY REVENUE BONDS, SERIES 2016A
$1,980,000*
TAXABLE GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2016B
$1,600,000*
GENERAL OBLIGATION TAX ABATEMENT REFUNDING BONDS, SERIES 2016C
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Lino Lakes, Minnesota (the
“City”) and its issuance of $1,420,000* General Obligation Water Utility Revenue Bonds, Series 2016A
(the “Series 2016A Bonds”); $1,980,000* Taxable General Obligation Improvement Refunding Bonds,
Series 2016B (the “Series 201B Bonds”); and $1,600,000* General Obligation Tax Abatement
Refunding Bonds, Series 2016C (the “Series 2016C Bonds” and, together with the Series 2016A Bonds
and the Series 2016B Bonds, the “Bonds”). The Bonds are general obligations of the City for which it
pledges its full faith and credit and power to levy direct general ad valorem taxes. Additional sources of
security for the Bonds are discussed herein.
Inquiries may be directed to Ms. Sarah Cotton, Finance Director, City of Lino Lakes, 600 Town Center
Parkway, Lino Lakes, Minnesota 55014, by telephoning (651) 982-2410, or by e-mailing
sarah.cotton@ci.lino-lakes.mn.us. Inquiries may also be made to Springsted Incorporated, 380 Jackson
Street, Suite 300, St. Paul, Minnesota 55101-2887, by telephoning (651) 223-3000, or by e-mailing
bond_services@springsted.com.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 promulgated by the Securities
and Exchange Commission, pursuant to the Securities Exchange Act of 1934, as the same may be
amended from time to time, and official interpretations thereof (the “Rule”), pursuant to the resolutions
awarding the sale of the Bonds (the “Resolutions”), the City has entered into an undertaking (the
“Undertaking”) for the benefit of holders including beneficial owners of the Bonds to provide certain
financial information and operating data relating to the City to the Electronic Municipal Market Access
system (“EMMA”) annually, and to provide notices of the occurrence of certain events enumerated in the
Rule to EMMA or the Municipal Securities Rulemaking Board (the “MSRB”). The specific nature of the
Undertaking, as well as the information to be contained in the annual report or the notices of material
events, is set forth in the Undertaking to be executed and delivered at the time the Bonds are delivered in
substantially the form attached hereto as Appendix II.
- 2 -
To the best of its knowledge, the City has complied for the past five years in all material respects in
accordance with the terms of its previous continuing disclosure undertakings entered into pursuant to the
Rule. However, in the interest of full disclosure, the City notes the following:
Within the past five years, Moody’s Investors Service has changed the credit ratings of certain
municipal bond insurance firms, which resulted in the change of the insured ratings of certain debt
issues of the City. Material event notices regarding certain insurance rating changes have not been
filed; however, the information was publicly available through other sources.
A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds
or under any provisions of the Resolutions (although holders will have any other available remedy at law
or in equity subject to certain limitations). Nevertheless, such a failure must be reported in accordance
with the Rule and must be considered by any broker, dealer or municipal securities dealer before
recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure
may adversely affect the transferability and liquidity of the Bonds and their market price.
THE BONDS
General Description
The Bonds are dated as of the date of delivery and will mature annually on February 1 as set forth on the
inside front cover of this Official Statement. The Bonds are issued in book entry form. Interest on the
Bonds is payable on February 1 and August 1 of each year, commencing August 1, 2017. Interest will be
payable to the holder (initially Cede & Co.) registered on the books of the Registrar as of the fifteenth day
of the calendar month next preceding such interest payment date. Interest will be computed on the basis
of a 360-day year of twelve 30-day months. Principal of and interest on the Bonds will be paid as
described in the section herein entitled “Book Entry System.” U.S. Bank National Association, St. Paul,
Minnesota will serve as Registrar for the Bonds, and the City will pay for registrar services.
Redemption Provisions
Thirty days’ written notice of redemption shall be given to the registered owner(s) of the applicable series
of Bonds. Failure to give such written notice to any registered owner of the applicable series of Bonds or
any defect therein shall not affect the validity of any proceedings for the redemption of the applicable
series of Bonds. All applicable series of Bonds or portions thereof called for redemption will cease to
bear interest after the specified redemption date, provided funds for their redemption are on deposit at the
place of payment.
Optional Redemption
The City may elect on February 1, 2025, and on any day thereafter, to prepay Series 2016A Bonds due on
or after February 1, 2026. Redemption may be in whole or in part and if in part at the option of the City
and in such manner as the City shall determine. If less than all the Series 2016A Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid.
DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and
each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed.
All prepayments shall be at a price of par plus accrued interest.
The Series 2016B Bonds and the Series 2016C Bonds will not be subject to optional prepayment in
advance of their respective stated maturity dates.
- 3 -
Extraordinary Redemption
The Series 2016C Bonds are subject to extraordinary redemption on any day in whole, but not in part, at a
redemption price equal to par, plus accrued interest to the redemption date, upon conveyance, lease or
transfer of the YMCA Project to an entity that is not a qualified 501(c)(3) entity under the Internal
Revenue Code of 1986, as amended, or a unit of state or local government, in connection with the
foreclosure of the Mortgage, Security Agreement, Fixture Financing Agreement and Assignment of
Leases and Rents (the “Mortgage”) from the YMCA of Greater Saint Paul, a Minnesota nonprofit
corporation, for the benefit of Patriot Bank Minnesota, provided in conjunction with the issuance of the
City’s Revenue Note (YMCA Project), Series 2006A and Revenue Note (YMCA Project), Series 2006B.
The debt secured by the Mortgage matures June 1, 2021.
Book Entry System
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository for the
Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
(DTC’s partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered certificate will be issued for each maturity of each series of the Bonds, each in
the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries) that
DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing
Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (“Indirect Participants”). The DTC Rules applicable to its Participants are on file
with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each
Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Bonds are to be accomplished
by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in the Bonds, except
in the event that use of the book-entry system for the Bonds is discontinued.
- 4 -
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in
the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bonds; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain
and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The
Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose
accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or
such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information
from the City or its agent on the payable date in accordance with their respective holdings shown on
DTC’s records. Payments by Participants to Beneficial Owners will be governed by standing instructions
and customary practices, as is the case with securities held for the accounts of customers in bearer form or
registered in “street name,” and will be the responsibility of such Participant and not of DTC or the City,
subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as may
be requested by an authorized representative of DTC) is the responsibility of the City or its agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to City or its agent. Under such circumstances, in the event that a successor depository
is not obtained, certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a
successor securities depository). In that event, certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been obtained from
sources that the City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
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THE SERIES 2016A BONDS
Authority and Purpose The Series 2016A Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. The
proceeds of the Series 2016A Bonds will be used to finance improvements to the City’s water system.
Sources and Uses of Funds The composition of the Series 2016A Bonds is estimated to be as follows: Sources of Funds:
Principal Amount $1,420,000 Total Sources of Funds $1,420,000 Uses of Funds:
Deposit to Project Fund $1,379,880
Costs of Issuance 28,050
Allowance for Discount Bidding 12,070
Total Uses of Funds $1,420,000
Security and Financing
The Series 2016A Bonds will be general obligations of the City for which the City will pledge its full
faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net
revenues of its water utility for repayment of the Series 2016A Bonds. The City does not anticipate the
need to levy taxes for repayment of the 2016A Bonds. Pursuant to Minnesota Statutes, Chapter 444, and the Resolution awarding the sale of the Series 2016A
Bonds, the City will covenant to impose and collect charges for the service, use, availability and
connection to the water utility to produce net revenues in amounts sufficient to support the operation of
the water utility and to pay 105% of debt service on obligations to which it has pledged its water utility
revenues, including the Series 2016A Bonds. The City is required to annually review the budget of the
water utility to determine whether current rates and charges are sufficient and to adjust such rates and
charges as necessary.
THE SERIES 2016B BONDS
Authority and Purpose The Series 2016B Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. The
Series 2016B Bonds have been structured as a current refunding, and are being issued to achieve debt
service savings. The proceeds of the Series 2016B Bonds will be used to redeem the February 1, 2018
through February 1, 2021 maturities (the “Series 2005A Refunded Maturities”) of the City’s Taxable
General Obligation Improvement Bonds, Series 2005A, dated November 1, 2005 (the “Series 2005A
Bonds”). It is anticipated that the Series 2005A Refunded Maturities will be called and prepaid at a price
of par plus accrued interest on February 1, 2017, which is within 90 days of settlement of the
Series 2016B Bonds.
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Sources and Uses of Funds
The composition of the Series 2016B Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $1,980,000
Total Sources of Funds $1,980,000
Uses of Funds:
Deposit to Current Refunding Fund $1,935,000
Costs of Issuance 31,140
Allowance for Discount Bidding 13,860
Total Uses of Funds $1,980,000
Security and Financing
The Series 2016B Bonds will be general obligations of the City for which the City will pledge its full
faith and credit and power to levy direct general ad valorem taxes. The City will pledge special
assessments levied against benefited properties originally pledged to the Series 2005A Bonds for
repayment of the Series 2016B Bonds, which will be sufficient to pay 105% of the debt service due on the
Series 2016B Bonds in each year. The City does not anticipate the need to levy taxes for repayment of
the Series 2016B Bonds.
THE SERIES 2016C BONDS
Authority and Purpose
The Series 2016C Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. The
Series 2016C Bonds have been structured as a current refunding, and are being issued to achieve debt
service savings. On July 24, 2006, the City issued its General Obligation Tax Abatement Bonds,
Series 2006C in the original principal amount of $2,460,000 (the “Series 2006C Bonds”). The proceeds
of the Series 2006C Bonds were loaned to the YMCA of Greater Saint Paul (now known as Young Men’s
Christian Association of the Greater Twin Cities) (the “YMCA”) to help finance the construction of an
approximately 42,000 square-foot recreational facility located at 7690 Village Drive in the City and
finance the acquisition and installation of equipment (the “YMCA Project”), which is owned and operated
by the YMCA. The YMCA Project was also financed with the proceeds of the issuance of the Revenue
Note (YMCA Project), Series 2006A, issued by the City in the amount of $3,500,000, and Revenue Note
(YMCA Project), Series 2006B, issued by the City in the amount of $500,000. The two revenue notes are
conduit debt issued by the City for the benefit of the YMCA and the YMCA is responsible for paying all
debt service on the revenue notes.
The proceeds of the Series 2016C Bonds will be used to redeem the February 1, 2018 through February 1,
2023 maturities (the “Series 2006C Refunded Maturities”) of the Series 2006C Bonds. It is anticipated
that the Series 2006C Refunded Maturities will be called and prepaid at a price of par plus accrued
interest on February 1, 2017, which is within 90 days of settlement of the Series 2016C Bonds.
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Sources and Uses of Funds
The composition of the Series 2016C Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $1,600,000
Total Sources of Funds $1,600,000
Uses of Funds:
Deposit to Current Refunding Fund $1,565,000
Costs of Issuance 25,400
Allowance for Discount Bidding 9,600
Total Uses of Funds $1,600,000
Security and Financing
The Series 2016C Bonds are general obligations of the City for which the City pledges its full faith and
credit and power to levy direct general ad valorem taxes. The City will pledge tax abatement revenue
derived by the City from specified properties for repayment of the Series 2016C Bonds, which will be
sufficient to pay 105% of the debt service due on the Series 2016C Bonds in each year. The City does not
anticipate the need to levy taxes for repayment of the Series 2016C Bonds.
FUTURE FINANCING
The City does not anticipate issuing any additional long-term general obligation debt within the next
90 days.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the
City's ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of
Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this
Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has
not examined nor attempted to examine or verify any of the financial or statistical statements or data
contained in this Official Statement and will express no opinion with respect thereto. Legal opinions in
substantially the forms set out in Appendix I herein will be delivered at closing.
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TAX EXEMPTION – SERIES 2016A BONDS
In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under federal and Minnesota laws,
regulations, rulings and decisions in effect on the date of issuance of the Series 2016A Bonds, interest on
the Series 2016A Bonds is excludable from gross income for federal income tax purposes, and, to the
same extent, from taxable net income of individuals, estates and trusts for Minnesota income tax
purposes. Interest on the Series 2016A Bonds is includable in taxable income of corporations and
financial institutions for purposes of the Minnesota franchise tax.
Certain provisions of the Internal Revenue Code of 1986, as amended (the “Code”), impose continuing
requirements that must be met after the issuance of the Series 2016A Bonds in order for interest thereon
to be and remain excludable from federal gross income and, to the same extent, from Minnesota taxable
net income. Noncompliance with such requirements by the City may cause the interest on the
Series 2016A Bonds to be includable in gross income for purposes of federal income taxation and, to the
same extent, includable in taxable net income for purposes of Minnesota income taxation, retroactive to
the date of issuance of the Series 2016A Bonds, irrespective in some cases of the date on which such
noncompliance is ascertained. No provision has been made for redemption of Series 2016A Bonds or for
an increase in the interest rate on the Series 2016A Bonds in the event that interest on the Series 2016A
Bonds becomes includable in federal gross income or Minnesota taxable income.
TAX EXEMPTION – SERIES 2016C BONDS
The Series 2016C Bonds are “private activity bonds” within the meaning of Section 141(a) of the Internal
Revenue Code of 1986, as amended (the “Code”), but bear interest not includable in gross income for
purposes of federal income taxation under Section 103(a) of the Code, pursuant to the exemption for
“qualified 501(c)(3) bonds” provided in Section 145 of the Code. Interest on the Series 2016C Bonds is
not includable in the net taxable income of individuals, trusts, or estates for State of Minnesota income
tax purposes. Interest on the Series 2016C Bonds is not an item of tax preference includable in
“alternative minimum taxable income” for purposes of the federal alternative minimum tax applicable to
taxpayers under Section 55 of the Code or the Minnesota alternative minimum tax applicable to
individuals, estates, and trusts. Interest on the Series 2016C Bonds is includable in “adjusted current
earnings” of corporations in determining alternative minimum taxable income for purposes of the federal
alternative minimum tax imposed on corporations. Interest on the Series 2016C Bonds is includable in
the taxable income of corporations and financial institutions for purposes of the Minnesota franchise tax.
Certain provisions of the Code impose continuing requirements that must be met after the issuance of the
Series 2016C Bonds in order for interest thereon to be and remain excludable from federal gross income
and, to the same extent, from Minnesota taxable net income. Noncompliance with such requirements by
the YMCA may cause the interest on the Series 2016C Bonds to be includable in gross income for federal
income taxation and, to the same extent, includable in taxable net income for purposes of Minnesota
income taxation, retroactive to the date of issuance of the Series 2016C Bonds irrespective in some cases
of the date on which such noncompliance is ascertained. No provision has been made for redemption of
the Series 2016C Bonds in the event that the interest on the Series 2016C Bonds become includable in
federal gross income or Minnesota taxable net income. However, the Series 2016C Bonds are subject to
extraordinary redemption on any day in whole, but not in part, at a redemption price equal to par, plus
accrued interest to the redemption date, upon conveyance, lease or transfer in other mode of the YMCA
Project to an entity that is not a qualified 501(c)(3) entity under the Code, or a unit of state or local
government, in connection with the foreclosure of the Mortgage, Security Agreement, Fixture Financing
Agreement and Assignment of Leases and Rents from the YMCA of Greater Saint Paul, a Minnesota
nonprofit corporation, for the benefit of Patriot Bank Minnesota, provided in conjunction with the
issuance of the City’s Revenue Note (YMCA Project), Series 2006A and Revenue Note (YMCA Project),
Series 2006B.
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RELATED TAX CONSIDERATIONS - SERIES 2016A BONDS AND SERIES 2016C BONDS
Interest on the Series 2016A Bonds and the Series 2016C Bonds is not an item of tax preference
includable in alternative minimum taxable income for purposes of the federal alternative minimum tax
applicable to all taxpayers or the Minnesota alternative minimum tax applicable to individuals, estates and
trusts, but is includable in adjusted current earnings in determining the federal alternative minimum
taxable income of corporations for purposes of the federal alternative minimum tax. Interest on the
Series 2016A Bonds and the Series 2016C Bonds may be includable in the income of a foreign
corporation for purposes of the branch profits tax imposed by Section 884 of the Code and is includable
in the net investment income of foreign insurance companies for purposes of Section 842(b) of the Code.
In the case of an insurance company subject to the tax imposed by Section 831 of the Code, the amount
which otherwise would be taken into account as losses incurred under Section 832(b)(5) of the Code must
be reduced by an amount equal to fifteen percent of the interest on the Series 2016A Bonds and the
Series 2016C Bonds that is received or accrued during the taxable year. Section 86 of the Code requires
recipients of certain Social Security and railroad retirement benefits to take into account, in determining
the taxability of such benefits, receipts or accruals of interest on the Series 2016A Bonds and the
Series 2016C Bonds.
Passive investment income, including interest on the Series 2016A Bonds and the Series 2016C Bonds,
may be subject to federal income taxation under Section 1375 of the Code for a Subchapter S corporation
that has Subchapter C earnings and profits at the close of the taxable year if greater than twenty-five
percent of the gross receipts of such Subchapter S corporation is passive investment income. Section 265
of the Code denies a deduction for interest on indebtedness incurred or continued to purchase or carry the
Series 2016A Bonds and the Series 2016C Bonds or, in the case of a financial institution, that portion of
the holder’s interest expense allocated to interest on the Series 2016A Bonds and the Series 2016C Bonds,
except with respect to certain financial institutions (within the meaning of Section 265(b) of the Code).
The above is not a comprehensive list of all federal tax consequences that may arise from the receipt of
interest on the Series 2016A Bonds and the Series 2016C Bonds. The receipt of interest on the
Series 2016A Bonds and the Series 2016C Bonds may otherwise affect the federal or State of Minnesota
income tax liability of the recipient based on the particular taxes to which the recipient is subject and the
particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such
consequences. All prospective purchasers of the Series 2016A Bonds and the Series 2016C Bonds are
advised to consult their own tax advisors as to the tax consequences of, or tax considerations for,
purchasing or holding the Series 2016A Bonds and the Series 2016C Bonds.
Original Issue Premium
Certain maturities of the Series 2016A Bonds or the Series 2016C Bonds (collectively, the “Premium
Bonds”) may be sold to the public at an amount in excess of the stated redemption price at maturity. Such
excess of the purchase price of such Premium Bonds over the stated redemption price at maturity
constitutes original issue premium with respect to such Premium Bonds. A purchaser of a Premium Bond
must amortize any original issue premium over the term of such Premium Bond using constant yield
principles, based on the purchaser’s yield to maturity. As original issue premium is amortized, the
purchaser’s basis in such Premium Bond is reduced by a corresponding amount, resulting in an increase
in the gain (or a decrease in the loss) to be recognized for federal income tax purposes upon a sale or
disposition of such Premium Bond prior to its maturity. Even though the purchaser’s basis is reduced, no
federal income tax deduction is allowed. Purchasers of any Premium Bonds at a premium, whether at the
time of initial issuance or subsequent thereto, should consult with their own tax advisors with respect to
the determination and treatment of premium for federal income tax purposes and with respect to state and
local tax consequences of owning such Premium Bonds.
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Holders of Premium Bonds should consult their tax advisors with respect to computation and accrual of
original issue discount and with respect to the state and local tax consequences of owning Premium
Bonds. Original Issue Discount Certain maturities of the Series 2016A Bonds or the Series 2016C Bonds (collectively, the “Discount
Bonds”) may be sold at a discount from the principal amount payable on such Discount Bonds at
maturity. Under Section 1288 of the Code, original issue discount on tax-exempt bonds accrues on a
compound basis. The amount of original issue discount that accrues to an owner of a Discount Bond
during any accrual period generally equals (i) the issue price of such Discount Bond plus the amount of
original issue discount accrued in all prior accrual periods, multiplied by (ii) the yield to maturity of such
Discount Bond (determined on the basis of compounding at the close of each accrual period and properly
adjusted for the length of the accrual period), less (iii) any interest payable on such Discount Bond during
such accrual period. The amount of original issue discount so accrued in a particular accrual period will
be considered to be received ratably on each day of the accrual period, will not be includable in gross
income for federal income tax purposes or in taxable net income of individuals, estates or trusts for
Minnesota income tax purposes, and will increase the owner’s tax basis in such Discount Bond. Any gain
realized by an owner from a sale, exchange, payment or redemption of a Discount Bond will be treated as
gain from the sale or exchange of such Discount Bond. Legislative Proposals Bond Counsel’s opinion is given as of its date and Bond Counsel assumes no obligation to update, revise,
or supplement such opinion to reflect any changes in facts or circumstances or any changes in law that
may hereafter occur. Proposals are regularly introduced in both the United States House of
Representatives and the United States Senate that, if enacted, could alter or affect the tax-exempt status on
municipal bonds. For example, both President Obama and the Chairman of the Committee on Ways and
Means of the U.S. House of Representatives have proposed legislation that effectively would impose a
partial tax on otherwise tax exempt interest for certain higher income taxpayers. The likelihood of
adoption of this or any other such legislative proposal relating to tax-exempt bonds cannot be reliably
predicted. If enacted into law, current or future proposals may have a prospective or retroactive effect
and could affect the value or marketability of tax-exempt bonds (including the Series 2016A Bonds and
the Series 2016C Bonds). Prospective purchasers of the Series 2016A Bonds and the Series 2016C Bonds
should consult their own tax advisors regarding the impact of any such change in law. The above is not a comprehensive list of all federal tax consequences which may arise from the receipt of
interest on the Series 2016A Bonds and the Series 2016C Bonds. The receipt of interest on the
Series 2016A Bonds or the Series 2016C Bonds may otherwise affect the federal or state income tax
liability of the recipient based on the particular taxes to which the recipient is subject and the particular
tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such
consequences. All prospective purchasers of the Series 2016A Bonds and the Series 2016C Bonds are
encouraged to consult with their personal tax advisors as to the tax consequences of, or tax
considerations for, purchasing or holding the Series 2016A Bonds and the Series 2016C Bonds.
BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS – SERIES 2016A BONDS
AND SERIES 2016C BONDS
The City will designate the Series 2016A Bonds and the Series 2016C Bonds as “qualified tax-exempt
obligations” for purposes of Section 265(b)(3) of the Code, relating to the ability of financial institutions
to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and
acquiring tax-exempt obligations.
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TAXABILITY OF INTEREST – SERIES 2016B BONDS
Interest on the Series 2016B Bonds is includable in gross income for federal income tax purposes and is
includable in taxable net income for Minnesota income tax purposes.
RATINGS
Application for ratings of the Bonds has been made to S&P Global Ratings (“S&P”), 55 Water Street,
New York, New York. If ratings are assigned, they will reflect only the opinion of S&P. Any
explanation of the significance of the ratings may be obtained only from S&P.
There is no assurance that a rating, if assigned, will continue for any given period of time, or that such
rating will not be revised, suspended or withdrawn, if, in the judgment of S&P, circumstances so warrant.
A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the
Bonds.
MUNICIPAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota
(“Springsted”), as municipal advisor in connection with certain aspects of the issuance of the Bonds. In
preparing this Official Statement, Springsted has relied upon governmental officials, and other sources,
who have access to relevant data to provide accurate information for this Official Statement, and
Springsted has not been engaged, nor has it undertaken, to independently verify the accuracy of such
information. Springsted is not a public accounting firm and has not been engaged by the City to compile,
review, examine or audit any information in this Official Statement in accordance with accounting
standards. Springsted is an independent advisory firm, registered as a municipal advisor, and is not
engaged in the business of underwriting, trading or distributing municipal securities or other public
securities.
Springsted is under common ownership with Springsted Investment Advisors, Inc. (“SIA”), an investment
adviser registered in the states where services are provided. SIA may provide investment advisory
services to the City from time to time in connection with the investment of proceeds from the Bonds as
well as advice with respect to portfolio management and investment policies for the City. SIA pays
Springsted, as municipal advisor, a referral fee from the fees paid to SIA by the City.
CERTIFICATION
The City has authorized the distribution of the Preliminary Official Statement for use in connection with
the initial sale of the Bonds and a Final Official Statement following award of the Bonds. The
Purchaser(s) will be furnished with a certificate signed by the appropriate officers of the City stating that
the City examined each document and that, as of the respective date of each and the date of such
certificate, each document did not and does not contain any untrue statement of material fact or omit to
state a material fact necessary, in order to make the statements made therein, in light of the circumstances
under which they were made, not misleading.
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CITY PROPERTY VALUES
Trend of Values(a)
Assessment/ Assessor’s Market Value Adjusted
Collection Estimated Sales Economic Homestead Taxable Taxable Net
Year Market Value Ratio(b) Market Value(c) Exclusion Market Value Tax Capacity
2015/16 $1,807,065,400 92.1% $1,961,793,363 $85,498,525 $1,699,288,883 $19,819,213
2014/15 1,798,481,600 95.8 1,875,798,422 84,278,943 1,694,366,064 19,669,590
2013/14 1,625,143,100 91.9 1,766,853,912 97,474,237 1,509,921,169 17,766,193
2012/13 1,636,167,000 98.4 1,633,430,925 96,404,391 1,519,857,242 17,782,398
2011/12 1,752,697,700 100.3 1,748,980,302 87,979,240 1,640,455,854 19,235,909 (a) For a description of the Minnesota property tax system, see Appendix III. (b) Sales Ratio Study for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics-imv.aspx. (c) Economic market values for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics-imv.aspx. Source: Anoka County, Minnesota, September 2016, except as otherwise noted.
2015/16 Adjusted Taxable Net Tax Capacity: $19,819,213*
Real Estate:
Residential Homestead $13,844,176 75.1%
Commercial/Industrial
and Public Utility 2,609,482 14.2
Residential Non-Homestead 1,304,919 7.1
Agricultural 283,242 1.5
Seasonal Recreational 39,992 0.2
Personal Property 359,006 1.9 2015/16 Net Tax Capacity $18,440,817 100.0%
Less: Captured Tax Increment (261,525)
Contribution to Fiscal Disparities (1,115,822)
Plus: Distribution from Fiscal Disparities 2,755,743 2015/16 Adjusted Taxable Net Tax Capacity $19,819,213
* Excludes mobile home valuation of $12,988.
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Ten of the Largest Taxpayers in the City
2015/16 Net
Taxpayer Type of Property Tax Capacity
Target Corporation Retail $ 202,952
Xcel Energy Utility 190,733
Biynah Industrial Partners LLC(a) Industrial 183,332
Molin Concrete Products Co. Concrete Products 107,982
Gargaro Properties Inc. Industrial 104,374
Taylor Corporation Promotional/Printing Products 99,648
Kohls Department Store Retail 99,092
Marmon/Keystone Corp. Industrial 74,216
Minnegasco Inc. Utility 72,162
Lino Lakes Assisted Living LLC Apartments 63,729
Total $1,198,220(b)
(a) In February 2016, Biynah Industrial Partners, LLC acquired the property formerly owned by Lino Lakes
Reality LLC. (b) Represents 6.0% of the City's 2015/16 adjusted taxable net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit and Debt Margin*
Legal Debt Limit (3% of 2015/16 Estimated Market Value) $ 54,211,962
Less: Outstanding Debt Subject to Limit (11,055,250)
Legal Debt Margin as of November 23, 2016 $ 43,156,712
* The legal debt margin is referred to statutorily as the “Net Debt Limit” and may be increased by debt service
funds and current revenues which are applicable to the payment of debt in the current fiscal year.
NOTES: Certain types of debt are not subject to the legal debt limit. See Appendix III – Debt Limitations. The 2013 Minnesota Legislature clarified the definition of estimated market value and established it as
the basis for the calculation of the Net Debt Limit. Previously, Net Debt Limit was calculated on
taxable market value. A large contributing factor to the change was to offset the effect of the Market
Value Homestead Exclusion implemented by the 2012 Minnesota Legislature, which had a significant
impact on taxable market values.
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General Obligation Debt Supported Solely by Taxes*
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-23-16
11-1-06 $2,990,000 CIP Refunding 2-1-2018 $ 830,000
11-15-12 1,580,000 Improvements 2-1-2024 1,275,000
2-15-14 495,000 Equipment Certificates 12-31-2017 335,000
2-1-15 198,250 Equipment Certificates 12-31-2018 198,250
5-28-15 2,635,000 Street Reconstruction 2-1-2031 2,635,000
8-25-15 963,000 Equipment Certificates 12-31-2020 963,000
2-1-16 469,000 Equipment Certificates 12-31-2019 469,000
Total $6,705,250
* These issues are subject to the legal debt limit.
General Obligation Special Assessment Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-23-16
11-1-05 $5,550,000 Taxable Improvements 2-1-2017 $ 425,000(a)
12-9-09 4,260,000 Improvements 2-1-2025 2,960,000(b)
6-1-10 465,000 Improvement Refunding 2-1-2020 195,000
11-15-12 435,000 Improvement Refunding 2-1-2019 220,000
7-15-13 615,000 Taxable Improvements 2-1-2024 495,000
11-20-14 1,510,000 Improvements 2-1-2026 1,510,000
11-23-16 1,980,000 Taxable Improvements Refunding
(the Series 2016B Bonds) 2-1-2021 1,980,000
Total $7,785,000
(a) Excludes the Series 2005A Refunded Maturities. (b) Anoka County, Minnesota (the “County”) issued $6,680,000 General Obligation Bonds, Series 2009F to
finance a portion of the construction of an interchange at I-35E and County State Highway 14 (Main Street)
and a bridge on I-35E. The City is responsible for a portion of the debt service on this issue pursuant to a joint
powers agreement between the County and the City. The principal shown represents only the City’s portion of
the issue.
General Obligation Tax Increment Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-23-16
7-15-07 $4,215,000 Tax Increment 2-1-2024 $2,025,000
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General Obligation Tax Abatement Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-23-16
8-15-06 $2,460,000 Tax Abatement 2-1-2017 $ 190,000*
5-28-15 460,000 Tax Abatement 2-1-2026 460,000
11-23-16 1,600,000 Tax Abatement Refunding
(the Series 2016C Bonds) 2-1-2023 1,600,000
Total $2,250,000
* Excludes the Series 2006C Refunded Maturities.
General Obligation Utility Revenue Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-23-16
8-15-06 $ 570,000 Water and Sewer Revenue 2-1-2017 $ 70,000
6-1-10 535,000 Water Revenue Refunding 2-1-2020 230,000
11-20-14 1,135,000 Water Revenue 2-1-2025 1,030,000
11-23-16 1,420,000 Water Utility Revenue
(the Series 2016A Bonds) 2-1-2027 1,420,000
Total $2,750,000
Lease Obligations*
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-23-16
6-18-15 $4,350,000 Fire Station 4-1-2036 $4,350,000
* These bonds were issued by the Lino Lakes Economic Development Authority, Minnesota (the “Authority”) and
are payable from annual appropriation lease payments made by the City to the Authority pursuant to a lease
agreement. This issue is subject to the legal debt limit.
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Estimated Calendar Year Debt Service Payments Including the Bonds
and Excluding the Refunded Maturities
G.O. Debt Supported G.O. Special
Solely by Taxes Assessment Debt
Principal Principal
Year Principal & Interest Principal & Interest(a) 2016 (at 11-23) $ 409,000 $ 443,836 (Paid) (Paid)
2017 1,288,000 1,409,863 $1,250,000 $1,420,122
2018 1,147,250 1,237,345 1,330,000 1,474,663
2019 665,000 737,003 1,365,000 1,485,495
2020 516,000 578,673 1,310,000 1,403,780
2021 320,000 374,548 1,290,000 1,355,089
2022 320,000 369,188 560,000 600,814
2023 330,000 373,539 510,000 531,466
2024 340,000 377,499 100,000 103,286
2025 175,000 207,638 35,000 36,208
2026 175,000 203,919 35,000 35,403
2027 230,000 254,363
2028 190,000 209,400
2029 195,000 209,588
2030 200,000 209,150
2031 205,000 208,075 Total $6,705,250(b) $7,403,627 $7,785,000 $8,446,326
G.O. Tax G.O. Tax
Increment Debt Abatement Debt
Principal Principal
Year Principal & Interest Principal & Interest(c)
2016 (at 11-23) (Paid) (Paid) (Paid) (Paid)
2017 $ 400,000 $ 473,926 $ 235,000 $ 261,406
2018 190,000 252,126 270,000 296,438
2019 200,000 254,326 290,000 313,126
2020 215,000 261,026 305,000 324,445
2021 230,000 267,126 320,000 335,331
2022 245,000 272,504 335,000 345,755
2023 265,000 282,016 350,000 355,686
2024 280,000 285,775 45,000 47,575
2025 50,000 51,625
2026 50,000 50,563
Total $2,025,000 $2,348,855 $2,250,000 $2,381,950
(a) Includes the Series 2016B Bonds at an assumed average annual interest rate of 1.46%. (b) 82.2% of this debt will be retired within ten years. (c) Includes the Series 2016C Bonds at an assumed average annual interest rate of 1.29%, and excludes the
Series 2006C Refunded Maturities.
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Estimated Calendar Year Debt Service Payments Including the Bonds
and Excluding the Refunded Maturities (Continued)
G.O. Utility
Revenue Debt Lease Obligations
Principal Principal
Year Principal & Interest(a) Principal & Interest
2016 (at 11-23) (Paid) (Paid) - 0 - (Paid)
2017 $ 235,000 $ 270,635 $ 165,000 $ 299,238
2018 295,000 331,993 170,000 300,888
2019 300,000 333,099 175,000 302,438
2020 315,000 343,658 175,000 298,938
2021 255,000 279,564 180,000 299,488
2022 255,000 275,986 185,000 299,013
2023 260,000 277,005 190,000 298,388
2024 265,000 277,564 200,000 302,538
2025 270,000 277,661 205,000 301,463
2026 150,000 153,863 210,000 300,238
2027 150,000 151,313 215,000 298,863
2028 220,000 297,338
2029 230,000 300,588
2030 235,000 298,613
2031 245,000 301,106
2032 250,000 298,063
2033 260,000 298,800
2034 270,000 298,200
2035 280,000 297,200
2036 290,000 295,800
Total $2,750,000(b) $2,972,341 $4,350,000(c) $5,987,201
(a) Includes the Series 2016A Bonds at an assumed average annual interest rate of 1.45%. (b) 94.5% of this debt will be retired within ten years. (c) 42.6% of this debt will be retired within ten years.
(The Balance of This Page Has Been Intentionally Left Blank)
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Overlapping Debt
2015/16 Debt Applicable to
Adjusted Taxable Est. G.O. Debt Tax Capacity in City
Taxing Unit(a) Net Tax Capacity As of 11-23-16(b) Percent Amount
Anoka County $ 316,505,881 $111,714,098(c)(d) 6.3% $ 7,037,988
Anoka County Library 305,381,875 480,000 6.5 31,200
ISD No. 12 (Centennial) 30,542,292 91,428,685 45.2 41,325,766
ISD No. 624 (White Bear Lake) 72,379,318 86,195,000 3.3 2,844,435
ISD No. 831 (Forest Lake) 51,330,073 90,530,000 7.0 6,337,100
Metropolitan Council 3,475,846,085 17,525,000(e) 0.6 105,150
Metropolitan Transit 2,767,556,165 177,190,000 0.7 1,240,330
Total $58,921,969
(a) Only those units with outstanding general obligation debt are shown here. (b) Excludes general obligation tax and aid anticipation certificates and revenue-supported debt. (c) Anoka County, Minnesota (the “County”) issued $6,680,000 General Obligation Bonds, Series 2009F to
finance a portion of the construction of an interchange at I-35E and County State Highway 14 (Main Street)
and a bridge on I-35E. The City is currently responsible for $2,960,000 of the debt service on this issue
pursuant to a joint powers agreement between the County and the City. (d) Includes certificates of participation. (e) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes
certificates of participation.
Debt Ratios*
G.O. G.O. Direct &
Direct Debt Overlapping Debt
To 2015/16 Estimated Market Value ($1,807,065,400) 1.28% 4.54%
Per Capita - (20,519 - 2015 MN Demographer Estimate) $1,127 $3,998
* Excludes general obligation utility revenue debt.
(The Balance of This Page Has Been Intentionally Left Blank)
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CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates for a City Resident in Independent School District No. 12 (Centennial)
2015/16
For
2011/12 2012/13 2013/14 2014/15 Total Debt Only
Anoka County(a) 41.615% 44.761% 43.613% 38.443% 39.398% 4.772%
City of Lino Lakes 42.894 46.774 46.683 43.770 46.019 10.994
ISD No. 12
(Centennial)(b) 40.010 43.681 46.186 36.562 36.426 22.527
Special Districts(c) 6.222 6.590 6.338 5.701 5.901 2.237
Total 130.741% 141.806% 142.820% 124.476% 127.744% 40.530%
(a) Includes Anoka County Library and County/City Radio. (b) Independent School District No. 12 (Centennial) also has a 2015/16 tax rate of 0.18997% spread on the market
value of property in support of an excess operating levy. (c) Special districts include Metropolitan Council, Metropolitan Transit District, Metropolitan Mosquito Control,
Rice Creek Watershed, and Anoka County Railroad Authority.
NOTE: This table includes only net tax capacity based rates. Certain other tax rates are based on market value.
See Appendix III.
Tax Levies and Collections
Collected During Collected and/or Abated
Net Collection Year As of 6-2-16
Levy/Collect Levy* Amount Percent Amount Percent
2015/16 $9,053,413 (In Process of Collection)
2014/15 8,680,907 $8,626,115 99.4% $8,655,295 99.7%
2013/14 8,292,159 8,225,357 99.2 8,274,054 99.8
2012/13 8,211,868 8,109,317 98.8 8,198,150 99.8
2011/12 8,223,605 8,088,787 98.4 8,213,730 99.9
* The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy is the
basis for computing tax capacity rates. See Appendix III.
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FUNDS ON HAND
As of August 31, 2016
General Fund $ 5,401,634
Special Revenue Funds 298,376
Capital Project Funds 9,317,197
Enterprise Fund 13,315,700
Debt Service Funds 1,951,118
Agency Funds 994,437 Total Cash and Investments $31,278,462
INVESTMENTS
As of August 31, 2016, the City had total investments of $31,278,462, invested in the following manner:
Percent of
Portfolio
Checking/CDs/money market $16,244,124 51.9%
U.S. treasuries and agencies 491,706 1.6
Government mutual funds 1,773,166 5.7
Bonds 12,769,466 40.8
Total $31,278,462 100.0%
In October 1997, the City adopted an investment policy that is in accordance with Minnesota
Statutes 118A. Some highlights of the City’s investment policy are as follows:
1. The primary objective is the safety of the principal. Investments shall be undertaken in a
manner that seeks to ensure the preservation of capital in the overall portfolio. The objective
will be to mitigate credit risks and interest rate risk.
a. Investments will be limited to those investments specified in Minnesota
Statutes 118A.
b. Annually appointing the financial institutions, brokers/dealers, intermediaries and
advisors.
c. Diversifying the investment portfolio so that potential losses on individual securities
will be minimized.
d. Investing funds in primarily shorter-term securities.
2. The secondary objective is to have the portfolio remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
3. The third objective is to attain a market rate of return through budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
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4. The Director of Finance and his/her appointed employees in case of unavailability are
authorized to manage the investment program. A system of internal controls shall be followed
and shall be designed to prevent losses from theft or misuse to provide reasonable assurance
that the objectives are met.
5. The Director of Finance will prepare an investment report monthly for the City Administrator.
6. All City Funds must be invested with financial institutions authorized to provide investment
services per statute 118A.06, with representatives who are licensed and with institutions which
have a minimum capital requirement of $5 million and at least five years of operation.
GENERAL INFORMATION CONCERNING THE CITY
The City is located in southeast Anoka County, approximately 20 miles north of the City of St. Paul. The
City is part of the Minneapolis/St. Paul metropolitan area and covers an area of approximately 33 square
miles (21,120 acres).
Population
The City’s population trend is shown below.
Percent
Population Change
2015 MN Demographer Estimate 20,519 1.5%
2010 U.S. Census 20,216 20.4
2000 U.S. Census 16,791 90.7
1990 U.S. Census 8,807 77.3
1980 U.S. Census 4,966 --
Sources: Minnesota State Demographic Center, http://mn.gov/admin/demography/ and
United States Census Bureau, http://www.census.gov/.
The City’s population by age group for the past four years is as follows:
Data Year/
Report Year 0-17 18-34 35-64 65 and Over
2015/16 5,233 4,843 9,940 1,613
2014/15 5,320 4,676 9,981 1,451
2013/14 5,373 4,461 9,881 1,327
2012/13 5,626 4,039 9,695 1,214
Source: Claritas, Inc. and The Nielsen Company.
Transportation
Interstate 35E, Interstate 35W, and Minnesota Highway 49 traverse the community.
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Major Employers
Approximate
Number
Employer Product/Service of Employees
State of Minnesota Correctional Facility Medium security prison 460
Target Corporation Retail 260
Curtis 1000 Promotional/printing products 200
Molin Concrete Products Co. Concrete products 120
Distribution Alternatives Warehousing/distribution 120
Rehbein Transit Inc. Bus transportation 100
Anoka County Juvenile Center Juvenile detention center 86
Custom Manufacturing Industrial Mold Manufacturing 80
Nol-Tec Systems, Inc. Pneumatic conveyors 70
City of Lino Lakes Government 69*
* Includes full- and part-time employees.
Source: City of Lino Lakes.
Labor Force Data
Annual Average August
2012 2013 2014 2015 2016
Labor Force:
Anoka County 188,011 189,194 189,650 191,057 192,692
Minneapolis/St. Paul
MSA 1,893,165 1,909,871 1,923,003 1,938,857 1,957,550
State of Minnesota 2,958,272 2,971,523 2,982,750 3,010,366 3,014,302
Unemployment Rate:
Anoka County 5.9% 5.0% 4.1% 3.6% 3.8%
Minneapolis/St. Paul
MSA 5.5 4.7 3.9 3.4 3.6
State of Minnesota 5.6 4.9 4.2 3.7 3.8
Source: Minnesota Department of Employment and Economic Development,
https://apps.deed.state.mn.us/lmi/laus. 2016 data are preliminary.
Retail Sales and Effective Buying Income (EBI)
City of Lino Lakes
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2015/16 $151,324 $600,358 $80,238
2014/15 153,754 592,415 77,538
2013/14 171,931 506,632 69,507
2012/13 182,474 525,345 70,098
2011/12 238,304 510,912 69,035
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Anoka County
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2015/16 $4,428,876 $8,946,250 $60,388
2014/15 4,175,734 8,685,587 58,438
2013/14 4,005,487 7,741,875 53,659
2012/13 3,865,879 7,544,008 52,310
2011/12 4,354,918 7,472,110 53,022
The 2015/16 Median Household EBI for the State of Minnesota was $52,458. The 2015/16 Median
Household EBI for the United States was $46,738.
Source: Claritas, Inc. and The Nielsen Company.
Permits Issued by the City
New Single New Total Value*
Family Residential Commercial/Industrial (All Permits)
Year Number Value Number Value
2016 (to 8-31) 63 $17,410,100 1 $ 260,493 $24,854,686
2015 47 12,807,908 2 6,196,000 27,324,068
2014 33 9,046,060 2 1,111,000 13,812,706
2013 30 7,666,210 5 4,505,422 18,337,053
2012 26 6,366,995 0 0 10,751,626
2011 34 8,511,974 0 0 11,192,264
2010 31 7,461,225 0 0 11,295,493
2009 28 6,000,984 0 0 9,586,160
2008 29 6,514,509 2 1,506,213 15,852,780
2007 92 17,421,761 3 9,467,625 30,539,559
* In addition to building permits, the total value includes all other permits issued by the City (i.e. heating,
lighting, plumbing, roof replacement, etc.).
Source: City of Lino Lakes.
Recent Development
Economic Development
The economic development effort established by the City Council in 1993 has begun to have an impact in
the diversity of the City’s tax base. Since 2001, four industrial parks have been established, and the
Apollo Business Park on Interstate 35W has been occupied. Marshan Industrial Park on Lake Drive and
Clearwater Creek Development Center on Interstate 35E have also brought new industrial users to the
City. Lino Lakes Marketplace, located at Lake Drive and Apollo Drive in the Town Center area, has
continued to develop. The commercial retail center includes Target; Kohl’s Department Store;
Dairy Queen Grill ‘n Chill; Discount Tire; a branch of Wells Fargo Bank, National Association; and
SMW Credit Union. Three retail buildings of approximately 6,000 square-feet each have been added to
the area.
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The City initiated an Alternative Urban Area-wide Review (AUAR) in 2005 of more than 4,000 acres in
the northeast quadrant of the City, including the property in the Interstate 35E corridor, to assess the
impact of future development scenarios in this area. The AUAR provides clear direction for future
development regarding environmental and transportation improvements that will be needed, relieving
development interests of project-by-project environmental assessments. The City and Anoka County,
with financial assistance from the American Recovery and Reinvestment Act, reconstructed the Interstate
35E/County Road 14 interchange in 2010-2011. Recent project approvals include an 8,000 square-foot
convenience store, a 13,000 square-foot liquor store, and a new McDonald’s restaurant located along the
Interstate 35E corridor.
Development activities continued to increase in 2015 and 2016. Residential permits were the highest
since 2007 and commercial development showed signs of recovery as new construction activities and
development planning emerged. The City recently approved preliminary plans for a 876-unit residential
development by Mattamy Homes, Inc. In addition, DR Horton, Inc. entered into a purchase agreement
with the City for 11 acres of land in the Legacy at Woods Edge development, and the 112-unit residential
development received final approval in September 2016. Developers also broke ground on the 56-acre
Clearwater Creek Business Park. This development includes the construction of a 402,000 square-foot
building providing warehousing and fulfillment services.
Residential Development
The following table shows projected lot development in existing subdivisions for single-family homes:
As of August 2016
Subdivision Total Lots Lots Remaining
Century Farm North 6th Addition 29 29
Foxborough 57 4
Northpointe 22 3
Northpointe 2nd Addition 40 17
Northpointe 3rd Addition 41 29
Northpointe 4th Addition 31 31
Preserve of Lino Lakes 31 7
Saddle Club 28 16
Saddle Club 2nd Addition 17 15
Turnberry Crossing (Marshan Townhomes 2nd) 23 7
Woods Edge 60 60
Financial Institutions*
City residents are served by First Resource Bank, which had total deposits of $36,758,000 as of June 30,
2016. In addition, branch offices of Farmers & Merchants Savings Bank; Wells Fargo Bank, National
Association; and U.S. Bank National Association are located throughout the City.
* This does not purport to be a comprehensive list. Source: Federal Deposit Insurance Corporation, http://www5.fdic.gov/idasp/main.asp.
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Health Care Services
The following is a summary of health care facilities located near the City:
Facility Location No. of Beds Mercy Hospital City of Coon Rapids 271 hospital beds
27 infant bassinets
Park River Estates Care Center City of Coon Rapids 99 nursing home beds
Birchwood Health Care Center City of Forest Lake 110 nursing home beds
St. John’s Hospital – Health East
Care System City of Maplewood 184 hospital beds
44 infant bassinets
Ramsey County Care Center City of Maplewood 164 nursing home beds
Maplewood Care Center City of Maplewood 130 nursing home beds
Good Samaritan Society City of Maplewood 81 nursing home beds
Fairview Lakes Medical Center City of Wyoming 61 hospital beds
12 infant bassinets
Source: Minnesota Department of Health, http://www.health.state.mn.us/.
Education
Public Education The following districts serve the residents of the City: 2015/16*
District Grades Enrollment ISD No. 12 (Centennial) PK-12 6,542
ISD No. 624 (White Bear Lake) PK-12 8,313
ISD No. 831 (Forest Lake) PK-12 6,595 * 2016/17 enrollment figures are not yet available.
Non-Public Education City residents are also served by the following private schools: 2015/16*
School Grades Enrollment Frassati Catholic Academy K-8 267
St. Peter K-6 193
Liberty Classical Academy K-5 152
Magnuson Christian K-8 88
White Bear Montessori K-3 31
Marantha School K-4 26 * 2016/17 enrollment figures are not yet available.
Source: Minnesota Department of Education, www.education.state.mn.us.
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GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
The City was incorporated as a village in 1955, became a statutory city on January 1, 1974, and is
governed by a Home Rule Charter as adopted on January 12, 1982. The City is governed by a Mayor and
four Council members. The Mayor is elected to a two-year term of office and Council members are
elected to overlapping four-year terms.
The following individuals comprise the current City Council:
Expiration of Term Jeff Reinert Mayor December 31, 2017
William Kusterman Council Member December 31, 2017
Melissa Maher Council Member December 31, 2019
Michael Manthey Council Member December 31, 2019
Rob Rafferty Council Member December 31, 2017
The City Administrator, Mr. Jeffrey Karlson, is the Chief Executive Officer of the City. Mr. Karlson has
been with the City since August 2010. The City's Finance Director is Ms. Sarah Cotton, who has been
with the City since August 2015. The City’s Community Development Director is Mr. Michael Grochala,
who has been with the City since June 2001. The City has 65 regular full-time and 4 regular part-time employees.
Services
Police protection is provided by 27 sworn police officers. Effective January 2016, fire protection is
provided by the Lino Lakes Public Safety Fire Division, which is comprised of a Deputy Director of Fire
Operations, 23 cross-trained police officers, and approximately 20 paid-on-call firefighters. The City has
a class 5 insurance rating. The City has established a Comprehensive Plan to direct all areas of growth within the City. The plan
was approved by the Metropolitan Council in 1981, and was amended in 1987, 1990, 1991, 1992, 2001,
2006, and 2011. Eighteen parks and playgrounds are maintained by the City and include ball fields, hockey and skating
rinks, playground and picnic facilities, and 26 miles of trails. Anoka County also owns a 5,500-acre park
and an 18-hole golf course within the City. The City currently provides municipal sewer and water through the operation of six wells, two water
towers, and 13 lift stations. The City currently has 4,685 users of its sewer system and 4,520 users of its
water system. The City has established a policy that provides that municipal water services will be
extended only to sewered areas.
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Labor Contracts
The status of labor contracts in the City is as follows:
No. of Expiration Date
Bargaining Unit Employees of Current Contract
LELS -- Patrol 19 December 31, 2017
LELS -- Sargent 5 December 31, 2017
49ers – Public Works 15 December 31, 2017
AFSCME 20 December 31, 2017
Subtotal 59
Non-unionized employees 10
Total employees 69
Employee Pensions
All full-time and certain part-time employees of the City 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 cost-sharing multiple-employer retirement plans. GERF members belong to either
the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic
members are not. All new members must participate in the Coordinated Plan. All police officers, fire
fighters and peace officers who qualify for membership by statute are covered by the PEPFF. The City’s
contributions to GERF and PEPFF are equal to the contractually required contributions for each year as
set by State Statute, and are as follows for the past five years:
GERF PEPFF
2015 $182,102 $393,560
2014 162,934 314,426
2013 160,392 290,737
2012 164,317 315,541
2011 187,186 285,356
For more information regarding the liability of the City with respect to its employees, please reference
“Note 6, Pension Plans” of the City’s Comprehensive Annual Financial Report for fiscal year ended
December 31, 2015, an excerpt of which is included as Appendix IV of this Official Statement.
Sources: City’s Comprehensive Annual Financial Reports.
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GASB 68
In June 2012, the Government Accounting Standards Board (GASB) issued Statement No. 68,
Accounting and Financial Reporting for Pensions (GASB 68) and related GASB Statement No. 71,
Pension Transition for Contributions Made Subsequent to the Measurement Date-an amendment to
GASB 68, effective for the City’s fiscal year ended December 31, 2015. These statements revise existing
standards for measuring and reporting pension liabilities for pension plans provided to City employees
and require recognition of a liability equal to the City’s proportionate share of net pension liability, which
is measured as the total pension liability less the amount of the pension plan's fiduciary net position. The
pronouncements require the restatement of the City’s December 31, 2014 net position of its governmental
activities. Please reference “Note 20, Prior Period Adjustment Due To Change In Accounting Principle”
of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2015, an
excerpt of which is included as Appendix IV of this Official Statement.
For the fiscal year ended December 31, 2015, the City’s proportionate shares of the GERF and PEPFF
pension costs as of the measurement date of June 30, 2015 were 0.00410% and 0.249%, respectively; and
the City’s net pension liability for the GERF and PEPFF were $2,124,833 and $2,829,223, respectively.
For more information regarding GASB 68 with respect to the City, please reference “Note 6, Pension
Plans” of the City’s Comprehensive Annual Financial Report for fiscal year ended December 31, 2015, an
excerpt of which is included as Appendix IV of this Official Statement.
Additional and detailed information about GERF’s net position is available in a separately-issued PERA
financial report, which may be obtained at www.mnpera.org; by writing to PERA at 60 Empire Drive
#200, St. Paul, Minnesota, 55103-2088; or by calling 1-800-652-9026.
Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Post-employment Benefits Other Than Pensions (GASB 45), which
addresses how state and local governments must account for and report their obligations related to post-
employment healthcare and other non-pension benefits (referred to as Other Post-Employment Benefits or
“OPEB”). The City provides benefits for retirees as required by Minnesota Statutes. Active employees who retire
from the City when over age 50 and with 20 years of service may continue coverage for 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 responsible for the total premium cost; therefore, the City’s greatest
liability under GASB 45 comes through an implicit rate subsidy, which is the additional cost of health
insurance to current employees and the City as a result of the higher cost of providing health insurance to
retirees. As of December 31, 2015, there were approximately 48 active participants and 6 retired
participants receiving benefits from the City’s health plans.
The City funds its OPEB obligation on a pay-as-you-go basis. For fiscal year ended December 31, 2015,
the City contributed $28,984 to the plan.
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Components of the City’s annual OPEB cost for the year ended December 31, 2015, the amount actually
contributed to the plan, and changes in the City’s net OPEB obligation to the plan are as follows:
Annual required contribution $ 31,590
Interest on net OPEB obligation 972
Adjustment to annual required contribution (3,749)
Annual OPEB cost (expense) $ 28,813
Contributions made (28,984)
Increase in net OPEB obligation $ (171)
Net OPEB obligation – beginning of year 91,023 Net OPEB obligation – end of year $ 90,852
Funded status of the City’s OPEB as reported in the actuarial reports received to-date:
Unfunded UAAL as
Actuarial Actuarial a percentage
Actuarial Actuarial Value Accrued Accrued of Annual
Valuation Date of Assets Liability Liability (UAAL) Covered Payroll
January 1, 2014 -0- $547,626 $547,626 10.4%
January 1, 2011 -0- 474,770 474,770 9.7
January 1, 2008 -0- 329,191 329,191 6.8
Required contributions as reported in the actuarial reports received to-date:
Fiscal OPEB % of Annual OPEB OPEB
Year Ended Cost Cost Contributed Obligation
December 31, 2015 $28,814 99.4% $83,969
December 31, 2014 29,192 73.6 91,667
December 31, 2013 27,437 77.6 83,969
December 31, 2012 29,610 65.2 77,821
December 31, 2011 27,917 65.9 72,808
For more information regarding the City’s OPEB plan with respect to its employees, please reference
“Note 19, Other Postemployment Benefit Plan” of the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2015, an excerpt of which is included as Appendix IV of this Official
Statement.
Sources: City’s Comprehensive Annual Financial Reports.
- 30 -
General Fund Budget Summary
2015 Budget 2015 Actual 2016 Budget
Revenues:
Taxes $7,580,578 $7,489,040 $7,108,572
Licenses and Permits 514,250 551,202 493,983
Intergovernmental 568,000 649,611 657,000
Special Assessments 15,000 14,008 15,000
Charges for Services 267,550 277,423 289,550
Fines and Forfeits 120,500 127,803 150,500
Investment Earnings 30,000 27,004 30,000
Change in Market Value 0 (9,578) 0
Administrative Charges 30,000 54,689 30,000
Miscellaneous 172,999 168,952 200,805 Total Revenues $9,298,877 $9,350,154 $8,975,410 Expenditures:
General Government $1,633,778 $1,613,710 $1,880,283
Public Safety 4,501,205 4,409,579 4,407,187
Public Works 1,366,619 1,135,020 1,453,664
Parks and Recreation 858,572 828,084 817,596
Conservation of Natural Resources 201,785 191,597 195,201
Community Development 413,430 422,935 457,563
Contingency 0 0 125,500 Total Expenditures $8,975,389 $8,600,925 $9,336,994 Revenues Over (Under) Expenditures $ 323,488 $ 749,229 $ (361,584) Other Financing Sources (Uses):
Transfers In $ 480,894 $ 480,894 $ 478,084
Transfers Out (589,500) (590,245) (539,500) Total Other Financing Sources (Uses) $ (108,606) $ (109,351) $ (61,416) Net Increase (Decrease) in Fund Balance $ 214,882 $ 639,878 $ (423,300) Fund Balance – Beginning of Year $5,306,535 $5,306,535 $5,946,413
Fund Balance – December 31 $5,521,417 $5,946,413 $5,523,413
Sources: City’s Comprehensive Annual Financial Reports and 2016 Budget.
Major General Fund Revenue Sources
Revenue 2011 2012 2013 2014 2015
Taxes $7,499,109 $7,183,444 $7,187,801 $7,147,977 $7,489,040
Intergovernmental 590,392 462,023 500,963 512,064 649,611
Licenses and Permits 322,030 319,172 431,654 407,681 551,202
Charges for Services 367,037 309,777 269,185 313,826 277,423
Miscellaneous 149,978 104,819 114,390 131,485 168,952
Fines and Forfeits 154,020 155,956 119,079 119,715 127,803
Sources: City’s Comprehensive Annual Financial Reports.
APPENDIX I
I-1
PROPOSED FORMS OF LEGAL OPINIONS
$__________
City of Lino Lakes, Minnesota
General Obligation Water Utility Revenue Bonds
Series 2016A
We have acted as bond counsel to the City of Lino Lakes, Minnesota (the “Issuer”) in connection
with the issuance by the Issuer of its General Obligation Water Utility Revenue Bonds, Series 2016A (the
“Bonds”), originally dated November 23, 2016, and issued in the original aggregate principal amount of
$________. In such capacity and for the purpose of rendering this opinion we have examined certified
copies of certain proceedings, certifications and other documents, and applicable laws as we have deemed
necessary. Regarding questions of fact material to this opinion, we have relied on certified proceedings
and other certifications of public officials and other documents furnished to us without undertaking to
verify the same by independent investigation. Under existing laws, regulations, rulings and decisions in
effect on the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from net revenues of the
water system of the Issuer, but if necessary for the payment thereof ad valorem taxes are required by law
to be levied on all taxable property of the Issuer, which taxes are not subject to any limitation as to rate or
amount.
3. Interest on the Bonds is excludable from gross income of the recipient for federal income
tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and
estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation
of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax
imposed on individuals, trusts and estates. However, such interest is taken into account in determining
adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
certain corporations and is subject to Minnesota franchise taxes on corporations (including financial
institutions) measured by income. The opinion set forth in this paragraph is subject to the condition that
the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be,
excludable from gross income for federal income tax purposes and from taxable net income for
Minnesota income tax purposes. The Issuer has covenanted to comply with all such requirements.
Failure to comply with certain of such requirements may cause interest on the Bonds to be included in
gross income for federal income tax purposes and taxable net income for Minnesota income tax purposes
retroactively to the date of issuance of the Bonds. We express no opinion regarding tax consequences
arising with respect to the Bonds other than as expressly set forth herein.
I-2
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated November 23, 2016 at Minneapolis, Minnesota
I-3
$__________
City of Lino Lakes, Minnesota
Taxable General Obligation Improvement Refunding Bonds
Series 2016B
We have acted as bond counsel to the City of Lino Lakes, Minnesota (the “Issuer”) in connection
with the issuance by the Issuer of its Taxable General Obligation Improvement Refunding Bonds,
Series 2016B (the “Bonds”), originally dated November 23, 2016, and issued in the original aggregate
principal amount of $________. In such capacity and for the purpose of rendering this opinion we have
examined certified copies of certain proceedings, certifications and other documents, and applicable laws
as we have deemed necessary. Regarding questions of fact material to this opinion, we have relied on
certified proceedings and other certifications of public officials and other documents furnished to us
without undertaking to verify the same by independent investigation. Under existing laws, regulations,
rulings and decisions in effect on the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from special
assessments, but if necessary for the payment thereof ad valorem taxes are required by law to be levied on
all taxable property of the Issuer, which taxes are not subject to any limitation as to rate or amount.
3. We express no opinion as to the status of the interest on the Bonds for federal or state
income tax purposes.
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated November 23, 2016 at Minneapolis, Minnesota.
I-4
$____________
City of Lino Lakes, Minnesota
General Obligation Tax Abatement Refunding Bonds
Series 2016C
We have acted as bond counsel to the City of Lino Lakes, Minnesota (the “Issuer”) in connection
with the issuance by the Issuer of its General Obligation Tax Abatement Refunding Bonds, Series 2016C
(the “Bonds”), originally dated November 23, 2016, and issued in the original aggregate principal amount
of $___________. In such capacity and for the purpose of rendering this opinion we have examined
certified copies of certain proceedings, certifications and other documents, and applicable laws as we
have deemed necessary. Regarding questions of fact material to this opinion, we have relied on certified
proceedings and other certifications of public officials and other documents furnished to us without
undertaking to verify the same by independent investigation. Under existing laws, regulations, rulings
and decisions in effect on the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from tax abatement
revenues, but if necessary for the payment thereof ad valorem taxes are required by law to be levied on all
taxable property of the Issuer, which taxes are not subject to any limitation as to rate or amount.
3. The Bonds are “private activity bonds” within the meaning of Section 141(a) of the
Internal Revenue Code of 1986, as amended (the “Code”), but bear interest not includable in gross
income for purposes of federal income taxation under Section 103(a) of the Code, pursuant to the
exemption for “qualified 501(c)(3) bonds” provided in Section 145 of the Code. Interest on the Bonds is
not includable in the net taxable income of individuals, trusts, or estates for State of Minnesota income
tax purposes. Interest on the Bonds is not an item of tax preference includable in “alternative minimum
taxable income” for purposes of the federal alternative minimum tax imposed on individuals and
corporations and the Minnesota alternative minimum tax applicable to individuals, estates, and trusts.
Interest on the Bonds is taken into account in determining adjusted current earnings for the purpose of
computing the federal alternative minimum tax imposed on certain corporations and is subject to the State
of Minnesota franchise tax imposed on corporations and financial institutions. The opinion set forth in
this paragraph is subject to the condition that the Issuer and the Young Men’s Christian Association of the
Greater Twin Cities, a Minnesota nonprofit corporation doing business as the YMCA of the Greater Twin
Cities and successor-in-interest to the YMCA of Greater Saint Paul (the “YMCA”), comply with all
requirements of the Code that must be satisfied subsequent to the issuance of the Bonds in order that
interest thereon be, or continue to be, excludable from gross income for federal income tax purposes and
from taxable net income for Minnesota income tax purposes. The Issuer and the YMCA have covenanted
to comply with all such requirements. Failure to comply with certain of such requirements may cause
interest on the Bonds to be included in gross income for federal income tax purposes and taxable net
income for Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express
I-5
no opinion regarding other federal or state tax consequences arising with respect to ownership of the
Bonds or caused by the receipt or accrual of interest thereon.
In rendering the foregoing opinion, we have relied upon (i) representations of the YMCA as to
the application of the proceeds of the Bonds and the nature, use, cost, and economic life of the facilities
refinanced with the proceeds of the Bonds; and (ii) the opinion of Gray, Plant, Mooty, Mooty & Bennett,
P.A., Minneapolis, Minnesota, as counsel for the YMCA, that the YMCA has been duly incorporated as a
Minnesota nonprofit corporation and is in good standing under the laws of the State of Minnesota, that the
YMCA is an organization described in Section 501(c)(3) of the Code and is exempt from federal income
taxation under Section 501(a) of the Code, and that no substantial portion of the facilities refinanced with
the proceeds of the Bonds are to be used in an unrelated trade or business activity of the YMCA.
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated November 23, 2016 at Minneapolis, Minnesota.
APPENDIX II
II-1
CONTINUING DISCLOSURE CERTIFICATE
$____________
City of Lino Lakes, Minnesota
General Obligation Water Utility Revenue Bonds
Series 2016A
$__________
City of Lino Lakes, Minnesota
Taxable General Obligation
Improvement Refunding Bonds
Series 2016B
$__________
City of Lino Lakes, Minnesota
General Obligation Tax Abatement Refunding Bonds
Series 2016C
CONTINUING DISCLOSURE CERTIFICATE
November 23, 2016
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the
City of Lino Lakes, Minnesota (the “Issuer”) in connection with the issuance of its (i) General Obligation
Water Utility Revenue Bonds, Series 2016A (the “Series 2016A Bonds”), in the original aggregate principal
amount of $___________; (ii) Taxable General Obligation Improvement Refunding Bonds, Series 2016B
(the “Series 2016B Bonds”), in the original aggregate principal amount of $________; and (iii) General
Obligation Tax Abatement Refunding Bonds, Series 2016C (the “Series 2016C Bonds,” and collectively with
the Series 2016A Bonds and the Series 2016B Bonds, the “Bonds”), in the original aggregate principal
amount of $___________. The Bonds are being issued pursuant to resolutions adopted by the City Council
of the Issuer (the “Resolutions”). On the date hereof, the Series 2016A Bonds are being delivered to
_________________ (the “Series 2016A Bonds Purchaser”), the Series 2016B Bonds are being delivered to
_______________ (the “Series 2016B Bonds Purchaser”), and the Series 2016C Bonds are being delivered to
______________ (the “Series 2016C Bonds Purchaser”). Pursuant to the Resolutions, the Issuer has
covenanted and agreed to provide continuing disclosure of certain financial information and operating data
and timely notices of the occurrence of certain events. The Issuer hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (as defined herein)
in complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the
Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
“Annual Report” means any annual report provided by the Issuer pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” means annual financial statements of the Issuer, prepared in
accordance with GAAP as prescribed by GASB.
II-2
“Bonds” means, collectively, the Series 2016A Bonds, the Series 2016B Bonds, and the
Series 2016C Bonds.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
“Final Official Statement” means the deemed Final Official Statement, dated ___________, 2016,
which constitutes the final official statement delivered in connection with the Bonds, which is available from
the MSRB.
“Fiscal Year” means the fiscal year of the Issuer.
“GAAP” means generally accepted accounting principles for governmental units as prescribed by
GASB.
“GASB” means the Governmental Accounting Standards Board.
“Holder” means the person in whose name a Bond is registered or a beneficial owner of such a Bond.
“Issuer” means the City of Lino Lakes, Minnesota, which is the obligated person with respect to the
Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board located at 1300 I Street NW,
Suite 1000, Washington, DC 20005.
“Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the
Purchasers) required to comply with the Rule in connection with the offering of the Bonds.
“Purchasers” means, collectively, the Series 2016A Bonds Purchaser, the Series 2016B Bonds
Purchaser, and the Series 2016C Bonds Purchaser.
“Repository” means EMMA, or any successor thereto designated by the SEC.
“Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act
of 1934, as the same may be amended from time to time, and including written interpretations thereof by the
SEC.
“SEC” means Securities and Exchange Commission, and any successor thereto.
“Series 2016A Bonds” means the Issuer’s General Obligation Water Utility Revenue Bonds,
Series 2016A, issued in the original aggregate principal amount of $____________.
“Series 2016A Bonds Purchaser” means __________________.
“Series 2016B Bonds” means the Issuer’s Taxable General Obligation Improvement Refunding
Bonds, Series 2016B, issued in the original aggregate principal amount of $_______________.
II-3
“Series 2016B Bonds Purchaser” means ____________________.
“Series 2016C Bonds” means the Issuer’s General Obligation Tax Abatement Refunding Bonds,
Series 2016C, issued in the original aggregate principal amount of $____________.
“Series 2016C Bonds Purchaser” means ___________________.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide to the Repository, as soon as available, but not later than twelve
(12) months after the end of the Fiscal Year commencing with the year that ends December 31, 2016, an
Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The
Annual Report may be submitted as a single document or as separate documents comprising a package, and
may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that
the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual
Report and will be submitted as soon as available.
(b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date
required in subsection (a), the Issuer shall send a notice of that fact to the Repository and the MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual Report the
name and address of each Repository.
Section 4. Content of Annual Reports. The Issuer’s Annual Report shall contain or incorporate
by reference the following sections of the Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
In addition to the items listed above, the Annual Report shall include Audited Financial Statements
submitted in accordance with Section 3 of this Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been submitted
to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must
also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated
by reference.
Section 5. Reporting of Material Events.
(a) This Section 5 shall govern the giving of notice of the occurrence of any of the following
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
II-4
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB), or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material; and
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material.
(b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB
within ten (10) business days of the occurrence of the Material Event.
(c) Unless otherwise required by law and subject to technical and economic feasibility, the
Issuer shall employ such methods of information transmission as shall be requested or recommended by the
designated recipients of the Issuer’s information.
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the
Resolutions and this Disclosure Certificate shall terminate with respect to the Series 2016A Bonds Purchaser
upon the legal defeasance, the redemption in full of all Series 2016A Bonds or payment in full of all
Series 2016A Bonds. The Issuer’s obligations under the Resolutions and this Disclosure Certificate shall
terminate with respect to the Series 2016B Bonds Purchaser upon the legal defeasance, the redemption in full
of all Series 2016B Bonds or payment in full of all Series 2016B Bonds. The Issuer’s obligations under the
Resolutions and this Disclosure Certificate shall terminate with respect to the Series 2016C Bonds Purchaser
upon the legal defeasance, the redemption in full of all Series 2016C Bonds or payment in full of all
Series 2016C Bonds.
II-5
Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent
to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may
discharge any such agent, with or without appointing a successor dissemination agent.
Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or
this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally
recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a
violation of the Rule. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule
and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer
delivers to the Repository an opinion of nationally recognized bond counsel to the effect that those portions
of the Rule which impose the continuing disclosure requirements of the Resolutions and the execution and
delivery of this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply
to the Bonds. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule and this
Disclosure Certificate may be amended without the consent of the Holders of the Bonds, but only upon the
delivery by the Issuer to the Repository of the proposed amendment and an opinion of nationally recognized
bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the
compliance with the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in
this Disclosure Certificate or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of
occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate,
the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in
any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate,
including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its
obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate
shall not be deemed an event of default with respect to the Bonds and the sole remedy under this Disclosure
Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an
action to compel performance.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the Participating Underwriters, and the Holders from time to time of the Bonds, and shall create no
rights in any other person or entity.
(The remainder of this page is intentionally left blank.)
II-6
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities effective as
of the date and year first written above.
CITY OF LINO LAKES, MINNESOTA
Mayor
City Administrator
(Signature Page to Continuing Disclosure Certificate)
APPENDIX III
III-1
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
Following is a summary of certain statutory provisions relative to tax levy procedures, tax payment and
credit procedures, and the mechanics of real property valuation. The summary does not purport to be
inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the
complete text of applicable statutes, rules and regulations of the State of Minnesota.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be
appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions,
all property is valued at its market value, which is the value the assessor determines to be the price the
property to be fairly worth, and which is referred to as the “Estimated Market Value.” The 2013
Minnesota Legislature established the Estimated Market Value as the value used to calculate a
municipality’s legal debt limit.
Economic Market Value. The Economic Market Value is the value of locally assessed real property
(Assessor’s Estimated Market Value) divided by the sales ratio as provided by the State of Minnesota
Department of Revenue plus the estimated market value of personal property, utilities, railroad, and
minerals.
Taxable Market Value. The Taxable Market Value is the value that Net Tax Capacity is based on, after
all reductions, limitations, exemptions and deferrals.
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied, extended and
collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type
of property classification against the Taxable Market Value. Class rate percentages vary depending on
the type of property as shown on the last page of this Appendix. The formulas and class rates for
converting Taxable Market Value to Net Tax Capacity represent a basic element of the State's property
tax relief system and are subject to annual revisions by the State Legislature. Property taxes are the sum
of the amounts determined by (i) multiplying the Net Tax Capacity by the tax capacity rate, and
(ii) multiplying the referendum market value by the market value rate.
Market Value Homestead Exclusion. In 2011, the Market Value Homestead Exclusion Program (MVHE)
was implemented to offset the elimination of the Market Value Homestead Credit Program that provided
relief to certain homesteads. The MVHE reduces the taxable market value of a homestead with an
Assessor’s Estimated Market Value up to $413,800 in an attempt to result in a property tax similar to the
effective property tax prior to the elimination of the homestead credit. The MVHE applies to property
classified as Class 1a or 1b and Class 2a, and causes a decrease in the City’s aggregate Taxable Market
Value, even if the Assessor’s Estimated Market Value on the same properties did not decline.
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the
various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the
county auditor within five (5) working days after December 20 of the year preceding the collection year.
A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer
on or before the first business day in March.
III-2
The county treasurer is responsible for collecting all property taxes within the county. Real estate and
personal property tax statements are mailed out by March 31. One-half (1/2) of the taxes on real property
is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid
by their due date are assessed a penalty on homestead property of 2% until May 31 and increased to 4%
on June 1. The penalty on nonhomestead property is assessed at a rate of 4% until May 31 and increased
to 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the
collection year for unpaid real property taxes. In the case of the second installment of real property taxes
due October 15, a penalty of 2% on homestead property and 4% on nonhomestead property is assessed.
The penalty for homestead property increases to 6% on November 1 and again to 8% on December 1.
The penalty for nonhomestead property increases to 8% on November 1 and again to 12% on
December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a
penalty of 8% attaches to the unpaid tax. However, personal property that is owned by a tax-exempt
entity, but is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property
tax penalties as real property.
On the first business day of January of the year following collection all delinquencies are subject to an
additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien
judgment with the district court. By March 20 the county auditor files a publication of legal action and a
mailing of notice of action to delinquent parties. Those property interests not responding to this notice
have judgment entered for the amount of the delinquency and associated penalties. The amount of the
judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to
the adjusted prime rate charged by banks but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have three years (3) to redeem the property.
After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in
trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent
thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any
remaining balance in most cases being divided on the following basis: county - 40%; town or city - 20%;
and school district - 40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of Minnesota's
property tax relief system are: property tax levy reduction aids; the homestead credit refund and the
renter’s property tax refund, which relate property taxes to income and provide relief on a sliding income
scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases.
The homestead credit refund, the renter’s property tax refund, and targeted credits are reimbursed to the
taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids,
local governmental aid, equalization aid, county program aid and disparity reduction aid.
Debt Limitations
All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory “net
debt” limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the
amount remaining after deducting from gross debt the amount of current revenues that are applicable
within the current fiscal year to the payment of any debt and the aggregate of the principal of the
following:
1. Obligations issued for improvements that are payable wholly or partially from the proceeds of
special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
III-3
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems, and public
lighting, heating or power systems, and any combination thereof, or for any other public
convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than those
described above.
11. Obligations issued to pay judgments against the municipality.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the
county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an
amount that if collected in full will, together with estimates of other revenues pledged for payment of the
obligations, produce at least five percent in excess of the amount needed to pay principal and interest
when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability
to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without
limitation as to rate or amount.
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
“Fiscal Disparities Law”
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as “Fiscal
Disparities,” was first implemented for taxes payable in 1975. Forty percent of the increase in
commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each
assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota,
excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and
Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors
of population and real property market value per capita, is employed in determining what proportion of
the net tax capacity value in the area-wide tax base shall be distributed back to each assessment district.
III-4
STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
Local Tax
Payable
Local Tax
Payable
Local Tax
Payable
Property Type 2012-2014 2015 2016
Residential Homestead (1a)
Up to $500,000 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25%
Residential Non-homestead
Single Unit (4bb1)
Up to $500,000 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25%
1-3 unit and undeveloped land (4b1) 1.25% 1.25% 1.25%
Market Rate Apartments
Regular (4a) 1.25% 1.25% 1.25%
Low-Income (4d) 0.75%
Up to $100,000 0.75%
Over $100,000 0.25%
Up to $106,000 0.75%
Over $106,000 0.25%
Commercial/Industrial/Public Utility (3a)
Up to $150,000 1.50%(a) 1.50%(a) 1.50%(a)
Over $150,000 2.00%(a) 2.00%(a) 2.00%(a)
Electric Generation Machinery 2.00% 2.00% 2.00%
Commercial Seasonal Residential
Homestead Resorts (1c)
Up to $600,000 0.55% 0.50% 0.50%
$600,000 - $2,300,000 1.00% 1.00% 1.00%
Over $2,300,000 1.25%(a) 1.25%(a) 1.25%(a)
Seasonal Resorts (4c)
Up to $500,000 1.00%(a) 1.00%(a) 1.00%(a)
Over $500,000 1.25%(a) 1.25%(a) 1.25%(a)
Non-Commercial (4c12)
Up to $500,000 1.00%(a)(b) 1.00%(a)(b) 1.00%(a)(b)
Over $500,000 1.25%(a)(b) 1.25%(a)(b) 1.25%(a)(b)
Disabled Homestead (1b)
Up to $50,000 0.45% 0.45% 0.45%
Agricultural Land & Buildings
Homestead (2a)
Up to $500,000 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25%
Remainder of Farm
Up to $2,140,000(c) 0.50%(b) 0.50%(b) 0.50%(b)
Over $2,140,000(c) 1.00%(b) 1.00%(b) 1.00%(b)
Non-homestead (2b) 1.00%(b) 1.00%(b) 1.00%(b) (a) State tax is applicable to these classifications.
(b) Exempt from referendum market value based taxes.
(c) Legislative increases, payable 2016. Historical valuations are: Payable 2015 - $1,900,000; Payable 2014 - $1,500,000; Payable 2013 - $1,290,000; and Payable 2012 - $1,210,000.
NOTE: For purposes of the State general property tax only, the net tax capacity of non-commercial class 4c(1) seasonal residential recreational property has the following class rate structure: First $76,000 – 0.40%; $76,000 to $500,000 – 1.00%; and over $500,000 – 1.25%. In addition to the State tax base exemptions referenced by property classification, airport property exempt from city and school district property taxes under M.S. 473.625 is exempt from the State general property tax (MSP International Airport and Holman Field in St. Paul are exempt under this provision ).
APPENDIX IV
IV -1
EXCERPT OF 2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 2015. The reader should be aware that the complete financial statements
may contain additional information which may interpret, explain or modify the data presented here.
The City’s comprehensive annual financial reports for the years ending 1996 through 2014 were awarded
the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance
Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the
highest form of recognition for excellence in state and local government financial reporting. The City has
submitted its CAFR for the 2015 fiscal year to GFOA.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report (CAFR), whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
INDEPENDENT AUDITORS' REPORT
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business
type activities, each major fund, and the aggregate remaining fund information of the City of Line
Lakes, Minnesota as of and for the year ended December 31, 2015, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the
table of contents.
Management's Responsibility for tile Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of Internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors' Responsibility .
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and disck>sures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Uno Lakes as of December31, 2015,
and the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted In the United States of
America.
Emphasis of Mailers
During fiscal year ended December 31, 2015, the City of Uno Lakes, Minnesota adopted the provisions
of Government Accounting Standards Board Statement (GASB) No. 68, Accounting and Financial
Reporting for Pensions and the related GASB Statement No. 71, Pension Transition for Contributions
Made Subsequent to the Measurement Date -an amendment of GASB Statement No. 68. As a result
of the implementation of these standards, the City of Uno Lakes, Minnesota reported a restatement for
the change in the accounting principle (see Note 19). Our auditors' opinion was not modified with
respect to the restatement.
Oilier Mailers
Required Supplementary Information
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 to postemployment benefit plan, as listed in the table of contents be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with managemenfs 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 suffident evidence to express an opinion or provide any
assurance.
Other lnfomratron
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Uno Lakes' basic financial statements. The combining fund financial
statements and other supplementary financial and other Information, the introductory section, and
statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
Other lnfmmation (Continued)
The combining fund statements, special revenue fund -program recreation schedule of revenues,
expenditures, and changes in fund balance -budget and actual, the combining schedule of
indebtedness, schedule of deferred tax levies, and the debt seNice payments to maturity -all bonds
schedule are the responsibility of management and were derived from and relate directly to the
underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the undertying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in acc;ordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining
fund statements, special revenue fund -program recreation schedule of revenues, expenditures, and
changes in fund balance -budget and actual, the combining schedule of indebtedness, schedule of
deferred tax levies, and the debt service payments to maturity -all bonds schedule are fairty stated, in
all material respects, in relation to the basic financial statements as a whole.
The introductory section, schedule of insurance in force, schedule of taxable valuations, tax levies, and
tax rates, and statistical section have not been subjected to the auditing procedures applied in the audit
of the basic financial statements, and accordingly, we do not express an opinion or provide any
assurance on it.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 16,
2016, on our consideration of the City of Uno Lakes' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the result of that testing, and not to provide an opinion on
Internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City of Uno Lakes'
Internal control over financial reporting and compliance.
CliftonlarsonAIIen LLP
Minneapolis, Minnesota
May 16,2016
IV-2
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31,2015
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, 2015. 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 $84,554,618 (net position). Of this amount $28,560,750 (unrestricted net position) may be used to
meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
The City's total net position decreased by $5,624,550 primarily due to annual depreciation of capital
assets and the restatement of net position related to the adoption of the pension standards.
As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $20,056,015, a decrease of $2,486,348 in comparison with the
prior year primarily due to a decrease in the fund balance of Capital Projects, offset by an increase in
the General Fund fund balance. Approximately 10% of this amount, or $1,910,432, 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 $5,725,736, or
58% of total general fund expenditures and other financing uses.
The City issued Equipment Certificates, EDA Lease Revenue Bonds to finance the construction of
Fire House #2, and General Obligation Bonds to finance street reconstruction in the Shehahdoah
Area, as well as, improvements to Birch Street and the related sanitary and water main improvements
relative to the construction of the City's new fire hall.
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 position presents information on all of the City of Lino Lakes' assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in net
position 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 position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused compensated absences and OPEB liabilities).
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2015
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 22-24 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-tenn
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 forty-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 Note 2009F fund, Area and Unit Charge fund, and 2015 Street Reconstruction fund all of
which are considered to be major funds. Data from the other forty-two governmental funds are combined
into a single, aggregate presentation. Individual fund data for each of these non major 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 25 through 30 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 31 through 33 of this report. IV-3
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31,2015
OVERVIEW OF THE FINANCIAL STATEMENTS ICONTINUEDl
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 35-65 of this report.
Other information -The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 76-91 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. The City of Line Lakes' assets exceeded liabilities by $84,554,618 at the close of the most
recent fiscal year, a decrease of $5,624,550 from the previous year. This decrease is primarily due
annual depreciation of capital assets.
The largest portion of the City of Line Lakes' net position (56%) reflects its net investment in capital
assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Line Lakes uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City of Line 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 position at December 31, 2015 and 2014 are as follows:
Governmental Activities Business-TlE!_ Activities Total
2015 2014 2015 2014 2015 2014
Current and Other Assets
Capital Assets
32.222,786 $ 32,904,991 $ 14.881,531 $ 14,029.808 $ 47,104,317 """f46.934,599
Total Assets
Deferred outflows of resources
Noncurrent Liabilities Outstanding
Other Liabilities
Total Liabilities
Deferred inftows of resources
Net Position:
Net Investment in Capital Assets
Restrlc1ed
Unrestricted
Total Net Position
41,228,037
73,450,823
985,081
27,144,998
5,900,707
33.045.705
636.040
18,230,748
8,635,293
13,868,120
40,754,159
36,212,984
69,117,975
19,479,195
903,912
20.383.107
19,540,807
8,666,357
20,527,704
$ 48,734,868
29,127,829
44,009,380
11.860
149,388
63,771
213,157
7.404
29,127,829
14.672,630
$ 43,800.459
27,556,022
41,585,830
52,790
86,540
141.330
27,556,022
13,888,278
$~
70,355.866
117.460,183
998,741
27.294,364
5.964,476
33,258,862
643,444
47,358,575
8.835,293
28.560,750
64,554;618
Of the remaining balance of the City of Line Lakes' net position, restricted net posnion (10%) are to be
used for activijies restricted by law (special revenue funds), debt service requirements and a
nonexpendable environmental fund. Unrestricted net position (34%) may be used to meet the
government's ongoing obligations to citizens and creditors.
63,789,008
110.703.605
19,531,985
992.452
20.524,437
47,098,829
8,666.357
34.415.982
~
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2015
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED!
At the end of the current fiscal year, the City of Line Lakes is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate governmental
and business-type activities.
Governmental activities Governmental activities decreased the City of Line Lakes' net position by
$7,980,709. The cumulative effect of the application of GASB 68 as well as increases in expenses for
public safety and public services activnies account for this reduction for 2015.
Business-type activities Business-type activities increased the City of Line Lakes' net posnion by
$2,356,159. Infrastructure additions by the city and developers, offset partially by increased depreciation
expense due to a change in accounting estimate provided for this increased in 2015.
Condensed statements of revenues, expenses, and changes in net position highlights are as follows for
the years ended December 31,2015 and 2014:
Governmental Activities Business-Tvpe Activities Total
~~ ~~ 2!!!L_
REVENUES
Program Revenues:
2014
Charges for Services 1,621.832
526,107
1,176,732
1.529,040
640,676
335,733
2,638.469
263,024
3,035.031
2,529,524 4.258,301 $ 4,058,564
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
Change in Market Value
Gain on Disposal of Capital Assets
Total Revenues
EXPENSES
General Government
Public Safety
Public SeNice
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Interest on Long-Term Debt
Water
Sewer
Total Expenses
CHANGE IN NET POSITION
BEFORE TRANSFERS
Transfers
CHANGE IN NET POSITION
Net Position-Beginning of Year
Prior Period Adjustment
Net Assets -Beginning of Year, As Restated
NET POSmGN-ENO OF YEAR
9.087,390
101.040
74,808
5,363
163,825
(50,864)
17,838
12,704.067
2.016,351
5.135.865
6,822,972
1,148,740
186.111
432,268
632,876
~
(3.671,116)
66,834
(3,604,282)
48,734,868
(4,376,427)
44,358,441
$ 40,754,159
8,612,016
124,292
70,578
4,443
114,483
151,212
1.727
11,764,200
2,038.550
4,107,759
4,786,121
1,093,909
159.649
407,448
618.680
~
(1,425,916)
69,294
(1 ,356,622)
50,091,490
50,091,490
$ 48,734,868
81.064
(29,917)
5,985.691
1,394,897
2,089,642
3,464,739
2,500,952
(86,834)
2,434,118
41,444,300
(77,959)
41,366,341
$ 43,800,459
1,035
96,213
58,255
2,685,027
985,641
~
~
91,128
(89,294)
21.834
41,422,486
41,422,466
$ 41 ,444,300-
789,131
4,211,763
9,087,390
101,040
74,808
5,383
244,909
(80,781)
17.836
"i8,6e9,'758
2,016,351
5.135,865
6,822,972
1,148.740
186.111
432,268
632,876
1,394,897
2,089,642
"i9,859,922
(1,170,164)
(1,170,164)
90,179,168
(4,454,386)
85,724,782
$ 64,554,618
640,676
338,768
8,612,016
124.292
70,578
4,443
210,698
209,467
1,727
14,469.227
2,036.550
4,107,759
4,786,121
1.093,909
159,649
407,448
618,680
965,641
1,628.258
15,804,015
(1,334,788)
(1,334,788)
91,513,956
91,513,956
$ 90,179,168 IV-4
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2015
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, divides fund balances into
five categories: nonspendable, restricted, committed, assigned and unassigned. Definitions of these
categories can be found in Note 1.Q 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 1 0% of the total fund balance amount, or
$1,910,432, 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 is restricted or has
already been committed or assigned 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 $20,056,015, a decrease
of $2,486,348, or 11%, from the previous year. This decrease is primarily due to a decrease in the fund
balance of Capital Projects, offset by an increase in the General Fund fund balance.
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 $5,725,736, while the total fund balance was
$5,946,413. 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 and financing uses. Unassigned fund balance
represents 58% of total general fund expenditures and other financing uses, while total fund balance
represents 61% of that same amount.
The fund balance of the City of Lino Lakes' general fund increased by $639,878 during the current fiscal
year, while the City budget anticipated the use of $170,000 of the general fund's fund balance. Overall,
signs of an economic recovery are being seen with increased building and development activities taking
place which resulted in increased permit revenues for the year. In addition, reduced expenditures,
primarily for personal services through vacant positions, fuel costs, and contractual services helped to
increase the year end fund balance. Overall, the general fund's revenues were within 1% of the amended
budget, while expenditures and transfers were 4% below amended budget levels.
The G.O. improvement bonds 2005A fund has a total fund deficit of ($2,340,172). 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. The use of tax increments from TIF District 1-10 and an interfund loan from the
Capital Improvements fund has aided in the payment of debt service for this issue.
The Improvement Note 2009F 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 $7,384, a decrease
of $27,515. This note, which was originally in the amount of $4,260,000, was reduced in 2011 to
$3,695,000 to reflect cost savings during the contruction of this project. The outstanding balance as of the
end of2015 is $1,720,000.
The Area and Unit Charge fund has a total fund balance of $4,422,605, all of which is assigned for
financing capital improvements. The fund balance during the current year increased by $38,928, due in
large part to the collection of special assessments and charges for services, which were greater than the
expenditures and transfers out.
The 2015 Street Reconstruction fund has a total fund deficit of ($18,226). The fund balance during the
current year increased by $14,045 due to the proceeds from bond issuance exceeding the expenditures
incurred related to the Shenandoah Area Street Improvement project.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2015
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 position at year~nd of $20,401,628, of which $5,822,834 is unrestricted. The
increase in net position of $1,579,872 was primarily due to capital contributions, partially offset by a net
operating loss.
Total net position in the sewer fund at the end of 2015 was $23,398,831, of which $8,849,796 was
unrestricted. The increase in net position of $854,246 was primarily due to capital contributions, partially
offset by a net operating loss for the year.
The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates
were adjusted by 2% and 3%, respectively, in 2015. A review of utility rates is planned for 2016.
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budget was amended several times during the year reflecting increases in business license
revenue, building permit revenue, MSA maintenance aid, lease revenues and SCORE grants; reductions
in police revenues and fines and forfeits; and reallocating resources within the original budget. The final
amended budget is $148,650 greater than the original adopted budget.
Revenues were $51,277 over budget for the year. Fiscal disparities revenues came in under budget by
$178,439. This variance was more than offset by greater than anticipated license and permit revenues as
well as intergovernmental state aid revenues.
Expenditures came in under budget by $374,464 due to many factors including lower than expected
personal services costs from vacant positions. Fuel costs were much lower than anticipated and
spending on contractual services was lower overall from budgeted levels primarly due to contracted storm
system maintenance that was delayed in 2015. There were also transfers from the general fund of
$590,245. This resulted in a net fund balance increase of $639,878 for the fiscal year, compared to the
planned reduction of $170,000. IV-6
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2015
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, 2015, is $70,355,866. This investment in capital assets includes land,
buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and
infrastructure. This represents an increase in the City of Lino lakes' investment in capital assets of
approximately 10%. Developer lead infrastructure additions for 2015 include NorthPointe 1"1 Addition as
well as Saddle Club 181 Addition. The City completed construction of Well No. 6, while the pump house is
still pending completion. Also sitting in construction in progress and pending final completion are, the
Shenandoah Area Street Improvements, the construction of Fire Station #2, and the Birch Street tum
lanes and infrastructure improvements.
Capital Assets at Year-End
(Net of Accumulated Depreciation)
Governmental Activities Business-Type Activities
2015 2014 2015 2014
Total
2015 2014
Land
Construction in Progress
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
lnfrastrucrure
Capital Assets, Net
3,275,859 $ 3,275,859 ....---
7,268,375 808,093 1,830,071
2,802,413 3,116,839
133,963 364,999
1,141,371 1,170,030
1,109,527 338,387 152,888 211,027
193,122 167,804
25,303,407 26,972,973 27,144,872 27,344,994
$ 41,228,037 $ 36,212,994 $ 29,127,829 $ 27,556,021
$-3,275,859
9,098,448
2,802,413
133,963
1,141,371
1,262,413
193,122
52,448,279
$ 76,355,886
$ 3,275,859
808,093
3,116,839
364,999
1,170,030
547,414
167,804
54,317,967
$ 63, 789,oo5
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 48-49.
long-term debt-At the end of the current fiscal year, the City of lino lakes had total bonded debt
outstanding of $24,611,250. Of this amount $16,406,250 comprises tax supported debt and $6,485,000 is
special assessment debt. All outstanding debt carries the general obligation backing for which the City is
liable in the event of default by the property owners subject to the specific taxes, special assessments or
revenues pledged to the retirement of the debt. In addition, the City 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 $1,720,000.
Governmental Activities Business-T~pe Activities Total
2015 2014 2015 2014 2015 2014
G.O. Bonds $ 16,406,250 $ 9,231,000 $ $ $ 16,406,250 $ 9,231,000
G.O. Special Assessment Bonds 6,485,000 7,445,000 6,485,000 7,445,000
Note Payable -Anoka County 1,720,000 2,080,000 1,720,000 2,080,000
Total Outstanding Debt $ 24,611,250 $ 18,756,000 $ $ $ 24,611,250 $ 18,756,000
The City of lino lakes' total bonded debt increased by $6,215,250 (37.3%) during the current fiscal year.
The key factors for the change include the issuance of $198,250 in 2015A Equipment Certificates,
$963,000 in 2015B Certificates, $3,095,000 of General Obligation Bonds to finance street reconstruction
in the Shenandoah Area and public infrastructure improvements related ot the construction of Fire Station
#2, and $4,350,000 in EDA lease Revenue Bonds to finance the construction of Fire Station #2 in the
City of lino lakes. Principal in the amount of $2,391 ,000 was retired during the year. Additional
information on the City's long-term debt can be found in the notes to the financial statements on pages
50-52.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2015
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The unemployment rate for the City of Lino Lakes at year-end is 3.3%, which is a great improvement
from a rate of 4.5% in 2013. This is slightly lower than the state's average unemployment rate of
3. 7% and significantly lower than the national average of 5.0% at the end of 2015.
Residential growth in the City has continued to be significantly below the rates of the mid 2000's due
to the general residential real estate market weakness, with about half of the number of new home
permits issued in 2015 as in 2007, and less than 76% of new home permits issued in 2005. This is an
improvement over recent years. Recently increased building and development activities are signalling
a recovery of the housing market. Property values of the existing tax base are expected to increase
slightly and will continue to have an impact on the City's tax base for 2016.
Energy costs are expected to continue to remain steady or slightly increase over the coming months.
This will have an impact on the City's budget for the coming year and thereafter.
Property tax reforms have significantly impacted state aid payments the City of Lino Lakes receives.
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
between 0.25% -0.50%, which is expected to result in reduced 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. IV-7
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION
December 31,2015
ASSETS
Cash and investments
Accrued interest receivable
Accounts receivable
Due from other governments
Internal balances
Taxes receivable
Special assessments receivable
Long-term notes receivable
Prepaid items
Inventory
Permanently restricted cash and investments
Capital assets:
Land
Construction in progress
Other capital assets, net of depreciation
Total assets
Deferred Outflows of Resources:
Deferred Outflows -Pensions
LIABILITIES
Accounts payable
Salaries payable
Contracts and retainage payable
Accrued interest payable
Due to other governments
Other accrued liabilities
Net Pension Liability:
Due in more than one year
Non-current liabilities:
Due within one year
Due in more than one year
Total liabilities
Deferred Inflows of Resources:
Deferred Inflows -Pensions
NET POSITION
Net Investment in Capital Assets
Restricted for:
Debt service -expendable
Economic development
Public safety
Culture and recreation
Environmental improvements -expendable
Environmental improvements -nonexpendable
Unrestricted
Total net position
Governmental
Activities
$ 21,973,812
61,680
132,531
101,048
(559,110)
237,384
9,728,587
225,000
221,854
100,000
3,275,859
7,268,375
30,683,803
73,450,823
985,081
673,470
312,028
1,354,249
338,379
1,687
4,868,844
3,220,894
22,276,154
33,045,705
636,040
18,230,746
8,196,461
225,000
76,794
13,247
23,791
100,000
13,888,120
$ 40,754,159
The accompanying notes are an integral part of these basic financial statements.
Business-type
Activities Total
$ 13,879,881 $ 35,853,693
61,680
370,984 503,515
1,594 102,642
559,110
237,384
3,310 9,731,897
225,000
24,630 246,484
42,022 42,022
100,000
3,275,859
1,830,071 9,098,446
27,297,758 57,981,561
44,009,360 117,460,183
11,660 996,741
41,175 714,645
15,456 327,484
1,354,249
338,379
1,687
7,140 7,140
85,202 4,954,046
37,584 3,258,478
26,600 22,302,754
213,157 33,258,862
7,404 643,444
29,127,829 47,358,575
8,196,461
225,000
76,794
13,247
23,791
100,000
14,672,630 28,560,750
$ 43,800,459 $ 84,554,618
IV-8
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31,2015
Functions/Pro~rams
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
2,016,351
5,135,865
6,822,972
1,148,740
186,111
432,268
632,876
16,375,183
1,394,897
2,089,842
3,484,739
19,859,922
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
$ 818,468 $ 169,448 $ 33,750
199,498 339,488
454,845 2,500 1,142,982
149,021 -
3,617
11,054
-
1,621,832 526,107 1,176,732
1,014,836 263,024 1,709,405
1,621,633 1,325,626
2,636,469 263,024 3,035,031
$ 4,258,301 $ 789,131 $ 4,211,763
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise taxes
Other taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Change in market value
Gain on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net position
Net position -beginning
Prior period restatement for change in accounting
principle, see Note 20
Net position -beginning, as restated
Net position -ending
The accompanying notes are an integral part of these basic financial statements.
Net (Expense) Revenue and Changes in Net Position
Governmental Business-type
Activities Activities Total
$ (994,685) $ $ (994,685)
( 4,596,879) ( 4,596,879)
(5,222,645) (5,222,645)
(999,719) (999,719)
(182,494) (182,494)
(421,214) -(421,214)
(632,876) (632,876~
(13,050,512) (13,050,512)
1,592,368 1,592,368
857,417 857,417
2,449,785 2,449,785
(13,050,512) 2,449,785 (10,600,727)
9,067,390 9,067,390
101,040 101,040
74,806 74,806
5,363 5,363
163,825 81,084 244,909
(50,864) (29,917) (80,781)
17,836 17,836
66,834 (66,834)
9,446,230 (15,667) 9,430,563
(3,604,282) 2,434,118 (1,170,164)
48,734,868 41,444,300 90,179,168
(4,376,427) (77,959) (4,454,386)
44,358,441 41,366,341 85,724,782
$ 40,754,159 $ 43,800,459 $ 84,554,618 IV-9
CITY OF LINO LAKES, MINNESOTA
BALANCESHEET-GOVERNMENTALFUNDS
December 31, 2015
G.O. Improvement Area and 2015 Other Total
Improvement Note Unit Street Governmental Governmental
Assets General Bonds2005A 2009F Charge Reconstruction Funds Funds
Cash and investments $ 5,827,130 $ 536,676 $ 205 $ 4,106,596 $ 242,579 $ 11,260,626 $ 21,973,812
Accrued interest receivable 61,680 -61,680
Accounts receivable 106,208 -25,907 416 132,531
Due from other governmental units 99,933 1,115 101,048
Interfund receivable 3,660,455 3,660,455
Taxes receivable:
Delinquent 98,771 15,062 113,833
Due from county 106,481 -16,896 123,377
Delinquent tax increment 174 174
Special assessments receivable:
Delinquent 6,836 422 7,689 12,018 26,965
Noncurrent 145 5,561,118 2,817,877 881,484 423,741 9,684,365
Due from county -7,179 8,659 -1,419 17,257
Long-term notes receivable 225,000 225,000
Prepaid items 220,677 -1,177 221,854
Permanently restricted cash and investments -100,000 100,000
Advances to other funds -285,947 285,947
Total assets $ 6,527,861 $ 6,097,794 $ 2,825,683 $ 5,316,282 $ 242,579 $ 15,718,099 $ 36,728,298
Liabilities, Deferred Inflows of
Resources and Fund Balances
Liabilities:
Interfund payable $ $ 2,876,648 $ $ $ $ 1,342,917 $ 4,219,565
Accounts payable 160,411 200 -4,504 1,885 506,470 673,470
Salaries payable 311,276 752 312,028
Contracts and retainage payable 2,322 258,920 1,093,007 1,354,249
Due to other governmental units 1,687 -1,687
Advances from other funds 285,947 285,947
Total liabilities 475,696 2,876,848 4,504 260,805 3,229,093 6,846,946
Deferred inflows of resources:
Unavailable resources 105,752 5,561,118 2,818,299 889,173 450,995 9,825,337
Fund balances:
Nonspendable 220,677 -101,177 321,854
Restricted 7,384 -2,630,254 2,637,638
Committed 163,239 163,239
Assigned --4,422,605 10,600,247 15,022,852
Unassigned 5,725,736 (2,340,172) p8,226~ p,456,906~ 1,910,432
Total fund balances 5,946,413 (2,340,172) 7,384 4,422,605 (18,226) 12,038,011 20,056,015
Total liabilities, deferred inflows of
resources and fund balances $ 6,527,861 $ 6,097,794 $ 2,825,683 $ 5,316,282 $ 242,579 $ 15,718,099 $ 36,728,298
The accompanying notes are an integral part of these basic financial statements. IV-10
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION
December 31, 2015
Total Fund Balances for Governmental Funds
Total net position reported for governmental activities in the statement of net position
is different because:
Capital assets used in governmental funds are not fmancial 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 a deferred inflow of
resources in the governmental funds.
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 position.
The City's net pension liability and net pension asset and the related deferred inflows and deferred outflows of
resources are recorded only on the Statement of Net Position. Balances at year end are:
Net Pension Liability
Deferred Outflows of Resources-Pensions
Deferred Inflows of Resources -Pensions
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 position. Balances at year-end are:
Bonds payable
Unamortized premiums
Unamortized discounts
Notes payable
Other postemployment benefits
Compensated absence payable
Total Net Position of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
$ 3,275,859
7,268,375
2,802,413
133,963
1,141,371
1,109,527
193,122
25,303,407
(4,868,844)
985,081
(636,040)
(22,891,250)
(135,130)
29,089
(1,720,000)
(90,852)
(688,905)
$ 20,056,015
41,228,037
9,825,337
(338,379)
(4,519,803)
(25,497,048)
$ 40,754,159
IV-11
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-GOVERNMENTAL FUNDS
Year Ended December 31, 2015
G.O. Improvement Area and 2015 Other Total
Improvement Note Unit Street Govermnental Governmental
Revenue: General Bonds 2005A 2009F Charge Reconstruction Funds Funds
General property taxes $ 7,489,040 $ $ $ $ $ 1,194,181 $ 8,683,221
Tax increments 267,286 267,286
Licenses and permits 551,202 551,202
Intergovermnental 649,611 30,016 679,627
Special assessments 14,008 34,050 464,869 190,214 703,141
Charges for services 277,423 246,360 172,718 696,501
Fines and forfeits 127,803 127,803
Investment earnings 27,004 1,438 40,612 5,979 88,464 163,497
Net increase (decrease) in fair value of investments (9,578) (1,095) (6,564) (2,080) (31,265) (50,582)
Refunds 54,689 71,993 126,682
Miscellaneous 168,952 470,438 639,390
Total revenue 9,350,154 343 34,050 745,277 3,899 2,454,045 12,587,768
Expenditures:
Current:
General government 1,609,249 34,717 1,643,966
Public safety 4,372,735 7,522,747 11,895,482
Public works 1,135,020 35,615 2,603,672 169,205 3,943,512
Parks, recreation and forestry 828,084 8,100 836,184
Conservation of natural resources 186,886 4,152 191,038
Community development 422,935 422,935
Capital outlay:
General government 4,461 67,932 72,393
Public safety 36,844 1,161,951 1,198,795
Public works 290,158 290,158
Conservation of natural resources 4,711 4,711
Debt service:
Principal 380,000 360,000 2,062,511 2,802,511
Interest and fiscal charges 150,560 79,565 312,041 542,166
Bond issuance costs 62,831 62,831
Total expenditures 8,600,925 530,560 439,565 35,615 2,603,672 11,696,345 23,906,682
Revenue over (under) expenditures 749,229 (530,217) (405,515) 709,662 __ (2,599,773) (9,242,300) (11,318,914)
Other financing sources (uses):
Transfer in 480,894 683,729 378,000 1,850,348 3,392,971
Transfer out (590,245) (670,734) (2,075,158) (3,336,137)
Sale of property 54,522 54,522
Issuance of debt 2,560,703 6,045,547 8,606,250
Premium on bonds issued 53,115 61,845 114,960
Total other financing sources (uses) (109,351) 683,729 378,000 (670,734) 2,613,818 5,937,104 8,832,566
Net increase (decrease) in fund balance 639,878 153,512 (27,515) 38,928 14,045 (3,305, 196) (2,486,348)
Fund balance -beginning of year 5,306,535 (2,493,684) 34,899 4,383,677 (32,271) 15,343,207 22,542,363
Fund balance -December 31 $ 5,946,413 $ (2,340, 172) $ 7,384 $ 4,422,605 $ (18,226) $ 12,038,011 $ 20,056,015
The accompanying notes are an integral part of these basic financial statements. IV-12
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31,2015
Net Change in Fund Balances-Total Governmental Funds
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
Loss on disposal of capital assets
Depreciation expense
The governmental funds report bond proceeds as financing sources, while repayment of
bond principal is reported as an expenditure. In the statement of net position, 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
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 ofbonds
Issuance of equipment certificates
Bond premium
Repayment of bond principal
Change in accrued interest expense for general obligation bonds
Amortization of bond premium
Amortization of bond discount
Delinquent and noncurrent 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 not available in the governmental funds.
Unavailable resources -December 31, 2014
Unavailable resources -December 31, 2015
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 2015, compensated absence
payable and other post employment benefits payable increased.
Pension expenses in the governmental funds are measured by current year employee
contributions. Pension expenses on the Statement of Activities are measured by the change
in the net pension liability and the related deferred inflows and outflows or resources
Change in Net Position of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
$ 9,680,582
(74,607)
(4,590,922)
(7,445,000)
(1,161,250)
(114,960)
2,751,000
(88,511)
8,691
(3,595)
(9,708,584)
9,825,337
$ (2,486,348)
5,015,053
(6,053,625)
116,753
(52,739)
(143,376)
$ (3,604,282)
IV-13
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION-PROPRIETARY FUNDS
December 31,2015
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Due from other governmental units
Interfund receivable
Due from county -special assessments
Prepaid items
Total current assets
Non-current assets:
Inventory
Capital assets not being depreciated:
Construction in progress
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
Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources
Liabilities
Current liabilities:
Accounts payable
Salaries payable
Other accrued liabilities
Compensated absences payable -current portion
Total current liabilities
Non-current liabilities:
Compensated absences payable -long term
Net Pension Liability
Total noncurrent liabilities
Total liabilities
Deferred Inflows of Resources
Total Liabilities and Deferred Inflows of Resources
Net position
Investment in capital assets
Umestricted
Total net position
Total Liabilities, Deferred Inflows of Resources,
and Net Position
The accompanying notes are an integral part of these basic financial statements.
Water
$ 5,738,284
151,533
1,655
7,255
5,898,727
42,022
1,259,174
120,723
20,891,552
22,271,449
(7,692,655)
14,578,794
14,620,816
20,519,543
5,833
20,525,376
30,462
7,728
7,140
18,792
64,122
13,300
42,622
55,922
120,044
3,704
123,748
14,578,794
5,822,834
20,401,628
$ 20,525,376
Total
Sewer 2015
$ 8,141,597 $ 13,879,881
219,451 370,984
1,594 1,594
559,110 559,110
1,655 3,310
17,375 24,630
8,940,782 14,839,509
42,022
570,897 1,830,071
328,432 449,155
22,164,830 43,056,382
23,064,159 45,335,608
(8,515,124) (16,207,779)
14,549,035 29,127,829
14,549,035 29,169,851
23,489,817 44,009,360
5,827 11,660
23,495,644 44,021,020
10,713 41,175
7,728 15,456
7,140
18,792 37,584
37,233 101,355
13,300 26,600
42,580 85,202
55,880 111,802
93,113 213,157
3,700 7,404
96,813 220,561
14,549,035 29,127,829
8,849,796 14,672,630
23,398,831 43,800,459
$ 23,495,644 $ 44,021,020
IV-14
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION-PROPRIETARY FUNDS
Year Ended December 31, 2015
Water Sewer
Operating revenue:
Charges for services $ 972,096 $ 1,611,053 $
Hook-up charges 13,260 10,580
Water meter sales 15,128
Other operating revenue 14,352
Total operating revenue 1,014,836 1,621,633
Operating expenses:
Personal services 204,983 209,624
Materials and supplies 136,270 29,145
Contractual services 117,204 128,324
MCES sewer charges 751,648
Depreciation 836,772 892,427
Utilities 84,645 41,263
Other 15,023 37,411
Total operating expenses 1,394,897 2,089,842
Net income (loss) from operations (380,061) (468,209)
Other income (expense):
Investment earnings 33,166 47,918
Net increase (decrease) in fair value of investments (12,245) (17,672)
Special assessments 472 473
Total other expense 21,393 30,719
Net income before contributions and transfers (358,668) (437,490)
Capital contributions and transfers:
Contributions from private sources 263,024 142,017
Capital contributions from primary government 1,708,933 1,183,136
Transfer out (33,417) (33,417)
Total contributions and transfers 1,938,540 1,291,736
Change in net position 1,579,872 854,246
Net position-January I 18,860,755 22,583,545
Prior Period restatement for Implementation
of GASB Standard (See Note 20) (38,999) (38,960)
Net position-January I, as Restated 18,821,756 22,544,585
Net position -December 31 $ 20,401,628 $ 23,398,831 $
The accompanying notes are an integral part of these basic financial statements.
Total
2015
2,583,149
23,840
15,128
14,352
2,636,469
414,607
165,415
245,528
751,648
1,729,199
125,908
52,434
3,484,739
(848,270)
81,084
(29,917)
945
52,112
(796,158)
405,041
2,892,069
(66,834)
3,230,276
2,434,118
41,444,300
(77,959)
41,366,341
43,800,459
IV-15
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS-PROPRIETARY FUNDS
Year Ended December 31, 2015
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 fmancing activities:
Collection of special assessments
Acquisition of capital assets
Net cash flows 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 loss
Adjustments to reconcile operating income to
net cash flows from operating activities:
Loss on disposal of capital assets
Depreciation
Change in assets and liabilities:
Increase in receivables
Decrease (Increase) in prepaid items
(Increase) in inventory
(Increase) in deferred outflows
Increase (Decrease) in voucher payables
Increase (Decrease) in salaries payables
Increase (Decrease) in net pension liability
Increase (Decrease) in compensated absences
Increase (Decrease) in deferred inflows
Net cash flows from operating activities
Noncash investing, capital, and financing activities:
Capital asset contributions from governmental activities
The accompanying notes are an integral part of these basic financial statements.
Water
$ 1,006,511
(382,585)
(187,977)
435,949
(33,417)
(160)
(7,134)
(7,294)
20,921
416,159
5,322,125
$ 5,738,284
$ (380,061)
1,295
836,772
(8,325)
4,899
(15,760)
(5,833)
(19,877)
9,815
3,623
5,697
3,704
$ 435,949
$ 1,971,957
Total
Sewer 2015
$ 1,609,702 $ 2,616,213
(999,218) (1,381,803)
(199,472) (387,449)
411,012 846,961
(33,417) (66,834)
(160)
(7,134)
(7,294)
30,243 51,164
407,838 823,997
7,733,759 13,055,884
$ 8,141,597 $ 13,879,881
$ (468,209) $ (848,270)
1,985 3,280
892,427 1,729,199
(11,931) (20,256)
4,296 9,195
(15,760)
(5,827) (11,660)
(17,708) (37,585)
3,001 12,816
3,581 7,204
5,697 11,394
3,700 7,404
$ 411,012 $ 846,961
$ 1,325,153 $ 2,892,069
IV-16
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION-FIDUCIARY FUNDS-AGENCY FUNDS
December 31,2015
Assets
Cash and investments
Liabilities
Deposits payable
The accompanying notes are an integral part of these financial statements.
2015
$ 727,635
$ 727,635
IV-17
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Notel 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:
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 governing body is substantively the same as the governing body of the City and a financial
benefit or burden relationship exists between the City and the EDA. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) ofLino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members and a
financial benefit or burden relationship exists between the City and the HRA. The HRA has not yet
incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government-Wide Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) display information about the primary government and its component units. These statements
include the fmancial 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.
IV-18
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <CONTINUED>
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
I. Government-Wide Statements (Continued)
In the government-wide statement of net position, 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 alllong-tenn assets and receivables as well as long-term debt
and obligations. The City's net position is reported in three parts: (I) net investment in capital assets;
(2) restricted net position; and (3) unrestricted net position. 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: (I) fees, fmes, 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 generallong-tenn 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.
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 governmental infrastructore.
2015 Street Reconstruction Fund
The 2015 Street Reconstruction fund accounts for the construction and improvements to Shenandoah
Street.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <CONTINUED>
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service charges that are used to fmance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer sewer service charges that are used to finance sewer 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.
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 afler the end of the current period. Property and other taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditores 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 expenditores to the extent that they have matored. Proceeds of general long-term debt
and acquisitions under capital leases are reported as other financing sources. IV-19
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES <CONTINUED>
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
Amounts reported as program revenues include: I. Charges to customers or applicants for goods, services,
or priv!eges 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 Fuud 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:
I. 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 I. 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 Admini~trator is authorized to transfer appropriations within any department budget.
Additioual interdepartmental or interfund appropriations and deletions are or may by authorized by the
City Council with fund (contingency) reserves or additioual 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.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
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 position 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 and earnings portion of resources
received that must be retained in a permanent fund. Only earnings from these funds may be used for
purposes that support environmental maintenance and improvements.
G. PROPERTY TAX 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. IV-20
CITY OF UNO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 1 SUMMARY OF SIGNIFlCANT 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 collectiog
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January I 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 IS 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 expenditores 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 inflows of resources because it is not available to finance current
expenditores. Deferred inflows of resources in governmental fund are 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 Statote 473F. This statote 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 2015 totaled $1,221,907. 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 properlY
taxes. Property owners are allowed to (and ofien do) prepay future instalbuents 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 expenditores 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,
noncurrent and special assessments receivable in governmental funds are completely offset by deferred
inflow of resources. Deferred inflows of resources in governmental funds are susceptible to full accrual on
the government-wide statements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 1 SUMMARY OF SIGNIFlCANT 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 Statotes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultoral or seasonal recreational land in which
event the property is subject to such sale after five years.
J. INVENTORIES AND PREP AIDS
The original cost of materials and supplies has been recorded as expenditoreslexpenses at the time of
purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts
of materials and supplies.
Certain payments to vendors reflect costs applicable to future accountiog periods and are reported as
prepaid items under the purchases method in both government-wide and fund financial statements.
K. INTERFUND RECEIVABLES/PAY ABLES
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 classified as nonspendable fund balance account in the
general fund to indicate they are not available for appropriation and are not expendable from available
financial resources.
L. CAPITALASSETS
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 position. Capital assets are depreciated using the
straight-line method over their estimated useful lives. Since surplus assets are sold for an inunaterial
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 Furuiture and
Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Inftastructore.
Capital assets not being depreciated include land. IV-21
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <CONTINUED!
M. COMPENSATEDABSENCES
It is the City's policy to permit employees to accumulate earned but wmsed vacation, PTO (Personal Time
Oft), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay allowable
as severance pay is accrued in the government-wide and proprietary fund financial statements. The current
portion is calculated based on historical trends.
N. LONG-TERM OBLIGATIONS
In the 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 amortized over the
life of the bonds using the straight-line method. Bond issuance costs are reported as an expense in the
period they are incurred.
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.
0. NET PENSION LIABILITY
For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension
expense, information about the fiduciary net position of the Public Employees Retirement Association
(PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same
basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan
contributions are recognized as of employer payroll paid dstes and benefit payments and refunds are
recognized when due and payable in accordance with the benefit terms. Investments are reported at fair
value.
P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
In addition tu assets, the statement of net position reports a separate section for deferred outflows of
resources. This separate section represents a consumption of net position that applies to a future period.
The City will not recognize the related outflow until a future event occurs. More detailed information about
pension related deferred outflows of resources can be found in Note 6 to the financial statements.
The City's statement of net position, governmental fund, and proprietary fund financial statements report a
separate section for deferred inflows of resources. This separate financial statement element reflects an
increase in net position of fund balance that applies to a future period. The City will not recognize the
related revenue until a future event occurs. The City has two types of items which occurs relating to
revenue recognition: The first type of deferred inflow of resources occurs because governmental fund
revenues are not recognized until available (collected not late than 60 days after the end of the City's year)
under the modified accrual basis of accounting. The second type relates to pension liabilities as described
in Note 6 to the financial statements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 1 SUMMARY OF SIGNlFlCANT ACCOUNTING POLICIES <CONTINUED>
Q. FUND EQIDTY
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 passed a resolution authorizing the Finance
Director to assign fund balances and their intended uses.
Unassigned -is the residual classification for the General Fund and also reflects negative residual
amounts in other funds.
When 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.
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.
The fund equity balances in the proprietary funds have been classified into two broad categories:
Net position -net investment in capital assets
Unrestricted net position
Net position represents the differences between assets and deferred outflows of resources and liabilities and
deferred inflows of resources in the government-wide financial statements. Net position -net investment in
capital assets consists of capital assets, net of accumulated depreciation, reduced by the ouststanding
balance of any long-term debt used to build or acquire capital assets. Net position is reported as restricted
in government-wide financial statements when there are limitations on their use thorugh external
restrictions imposed by creditors, grantors, or laws or regulations of other governments.
R. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted fur 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 position and statements of activities. IV-22
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
S. CHANGE IN ACCOUNTING ESTIMATE
For fiscal year 2015, the City had a change in accounting estimate for a change in depreciation
methodology. Prior to 2015, the City did not take any depreciation for capital assets in the year of
acquisition. Beginning January I, 2015, the City started depreciating assets in the month they are placed in
service.
T. CHANGE IN ACCOUNTING PRINCIPLE
Notel
During the fiscal year ended December 31, 2015, the City adopted GASB Statement No. 68, Accounting
and Financial Reporting for Pensions, and the related GASB No. 71, Pensions Transition for Contributions
Made Subsequent to the Measurement Date-an amendment of GASB No. 68. The primary objective of
these Statements is to improve accounting and financial reporting by state and local governments for
pensions. They also improve information provided by state and local govermnental employers about
financial support for pensions that is provided by other entities. See Note 19 for more detail of the effect of
this change in accounting principle on the financial statements.
DEPOSITS AND INVESTMENTS
ComJ!!!nents of Cash and InvesiD!ents
Cash and investments at year-end consist of the following:
Cash and Investments -Statement of Net Position $ 35,853,693
Permanent restricted Cash and Investments -Statement ofNet Position 100,000
Cash and Investments -Statement ofNet Position -Fiduciary Funds 727,635
Total ~681,328
Cash and investments are presented in the financial statements as follows:
Deposits $ 2,182,827
Investments 34,497,681
Cashon Hand 820
Total $ 36,681,328
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 position 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.
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 mther follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits
be protected by insumnce, surety bond, or collateral. The market value of collateral pledged must equal
II 0% of the deposits not covered by insumnce or corpomte 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 govermnent mted "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 departmeut of a
commercial bank or other financial institution not owned or controlled by the depository.
The City's deposits in banks at December 31, 2015 were entirely covered by federal depository insumnce
or by surety bonds and collateral in accordance with Minnesota Statutes.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 2 DEPOSITS AND INVESTMENTS <CONTINUED>
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 mting, is mted in one of the two highest mting categories by a statistical
mting agency, and all of the investments have a final matority of thirteen months or less
General obligations mted "A" or better; revenue obligations mted "AA'' or better
General obligations of the Minnesuta 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 mting agencies, and maturing in 270 days
or less
Guaranteed investment contmcts guaranteed by United States commercial banks or domestic branches
of foreign banks or United States insurance companies if similar debr obligations of the issuer or the
collateral pledged by the issuer is in the top two mting categories
Repurchase or reverse purchase agreements and secorities 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.
govermnent securities to the Federal Reserve Bank of New York, or certain Minnesota securities
broker-dealers
Any security which is an obligation of a school district with an original matority not exceeding 13
months and (i) mted in the highest category by a national bond mting service or (ii) enrolled in the
credit enhancement program pursuant to section 126C.55.
Investments Held with Broker-
Jnurest Rille JUsk
Interest mte risk is the risk that changes in interest mtes will adversely affect the fair value of an
investment. Generally, the longer the matority of an investment, the greater the sensitivity of its fair value
to changes in market interest mtes. The City's policy to minimize interest mte risk includes investing
primarily in short-tetm 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 mte risk fluctuations is provided by the following table that shows the
distribution of the City's investments by maturity: IV-23
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note2 DEPOSITS AND INVESTMENTS (CONTINUED)
B. INVESTMENTS (CONTINUED)
12Months 13 to 24 25 to 60
Total or Less Months Months
Minnesota Municipal Money
Market Trust Fund $ 7,404,834 $ 7,404,834
Federal Home Loan Bank 297,861 297,861
Federal Home Loan Mortgage Corp. 803,533 803,533
Federal National Mortgage Assn. 1,295,274 1,295,274
Negotiable CDs 14,614,686 7,791,744 2,170,544 4,652,398
Municipal Bonds 9,822,152 4,583,200 2,026,502 3,212,450
Mutual Fund 259,341 259,341
Toral $ 34,497,681 $ 20,039,119 $4,197,046 $ 10,261,516 =
Credit Risk
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 fimds to those
allowable under Minnesota Statute liSA, 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 mting 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 FWld
Federal Home Loan Bank
Federal Home Loan Mortgage Corp.
Federal National Mortgage Assn.
Negotiable CDs
Municipal Bonds
Mutual Fund
Total
Credit
Qnality Rating
Aa2
Aaa/AA+
Aaa/AA+
Aaa/AA+
Not Rated
A-Aaa
Not Rated
Ammmt
$ 7,404,834
297,861
803,533
1,295,274
14,614,686
9,822,152
259,341
$ 34,497,681
The Minnesota Municipal Money Market FWld 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
fluetuating 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 31,2015
Note2 DEPOSITS AND INVESTMENTS (CONTINUED)
B. INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The City places no limit on the amoWlt 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:
T AmoWlt Percentage
CitibankSDA $ 2,939,195 8.52%
Note3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2015 was as follows:
Beginning Ending
Balance Increases Decreases Transfers ~
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land $ 3,275,859 $ $ $ $ 3,275,859
Construction in Progress 808 093 7,268,375 !808,093! 7,268,375
Total Capital Assets, Not Being Depreciated 4,083,952 7,268,375 (808,093) 10,544,234
Capital Assets, Being Depreciated:
Buildings 6,765,619 6,765,619
Office Equipment and Furniture 1,398,722 108,321 (167,991) (702,619) 636,433
Vehicles 2,891,461 526,556 (270,155) (24,966) 3,122,896
Machinery and Shop Equipment 960,720 684,076 (91,619) 702,619 2,255,796
Other Equipment 952,447 28,384 24,966 1,005,797
lnfras1ructure 78,607,804 1,872,963 80,480,767
Total Capital Assets, Being DePreciated 91,576,773 3,220,300 (529,765) 94,267,308
Accwnulated Depreciation for:
Buildings (3,648, 780) (314,426) (3,963,206)
Office Equipment and Furniture (1,033,723) (35,760) 139,878 427,135 (502,470)
Vehicles (1,721,431) (534,894) 266,735 8,065 (1,981,525)
Machinery and Shop Equipment (624,333) (143,346) 48,545 (427,135) (1,146,269)
Other Equipment (784,643) (19,967) (8,065) (812,675)
lnfras1ructure !51,634,831! (3,542,529! !55,177,360!
Total Accumulated DePreciation !59,447,741! ! 4,590,922! 455,158 !63,583,505!
Total Capital Assets, Being Depreciated, Net 32,129,032 !1,370,622! !74.602! 30,683,803
Governmental Activities Capital Assets, Net $ 36,212,984 $ 5,897,753 .s (882,700) $ $ 41,228,037 IV-24
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note3 CAPITAL ASSETS (CONTINUED\
Busioess-Type Activities:
Capital Assets, Not Being Depreciated:
Construction in Progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Business-Type Capital Assets, Net
Beginning
Balance
48,690
545,511
41,495,364
42,089,565
(48,690)
(334,484)
{14,150,370)
{14,533,544l
27,556,021
27,556,021
Increases Decreases
1,830,071
1,830,071
15,103 (66,174)
1467 043
1,482,146 (66,174)
(27,300) 54,964
~1,701,899l
p,729,199l 54,964
~247,053l ~11.210l
s 1,583,018 $ (11,210)
Depreciation expense charged to functions/programs oftbe primary governmeot as follows:
Govemmentlll Activities:
General Government
Public Safi:ty
Public Services
Parks, Recreation and F orestly
Conservation ofNatural Resources
Community Development
Total Depreciation Expense, Governmental Activities
Business-type Activities:
Water
Sewer
Total Depreciation Expense, Governmental Activities
334,252
309,057
3,721,888
224,712
512
501
4,590,922
836,772
892,427
1,729,199
Ending
Transfers Balance
1,830.o'1
1,830,071
(48,690)
(45,285) 449,155
93,2ZL 43,056,382
43,505,537
48,690
10,551 (296,269)
(59,241l ~15,911,510l
{16o207,779l
27,297,758
29,127,829
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note4 CITY INDEBTEDNESS
City indebtedness at December 31, 2015 is composed of tbe following:
Final
Issue Maturity
Date Date
Governmental Activities:
General Obligation Bonds:
2013A Equipment Certificates 2/1/2013 12/31/2015
2014A Equipment Certificates 2/15/2014 12/31/2017
201SA Equipment Certificates 2/1/2015 12/31/2018
2015B Equipment Certificates 8/25/2015 12/31/2020
G.O. Tax Abatement Bonds, Series 2006C 8115/2006 2/1/2023
G.O. Utility Revenue Bonds, Series 20060 8115/2006 2/1/2017
G.O. CIP Refunding Bonds, Series 2006E 1111/2006 2/1/2018
G.O. Tax Increment Financing Bonds,
Series 2007A 7/15/2007 2/1/2024
G.O. Refunding Bonds, Series 2012A 11115/2012 2/1/2024
G.0Bonds2015A 811/2015 2/1/2031
EDA Leased Revenue Bonds 2015B 10/1/2015 4/1/2036
Total General Obligation Bonds
Special Assessment Bonds:
G.O.lmprovemern Bonds, Series 2005A 1111/2005 2/112021
G.O.Improvement Refunding Bonds,
Series 2005B 11/1/2005 2/1/2015
G.O. Improvement & Utility Revenue Refunding
Bnnds, Series 2010A 7/9/2010 2/1/2020
0.0. Improvement Bonds, Series 2013A 7/15/2013 2/1/2024
G.O. Improvement Bonds, Series 2014A 11/20/2014 2/1/2026
Total Special Assessment Bonds
Total Bonds
Note Payable -Anoka County -2009F 811/2009 8/1/2024
Unamortized Bond Discounts
Unamortized Bond Premiwns
Compensated Absences Payable
Other Post Employmern Benefit Plan
Total Governmental Activities
Business-Type Activities:
Compensated Absences Payable
Interest Original Payable
Rate Issue 12/31/2015 -----
l.OO"A. 193,000 $ 65,000
1.00% 495,000 335,000
1.00% 198,250 198,250
1.500/o 963,000 963,000
4.00o/...4.30% 2,460,000 1,925,000
4.00%-4.15% 570,000 135,000
4.00"A. 2,990,000 1,210,000
4.00%-4.125% 4o215,000 2,405,000
1.00"/~2.00% 2,015,000 1,725,000
2.00o/o-3.00o/o 3,095,000 3,095,000
2.00o/o-3.00% 4,350,000 4,350,000
21,664o250 16,406,250
4.3So/~5.15% 5,550,000 2,760,000
3.75o/o-5.00% 3,755,000
2.00o/o-3.000/o 1,000,000 525,000
1.25o/...4.00% 615,000 555,000
0.40%-2.30% ~ 2,645,000
~ 6,485,000
35,479o250 22,891,250
4.00o/o-3.700/o 4,260,000 1,720,000
(45,490) (29,089)
202;370 135,130
N/A 688,905
~ 90,852
39,896,130 $ 25,497,048
N/A $ 64,184 IV-25
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2015:
Payable Payable DueWi1hin
12131/2014 Issues Payments 12/3112015 One Year
Governmental activities:
Bonded debt:
General Obligation $ 9,231,000 $ 8,606,250 $ 1,431,000 s 16,406,250 $ 1,699,000
Special Assessment 7,445,000 960,000 6,485,000 665,000
Unamortized Bond Discounts (32,684) (3,595) (29,089)
Unamortized Bond Premiums 28,861 114,960 8,691 135,130
Note Payable-Anoka County 2,080,000 360,000 1,720,000 375,000
Compeesated Absences Payable 635,995 595,793 542,883 688,905 481,894
Other Post Employment Benefit Plan 91,023 28,813 28,984 90,852
Total Governmental Activities 19,479,195 9,345,816 3,327,%3 25,497,048 3,220,894
Business-Type Activities:
Compensated Absences Payable 52,790 45,913 34,519 64,184 37,584
Total $ 19,531,985 s 9,391,729 $ 3,362,482 $ 25,561,232 $ 3,258,478
All long-term bonded indebtedness outstanding at December 31, 2015 is backed by the full faith and credit of the
City, including special assessment bond issues.
Minimum annual principal and interest payments required to retire long-term debt, not including compensated
absences payable are as follows.
Bonded Debt Notes Payable Total
PrinciE! ~ Principal~ Princ;pa! lntere"
Yem ~December 31
2016 $ 2,364,000 $ 716,762 375,000 s 70,165 2,739,000 $ 786,927
2017 3,028,000 572,663 390,000 60,165 3,418,000 632,828
2018 2,656,250 491,586 405,000 49,565 3,061,250 541,151
2019 2,242,000 421,678 420,000 42,415 2,662,000 464,093
2020 2,251,000 356,440 130,000 13,360 2,381,000 369,800
2021~2025 6.365,000 1,002,948 6,365,000 1,002,948
2026-2030 2,185,000 483,021 2,185,000 483,021
2031~2035 1,510,000 191,444 1,510,000 191,444
2036 290,000 5,800 290,000 5,800
Total • 22,891,250 $ 4.242)42 ~ $ 235,670 24,611,250 $ 4,478,012
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.
Note Payable-Anoka County 2009F-This note was used to finance improvement projects at the l-ISE and
County State Highway 14 interchange and will be repaid primarily with special assessments levied on the properties
benefiting from the improvements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note4 CITY INDEBTEDNESS (CONTINUED)
Description and Restrictions of Long-Term Debt (Continued)
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.
In August 2015, the City issued General Obligation Bonds of $3,095,000 to fund various street improvements
within the City. The bond was issued at a rate of2-3%. The bonds will mature in 2031. In October 2015, the City
issued EDA Leased Revenue bonds of $4,350,000 to fund the construction of a fire station. The bond was issued at
a rate of2-3%. The bonds will mature in 2036.
The liabilities for compensated absences, other post-employment benefits, and net pension in the governmental
activities will be liquidated by the general fund. The liabilities for Proprietary Fund employees are included in the
accrued liabilities of those funds.
NoteS 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 ofLino Lakes' legal debt margin for 2015 is computed as follows:
Market Value
Applicable Percenlage
Debt Limit
Amount of Debt Applicable to Debt Limit:
Total Bonded Debt
Less: Special Assessment Bonds
Tax Abatement Bonds
Utility Revenue Bonds
Tax Increment Financing Bonds
Total Debt Applicable to Debt Limit
Legal Debt Margin
12/31/2015
1,694,366,064
3.0%
50,830,982
22,891,250
(6,485,000)
(1,925,000)
(135,000)
{2,405,000)
11,941,250
38,889,732 IV-26
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 6 PENSION PLANS
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
PLANS
PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401 (a) of the
Internal Revenue Code.
I. General Employees Retirement Fund (GERF)
All full-time and certain part-time employees of the City are covered by the General Employees
Retirement Fund (GERF). 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.
The Basic Plan was closed to new members in 1967. All new members must participate in the
Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July I,
1999, the PEPFF also covers police officers and firefighters belonging to a local relief association
that elected to merge with and transfer assets and administration to PERA.
BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute
and can only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio
of the plan. Members in plans that are at least 90"/o funded for two consecutive years are given 2.5%
increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given I%
increases.
The benefit provisions stated in the following 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.
I. GERF Benefits
Benefits are based on a member's highest average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two methods are used to compute benefits
for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step-
rate benefit accrual formula (Method I) or a level accrual formula (Method 2). Under Method I, the
annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years
of service and 2. 7% for each remaining year. The annuity accrual rate for a Coordinated Plan member
is 1.2 percent of average salary for each of the first ten years and I. 7% for each remaiuing year.
Under Method 2, the annuity accrual rate is 2. 7% of average salary for Basic Plan members and l. 7%
for Coordinated Plan members for each year of service. For members hired prior to July I, 1989, a
full annuity is available when age plus years of service equal 90 and normal retirement age is 65.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 6 PENSION PLANS !CONTINUED>
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
PLANS (CONTINUED)
I. GERF Benefits (Continued)
For members hired on or after July I, 1989, normal retirement age is the age for unreduced Social
Security benefits capped at 66. Disability benefits are available for vested members and are based
upon years of service and average high-five salary.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July I, 2014, vest on a
prorated basis from 50% after five years up to I 00% after ten years of credited service. Benefits for
PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50"/o after ten years up
to I 00% after twenty years of credited service. The annuity accrual rate is 3% of average salary for
each year of service. ForPEPFF who were first hired prior to July I, 1989, a full annuity is available
when age plus years of service equal at least 90.
CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates
can only be modified by the state legislature.
I. GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50"/o,
respectively, of their annual covered salary in calendar year 2015. The City was required to
contribute 11.78% of pay for Basic Plan members and 7.50"/o for Coordinated Plan members in
calendar year 2015. The City contributions to the GERF for the year ended December 31, 2015,
were $182,102. The City contributions were equal to the required contributions as set by state
statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year
2015. The City was required to contribute 16.20% of pay for PEPFF members in calendar year
2015. The City contributions to the PEPFF for the year ended December 31, 2015, were
$393,560. The City contributions were equal to the required contributions as set by state statute.
PENSION COSTS
I. GERF Pension Costs
At December 31, 2015, the City reported a liability of $2,124,833 for its proportionate share of the
GERF's net pension liability. The net pension liability was measured as of June 30, 2015, and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the
City's contributions received by PERA during the measurement period for employer payroll paid
dates from July I, 2014, through June 30, 2015, relative to the total employer contributions
received from all of PERA's participating employers. At June 30, 2015, the City's proportion
share was .00410% which was a decrease of .0022% from its proportion measured as ofJune 30,
2014.
For the year ended December 31,2015, the City recognized pension expense of$257,399 for its
proportionate share of the GERF's pension expense. IV-27
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 6 PENSION PLANS (CONTINUED>
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
PLANS (CONTINUED)
PENSION COSTS (CONTINUED)
1. GERF Pension Costs (Continued)
At December 31, 2015, the City reported its proportionate share of the GERF's deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of
DescriE!!on of Resources Resources
Differences Between Expected and Actual Economic
Experience $ $ 107,128
Changes in Actuarial Assumptions
Net Difference Between Projected and Actual Earnings
on Pension Plan Investments 201,148
Changes in Proportion and Differences Between
District Contributions and Proportionate Share of
Contributions 77,509
City Contributions Subsequent to the Measurement
Date
Total
89,631
$ 290,779 $ 184,637
A total of $89,631 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2016. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
follows:
Year Ended June 30
2016
2017
2018
2019
2020
Thereafter
Pension Expenses
Amount
$ {11,258)
{11,258)
(11,258)
50,285
2. PEPFF Pension Costs
At December 31,2015, the City reported a liability of$2,829,223 for its proportionate share of the
PEPFF's net pension liability. The net pension liability was measured as of June 30, 2015, and
the total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City's proportion of the net pension liability was based on the
City's contributions received by PERA during the measurement period for employer payroll paid
dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions
received from all ofPERA's participating employers. At June 30, 2015, the City's proportion was
.249"/o which was the same as the City's proportion measured as ofJune 30, 2014.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 6 PENSION PLANS <CONTINUED>
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
PLANS (CONTINUED)
PENSION COSTS (CONTINUED)
2. PEPFF Pension Costs (Continued)
For the year ended December 31, 2015, the City recognized pension expense of $487,542 for its
proportionate share of the PEPFF's pension expense. The City also recognized $22,410 for the
year ended December 31,2015, as pension expense (and grant revenue) for its proportionate share
of the State of Minnesota's on-behalf contributions to the PEPFF. Legislation passed in 2013
required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting
in fiscal year 2014.
At December 31,2015, the City reported its proportionate share of the PEPFF's deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Description
Differences Between Expected and Actual
Economic Experience
Changes in Actuarial Assumptions
Net Difference Between Projected and Actual
Investment Earnings
Changes in Proportion and Differences Between
District Contributions and Proportionate Share of
Contributions
City Contributions Subsequent to the Measurement
Date
Total
Deferred Outflows
of Resources
$
492,945
213,017
$ 705,962
Deferred Inflows of
Resources
$ 458,807
$ 458,807
A total of$213,017 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2016. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
fullows:
Year Ended June 30
2016
2017
2018
2019
2020
Thereafter
Pension Expenses
Amount
$ 31,475
31,475
31,475
31,475
(91,762) IV-28
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 6 PENSION PLANS <CONTINUED>
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
PLANS (CONTINUED)
ACTUARIAL ASSUMPTIONS
The total pension liability io the June 30, 2015, actuarial valuation was determioed usiog the followiog
actuarial assumptions:
Inflation
Active Member Payroll Growth
Investment Rate of Return
2.15% per year
3.50%, Average, Including lnflatioo
7.90%, Net ofPeosiou Plao Investment Expense, Including Inflation
Salary iocreases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP-2000 tables for males or females, as appropriate, with slight
adjustments. Benefit iocreases for retirees are assumed to be I% effective every January I" through 2026
and 2.5% thereafter.
Actuarial assumptions used io the June 30, 2015, valuation were based on the results of actuarial
experience studies. The experience study in the GERF was for the period July I, 2004, through June 30,
2008, with an update of economic assumptions in 2014. Experience studies have not been prepared for
PERA's other plans, but assumptions
The long-term expected rate of return on pension plan iovestments is 7.9"/o. The State Board of Investment,
which manages the iovestments of PERA, prepares an analysis of the reasonableness of the long-term
expected rate of return on a regular basis usiog a buildiog-block method io which best-estimate ranges of
expected future rates of return are developed for each major asset class. These ranges are combioed to
produce an expected long-term rate of return by weighting the expected future rates of return by the target
asset allocation percentages. The target allocation and best estimates of arithmetic real rates of return for
each major asset class are sununarized below:
Domestic Equity
Interoational Equity
Bonds
Alteroative Assets
Cash
Totals
DISCOUNT RATE
Asset Class Target Allocation
45%
IS%
18%
20%
2%
100%
Long-Term
Expected Real Rate
of Return
5.50%
6.00%
1.45%
6.40%
0.50%
The discount rate used to measure the total pension liability was 7 .9%. The projection of cash flows used to
deterntine the discount rate assumed that employee and employer contributions will be made at the rate
specified io statute. Based on that assumption, each of the pension plan's fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determioe the total pension liability.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
Note 6 PENSION PLANS <CONTINUED>
A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA)-DEFINED BENEFIT
PLANS (CONTINUED)
PENSION LIABILTY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it participates
in, calculated usiog the discount rate disclosed in the preceding paragraph, as well as what the City's
proportionate share of the net pension liability would be if it were calculated using a discount rate I
percentage poiot lower or I percentage poiot higher than the current discount rate:
Description
City's Proportionate Share of the GERF Net Pension
Liability
City's Proportionate Share of the PEPFF Net Pension
I% Decrease in
Discount Rate
(6.90%)
3,340,992
Liability $ 5,514,185
PENSION PLAN FIDUCIARY NET POSmON
Current Discount
Rate (7.90%)
2,124,883
2,829,223
1% Increase in
Discount Rate
(8.90'..1.)
1,120,472
610,976
Detailed information about each pension plan's fiduciary net position is available io a separately-issued
PERA financial report that includes financial statements and required supplementary ioformation. That
report may be obtained on the Internet at www.mnpera.org; by writing to PERA at 60 Empire Drive #200,
St. Paul, Mionesota, 551 03-2088; or by calling ( 651) 296-7460 or 1-800-652-9026. IV-29
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 fimd balances at December 31,2015 as follows:
G.O. Improvement Bonds 2005A
Nonmajor Governmental Funds:
35E Interchange
Dedicated Parks
21st Ave. Extension
Tax Increment Financing 1-11
Blackduck/Aqua Ln Watermain Ext
20 IS Street Reconstruction
Improvement Bonds 2013A
Fund Balance
Deficit
$ (2,340,172)
(259,166)
(70,432)
(302,954)
(772,648)
(51,086)
(18,226)
(200)
The City intends to fimd these deficits through future tax levies, special assessment levies, tax increments,
transfers from other fimds, and various other sources.
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of expenditure categories within the General Fund that exceed budget
appropriations:
Final
~et Actual Excess
General government:
Administration $368,868 $371,778 $ (2,910)
Community development:
Community Development 206,424 209,457 (3,033)
Planning and Zoning Conunission 114,610 123,049 (8,439)
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 9 CONTINGENCffiS
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 fimd. 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
fonn of grants. The disbursement of fimds received under these programs generally requires compliance with the
tenns 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 fimd. 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 fimd types included herein or on the overall financial position of the City at December
31,2015.
Litigation -The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments,
and litigation. As of December 31, 2015 any potential affect this may have on the City is not estimable, however it
is not expected to have a material effect on the financial statements of the City.
Labor Contracts -The City has various employees that are covered under labor agreements that are subject to
collective bargaining. The status oflabor contracts in the City is as follows:
Number of Expiration Date of
Bargaining Unit Emj!l~ees Current Contract
LELS -Patrol 18 December 31,2015
LELS -Sergeant 5 December 31,2015
49ers -Public Works 15 December 31,2015
AFSCME 17 December 31,2015
Non-unionized Employees 9
Total Employees 64 IV-30
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
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,
2015.
Future scheduled tax levies for all bonds outstanding at December 31, 20 I 5 totaled $18,304,907.
Note 11 FUND BALANCE
At December 31, 2015, the City had various fund balances restricted, committed, or assigned through legal
restriction and City Council authorization. Major fund balance appropriations at December 31, 2015 are shown on
the various balance sheets as segregations of the fund balance. The fund balances are as follows:
Total Nonspeodable Restricted Committed Assigned Unassigned
General Fund:
Prepaid Items
Total Geneml Fund
G.O. Improvement Bonds 2005A:
Deficit Fund Balance
Improvement Bonds 2009F:
Debt Service
Area and Unit Charge:
Advances to Other Funds
Construction Projects
Total Area and Unit Charge
2015 Street Reconstruction:
Deficit Fund Balance
Nomnajor Governmental Funds:
Prepaid Items
Economic Development -
Loan Receivable
Corpus of Permanent Fund
Program Recreation
Cable TV FWid
Blue Heron Days
Federal Narcotics
State Narcotics
Dill Forfeitures
Debt Service
Construction Projects
Total Nomnajor Funds
Total FWid Balances
'5,ffi;736
220,677
5,946,413
(2,340,172)
7,384
285,947
4,136,658
4,422,605
(18,226)
224,580
123,791
84,179
80,237
13,247
49,965
9,810
17,019
2,291,222
9,143,961
12,038,011
~
s
220,677
220,677
100,000
1,177
101,177
321,854
Note 12 SHARE lN GAS FRANCHISE PROFITS
$ $ $ $ 5,725,736
5,725,736
(2,340,172)
7,384
285,947
4,136,658
4,422,605
(18,226)
225,000 (420)
23,791
83,002
80,237
13,247
49,965
9,810
17,019
2,291,422 (200)
10,600,247 (1,456,286!
2,630,254 163,239 10,600,247 (1,456,906)
2,637,638 $ 163,239 $ 15,022,852 $ 1,910,432
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 2015 was
$47,914.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 13 INTERFUND RECEIVABLE AND PAY ABLES
The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds
and at December 31, 2015 are as follows:
Receivable Pa~able
Governmental Activity:
G.O. Improvement Bonds 2005A $ $ 2,876,648
Other Nonmajor Governmental Funds 3,660,455 1,342,917
Business-type Activity:
Sewer Fund 559,110
$ 4,219,565 $ 4,219,565
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 31,2015 are as follows:
Receivable
Governmental Activity:
Pa~able
Area and Uuit Charge $ 285,947 $
Other Nonmajor Governmental Funds 285,947
$ 285,947 $ 285,947
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 2015 are as follows:
Governmental Activity:
General Fund
G.O. Improvement Bonds 2005A
Improvement Note 2009F
Area and Unit Charge
Other Nonmajor Governmental Funds
Total Governmental Activity
Business-type Activity:
Water Fund
Sewer Fund
Total Business-Type Activity
Total
$
$
Transfer In
490,894
683,729
378,000
1,850,348
3,402,971
3,402,971
Transfer Out
$ (590,245)
(670,734)
~2,075,158~
(3,336,137)
(33,417)
(33,417)
$
(66,834~
(3,402,971)
Interfund transfers are other financing sources and uses within the fund financial statements. The purposes of the
transfers are to provide funding for capital improvement projects and capital outlay in accordance with the City's
capital improvement plan. There are also transfers to and from other funds within the nonmajor governmental funds
that are for closing out bond funds and moving the residual to another debt service fund. These transfers are routine
and consistent with past practices. IV-31
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
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 inunaterial and not recorded until received or paid.
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City
pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the
LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City
retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies.
These amounts are considered inunaterial 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 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within the City Hall Complex to New Creations Child Care and
Learning Center, LLC. The lease is dated July I, 2014 and continues through June 30, 2019. The lease requires
escalating annual lease payments of between $5.94 and $8.65 per square foot over the lease term, for a total of
$330,904.
Property under operating lease and held for lease consist of the following:
Building
Less: Accumulated Depreciation
Net
$ 929,970
(495,984)
$ 433,986
Approximate futore minimum lease payments receivable under the noncancelable operating lease are as follows:
Year Endinll December 31, Amount
2016 $ 72,889
2017 75,617
2018 77,901
2019 39,522
$ 265,929
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 17 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial
assistance to private-sector entities fur 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 31,2015, one series of Industrial Revenue Bonds was outstanding with an aggregate
remaining principal balance of $300,000, and one series of Commercial Revenue Notes was outstanding with an
aggregate remaining principal balance of $1,648,987.
Note 18 JOINT VENTURES
!i!:!l
The Centennial Fire District (the District) was established under a joint powers agreement between the City ofLino
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 2015, the City ofLino Lakes' contributions to the District were as follows:
Operating $ 508,394
The audited financial statements of the District as of December 31, 2015 can be reviewed upon request of the
Centennial Fire District.
In January 2014 the City Council voted to start the process to withdraw from the District which will be effective
January 27, 2016. The City created their own department which operations started in January 2016.
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. IV-32
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
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 detennine the City's liability for postemployment healthcare benefits other than pensions as
of January I, 2014.
A. PLAN DESCRIPTION
The City provides benefits for retirees as required by M"mnesota 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, 2015 there were approximately 48 active participants and 6 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 2015, the City contributed
$29,984 to the plan.
C. ANNUAL OPED COST AND NET OPED 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 unfunded 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 actoally paid from the plan, and changes in the City's net OPEB obligation.
Annual Required Contribution
Interest on Net OPEB Obligation
Adjustment to Annual Required Contribution
Annual OPEB Cost (Expense)
Contributions Made
Increase in Net OPEB Obligation
Net OPEB Obligation-Beginning of Year
Net OPEB Obligation -End ofY ear
$ 31,590
972
(3,749)
28,813
(28,984)
(171)
91,023
$ 90,852
The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2015 and the two preceding years:
Percentage
Fiscal Annual of Annual Net
Year OPEB OPEBCost OPEB
Ended Cost Contributed Obliaation
12/3112013 $ 27,437 77.6% $ 83,969
12/31/2014 26,468 73.3% 91,023
12/31/2015 28,814 99.4% 90,852
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31,2015
Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED>
D. FUNDED STATUS AND FUNDING PROGRESS
As of January I, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued
liability (UAAL) was $547,626. The annual payroll for active employees covered by the plan in the
actuarial valuation was $5,265,020 for a ratio ofUAAL to covered payroll of 10.4%.
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.
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 I, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 1% investment rate ofretorn (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 8%, decreasing to an ultimate rate of 3% after six years. The UAAL is being amortized as a
level percentage of projected payrolls on an open basis. The remaining amortization period at December
31,2015 was notto exceed 30 years.
Note 20 PRIOR PERIOD ADJUSTMENT DUE TO CHANGE IN ACCOUNT PRINCIPLE
During fiscal year ended December 31,2015, the City adopted GASB Statement No. 68, Accounting and Financial
Reporting for Pensions, and the related Statement No. 71. As a result, the City's net position as of December 31,
2014 bas been restated to reflect the recognition of the City's proportionate share of the Public Employees'
Retirement Association of Minnesota General Employees' Retirement Fund's (GERF) and Public Employees'
Police and Fire Fund's (PEPFF) net pension liability and related deferred inflows and outflows of resources.
Net Position, December 31, 2014, as Previously Reported
Cumulative Effect of Application of GASB 68, Net Pension Liability
Net Position, December 31, 2014, as Restated
Governmental Business-type
Activities Activities
$ 48,734,868 $ 41,444,300
(4,376,427) (77,959)
$ 44,358,441 $ 41,366,341 IV-33
CITY OF LINO LAKES, MINNESOTA CITY OF LINO LAKES, MINNESOTA
GENERAL FUND GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITIJRES, AND SCHEDULE OF REVENUES, EXPENDJTIJRES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2015 Year Ended December 31, 2015
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Budllet Budllet Actual (Nell!!tive) Budget _Budget Actual _ __lNe!!lltive)
Revenue: Expenditures:
General property taxes: General government:
Current and delinquent $ 7,580,578 $ 6,348,407 $ 6,432,326 $ 83,919 Mayor and council: Fiscal disparities 1,232,171 1,053,732 (178,439)
Excess tax increments 2,982 2,982 Current:
Total general property taxes 7,580,578 7,580,578 7,489,040 ~91,538) Personal services $ 40,638 $ 40,638 $ 39,728 $ 910
Licenses and pennits: Supplies 19 (19)
Business 98,900 111,550 122,349 10,799 Other services and charges 21,500 21,000 20,766 234
Non-business 341,700 402,700 428,853 26,153 Contractnal services 16,000 16,000 16,901 ~901)
Total licenses and permits 440,600 514,250 551,202 36,952 Total mayor and council 78,138 77,638 77,414 224
Intergovernmental: Elections:
State: Current:
Market value credit 5,363 5,363 Personal services 8,604 8,604 10,123 (1,519)
Police state aid 190,000 190,000 226,275 36,275 Supplies 800 800 457 343
MSA maintenance 240,000 255,000 255,979 979 Other services and charges 2,000 2,000 927 1,073
Other 20,000 20,000 61,610 41,610 Contractnal services 100 100 County/Regional: 100
Solid waste 40,000 99,000 99,319 319 Capital outlay 4,600 4,600 4,461 139
Other 4,000 4,000 1,065 ~2,935~ Total elections 16,104 16,104 15,968 136
Total intergovernmental 494,000 568,000 649,611 81,611 Administration:
Special assessments: Current:
Penalties and Interest 15,000 15,000 14,008 ~992~ Personal services 422,305 342,008 351,927 (9,919)
Charges for services: Other services and charges 26,360 18,860 10,035 8,825
General government 4,350 4,350 4,927 577 Contractnal services 8,000 8,000 9,816 (1,816)
Planning/engineering 15,000 15,000 12,722 (2,278) Total administration 456,665 368,86!._ 371,778 ___ _{2.2_10)
Fees retained from collection for Finance:
other governments -SAC/surcharge 2,000 2,000 2,444 444 Current:
Administrative charge -other funds 50,000 50,000 51,619 1,619 Personal services 301,432 301,432 320,323 (18,891)
Aerial map charge -other funds 5,000 5,000 7,832 2,832 Supplies 900 900 1,025 (125)
Public safety 201,200 191,200 197,879 6,679
Total charges for services 277,550 267,550 277,423 9,873 Other services and charges 129,500 129,500 102,809 26,691
Contractnal services 100,900 100,900 99,489 1,411
Fines and forfeits 130,500 120,500 127,803 7,303 Total finance --532,732 532,732 523,646 9,086
Investment earnings 30,000 30,000 27,004 (2,996) Cable TV:
Change in market value (9,578) (9,578) Current:
Refunds 30,000 30,000 54,689 24,689 Personal services 1,735 1,735 1,905 (170)
Miscellaneous:
Gas franchise fees 60,000 60,000 47,914 (12,086) Supplies 50 50 50
Cable TV 12,500 12,500 12,500 Capital outlay 500 500 500
Donations 2,000 2,000 1,925 (75) Total cable TV 2,285 2,285 1,905 380
Other 77,500 98,499 106,613 8,114 Consultants:
Total ntiscellaneous 152,000 172,999 168,952 ~4,047) Current:
Total revenue 9,150,228 9,298,877 9,350,154 51,277
Legal 140,000 132,500 130,277 2,223 IV-34
CITY OF LINO LAKES, MINNESOTA CITY OF LINO LAKES, MINNESOTA
GENERAL FUND GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2015 Year Ended December 31, 2015
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Bu~et Budj!et Actual (Nejlative) Budjlet Bud!let Actual ~ej!!!tivei
Expenditures (continued): Expenditures (continued):
General government (continued): Public works:
Engineering/planning: Streets:
Current: Current:
Contractual services $ 103,576 $ 103,576 $ 100,952 $ 2,624 Personal services $ 574,205 $ 560,205 $ 552,111 $ 8,094
Charter commission: Supplies 142,000 142,000 130,887 11,113
Current: Other services and charges !09,660 109,660 116,140 (6,480)
Other services and charges 2,500 2,500 649 1,851 Contractual services 177,275 177,275 70,360 106,915
General government buildings: Total streets 1,003,140 989,140 869,498 119,642
Current: Fleet:
Personal services 2,175 2,175 2,141 34 Current:
Supplies 29,400 29,400 38,909 (9,509) Personal services 114,099 89,099 74,379 14,720
Other services and charges 308,000 308,000 295,850 12,150 Supplies 224,000 224,000 136,865 87,135
Contractual services 68,000 58,000 54,221 3,779 Other services and charges 56,880 56,880 52,053 4,827
Total general government buildings 407,575 397,575 391,121 6,454 Contractual services 7,500 7,500 2,225 5,275
Total general government 1,739,575 1,633,778 1,613,710 20,068 Total fleet 402,479 377,479 265,522 111,957
Public safety: Total public works 1,405,619 1,366,619 1,135,020 231,599
Police:
Current: Parks and recreation:
Personal services 3,051,475 3,051,475 3,016,413 35,062 Parks:
Supplies 29,050 29,050 25,641 3,409 Current:
Other services and charges 96,230 104,230 89,686 14,544 Personal services 465,109 465,109 439,617 25,492
Contractual services 44,415 44,415 38,792 5,623 Supplies 26,500 26,500 31,781 (5,281)
Capital outlay 22,600 22,600 36,844 (14,244) Other services and charges 47,150 25,650 37,061 (11,411)
Total police 3,243,770 3,251,770 3,207,376 44,394 Contractual services 35,700 35,700 28,537 7,163
Fire protection: Total parks 574,459 552,959 536,996 15,963
Current: Recreation:
Personal services 435,164 384,426 391,843 (7,417) Current:
Supplies 12,700 12,700 12,216 484 Personal services 287,963 287,963 272,791 15,172
Other services and charges 157,000 147,000 96,204 50,796
Supplies 2,500 2,500 2,309 191
Contractual services 513,894 513,894 518,817 (4,923)
Other services and charges 14,750 14,750 14,839 (89)
Contractual services 400 400 1,149 (749)
Capital outlay 807 (807) Total recreation 305,613 305,613 291,088 14,525
Total fire protection 1,118,758 1,058,020 1,019,887 38,133
Building inspection: Total parks and recreation 880,072
Current:
858,572 828,084 30,488
Personal services 181,036 178,035 172,098 5,937
Supplies 750 750 1,322 (572)
Other services and charges 7,130 7,130 5,158 1,972
Contractual services 5,500 5,500 3,738 1,762
Total building inspection 194,416 191,415 182,316 9,099
Total public safety 4,556,944 4,501,205 4,409,579 91,626 IV-35
CITY OF LINO LAKES, MINNESOTA CITY OF LINO LAKES, MINNESOTA
GENERAL FUND GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
Year Ended December 31, 2015 Year Ended December 31, 2015
Variance with Variance with
Final Budget Final Budget
Original Final Positive Original Final Positive
Bud~t Budaet Actual ~ell!!tive) _Budget__ Budget Actual (Negative)
Expenditures (continued): Expenditures (continued):
Conservation of natural resources:
Community development:
Forestry:
Community development:
Current:
Current: Personal services $ 202,755 $ 196,524 $ 190,187 $ 6,337
Personal services $ 35,468 $ 35,468 $ 35,519 $ (51) Supplies 100 100 144 (44)
Supplies 1,250 1,250 82 1,168 Other services and charges 8,400 8,400 18,191 (9,791)
Other services and charges 380 380 338 42 Contractual services 1,400 1,400 935 465
Contractual services 5,000 5,000 5,561 (561) Total community development 212,655 206,424 209,457 (3,033)
Capital outlay 5,000 5,000 4,936 64 Economic development:
Total forestry 47,098 47,098 46,436 662 Current:
Environmental: Personal services 21,646 16,646 13,702 2,944
Current: Supplies ISO ISO ISO
Personal services 52,826 44,660 41,460 3,200 Other services and charges 79,300 75,300 76,327 (1,027)
Supplies 1,200 1,200 250 950 Contractual services 300 300 400 (100)
Other services and charges 7,050 7,050 4,051 2,999 Total economic development 101,396 92,396 90,429 1,967
Planning and zoning commission:
Contractual services 1,200 1,200 1,015 185 Current:
Total environmental 62,276 54,110 46,776 7,334 Personal services 84,960 84,960 89,400 (4,440)
Solid waste abatement: Supplies 200 200 65 135
Current: Other services and charges 14,400 10,450 14,162 (3,712)
Personal services 30,877 48,377 49,702 (1,325) Contractual services 19,000 19,000 19,422 (422)
Supplies Total planning and zoning commission 118,560 114,610 123,049 (8,439)
Other services and charges 550 12,200 8,113 4,087 Total community development 432,611_ 413,430 422,935 (9,505)
Contractual services 6,000 40,000 40,795 (795)
Capital outlay (225) 225 Other:
Total solid waste abatement 37,427 100,577 98,385 2,192 Contingency 100,000
Total expenditures 9,261,622 8,975,389 8,600,925 374,464
Total conservation of natural resources 146,801 201,785 191,597 10,188 Revenue over expenditures (111,394) 323,488 749,229 425,741
Other financing sources (uses):
Transfer in 480,894 480,894 480,894
Transfer out (539,500) (589,500) (590,245) (745)
Total other financing sources (uses) (58,606) po8,606) (109,351) (745)
Net increase (decrease) in fund balance $ (170,000) $ 214,882 639,878 $ 424,996
Fund Balance-January I 5,306,535
Fund balance -December 31 $ 5,946,413 IV-36
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31,2015
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.
General Fund:
General government:
Administration
Community development:
Community Development
Planning and Zoning Commission
$
Final
Budget
368,868
206,424
114,610
The excess expenditures were paid for with available fund balance during 2015.
$
Actual
371,778
209,457
123,049
$
Actual in
Excess of
Budget
(2,910)
(3,033)
(8,439)
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN
Current and Two Preceeding Valuations
Actuarial
Actuarial Accrued
Actuarial Value of Liability Unfunded Funded
Valuation Assets (AAL) AAL Ratio
Date (al Q!.l Q!:al (albl
1/112008 $ -$ 329,191 $ 329,191
11112011 474,770 474,770
111/2014 547,626 547,626
UAALasa
Percentage
Covered of Covered
Payroll Payroll
(cl (Q!-al/c)
$ 4,859,980 6.8%
4,888,702 9.7%
5,265,020 10.4% IV-37
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PERA SCHEDULE OF CITY'S PROPORTIONATE SHARE OF lHE NET PENSION LIABILITY
Last Ten Fiscal Years
PEPFF Schedule ofthe City's Proportionate Share of the Net Pension Liability
Last Ten Fiscal Years*
City's Proportion of the Net Pension Liability
City's Proportionate Share of the Net Pension Liability
City's Covered-Employee Payroll
City's Proportionate Share of the Net Pension Liability as a Percentage oflts
Covered-Employee Payroll
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
*The Amounts Presented for Each Fiscal Year were Determined as of 6/30.
PEPFF Schedule of City Contributions
Last Ten Fiscal Years
Statutorily Required Contributioo
Cootributions in Relation to the Statutorily Required Cootributioo
Contribution Deficiency (Excess)
City's Covered-Employee Payroll
Contributioos as a Percentage of Covered Employee Payroll
NOTE: Information prior to 2014 is not available
$
$
$
$
$
Measurement
Date 6/30/2015
0.2490%
2,829,223 $
2,284,973 $
123.82%
86.61%
2015
393,551
(393,551l
2,429,327
16.20"i.
$
J
$
Measurement
Date 6/3012014
0.2490"/o
2,029,320
2,236,463
2014
90.74%
87.10%
314,426
(314,426)
2,055,072
15.30"/o
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
PERA SCHEDULE OF CITY'S PROPORTIONATE SHARE OF lHE NET PENSION LIABILITY
Last Ten Fiscal Years
GERF Schedule of the City's Proportionate Share of the Net Pension Liability
Last Ten Fiscal Years*
City's Proportion of the Net Pension Liability
City's Proportionate Share of the Net Pension Liability
City's Covered-Employee Payroll
City's Proportionate Share of the Net Pension Liability as a Percentage of Its
Covered-Employee Payroll
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability
*The Amounts Presented for Each Fiscal Year were Determined as of 6/30.
GERF Schedule of City Contributions
Last Ten Fiscal Years
Statutorily Required Contribution
Contributioos in Relation to the Statutorily Required Contributioo
Contribution Deficiency (Excess)
City's Covered-Employee Payroll
Contributions as a Percentage of Covered Employee Payroll
NOTE: Information prior to 2014 is not available
$
$
$
$
$
Measurement
Date 6/3012015
0.0410%
2,124,883 $
2,407,426 $
2015
88.26%
78.20%
182,102 $
(182,102) -
J
2,428,027 $
7.5%
Measurement
Date 6/30/2014
0.0432%
2,039,320
2,240,493
2014
91.02%
78.70%
162,934
(162,934)
2,247,366
7.25% IV-38
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.
Cable TV Fund-established to account for activities relating to their Cable TV.
Program Recreation -established to account for various self-supporting recreational programs.
Blue Heron Days -established to account for the activities associated with the Blue Heron Days festival.
Federal Narcotics -established to account for activities associated with the the receipt and use of federal
narcotics forfeitures.
State Narcotics -established to account for activities associated with the receipt and use of state narcotics
forfeitures.
DUI Forfeitures-established to account activities associated with the receipt and use ofDUI forfeitures.
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 fmance 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:
Building and Facilities Fund -to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving Fund -to account for proceeds from Equipment Certificates and 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 levies, assessments, and developer deposits for future
street sealcoating and overlay projects.
Nonmajor Governmental Funds (Continued)
Capital Project Funds (Continued)
Surface Water Management -to account for the financing of surface water management and storm water
improvements.
Tax Increment Funds -to account for development projects financed with tax increments.
Dedicated Parks -to account for the receipts and use of monies collected from dedicated parks fees.
Muncipal State Aid Fund-to account for the financing of future reconstruction of state aid eligble streets.
135E lnterschange Fund-to account for activity related to the 135EICSAH 14 Interchange Reconstruction
Project.
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 Fund -the Legacy traffic signal charge fund accounts for costs associated with construction
of traffic signals in the City.
Otter Lake Road Exension Fund -this fund accounts for activities relating to the construction performed
in the extension of the Otter Lake Road.
21" Ave Extension Fund-this fund accounts for activities relating to the construction performed in the
extension of 21" Avenue within the City.
Fire House #2 Construction Fund -this fund accounts for activities relating to the construction of Fire
House#2.
Well #6 Construction Fund-this fund accounts for activities relating to the construction of Well# 6 and
well house.
Northpointe Improvements Fund -this fund accounts for activities relating to the construction of streets
and utilities within the Northpointe development.
Birch St/Centerville Rd Improvements Fund -this fund accounts for activities relating to the construction
of street improvements and sanitary sewer extension in conjunction with Fire Station #2.
Blackduck/Aqua Lane Watermain Extension Fund-this fund accounts for activities relating to the trunk
watermain improvements along Aqua Lane to north of Blackduck Drive.
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. IV-39
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS
Deoember 31, 2015
S~cial Revenue SJ!cial Revenue (Continued) Debt Service
Economic Special Certificates
Development Cable TV Program Blue Heron Federal State DUI Revenue of
Authori~ Fund Recreation __l>ai_• Narcotics Narcotics Forfeitures Subtotal Indebtedness
Assets
Cash and investments $ $ 80,237 $ 86,306 $ 14,662 $ 51,389 $ 10,645 s 17,430 s 260,669 $ 125,654
Cash and investments
with escrow agent
Accrued interest receivable
Accounts receivable 217 217
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent 3,155
Due from eounty 4,152
Delinquent tax increment
SpeciaJ assessments receivable:
Delinquent
Noncurrent
Due from county
Delinquent tax increment
Long-term notes receivable 225,000 225,000
Prepaid items 1,177 1,177
Total assets s 225,000 $ 80,237 s 87,700 $ 14,662 $ 51,389 _! 11),§45. $ 17,430 $ 487,063 $ 132,961
Liabilities. Deferred Inflows of Resources
and Fund Balance (Deficit)
Liabilities:
Interfund payable
Accounts payable 3,189 1,415 1,424 835 411 7,274
Salaries payable 420 332 752
Contracts and retainage payable
Advances from other funds
Total liabilities 420 3,521 1,415 1,424 835 411 8,026
Deferred inflows of resources:
Unavailable resources ___ 3_,155
Fund balance (deficit):
Nompendable 1,177 1,177
Re.tricted 225,000 13,247 49,965 9,810 17,019 315,041 129,806
Committed 80,237 83,002 163,239
Assigned
Unassigned (420) (420)
Total fund balance (deficit) 224,580 80,237 84,179 13,247 49,965 9,810 17,019 479,037 _l!2,_806
Total liabilities, deferred inflows of
resources and fund balance (deficit) $ 225,000 $ 80,237 $ 87,700 s 14,662 $ 51,389 $ 10,645 $ 17,430 $ 487,063 $ 132,961 IV-40
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET-NONMAJOR GOVERNMENTAL FUNDS
December31,2015
Debt Service (Continued~ Debt Service ~Continued~
Tax Utility CIP Improvement and
Improvement Abatement Revenue Refunding TIF Utility Revenue Improvement Improvement GO GO EDALeased Debt
Bonds of Bonds Bonds Bonds Bonds Refunding Bonds Bonds of Bonds of Bonds Bonds Revenue Bonds Service
2005B 2006C 20060 2006E ~ 2010 2012A 2013A 2014A 2015A 2015B Subtotal
Assets
Cash and investments $ 18,447 $ 255,753 $ 179,936 $ 884,320 $ 149,896 $ 120,638 $ 255,991 $ $ 127,747 $ 50,605 $ 107,367 $ 2,276,354
Cash and investments
with escrow agent
Accrued interest receivable
Accounts receivable
Due from other governmental units
lnterfund receivable
Taxes receivable:
Delinquent 1,169 3,316 5,893 1,529 15,062
Due from county 188 3,729 6,383 2,416 16,868
Delinquent tax increment
Special assessments receivable:
Delinquent 9,582 9,582
Noncurrent 22,281 37,277 57,088 55,699 172,345
Due from county
Delinquent tax increment
Long-term notes receivable
Prepaid items
Total assets $ 42,085 $ 262,798 $ 226,795 $ 896,596 ~RQli $ 177,726 $ 315,635 $ $ 127,747 $ 50,605 $ 107,367 $ 2,490,211
Liabilities, Deferred Inflows of Resources
and Fund Balance (Deficit)
Liabilities:
Interfimd payable
Accounts payable 200 200 200 200 200 200 200 200 200 200 2,000
Salaries payable
Contracts and retainage payable
Advances from other funds
Total liabilities 200 200 200 200 200 200 200 200 200 200 2,000
Deferred inflows of resources:
Unavailable resources 23,450 3,316 46,859 S,R93 57,08!_ 57,228 196,989
Fund balance (deficit):
Nonspendable
Restricted 18,635 259,282 179,736 890,503 149,696 120,438 258,207 127,547 50,405 107,167 2,291,422
Committed
Assigned
Unassigned: 1200) 1200)
Total fund balance (deficit) 18,635 259,282 179,736 890,503 149,606 120,43!_ __258,20L (200) 127,547 50,405 107,167 2,291,222
Total liabilities. deferred inflows of
resources and fund balance (deficit) $ 42,085 $ 262,798 $ 226,795 $ 896,596 $ 149,896 $ 177,726 $ 315,635 $ $ 127,747 $ 50,605 $ 107,367 $ 2,490,211 IV-41
CITY OF LINO LAKES, MINNESOTA
COMB~GBALANCESHEET-NON~ORGOVERNMENTALFUNDS
December 31, 2015
Ca ita] Projects C!Eital Projects ~Continued!
Tax Tax Tax
Capital Closed Surface Increment Increment Increment
Building and Equipment Bond Street Water Financing Financing Financing Dedicated MSA 135E
Facilities Revolvins: FWid Fund Reconstruction Sealcoating M~ent_ 1-5_ 1-10 1-11 Parks Construction Interchange
Assets
Cash and investments $ 239,655 s 463,297 s $ 667,153 $ 614,124 $ 476,341 $ 209,982 $ 188,941 $ $ 215,515 $ 3,023,600
Cash and investments
with escrow agent
Accrued interest receivable
Accounts receivable 199
Due from other governmental units 1,115
Interftmd receivable 2,317,533 1,246,697 96,225
Taxes receivable:
Delinquent
Due from county 28
Delinquent tax increment 174
Special assessments receivable:
Delinquent 2,436
Noncurrent 40,449 99,675 111,272
Due from county 1,419
Delinquent tax increment
Long-term notes receivable
Prepaid items
-----
Total assets $ 2,557,188 $ 464,412 s 1,287,348 $ 766,828 ~124 $ 591,667 $ 209,982 $ 188,941 $ $ 215,515 $ 3,119,825
Liabilities, Deferred Inflows of Resources
and Fund Balance (Deficit)
Liabilities:
Interfund payable $ $ $ $ $ $ $ $ $ 772,023 $ $ $ 259,135
Accounts payable 3,473 421,149 5,463 1,626 29,648 470 521 625 31
Salaries payable
Contracts and retainage payable 302,314
Advances from other funds 285,947
Total liabilities 3,473 421,149 5,463 ___2Q1940 29,648_ _QO 521 772,648 285,947 ~.166
Deferred inflows of resources:
Unavailable resources 40,623 ___ 99_,675 113,708
Fund balance (deficit):
Nonspendable
Restricted
Committed
Assigned 2,553,715 43,263 1,241,262 667,153 310,184 448,311 209,512 188,420 3,119,825
Unassigned: !70,432) (259,166)
Total fund balance (deficit) 2,553,715 43,263 1,241,262 667,153 310,184 -__ 448,311 ___ 209,512 188,420 (70,432) 3,119,825 (259,166)
Total liabilities, deferred inflows of
resources and fund balance (deficit) $ 2,557,188 $ 464,412 $ 1,287,348 $ 766,828 $ 614,124 $ 591,667 $ 209,982 $ 188,941 $ $ 215,515 $ 3,119,825 IV-42
CITY OF LINO LAKES, MINNESOTA
COMB~GBALANCESHEET-NONNUUORGOVERNMENTALFUNDS
December 31, 2015
Permanent
C!!£ital Projects !Continuedl Caeitai Projects (Continued) ~
Office
Equipment Legacy Woods FireHouse BirchSt/ Blackduck/ Capital Foxborough
Revolving Edge Traffic Otter Lake 21st Ave House #2 We11#6 Northpointe Centerville Ref AquaLn Projects Environment Total
Fund Im~vement ~ Road Ext Ext Construction Construction Improvements Improvements Watermain Ext Subtotal Fund 2015
Assets
Cash and investments $ 194,791 $ $ 113,736 $ 207,609 $ $ 624,252 $ 854,422 $ 413,271 $ 193,123 $ $ 8,699,812 $ 123,791 $ 11,360,626
Cash and investments
with escrow agent
Accrued interest receivable
Accounts receivable 199 416
Due from other governmental units 1,115 1,115
Interfund receivable 3,660,455 3,660,455
Taxes receivable:
Delinquent 15,062
Due from county 28 16,896
Delinquent tax increment 174 174
Special assessments receivable:
Delinquent 2,436 12,018
Noncurrent 251,396 423,741
Due from county 1,419 1,419
Delinquent tax increment
Long-tenn notes receivable 225,000
Prepaid items 1,177
Total assets $ 194,791 $ ~736 $ 207,609 $ $ 624,252 $ 854,422 $ 413,271 $ 193,123 $ s 12,617,034 $ 123,791 $ 15,718,099
Liabilities, Deferred Inflows ofResources
and Fund Balance (Deficit)
Liabilities:
lnterfund payable $ $ $ $ $ 262,864 $ $ $ $ $ 48,895 $ 1,342,917 $ $ 1,342,917
Accounts payable 12,218 1,326 8,949 3,432 6,074 2,191 497,196 506,470
Salaries payable 752
Contracts and retainage payable 38,764 582,033 103,051 35,342 31,503 1,093,007 1,093,007
Advances from other funds 285,947 285,947
Total liabilities 12,218 ~954 590,982 106,483 35,342 37,577 51,086 3,219,067-3,229,093
Deferred inflows of resources:
Unavailable resources 254,006 450,995
Fund balance (deficit):
Nonspendable 100,000 101,177
Restricted 23,791 2,630,254
Committed 163,239
Assigned 182.573 113,736 207,609 33,270 747,939 377,929 155,546 10,600,247 10,600,247
Unassigned: (302,954) (51,086) (1,456,286) (!,456,906)
Total ftmd balance (deficit) 182,573 113,736 _107,609 (3(!~,954) 33,270 747,939 377,929 155,546 (51,086) 9,143,961_ 123,791 12,038,011
Total liabilities, deferred inflows of
resources and fund balance (deficit) $ 194,791 $ $ 113,736 $ 207,609 s $ 624,252 s 854,422 $ 413,271 $ 193,123 $ $ 12,617,034 $ 123,791 $ 15,718,099 IV-43
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31,2015
S2ecial Revenue S~cial Revenue (Continued) Debt Service
Economic Special Certificates
Development Cable TV Program Blue Heron Federal State DUI Revenue of
Authority Fund Recreation Days Narcotics Narcotics Forfeitures Subtotal Indebtedness
Revenue:
General property taxes ~ ~ ~ ~ ~ $ $ $ $ 300,838
Tax increments
Intergovernmental
Special assessments 318
Charges for services 40,626 129,592 170,218
Investment earnings 452 827 90 463 51 53 1,936 1,069
Net increase (decrease} in fair
value of investments (172) (299) (33) (176) (19) (20) (719) (423)
Refunds
Miscellaneous 30 21,054 86,588 9,004 17,845 134,521
Total revenue 40,906 130,150 ___ 2_1,111 86,875 9,036 17,878 305,956 301,802
Expenditures:
Currento
General government 1,165 1,165
Public safety 76,557 5,037 2,387 83,981
Parks, recreation and forestry 150,020 19,185 169,205
Conservation of natural resources
Community development
Capita] outlay:
General government
Public safety
Public works
Debt service:
Principal 276,000
Interest and fiscal charges 11,298
Bond issuance costs
Total expenditures 1,165 150,020 19,185 76,557 5,037 2,387 254,351 287,298
Revenue over (under) expenditures (1,165! 40,906 p9,870) 1,926 ___ 1_0,318 3,999 15,491 51,605 14,504
Other fmancing sources (uses):
Transfer in 745 745
Transfer out (10,000) (10,000)
Issuance of debt
Premium on bonds issued
Total other financing
sources (uses) 745 (10,000! ~9,255)
Net increase (decrease) in fund balance (420) 40,906 (29,870) 1,926 10,318 3,999 15,491 42,350 14,504
Fund balance (deficit)-
Beginning of year 225,000 39,331 114,049 11,321 39,647 5,811 1,528 436,687 115,302
Fund balance (deficit)-End of Year $ 224,580 $ 80,237 $ 84,179 $ 13,247 $ 49,965 $ 9,810 $ 17,019 $ 479,037 $ 129,806 IV-44
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31,2015
Debt Senrice (Continued) Debt Service ~Continued!
Tax Utility CIP Improvement and
Improvement Abatement Revenue Refunding TIF Utility Revenue Improvement Improvement GO GO EDALeased Debt
Bonds of Bonds Bonds Bonds Bonds Refunding Bonds Bonds of Bonds of Boods Bonds Revenue Bonds Service
2005B 2006C 20060 2006E 2007A 2010 2012A 2013A ~~ 2015B Subto<al
Revenue:
General property taxes s 876 $ 264,155 $ $ 449,496 $ $ $ 178,816 $ $ $ $ $ 1,194,181
Tax increments
Intergovernmental
Special assessments 18,052 441 26,608 808 16,854 21,246 84,327
Charges for services
Investment earnings 210 610 651 3,627 742 800 125 201 382 8,417
Net increase (decrease) in fair
value of invesbnents (13) (209) (234) (1,308) (256) (274) (46) (75) (140) (2,978)
Refunds
Miscellaneous
Total revenue 19,125 264,997 27,025 452,623 17,340 200,588 79 ---1-26-242 1,283,947
Expenditures:
Current:
General government
Public safety
Parks, recreation and forestry
Conservation of natural resources
Community development
Capital outlay:
General government
Public safety
Public works
Debt service:
Principal 420,000 155,000 60,000 360,000 360,000 100,000 220,000 60,425 2,011,425
Interest and fiscal charges 13,450 85,893 7,683 56,450 105,176 20,850 300,800
Bond issuance costs 19,483 17,965 24,183 200 1,000 62,831
Total expenditures 433,450 240,893 67,683 416,450 465,176 120,850 239,483 78,390 24,183 200 1,000 2,375,056
Revenue over (under) expenditures (414,325) 24,104 !40,658J 36,173 (465,176l !103,510) (38,895l !78,390) ~ ____QQ (758) (1,091,109)
Other financing sources (uses):
Transfer in 66,834 464,976 94,936 130,341 757,087
Transfer out
Issuance of debt 49,474 106,668 156,142
Premium on bonds issued ----~ 1,257 2,262
Total other financing
SOW'CeS (uses) 66,834 464,976 94,936 ~~ 107,925 915,491
Net increase (decrease) in fund balance (414,325) 24,104 26,176 36,173 (200) (103,510) (38,895) 16,546 106,237 50,405 107,167 (175,618)
Fund balance (deficit)-
Beginning of year 432,960 235,178 153,560 854,330 149,896 223,948 297,102 (16,7461 ~----2,466,840
Fund balance (deficit)-End of Year $ 18,635 $ 259,282 $ 179,736 $ 890,503 $ ~~696 $ 120,438 $ 258,207 $ (200) s 127,547 ~ $ 107,167 $ 2,291,222 IV-45
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2015
£!Eital Projects Capital Projects ~Continuedl
Capital Closed Surface Tax Increment Tax Increment Tax Increment
Building and Equipment Bond Street Water Financing Financing Financing DedicaU:<l MSA I35E
Facilities Revolving Fund Fund Reconstruction Sealcoating Management 1-5 1-10 I-ll Parks Construction Interchange
Revenue:
General property taxes
Tax increments 36,118 148,315 82,853
Intergovernmental
Special assessments 24,818 14,192 66,877
Charges for services 2,500
Investment earnings 3,264 1,608 8,445 3,977 4,674 2,928 1,111 1,491 1,013 24,109
Net increase (decrease) in fair
value of investments {1,203) {652) {3,100) {1,466) {1,690) {1,077) {412) {544) {380) {8,822)
Refunds 71,993
Miscellaneous 135,524 55,609 142,109
Total revenue 137,585 59,065 30,163 16,703 ___ 7_4,977 68,728 36,817 149,262 82,853 142,742 15,287
Expenditures:
Current:
General government 11,048 12,575
Public safety 804,382 95,270 328,373
Parks, recreation and forestry
Conservation of natural resources
Community development 1,059 1,564 1,529
Capital outlay:
General government 6,727
Public safety 1,161,951
Public works 4,237 229,259
Debt service:
Principal
Interest and fiscal charges 11,241
Bond issuance costs
Total expenditures 22,012 1,391,210 12,575 804,382 95,270 1,059 1,564 1,529 11,241 328,373
Revenue over (under) expenditures 115,573 __ {1,332,145) 17,588 16,703 {729,405) _(26,542) 35,758 --~
147,698 81,324 131,501 15,287 (g8,373)
Other financing sources (uses):
Transfer in 514,500 50,000
Transfer out (480,894) {148,315) {82,853) {817,682)
Issuance of debt 1,161,250
Premium on bonds issued
Total other financing
sources {uses) 1,215,772 ~480,894) 514,500 {148,315) 182,853) 50,000 {817,682)
Net increase (decrease) in fund balance 115,573 {116,373) {463,306) 16,703 {214,905) {26,542) 35,758 {617) {1,529) 181,501 {802,395) {328,373)
Fund balance (deficit) R
Beginning of year 2,438,142 159,636 1,704,568 650,450 525,089 474,853 173,754 189,037 {771,119l~ 3,922,220 69,207
Fund balance (deficit)· End ofYear $ 2,553,715 $ 43,263 s 1,241,262 $ 667,153 $ 310,184 $ --~448,311 $ 209,512 $ 188,420 $ {772,648) s f70,432) s 3,119,825 s {259,166) IV-46
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE-NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2015
Permanent
C!!J!ital Projects (Continued) caeital Projects (Continued! ~
Office
Equipment Legacy Woods Fire House Bin:hSt/ Blackduck/ Capital Foxborougb
Revolving Edge Traffic Otter Lake 21st Ave House #2 Well#6 Northpointe Centerville Rd AquaLn Projects Environment Total
~ Improvement ~ Road Ext Extension Construction Construction lm~vements Ime!2!ements Watermain Ext Subtotal Fund 2015
Revenue:
General property taxes $ $ $ $ $ $ $ $ $ $ $ $ $ 1,194,181
Tax increments 267,286 267,286
Intergovernmental 30,016 30,016 30,016
Special assessments 105,887 190,214
Charges fOI' services 2,500 172,718
Investment earnings 1,335 1,566 554 1,534 8,349 5,868 5,036 767 77,629 482 88,464
Net increase (decrease) in fair
value of investments (485) (203) (556) (2,774) (2,147) (1,803) (254) (27,568) (31,265)
Refunds 71,993 71,993
Miscellaneous 333,242 2,675 470,438
Total revenue 850 1,566 30,367 978 5,575 3,721 3,233 513 -~~85_ 3,157 2,454,045
Expenditures:
Cu=nt:
General government 9,929 33,552 34,717
Public safety 542 24,421 109,872 4,190,303 333,240 754,193 798,170 7,438,766 7,522,747
Parks, recreation and forestry 169,205
Conservation of natura] resources 8,100 8,100
Community development 4,152 4,152
Capital outlay:
General government 61,205 67,932 67,932
Public safety 1,161,951 1,161,951
Public works 54,125 2,537 290,158 290,158
Debt service:
Principal 51,086 51,086 2,062,511
Interest and fiscal charges 11,241 312,041
Bond issuance costs 62,831
Total expenditures 71,134 -------54_2_ ~ 109,872 4,190,303 333,240 754,193 800,707 51,086 9,058,838 8,100 11,696,345 ----
Revenue over (under) expenditures (70,284) ~~~ (109,872) (4,184,728) (329,519) (750,960) (800,194) (51,086) (8,197,853) (4,943) (9,242,300)
Other financing sources (uses):
Transfer in 25,000 503,016 1,092,516 1,850,348
Transfer out (535,414) (2,065,158) (2,075, 158)
Issuance of debt 4,273,332 454,823 5,889,405 6,045,547
Premium on bonds issued 50,351 9,232 59,583 61,845 ---- ----Total other financing
sources (uses) 25,000 ~--------4,323,683 967,071 5,030,868 5,937,104
Net increase (decrease) in fund balance (45,284) (533,848) 29,825 (77,568) (109,872) 138,955 (329,519) (750,960) 166,877 (51,086) (3,166,985) (4,943) (3,305,196)
Fund balance (deficit) M
Beginning of year 227,857 ~~~ (193,082) (105,685) 1,077,458 1,128,889 (11,331) 12,310,946 128,734 15,343,207
Fund ballutce (deficit)-End of Year $ 182,573 ~ $ 113,736 ~ $ {302,954) $ 33,270 $ 747,939 $ 377,929 $ 155,546 __!______Ql,086) $ _9,143,961_ $ 123,791 $ 12,038,011 IV-47
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, 2015
Original Final
Budllet Budjlet
Revenue:
Charges for services:
Recreation fees $ 144,935 $ 144,935
Investment earnings
Change in market value
Miscellaneous
Total revenue 144,935 144,935
Expenditures:
Current:
Personal services 58,205 58,205
Supplies 35,650 35,650
Other services and charges
Contractual services 28,350 28,350
Capital outlay 3,000 3,000
Total expenditures 125,205 125,205
Other financing sources (uses):
Transfers out
Net increase (decrease) in fund balance $ 19,730 $ 19,730
Fund balance -January I
Fund balance-December 31
2015
Actual
$ 129,592
827
(299)
30
130,150
65,083
52,623
1,520
30,794
150,020
(10,000)
(29,870)
114,049 -
$ 84,179
Variance with
Final Budget
Positive
~ellative)
$ (15,343)
827
(299)
30
(14,785)
(6,878)
(16,973)
(1,520)
(2,444)
3,000
(24,815)
{10,000)
$ (49,600)
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. IV-48
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES-FIDUCIARY FUNDS-AGENCY FUNDS
Year Ended December 31, 2015
Balance Balance
January 1, December 31,
2015 Additions Deductions 2015
Assets
Cash and investments $ 783,438 $ 100,627 $ 156,430 $ 727,635
Liabilities
Deposits payable $ 783,433 $ 100,627 $ 156,425 $ 727,635
IV-49
PROPOSAL SALE DATE: October 24, 2016
________________________________ Phone: 651-223-3000 * Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Lino Lakes, Minnesota
$1,420,000* General Obligation Water Utility Revenue Bonds, Series 2016A
For the Series 2016A Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of
$_________________ (which may not be less than $1,407,930) plus accrued interest, if any, to the date of delivery.
Year Interest Rate (%) Yield (%) Dollar Price Year Interest Rate (%) Yield (%) Dollar Price
2018 % % % 2023 % % %
2019 % % % 2024 % % %
2020 % % % 2025 % % %
2021 % % % 2026 % % %
2022 % % % 2027 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of October 24, 2016 we accept all of the terms and conditions of the Terms of Proposal published in
the Preliminary Official Statement dated October 7, 2016 including the City’s right to modify the principal amount of the Series 2016A
Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Series 2016A Bonds in accordance with said Terms of
Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank
spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the
following computations:
NET INTEREST COST: $____________________________
TRUE INTEREST RATE: ______________ %
The Bidder will not will purchase municipal bond insurance from .
Account Members
______________________________
Account Manager
By: ___________________________
Phone: ________________________
...........................................................................................................................................................................................................................
The foregoing proposal has been accepted by the City.
Attest: _______________________________ Date: ________________________________
...........................................................................................................................................................................................................................
PROPOSAL SALE DATE: October 24, 2016
________________________________ Phone: 651-223-3000 * Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Lino Lakes, Minnesota
$1,980,000* Taxable General Obligation Improvement Refunding Bonds, Series 2016B
For the Series 2016B Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of
$_________________ (which may not be less than $1,966,140) plus accrued interest, if any, to the date of delivery.
Year Interest Rate (%) Yield (%) Dollar Price
2018 % % %
2019 % % %
2020 % % %
2021 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of October 24, 2016 we accept all of the terms and conditions of the Terms of Proposal published in
the Preliminary Official Statement dated October 7, 2016 including the City’s right to modify the principal amount of the Series 2016B
Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Series 2016B Bonds in accordance with said Terms of
Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank
spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the
following computations:
NET INTEREST COST: $____________________________
TRUE INTEREST RATE: ______________ %
The Bidder will not will purchase municipal bond insurance from .
Account Members
______________________________
Account Manager
By: ___________________________
Phone: ________________________
...........................................................................................................................................................................................................................
The foregoing proposal has been accepted by the City.
Attest: _______________________________ Date: ________________________________
...........................................................................................................................................................................................................................
PROPOSAL SALE DATE: October 24, 2016
________________________________ Phone: 651-223-3000 * Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Lino Lakes, Minnesota
$1,600,000* General Obligation Tax Abatement Refunding Bonds, Series 2016C
For the Series 2016C Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of
$_________________ (which may not be less than $1,590,400) plus accrued interest, if any, to the date of delivery.
Year Interest Rate (%) Yield (%) Dollar Price
2018 % % %
2019 % % %
2020 % % %
2021 % % %
2021 % % %
2022 % % %
2023 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of October 24, 2016 we accept all of the terms and conditions of the Terms of Proposal published in
the Preliminary Official Statement dated October 7, 2016 including the City’s right to modify the principal amount of the Series 2016C
Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Series 2016C Bonds in accordance with said Terms of
Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank
spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the
following computations:
NET INTEREST COST: $____________________________
TRUE INTEREST RATE: ______________ %
The Bidder will not will purchase municipal bond insurance from .
Account Members
______________________________
Account Manager
By: ___________________________
Phone: ________________________
...........................................................................................................................................................................................................................
The foregoing proposal has been accepted by the City.
Attest: _______________________________ Date: ________________________________
...........................................................................................................................................................................................................................
486864v1 JAE LN140-117
Extract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lino
Lakes, Minnesota, was duly held in the City Hall in said City on Monday, October 24, 2016, commencing
at 6:30 P.M.
The following members were present:
and the following were absent:
* * * * * * * * *
The Mayor announced that the next order of business was consideration of the proposals which
had been received for the purchase of the City’s General Obligation Water Utility Revenue Bonds,
Series 2016A, to be issued in the original aggregate principal amount of $1,420,000.
The City Administrator presented a tabulation of the proposals that had been received in the
manner specified in the Terms of Proposal for the Bonds. The proposals are as set forth in EXHIBIT A
attached.
After due consideration of the proposals, Member ________ then introduced the following
written resolution, the reading of which was dispensed with by unanimous consent, and moved its
adoption:
486864v1 JAE LN140-117 2
RESOLUTION NO. 16-145
A RESOLUTION AWARDING THE SALE OF GENERAL
OBLIGATION WATER UTILITY REVENUE BONDS,
SERIES 2016A, IN THE ORIGINAL AGGREGATE PRINCIPAL
AMOUNT OF $1,420,000; FIXING THEIR FORM AND
SPECIFICATIONS; DIRECTING THEIR EXECUTION AND
DELIVERY; AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota
(the “City”), as follows:
Section 1. Sale of Bonds.
1.01. Authorization for Sale of Bonds. Pursuant to a resolution adopted by the City Council of
the City on September 26, 2016, the City authorized the sale of its General Obligation Water Utility
Revenue Bonds, Series 2016A (the “Bonds”), to finance the construction of various improvements to the
City’s water system (the “Project”), pursuant to Minnesota Statutes, Chapters 444 and 475, as amended
(collectively, the “Act”).
1.02. Award to the Purchaser and Interest Rates. The proposal of ___________________ (the
“Purchaser”) to purchase the Bonds of the City is hereby found and determined to be a reasonable offer
and is hereby accepted, the proposal being to purchase the Bonds at a price of $__________ (par amount
of $1,420,000, [plus original issue premium of $__________,] [less original issue discount of
$___________,] less underwriter’s discount of $_________), plus accrued interest to date of delivery, if
any, for Bonds bearing interest as follows:
Year Interest Rate Year Interest Rate
2018 % 2023 %
2019 2024
2020 2025
2021 2026
2022 2027
True interest cost: ____________%
1.03. Purchase Contract. The sum of $__________, being the amount proposed by the
Purchaser in excess of $1,407,930, shall be credited to the Debt Service Fund hereinafter created or
deposited in the Construction Fund hereinafter created, as determined by the Finance Director of the City
in consultation with the City’s municipal advisor. The Finance Director is directed to deposit the good
faith check or deposit of the Purchaser, pending completion of the sale of the Bonds, and to return the
good faith deposits of the unsuccessful proposers. The Mayor and City Administrator are directed to
execute a contract with the Purchaser on behalf of the City.
1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the
Bonds pursuant to the Act and the City Charter in the total principal amount of $1,420,000, originally
dated November 23, 2016, in the denomination of $5,000 each or any integral multiple thereof, numbered
No. R-1, upward, bearing interest as above set forth, and maturing serially on February 1 in the years and
amounts as follows:
486864v1 JAE LN140-117 3
Year Amount Year Amount
2018 $ 2023 $
2019 2024
2020 2025
2021 2026
2022 2027
1.05. Optional Redemption. The City may elect on February 1, 2025, and on any day thereafter to
prepay Bonds due on or after February 1, 2026. Redemption may be in whole or in part and if in part, at the
option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of
such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest in such
maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such
maturity to be redeemed. Prepayments will be at a price of par plus accrued interest.
[1.06. Mandatory Redemption; Term Bond. To be completed if Term Bonds are requested by the
Purchaser.]
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest
thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft
issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment
date preceding the date of authentication to which interest on the Bond has been paid or made available
for payment, unless (i) the date of authentication is an interest payment date to which interest has been
paid or made available for payment, in which case the Bond will be dated as of the date of
authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case
the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on
February 1 and August 1 of each year, commencing August 1, 2017, to the registered owners of record
thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or
not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (the “Registrar”). The effect of registration and the rights and duties of the City and the
Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond
register in which the Registrar provides for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be registered, transferred or
exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory
to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The Registrar may, however, close the books for
486864v1 JAE LN140-117 4
registration of any transfer after the fifteenth day of the month preceding each interest payment
date and until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate
principal amount and maturity as requested by the registered owner or the owner’s attorney in
writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar
for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the
requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in
good faith, to make transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether
the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the
principal of and interest on the Bond and for all other purposes and payments so made to
registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the
liability upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner
thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee
or other governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver any new Bond of like amount, number,
maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated
Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of
the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a
Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the
Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the
Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it
and as provided by law, in which both the City and the Registrar must be named as obligees.
Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such
cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has
already matured or been called for redemption in accordance with its terms it is not necessary to
issue a new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the
redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by publishing the
notice if required by law. Failure to give notice by publication or by mail to any registered owner, or
any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds
so called for redemption will cease to bear interest after the specified redemption date, provided that
the funds for the redemption are on deposit with the place of payment at that time.
486864v1 JAE LN140-117 5
2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association,
Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to
execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of
the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized
by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The
City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The
City reserves the right to remove the Registrar upon thirty (30) days’ notice and upon the appointment of
a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its
possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or
before each principal or interest due date, without further order of this Council, the City Administrator
must transmit to the Registrar monies sufficient for the payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction
of the Finance Director and executed on behalf of the City by the signatures of the Mayor and the City
Administrator, provided that those signatures may be printed, engraved or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to
be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any
security or benefit under this resolution unless and until a certificate of authentication on the Bond has
been duly executed by the manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same representative. The executed
certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered
under this resolution. When the Bonds have been so prepared, executed and authenticated, the City
Administrator will deliver the same to the Purchaser upon payment of the purchase price in accordance
with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the
application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one
or more typewritten temporary Bonds in substantially the form set forth in EXHIBIT B attached hereto,
with such changes as may be necessary to reflect more than one maturity in a single temporary bond.
Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the
form as attached hereto as EXHIBIT B.
3.02. Approving Legal Opinion. The City Administrator is directed to obtain a copy of the
proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to
be complete except as to dating thereof and to cause the opinion to be printed on or accompany each
Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds are payable from the General Obligation Water Utility
Revenue Bonds, Series 2016A Debt Service Fund (the “Debt Service Fund”) hereby created. The Debt
Service Fund shall be administered by the Finance Director as a bookkeeping account separate and apart
from all other funds maintained in the official financial records of the City. The City will continue to
maintain and operate its Water Fund to which will be credited all gross revenues of the water system and out
486864v1 JAE LN140-117 6
of which will be paid all normal and reasonable expenses of current operations of such system. Any balances
therein are deemed net revenues (the “Net Revenues”) and will be transferred, from time to time, to the Debt
Service Fund, which Debt Service Fund will be used only to pay principal of and interest on the Bonds and
any other bonds similarly authorized. There will always be retained in the Debt Service Fund a sufficient
amount to pay principal of and interest on all the Bonds, and the Finance Director must report any current
or anticipated deficiency in the Debt Service Fund to the City Council. There is also appropriated to the
Debt Service Fund (i) capitalized interest financed from proceeds of the Bonds, if any; and (ii) amounts
over the minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit
in the Debt Service Fund in accordance with Section 1.03 hereof.
4.02. Construction Fund. The City hereby creates the General Obligation Water Utility
Revenue Bonds, Series 2016A Construction Fund (the “Construction Fund”). Proceeds of the Bonds, less
the appropriations made in Section 4.01 hereof, will be deposited in the Construction Fund to be used solely
to defray expenses of the Project. When the Project is completed and the cost thereof paid, the Construction
Fund is to be closed and any funds remaining may be deposited in the Debt Service Fund.
4.03. City Covenants. The City Council covenants and agrees with the holders of the Bonds
that so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following
covenants and agreements:
(a) The City will continue to maintain and efficiently operate the water system as a
public utility and convenience free from competition of other like municipal utilities and will
cause all revenues therefrom to be deposited in bank accounts and credited to the Water Fund, as
hereinabove provided, and will make no expenditures from those accounts except for a duly
authorized purpose and in accordance with this resolution.
(b) The City will also maintain the Debt Service Fund as a separate account and will
cause money to be credited thereto from time to time, out of Net Revenues from the water system
in sums sufficient to pay principal of and interest on the Bonds when due.
(c) The City will keep and maintain proper and adequate books of records and
accounts separate from all other records of the City in which will be complete and correct entries
as to all transactions relating to the water system and which will be open to inspection and
copying by any Bondholder, or the Bondholder’s agent or attorney, at any reasonable time, and it
will furnish certified transcripts therefrom upon request and upon payment of a reasonable fee
therefor, and said account will be audited at least annually by a qualified public accountant and
statements of such audit and report will be furnished to all Bondholders upon request.
(d) The City Council will cause persons handling revenues of the water system to be
bonded in reasonable amounts for the protection of the City and the Bondholders and will cause
the funds collected on account of the operations of such systems to be deposited in a bank whose
deposits are guaranteed under the Federal Deposit Insurance Law.
(e) The City Council will keep the water system insured at all times against loss by
fire, tornado and other risks customarily insured against with an insurer or insurers in good
standing, in such amounts as are customary for like plants, to protect the holders, from time to
time, of the Bonds and the City from any loss due to any such casualty and will apply the
proceeds of such insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform all duties with
reference to the water system as required by law.
486864v1 JAE LN140-117 7
(g) The City will impose and collect charges of the nature authorized by
Section 444.075 of the Act, at the times and in the amounts required to produce Net Revenues
adequate to pay all principal and interest when due on the Bonds and to create and maintain such
reserves securing said payments as may be provided in this resolution.
(h) The City Council will levy general ad valorem taxes on all taxable property in the
City when required to meet any deficiency in Net Revenues.
4.04. General Obligation Pledge. For the prompt and full payment of the principal of and interest
on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be
and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all
principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be
promptly paid out of monies in the general fund of the City which are available for such purpose, and such
general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient
balance is available therein.
4.05. Debt Service Coverage. It is hereby determined that the estimated collection of Net
Revenues from the water system of the City for the payment of principal and interest on the Bonds will
produce at least five percent (5%) in excess of the amount needed to meet, when due, the principal and
interest payments on the Bonds and that no tax levy is needed at this time.
4.06. Filing of Resolution. The City Administrator is authorized and directed to file a certified
copy of this resolution with the Manager of Property Records and Taxation of Anoka County, Minnesota and
to obtain the certificate required by Section 475.63 of the Act.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other certificates, affidavits and transcripts as may be required to show the facts within
their knowledge or as shown by the books and records in their custody and under their control, relating to
the validity and marketability of the Bonds, and such instruments, including any heretofore furnished,
may be deemed representations of the City as to the facts stated therein.
5.02. Certification as to Official Statement. The Mayor, the City Administrator, and the Finance
Director are authorized and directed to certify that they have examined the Official Statement prepared
and circulated in connection with the issuance and sale of the Bonds and that to the best of their
knowledge and belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
5.03. Other Certificates. The Mayor, the City Administrator, and the Finance Director are
hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required
as a condition of sale. Unless litigation shall have been commenced and be pending questioning the
Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City
Administrator, and the Finance Director shall also execute and deliver to the Purchaser a suitable
certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a
certificate as to payment for and delivery of the Bonds.
486864v1 JAE LN140-117 8
Section 6. Tax Covenants.
6.01. Tax-Exempt Bonds. The City covenants and agrees with the holders from time to time of
the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action
which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code
of 1986, as amended (the “Code”), and the Treasury Regulations promulgated thereunder, in effect at the time
of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative action
within its power that may be necessary to ensure that such interest will not become subject to taxation under
the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made
applicable to the Bonds.
6.02. Rebate.
(a) The City will comply with requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the
Code, including without limitation requirements relating to temporary periods for investments,
limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of
excess investment earnings to the United States if the Bonds (together with other obligations
reasonably expected to be issued in calendar year 2016) exceed the small-issuer exception amount of
$5,000,000.
(b) For purposes of qualifying for the small issuer exception to the federal arbitrage
rebate requirements with respect to the Bonds, the City hereby finds, determines, and declares that
the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the
City (and all subordinate entities of the City) during the calendar year in which the Bonds are issued
and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning
of Section 148(f)(4)(D) of the Code.
6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the
Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the Bonds to be
“private activity bonds” within the meaning of Sections 103 and 141 through 150 of the Code.
6.04. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as “qualified
tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the
following factual statements and representations:
(a) the Bonds are not “private activity bonds” as defined in Section 141 of the Code;
(b) the City hereby designates the Bonds as “qualified tax-exempt obligations” for
purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than any
private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City
(and all subordinate entities of the City) during calendar year 2016 will not exceed $10,000,000;
and
(d) not more than $10,000,000 of obligations issued by the City during calendar year
2016 have been designated for purposes of Section 265(b)(3) of the Code.
6.05. Procedural Requirements. The City will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations made by this section.
486864v1 JAE LN140-117 9
Section 7. Book-Entry System; Limited Obligation of City.
7.01. The Depository Trust Company. The Bonds will be initially issued in the form of a
separate single typewritten or printed fully registered Bond for each of the maturities set forth in
Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the
registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this
section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in
the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent
will have no responsibility or obligation to any broker dealers, banks and other financial institutions from
time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other
person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any
other person (other than a registered owner of Bonds, as shown by the registration books kept by the
Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the
payment to any Participant or any other person, other than a registered owner of Bonds, of any amount
with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the
Paying Agent may treat and consider the person in whose name each Bond is registered in the registration
books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of
principal, premium and interest with respect to such Bond, for the purpose of registering transfers with
respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if
any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the
registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy
and discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest
on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds,
as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the
obligation of this resolution. Upon delivery by DTC to the City Administrator of a written notice to the
effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede &
Co.” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator
will promptly deliver a copy of the same to the Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action
necessary for all representations of the City in the Representation Letter with respect to the Registrar and
Paying Agent, respectively, to be complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City
Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds
that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the
Participants, of the availability through DTC of Bond certificates. In such event the City will issue,
transfer and exchange Bond certificates as requested by DTC and any other registered owners in
accordance with the provisions of this resolution. DTC may determine to discontinue providing its
services with respect to the Bonds at any time by giving notice to the City and discharging its
responsibilities with respect thereto under applicable law. In such event, if no successor securities
486864v1 JAE LN140-117 10
depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in
accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method
of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with
respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will
be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth
in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate”
means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and
dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended
from time to time in accordance with the terms thereof.
8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to
comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect
to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate,
including seeking mandate or specific performance by court order, to cause the City to comply with its
obligations under this section.
Section 9. Defeasance. When all Bonds and all interest thereon have been discharged as
provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full
payment of the principal of and interest on the Bonds will remain in full force and effect. The City may
discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum
sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be
discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit.
(The remainder of this page is intentionally left blank.)
486864v1 JAE LN140-117 11
The motion for the adoption of the foregoing resolution was duly seconded by Member _______,
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
486864v1 JAE LN140-117 A-1
EXHIBIT A
PROPOSALS
486864v1 JAE LN140-117 B-1
EXHIBIT B
FORM OF BOND
No. R-_____ $________
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
GENERAL OBLIGATION WATER UTILITY REVENUE BOND
SERIES 2016A
Rate
Maturity
Date of
Original Issue
CUSIP
February 1, 20__ November 23, 2016
Registered Owner: CEDE & CO.
The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation in
Anoka County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby
promises to pay to the Registered Owner specified above or registered assigns, the principal sum of
$__________ on the maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2017,
to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether
or not a business day) of the immediately preceding month. The interest hereon and, upon presentation
and surrender hereof, the principal hereof are payable in lawful money of the United States of America by
check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond Registrar, Paying
Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution
described herein. For the prompt and full payment of such principal and interest as the same respectively
become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably
pledged.
The City may elect on February 1, 2025, and on any day thereafter to prepay Bonds due on or after
February 1, 2026. Redemption may be in whole or in part and if in part, at the option of the City and in such
manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will
notify The Depository Trust Company (“DTC”) of the particular amount of such maturity to be prepaid.
DTC will determine by lot the amount of each participant’s interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be redeemed.
Prepayments will be at a price of par plus accrued interest.
This Bond is one of an issue in the aggregate principal amount of $1,420,000 all of like original
issue date and tenor, except as to number, maturity date, interest rate, and redemption privilege, all issued
pursuant to a resolution adopted by the City Council on October 24, 2016 (the “Resolution”), for the
purpose of providing money to defray the expenses incurred and to be incurred in making certain
improvements to the water system of the City, pursuant to and in full conformity with the home rule
charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes,
Chapters 444 and 475, as amended, and the principal hereof and interest hereon are payable primarily
from net revenues of the water system of the City, as set forth in the Resolution to which reference is
486864v1 JAE LN140-117 B-2
made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are
irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem
taxes on all taxable property in the City in the event of any deficiency in net revenues pledged, which
taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as
fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities.
The City Council has designated the issue of Bonds of which this Bond forms a part as “qualified
tax-exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986,
as amended (the “Code”) relating to disallowance of interest expense for financial institutions and within
the $10 million limit allowed by the Code for the calendar year of issue.
IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has
covenanted and agreed that it will continue to own and operate the water system free from competition by
other like municipal utilities; that adequate insurance on said system and suitable fidelity bonds on
employees will be carried; that proper and adequate books of account will be kept showing all receipts
and disbursements relating to the Water Fund, into which it will pay all of the gross revenues from the
water system; that it will also create and maintain a General Obligation Water Utility Revenue Bonds,
Series 2016A Debt Service Fund, into which it will pay, out of the net revenues from the water system a
sum sufficient to pay principal of the Bonds and interest on the Bonds when due; and that it will provide,
by ad valorem tax levies, for any deficiency in required net revenues of the water system.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered
owner hereof in person or by the owner’s attorney duly authorized in writing, upon surrender hereof
together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other
authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to
be issued in the name of the transferee or registered owner, of the same aggregate principal amount,
bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee
or governmental charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter and the Constitution and laws of the State of
Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this
Bond in order to make it a valid and binding general obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required, and that the issuance of
this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory, or charter
limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under
the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the
Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below.
486864v1 JAE LN140-117 B-3
Dated: November 23, 2016
CITY OF LINO LAKES, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Administrator
_________________________________
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
_________________________________
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common UNIF GIFT MIN ACT
_________ Custodian _________
(Cust) (Minor)
TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors
Act, State of _______________
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
Additional abbreviations may also be used though not in the above list.
________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________ the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint _________________________ attorney to transfer the said
Bond on the books kept for registration of the within Bond, with full power of substitution in the
premises.
Dated:
486864v1 JAE LN140-117 B-4
Notice: The assignor’s signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every particular, without alteration or
any change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities
Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the
New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature
guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP,
SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is
held by joint account.)
Please insert social security or other identifying
number of assignee
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the
books of the Registrar in the name of the person last noted below.
Date of Registration
Registered Owner
Signature of
Officer of Registrar
Cede & Co.
Federal ID #13-2555119
486864v1 JAE LN140-117
STATE OF MINNESOTA )
)
COUNTY OF ANOKA ) SS.
)
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes,
Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on October 24, 2016, with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar
as they relate to the issuance and sale of the City’s General Obligation Water Utility Revenue Bonds,
Series 2016A, in the original aggregate principal amount of $1,420,000.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this ______
day of ________, 2016.
City Clerk
City of Lino Lakes, Minnesota
(SEAL)
486864v1 JAE LN140-117
STATE OF MINNESOTA
COUNTY OF ANOKA
CERTIFICATE OF MANAGER OF
PROPERTY RECORDS AND TAXATION
AS TO REGISTRATION WHERE NO AD
VALOREM TAX LEVY
I, the undersigned Manager of Property Records and Taxation of Anoka County, Minnesota,
hereby certify that a certified copy of a resolution adopted by the governing body of the City of Lino
Lakes, Minnesota (the “City”), on October 24, 2016, relating to the City’s General Obligation Water
Utility Revenue Bonds, Series 2016A, issued in the original aggregate principal amount of $1,420,000,
dated November 23, 2016, has been filed in my office and said bonds have been entered on the register of
obligations in my office.
WITNESS My hand and official seal this _____ day of __________, 2016.
MANAGER OF PROPERTY RECORDS
AND TAXATION
ANOKA COUNTY, MINNESOTA
By
Its
(SEAL)
486981v1 JAE LN140-117
Extract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lino
Lakes, Minnesota, was duly held in the City Hall in said City on Monday, October 24, 2016, commencing
at 6:30 P.M.
The following members were present:
and the following were absent:
* * * * * * * * *
The Mayor announced that the next order of business was consideration of the proposals which
had been received for the purchase of the City’s Taxable General Obligation Improvement Refunding
Bonds, Series 2016B, to be issued in the original aggregate principal amount of $1,980,000.
The City Administrator presented a tabulation of the proposals that had been received in the
manner specified in the Terms of Proposal for the Bonds. The proposals are as set forth in EXHIBIT A
attached.
After due consideration of the proposals, Member ________ then introduced the following
written resolution, the reading of which was dispensed with by unanimous consent, and moved its
adoption:
486981v1 JAE LN140-117 2
RESOLUTION NO. 16-146
A RESOLUTION AWARDING THE SALE OF TAXABLE
GENERAL OBLIGATION IMPROVEMENT REFUNDING
BONDS, SERIES 2016B, IN THE ORIGINAL AGGREGATE
PRINCIPAL AMOUNT OF $1,980,000; FIXING THEIR FORM
AND SPECIFICATIONS; DIRECTING THEIR EXECUTION
AND DELIVERY; PROVIDING FOR THEIR PAYMENT; AND
PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED
THEREBY
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota
(the “City”), as follows:
Section 1. Sale of Bonds.
1.01. Authorization for Sale of Bonds. Pursuant to a resolution adopted by the City Council of
the City on September 26, 2016, the City authorized the sale of its Taxable General Obligation
Improvement Refunding Bonds, Series 2016B (the “Bonds”), to refund the City’s Taxable General
Obligation Improvement Bonds, Series 2005A (the “Prior Bonds”), dated November 1, 2005, and issued
in the original aggregate principal amount of $5,550,000, which are currently outstanding in the principal
amount of $2,360,000 and subject to optional redemption on or after February 1, 2016. The Prior Bonds
were issued pursuant to Minnesota Statutes, Chapters 429 and 475, as amended, and Section 8.07,
subdivision 3 of the City Charter (collectively, the “Act”). Proceeds of the Prior Bonds were used to
finance the construction of various assessable improvements, including the Legacy at Wood’s Edge
Improvements, Streets and Utilities, Phases I and II, Streetscape Community Green, and lighting projects
in the City (collectively, the “Prior Improvements”).
1.02. Award to the Purchaser and Interest Rates. The proposal of _______________ (the
“Purchaser”) to purchase the Bonds of the City is hereby found and determined to be a reasonable offer
and is hereby accepted, the proposal being to purchase the Bonds at a price of $___________ (par amount
of $1,980,000, [plus original issue premium of $__________,] [less original issue discount of
$________,] less underwriter’s discount of $________), plus accrued interest to date of delivery, if any,
for Bonds bearing interest as follows:
Year Interest Rate Year Interest Rate
2018 % 2020 %
2019 2021
True interest cost: ______________%
1.03. Purchase Contract. The sum of $_________, being the amount proposed by the Purchaser
in excess of $1,966,140, shall be credited to the Debt Service Fund hereinafter created or deposited in the
Redemption Fund hereinafter created, as determined by the Finance Director of the City in consultation
with the City’s municipal advisor. The Finance Director is directed to deposit the good faith check or
deposit of the Purchaser, pending completion of the sale of the Bonds, and to return the good faith
deposits of the unsuccessful proposers. The Mayor and City Administrator are directed to execute a
contract with the Purchaser on behalf of the City.
486981v1 JAE LN140-117 3
1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the
Bonds pursuant to the Act, specifically Section 475.67, subdivision 3, in the total principal amount of
$1,980,000, originally dated November 23, 2016, in the denomination of $5,000 each or any integral
multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on
February 1 in the years and amounts as follows:
Year Amount Year Amount
2018 $ 2020 $
2019 2021
1.05. Optional Redemption. The Bonds are not subject to redemption prior to maturity.
[1.06. Mandatory Redemption; Term Bond. To be completed if Term Bonds are requested by the
Purchaser.]
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest
thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft
issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment
date preceding the date of authentication to which interest on the Bond has been paid or made available
for payment, unless (i) the date of authentication is an interest payment date to which interest has been
paid or made available for payment, in which case the Bond will be dated as of the date of
authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case
the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on
February 1 and August 1 of each year, commencing August 1, 2017, to the registered owners of record
thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or
not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (the “Registrar”). The effect of registration and the rights and duties of the City and the
Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond
register in which the Registrar provides for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be registered, transferred or
exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory
to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The Registrar may, however, close the books for
registration of any transfer after the fifteenth day of the month preceding each interest payment
date and until that interest payment date.
486981v1 JAE LN140-117 4
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate
principal amount and maturity as requested by the registered owner or the owner’s attorney in
writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar
for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the
requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in
good faith, to make transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether
the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the
principal of and interest on the Bond and for all other purposes and payments so made to
registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the
liability upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner
thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee
or other governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver any new Bond of like amount, number,
maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated
Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of
the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a
Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the
Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the
Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it
and as provided by law, in which both the City and the Registrar must be named as obligees.
Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such
cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has
already matured or been called for redemption in accordance with its terms it is not necessary to
issue a new Bond prior to payment.
2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association,
Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to
execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of
the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized
by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The
City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The
City reserves the right to remove the Registrar upon thirty (30) days’ notice and upon the appointment of
a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its
possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or
before each principal or interest due date, without further order of this Council, the City Administrator
must transmit to the Registrar monies sufficient for the payment of all principal and interest then due.
486981v1 JAE LN140-117 5
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction
of the Finance Director and executed on behalf of the City by the signatures of the Mayor and the City
Administrator, provided that those signatures may be printed, engraved or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to
be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any
security or benefit under this resolution unless and until a certificate of authentication on the Bond has
been duly executed by the manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same representative. The executed
certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered
under this resolution. When the Bonds have been so prepared, executed and authenticated, the City
Administrator will deliver the same to the Purchaser upon payment of the purchase price in accordance
with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the
application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one
or more typewritten temporary Bonds in substantially the form set forth in EXHIBIT B attached hereto,
with such changes as may be necessary to reflect more than one maturity in a single temporary bond.
Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the
form as attached hereto as EXHIBIT B.
3.02. Approving Legal Opinion. The City Administrator is directed to obtain a copy of the
proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to
be complete except as to dating thereof and to cause the opinion to be printed on or accompany each
Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds are payable from the Taxable General Obligation
Improvement Refunding Bonds, Series 2016B Debt Service Fund (the “Debt Service Fund”) hereby
created. The Debt Service Fund shall be administered by the Finance Director as a bookkeeping account
separate and apart from all other funds maintained in the official financial records of the City. Following
the redemption of the Prior Bonds on February 1, 2017 (the “Redemption Date”), proceeds of the special
assessments levied for payment of the Prior Improvements (the “Assessments”) pursuant to the resolution
authorizing the issuance and sale of the Prior Bonds (the “Prior Resolution”) are hereby pledged to the
Debt Service Fund. There is appropriated to the Debt Service Fund amounts over the minimum purchase
price of the Bonds paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund in
accordance with Section 1.03 hereof.
4.02. Redemption Fund. The City hereby creates the Taxable General Obligation Improvement
Refunding Bonds, Series 2016B Redemption Fund (the “Redemption Fund”). Proceeds of the Bonds, less
the appropriations made in Section 4.01 hereof, will be deposited in the Redemption Fund to be used solely to
redeem and prepay on the Redemption Date the outstanding principal amount of the Bonds.
486981v1 JAE LN140-117 6
4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest
on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be
and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all
principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be
promptly paid out of monies in the general fund of the City which are available for such purpose, and such
general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient
balance is available therein.
4.04. Debt Service Coverage. It is hereby determined that the estimated collection of
Assessments for the payment of principal and interest on the Bonds will produce at least five percent
(5%) in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds
and that no tax levy is needed at this time.
4.05. Prior Debt Service Fund. Following the redemption of the Prior Bonds on the
Redemption Date, the debt service fund heretofore established for the Prior Bonds pursuant to the Prior
Resolution shall be terminated and all remaining funds therein shall be transferred to the Debt Service Fund
herein created.
4.06. Prior Resolution Pledges. The pledges and covenants of the City made by the Prior
Resolution relating to the Assessments levied for the Prior Improvements are restated and confirmed in all
respects. The provisions of the Prior Resolution are hereby supplemented to the extent necessary to give
full effect to the provisions hereof.
4.07. Filing of Resolution. The City Administrator is authorized and directed to file a certified
copy of this resolution with the Manager of Property Records and Taxation of Anoka County, Minnesota and
to obtain the certificate required by Section 475.63 of the Act.
Section 5. Refunding; Findings; Redemption of Prior Bonds.
5.01. Purpose of Refunding. The Prior Bonds maturing after the Redemption Date will be
called for redemption on the Redemption Date in the principal amount of $1,935,000. It is hereby found
and determined that based upon information presently available from the City’s municipal advisor, the
issuance of the Bonds, a portion of which will be used to refund the Prior Bonds, is consistent with
covenants made with the holders of the Prior Bonds.
5.02. Application of Proceeds of Bonds. It is hereby found and determined that the proceeds of
the Bonds deposited in the Redemption Fund, along with any other funds on hand in the debt service fund
established pursuant to the Prior Resolution, will be sufficient to prepay all of the principal of, interest on
and redemption premium (if any) on the Prior Bonds.
5.03. Redemption; Date of Redemption; Notice of Call for Redemption. The Prior Bonds
maturing after the Redemption Date will be redeemed and prepaid on the Redemption Date. The Prior
Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and
conditions set forth in the form of Notice of Call for Redemption attached hereto as EXHIBIT C, which
terms and conditions are hereby approved and incorporated herein by reference. The registrar for the
Prior Bonds is authorized and directed to send a copy of the Notice of Call for Redemption to each
registered holder of the Prior Bonds at least thirty (30) days prior to the Redemption Date.
486981v1 JAE LN140-117 7
Section 6. Authentication of Transcript.
6.01. City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other certificates, affidavits and transcripts as may be required to show the facts within
their knowledge or as shown by the books and records in their custody and under their control, relating to
the validity and marketability of the Bonds, and such instruments, including any heretofore furnished,
may be deemed representations of the City as to the facts stated therein.
6.02. Certification as to Official Statement. The Mayor, the City Administrator, and the Finance
Director are authorized and directed to certify that they have examined the Official Statement prepared
and circulated in connection with the issuance and sale of the Bonds and that to the best of their
knowledge and belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
6.03. Other Certificates. The Mayor, the City Administrator, and the Finance Director are
hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required
as a condition of sale. Unless litigation shall have been commenced and be pending questioning the
Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City
Administrator, and the Finance Director shall also execute and deliver to the Purchaser a suitable
certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a
certificate as to payment for and delivery of the Bonds.
Section 7. Book-Entry System; Limited Obligation of City.
7.01. The Depository Trust Company. The Bonds will be initially issued in the form of a
separate single typewritten or printed fully registered Bond for each of the maturities set forth in
Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the
registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this
section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in
the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent
will have no responsibility or obligation to any broker dealers, banks and other financial institutions from
time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other
person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any
other person (other than a registered owner of Bonds, as shown by the registration books kept by the
Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the
payment to any Participant or any other person, other than a registered owner of Bonds, of any amount
with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the
Paying Agent may treat and consider the person in whose name each Bond is registered in the registration
books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of
principal, premium and interest with respect to such Bond, for the purpose of registering transfers with
respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if
any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the
registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy
486981v1 JAE LN140-117 8
and discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest
on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds,
as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the
obligation of this resolution. Upon delivery by DTC to the City Administrator of a written notice to the
effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede &
Co.” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator
will promptly deliver a copy of the same to the Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action
necessary for all representations of the City in the Representation Letter with respect to the Registrar and
Paying Agent, respectively, to be complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City
Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds
that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the
Participants, of the availability through DTC of Bond certificates. In such event the City will issue,
transfer and exchange Bond certificates as requested by DTC and any other registered owners in
accordance with the provisions of this resolution. DTC may determine to discontinue providing its
services with respect to the Bonds at any time by giving notice to the City and discharging its
responsibilities with respect thereto under applicable law. In such event, if no successor securities
depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in
accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method
of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with
respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will
be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth
in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate”
means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and
dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended
from time to time in accordance with the terms thereof.
8.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to
comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect
to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate,
including seeking mandate or specific performance by court order, to cause the City to comply with its
obligations under this section.
Section 9. Defeasance. When all Bonds and all interest thereon have been discharged as
provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full
486981v1 JAE LN140-117 9
payment of the principal of and interest on the Bonds will remain in full force and effect. The City may
discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum
sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be
discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit.
(The remainder of this page is intentionally left blank.)
486981v1 JAE LN140-117 10
The motion for the adoption of the foregoing resolution was duly seconded by Member _______,
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
486981v1 JAE LN140-117 A-1
EXHIBIT A
PROPOSALS
486981v1 JAE LN140-117 B-1
EXHIBIT B
FORM OF BOND
No. R-_____ $________
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
TAXABLE GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND
SERIES 2016B
Rate
Maturity
Date of
Original Issue
CUSIP
February 1, 20__ November 23, 2016
Registered Owner: CEDE & CO.
The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation in
Anoka County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby
promises to pay to the Registered Owner specified above or registered assigns, the principal sum of
$__________ on the maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2017,
to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether
or not a business day) of the immediately preceding month. The interest hereon and, upon presentation
and surrender hereof, the principal hereof are payable in lawful money of the United States of America by
check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond Registrar, Paying
Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution
described herein. For the prompt and full payment of such principal and interest as the same respectively
become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably
pledged.
The Bonds are not subject to optional redemption prior to maturity.
This Bond is one of an issue in the aggregate principal amount of $1,980,000 all of like original
issue date and tenor, except as to number, maturity date, interest rate, and redemption privilege, all issued
pursuant to a resolution adopted by the City Council on October 24, 2016 (the “Resolution”), for the
purpose of refunding certain outstanding obligations of the City, pursuant to and in full conformity with
the home rule charter of the City and the Constitution and laws of the State of Minnesota, including
Minnesota Statutes, Chapters 429 and 475, as amended, specifically Section 475.67, subdivision 3, and
Section 8.07, subdivision 3 of the home rule charter, and the principal hereof and interest hereon are
payable primarily from special assessments, as set forth in the Resolution to which reference is made for a
full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably
pledged for payment of this Bond and the City Council has obligated itself to levy ad valorem taxes on all
taxable property in the City in the event of any deficiency in special assessments pledged, which taxes
may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully
registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities.
486981v1 JAE LN140-117 B-2
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered
owner hereof in person or by the owner’s attorney duly authorized in writing, upon surrender hereof
together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other
authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to
be issued in the name of the transferee or registered owner, of the same aggregate principal amount,
bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee
or governmental charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the home rule charter and the Constitution and laws of the State of
Minnesota, to be done, to exist, to happen and to be performed preliminary to and in the issuance of this
Bond in order to make it a valid and binding general obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required, and that the issuance of
this Bond does not cause the indebtedness of the City to exceed any constitutional, statutory, or charter
limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under
the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the
Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below.
Dated: November 23, 2016
CITY OF LINO LAKES, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Administrator
_________________________________
486981v1 JAE LN140-117 B-3
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
_________________________________
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common UNIF GIFT MIN ACT
_________ Custodian _________
(Cust) (Minor)
TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors
Act, State of _______________
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
Additional abbreviations may also be used though not in the above list.
________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________ the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint _________________________ attorney to transfer the said
Bond on the books kept for registration of the within Bond, with full power of substitution in the
premises.
Dated:
Notice: The assignor’s signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every particular, without alteration or
any change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities
Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the
486981v1 JAE LN140-117 B-4
New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature
guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP,
SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is
held by joint account.)
Please insert social security or other identifying
number of assignee
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the
books of the Registrar in the name of the person last noted below.
Date of Registration
Registered Owner
Signature of
Officer of Registrar
Cede & Co.
Federal ID #13-2555119
C-1
486981v1 JAE LN140-117
EXHIBIT C
NOTICE OF CALL FOR REDEMPTION
$5,550,000
CITY OF LINO LAKES, MINNESOTA
TAXABLE GENERAL OBLIGATION IMPROVEMENT BONDS
SERIES 2005A
NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Lino Lakes,
Anoka County, Minnesota (the “City”), there have been called for redemption and prepayment on
February 1, 2017
all outstanding bonds designated as the City’s Taxable General Obligation Improvement Bonds,
Series 2005A, dated November 1, 2005, having stated maturity dates of February 1 in the years 2018
through 2021, both inclusive, totaling $1,935,000 in principal amount, and with the following CUSIP
numbers:
Year of Maturity Amount CUSIP
2018 $ 445,000 536060 JJ6
2021 1,490,000 536060 JM9
The bonds are being called at a price of par plus accrued interest to February 1, 2017, on which
date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are
requested to present their bonds for payment at the main office of U.S. Bank National Association in the
City of Saint Paul, Minnesota, at the following address, on or before February 1, 2017:
U.S. Bank National Association
Corporate Trust Services
111 Fillmore Avenue East
St. Paul, MN 55107
Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of
2009, the paying agent is required to withhold a specified percentage of the principal amount of the
redemption price payable to the holder of any bonds subject to redemption and prepayment on the
redemption date, unless the paying agent is provided with the Social Security Number or Federal
Employer Identification Number of the holder, properly certified. Submission of a fully executed Request
for Taxpayer Identification Number and Certification, Form W-9 (Rev. December 2011), will satisfy the
requirements of this paragraph.
Dated: __________________.
BY ORDER OF THE CITY COUNCIL OF THE
CITY OF LINO LAKES, MINNESOTA
By /s/ Jeff Karlson
City Administrator
City of Lino Lakes, Minnesota
486981v1 JAE LN140-117
STATE OF MINNESOTA )
)
COUNTY OF ANOKA ) SS.
)
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes,
Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on October 24, 2016, with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar
as they relate to the issuance and sale of the City’s Taxable General Obligation Improvement Refunding
Bonds, Series 2016B, in the original aggregate principal amount of $1,980,000.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this ______
day of ________, 2016.
City Clerk
City of Lino Lakes, Minnesota
(SEAL)
486981v1 JAE LN140-117
STATE OF MINNESOTA
COUNTY OF ANOKA
CERTIFICATE OF MANAGER OF
PROPERTY RECORDS AND TAXATION
AS TO REGISTRATION WHERE NO AD
VALOREM TAX LEVY
I, the undersigned Manager of Property Records and Taxation of Anoka County, Minnesota,
hereby certify that a certified copy of a resolution adopted by the governing body of the City of Lino
Lakes, Minnesota (the “City”), on October 24, 2016, relating to the City’s Taxable General Obligation
Improvement Refunding Bonds, Series 2016B, issued in the original aggregate principal amount of
$1,980,000, dated November 23, 2016, has been filed in my office and said bonds have been entered on
the register of obligations in my office.
WITNESS My hand and official seal this _____ day of __________, 2016.
MANAGER OF PROPERTY RECORDS
AND TAXATION
ANOKA COUNTY, MINNESOTA
By
Its
(SEAL)
486866v1 JAE LN140-117
Extract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lino
Lakes, Minnesota, was duly held in the City Hall in said City on Monday, October 24, 2016, commencing
at 6:30 P.M.
The following members were present:
and the following were absent:
* * * * * * * * *
The Mayor announced that the next order of business was consideration of the proposals which
had been received for the purchase of the City’s General Obligation Tax Abatement Refunding Bonds,
Series 2016C, to be issued in the original aggregate principal amount of $1,600,000.
The City Administrator presented a tabulation of the proposals that had been received in the
manner specified in the Terms of Proposal for the Bonds. The proposals are as set forth in EXHIBIT A
attached.
After due consideration of the proposals, Member ________ then introduced the following
written resolution, the reading of which was dispensed with by unanimous consent, and moved its
adoption:
486866v1 JAE LN140-117 2
RESOLUTION NO. 16-147
A RESOLUTION AWARDING THE SALE OF GENERAL
OBLIGATION TAX ABATEMENT REFUNDING BONDS,
SERIES 2016C, IN THE ORIGINAL AGGREGATE PRINCIPAL
AMOUNT OF $1,600,000; FIXING THEIR FORM AND
SPECIFICATIONS; DIRECTING THEIR EXECUTION AND
DELIVERY; PROVIDING FOR THEIR PAYMENT; AND
PROVIDING FOR THE REDEMPTION OF BONDS REFUNDED
THEREBY
BE IT RESOLVED by the City Council (the “City Council”) of the City of Lino Lakes, Anoka
County, Minnesota (the “City”), as follows:
Section 1. Sale of Bonds.
1.01. Authorization for Sale of Bonds. Pursuant to a resolution adopted by the City Council of
the City on September 26, 2016, the City authorized the sale of its General Obligation Tax Abatement
Refunding Bonds, Series 2016C (the “Bonds”), to refinance a portion of the approximately 45,000 square
foot recreational facility (the “YMCA Project”) owned and operated by the Young Men’s Christian
Association of the Greater Twin Cities, a Minnesota nonprofit corporation doing business as the YMCA
of the Greater Twin Cities and successor-in-interest to the YMCA of Greater Saint Paul (the “YMCA”).
A portion of the YMCA Project was financed with the proceeds of the City’s General Obligation Tax
Abatement Bonds, Series 2006C (the “Prior Bonds”), dated as of August 15, 2006, issued in the original
aggregate principal amount of $2,460,000, pursuant to Minnesota Statutes, Chapter 475, as amended, and
Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (collectively, the “Act”). The Prior
Bonds are currently outstanding in the principal amount of $1,755,000, of which $1,565,000 in principal
amount is callable on or after February 1, 2017.
1.02. Award to the Purchaser and Interest Rates. The proposal of _______________ (the
“Purchaser”) to purchase the Bonds of the City is hereby found and determined to be a reasonable offer
and is hereby accepted, the proposal being to purchase the Bonds at a price of $__________ (par amount
of $1,600,000, [plus original issue premium of $_________,] [less original issue discount of
$__________,] less underwriter’s discount of $__________), plus accrued interest to date of delivery, if
any, for Bonds bearing interest as follows:
Year Interest Rate Year Interest Rate
2018 % 2021 %
2019 2022
2020 2023
True interest cost: ___________%
1.03. Purchase Contract. The sum of $___________, being the amount proposed by the
Purchaser in excess of $1,590,400, shall be credited to the Debt Service Fund hereinafter created or
deposited in the Redemption Fund hereinafter created, as determined by the Finance Director of the City
in consultation with the City’s municipal advisor. The Finance Director is directed to deposit the good
faith check or deposit of the Purchaser, pending completion of the sale of the Bonds, and to return the
486866v1 JAE LN140-117 3
good faith deposits of the unsuccessful proposers. The Mayor and City Administrator are directed to
execute a contract with the Purchaser on behalf of the City.
1.04. Terms and Principal Amounts of the Bonds. The City will forthwith issue and sell the
Bonds pursuant to the Act, specifically Section 475.67, subdivision 3, in the total principal amount of
$1,600,000, originally dated November 23, 2016, in the denomination of $5,000 each or any integral
multiple thereof, numbered No. R-1, upward, bearing interest as above set forth, and maturing serially on
February 1 in the years and amounts as follows:
Year Amount Year Amount
2018 $ 2021 $
2019 2022
2020 2023
1.05. Optional Redemption. The Bonds are not subject to optional redemption prior to maturity.
1.06. Extraordinary Redemption. The Bonds are subject to extraordinary redemption on any date
in whole, but not in part, at a redemption price equal to par plus accrued interest to the redemption date, upon
conveyance, lease, or transfer of the YMCA Project to an entity that is not a qualified 501(c)(3) entity under
the Internal Revenue Code of 1986, as amended (the “Code”), or a unit of state or local government, in
connection with the foreclosure of the Combination Mortgage, Security Agreement, Fixture Financing
Statement and Assignment of Leases and Rents, dated as of June 1, 2006, by the YMCA for the benefit of
Patriot Bank Minnesota, in conjunction with the issuance of the City’s Revenue Note (YMCA Project),
Series 2006A, and the City’s Revenue Note (YMCA Project), Series 2006B.
[1.07. Mandatory Redemption; Term Bonds. To be completed if Term Bonds are requested by the
Purchaser.]
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest
thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft
issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment
date preceding the date of authentication to which interest on the Bond has been paid or made available
for payment, unless (i) the date of authentication is an interest payment date to which interest has been
paid or made available for payment, in which case the Bond will be dated as of the date of
authentication, or (ii) the date of authentication is prior to the first interest payment date, in which case
the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on
February 1 and August 1 of each year, commencing August 1, 2017, to the registered owners of record
thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or
not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (the “Registrar”). The effect of registration and the rights and duties of the City and the
Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond
register in which the Registrar provides for the registration of ownership of Bonds and the
486866v1 JAE LN140-117 4
registration of transfers and exchanges of Bonds entitled to be registered, transferred or
exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory
to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The Registrar may, however, close the books for
registration of any transfer after the fifteenth day of the month preceding each interest payment
date and until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate
principal amount and maturity as requested by the registered owner or the owner’s attorney in
writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar
for transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the
requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in
good faith, to make transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether
the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the
principal of and interest on the Bond and for all other purposes and payments so made to
registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the
liability upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner
thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee
or other governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver any new Bond of like amount, number,
maturity date and tenor in exchange and substitution for and upon cancellation of the mutilated
Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost, upon the payment of
the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a
Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the
Bond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the
Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it
and as provided by law, in which both the City and the Registrar must be named as obligees.
Bonds so surrendered to the Registrar will be cancelled by the Registrar and evidence of such
cancellation must be given to the City. If the mutilated, destroyed, stolen or lost Bond has
already matured or been called for redemption in accordance with its terms it is not necessary to
issue a new Bond prior to payment.
486866v1 JAE LN140-117 5
(i) Redemption. In the event any of the Bonds are called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the
redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by publishing the
notice if required by law. Failure to give notice by publication or by mail to any registered owner, or
any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds
so called for redemption will cease to bear interest after the specified redemption date, provided that
the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association,
Saint Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to
execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of
the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized
by law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The
City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The
City reserves the right to remove the Registrar upon thirty (30) days’ notice and upon the appointment of
a successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its
possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or
before each principal or interest due date, without further order of this Council, the City Administrator
must transmit to the Registrar monies sufficient for the payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction
of the Finance Director and executed on behalf of the City by the signatures of the Mayor and the City
Administrator, provided that those signatures may be printed, engraved or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to
be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entitled to any
security or benefit under this resolution unless and until a certificate of authentication on the Bond has
been duly executed by the manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same representative. The executed
certificate of authentication on a Bond is conclusive evidence that it has been authenticated and delivered
under this resolution. When the Bonds have been so prepared, executed and authenticated, the City
Administrator will deliver the same to the Purchaser upon payment of the purchase price in accordance
with the contract of sale heretofore made and executed, and the Purchaser is not obligated to see to the
application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one
or more typewritten temporary Bonds in substantially the form set forth in EXHIBIT B attached hereto,
with such changes as may be necessary to reflect more than one maturity in a single temporary bond.
Upon the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the
form as attached hereto as EXHIBIT B.
3.02. Approving Legal Opinion. The City Administrator is directed to obtain a copy of the
proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to
486866v1 JAE LN140-117 6
be complete except as to dating thereof and to cause the opinion to be printed on or accompany each
Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds are payable from the General Obligation Tax Abatement
Refunding Bonds, Series 2016C Debt Service Fund (the “Debt Service Fund”) hereby created. The Debt
Service Fund shall be administered by the Finance Director as a bookkeeping account separate and apart
from all other funds maintained in the official financial records of the City. Following the redemption of
the Prior Bonds on February 1, 2017 (the “Redemption Date”), the abatements (the “Abatements”) for the
abatement parcels pledged to the payment of the Prior Bonds pursuant to the resolution adopted by the
City Council authorizing the issuance and sale of the Prior Bonds (the “Prior Resolution”) are hereby
pledged to the Debt Service Fund. There is appropriated to the Debt Service Fund amounts over the
minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the
Debt Service Fund in accordance with Section 1.03 hereof.
4.02. Redemption Fund. The City hereby creates the General Obligation Tax Abatement
Bonds, Series 2016C Redemption Fund (the “Redemption Fund”). Proceeds of the Bonds, less the
appropriations made in Section 4.01 hereof, will be deposited in the Redemption Fund to be used solely to
redeem and prepay on the Redemption Date the outstanding principal amount of the Bonds.
4.03. General Obligation Pledge. For the prompt and full payment of the principal of and interest
on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City will be
and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever insufficient to pay all
principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency will be
promptly paid out of monies in the general fund of the City which are available for such purpose, and such
general fund may be reimbursed with or without interest from the Debt Service Fund when a sufficient
balance is available therein.
4.04. Debt Service Coverage. It is hereby determined that the estimated collection of
Abatements for the payment of principal of and interest on the Bonds will produce at least five percent
(5%) in excess of the amount needed to meet, when due, the principal and interest payments on the Bonds
and that no tax levy is needed at this time.
4.05. Prior Debt Service Fund. Following the redemption of the Prior Bonds on the
Redemption Date, the debt service fund heretofore established for the Prior Bonds pursuant to the Prior
Resolution shall be terminated and all remaining funds therein shall be transferred to the Debt Service Fund
herein created.
4.06. Registration of Resolution. The City Clerk is authorized and directed to file a certified
copy of this resolution with the Manager of Property Records and Taxation of Anoka County, Minnesota
and to obtain the certificate required by Section 475.63 of the Act.
Section 5. Refunding; Findings; Redemption of Prior Bonds.
5.01. Purpose of Refunding. The Prior Bonds maturing after the Redemption Date will be
called for redemption on the Redemption Date in the principal amount of $1,565,000. It is hereby found
and determined that based upon information presently available from the City’s municipal advisor, the
issuance of the Bonds, a portion of which will be used to refund the Prior Bonds, is consistent with
covenants made with the holders of the Prior Bonds.
486866v1 JAE LN140-117 7
5.02. Application of Proceeds of Bonds. It is hereby found and determined that the proceeds of
the Bonds deposited in the Redemption Fund, along with any other funds on hand in the debt service fund
established pursuant to the Prior Resolution, will be sufficient to prepay all of the principal of, interest on
and redemption premium (if any) on the Prior Bonds.
5.03. Redemption; Date of Redemption; Notice of Call for Redemption. The Prior Bonds
maturing after the Redemption Date will be redeemed and prepaid on the Redemption Date. The Prior
Bonds will be redeemed and prepaid in accordance with their terms and in accordance with the terms and
conditions set forth in the form of Notice of Call for Redemption attached hereto as EXHIBIT C, which
terms and conditions are hereby approved and incorporated herein by reference. The registrar for the
Prior Bonds is authorized and directed to send a copy of the Notice of Call for Redemption to each
registered holder of the Prior Bonds at least thirty (30) days prior to the Redemption Date.
Section 6. Authentication of Transcript.
6.01. City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other certificates, affidavits and transcripts as may be required to show the facts within
their knowledge or as shown by the books and records in their custody and under their control, relating to
the validity and marketability of the Bonds, and such instruments, including any heretofore furnished,
may be deemed representations of the City as to the facts stated therein.
6.02. Certification as to Official Statement. The Mayor, the City Administrator, and the Finance
Director are authorized and directed to certify that they have examined the Official Statement prepared
and circulated in connection with the issuance and sale of the Bonds and that to the best of their
knowledge and belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
6.03. Other Certificates. The Mayor, the City Administrator, and the Finance Director are
hereby authorized and directed to furnish to the Purchaser at the closing such certificates as are required
as a condition of sale. Unless litigation shall have been commenced and be pending questioning the
Bonds or the organization of the City or incumbency of its officers, at the closing the Mayor, the City
Administrator, and the Finance Director shall also execute and deliver to the Purchaser a suitable
certificate as to absence of material litigation, and the Finance Director shall also execute and deliver a
certificate as to payment for and delivery of the Bonds.
Section 7. Tax Covenants.
7.01. Qualified 501(c)(3) Bonds. The City shall not take any action or authorize any action to
be taken in connection with the application or investment of the proceeds of the Bonds or any related
activity which would cause the Bonds to be deemed to be “private activity bonds,” within the meaning of
Section 141 of the Code, other than “qualified 501(c)(3) bonds” within the meaning of Section 145 of the
Code. The City shall not take any action or authorize any action to be taken in connection with the
application or investment of the proceeds of the Bonds or any related activity which would cause the
Bonds to be deemed to be “arbitrage bonds,” within the meaning of Section 148 of the Code.
Furthermore, the City shall take all such actions as may be required under the Code to ensure that interest
on the Bonds is not and does not become includable in gross income for federal income tax purposes.
7.02. YMCA Covenants. Pursuant to a tax certificate to be executed by the YMCA at the time of
closing of the Bonds (the “YMCA Tax Certificate”), the YMCA will also not take any action or authorize
486866v1 JAE LN140-117 8
any action to be taken in connection with the application or investment of the proceeds of the Bonds or
any related activity which would cause the Bonds to be deemed to be “private activity bonds,” within the
meaning of Section 141 of the Code, other than “qualified 501(c)(3) bonds” within the meaning of
Section 145 of the Code. The YMCA will not take any action or authorize any action to be taken in
connection with the application or investment of the proceeds of the Bonds or any related activity which
would cause the Bonds to be deemed to be “arbitrage bonds,” within the meaning of Section 148 of the
Code. Furthermore, the YMCA will take all such actions as may be required under the Code to ensure
that interest on the Bonds is not and does not become includable in gross income for federal income tax
purposes.
7.03. Costs of Issuance. No more than two percent (2%) of the proceeds of the Bonds will be
used for the costs of issuing the Bonds.
7.04. Rebate. The City, and the YMCA pursuant to the YMCA Tax Certificate, will comply with
requirements necessary under the Code to establish and maintain the exclusion from gross income of the
interest on the Bonds under Section 103 of the Code, including without limitation requirements relating to
temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the
Bonds, and the rebate of excess investment earnings to the United States.
7.05. Qualified Tax-Exempt Obligations. In order to qualify the Bonds as “qualified
tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the
following factual statements and representations:
(a) the Bonds are qualified 501(c)(3) bonds as defined in Section 145 of the Code;
(b) the City hereby designates the Bonds as “qualified tax-exempt obligations” for
purposes of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than any
private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City
(and all subordinate entities of the City) during calendar year 2016 will not exceed $10,000,000;
and
(d) not more than $10,000,000 of obligations issued by the City during calendar year
2016 have been designated for purposes of Section 265(b)(3) of the Code.
7.06. Procedural Requirements. The City will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations made by this section.
Section 8. Book-Entry System; Limited Obligation of City.
8.01. The Depository Trust Company. The Bonds will be initially issued in the form of a
separate single typewritten or printed fully registered Bond for each of the maturities set forth in
Section 1.04 hereof. Upon initial issuance, the ownership of each Bond will be registered in the
registration books kept by the Registrar in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York, and its successors and assigns (“DTC”). Except as provided in this
section, all of the outstanding Bonds will be registered in the registration books kept by the Registrar in
the name of Cede & Co., as nominee of DTC.
8.02. Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent
486866v1 JAE LN140-117 9
will have no responsibility or obligation to any broker dealers, banks and other financial institutions from
time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any other
person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any
other person (other than a registered owner of Bonds, as shown by the registration books kept by the
Registrar) of any notice with respect to the Bonds, including any notice of redemption, or (iii) the
payment to any Participant or any other person, other than a registered owner of Bonds, of any amount
with respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the
Paying Agent may treat and consider the person in whose name each Bond is registered in the registration
books kept by the Registrar as the holder and absolute owner of such Bond for the purpose of payment of
principal, premium and interest with respect to such Bond, for the purpose of registering transfers with
respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of, premium, if
any, and interest on the Bonds only to or on the order of the respective registered owners, as shown in the
registration books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy
and discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest
on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner of Bonds,
as shown in the registration books kept by the Registrar, will receive a certificated Bond evidencing the
obligation of this resolution. Upon delivery by DTC to the City Administrator of a written notice to the
effect that DTC has determined to substitute a new nominee in place of Cede & Co., the words “Cede &
Co.” will refer to such new nominee of DTC; and upon receipt of such a notice, the City Administrator
will promptly deliver a copy of the same to the Registrar and Paying Agent.
8.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the “Representation Letter”) which shall govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action
necessary for all representations of the City in the Representation Letter with respect to the Registrar and
Paying Agent, respectively, to be complied with at all times.
8.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City
Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds
that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the
Participants, of the availability through DTC of Bond certificates. In such event the City will issue,
transfer and exchange Bond certificates as requested by DTC and any other registered owners in
accordance with the provisions of this resolution. DTC may determine to discontinue providing its
services with respect to the Bonds at any time by giving notice to the City and discharging its
responsibilities with respect thereto under applicable law. In such event, if no successor securities
depository is appointed, the City will issue and the Registrar will authenticate Bond certificates in
accordance with this resolution and the provisions hereof will apply to the transfer, exchange and method
of payment thereof.
8.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with
respect to principal of, premium, if any, and interest on the Bond and notices with respect to the Bond will
be made and given, respectively in the manner provided in DTC’s Operational Arrangements, as set forth
in the Representation Letter.
Section 9. Continuing Disclosure.
486866v1 JAE LN140-117 10
9.01. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate”
means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and
dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended
from time to time in accordance with the terms thereof.
9.02. City Compliance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to
comply with the Continuing Disclosure Certificate is not to be considered an event of default with respect
to the Bonds; however, any Bondholder may take such actions as may be necessary and appropriate,
including seeking mandate or specific performance by court order, to cause the City to comply with its
obligations under this section.
Section 10. Defeasance. When all Bonds and all interest thereon have been discharged as
provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full
payment of the principal of and interest on the Bonds will remain in full force and effect. The City may
discharge all Bonds which are due on any date by depositing with the Registrar on or before that date a sum
sufficient for the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be
discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit.
(The remainder of this page is intentionally left blank.)
486866v1 JAE LN140-117 11
The motion for the adoption of the foregoing resolution was duly seconded by Member
___________, and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
486866v1 JAE LN140-117 A-1
EXHIBIT A
PROPOSALS
486866v1 JAE LN140-117 B-1
EXHIBIT B
FORM OF BOND
No. R-_____ $________
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
GENERAL OBLIGATION TAX ABATEMENT REFUNDING BOND
SERIES 2016C
Rate
Maturity
Date of
Original Issue
CUSIP
February 1, 20__ November 23, 2016
Registered Owner: CEDE & CO.
The City of Lino Lakes, Minnesota, a duly organized and existing municipal corporation in
Anoka County, Minnesota (the “City”), acknowledges itself to be indebted and for value received hereby
promises to pay to the Registered Owner specified above or registered assigns, the principal sum of
$__________ on the maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above, payable February 1 and August 1 in each year, commencing August 1, 2017,
to the person in whose name this Bond is registered at the close of business on the fifteenth day (whether
or not a business day) of the immediately preceding month. The interest hereon and, upon presentation
and surrender hereof, the principal hereof are payable in lawful money of the United States of America by
check or draft by U.S. Bank National Association, Saint Paul, Minnesota, as Bond Registrar, Paying
Agent, Transfer Agent and Authenticating Agent, or its designated successor under the Resolution
described herein. For the prompt and full payment of such principal and interest as the same respectively
become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably
pledged.
The Bonds are not subject to optional redemption prior to maturity.
The Bonds are subject to extraordinary redemption on any date in whole, but not in part, at a
redemption price equal to par plus accrued interest to the redemption date, upon conveyance, lease, or
transfer of the YMCA Project to an entity that is not a qualified 501(c)(3) entity under the Internal Revenue
Code of 1986, as amended (the “Code”), or a unit of state or local government, in connection with the
foreclosure of the Combination Mortgage, Security Agreement, Fixture Financing Statement and Assignment
of Leases and Rents, dated as of June 1, 2006, by the YMCA for the benefit of Patriot Bank Minnesota, in
conjunction with the issuance of the City’s Revenue Note (YMCA Project), Series 2006A, and the City’s
Revenue Note (YMCA Project), Series 2006B.
This Bond is one of an issue in the aggregate principal amount of $1,600,000 all of like original
issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a
resolution adopted by the City Council on October 24, 2016 (the “Resolution”), for the purpose of
refunding certain outstanding obligations of the City, pursuant to and in full conformity with the home
486866v1 JAE LN140-117 B-2
rule charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota
Statutes, Chapter 475, as amended, specifically Section 475.67, subdivision 3, and Minnesota Statutes,
Sections 469.1812 through 469.1815, as amended. The principal hereof and interest hereon are payable
primarily from abatements collected from certain property in the City, as set forth in the Resolution to
which reference is made for a full statement of rights and powers thereby conferred. The full faith and
credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated
itself to levy ad valorem taxes on all taxable property in the City in the event of any deficiency in
abatements pledged, which taxes may be levied without limitation as to rate or amount. The Bonds of
this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple
thereof of single maturities.
The City Council has designated the issue of Bonds of which this Bond forms a part as “qualified
tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code relating to disallowance of
interest expense for financial institutions and within the $10 million limit allowed by the Code for the
calendar year of issue.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered
owner hereof in person or by the owner’s attorney duly authorized in writing, upon surrender hereof
together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the
registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of other
authorized denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to
be issued in the name of the transferee or registered owner, of the same aggregate principal amount,
bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee
or governmental charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota, to be done, to exist,
to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid
and binding general obligation of the City in accordance with its terms, have been done, do exist, have
happened and have been performed as so required, and that the issuance of this Bond does not cause the
indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under
the Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
486866v1 JAE LN140-117 B-3
IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the
Mayor and City Administrator and has caused this Bond to be dated as of the date set forth below.
Dated: November 23, 2016
CITY OF LINO LAKES, MINNESOTA
(Facsimile) (Facsimile)
Mayor City Administrator
_________________________________
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
_________________________________
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants in common UNIF GIFT MIN ACT
_________ Custodian _________
(Cust) (Minor)
TEN ENT -- as tenants by entireties under Uniform Gifts or Transfers to Minors
Act, State of _______________
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
Additional abbreviations may also be used though not in the above list.
________________________________________
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
________________________________________ the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint _________________________ attorney to transfer the said
Bond on the books kept for registration of the within Bond, with full power of substitution in the
premises.
486866v1 JAE LN140-117 B-4
Dated:
Notice: The assignor’s signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every particular, without alteration or
any change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities
Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program (“SEMP”), the
New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other such “signature
guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP,
SEMP or MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is
held by joint account.)
Please insert social security or other identifying
number of assignee
________________________________________
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the
books of the Registrar in the name of the person last noted below.
Date of Registration
Registered Owner
Signature of
Officer of Registrar
Cede & Co.
Federal ID #13-2555119
C-1
486866v1 JAE LN140-117
EXHIBIT C
NOTICE OF CALL FOR REDEMPTION
$2,460,000
CITY OF LINO LAKES, MINNESOTA
GENERAL OBLIGATION TAX ABATEMENT BONDS
SERIES 2006C
NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of Lino Lakes,
Anoka County, Minnesota (the “City”), there have been called for redemption and prepayment on
February 1, 2017
all outstanding bonds designated as the City’s General Obligation Tax Abatement Bonds, Series 2006C,
dated as of August 15, 2006, having stated maturity dates of February 1 in the years 2018 through 2023,
both inclusive, totaling $1,565,000 in principal amount, and with the following CUSIP numbers:
Year of Maturity Amount CUSIP
2018 $205,000 536060 KE5
2019 225,000 536060 KF2
2020 250,000 536060 KG0
2021 270,000 536060 KH8
2022 295,000 536060 KJ4
2023 320,000 536060 KK1
The bonds are being called at a price of par plus accrued interest to February 1, 2017, on which
date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption are
requested to present their bonds for payment at the main office of U.S. Bank National Association in the
City of Saint Paul, Minnesota, at the following address, on or before February 1, 2017:
U.S. Bank National Association
Corporate Trust Services
111 Fillmore Avenue East
St. Paul, MN 55107
Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of
2009, the paying agent is required to withhold a specified percentage of the principal amount of the
redemption price payable to the holder of any bonds subject to redemption and prepayment on the
redemption date, unless the paying agent is provided with the Social Security Number or Federal
Employer Identification Number of the holder, properly certified. Submission of a fully executed Request
for Taxpayer Identification Number and Certification, Form W-9 (Rev. December 2011), will satisfy the
requirements of this paragraph.
Dated: __________________.
C-2
486866v1 JAE LN140-117
BY ORDER OF THE CITY COUNCIL OF THE
CITY OF LINO LAKES, MINNESOTA
By /s/ Jeff Karlson
City Administrator
City of Lino Lakes, Minnesota
486866v1 JAE LN140-117
STATE OF MINNESOTA )
)
COUNTY OF ANOKA ) SS.
)
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes,
Minnesota (the “City”), do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council of the City held on October 24, 2016, with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes insofar
as they relate to the issuance and sale of the City’s General Obligation Tax Abatement Refunding Bonds,
Series 2016C, in the original aggregate principal amount of $1,600,000.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this ______
day of ________, 2016.
City Clerk
City of Lino Lakes, Minnesota
(SEAL)
486866v1 JAE LN140-117
STATE OF MINNESOTA
COUNTY OF ANOKA
CERTIFICATE OF MANAGER OF
PROPERTY RECORDS AND TAXATION
AS TO REGISTRATION WHERE NO AD
VALOREM TAX LEVY
I, the undersigned Manager of Property Records and Taxation of Anoka County, Minnesota,
hereby certify that a certified copy of a resolution adopted by the governing body of the City of Lino
Lakes, Minnesota (the “City”), on October 24, 2016, relating to the City’s General Obligation Tax
Abatement Refunding Bonds, Series 2016C, issued in the original aggregate principal amount of
$1,600,000, dated November 23, 2016, has been filed in my office and said bonds have been entered on
the register of obligations in my office.
WITNESS My hand and official seal this _____ day of __________, 2016.
MANAGER OF PROPERTY RECORDS
AND TAXATION
ANOKA COUNTY, MINNESOTA
By
Its
(SEAL)
CITY COUNCIL
AGENDA ITEM 3A
STAFF ORIGINATOR: Karissa Henning
MEETING DATE: October 24, 2016
TOPIC: Employment Extension for Community Development Intern
VOTE REQUIRED: 3/5
INTRODUCTION
The Council is being asked to extend the employment of the Community Development Intern,
Alex McKenzie, until May 2, 2017.
BACKGROUND
Alex McKenzie started his six-month internship on May 2, 2016 to assist the Community
Development Department with specific tasks.
Staff is requesting that his employment be extended through May 2, 2017. This position is
budgeted and will work for 32 hours a week at $13.00 an hour.
RECOMMENDATION
Approve the six-month employment extension for Alex McKenzie through May 2, 2017.
CITY COUNCIL
AGENDA ITEM 4A
STAFF ORIGINATOR: Public Safety Deputy Director Kelly McCarthy
MEETING DATE: October 24, 2016
TOPIC: Approval Resolution 16-144 Accepting Traffic Safety Grant
State fiscal years of 2017 and 2018
VOTE REQUIRED: 3/5
INTRODUCTION
The Lino Lakes Public Safety Department is requesting Council approval to renew grant
funding from the Minnesota Office of Traffic Safety for State fiscal years of 2017 and 2018.
BACKGROUND
On January 26, 2015 Council approved Resolution 15-11 accepting a Traffic Safety Grant from
the Minnesota Office of Traffic Safety. This grant is renewable for up to four years.
The Minnesota Office of Traffic Safety is requiring an updated Resolution for each annual
renewal.
The primary goal of this grant program is to enhance safety on community roads and freeways
through community outreach and traffic safety education focused on prevention (forums at
local businesses, schools, and social media), analysis of traffic and crash data for targeted
intervention strategies, and enforcement of traffic offenses.
The Grant will reimburse the City for expenses related to salary and benefits for one officer
($108,513.60), court related overtime (up to $25,000) and attendance at the TZD Annual
Conference (up to $550).
RECOMMENDATION
Staff recommends approval of Resolution 16-144 renewing the traffic safety grant from the
Minnesota Office of Traffic Safety for State fiscal years of 2017 and 2018.
ATTACHMENTS
Resolution 16-144
CITY OF LINO LAKES
RESOLUTION NO. 16-144
AUTHORIZING EXECUTION OF AGREEMENT
WHEREAS, the Lino Lakes Public Safety Department be authorized to enter into a grant agreement
with the Minnesota Department of Public Safety, for traffic safety enforcement projects during the
State fiscal period of 2017 and 2018.
BE IT FURTHER RESOLVED that the Director of the Lino Lakes Public Safety Department is
hereby authorized to execute such agreements and amendments as are necessary to implement the
project on behalf of the Lino Lakes Public Safety Department and to be the fiscal agent and
administer the grant.
Adopted by the Council of the City of Lino Lakes this ___ day of _______, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_______________and was duly seconded by Council Member ________________ and upon
vote being taken thereon, the following voted in favor thereof:
The following voted against same:
_______________________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
1
CITY COUNCIL
AGENDA ITEM 6A
STAFF ORIGINATOR: Katie Larsen, City Planner
MEETING DATE: October 24, 2016
TOPIC: Consider Resolution No. 16-135 Approving Third Amendment to
PUD Development Stage Plan/Preliminary Plat for Century Farm
North
VOTE REQUIRED: 3/5
INTRODUCTION
Century Farm North is a residential Planned Unit Development (PUD) in northwest Lino Lakes
and was approved in 2003. It includes a mix of housing styles including typical single family
lots, single family airpark lots with hangars, single family detached townhomes (individual
house lots located within a commonly owned yard lot) and attached townhomes.
There have been six (6) final plats and two (2) PUD amendments to date. The first amendment
allowed for the conversion of 16 single family detached townhomes to 16 single family lots.
The second amendment expanded the preliminary plat boundary to include the Morell 1 acre
parcel, realigned Robinson Drive and created new parcels.
The proposed third amendment to the PUD is to allow for side yard setbacks of 7.5 feet on both
sides of either the principal or attached accessory structures on platted lots in Century Farm
North 6th Addition.
This staff report is based on the following plan sets:
• Revised CO, Title Sheet and PP, Preliminary Plat prepared by Plowe Engineering, Inc.
dated September 19, 2016
• Buildable Area Exhibit prepared by Plowe Engineering, Inc. dated September 19, 2016
• House Plans (Cheyenne, Freeport, Holland) prepared by Capstone Homes dated August
31, 2016
BACKGROUND
The PUD Final Plan/Final Plat of Century Farm North 6th Addition was approved in June 2016
by Resolution No. 16-43. The plat contains 29 single family lots. The required side yard
setbacks are 10 feet from the principal building (house) and 5 feet from the attached accessory
building (garage). The 5 foot accessory setback does not allow for any principal structure
above or behind the accessory structure.
2
Capstone Homes is the builder of the remaining 29 single family lots. They are proposing
several different house plans (e.g. Cheyenne, Freeport and Holland). Each house plan has a
portion of the principal structure (house) behind the attached accessory structure (garage). This
would require 10 foot side yard setbacks on both sides.
The lot widths in Century Farm North 6th Addition vary from 60 to 82 feet wide. The proposed
house plans vary from 40 to 50 feet wide. By allowing a side yard setback of 7.5 feet on both
sides, a wider variety of marketable housing products would be available for construction while
still maintaining a minimum of 15 feet separation between houses.
House Plan House Width Side Setback
(7.5 + 7.5)
Min.
Lot
Width
Main Floor
Area
Cheyenne I 47 feet 15 feet 62 1,401 s.f.
Cheyenne II 45 feet 15 feet 60 1,600 s.f.
Holland I 50 feet 15 feet 65 1,426 s.f.
Holland II 50 feet 15 feet 65 1,582 s.f.
Freeport 40 feet 15 feet 55 1,465 s.f.
Zoning Requirements and Standards
The PUD allows for flexibility from the strict standards of the zoning ordinance. Unless
otherwise stated in the PUD resolutions, the regulations and performance standards of the
zoning ordinance and R-2 Two Family Residential District will be in effect.
R-2 District
Required Proposed
Min. Lot Size (sq. ft.) 7,500 Ave. 8,060
Min. Lot Width (feet)
Interior Lot 60 60 to 69
Corner Lot 80 Varying 80+’
Min. Lot Depth (feet) 125 130 to 131.81
Building Setback (feet)
-From Streets-
Local Street 25 25
Collector or Arterial 40 40
-Rear-
Principal 25 25
3
Accessory 5 5
-Side-
Principal 10 7.5
Accessory 5 7.5
Buffer
15’ if side or
rear lot abuts
collector or
arterial street
Required
Per Section 1007.042(5)(b)1.e, air conditioning equipment must be 10 feet from any side lot
line. No encroachment shall be permitted in the drainage and utility easement. The house
plans show the air conditioning units on the side of the house but in many cases, the units will
need to be in the rear yards.
Each lot must be able to provide for a minimum 10’x10’ deck if the house plan shows a main
floor patio door. The certificate of survey submitted with the building permit shall show the
location of a future deck to verify compliance.
RECOMMENDATION
The Planning & Zoning Board held a public hearing on October 12, 2016. There were no
public comments. The Board recommended approval of the PUD amendment with a 5-0 vote
with the addition that Lot 8, Block 1, Century Farm North 6th Addition maintain a 10 foot side
setback from the east property line due to the fact there is an existing house located on the
adjacent lot.
The City Engineer provided a comment letter dated October 5, 2016 stating they had no issues
with the proposed side yard setbacks.
Staff recommends approval of the third PUD amendment to Century Farm North subject to the
conditions listed in Resolution No. 16-135.
ATTACHMENTS
1. Preliminary Plat
2. House Plans
3. Resolution No. 16-135
1
CITY OF LINO LAKES
RESOLUTION NO. 16-135
APPROVING THIRD AMENDMENT TO PUD DEVELOPMENT STAGE
PLAN/PRELIMINARY PLAT FOR CENTURY FARM NORTH
WHEREAS, the City has received an application to amend the PUD Development Stage
Plan/Preliminary Plat for Century Farm North hereafter referred to as “Amendment”; and
WHEREAS, the “Amendment” is to allow for side yard setbacks of 7.5 feet on both sides of
either the principal or attached accessory structure on platted lots in Century Farm North 6th
Addition; and
WHEREAS, City staff has completed a review of the “Amendment” based on the following:
• Revised CO, Title Sheet and PP, Preliminary Plat prepared by Plowe Engineering, Inc.
dated September 19, 2016
• Buildable Area Exhibit prepared by Plowe Engineering, Inc. dated September 19, 2016
• House Plans (Cheyenne, Freeport, Holland) prepared by Capstone Homes dated August
31, 2016; and
WHEREAS, a public hearing was held before the Planning & Zoning Board on October 12,
2016 and the Board recommended approval of the “Amendment”.
NOW, THEREFORE BE IT RESOLVED, by The City Council of The City of Lino Lakes
hereby determines the “Amendment” is consistent with the original Planned Unit Development
(PUD); and
BE IT FURTHER RESOLVED, by The City Council of The City of Lino Lakes hereby
determines the regulations and performance standards of the zoning ordinance, R-2 Two Family
Residential District and Resolution No. 14-43 will be in effect unless otherwise stated in this
resolution; and
BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby
approves the third amendment to the PUD Development Stage Plan/Preliminary Plat for Century
Farm North to allow for side yard setbacks of 7.5 feet on both sides of either the principal or
attached accessory structure on platted lots in Century Farm North 6th Addition subject to the
following conditions:
1. Each lot must be able to provide for a minimum 10’x10’ deck if the house plan shows a
main floor patio door.
a. The certificate of survey submitted with the building permit shall show the
location of a future deck to verify compliance.
2. Corner lots shall meet the required building setbacks from both streets.
3. Lot 8, Block 1, Century Farm North 6th Addition shall maintain a 10 foot side setback
from the east property line.
2
Adopted by the Council of the City of Lino Lakes this ___ day of _______, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_______________and was duly seconded by Council Member ________________ and upon
vote being taken thereon, the following voted in favor thereof:
The following voted against same:
_______________________________
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
CITY COUNCIL
AGENDA ITEM 6B
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-137, Adopting Assessments,
Individual Property
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
The City Council is to adopt assessments for properties where they have requested connection to
City utilities and have entered into a Petition and Waiver Agreement.
BACKGROUND
The property owners have submitted a signed waiver, which waives their rights to a hearing and
waives their rights to appeal under the Lino Lake City Charter and/or Minnesota Statute 429
provided that the assessment associated with the improvement is levied against their property, or
they have entered into a Performance Contract with the City. We are prepared to adopt the
assessment for the following individual properties, which requested connection to city utilities:
- 518 Lilac St
- 6180 Ware Rd
The total amount to be assessed is $26,124.00. Attached is a breakdown of the Individual
Property assessments.
RECOMMENDATION
Approve Resolution 16-137, Adopting Assessments, 2016 Individual Properties which Requested
Connection to City Utilities.
ATTACHMENTS
1. Resolution No. 16-137
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-137
RESOLUTION ADOPTING INDIVIDUAL ASSESSMENTS
WHEREAS, pursuant to executed Petition and Waiver Agreements, associated property owners waive all rights
to a hearing on conducting of local improvements which will benefit the following properties which requested
connection to City utilities:
- 518 Lilac St
- 6180 Ware Rd
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years,
the first installment to be payable on or before the first Monday in January, 2017, and shall bear interest
at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from the date of this resolution
until December 31, 2016. To each subsequent installment when due shall be added interest for one year
on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
2016 FINAL ASSESSMENT ROLL OCTOBER 24, 2016
INDIVIDUAL ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE SANITARY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER FRONT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT FOOTAGE FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
17-31-22-21-0008 518 Lilac St 1 3,073.00$ 4,069.00$ -$ 3,120.00$ 2,880.00$ -$ -$ 13,142.00$
32-31-22-32-0007 6180 Ware Rd 1 3,073.00$ 4,069.00$ -$ 3,040.00$ 2,800.00$ -$ -$ 12,982.00$
TOTAL 6,146.00$ 8,138.00$ -$ 6,160.00$ 5,680.00$ -$ -$ 26,124.00$
CITY COUNCIL
AGENDA ITEM 6C
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-138, Adopting Assessments,
NorthPointe 2nd Addition
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
The City Council is to adopt assessments for the NorthPointe 2nd Addition Development pursuant
the Development Agreement.
BACKGROUND
The following development project is substantially complete, and therefore City Staff is prepared
to adopt the assessments accordingly:
Development Development Agreement Date
NorthPointe 2nd Addition September 22, 2014
The total amount to be assessed is $1,193,056.00. In the above referenced Development
Agreement, the property owner waives any and all procedural and substantive objections to the
special assessments.
The developer has reviewed and approved the assessments. Attached is a breakdown of the
NorthPointe 2nd Addition assessments.
RECOMMENDATION
Approve Resolution 16-138, Adopting Assessments, NorthPointe 2nd Addition which Requested
Connection to City Utilities.
ATTACHMENTS
1. Resolution No. 16-138
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-138
RESOLUTION ADOPTING SPECIAL ASSESSMENTS, NORTHPOINTE 2ND ADDITION
WHEREAS, pursuant to the development agreement dated September 22, 2014 the developer waives all rights to
a hearing on conducting of local improvements which will benefit the properties within the NorthPointe 2nd
Addition development which requested connection to City utilities,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years,
the first installment to be payable on or before the first Monday in January, 2017, and shall bear interest
at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from the date of this resolution
until December 31, 2016. To each subsequent installment when due shall be added interest for one year
on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
FINAL ASSESSMENT ROLL OCTOBER 24, 2016
NORTHPOINTE 2ND ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE ROADWAY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER IMPROVEMENT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT PROJECT FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
25-31-22-21-0011 6778 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0012 6774 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0013 6770 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0014 6766 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0015 6762 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0016 6758 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0017 6754 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0018 6750 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0019 6746 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0021 6779 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0022 6775 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0023 6771 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0024 6767 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0025 6763 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0026 6759 21st Aveneu South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0027 6755 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-21-0028 6751 21st Avenue South 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0032 2093 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0033 2087 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0034 2081 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0035 2075 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0036 2069 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0037 2063 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0038 6743 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0039 6737 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0040 6731 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0041 6725 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0042 6719 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0043 6713 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0044 6707 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0045 2100 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0046 2094 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0047 2088 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0048 2082 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0049 6736 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0050 6730 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0051 6724 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0052 6718 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0053 6712 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
25-31-22-22-0054 6702 Palm Street 1 2,772.75$ 2,862.58$ 2,723.85$ 21,467.22$ -$ -$ -$ 29,826.40$
TOTAL 40 110,910.00$ 114,503.20$ 108,954.00$ 858,688.80$ -$ -$ -$ 1,193,056.00$
CITY COUNCIL
AGENDA ITEM 6D
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-139, Adopting Assessments,
NorthPointe 3rd Addition
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
The City Council is to adopt assessments for the NorthPointe 3rd Addition Development pursuant
the Development Agreement.
BACKGROUND
The following development project is substantially complete, and therefore City Staff is prepared
to adopt the assessments accordingly:
Development Development Agreement Date
NorthPointe 3rd Addition September 15, 2015
The total amount to be assessed is $277,447.00. In the above referenced Development
Agreement, the property owner waives any and all procedural and substantive objections to the
special assessments.
The developer has reviewed and approved the assessments. Attached is a breakdown of the
NorthPointe 3rd Addition assessments.
RECOMMENDATION
Approve Resolution 16-139, Adopting Assessments, NorthPointe 3rd Addition
ATTACHMENTS
1. Resolution No. 16-139
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-139
RESOLUTION ADOPTING SPECIAL ASSESSMENTS, NORTHPOINTE 3RD ADDITION
WHEREAS, pursuant to the development agreement dated September 15, 2015, the developer waives all rights to
a hearing on conducting of local improvements which will benefit the properties within the NorthPointe 3rd
Addition development which requested connection to City utilities,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years,
the first installment to be payable on or before the first Monday in January, 2017, and shall bear interest
at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from the date of this resolution
until December 31, 2016. To each subsequent installment when due shall be added interest for one year
on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
FINAL ASSESSMENT ROLL OCTOBER 24, 2016
NORTHPOINTE 3RD ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE SANITARY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER IMPROVEMENT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT PROJECT FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
25-31-22-21-0030 2105 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0031 2111 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0032 2117 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0033 2123 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0034 2129 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0035 6715 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0036 6721 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0037 6727 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0038 2114 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0039 2108 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0040 2101 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0041 6733 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0042 6739 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0043 6745 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0044 6740 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0045 6734 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0046 6728 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0047 6722 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0048 6716 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0049 6712 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0050 6706 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0051 6700 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-21-0052 6694 21st Avenue South 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0055 2087 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0056 2093 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0057 2099 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0058 2102 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0059 2096 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0060 2090 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0061 2083 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0062 2089 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-22-0063 2095 Dogwood Court 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-23-0016 2076 Red Oak Lane 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-23-0017 2081 Red Oak Lane 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-23-0018 2094 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-23-0019 2100 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-23-0020 2106 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-23-0021 2112 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-24-0005 2118 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-24-0006 2124 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
25-31-22-24-0007 2130 Cypress Street 1 3,073.00$ 1,862.00$ 1,832.00$ -$ -$ -$ -$ 6,767.00$
TOTAL 125,993.00$ 76,342.00$ 75,112.00$ -$ -$ -$ -$ 277,447.00$
CITY COUNCIL
AGENDA ITEM 6E
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-140, Adopting Assessments,
NorthPointe 4th Addition
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
The City Council is to adopt assessments for the NorthPointe 4th Addition Development pursuant
the Development Agreement.
BACKGROUND
The following development project is substantially complete, and therefore City Staff is prepared
to adopt the assessments accordingly:
Development Development Agreement Date
NorthPointe 4th Addition August 10, 2016
The total amount to be assessed is $239,908.07. In the above referenced Development
Agreement, the property owner waives any and all procedural and substantive objections to the
special assessments.
The developer has reviewed and approved the assessments. Attached is a breakdown of the
NorthPointe 4th Addition assessments.
RECOMMENDATION
Approve Resolution 16-140, Adopting Assessments, NorthPointe 4th Addition
ATTACHMENTS
1. Resolution No. 16-140
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-140
RESOLUTION ADOPTING SPECIAL ASSESSMENTS, NORTHPOINTE 4TH ADDITION
WHEREAS, pursuant to the development agreement dated August 10, 2016, the developer waives all rights to a
hearing on conducting of local improvements which will benefit the properties within the NorthPointe 4th Addition
development which requested connection to City utilities,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years,
the first installment to be payable on or before the first Monday in January, 2017, and shall bear interest
at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from the date of this resolution
until December 31, 2016. To each subsequent installment when due shall be added interest for one year
on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
PRELIMINARY ASSESSMENT ROLL OCTOBER 24, 2016
NORTHPOINTE 4th ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE SANITARY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER IMPROVEMENT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT PROJECT FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
2021 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2027 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2033 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2039 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2045 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2051 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2057 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2063 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2034 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2040 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2046 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2052 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
1980 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
1974 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
1949 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
1943 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
1937 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
1931 Rosewood Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2088 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2082 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2076 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2070 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2064 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2058 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2052 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2046 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2057 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2051 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2045 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2039 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
2033 Cypress Street 1 3,073.00$ 2,153.00$ 2,512.97$ -$ -$ -$ -$ 7,738.97$
TOTAL 95,263.00$ 66,743.00$ 77,902.07$ -$ -$ -$ -$ 239,908.07$
CITY COUNCIL
AGENDA ITEM 6F
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-141, Adopting Assessments, Saddle
Club 2nd Addition
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
The City Council is to adopt assessments for the Saddle Club 2nd Addition Development pursuant
the Development Agreement.
BACKGROUND
The following development project is substantially complete, and therefore City Staff is prepared
to adopt the assessments accordingly:
Development Development Agreement Date
Saddle Club 2nd Addition May 6, 2016
The total amount to be assessed is $154,092.93. In the above referenced Development
Agreement, the property owner waives any and all procedural and substantive objections to the
special assessments.
The developer has reviewed and approved the assessments. Attached is a breakdown of the
Saddle Club 2nd Addition assessments.
RECOMMENDATION
Approve Resolution 16-141, Adopting Assessments, Saddle Club 2nd Addition
ATTACHMENTS
1. Resolution No. 16-141
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-141
RESOLUTION ADOPTING SPECIAL ASSESSMENTS, SADDLE CLUB 2nd ADDITION
WHEREAS, pursuant to the development agreement dated May 6, 2016, the developer waives all rights to a
hearing on conducting of local improvements which will benefit the properties within the Saddle Club 2nd Addition
development which requested connection to City utilities,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years,
the first installment to be payable on or before the first Monday in January, 2017, and shall bear interest
at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from the date of this resolution
until December 31, 2016. To each subsequent installment when due shall be added interest for one year
on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
FINAL ASSESSMENT ROLL OCTOBER 24, 2016
SADDLE CLUB 2ND ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE SANITARY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER IMPROVEMENT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT PROJECT FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
28-31-22-34-0048 974 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0049 978 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0038 977 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0039 981 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0040 985 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0042 986 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0041 990 Pheasant Run South 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0050 6449 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0051 6445 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0052 6441 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0053 6431 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0054 6425 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0047 6405 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0046 6402 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0045 6426 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0044 6434 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
28-31-22-34-0043 6442 Black Berry Court 1 3,073.00$ 4,069.00$ 1,922.29$ -$ -$ -$ -$ 9,064.29$
TOTAL 17 52,241.00$ 69,173.00$ 32,678.93$ -$ -$ -$ -$ 154,092.93$
CITY COUNCIL
AGENDA ITEM 6G
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-142, Adopting Assessments, Century
Farm North 6th Addition
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
The City Council is to adopt assessments for the Century Farm North 6th Addition Development
pursuant the Development Agreement.
BACKGROUND
The following development project is substantially complete, and therefore City Staff is prepared
to adopt the assessments accordingly:
Development Development Agreement Date
Century Farm North 6th Addition June 22, 2016
The total amount to be assessed is $135,104.04. In the above referenced Development
Agreement, the property owner waives any and all procedural and substantive objections to the
special assessments.
The developer has reviewed and approved the assessments. Attached is a breakdown of the
Century Farm North 6th Addition assessments.
RECOMMENDATION
Approve Resolution 16-142, Adopting Assessments, Century Farm North 6th Addition.
ATTACHMENTS
1. Resolution No. 16-142
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-142
RESOLUTION ADOPTING SPECIAL ASSESSMENTS,
CENTURY FARM NORTH 6TH ADDITION
WHEREAS, pursuant to the development agreement dated June 22, 2016, the developer waives all rights to a
hearing on conducting of local improvements which will benefit the properties within the Century Farm North 6th
Addition development which requested connection to City utilities,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of fifteen years,
the first installment to be payable on or before the first Monday in January, 2017, and shall bear interest
at the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution.
To the first installment shall be added interest on the entire assessment from the date of this resolution
until December 31, 2016. To each subsequent installment when due shall be added interest for one year
on all unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
FINAL ASSESSMENT ROLL OCTOBER 24, 2016
CENTURY FARM NORTH 6TH ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE SANITARY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER IMPROVEMENT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT PROJECT FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
07-31-22-23-0016 87 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0015 91 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-24-0202 95 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-24-0203 99 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-24-0204 103 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-24-0205 107 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-24-0206 111 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-24-0207 115 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0019 71 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0018 75 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0017 79 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0030 7880 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0029 23 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0028 27 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0027 31 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0026 35 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0025 39 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0024 43 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0023 47 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0022 51 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0021 55 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0031 22 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0032 26 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0033 30 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0034 34 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0035 38 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0036 42 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0037 46 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
07-31-22-23-0038 50 Robinson Drive 1 2,077.41$ 763.83$ 1,817.52$ -$ -$ -$ -$ 4,658.76$
TOTAL 60,244.89$ 22,151.07$ 52,708.08$ -$ -$ -$ -$ 135,104.04$
CITY COUNCIL
AGENDA ITEM 6H
STAFF ORIGINATOR: Diane L. Hankee, City Engineer
MEETING DATE: October 24, 2016
TOPIC : Consider Resolution No. 16-143, Adopting Assessments, 21st
Avenue Extension
VOTE REQUIRED: 3/5 Vote Required
INTRODUCTION
Staff is requesting City Council consideration to adopt assessments for the 21st Avenue
Extension Project.
BACKGROUND
The 21st Avenue project included extending public infrastructure from Main Street (CSAH 14)
north 1,300 feet in response to a Petition and Waiver Agreement dated September 24, 2013 and
the Purchase Agreement dated April 8, 2013 between Alino LLC. and the Metropolitan Council.
The City also entered into a Joint Powers Agreement with the City of Centerville for their
portion of the shared roadway. The project cost allocation:
Total Project Cost $1,069,543
City of Centerville $342,461
Assessments $605,019
Lino Trunk Utility $122,063
The total amount to be assessed is $605,018.72. Attached is a breakdown of the 21st Avenue
assessments.
RECOMMENDATION
Approve Resolution 16-143, Adopting Assessments, 21st Avenue Extension Project.
ATTACHMENTS
1. Resolution No. 16-143
2. Assessment Roll
CITY OF LINO LAKES
RESOLUTION NO. 16-143
RESOLUTION ADOPTING SPECIAL ASSESSMENTS, 21ST AVENUE
WHEREAS, pursuant to executed Petition and Waiver Agreement and Purchase Agreement, associated property
owners waive all rights to a hearing on conducting of local improvements which will benefit the properties within
the 21st Avenue Extension Project,
NOW, THEREFORE, BE IT RESOLVED by the City Council of Lino Lakes:
1. Such proposed assessment, a copy of which is attached hereto and made a part thereof, is hereby
accepted and shall constitute the special assessment against the lands named therein, and each tract of
land therein included is hereby found to be benefited by the proposed improvement in the amount of the
assessment levied against it.
2. Such assessment shall be payable in equal annual installments extending over a period of ten years, the
first installment to be payable on or before the first Monday in January, 2017, and shall bear interest at
the rate of five percent (5%) per annum from the date of the adoption of this assessment resolution. To
the first installment shall be added interest on the entire assessment from the date of this resolution until
December 31, 2016. To each subsequent installment when due shall be added interest for one year on all
unpaid installments.
3. The owner of any property so assessed may, at any time prior to certification of the assessment to the
County Auditor, pay the whole of the assessment on such property, with interest accrued to the date of
payment, to the City, except that no interest shall be charged if the entire assessment is paid by
November 15, 2016; and the owner may, at any time thereafter, pay to the City the entire amount of the
assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is
made. Such payment must be made before November 15 or interest will be charged through December
31 of the next succeeding year.
4. The clerk shall forthwith transmit a certified duplicate of this assessment to the County Auditor to be
extended on the property tax lists of the County. Such assessments shall be collected and paid over in
the same manner as other municipal taxes.
Adopted by the City Council of Lino Lakes, Minnesota this 24th day of October, 2016.
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member and upon vote being taken thereon,
the following voted in favor thereof:
The following voted against same:
Jeff Reinert, Mayor
ATTEST:
________________________
Julianne Bartell, City Clerk
FINAL ASSESSMENT ROLL OCTOBER 24, 2016
21ST AVENUE ASSESSMENTS
LINO LAKES, MINNESOTA
SANITARY SURFACE ROADWAY WATERMAIN STREET STORM SEWER
SEWER WATERMAIN WATER IMPROVEMENT FRONT FRONT FRONT TOTAL
PIN ADDRESS UNIT UNIT UNIT MGMT PROJECT FOOTAGE FOOTAGE FOOTAGE ASSESSMENT
24-31-22-21-0002 7170 21st Avenue 1 -$ -$ -$ 326,512.87$ -$ -$ -$ 326,512.87$
24-31-22-21-0003 Outlot A, Alino Addition 1 -$ -$ -$ 278,505.85$ -$ -$ -$ 278,505.85$
TOTAL -$ -$ -$ 605,018.72$ -$ -$ -$ 605,018.72$