HomeMy WebLinkAbout06-05-2017 Council PacketWORK SESSION AGENDA
CITY OF LINO LAKES
Monday, June 5, 2017
CITY COUNCIL WORK SESSION
Community Room (not televised)
6:00 P.M.
1. Review 2016 Annual Audit, Redpath and Company, Ltd.
2. Arlo Lane Stop Sign Request, Diane Hankee
3. Culvert Maintenance ACD 10-22-32, Diane Hankee
4. 2018 City Budget, Jeff Karlson & Sarah Cotton
5. 5-Year Street Reconstruction Plan, Michael Grochala
6. Outsourcing Review, Mayor Reinert
7. Update on Ace Program, John Swenson
8. Speed Limit Changes on Main Street, Mayor Reinert
9. Winter Parking Restrictions, Mayor Reinert
10. Council Review of Department Directors, Mayor Reinert
11. Step Adjustments for New Employees, Jeff Karlson
12. Council Updates on Boards/Commissions, City Council
13. Monthly Progress Report, Jeff Karlson
14. Review Regular Agenda
15. Adjourn
WS – Item 1
WORK SESSION STAFF REPORT
Work Session Item No. 1
Date: June 5, 2017
To: City Council
From: Sarah Cotton, Finance Director
Re: 2016 Annual Audit Report
Background
Andy Hering of Redpath and Company will be in attendance at the meeting to provide an
overview of the City’s 2016 Annual Financial Report, present the auditor’s management
analysis and answer any questions you may have with regard to the financial condition of
the City.
The 2016 annual audit was undertaken earlier this year, with field work being completed
in May. The auditors review all financial transactions and the financial reports of the
City over the previous year for their fairness in presentation and for full disclosure of all
material aspects of the City’s financial condition. This review is conducted in accordance
with generally accepted auditing standards and the standards applicable to financial
audits contained in U.S. Government Auditing Standards, issued by the Comptroller
General of the United States. The auditors concluded that the City’s financial statements
for 2016 presented fairly, in all material respects, the financial position of the City as of
December 31, 2016. The auditors also issue their reports on the City’s legal compliance
with certain laws, regulations, contracts, etc., our internal control structure, and
management issues.
It should be noted that the City has received the Certificate of Achievement for
Excellence in Financial Reporting from the Government Finance Officers Association of
the United States and Canada for its 2015 Comprehensive Annual Financial Report. The
city has received this award each year since 1995. We believe that the report issued for
2016 continues to uphold the high standards of reporting excellence that this prestigious
award represents.
The presentation at the work session will be comprehensive and is intended to provide the
opportunity for council members to ask any questions or make comments about the audit
report and the state of city finances. Mr. Hering will also give an abbreviated
presentation at the June 12, 2017, regular City Council meeting.
Requested Council Direction
None
Attachments
2016 Comprehensive Annual Financial Report
2016 Other Audit Reports
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
Prepared By: Finance Department
Sarah Cotton, Director of Finance
Paula Schloer, Accountant
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
Organization Chart 9
Principal City Officials 10
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 31
Statement of Activities Statement 2 32
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 34
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position Statement 4 37
Statements of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 5 38
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balance of Governmental Funds to the Statement of Activities Statement 6 40
Statement of Net Position - Proprietary Funds Statement 7 41
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 8 42
Statement of Cash Flows - Proprietary Funds Statement 9 43
Statement of Net Position - Fiduciary Funds Statement 10 44
Notes to Financial Statements 45
Required Supplementary Information:
Budgetary Comparison Schedule -
General Fund Statement 11 86
Schedule of Funding Progress -
Retiree Health Plan Statement 12 92
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund Statement 13 93
Schedule of Pension Contributions -
General Employees Retirement Fund Statement 14 94
INTRODUCTORY SECTION
FINANCIAL SECTION
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Schedule of Proportionate Share of Net Pension Liability -
Public Employees Police and Fire Fund Statement 15 95
Schedule of Pension Contributions -
Public Employees Police and Fire Fund Statement 16 96
Schedule of Changes in the Net Pension Liability and Related Ratios -
Lino Lakes Public Safety Department - Fire Division Statement 17 97
Schedule of Contributions -
Lino Lakes Public Safety Department - Fire Division Statement 18 98
Notes to RSI 99
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 19 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 20 107
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 21 110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 22 111
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 23 115
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 24 119
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 25 127
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 26 130
Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual Statement 27 134
Statement of Changes in Assets and Liabilities - Agency Funds Statement 28 135
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Financial Trends:
Net Position by Component Table 1 140
Changes in Net Position Table 2 142
Fund Balances, Governmental Funds Table 3 146
Changes in Fund Balances, Governmental Funds Table 4 148
Revenue Capacity:
Assessed and Actual Value of Taxable Property Table 5 150
Direct and Overlapping Property Tax Capacity Rates Table 6 151
Principal Property Taxpayers Table 7 153
Property Tax Levies and Collections Table 8 154
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 156
Ratios of Net General Bonded Debt Table 10 158
Direct and Overlapping Governmental Activities Debt Table 11 160
Legal Debt Margin Information Table 12 161
Demographic and Economic Information:
Demographic and Economic Statistics Table 13 162
Principal Employers Table 14 163
Operating Information:
Full-Time Equivalent City Government Employees By Function/Program Table 15 164
Operating Indicators by Function/Program Table 16 166
Capital Asset Statistics by Function/Program Table 17 168
Schedule of Long-Term Debt Exhibit 1 170
Schedule of Deferred Tax Levies Exhibit 2 172
Debt Service Payments to Maturity Exhibit 3 174
Insurance in Force Exhibit 4 178
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 179
STATISTICAL SECTION (UNAUDITED)
OTHER INFORMATION (UNAUDITED)
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INTRODUCTORY SECTION
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600 Town Center Parkway – Lino Lakes, MN 55014-1189
City Hall: 651-982-2400 – www.ci.lino-lakes.mn.us
May 30, 2017
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Minnesota State law requires that cities over 2,500 population publish within six months of the close of
each fiscal year a complete set of financial statements presented in conformity with generally accepted
accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a
firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of the City of Lino Lakes,
Minnesota for the fiscal year ended December 31, 2016.
This report consists of management’s representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City of Lino Lakes has established a comprehensive internal control framework that is
designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the City of Lino Lakes’ financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance that
the financial statements will be free from material misstatement. As management, we assert that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Lino Lakes’ financial statements have been audited by Redpath and Company, Ltd., a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the City for the fiscal year ended December 31, 2016, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an
unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2016, are
fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first
component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino
Lakes’ MD&A can be found immediately following the report of the independent auditors.
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Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County
of Anoka. It covers an area of 33 square miles and has a population of approximately 20,750. The population
has more than doubled from the 1990 census figure of 8,807 and has grown by 23.5% since 2000. Within
the City’s borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and
Minneapolis is provided by I-35W and I-35E.
The City Charter, as amended, establishes a mayor-council form of government and grants the city council
full policy-making and legislative authority to the mayor and four council members. The City council is
responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and
hiring a City administrator. The City administrator has the responsibility of carrying out the policies and
ordinances of the City council, for overseeing the day-to-day operation of the city. The City council is
elected at-large on a non-partisan basis, with council members serving four-year terms and the mayor
serving a two-year term. Elections are held every two years with two council seats and the mayor being up
for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public
safety (police, fire and building inspection), public services (streets, fleet, parks and recreation),
conservation of natural resources (environmental and solid waste abatement), community development,
public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two
enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes’ financial planning and control. All divisions
are required to submit appropriations requests to the City administrator for review and consolidation into a
proposed budget. The City administrator is responsible for submitting the proposed annual budget to the
City Council in August of each year. The city council is required to hold a public hearing on the proposed
budget and to adopt by resolution a final budget and certify it no later than December 28. The budget
amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the
estimate. Division directors may make transfers of appropriations within a department, but transfers of
appropriations between departments require council approval. Budget-to-actual comparisons for the general
fund and the recreation program fund, the only funds for which an annual budget has been adopted, are
provided in Statements 11 and 27, respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from
the broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of
three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the
Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and
distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007
the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive
interchange, was developing at a rapid pace. Super Target and Kohl’s anchor the shopping center quadrant,
while Apollo Business Park brought approximately 1,000 new employees to the area. Land was purchased
by Anoka County on a third quadrant for future development of a regional library. Due to economic
conditions, the County has pushed back construction of the library to a future date.
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Factors Affecting Financial Condition (Continued)
In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast
quadrant of I-35W and Lake Drive. Called Legacy at Woods Edge, this mixed-use development is intended
to include diverse opportunities for housing, retail and office uses. To date, the development includes the
Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a
60-unit workforce housing project, 13,000 square feet of leasable commercial space, and an assisted living
facility. The Civic Complex and YMCA provide a civic and community focus as part of the vision for Town
Center. A workforce family housing and assisted living facility provide diversity in housing to underserved
populations within the City.
In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion
of public improvements in Legacy at Woods Edge to accommodate planned development and completed
the improvements by 2008. However, it became evident at the end of 2007 that development was stalling.
The recession has had negative impacts on the Legacy development. Both the master developer and lender
defaulted, sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit.
Development conditions have begun to improve relative to the Legacy property. During 2013, the assisted
living facility purchased an adjoining parcel to expand its current operation. The 36-room addition was
completed in 2014. In addition, the State Legislature approved City-initiated special legislation which has
allowed the City to acquire the tax forfeited property from the State at no cost except for an administrative
fee payable to Anoka County if future sale revenues exceed the value of the special assessments on the
property. The acquisition of this property will allow the City greater control in marketing the property to
potential developers. The solid foundation that was built and strong interest by developers prior to the
recession ensures that better economic times will once again bring the interest in residential and commercial
growth needed to complete the vision. Street, streetscape, water, sewer, and storm water improvements, as
well as a small community park, have been installed within the development area and assessed to the
development. The $11.1 million I-35W Interchange improvement was financed through the joint efforts of
MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment
bonds and will use tax increment financing and Minnesota State Aid funds to finance its portion of the
project cost.
In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed
to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the
interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through
Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is
being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation
Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011.
With both major interstate interchanges complete, the City is preparing for development of several hundred
acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension of Otter
Lake Road North east of I-35E and planning for the extension of 21st Avenue west of I-35E, which will
leave the City well poised to accommodate significant future industrial, commercial and residential
development. A McDonald’s restaurant was completed in 2014 at CSAH 14 and Otter Lake Road. In
addition, Metropolitan Transit has constructed a 300 space Park and Ride at I35-E at CSAH 14 and 21st
Avenue.
Development activities continued to increase in 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. Mattamy is currently working with another national developer on the sale of the
property. In addition, DR Horton, Inc. entered into a purchase agreement with the City for 11 acres of
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Factors Affecting Financial Condition (Continued)
land in the Legacy at Woods Edge development, and the 112-unit residential development received final
approval in September 2016. DR Horton is currently working on their second phase of the development.
Developers also broke ground on the 56-acre Clearwater Creek Business Park in 2016. This development
includes the construction of a 402,000 square-foot building providing warehousing and fulfillment
services.
Long-term financial planning. The City’s currently adopted five-year financial plan identifies street and
utility improvements totaling $26,590,408 over the five-year period. These improvements are anticipated
to be funded through a number of funding sources, including special assessments, municipal state aid road
funds, the area and unit trunk fund, the stormwater management fund and voter-approved tax levies. The
five-year plan also includes funding projections for operations and operating impacts for the five-year
period. This plan is in the process of being revised to reflect the anticipated activity through the year 2021.
Relevant Financial Policies
The City uses a variety of financial policies to guide its fiscal actions and ensure fiscal stability.
Fund balance policy. The City had adopted a Fund Balance policy which identified the required designated
amounts in the Fund Balance of the General Fund at fiscal year-end and directed the transfer of any excess
revenues to other funds for specific purposes, as identified annually. For the year ended December 31, 2011
and subsequent years, the City amended its Fund Balance policy to conform to the requirements of GASB
54. The new policy targets the unassigned fund balance of the general fund in a range of 40% to 50% of
budgeted general fund expenditures and other financial uses. In addition, fund balances are classified in
compliance with GASB 54 according to the hierarchy of usable fund balance resources. The unassigned
general fund balance as of December 31, 2016 was $6,031,077 which is 61% of general fund budgeted
expenditures and other financing uses for the year.
Cash management policies and practices. The City’s policy is to invest all available moneys at
competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market
risks while maintaining a competitive yield. Funds are invested in certificates of deposit, state and local
securities, and U.S. government agencies. Cash is pooled in one account to provide maximum return. The
City Council reviews the investment policy annually.
The City’s investment policy’s primary objective is safety of principal. Therefore, all deposits were either
insured by Federal depository insurance or were collateralized as required by State Statute. Due to the
weakened economy, a historically low interest rate environment has persisted over the last several years
and has had a dramatic impact on the city’s investment earnings. The average interest income yield on
investments for 2016 was 0.75%. Total investment income also includes positive or negative changes in
the fair value of investments. Changes in fair value of investments during the current year resulted in
unrealized gains of $17,588, or 0.04%, for a total investment yield of 0.79%. The changes in fair value
during the current year, however, do not necessarily represent trends that will continue; nor is it always
possible to realize such amounts, especially in the case of temporary changes in the fair value of investments
the City intends to hold to maturity. It is the City’s practice to purchase and hold investments to maturity
and, accordingly, changes in fair value over the term of the City’s investments are expected to net to book
value.
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Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards the
Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. The City
of Lino Lakes received this award for its comprehensive annual financial report for the year ended
December 31, 2015. This marks the twenty-first consecutive year the City has received this prestigious
award. A governmental unit must publish an easily readable and efficiently organized comprehensive
annual financial report, the contents of which conform to program requirements. This report must satisfy
both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2016 report
to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We
believe our current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of
the Finance Department, auditors and other city staff. I want to express my appreciation to the Mayor and
City Council for their support for maintaining the highest standard of professionalism in the management
of the financial operation of the City.
Respectfully submitted,
Sarah R. Cotton
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2015
Executive Director/CEO
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City of Lino Lakes Organizational Chart
City Council
City Administrator
Administration Finance Community
Development
Public Services Public Safety
City Clerk Accounting Planning Recreation Police Division
Human Resources Utility Billing
Economic
Development
Engineering
Environmental
Services
Government
Buildings
Public Works
Street / Fleet / Utility
Maintenance
Parks
Building Inspections
Fire Division
Senior Citizen
Services
Advisory Board &
Commissions
Network
Administration
Emergency
Management/
Administration
Public Information 9
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2016
Term Expires
Mayor: Jeff Reinert December 31, 2017
Councilmembers: William Kusterman December 31, 2017
Rob Rafferty December 31, 2017
Melissa Maher December 31, 2019
Michael Manthey December 31, 2019
City Administrator: Jeff Karlson Appointed
Directors:
Community Development Michael Grochala Appointed
Finance Sarah Cotton Appointed
Public Safety John Swenson Appointed
Public Services Richard DeGardner Appointed
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FINANCIAL SECTION
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4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
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 Lino Lakes, Minnesota, as of and for the year ended December 31, 2016, and the related
notes to the financial statements, which collectively comprise the City of Lino Lakes,
Minnesota’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the 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.
Auditor’s 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
disclosures in the financial statements. The procedures selected depend on the auditor’s
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.
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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 Lino Lakes, Minnesota,
as of December 31, 2016, 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.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison information, the schedule of
funding progress, and the schedules of pension information, 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 management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and
schedules, statistical section and other information are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules 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 underlying accounting and other records used to prepare the basic
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financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
The introductory section, the statistical section and other information 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 them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May
30, 2017, on our consideration of the City of Lino Lakes, Minnesota’s 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 results 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 the City of Lino Lakes, Minnesota’s internal
control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 30, 2017
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the
City’s financial statements this narrative overview and analysis of the financial activities of
the City for the fiscal year ended December 31, 2016. 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 in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$88,543,987 (net position). Of this amount, $24,743,181 (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 increased by $3,989,369.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $27,830,769, an increase of $7,774,754. Of this amount, $6,502,424
is restricted by external constraints established by creditors, grantors, contributors, or by state
statutory provisions.
At the end of the current fiscal year, the general fund balance was $6,256,191. Unassigned
fund balance for the general fund was $6,031,077, or 63% of total general fund expenditures
and other financing uses.
Total outstanding debt increased by $3,023,790 during 2016. However, refunding bonds in
the amount of $3,575,000 were issued during November 2016, the proceeds from which were
used to pay off two bonds on February 1, 2017.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic
financial statements. The City’s basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 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’s finances, in a manner similar
to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
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Management’s Discussion and Analysis
decreases in net position may serve as a useful indicator of whether the financial position of
the City 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 vacation leave).
Both of the government-wide financial statements distinguish functions of the City 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 include general government, public safety, public services, conservation of natural
resources and community development. The business-type activities of the City include a
water utility and sewer utility.
The government-wide financial statements are statements 1 and 2 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, 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
can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial 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
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
18
Management’s Discussion and Analysis
The City maintains four individual major 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 balance for the following major funds:
General Fund
G.O. Improvement Bonds of 2005A – Debt Service Fund
G.O. Improvement Notes of 2009A – Debt Service Fund
Area and Unit Charge – Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and its Program
Recreation special revenue fund. A budgetary comparison schedule has been provided for
those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are statements 3 through 6 of this report.
Proprietary funds. The City maintains two enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water and sewer 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 water and sewer funds, which are considered to be major
funds of the City. The basic proprietary fund financial statements are statements 7 through 9
of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held by the City as an
agent for individuals, private organizations, or other governments. Fiduciary funds are not
reflected by the government-wide financial statements because the resources of those funds
are not available to support the City’s own programs.
The basic fiduciary fund statements are Statements 10 and 28.
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 following Statement 10.
Other information. The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
information. Combining and individual fund statements and schedules are presented as
Statements 19 through 27.
19
Management’s Discussion and Analysis
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $88,543,987 at the
close of the most recent fiscal year.
The largest portion of the City’s net position ($50,457,954, or 57%) reflects its net
investment in capital assets (e.g. land, buildings, equipment, and infrastructure) less any
related debt used to acquire those assets that is still outstanding. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s 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.
City of Lino Lakes’ Net Position
2016 2015 2016 2015 2016 2015
Assets:
Current and other assets $37,480,144 $32,222,786 $14,501,253 $14,881,531 $51,981,397 $47,104,317
Capital assets 41,154,425 41,228,037 31,860,610 29,127,829 73,015,035 70,355,866
Total assets $78,634,569 $73,450,823 $46,361,863 $44,009,360 $124,996,432 $117,460,183
Deferred outflows of resources $8,780,333 $985,081 $168,302 $11,660 $8,948,635 $996,741
Liabilities:
Long-term liabilities outstanding $34,049,287 $27,144,998 $433,812 $111,802 $34,483,099 $27,256,800
Other liabilities 8,999,568 5,900,707 322,072 101,355 9,321,640 6,002,062
Total liabilities $43,048,855 $33,045,705 $755,884 $213,157 $43,804,739 $33,258,862
Deferred inflows of resources $1,546,117 $636,040 $50,224 $7,404 $1,596,341 $643,444
Net position:
Net investment in capital assets $18,597,344 $18,230,746 $31,860,610 $29,127,829 $50,457,954 $47,358,575
Restricted 13,342,852 8,635,293 - - 13,342,852 8,635,293
Unrestricted 10,879,734 13,888,120 13,863,447 14,672,630 24,743,181 28,560,750
Total net position $42,819,930 $40,754,159 $45,724,057 $43,800,459 $88,543,987 $84,554,618
Governmental Activities Business-Type Activities Totals
$13,342,852 of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position
($24,743,181) may be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City 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.
20
Management’s Discussion and Analysis
The City’s net position increased by $3,989,369 during 2016. Key elements of this increase
are as follows:
City of Lino Lakes’ Changes in Net Position
2016 2015 2016 2015 2016 2015
Revenues:
Program revenues:
Charges for services $2,744,984 $1,722,872 $2,754,219 $2,636,469 $5,499,203 $4,359,341
Operating grants and contributions 722,858 526,107 - 263,024 722,858 789,131
Capital grants and contributions 5,046,307 1,176,732 1,543,947 3,035,031 6,590,254 4,211,763
General revenues:
General property taxes 9,049,671 8,874,910 - - 9,049,671 8,874,910
Tax increment 293,829 267,286 - - 293,829 267,286
Grants and contributions not
restricted to specific programs 91,385 5,363 - - 91,385 5,363
Unrestricted investment earnings 210,142 112,961 107,119 51,167 317,261 164,128
Gain on disposal of capital assets 66,255 17,836 - - 66,255 17,836
Total revenues 18,225,431 12,704,067 4,405,285 5,985,691 22,630,716 18,689,758
Expenses:
General government 2,456,864 2,016,351 - - 2,456,864 2,016,351
Public safety 6,567,523 5,135,865 - - 6,567,523 5,135,865
Public services 6,228,893 7,971,712 - - 6,228,893 7,971,712
Conservation of naturual resources 216,905 186,111 - - 216,905 186,111
Community development 454,144 432,268 - - 454,144 432,268
Interest and fees on long-term debt 831,529 632,876 - - 831,529 632,876
Water - - 1,367,693 1,394,897 1,367,693 1,394,897
Sewer - - 1,850,962 2,089,842 1,850,962 2,089,842
Total expenses 16,755,858 16,375,183 3,218,655 3,484,739 19,974,513 19,859,922
Increase in net position before
special item and transfers 1,469,573 (3,671,116) 1,186,630 2,500,952 2,656,203 (1,170,164)
Special item 1,333,166 - - - 1,333,166 -
Transfers (914,414) 66,834 914,414 (66,834) - -
Change in net position 1,888,325 (3,604,282) 2,101,044 2,434,118 3,989,369 (1,170,164)
Net position - January 1, as previously reported 40,754,159 48,734,868 43,800,459 41,444,300 84,554,618 90,179,168
Prior period adjustment 177,446 (4,376,427) (177,446) (77,959) - (4,454,386)
Net position - January 1, as restated 40,931,605 44,358,441 43,623,013 41,366,341 84,554,618 85,724,782
Net position - December 31 $42,819,930 $40,754,159 $45,724,057 $43,800,459 $88,543,987 $84,554,618
Business-Type Activities TotalsGovernmental Activities
Governmental Activities
Governmental activities increased the City’s net position by $1,888,325 during 2016. The
cumulative effect of increased Capital Grants and Contributions, partially offset by increases
in general government and public safety expenses, and decreased public services spending
account for this increase in 2016. In addition, as a result of the City withdrawing from the
Centennial Fire district the City received $1,333,166 of cash and equipment, further
increasing the net position. This increase was partially offset by transfers out to business-
type activities of $914,414.
21
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
22
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities increased the City’s net position by $2,101,044 during 2016.
Contributions of capital assets from private sources, as well as the City’s governmental
activities, totaled $2,737,582 during the year. This revenue was partially offset by net
operating losses ($294,937) and transfers out to governmental activities ($279,221).
Below are specific graphs which provide comparisons of the business-type activities
revenues and expenses:
23
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City’s financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $27,830,769. Approximately 23% of this total amount ($6,502,424)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $326,334 of fund balance is not in a spendable
form, $170,950 has been committed, $15,778,480 has been assigned, and $5,052,581 is
unassigned.
The fund balance of the General Fund increased by $309,778 in 2016, while the City
anticipated the use of $423,000 of the general fund balance. Overall, signs of continued
economic recovery are being seen with increased building and development activities taking
place which resulted in increased license and permit revenues for the year. In addition,
reduced expenditures, primarily for personal services through vacant positions, fuel costs,
and professional services helped to increase the year end fund balance.
The G.O. Improvement Bonds of 2005A fund balance increased by $2,566,307 due to the
receipt of $1,975,000 of refunding bond proceeds and $996,679 of tax forfeit land received
and sold in lieu of special assessments. On February 1, 2017, the fund made a debt service
payment of approximately $2,420,000.
The G.O. Improvement Note of 2009A fund, to service the debt issued by Anoka County as
the City’s financial commitment for the I-35E interchange project, ended the year with a fund
balance of $22, a decrease of $7,362. Special assessment revenue and transfers in are meant
to approximate the fund’s debt service commitment each year. The outstanding balance on
the note as of December 31, 2016 was $1,345,000.
The Area and Unit Charge fund has a total fund balance of $6,266,200, all of which is
assigned for financing capital improvements. The fund balance during the current year
increased by $1,843,595 due to the collection of prepaid special assessments and trunk utility
development fees.
The combined fund balance of other governmental funds increased $3,062,436 during 2016.
Primary reasons for the increase include the issuance of $1,600,000 of G.O. Tax Abatement
Refunding Bonds, Series 2016C, the proceeds from which were used to pay-off the G.O. Tax
Abatement Bonds of 2006C on February 1, 2017. Also, the fund balance of the G.O. Bond
Fund of 2014A increased $858,219 as special assessment collections significantly exceeded
debt service payments during 2016.
24
Management’s Discussion and Analysis
Proprietary funds. The City’s 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-end of $22,019,271, of which $4,883,004 is
unrestricted. The increase in net position of $1,706,346 was primarily due to capital
contributions, partially offset by a net operating loss.
The sewer fund has total net position at year-end of $23,704,786, of which $8,980,443 is
unrestricted. The increase in net position of $394,698 was primarily due to capital
contributions, partially offset by a net operating loss and transfers out of the fund.
Budgetary Highlights
General Fund
The General Fund budget was amended several times during the year to reflect increased
revenues in building activities, police state aid, and other fines and fees, as well as changes in
expenditure areas due to personnel vacancies, changes to professional and contracted
services, variances in supplies, tools, and fuel, and finally the transfer for the park land loan.
The final amended expenditure budget was $317,388 less than the original adopted budget.
Revenues were $185,564 over budget for the year. General property tax and
intergovernmental state grant revenues were $50,529 under budget; however, this variance
was more than offset by greater than anticipated license and permit revenues, public safety
charges for services, and miscellaneous refunds and reimbursements.
Expenditures came in under budget by $115,428 due to many factors including lower than
expected personal service costs from vacant positions. Fuel and fleet maintenance supply
costs were much lower than anticipated and contracted services was lower overall from
budgeted levels primarily due to favorability in the streets, parks, and planning and zoning
departments.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-
type activities as of December 31, 2016, amounted to $73,015,035 (net of accumulated
depreciation), an increase of $2,659,169 from the prior year. This investment in capital
assets includes land, construction in progress, buildings, equipment, vehicles, and
infrastructure. The City has continued to work to complete the Shenandoah Area Street
Improvements, NorthPointe 2nd Addition infrastructure improvements, Fire Station #2, Pump
House #6, and the Birch Street turn lanes and infrastructure improvements in 2016. In
addition, the City began the reconditioning of Water Tower #1, Aqua Lane to Blackduck
Drive water main improvements, and the upgrade of the air conditioning system at the Civic
Complex. Developer lead infrastructure improvements at various stages of completion
25
Management’s Discussion and Analysis
include NorthPointe 3rd and 4th Additions, Saddle Club 2nd Addition, Century Farms 6th
Addition, and Woods Edge.
City of Lino Lakes’ Capital Assets
(Net of Depreciation)
2016 2015 2016 2015 2016 2015
Land $3,275,859 $3,275,859 $ - $ - $3,275,859 $3,275,859
Construction in progress 8,961,062 7,268,375 5,617,436 1,830,071 14,578,498 9,098,446
Buildings 2,706,355 2,802,413 - - 2,706,355 2,802,413
Office equipment and furniture 157,704 133,963 - - 157,704 133,963
Vehicles 1,370,732 1,141,371 - - 1,370,732 1,141,371
Machinery and shop equipment 1,017,332 1,109,527 167,440 152,886 1,184,772 1,262,413
Other equipment 206,385 193,122 - - 206,385 193,122
Infrastructure 23,458,996 25,303,407 26,075,734 27,144,872 49,534,730 52,448,279
Total $41,154,425 $41,228,037 $31,860,610 $29,127,829 $73,015,035 $70,355,866
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 5 to the financial
statements.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $27,741,081. Of this amount, $18,460,250 comprises tax supported debt and
$7,795,000 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 $1,345,000 and a note payable to the
City of Circle Pines for its share of the cost of capital equipment to be used by the North
Metro Telecommunications Commission in the operation of a cable communications system
in the amount of $264,000.
City of Lino Lakes’ Outstanding Debt
2016 2015 2016 2015 2016 2015
General obligation bonds $18,460,250 $16,406,250 $ - $ - $18,460,250 $16,406,250
G.O. special assessment bonds 7,795,000 6,485,000 - - 7,795,000 6,485,000
Note payable - Anoka County 1,345,000 1,720,000 - - 1,345,000 1,720,000
Bond premium 140,831 106,041 - - 140,831 106,041
Total $27,741,081 $24,717,291 $0 $0 $27,741,081 $24,717,291
Business-Type Activities TotalsGovernmental Activities
The City of Lino Lakes’ total bonded debt increased by $3,023,790 during the current fiscal
year. The key factors for the change include the issuance of $469,000 of Certificates of
Indebtedness to finance capital equipment purchases, $1,420,000 of General Obligation
Utility Revenue Bonds to fund Aqua Lane to Black Duck Drive trunk water main
improvements, $1,975,000 of Taxable General Obligation Refunding Bonds to refinance the
26
Management’s Discussion and Analysis
2005A Taxable G.O. Improvement Bonds, $1,600,000 of General Obligation Tax Abatement
Refunding Bonds to refinance the 2006C G.O. Tax Abatement Bonds, and a $294,525
General Obligation Capital Note to finance the City’s share of capital equipment to be
acquired by North Metro TV. Principal in the amount of $2,769,525 was retired during the
year.
Additional information on the City’s long-term debt can be found in Note 6.
Requests for information. This financial report is designed to provide a general overview
of the City’s finances for all 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.
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28
BASIC FINANCIAL STATEMENTS
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30
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2016
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $28,617,570 $13,470,487 $42,088,057
Accrued interest receivable 69,933 - 69,933
Due from other governmental units 91,736 2,023 93,759
Accounts receivable - net 95,628 358,559 454,187
Prepaid items 226,334 29,247 255,581
Internal balances (559,110) 559,110 -
Inventory - 81,827 81,827
Taxes receivable 212,331 - 212,331
Special assessments receivable 8,500,722 - 8,500,722
Long-term notes receivable 225,000 - 225,000
Capital assets - nondepreciable 12,236,921 5,617,436 17,854,357
Capital assets - net of accumulated depreciation 28,917,504 26,243,174 55,160,678
Total assets 78,634,569 46,361,863 124,996,432
Deferred outflows of resources related to pensions 8,780,333 168,302 8,948,635
Liabilities:
Accounts payable 319,222 200,378 519,600
Salaries payable 107,758 6,020 113,778
Due to other governmental units 2,528 - 2,528
Contracts payable 640,483 74,403 714,886
Other accrued liabilities - 6,485 6,485
Accrued interest payable 261,347 - 261,347
Compensated absences payable:
Due within one year 467,558 34,786 502,344
Due in more than one year 266,857 31,604 298,461
Other post employment benefits 97,147 - 97,147
Bonds and notes payable:
Due within one year 7,103,525 - 7,103,525
Due in more than one year 20,637,556 - 20,637,556
Net pension liability:
Due in more than one year 13,144,874 402,208 13,547,082
Total liabilities 43,048,855 755,884 43,804,739
Deferred inflows of resources related to pensions 1,546,117 50,224 1,596,341
Net position:
Net investment in capital assets 18,597,344 31,860,610 50,457,954
Restricted for:
Debt service 12,481,303 - 12,481,303
Economic development 225,000 - 225,000
Tax increment purposes 438,026 - 438,026
Environmental improvements - nonexpendable 100,000 - 100,000
Environmental improvements - expendable 13,855 - 13,855
Other purposes 84,668 - 84,668
Unrestricted 10,879,734 13,863,447 24,743,181
Total net position $42,819,930 $45,724,057 $88,543,987
Primary Government
The accompanying notes are an integral part of these financial statements.
31
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2016
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $2,456,864 $520,231
Public safety 6,567,523 1,359,426
Public services 6,228,893 865,327
Conservation of natural resources 216,905 -
Community development 454,144 -
Interest and fees on long-term debt 831,529 -
Total governmental activities 16,755,858 2,744,984
Business-type activities:
Water 1,367,693 1,094,897
Sewer 1,850,962 1,659,322
Total business-type activities 3,218,655 2,754,219
Total primary government $19,974,513 $5,499,203
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities Total
$12,535 $ - ($1,924,098)$ - ($1,924,098)
336,701 - (4,871,396) - (4,871,396)
274,430 5,046,307 (42,829) - (42,829)
99,192 - (117,713) - (117,713)
- - (454,144) - (454,144)
- - (831,529) - (831,529)
722,858 5,046,307 (8,241,709)0 (8,241,709)
- 871,552 - 598,756 598,756
- 672,395 - 480,755 480,755
0 1,543,947 0 1,079,511 1,079,511
$722,858 $6,590,254 (8,241,709)1,079,511 (7,162,198)
General revenues:
General property taxes 9,049,671 - 9,049,671
Tax increment 293,829 - 293,829
Grants and contributions not
restricted to specific programs 91,385 - 91,385
Unrestricted investment earnings 210,142 107,119 317,261
Gain on disposal of capital assets 66,255 - 66,255
Special item - withdrawal from fire district 1,333,166 - 1,333,166
Transfers (914,414)914,414 -
Total general revenues, special item and transfers 10,130,034 1,021,533 11,151,567
Change in net position 1,888,325 2,101,044 3,989,369
Net position - January 1, as previously reported 40,754,159 43,800,459 84,554,618
Prior period adjustment 177,446 (177,446) -
Net position - January 1, as restated 40,931,605 43,623,013 84,554,618
Net position - December 31 $42,819,930 $45,724,057 $88,543,987
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
33
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2016
327 G.O.
Improvement
General Fund Bonds of 2005A
Assets
Cash and investments $6,044,322 $3,102,978
Accrued interest receivable 69,933 -
Due from other governmental units 91,736 -
Accounts receivable - net 59,875 -
Prepaid items 225,114 -
Advances to other funds - -
Taxes receivable:
Due from county 96,175 -
Delinquent 73,316 -
Special assessments receivable:
Due from county - -
Delinquent - -
Deferred - 2,994,379
Interfund loan receivable - -
Long-term notes receivable - -
Total assets $6,660,471 $6,097,357
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $221,010 $200
Salaries payable 107,426 -
Due to other governmental units 2,528 -
Contracts payable - -
Advances from other funds - -
Interfund loan payable - 2,876,643
Total liabilities 330,964 2,876,843
Deferred inflows of resources:
Unavailable revenue 73,316 2,994,379
Fund balance:
Nonspendable 225,114 -
Restricted - 226,135
Committed - -
Assigned - -
Unassigned 6,031,077 -
Total fund balance 6,256,191 226,135
Total liabilities, deferred inflows of resources, and fund balance $6,660,471 $6,097,357
The accompanying notes are an integral part of these financial statements.
34
Statement 3
333 G.O.
Improvement 406 Area and Other Total
Note of 2009A Unit Charge Governmental Funds Governmental Funds
$22 $6,040,839 $13,429,409 $28,617,570
- - - 69,933
- - - 91,736
- 24,476 11,277 95,628
- - 1,220 226,334
- - 1,350 1,350
- - 27,739 123,914
- - 15,101 88,417
- 8,120 1,635 9,755
- 2,379 10,331 12,710
2,809,742 1,091,408 1,582,728 8,478,257
- 194,525 3,290,003 3,484,528
- - 225,000 225,000
$2,809,764 $7,361,747 $18,595,793 $41,525,132
$ - $1,760 $96,252 $319,222
- - 332 107,758
- - - 2,528
- - 640,483 640,483
- - 1,350 1,350
- - 1,166,995 4,043,638
0 1,760 1,905,412 5,114,979
2,809,742 1,093,787 1,608,160 8,579,384
- - 101,220 326,334
22 - 6,276,267 6,502,424
- - 170,950 170,950
- 6,266,200 9,512,280 15,778,480
- - (978,496)5,052,581
22 6,266,200 15,082,221 27,830,769
$2,809,764 $7,361,747 $18,595,793 $41,525,132
The accompanying notes are an integral part of these financial statements.
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36
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2016
Fund balance - total governmental funds (Statement 3) $27,830,769
Net position reported for governmental activities in the Statement of Net Position is
different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds.41,154,425
Other long-term assets are not available to pay for current-period expenditures and
therefore, are reported as unavailable revenue in the funds:
Delinquent taxes receivable 88,417
Delinquent special assessments receivable 12,710
Deferred special assessments receivable 8,478,257
Long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the funds. Long-term liabilities at year end consist of:
Bonds and notes payable (27,600,250)
Unamortized bond premiums (166,322)
Unamortized bond discounts 25,491
Accrued interest payable (261,347)
Compensated absences payable (734,415)
Other post employment benefits (97,147)
Net pension liability (13,144,874)
Deferred outflows and inflows of resources related to pensions are associated with
long-term liabilities that are not due and payable in the current period, and therefore,
are not reported in the funds. Balances at year end are:
Deferred outflows of resources 8,780,333
Deferred inflows of resources (1,546,117)
Net position of governmental activities (Statement 1)$42,819,930
37
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
327 G.O.
Improvement
General Fund Bonds of 2005A
Revenues:
General property taxes $7,037,596 $ -
Tax increment - -
Licenses and permits 895,581 -
Intergovernmental 654,447 -
Special assessments 4,618 996,679
Charges for services 342,690 -
Fines and forfeits 220,905 -
Investment earnings 37,887 6,964
Net increase in fair value of investments 2,553 368
Miscellaneous 221,034 -
Total revenues 9,417,311 1,004,011
Expenditures:
Current:
General government 1,837,343 -
Public safety 4,318,330 -
Public services 2,094,753 -
Conservation of natural resources 177,185 -
Community development 420,298 -
Capital outlay:
General government 4,583 -
Public safety 46,399 -
Public services 259 -
Conservation of natural resources 5,028 -
Debt service:
Principal - 400,000
Interest and fiscal charges - 130,860
Bond issuance costs - 34,628
Total expenditures 8,904,178 565,488
Revenues over (under) expenditures 513,133 438,523
Other financing sources (uses):
Transfers in 488,084 152,784
Transfers out (691,439) -
Proceeds from issuance of debt - 1,975,000
Premium on bonds issued - -
Proceeds from sale of capital assets - -
Total other financing sources (uses)(203,355)2,127,784
Special item - withdrawal from fire district - -
Net change in fund balance 309,778 2,566,307
Fund balance - January 1 5,946,413 (2,340,172)
Fund balance - December 31 $6,256,191 $226,135
The accompanying notes are an integral part of these financial statements.
38
Statement 5
333 G.O.
Improvement 406 Area and Other Total
Note of 2009A Unit Charge Governmental Funds Governmental Funds
$ - $ - $2,037,665 $9,075,261
- - 293,829 293,829
- - - 895,581
- - 52,497 706,944
128,803 1,858,728 1,411,807 4,400,635
- 252,580 698,286 1,293,556
- - 30,748 251,653
- 67,505 87,353 199,709
- 1,550 5,962 10,433
- - 196,414 417,448
128,803 2,180,363 4,814,561 17,545,049
- - 8,324 1,845,667
- - 14,750 4,333,080
- 22,725 1,086,359 3,203,837
- - 24,450 201,635
- - 5,104 425,402
- - 140,081 144,664
- - 521,918 568,317
- - 2,326,347 2,326,606
- - - 5,028
375,000 - 1,994,525 2,769,525
70,165 - 615,337 816,362
- - 64,278 98,906
445,165 22,725 6,801,473 16,739,029
(316,362)2,157,638 (1,986,912)806,020
309,000 1,001 2,570,311 3,521,180
- (315,044)(2,235,476)(3,241,959)
- - 3,489,000 5,464,000
- - 41,497 41,497
- - 72,182 72,182
309,000 (314,043)3,937,514 5,856,900
- - 1,111,834 1,111,834
(7,362)1,843,595 3,062,436 7,774,754
7,384 4,422,605 12,019,785 20,056,015
$22 $6,266,200 $15,082,221 $27,830,769
The accompanying notes are an integral part of these financial statements.
39
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 6
EXPENDITURES AND CHANGES IN FUND BALANCE OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2016
Net change in fund balance - total governmental funds (Statement 5) $7,774,754
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 the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense:
Depreciation (2,926,157)
Capital outlay 3,044,615
Capital outlay not capitalized (1,038,375)
Various other transactions involving capital assets increase (decrease) net position on
the Statement of Activities, but are not reported in governmental funds because they
do not provide (or use) current financial resources:
Contributions of infrastructure from private sources 1,824,535
Contributions of fire vehicles and equipment from fire district 221,332
Contributions of infrastructure to business-type activities (1,193,635)
Gain (loss) on disposal of capital assets (5,927)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Change in delinquent taxes receivable (25,590)
Change in delinquent special assessments receivable (14,255)
Change in deferred special assessments receivable (1,206,108)
The issuance of long-term debt provides current financial resources to governmental
funds, while repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental report the effects of bond premiums and
discounts when the debt is first issued, whereas amounts are deferred and amortized
over the life of the debt in the Statement of Activities.
Bonds and notes issued (5,758,525)
Repayment of principal 2,769,525
Bond premium received during current year (41,497)
Amortization of bond premiums and discounts 6,707
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds. Expenses reported in the Statement of Activities include the effects of the
changes in these expense accruals as follows:
Change in accrued interest payable 77,032
Change in compensated absences payable (45,510)
Change in other post employment benefits (6,295)
Pension expense in governmental funds is measured by current year employee
contributions. Pension expense in the Statement of Activities is measured by the change
in the net pension liability and related deferred inflows and outflows of resources.
This is the amount by which pension expense exceeded pension contributions.(1,568,301)
Change in net position of governmental activities (Statement 2)$1,888,325
The accompanying notes are an integral part of these financial statements.
40
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 7
PROPRIETARY FUNDS
December 31, 2016
601 Water 602 Sewer Total
Assets:
Current assets:
Cash and cash equivalents $4,947,883 $8,522,604 $13,470,487
Due from other governmental units - 2,023 2,023
Accounts receivable - net 142,284 216,275 358,559
Prepaid items 10,161 19,086 29,247
Inventory 81,827 - 81,827
Interfund loan receivable - 559,110 559,110
Total current assets 5,182,155 9,319,098 14,501,253
Noncurrent assets:
Capital assets:
Construction in progress 4,282,412 1,335,024 5,617,436
Equipment 124,259 328,432 452,691
Water and sewer systems 20,847,774 22,032,433 42,880,207
Total capital assets 25,254,445 23,695,889 48,950,334
Less: Allowance for depreciation (8,118,178) (8,971,546) (17,089,724)
Net capital assets 17,136,267 14,724,343 31,860,610
Total assets 22,318,422 24,043,441 46,361,863
Deferred outflows of resources related to pensions 84,151 84,151 168,302
Total assets and deferred outflows 22,402,573 24,127,592 46,530,165
Liabilities:
Current liabilities:
Accounts payable 43,143 157,235 200,378
Salaries payable 3,010 3,010 6,020
Contracts payable 74,403 - 74,403
Other accrued liabilities 3,335 3,150 6,485
Compensated absences payable - current portion 17,393 17,393 34,786
Total current liabilities 141,284 180,788 322,072
Noncurrent liabilities:
Compensated absences payable - noncurrent portion 15,802 15,802 31,604
Net pension liability 201,104 201,104 402,208
Total noncurrent liabilities 216,906 216,906 433,812
Total liabilities 358,190 397,694 755,884
Deferred inflows of resources related to pensions 25,112 25,112 50,224
Total liabilities and deferred inflows 383,302 422,806 806,108
Net position:
Investment in capital assets 17,136,267 14,724,343 31,860,610
Unrestricted 4,883,004 8,980,443 13,863,447
Total net position $22,019,271 $23,704,786 $45,724,057
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
41
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
601 Water 602 Sewer Totals
Operating revenues:
Charges for services $1,025,269 $1,638,272 $2,663,541
Hook-up charges 26,010 21,050 47,060
Water meter sales 30,687 - 30,687
Other operating revenue 12,931 - 12,931
Total operating revenues 1,094,897 1,659,322 2,754,219
Operating expenses:
Personal services 236,409 239,698 476,107
Materials and supplies 452,100 26,129 478,229
Contractual services 100,243 51,564 151,807
MCES sewer charges - 877,565 877,565
Depreciation 436,384 456,422 892,806
Utilities 86,889 40,229 127,118
Other 18,566 26,958 45,524
Total operating expenses 1,330,591 1,718,565 3,049,156
Operating income (loss)(235,694)(59,243)(294,937)
Nonoperating revenues (expenses):
Investment earnings 37,560 62,404 99,964
Net increase in fair value of investments 2,754 4,401 7,155
Gain (loss) on disposal of capital assets (37,102)(132,397)(169,499)
Total nonoperating revenues (expenses)3,212 (65,592)(62,380)
Income (loss) before contributions and transfers (232,482)(124,835)(357,317)
Contributions and transfers:
Capital contributions from private sources 871,552 672,395 1,543,947
Capital contributions from governmental activities 1,101,903 91,732 1,193,635
Transfer out (34,627)(244,594)(279,221)
Total contributions and transfers 1,938,828 519,533 2,458,361
Change in net position 1,706,346 394,698 2,101,044
Net position - January 1, as previously reported 20,401,628 23,398,831 43,800,459
Prior period adjustment (88,703)(88,743)(177,446)
Net position - January 1, as restated 20,312,925 23,310,088 43,623,013
Net position - December 31 $22,019,271 $23,704,786 $45,724,057
CHANGES IN FUND NET POSITION
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
42
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS Statement 9
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
601 Water 602 Sewer Totals
Cash flows from operating activities:
Receipts from customers and users $1,105,801 $1,663,724 $2,769,525
Payment to suppliers (618,143) (882,352) (1,500,495)
Payment to employees (226,242) (222,576) (448,818)
Net cash flows provided by operating activities 261,416 558,796 820,212
Cash flows from noncapital financing activities:
Transfers (34,627) (244,594) (279,221)
Cash flows from capital and related financing activities:
Acquisition of capital assets (1,057,604) - (1,057,604)
Proceeds from sale of capital assets 100 - 100
Net cash flows provided by (used in)
capital and related financing activities (1,057,504) - (1,057,504)
Cash flows from investing activities:
Investment income 40,314 66,805 107,119
Net increase (decrease) in cash and cash equivalents (790,401) 381,007 (409,394)
Cash and cash equivalents - January 1 5,738,284 8,141,597 13,879,881
Cash and cash equivalents - December 31 $4,947,883 $8,522,604 $13,470,487
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)($235,694) ($59,243) ($294,937)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation 436,384 456,422 892,806
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units - (429)(429)
Decrease (increase) in accounts receivable - net 10,904 4,831 15,735
Decrease (increase) in prepaid items (2,906) (1,711) (4,617)
Decrease (increase) in inventory (39,805) - (39,805)
Decrease (increase) in deferred outflows of resources (78,318) (78,324) (156,642)
Increase (decrease) in payables 82,366 141,804 224,170
Increase (decrease) in other accrued liabilities (3,805)3,150 (655)
Increase (decrease) in compensated absences 1,103 1,103 2,206
Increase (decrease) in net pension liability 69,779 69,781 139,560
Increase (decrease) in deferred inflows of resources 21,408 21,412 42,820
Total adjustments 497,110 618,039 1,115,149
Net cash provided by operating activities $261,416 $558,796 $820,212
Noncash investing, capital and financing activities:
Contributions of capital assets $1,973,455 $764,127 $2,737,582
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
43
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 10
FIDUCIARY FUNDS
December 31, 2016
Assets:
Cash and investments $825,373
Liabilities:
Deposits payable $825,373
The accompanying notes are an integral part of these financial statements.
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes, Minnesota (the City) 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 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 significant accounting policies:
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity include those of the City (the primary
government) and its component units. The component units discussed below are included in the City’s
reporting entity because of the significance of their operational or financial relationships with the City.
COMPONENT UNITS
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component units have been included in the financial report as 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 a part of the
City’s operation because the governing body is substantially 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 Development Authority (HRA) of
Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes,
the HRA is reported as if it were part of the City’s operations because the members of the City
Council serve as commission members and a financial benefit or burden relationship exists
between the City and the HRA. The HRA has not yet incurred any financial activity.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government and its
component units. 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 for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
business-type activity are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business-type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The fund financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. 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 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 of 2005A Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt.
General Obligation Improvement Note of 2009A Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt. The note
was used to finance improvement projects at the I-35E and County Road 14 interchange.
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 infrastructure.
The City reports the following major proprietary funds:
The Water Fund accounts for customer water service charges which are used to finance water
system operating expenses.
The Sewer Fund accounts for customer sewer service charges which are used to finance sanitary
sewer system operating expenses.
Additionally, the City reports the following fund type:
Agency funds account for assets held as an agent for individuals, private organizations and other
governmental units. 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 financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. 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
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
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. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
City considers all revenues, except reimbursement grants, to be available if they are collected within 60
days of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
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 revenues of
the water and sewer 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 accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and the Program
Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. Budgeted
amounts are reported as originally adopted and as amended by the City Council. 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
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E. LEGAL COMPLIANCE – BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing
the following January 1. The operating budget includes proposed expenditures and the means
of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may be
authorized by the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the 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
authorized investments. Investment income is allocated to individual funds on the basis of the fund's
equity in the cash and investment pool.
Investments are stated at fair value, except for investments in external investment pools that meet
GASB 79 requirements, which are stated at amortized cost. Interest earnings are accrued at year-end.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
For purposes of the Statement of Cash Flows, the Proprietary Funds consider 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 REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and
collecting all property taxes for itself, the City, the local School District and other taxing authorities.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real
property taxes are payable (by property owners) on May 15 and October 15 of each calendar year.
Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes
are collected by the County and remitted to the City on or before July 15 and December 15 of the same
year. Delinquent collections for November and December are received the following January. The
City has no ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Within the government-wide financial statements, the City recognizes property tax revenue in the
period for which taxes were levied. Uncollectible property taxes are not material and have not been
reported.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. In practice,
current and delinquent taxes and received by the City in July, December, and the following January are
recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to
the City the following January) are classified as due from county. Taxes not collected by the county by
December 31 are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset
by deferred inflows of resources because they are not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation
growth since 1971.
H. 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
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
property taxes. Property owners are allowed to (and often do) prepay future installments without
interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
Within the government-wide financial statements, the City recognizes special assessment revenue in the
period that the assessment roll was adopted by the City Council. Uncollectible special assessments are
not material and have not been reported.
Within the fund financial statements, the revenue from special assessments is recognized by the City
when it becomes measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are recognized as revenue for
the current year. Special assessments are collected by the County and remitted by December 31
(remitted to the City the following January) and are also recognized as revenue for the current year. All
remaining delinquent, deferred and special deferred assessments receivable in governmental funds are
completely offset by deferred inflows of resources.
I. INVENTORY
For governmental funds, the original cost of materials and supplies are recorded as expenditures at the
time of purchase. These funds do not maintain material amounts of inventories.
Inventories of the proprietary funds are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method.
J. PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditures/expenses at the time of consumption.
K. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /
expenses initially made from it that are properly applicable to another fund, are recorded as
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund
that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Such advances are classified as “advances to/from other funds.” Long-
term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as “internal balances.” All other interfund transactions are
reported as transfers.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
sidewalks, street lights, and similar items) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation. All
existing City infrastructure has been capitalized regardless of date placed in service.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed. Interest incurred during the construction phase of capital assets
of business-type activities is included as part of the capitalized value of the assets constructed. For the
year ended December 31, 2016, no interest was capitalized in connection with construction in progress.
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
immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into
consideration for depreciation purposes. Useful lives vary from 3 to 30 years for buildings, office
furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for
infrastructure.
M. COMPENSATED ABSENCES
It is the City’s policy to permit employees to accumulate earned but unused vacation, PTO (Personal
Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay
allowable as severance 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 government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums
and discounts are amortized over the life of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
O. DEFINED BENEFIT PENSION PLANS
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and 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 dates 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 to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow of resources
(expense) that time. The City has one item that qualifies for reporting in the category. It is the pension
related deferred outflows of resources reported in the government-wide Statement of Net Position and
the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position
that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue)
until that time. The City has pension related deferred inflows of resources reported in the government-
wide Statement of Net Pension and the proprietary funds Statements of Net Position. The City also has
a type of item, which arises only under a modified accrual basis of accounting, that qualifies for
reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the
governmental fund balance sheet. The governmental funds report unavailable revenues from the
following sources: property taxes and special assessments not collected within 60 days from year-end.
Q. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and
corpus of any permanent fund.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by a
resolution approved by the City Council, and committed amounts cannot be used for any other
purpose unless the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended
use. 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 both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City’s policy to use
resources in the following order: 1) committed 2) assigned and 3) unassigned.
The City formally adopted a fund balances policy for the general fund. The policy establishes an
unassigned fund balance range of 40% - 50% of general fund operating expenditures.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not
covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit
risk. As of December 31, 2016, the bank balance of the City’s deposits was insured by the FDIC or
covered by pledged collateral held in the City’s name.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated
“A” or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
d) General obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc. or Standard & Poor’s Corporation; and
f) Time deposits that are fully insured by the Federal Deposits Insurance Corporation.
At December 31, 2016, the carrying amount of the City’s deposits with financial institutions was
$2,872,639.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2016, the City had the following investments and maturities:
Fair Less
Investment Type Rating Value Than 1 1 - 5 6 - 8
Wells Fargo money market NR $3,759,721 $3,759,721 $ - $ -
4M Fund NR 9,653,494 9,653,494 - -
Mutual funds NR 1,782,066 1,782,066 - -
Brokered CD's NR 12,395,765 3,898,818 7,123,353 1,373,594
Municipal bonds * 11,963,565 2,849,918 8,049,217 1,064,430
Federal Home Loan Mortgage Corp.AAA 485,360 - - 485,360
Total $40,039,971 $21,944,017 $15,172,570 $2,923,384
NR - Not Rated Total investments $40,039,971
* AAA $2,191,736; AA+ $1,261,057 Deposits 2,872,639
AA $2,888,737; AA- $5,494,900 Petty cash 820
A+ $127,135 Total cash and investments $42,913,430
Investment Maturities (in Years)
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business-type (Statement 1)$42,088,057
Fiduciary (Statement 10)825,373
Total $42,913,430
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using
inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or
indirectly. Level 3 investments are valued using inputs that are unobservable.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The City has the following recurring fair value measurements as of December 31, 2016:
Investment Type 12/31/2016 Level 1 Level 2 Level 3
Investments at fair value:
Mutual funds $1,782,066 $1,782,066 $ - $ -
Brokered CD's 12,395,765 - 12,395,765 -
Municipal bonds 11,963,565 - 11,963,565 -
Federal Home Loan Mortgage Corp.485,360 - 485,360 -
$1,782,066 $24,844,690 $ -
Investments not categorized:
Wells Fargo money market 3,759,721 `
4M Fund 9,653,494
Total investments $40,039,971
Fair Value Measurement Using
The 4M Fund is an external investment pool investment which is regulated by Minnesota Statutes and
the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
Statement No. 79. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest
on the amount withdrawn.
C. INVESTMENT RISKS
Custodial Credit Risk – Investments – For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s
investment policy requires its brokers be licensed with the appropriate federal and state agencies. A
minimum capital requirement of $5,000,000 and at least five years of operation is mandatory.
Investments in securities are held by the City’s broker-dealers. The securities at each broker-dealer are
insured $500,000 through SIPC. Each broker-dealer has provided additional protection by providing
additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s
accounts.
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. The City’s policy to minimize interest
rate risk includes investing primarily in short-term securities and structuring the investment portfolio so
that securities mature to meet cash requirements for ongoing operations.
Credit Risk – Credit risk is the risk than an issuer of an investment will not fulfill its obligation to the
holder of the investment. The City’s policy to minimize credit risk includes limiting investing funds to
those allowable under Minnesota Statute 118A, annually appointing all financial institutions where
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
investments are held, and diversifying the investment portfolio. This is measured by the assignment of
a rating by a nationally recognized statistical rating organization.
Concentration of Credit Risk – Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government’s investment in a single issuer. The City places no limit on the amount
it may invest in any one issuer. As of December 31, 2016, no individual investments exceeded 5% of
the City’s total investment portfolio.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2016 are as
follows:
Property Special
Taxes Assessments Notes
Receivable Receivable Receivable Total
Major Funds:
General Fund $38,521 $ - $ - $38,521
G.O. Improvement Bonds of 2005A - 2,994,379 - 2,994,379
G.O. Improvement Note of 2009A - 2,790,523 - 2,790,523
Area and Unit Charge - 984,326 - 984,326
Nonmajor Funds 8,329 1,411,306 225,000 1,644,635
Total $46,850 $8,180,534 $225,000 $8,452,384
Note 4 UNAVAILABLE REVENUE
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds are as follows:
Property Special
Taxes Assessments
Receivable Receivable Total
Major Funds:
General Fund $73,316 $ - $73,316
G.O. Improvement Bonds of 2005A - 2,994,379 2,994,379
G.O. Improvement Note of 2009A - 2,809,742 2,809,742
Area and Unit Charge - 1,093,787 1,093,787
Nonmajor Funds 15,101 1,593,059 1,608,160
Total $88,417 $8,490,967 $8,579,384
57
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2016 was as follows:
Beginning Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets, not being depreciated:
Land $3,275,859 $ - $ - $3,275,859
Construction in progress 7,268,375 1,692,687 - 8,961,062
Total capital assets, not being depreciated 10,544,234 1,692,687 0 12,236,921
Capital assets, being depreciated:
Buildings 6,765,619 126,228 - 6,891,847
Office equipment and furniture 629,172 68,000 (37,732) 659,440
Vehicles 3,130,157 628,412 (340,901) 3,417,668
Machinery and shop equipment 2,255,796 57,123 (3,506) 2,309,413
Other equipment 1,005,797 28,329 - 1,034,126
Infrastructure 80,480,767 257,693 - 80,738,460
Total capital assets, being depreciated 94,267,308 1,165,785 (382,139) 95,050,954
Less accumulated depreciation for:
Buildings 3,963,206 222,286 - 4,185,492
Office equipment and furniture 495,212 43,733 (37,209) 501,736
Vehicles 1,988,785 393,648 (335,497) 2,046,936
Machinery and shop equipment 1,146,269 149,318 (3,506) 1,292,081
Other equipment 812,675 15,066 - 827,741
Infrastructure 55,177,358 2,102,106 - 57,279,464
Total accumulated depreciation 63,583,505 2,926,157 (376,212) 66,133,450
Total capital assets being depreciated - net 30,683,803 (1,760,372) (5,927) 28,917,504
Governmental activities capital assets - net $41,228,037 ($67,685) ($5,927) $41,154,425
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in progress $1,830,071 $3,787,365 $ - $5,617,436
Capital assets, being depreciated:
Machinery and shop equipment 449,155 7,821 (4,285) 452,691
Water and sewer systems 43,056,382 - (176,175) 42,880,207
Total capital assets, being depreciated 43,505,537 7,821 (180,460) 43,332,898
Accumulated depreciation for:
Machinery and shop equipment 267,730 21,806 (4,285) 285,251
Water and sewer systems 15,940,049 871,000 (6,576) 16,804,473
Total accumulated depreciation 16,207,779 892,806 (10,861) 17,089,724
Total capital assets being depreciated - net 27,297,758 (884,985) (169,599) 26,243,174
Business-type activities capital assets - net $29,127,829 $2,902,380 ($169,599) $31,860,610
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $222,823
Public safety 332,173
Public services 2,364,514
Conservation of natural resources 850
Community development 5,797
Total depreciation expense - governmental activities $2,926,157
Business-type activities:
Water $436,384
Sewer 456,422
Total depreciation expense - business-type activities $892,806
59
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 6 LONG-TERM DEBT
The City issues general obligation bonds and equipment certificates to provide funds for the acquisition and
construction of major capital facilities and equipment. City indebtedness as of December 31, 2016 consisted of
the following:
Final
Issue Maturity Interest Original Payable
Date Date Rate Issue 12/31/16
Governmental activities:
General Obligation Bonds:
2014A Certificates of Indebtedness 2/1/14 12/31/17 1.00% $495,000 $168,000
2015A Certificates of Indebtedness 2/1/15 12/31/18 1.00%198,250 133,250
2015B Certificates of Indebtedness 8/25/15 12/31/20 1.50%963,000 786,000
2016A Certificates of Indebtedness 2/1/16 12/31/19 1.00%469,000 469,000
G.O. Tax Abatement Bonds, Series 2006C 8/15/06 2/1/17 4.00% - 4.30% 2,460,000 1,755,000
G.O. Utility Revenue Bonds, Series 2006D 8/15/06 2/1/17 4.00% - 4.15% 570,000 70,000
G.O. CIP Refunding Bonds, Series 2006E 11/1/06 2/1/18 4.00% 2,990,000 830,000
G.O. TIF Bonds, Series 2007A 7/15/17 2/1/24 4.00% - 4.125% 4,215,000 2,025,000
G.O. Refunding Bonds, Series 2012A 11/15/12 2/1/24 1.00% - 2.00% 2,015,000 1,495,000
G.O. Bonds 2015A 8/1/15 2/1/31 2.00% - 3.00% 3,095,000 3,095,000
EDA Lease Revenue Bonds 2015B 10/1/15 4/1/36 2.00% - 3.00% 4,350,000 4,350,000
G.O. Utility Revenue Bonds, Series 2016A 11/23/16 2/1/27 2.00% 1,420,000 1,420,000
G.O. Tax Abatement Refunding Bonds 2016C 11/23/16 2/1/23 1.00% - 1.50% 1,600,000 1,600,000
Total General Obligation Bonds 24,840,250 18,196,250
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2005A 11/1/05 2/1/17 4.35% - 5.15% 5,550,000 2,360,000
G.O. Imp & Utility Revenue Bonds, Series 2010A 7/9/10 2/1/20 2.00% - 3.00% 1,000,000 425,000
G.O. Improvement Bonds, Series, 2013A 7/15/13 2/1/24 1.25% - 4.00% 615,000 495,000
G.O. Improvement Bonds, Series 2014A 11/20/14 2/1/26 0.40% - 2.30% 2,645,000 2,540,000
G.O. Improvement Refunding Bonds, Series 2016B 11/23/16 2/1/21 0.875% - 1.50% 1,975,000 1,975,000
Total Special Assessment Bonds 11,785,000 7,795,000
G.O. Improvement Note, Series 2009A 8/1/09 8/1/20 3.70% - 4.00% 4,260,000 1,345,000
G.O. Capital Note, Series 2016A 4/14/16 2/1/26 2.00%294,525 264,000
Unamortized bond premiums 199,750 166,322
Unamortized bond discounts (51,997) (25,491)
Compensated absences payable N/A 734,415
Total Government Activities $41,327,528 $28,475,496
Business-Type Activities:
Compensated absences payable N/A $66,390
60
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2016:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:
General obligation bonds $16,406,250 $3,489,000 $1,699,000 $18,196,250 $3,793,000
Special assessment bonds 6,485,000 1,975,000 665,000 7,795,000 2,890,000
Total bonded debt 22,891,250 5,464,000 2,364,000 25,991,250 6,683,000
Improvement note 1,720,000 - 375,000 1,345,000 390,000
Capital note - 294,525 30,525 264,000 30,525
Unamortized bond premiums 135,130 41,497 10,305 166,322 -
Unamortized bond discounts (29,089) - (3,598) (25,491) -
Compensated absences payable 688,905 587,725 542,215 734,415 467,558
Total governmental activities $25,406,196 $6,387,747 $3,318,447 $28,475,496 $7,571,083
Business-Type Activities:
Compensated absences payable $64,184 $45,352 $43,146 $152,682 $34,786
DESCRIPTIONS OF LONG-TERM DEBT
General Obligation Bonds – The bonds were issued for improvements or projects which benefited the City as a
whole and, therefore, are repaid from ad valorem levies.
Special Assessment Bonds – The 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.
Improvement Note – This note was used to finance improvement projects at the I-35E and County Road 14
interchange and will be repaid primarily with special assessments levied on the properties benefiting from the
improvements.
Capital Note – This note was issued to fund the cost of the acquisition of capital equipment to be used by the
North Metro Telecommunications Commission in the operation of a cable communications system. The note
will be repaid from franchise fee revenue.
Utility 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.
61
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
DEBT SERVICE REQUIREMENTS
Future principal and interest payments required to retire long-term debt are as follows:
Years Ending
December 31 Principal Interest Principal Interest Principal Interest
2017 $6,683,000 $548,591 $390,000 $60,165 $30,525 $5,280
2018 2,997,250 412,227 405,000 49,565 31,350 4,670
2019 2,575,000 363,206 420,000 42,415 32,175 4,042
2020 2,401,000 319,761 130,000 13,360 33,000 3,399
2021 2,150,000 274,974 - - 33,000 2,739
2022-2026 5,520,000 869,102 - - 103,950 4,191
2027-2031 2,315,000 423,581 - - - -
2032-2036 1,350,000 138,062 - - - -
Total $25,991,250 $3,349,504 $1,345,000 $165,505 $264,000 $24,321
Bonded Debt Improvement Note Capital Note
It is not practicable to determine the specific year for payment of long-term compensated absences payable. For
governmental activities, compensated absences are liquidated by the General Fund. For business-type activities,
compensated absences are liquidated by the Water and Sewer Funds.
DEFERRED AD VALOREM TAX LEVIES – BONDED DEBT
All long-term bonded indebtedness is backed by the full faith and credit of the City, including special assessment
and revenue bond issues. General Obligation bond issues are financed by ad valorem tax levies and special
assessment bond issues 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.
The future scheduled tax levies are not shown as assets in the accompanying financial statements. Future
scheduled tax levies for all bonds outstanding at December 31, 2016 totaled $14,800,989.
CURRENT REFUNDINGS
On November 23, 2016, the City issued $1,975,000 of Taxable General Obligation Improvement Refunding
Bonds, Series 2016B with an average interest rate of 1.29%. On February 1, 2017, the net proceeds will be used
to redeem the 2018 through 2021 maturities of the Taxable General Obligation Improvement Bonds, Series
2005A with interest rates of 5.00% - 5.15%. The City refunded the bonds to reduce its total debt service
payments over four years by $145,931 and to obtain an economic gain (difference between the present value of
the debt service payments on the old and new debt) of $130,682.
On November 23, 2016, the City issued $1,600,000 of General Obligation Tax Abatement Refunding Bonds,
Series 2016C with an average interest rate of 1.34%. On February 1, 2017, the net proceeds will be used to
redeem the 2018 through 2023 maturities of the General Obligation Tax Abatement Bonds, Series 2006C with
interest rates of 4.25% - 4.30%. The City refunded the bonds to reduce its total debt service payments over six
62
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
years by $133,718 and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $124,952.
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Remaining Principal Pledged
Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Pledge and Interest Paid Received
2006D Utility Revenue Bonds Water infrastructure improvements 2007 - 2016 $71,453 $69,254 $69,254
2009A Improvement Note Infrastructure improvements Special assessments 2010 - 2020 $1,510,505 $435,165 $128,803
2011 - 2020 $451,175 $114,250 $60,435
2013A Improvement Bonds Infrastructure improvements Special assessments 2014 - 2023 $569,940 $76,815 $37,946
2014A Improvement Bonds Infrastructure improvements Special assessments 2015 - 2025 $2,696,724 $138,543 $863,193
2016A Capital Note Cable communications equipment Franchise fees 2016 - 2025 $288,321 $41,112 $42,932
2016A Utility Revenue Bonds Water infrastructure improvements 2017 - 2026 $1,584,864 $ - $ -
2016B Improvement Bonds Special assessments 2017 - 2020 $2,044,357 $ - $ -
Revenue Pledged Current Year
Infrastructure improvements - refunded
the 2005A Imp Bonds
Water usage charges via
transfers
2010A Improvement and Utility
Revenue Bonds
General and water infrastructure
improvements
Special assessments and
trunk charges
Trunk utility charges via
transfers
Note 7 CONDUIT DEBT
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide
financial assistance to private-sector entities for the acquisition and construction of industrial and commercial
facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are
payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of
the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in
any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. As of December 31, 2016, one series of Industrial Revenue Bonds was
outstanding with an aggregate remaining principal balance of $180,000, and one series of Commercial Revenue
Notes was outstanding with an aggregate remaining principal balance of $1,379,480.
63
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 8 DEFINED BENEFIT PENSION PLANS – PERA
A. 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.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) 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 1, 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.
B. 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% 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 1% 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.
1. GERF Benefits
Benefits are based on a member’s highest 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 1) or a level accrual formula (Method 2). Under Method 1,
the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten
years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan
member is 1.2% of average salary for each of the first ten years and 1.7% for each remaining year.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and
1.7% for Coordinated Plan members for each year of service. For members hire prior to July 1,
1989, a full annuity is available when age plus years of service equal 90 and normal retirement age
is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced
Social Security benefits capped at 66.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits
for PEPFF members first hired after June 30, 2014, vest on a prorated bases from 50% after ten
years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average
salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
1. GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.5%,
respectively, of their annual covered salary in calendar year 2016. The City was required to
contribute 11.78% of pay for Basic Plan members and 7.5% for Coordinated Plan members in
calendar year 2016. The City contributions to the GERF for the year ended December 31, 2016
were $193,684. 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
2016. The City was required to contribute 16.2% of pay for PEPFF members in calendar year
2016. The City contributions to the PEPFF for the year ended December 31, 2016 were $424,970.
The City contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2016, the City reported a liability of $3,142,248 for its proportionate share of
GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State
of Minnesota’s contribution of $6 million to the fund in 2016. The State of Minnesota is
considered a non-employer contributing entity and the state’s contribution meets the definition of a
special funding situation. The State of Minnesota’s proportionate share of the net pension liability
associated with the City totaled $41,033. The net pension liability was measured as of June 30,
2016, and the total pension liability used to calculate the net pension liability was determined by an
65
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2015 through June 30, 2016, relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2016, the City’s proportionate
share was 0.0387%, which was a decrease of 0.0023% from its proportionate share measured as of
June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $394,752 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$12,235 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $6 million to the GERF.
At December 31, 2016, 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 Resources of Resources
Differences between expected and
actual economic experience $ - $255,261
Changes in actuarial assumptions 615,255 -
Difference between projected and
actual investment earnings 596,412 -
Changes in proportion - 137,116
Contributions paid to PERA
subsequent to the measurement date 103,199 -
Total $1,314,866 $392,377
$103,199 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 during 2017. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2017 $215,416
2018 215,415
2019 274,957
2020 113,502
2021 -
Thereafter -
2. PEPFF Pension Costs
At December 31, 2016, the City reported a liability of $10,394,121 for its proportionate share of
the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2016 and
the total pension liability used to calculate the net pension liability was determined by an actuarial
66
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
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, 2015 through June 30, 2016, relative to the total employer contributions received from
all of PERA’s participating employers. At June 30, 2016, the City’s proportion was 0.259%, which
was an increase of 0.010% from its proportion measured as of June 30, 2015. The City also
recognized $23,310 for the year ended December 31, 2016 as revenue (and an offsetting reduction
of net pension liability) 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.
For the year ended December 31, 2016, the City recognized pension expense of $1,818,967 for its
proportionate share of the PEPFF’s pension expense.
At December 31, 2016, 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:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $ - $1,192,403
Changes in actuarial assumptions 5,720,339 -
Difference between projected and
actual investment earnings 1,586,216 -
Changes in proportion 93,543 -
Contributions paid to PERA
subsequent to the measurement date 233,671 -
Total $7,633,769 $1,192,403
A total of $233,671 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 during 2017. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as outflows:
Year Ended Pension
December 31, Expense
2017 $1,333,808
2018 1,333,808
2019 1,333,810
2020 1,205,619
2021 1,000,650
Thereafter -
The net pension liability will be liquidated by the general, water and sewer funds.
67
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active member payroll growth 3.25% per year
Investment rate of return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP-2014 tables for the GERF and RP-2000 tables for the
PEPFF for males or females, as appropriate, with slight adjustments. Cost of living benefit increases
for retirees are assumed to be 1% for all future years for the GERF and PEPFF.
Actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the GERF was completed in 2015.
The experience study for PEPFF was for the period July 1, 2004 through June 30, 2009.
The following changes in actuarial assumptions occurred in 2016:
General Employees Retirement Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Public Employees Police and Fire Fund
The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
68
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The long-term expected rate of return on pension plan investments is 7.5%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return using a building-block method in which best-
estimate ranges of expected future rates of return are developed for each major asset class. These
ranges are combined 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
geometric real rates of return for each major asset are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic stocks 45% 5.50%
International stocks 15% 6.00%
Bonds 18% 1.45%
Alternative assets 20%6.40%
Cash 2%0.50%
Totals 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%, a reduction from the 7.9% used
in 2015. The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and employees will be made at the rate set in Minnesota statutes. Based on that
assumption, the fiduciary net position of the GERF was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
In the PEPFF, the fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members through June 30, 2056. Beginning in fiscal years ended June
30, 2057 for the PEPFF, when projected benefit payments exceed the funds’ projected fiduciary net
position, benefit payments were discounted at the municipal bond rate of 2.85% based on an index of
20-year general obligation bonds with an average AA credit rating at the measurement date. An
equivalent single discount rate of 5.60% for the PEPFF was determined that produced approximately
the same present value of projected benefits when applied to all years of projected benefits as the
present value of projected benefits using 7.50% applied to all years of projected benefits through the
point of assent depletion and 2.85% after.
69
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using 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 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability $4,462,923 $3,142,248 $2,054,371
1% Decrease in 1% Increase in
Discount Rate (4.6%) Discount Rate (5.6%) Discount Rate (6.6%)
City's proportionate share of the
PEPFF net pension liability $14,550,389 $10,394,121 $6,998,133
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2016 is as follows:
GERF $406,987
PEPFF 1,818,967
Fire Relief (Note 9)66,668
Total $2,292,622
70
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 9 DEFINED BENEFIT PENSION PLAN – FIRE DIVISION
A. PLAN DESCRIPTION
The Lino Lakes Public Safety Department – Fire Division participates in the Statewide Volunteer
Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan
covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting
corporations that have elected to join the plan. As of December 31, 2016 (measurement date), the plan
covered 19 active firefighters and zero vested terminated fire fighters whose pension benefits are
deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter
353G.
B. BENEFITS PROVIDED
The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and
survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per
year of service approved by the City of Lino Lakes. The benefit is selected from 71 possible levels of
$100 increments ranging from $500 to $7,500 per year of service. Members are eligible for a lump-
sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated
vesting schedule that increases from 5 years at 40% through 20 years at 100%.
C. CONTRIBUTIONS
The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as
specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed
$0 in fire state aid to the plan for the year ended December 31, 2016. The City recognized $66,668 as
pension expense for its proportionate share of the State of Minnesota’s on-behalf contributions to the
SVF. Required employer contributions are calculated annually based on statutory provisions. The
City’s statutorily-required contributions to the SVF plan for the year ended December 31, 2016 were
$0. The City’s contributions were equal to the required contributions as set by state statute, if
applicable. In addition, the City made voluntary contributions of $44,394 to the plan.
71
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. PENSION COSTS
At December 31, 2016, the City reported a net pension liability of $10,713 for the SVF plan. The net
pension liability was measured as of December 31, 2016. The total pension liability used to calculate
the net pension liability in accordance with GASB 68 was determined by PERA applying an actuarial
formula to specific census data certified by the fire department as of December 31, 2016. The
following table presents the changes in net pension liability during the year.
Plan Net
Total Fiduciary Pension
Pension Net Liability
Liability Position (Asset)
(a)(b)(a-b)
Beginning balance December 31, 2015 $21,057 $ - $21,057
Changes for the year:
Service cost 38,419 - 38,419
Interest on pension liability 3,568 - 3,568
Actuarial experience (gains) / losses (7,804) - (7,804)
Projected investment earnings - - -
Contributions - employer - 44,394 (44,394)
Contributions - State of MN - - -
Asset (gain) / loss - 133 (133)
Benefit payouts - - -
PERA administrative fee - - -
Net changes 34,183 44,527 (10,344)
Balance end of year December 31, 2016 $55,240 $44,527 $10,713
There were no provision changes during the measurement period.
For the year ended December 31, 2016, the City recognized pension expense of $66,668.
At December 31, 2016, the City reported deferred inflows of resources from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between projected and
actual investment earnings $ - $106
Differences between expected and
actual economic experience - 11,455
Total $ - $11,561
72
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year Ended Pension
December 31, Expense
2017 ($3,325)
2018 (3,325)
2019 (3,326)
2020 (1,585)
2021 -
Thereafter -
E. ACTUARIAL ASSUMPTIONS
The total pension liability at December 31, 2016, was determined using the entry age normal actuarial
cost method and the following actuarial assumptions:
Retirement eligibility at the later of age 50 or 20 years of service
Investment rate of return of 6.0%
Inflation rate of 3.0%
There were no changes in actuarial assumptions in 2016.
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows
used to determine the discount rate assumed that contributions to the SVF plan will be made as
specified in statute. Based on that assumption and considering the funding ratio of the plan, the
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s net pension liability for the SVF plan, calculated using the discount
rate disclosed in the preceding paragraph, as well as what the City’s net pension liability would be if it
were calculated using a discount rate 1% lower or 1% higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (5.0%) Discount Rate (6.0%) Discount Rate (7.0%)
Net pension liability $16,471 $10,713 $5,405
73
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
H. PLAN INVESTMENTS
1. Investment Policy
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota
Constitution to invest all state funds. Its membership as specified in the Constitution is comprised
of the Governor (who is designated as chair of the Board), State Auditor, Secretary of State and
State Attorney General.
All investments undertaken by the SBI are governed by the prudent person rule and other standards
codified in Minnesota Statutes, Chapter 11A and Chapter 356A.
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the
Investment Advisory Council, establishes investment policies for all funds under its control. These
investment policies are tailored to the particular needs of each fund and specify investment
objectives, risk tolerance, asset allocation, investment management structure and specific
performance standards. Studies guide the on-going management of the funds and are updated
periodically.
2. Asset Allocation
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset
allocation for the Statewide Volunteer Firefighter Retirement Plan (VOLP) that includes
allocations to domestic equity, international equity, bonds and cash equivalents. The long-term
target asset allocation and long-term expected real rate of return is the following:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic Stocks 35% 5.50%
International Stocks 15% 6.00%
Bonds 45% 1.45%
Cash 5% 0.50%
100%
The 6% long-term expected rate of return on pension plan investments was determined using a
building-block method. Best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using both long-term historical returns and
long-term capital market expectations. The asset class estimates and the target allocations were
then combined to produce a geometric, long-term expected real rate of return for the portfolio.
Inflation expectations were applied to derive the nominal rate of return for the portfolio.
3. Description of significant investment policy changes during the year
The SBI made no significant changes to their investment policy during fiscal year 2016 for the
Statewide Volunteer Firefighter Retirement Plan.
74
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the SVF plan’s fiduciary net position as of December 31, 2016 is available
in a separately-issued PERA financial report that includes financial statements and required
supplementary information. That report may be obtained at www.mnpera.org.
Note 10 OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8 and 9, the City provides post-
employment health care benefits (as defined in paragraph B) for retired employees through a single-
employer defined benefit plan. The City’s OPEB plan is administered by the City. The authority to
provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465.
The benefits, benefit levels, employee contributions and employer contributions are governed by the
City and can be amended by the City through its personnel manual and collective bargaining
agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust
has not been established to account for the plan. The Plan does not issue a separate report.
B. BENEFITS PROVIDED
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. 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.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in
which they participate. The premium is a blended rate determined on the entire active and retiree
population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those
afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer
and the City’s plan becomes secondary.
C. PARTICIPANTS
As of the January 1, 2014 actuarial valuation, participants of the plan consisted of 48 active employees
and 6 retirees and beneficiaries purchasing health insurance coverage through the City. The number of
employers participating in the plan was one.
75
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-
go basis. The City Council may change the funding policy at any time.
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City’s annual OPEB cost is calculated based on the annual required contribution (ARC) of the
employer, an amount actuarially determined in accordance with the parameters of GASB Statement No.
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 (or funding excess) over a period
not to exceed 30 years. The net OPEB obligation as of December 31, 2016, was calculated as follows:
Annual required contribution (ARC)$31,590
Interest on net OPEB obligation 974
Adjustment to Annual Required Contribution (3,756)
Annual OPEB cost (expense)28,808
Contributions made 22,513
Increase in net OPEB obligation 6,295
Net OPEB obligation - beginning of year 90,852
Net OPEB obligation - end of year $97,147
The net OPEB obligation is generally liquidated by the General Fund.
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
Percentage of
Fiscal Year Annual OPEB Employer Annual OPEB Cost Net OPEB
Ended Cost Contributions Contributed Obligation
December 31, 2014 $26,468 $36,109 136.4% $91,023
December 31, 2015 28,814 28,984 100.6% 90,852
December 31, 2016 28,808 22,513 78.1% 97,147
F. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 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 of UAAL to covered payroll ratio of 10.4%.
76
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
G. ACTUARIAL METHODS AND ASSUMPTIONS
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 the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) 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 financial statements, presents multi-year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
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 effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 1% investment rate of return (net of administrative expenses), which is a
blended rate of the expected long-term investment returns on plan assets and on the employer's own
investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend
rate was 8%, decreasing to an ultimate rate of 3% after six years. These rates include a 3% inflation rate. The
UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining
amortization period at December 31, 2016 was 30 years.
Note 11 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. DEFECIT FUND BALANCES
The City has deficit fund balances at December 31, 2016 as follows:
Fund Balance
Deficit
Nonmajor Governmental Funds:
G.O. Utility Revenue Bonds of 2016A ($450)
G.O. Improvement Bonds of 2016B (450)
G.O. Tax Abatement Bonds of 2016C (450)
Tax Increment Financing 1-11 (774,983)
21st Ave Extension (119,634)
Fire House #2 Construction (2,324)
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
77
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of expenditure categories within the General Fund that exceed budget
appropriations:
Final
Budget Actual Overage
General governmant:
Elections $28,504 $28,512 $8
Engineering/planning 105,276 117,744 12,468
Government buildings 506,820 528,723 21,903
Public safety:
Police 3,521,366 3,584,901 63,535
Conservation of natural resources:
Forestry 52,380 54,176 1,796
Solid waste abatement 79,909 81,402 1,493
Community development:
Economic development 102,350 102,816 466
Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final
budgeted expenditures by $33,062.
Note 12 INTERFUND RECEIVABLES AND PAYABLES
The City provides temporary advances to funds that have insufficient cash balances by means of an advance
from another fund. A summary of such advances as of December 31, 2016 is as follows:
Receivable Payable
Nonmajor Funds:
G.O. Utility Revenue Bonds of 2016A $ - $450
G.O. Improvement Bonds of 2016B - 450
G.O. Tax Abatement Bonds of 2016C - 450
Closed Bond Fund 1,350 -
$1,350 $1,350
78
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Long-term interfund loans are classified as interfund loan receivable/payable. A summary of such loans as of
December 31, 2016 is as follows:
Receivable Payable
Major Funds:
G.O. Improvement Bonds of 2005A $ - $2,876,643
Area and Unit Charge 194,525 -
Sewer Fund 559,110 -
Nonmajor Funds:
G.O. Improvement Bonds of 2014A 199,452 -
Closed Bond Fund 773,018 -
Building and Facilities 2,317,533 -
Dedicated Parks - 194,525
Tax Increment Financing 1-11 - 773,018
21st Avenue Extension - 199,452
$4,043,638 $4,043,638
Note 13 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2016 are as follows:
Transfer In Transfer Out
Major Funds:
General Fund $488,084 $691,439
G.O. Improvement Bonds of 2005A 152,784 -
G.O. Improvement Note of 2009A 309,000 -
Area and Unit Charge 1,001 315,044
Water Fund - 34,627
Sewer Fund - 244,594
Nonmajor governmental funds 2,570,311 2,235,476
Total $3,521,180 $3,521,180
During 2016, transfers were made to provide funding for capital improvement projects and capital outlay in
accordance with the City’s capital improvement plan. Transfers were also made to provide resources for debt
service payments, to close capital project funds, and to allocate financial resources to funds that received benefit
from services provided by another fund. These transfers are routine and consistent with past practices.
79
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 14 FUND BALANCE
At December 31, 2016, a summary of the governmental fund balance classifications is as follows:
G.O.G.O.Other
General Improvement Improvement Area and Governmental
Fund Bonds of 2005A Note of 2009A Unit Charge Funds Total
Nonspendable:
Prepaid items $225,114 $ - $ - $ - $1,220 $226,334
Corpus of permanent fund - - - - 100,000 100,000
Total nonspendable 225,114 - - - 101,220 326,334
Restricted for:
Debt service - 226,135 22 - 5,514,718 5,740,875
Economic development - - - - 225,000 225,000
Blue Heron Days - - - - 11,619 11,619
Narcotics and forfeiture funds - - - - 73,049 73,049
Tax increment purposes - - - - 438,026 438,026
Environmental purposes - - - - 13,855 13,855
Total restricted - 226,135 22 - 6,276,267 6,502,424
Committed for:
Cable TV purposes - - - - 134,072 134,072
Recreation purposes - - - - 36,878 36,878
Total committed - - - - 170,950 170,950
Assigned for:
Capital improvements - - - 6,266,200 9,512,280 15,778,480
Unassigned 6,031,077 - - - (978,496) 5,052,581
Total fund balance $6,256,191 $226,135 $22 $6,266,200 $15,082,221 $27,830,769
Note 15 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of
$4,744,742 and a net book value of $1,963,326, to New Creations Child Care and Learning Center, LLC. The lease is
dated July 1, 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.
Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows:
Year Ending
December 31, Amount
2017 $75,617
2018 77,901
2019 39,522
$193,040
80
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 16 TAX INCREMENT DISTRICTS
The City is the administrating authority for three tax increment districts. The City’s tax increment districts are
subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse
of tax increments could become a liability of the applicable fund. Management has indicated that they are not
aware of any instances of noncompliance which could have a material effect on the financial statements.
The following table reflects values as of December 31, 2016:
TIF 1-5 TIF 1-11
Cottage TIF 1-10 Woods
Homesteads Panattoni Edge
Authorizing law M.S. 469 M.S. 469 M.S. 469
Year established 1994 2004 2005
Final year of district 2022 2023 2031
Net tax capacity:
Original $128 $15,869 $7,241
Current (payable 2016)30,079 218,452 116,280
Captured - retained $29,951 $202,583 $109,039
Note 17 COMMITMENTS AND CONTINGENCIES
A. LITIGATION
Existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance, of an immaterial amount, or, in the judgment of the City’s management, remotely
recoverable by plaintiffs.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2016.
81
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
C. COMMITTED CONTRACTS
At December 31, 2016, the City had commitments of $379,727 for uncompleted construction contracts.
Note 18 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors
and omissions, injuries to employees and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The
City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed
necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various
amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from
the insurance policies. These amounts are considered immaterial to the financial statements.
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 19 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements:
Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not
within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and
68. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 – except
those provisions that address employers and governmental nonemployer contributing entities for pensions
that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15,
2016.
Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The
provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016.
Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
82
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Statement No. 80 Blending Requirements for Certain Component Units. The provisions of this Statement
are effective for reporting periods beginning after June 15, 2016.
Statement No. 81 Irrevocable Split-Interest Agreements. The provisions of this Statement are effective for
reporting periods beginning after December 15, 2016.
Statement No. 82 Pension Issues – an amendment of GASB Statement No. 67, No. 68 and No. 73. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2016, except for the
requirements of this Statement for the selection of assumptions in a circumstance in which an employer’s
pension liability is measured as of a date other than the employer’s most recent fiscal year-end. In that
circumstance, the requirements for the selection of assumptions are effective for that employer in the first
reporting period in which the measurement date of the pension liability is on or after June 15, 2017.
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2017.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 75 will have a material impact.
Note 20 SPECIAL ITEM
Effective January 27, 2016, the City formally withdrew from the Centennial Fire District, which was a joint
venture among the City of Lino Lakes and two other cities. The City created its own fire department which
began operations in January 2016. Pursuant to the terms of the joint powers agreement, the City received its
proportionate share of the Centennial Fire District’s cash and firefighting equipment. The transaction is
recorded as a special item in the amount of $1,111,834 (cash received) in the statement of revenues,
expenditures and changes in fund balance, and as a special item in the amount of $1,333,166 (cash plus value of
equipment received) in the Statement of Activities. No other assets or liabilities were transferred.
83
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 21 PRIOR PERIOD ADJUSTMENT
During 2016, it was determined that the allocation of the net pension liability and related deferred inflows and outflows
of resources between governmental activities and business-type activities was incorrect as of December 31, 2015. As a
result, net position as of January 1, 2016 has been restated as follows:
Governmental Water Sewer
Activities Fund Fund Total
Net position - January 1, as previously reported $40,754,159 $20,401,628 $23,398,831 $84,554,618
Prior period adjustment 177,446 (88,703) (88,743) -
Net position - January 1, as restated $40,931,605 $20,312,925 $23,310,088 $84,554,618
Business-type Activities
84
REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Revenues:
General propery taxes:
Current and delinquent $7,108,572 $6,026,378 $6,100,460 $74,082
Fiscal disparities - 1,042,194 928,588 (113,606)
Excess tax increments - 8,000 8,548 548
Total general property taxes 7,108,572 7,076,572 7,037,596 (38,976)
Licenses and permits:
Business 103,300 120,300 136,363 16,063
Non-business 388,683 629,020 759,218 130,198
Total licenses and permits 491,983 749,320 895,581 146,261
Intergovernmental:
State:
Police state aid 190,000 208,500 208,848 348
OTS grant 110,000 110,000 85,385 (24,615)
MSA maintenance 261,000 253,500 253,523 23
Other 19,000 19,000 20,950 1,950
County solid waste grant 75,000 75,000 85,741 10,741
Total intergovernmental 655,000 666,000 654,447 (11,553)
Special assessments 15,000 10,000 4,618 (5,382)
Charges for services:
General government 9,850 9,850 18,508 8,658
Engineering and planning fees 15,000 30,000 35,933 5,933
Public safety 211,200 191,200 212,192 20,992
Public services 25,500 25,500 26,057 557
Investment management charge to other funds 50,000 50,000 50,000 -
Total charges for services 311,550 306,550 342,690 36,140
Fines and forfeits 150,500 200,500 220,905 20,405
Investment earnings 30,000 30,000 37,887 7,887
Net increase in fair value of investments - - 2,553 2,553
Miscellaneous:
Gas franchise fees 50,000 50,000 43,563 (6,437)
Building lease revenue 124,805 104,805 97,873 (6,932)
Refunds and reimbursements 30,000 30,000 71,985 41,985
Donations 5,000 5,000 300 (4,700)
Other 3,000 3,000 7,313 4,313
Total miscellaneous 212,805 192,805 221,034 28,229
Total revenues 8,975,410 9,231,747 9,417,311 185,564
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services 40,638 40,638 39,131 1,507
Other services and charges 16,500 13,800 13,017 783
Contractual services 16,500 17,250 17,139 111
Total mayor and city council 73,638 71,688 69,287 2,401
Elections:
Current:
Personal services 20,604 20,604 21,738 (1,134)
Supplies 800 800 962 (162)
Other services and charges 2,200 2,200 502 1,698
Contractual services 300 300 727 (427)
Capital Outlay 4,600 4,600 4,583 17
Total elections 28,504 28,504 28,512 (8)
Administration:
Current:
Personal services 484,235 460,912 432,492 28,420
Other services and charges 26,360 17,860 11,961 5,899
Contractual services 8,000 23,000 21,057 1,943
Total administration 518,595 501,772 465,510 36,262
Finance:
Current:
Personal services 273,590 273,590 289,955 (16,365)
Supplies 900 900 856 44
Other services and charges 146,720 146,720 115,721 30,999
Contractual services 100,900 100,900 100,570 330
Total finance 522,110 522,110 507,102 15,008
Cable TV:
Current:
Personal services 2,340 2,340 2,364 (24)
Capital outlay 500 500 - 500
Total cable TV 2,840 2,840 2,364 476
Legal consultants:
Current:
Contractual services 140,000 140,000 121,608 18,392
87
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
General government: (continued)
Engineering/planning:
Current:
Contractual services 105,276 105,276 117,744 (12,468)
Charter commission:
Current:
Other services and charges 2,500 1,500 1,076 424
Government buildings:
Current:
Personal services 2,167 2,167 2,374 (207)
Supplies 46,400 66,400 72,739 (6,339)
Other services and charges 359,253 369,253 382,051 (12,798)
Contractual services 79,000 69,000 71,559 (2,559)
Total government buildings 486,820 506,820 528,723 (21,903)
Total general government 1,880,283 1,880,510 1,841,926 38,584
Public safety:
Police:
Current:
Personal services 3,356,407 3,321,066 3,387,001 (65,935)
Supplies 32,100 32,100 28,810 3,290
Other services and charges 95,400 95,400 95,417 (17)
Contractual services 43,600 43,600 47,459 (3,859)
Capital outlay 29,200 29,200 26,214 2,986
Total police 3,556,707 3,521,366 3,584,901 (63,535)
Fire protection:
Current:
Personal services 513,086 494,160 456,706 37,454
Supplies 12,750 12,750 9,277 3,473
Other services and charges 38,500 33,500 26,188 7,312
Contractual services 20,980 59,380 57,795 1,585
Capital outlay 27,000 27,000 20,185 6,815
Total fire protection 612,316 626,790 570,151 56,639
Building inspection:
Current:
Personal services 227,454 202,018 199,092 2,926
Supplies 1,650 1,650 1,360 290
Other services and charges 8,060 8,060 6,337 1,723
Contractual services 1,000 3,500 2,888 612
Total building inspection 238,164 215,228 209,677 5,551
Total public safety 4,407,187 4,363,384 4,364,729 (1,345)
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Public services:
Streets:
Current:
Personal services 540,201 538,201 534,749 3,452
Supplies 159,000 152,000 173,457 (21,457)
Other services and charges 109,600 107,600 110,550 (2,950)
Contractual services 198,000 77,275 55,860 21,415
Total streets 1,006,801 875,076 874,616 460
Fleet:
Current:
Personal services 113,983 113,983 114,930 (947)
Supplies 234,000 203,000 156,889 46,111
Other services and charges 66,880 53,380 44,903 8,477
Contractual services 32,000 77,000 97,413 (20,413)
Capital outlay - - 259 (259)
Total fleet 446,863 447,363 414,394 32,969
Parks:
Current:
Personal services 464,769 464,769 468,933 (4,164)
Supplies 26,500 26,500 31,126 (4,626)
Other services and charges 40,650 35,650 54,418 (18,768)
Contractual services 55,700 55,700 27,917 27,783
Total parks 587,619 582,619 582,394 225
Recreation:
Current:
Personal services 212,327 212,327 204,022 8,305
Supplies 2,500 2,500 656 1,844
Other services and charges 14,750 13,950 18,070 (4,120)
Contractual services 400 400 860 (460)
Total recreation 229,977 229,177 223,608 5,569
Total public services 2,271,260 2,134,235 2,095,012 39,223
89
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REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Conservation of natural resources:
Forestry:
Current:
Personal services 36,250 36,250 36,032 218
Supplies 750 750 750 -
Other services and charges 380 380 380 -
Contractual services 10,000 10,000 11,986 (1,986)
Capital outlay 5,000 5,000 5,028 (28)
Total forestry 52,380 52,380 54,176 (1,796)
Environmental:
Current:
Personal services 53,662 43,662 40,406 3,256
Supplies 1,000 1,000 130 870
Other services and charges 7,050 7,050 6,066 984
Contractual services 1,200 1,200 33 1,167
Total environmental 62,912 52,912 46,635 6,277
Solid waste abatement:
Current:
Personal services 53,909 53,909 49,408 4,501
Supplies - - 153 (153)
Other services and charges 11,500 11,500 13,025 (1,525)
Contractual services 6,000 6,000 18,816 (12,816)
Capital outlay 8,500 8,500 - 8,500
Total solid waste abatement 79,909 79,909 81,402 (1,493)
Total conservation of natural resources 195,201 185,201 182,213 2,988
Community development:
Community development:
Current:
Personal services 200,548 200,548 194,773 5,775
Supplies 100 100 29 71
Other services and charges 8,150 8,150 8,707 (557)
Contractual services 1,400 1,400 875 525
Total community development 210,198 210,198 204,384 5,814
Economic development:
Current:
Personal services 21,637 15,850 16,194 (344)
Other services and charges 79,100 86,100 86,222 (122)
Contractual services 400 400 400 -
Total economic development 101,137 102,350 102,816 (466)
90
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Planning and zoning commission:
Current:
Personal services 91,628 91,628 95,438 (3,810)
Supplies 200 200 - 200
Other services and charges 14,150 14,150 12,353 1,797
Contractual services 40,250 37,750 5,307 32,443
Total planning and zoning commission 146,228 143,728 113,098 30,630
Total community development 457,563 456,276 420,298 35,978
Other:
Contingency 125,500 - - -
Total expenditures 9,336,994 9,019,606 8,904,178 115,428
Revenues over (under) expenditures (361,584) 212,141 513,133 300,992
Other financing sources (uses):
Transfers in 478,084 478,084 488,084 10,000
Transfers out (539,500) (690,225) (691,439) (1,214)
Total other financing sources (uses) (61,416) (212,141) (203,355) 8,786
Net change in fund balance ($423,000) $0 309,778 $309,778
Fund balance - January 1 5,946,413
Fund balance - December 31 $6,256,191
91
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2016
Unfunded
Actuarial Actuarial Actuarial UAAL as a
Actuarial Value of Accrued Accrued Funded Covered Percentage of
Valuation Assets Liability (AAL) Liability (UAAL) Ratio Payroll Covered Payroll
Date (a)(b)(b-a)(a/b)(c) ( (b-a) / c)
January 1, 2008 $0 $329,191 $329,191 0.0% $4,859,980 6.8%
January 1, 2011 $0 $474,770 $474,770 0.0% $4,888,702 9.7%
January 1, 2014 $0 $547,626 $547,626 0.0% $5,265,020 10.4%
92
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
City's City's
Proportionate Proportionate Plan
State's Share of the Share of the Fiduciary
Proportionate Net Pension Net Net
Share Liability Pension Position
City's City's (Amount) and the State's Liability as a
Proportionate Proportionate of the Net Proportionate as a Percentage
Share Share (Amount) Pension Share of the Net Percentage of the
(Percentage) of of the Net Liability Pension Liability of its Total
Measurement Fiscal Year the Net Pension Pension Associated Associated with Covered Covered Pension
Date Ending Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability
June 30, 2015 December 31, 2015 0.0410% $2,124,883 $ - $2,124,883 $2,407,426 88.3% 78.2%
June 30, 2016 December 31, 2016 0.0387% 3,142,248 41,033 3,183,281 2,401,546 132.6% 68.9%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
93
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered
Ending (a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015 $182,102 $182,102 $ - $2,428,027 7.5%
December 31, 2016 193,684 193,684 - 2,582,452 7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
94
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Proportionate Share
Proportionate of the Net Pension Plan Fiduciary
Proportion Share (Amount) Liability as a Net Position as
(Percentage) of of the Net Percentage of its a Percentage
Measurement Fiscal Year the Net Pension Pension Covered Covered of the Total
Date Ending Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
June 30, 2015 December 31, 2015 0.2490%$2,829,223 $2,284,973 123.8%86.6%
June 30, 2016 December 31, 2016 0.2590%10,394,121 2,495,778 416.5%63.9%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
95
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered
Ending (a)Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2015 $393,551 $393,551 $ - $2,429,327 16.2%
December 31, 2016 424,970 424,970 - 2,623,271 16.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
96
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2016
Fiscal year ending and measurement date December 31, 2016
Total pension liability:
Service cost $38,419
Interest on pension liability 3,568
Changes of benefit terms -
Differences between expected and actual experience (7,804)
Changes of assumptions -
Benefit payments, including refunds of employee contributions -
Net change in total pension liability 34,183
Total pension liability - beginning 21,057
Total pension liability - ending (a)$55,240
Plan fiduciary net position:
Contributions - employer $44,394
Contributions - State of Minnesota -
Net investment income 133
Benefit payments, including refunds of employee contributions -
Administrative expense -
Other -
Net change in plan fiduciary net position 44,527
Plan fiduciary net position - beginning -
Plan fiduciary net position - ending (b)$44,527
Net pension liability/(asset) - ending (a) - (b)$10,713
Plan fiduciary net position as a percentage of the total pension liability 80.61%
Covered payroll N/A
Net pension liability as a percentage of covered employee payroll N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does
not meet the definition of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
97
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 18
SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2016
Statutorily Contributions in Contribution Contributions as a
Required Relation to the Deficiency Covered Percentage of
Fiscal Year Contribution Statutorily Required (Excess)Payroll Covered-Employee
Ending (a) Contribution (b)(a-b)(c)Payroll (b/c)
December 31, 2016 $ - $44,394 ($44,394) N/A N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does not
meet the defintion of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
98
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2016
Note A LEGAL COMPLIANCE – BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
Note B PENSION INFORMATION
PERA – General Employees Retirement Fund
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
PERA – Public Employees Police and Fire Fund
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Single Employer – Fire Division
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes.
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100
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS AND SCHEDULES
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102
NONMAJOR GOVERNMENTAL FUNDS
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104
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
PERMANENT FUNDS
Permanent Funds account for financial resources that are legally restricted to the extent that only
earnings, and not the principal, may be used for purposes that support the City’s programs.
The City maintains one permanent fund – the Foxborough Environment Fund. This fund
accounts for the use of funds received for environmental maintenance and improvements in the
Foxborough area.
105
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET Statement 19
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
Permanent
Fund Total
Foxborough Nonmajor
Special Debt Capital Environment Governmental
Revenue Service Project Fund Funds
Assets
Cash and investments $266,615 $5,289,529 $7,734,960 $138,305 $13,429,409
Accounts receivable - net - - 11,277 - 11,277
Prepaid items 1,220 - - - 1,220
Advances to other funds - - 1,350 - 1,350
Taxes receivable:
Due from county - 27,736 3 - 27,739
Delinquent - 15,008 93 - 15,101
Special assessments receivable:
Due from county - - 1,635 - 1,635
Delinquent - 9,582 749 - 10,331
Deferred - 1,173,065 409,663 - 1,582,728
Interfund loan receivable - 199,452 3,090,551 - 3,290,003
Long-term notes receivable 225,000 - - - 225,000
Total assets $492,835 $6,714,372 $11,250,281 $138,305 $18,595,793
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $10,870 $2,000 $58,932 $24,450 $96,252
Salaries payable 332 - - - 332
Contracts payable - - 640,483 - 640,483
Advances from other funds - 1,350 - - 1,350
Interfund loan payable - - 1,166,995 1,166,995
Total liabilities 11,202 3,350 1,866,410 24,450 1,905,412
Deferred inflows of resources:
Unavailable revenue - 1,197,654 410,506 - 1,608,160
Fund balance:
Nonspendable 1,220 - - 100,000 101,220
Restricted 309,668 5,514,718 438,026 13,855 6,276,267
Committed 170,950 - - - 170,950
Assigned - - 9,512,280 - 9,512,280
Unassigned (205) (1,350) (976,941) - (978,496)
Total fund balance 481,633 5,513,368 8,973,365 113,855 15,082,221
Total liabilities, deferred inflows
of resources, and fund balance $492,835 $6,714,372 $11,250,281 $138,305 $18,595,793
106
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 20
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
Permanent
Fund Total
Foxborough Nonmajor
Special Debt Capital Environment Governmental
Revenue Service Project Fund Funds
Revenues:
General property taxes $ - $2,037,598 $67 $ - $2,037,665
Tax increment - - 293,829 - 293,829
Intergovernmental - - 52,497 - 52,497
Special assessments - 1,004,689 407,118 - 1,411,807
Charges for services 166,752 - 531,534 - 698,286
Fines and forfeits 30,748 - - - 30,748
Investment earnings 2,211 16,772 67,307 1,063 87,353
Net increase in fair value of investments 161 983 4,818 - 5,962
Miscellaneous 20,205 42,932 119,826 13,451 196,414
Total revenues 220,077 3,102,974 1,476,996 14,514 4,814,561
Expenditures:
Current:
General government - - 8,324 - 8,324
Public safety 14,750 - - - 14,750
Public services 172,631 - 913,728 - 1,086,359
Conservation of natural resources - - - 24,450 24,450
Community development 998 - 4,106 - 5,104
Capital outlay:
General government - - 140,081 - 140,081
Public safety 20,315 - 501,603 - 521,918
Public services - - 2,326,347 - 2,326,347
Debt service:
Principal - 1,994,525 - - 1,994,525
Interest and fiscal charges - 606,759 8,578 - 615,337
Bond issuance costs - 35,504 28,774 - 64,278
Total expenditures 208,694 2,636,788 3,931,541 24,450 6,801,473
Revenues over (under) expenditures 11,383 466,186 (2,454,545) (9,936) (1,986,912)
Other financing sources (uses):
Transfers in 1,213 1,155,960 1,413,138 - 2,570,311
Transfers out (10,000) - (2,225,476) - (2,235,476)
Proceeds from issuance of debt - 1,600,000 1,889,000 - 3,489,000
Premium on bonds issued - - 41,497 - 41,497
Proceeds from sale of capital asset - - 72,182 - 72,182
Total other financing sources (uses) (8,787) 2,755,960 1,190,341 0 3,937,514
Special item - withdrawal from fire district - - 1,111,834 - 1,111,834
Net change in fund balance 2,596 3,222,146 (152,370) (9,936) 3,062,436
Fund balance - January 1 479,037 2,291,222 9,125,735 123,791 12,019,785
Fund balance - December 31 $481,633 $5,513,368 $8,973,365 $113,855 $15,082,221
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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.
Program Recreation – established to account for various self-supporting recreational
programs.
Economic Development Authority – established to account for the receipt and uses of
funds for economic development purposes.
Cable TV Fund – established to account for activities relating to Cable TV.
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 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 of
DUI forfeitures.
109
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 21
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2016
Total
203 Nonmajor
201 Economic Special
Program Development 204 Cable 205 Blue 206 Federal 207 State 208 DUI Revenue
Recreation Authority TV Fund Heron Days Narcotics Narcotics Forfeitures Funds
Assets
Cash and investments $47,569 $ - $134,072 $11,619 $29,911 $13,317 $30,127 $266,615
Prepaid items 1,220 - - - - - - 1,220
Long-term notes receivable - 225,000 - - - - - 225,000
Total assets $48,789 $225,000 $134,072 $11,619 $29,911 $13,317 $30,127 $492,835
Liabilities and Fund Balance
Liabilities:
Accounts payable $10,564 $ - $ - $ - $ - $85 $221 $10,870
Salaries payable 127 205 - - - - - 332
Total liabilities 10,691 2050008522111,202
Fund balance:
Nonspendable 1,220 - - - - - - 1,220
Restricted - 225,000 - 11,619 29,911 13,232 29,906 309,668
Committed 36,878 - 134,072 - - - - 170,950
Unassigned - (205) - - - - - (205)
Total fund balance 38,098 224,795 134,072 11,619 29,911 13,232 29,906 481,633
Total liabilities and fund balance $48,789 $225,000 $134,072 $11,619 $29,911 $13,317 $30,127 $492,835
110
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 22
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2016
Total
203 Nonmajor
201 Economic Special
Program Development 204 Cable 205 Blue 206 Federal 207 State 208 DUI Revenue
Recreation Authority TV Fund Heron Days Narcotics Narcotics Forfeitures Funds
Revenues:
Charges for services $113,945 $ - $52,807 $ - $ - $ - $ - $166,752
Fines and forfeits - - - - - 13,603 17,145 30,748
Investment earnings 638 - 960 80 242 102 189 2,211
Net increase in fair value
of investments 48 - 68 6 19 7 13 161
Miscellaneous - - - 20,205 - - - 20,205
Total revenues 114,631 0 53,835 20,291 261 13,712 17,347 220,077
Expenditures:
Current:
Public safety - - - - - 10,290 4,460 14,750
Public services 150,712 - - 21,919 - - - 172,631
Community development - 998 - - - - - 998
Capital outlay:
Public safety - - - - 20,315 - - 20,315
Total expenditures 150,712 998 0 21,919 20,315 10,290 4,460 208,694
Revenues over (under) expenditures (36,081) (998) 53,835 (1,628) (20,054) 3,422 12,887 11,383
Other financing sources (uses):
Transfers in - 1,213 - - - - - 1,213
Transfers out (10,000) - - - - - - (10,000)
Total other financing sources (uses) (10,000) 1,213 - - - - - (8,787)
Net change in fund balance (46,081)215 53,835 (1,628) (20,054) 3,422 12,887 2,596
Fund balance - January 1 84,179 224,580 80,237 13,247 49,965 9,810 17,019 479,037
Fund balance - December 31 $38,098 $224,795 $134,072 $11,619 $29,911 $13,232 $29,906 $481,633
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DEBT SERVICE FUNDS
Debt Service Funds are used to 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 and Notes – are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds – are repaid primarily from lease revenues received
from the EDA leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds – these bonds were issued to finance various improvements and will be
repaid primarily from pledged revenues derived from the constructed assets.
Capital Note – this note was issued to finance cable communications equipment and will
be repaid from revenues derived from franchise fees.
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CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 23
NONMAJOR DEBT SERVICE FUNDS Page 1 of 2
December 31, 2016
330 G.O.
328 G.O. 329 G.O. Utility
315 Improvement Tax Abatement Revenue
Certificates Bonds Bonds Bonds
of Indebtedness of 2005B of 2006C of 2006D
Assets
Cash and investments $149,501 $31,083 $1,853,505 $188,082
Taxes receivable:
Due from county 7,261 19 3,802 -
Delinquent 3,513 621 2,718 -
Special assessments receivable:
Delinquent - - - 9,582
Deferred - 11,945 - 32,066
Interfund loan receivable - - - -
Total assets $160,275 $43,668 $1,860,025 $229,730
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $200 $200
Advances from other funds - - - -
Total liabilities - - 200 200
Deferred inflows of resources:
Unavailable revenue 3,513 12,566 2,718 41,648
Fund balance:
Restricted 156,762 31,102 1,857,107 187,882
Unassigned - - - -
Total fund balance 156,762 31,102 1,857,107 187,882
Total liabilities, deferred inflows of
resources, and fund balance $160,275 $43,668 $1,860,025 $229,730
115
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2016
334 G.O.
331 G.O. 332 G.O. Improvement 336 G.O. 337 G.O.
CIP TIF and Utility 335 G.O. Improvement Improvement
Bonds Bonds Bonds Bonds Bonds Bonds
of 2006E of 2007A of 2010A of 2012A of 2013A of 2014A
Assets
Cash and investments $929,085 $149,896 $66,502 $356,691 $298,558 $786,514
Taxes receivable:
Due from county 6,296 - - 2,434 - -
Delinquent 4,713 - - 1,427 - -
Special assessments receivable:
Delinquent - - - - - -
Deferred - - 649 36,744 491,147 600,514
Interfund loan receivable - - - - - 199,452
Total assets $940,094 $149,896 $67,151 $397,296 $789,705 $1,586,480
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $200 $200 $200 $200 $200 $200
Advances from other funds - - - - - -
Total liabilities 200 200 200 200 200 200
Deferred inflows of resources:
Unavailable revenue 4,713 - 649 38,170 491,147 600,514
Fund balance:
Restricted 935,181 149,696 66,302 358,926 298,358 985,766
Unassigned - - - - - -
Total fund balance 935,181 149,696 66,302 358,926 298,358 985,766
Total liabilities, deferred
inflows, and fund balance $940,094 $149,896 $67,151 $397,296 $789,705 $1,586,480
116
Statement 23
Page 2 of 2
339 EDA 341 G.O. 343 G.O. Total
Lease 340 G.O. Utility 342 G.O. Tax Nonmajor
338 G.O. Revenue Capital Revenue Improvement Abatement Debt
Bonds Bonds Note Bonds Bonds Bonds Service
of 2015A of 2015B of 2016A of 2016A of 2016B of 2016C Funds
$236,794 $243,205 $113 $ - $ - $ - $5,289,529
3,666 4,258 - - - - 27,736
933 1,083 - - - - 15,008
- - - - - - 9,582
- - - - - - 1,173,065
- - - - - - 199,452
$241,393 $248,546 $113 $0 $0 $0 $6,714,372
$200 $200 $ - $ - $ - $ - $2,000
- - - 450 450 450 1,350
200 200 - 450 450 450 3,350
933 1,083 - - - - 1,197,654
240,260 247,263 113 - - - 5,514,718
- - - (450)(450)(450) (1,350)
240,260 247,263 113 (450)(450)(450) 5,513,368
$241,393 $248,546 $113 $0 $0 $0 $6,714,372
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CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 24
EXPENDITURES AND CHANGES IN FUND BALANCE Page 1 of 2
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2016
330 G.O.
328 G.O.329 G.O.Utility
315 Improvement Tax Abatement Revenue
Certificates Bonds Bonds Bonds
of Indebtedness of 2005B of 2006C of 2006D
Revenues:
General property taxes $534,062 $451 $278,320 $ -
Special assessments 121 11,829 150 7,821
Investment earnings 2,130 176 3,692 913
Net increase in fair value
of investments 129 11 197 62
Miscellaneous - - - -
Total revenues 536,442 12,467 282,359 8,796
Expenditures:
Debt service:
Principal 474,000 - 170,000 65,000
Interest and fiscal charges 35,486 - 79,030 4,904
Bond issuance costs - - 35,504 -
Total expenditures 509,486 0 284,534 69,904
Revenues over (under) expenditures 26,956 12,467 (2,175)(61,108)
Other financing sources:
Transfers in - - - 69,254
Proceeds from issuance of debt - - 1,600,000 -
Total other financing sources - - 1,600,000 69,254
Net change in fund balance 26,956 12,467 1,597,825 8,146
Fund balance - January 1 129,806 18,635 259,282 179,736
Fund balance - December 31 $156,762 $31,102 $1,857,107 $187,882
119
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2016
334 G.O.
331 G.O. 332 G.O. Improvement 336 G.O. 337 G.O.
CIP TIF and Utility 335 G.O. Improvement Improvement
Bonds Bonds Bonds Bonds Bonds Bonds
of 2006E of 2007A of 2010A of 2012A of 2013A of 2014A
Revenues:
General property taxes $460,564 $ - $ - $178,632 $ - $ -
Special assessments 267 - 60,435 22,927 37,946 863,193
Investment earnings 4,974 - 312 750 - 2,260
Net increase in fair value
of investments 323 - 17 39 - 118
Miscellaneous - - - - - -
Total revenues 466,128 - 60,764 202,348 37,946 865,571
Expenditures:
Debt service:
Principal 380,000 380,000 100,000 230,000 60,000 105,000
Interest and fiscal charges 41,450 90,176 14,900 18,266 17,440 34,193
Bond issuance costs - - - - - -
Total expenditures 421,450 470,176 114,900 248,266 77,440 139,193
Revenues over (under) expenditures 44,678 (470,176) (54,136) (45,918) (39,494) 726,378
Other financing sources:
Transfers in - 470,176 - 146,637 338,052 131,841
Proceeds from issuance of debt - - - - - -
Total other financing sources - 470,176 - 146,637 338,052 131,841
Net change in fund balance 44,678 0 (54,136) 100,719 298,558 858,219
Fund balance - January 1 890,503 149,696 120,438 258,207 (200) 127,547
Fund balance - December 31 $935,181 $149,696 $66,302 $358,926 $298,358 $985,766
120
Statement 24
Page 2 of 2
339 EDA 341 G.O. 343 G.O. Total
Lease 340 G.O. Utility 342 G.O. Tax Nonmajor
338 G.O. Revenue Capital Revenue Improvement Abatement Debt
Bonds Bonds Note Bonds Bonds Bonds Service
of 2015A of 2015B of 2016A of 2016A of 2016B of 2016C Funds
$270,887 $314,682 $ - $ - $ - $ - $2,037,598
- - - - - - 1,004,689
673 784 108 - - - 16,772
35 47 5 - - - 983
- - 42,932 - - - 42,932
271,595 315,513 43,045 - - - 3,102,974
- - 30,525 - - - 1,994,525
81,740 175,417 12,407 450 450 450 606,759
- - - - - - 35,504
81,740 175,417 42,932 450 450 450 2,636,788
189,855 140,096 113 (450)(450)(450) 466,186
- - - - - - 1,155,960
- - - - - - 1,600,000
- - - - - - 2,755,960
189,855 140,096 113 (450)(450)(450) 3,222,146
50,405 107,167 - - - - 2,291,222
$240,260 $247,263 $113 ($450)($450)($450) $5,513,368
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CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds. The City maintained the following nonmajor Capital
Project Funds during the year:
Closed Bond Fund – to account for excess funds from matured bond issues.
Building and Facilities – to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving – to account for proceeds from Equipment Certificates and
funds held to purchase capital equipment.
Office Equipment Revolving – to account for the receipt and use of funds for office
equipment purchases.
Dedicated Parks – to account for the receipts and use of monies collected from park
dedication fees.
Tax Increment Financing Funds – to account for development projects financed with tax
increments.
Municipal State Aid (MSA) Construction – to account for the financing of future
reconstruction of state aid eligible streets.
Sealcoating – to account for money received from levies, assessments, and developer
charges for future street sealcoating and overlay projects.
Surface Water Management – to account for the financing of surface water management
and storm water improvements.
Street Reconstruction – to account for the financing of future reconstruction of City
streets.
Surface Water Maintenance – to account for surface water maintenance activities.
I-35E Interchange – to account for activity related to the I-35E / CSAH 14 Interchange
Reconstruction Project.
Traffic Signal Fund – the Legacy traffic signal charge fund accounts for costs associated
with construction of traffic signals in the City.
Otter Lake Road Extension – this fund accounts for activities relating to the construction
performed in the extension of the Otter Lake Road.
123
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124
21st Ave Extension – this fund accounts for activities relating to the construction
performed in the expansion of 21st Avenue within the City.
Fire House #2 Construction – this fund accounts for activities relating to the construction
of Fire House #2.
Well #6 Construction – this fund accounts for activities relating to the construction of
Well # 6 and well house.
Northpointe Improvements – this fund accounts for activities relating to the construction
of streets and utilities within the Northpointe development.
Birch Street / Centerville Road Improvements – this fund accounts for activities relating
to the construction of street improvements and sanitary sewer in conjunction with Fire
House #2.
2015 Street Reconstruction – this fund accounts for the construction and improvements to
Shenandoah Street.
Blackduck / Aqua Lane Watermain Extension – this fund accounts for activities relating
to the trunk watermain improvements along Aqua Lane to north of Blackduck Drive.
125
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126
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 25
NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2
December 31, 2016
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Assets
Cash and investments $110,622 $223,387 $1,091,703 $34,248 $446,561
Accounts receivable - net - - 5,577 - -
Advances to other funds 1,350 - - - -
Taxes receivable:
Due from county 3 - - - -
Delinquent 93 - - - -
Special assessments receivable:
Due from county - - - - -
Delinquent - - - - -
Deferred 26,704 - - - -
Interfund loan receivable 773,018 2,317,533 - - -
Total assets $911,790 $2,540,920 $1,097,280 $34,248 $446,561
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $5,380 $2,500 $ - $ - $ -
Contracts payable - - - - -
Interfund loan payable - - - - 194,525
Total liabilities 5,380 2,500 0 0 194,525
Deferred inflows of resources:
Unavailable revenue 26,797 - - - -
Fund balance:
Restricted - - - - -
Assigned 879,613 2,538,420 1,097,280 34,248 252,036
Unassigned - - - - -
Total fund balance 879,613 2,538,420 1,097,280 34,248 252,036
Total liabilities, deferred inflows of
resources, and fund balance $911,790 $2,540,920 $1,097,280 $34,248 $446,561
127
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2016
411 Tax 417 Tax 418 Tax 422 Surface
Increment Increment Increment 420 MSA 421 Water 423 Street
Financing 1-5 Financing 1-10 Financing 1-11 Construction Sealcoating Management Reconstruction
Assets
Cash and investments $249,412 $189,697 $ - $2,012,170 $211,648 $747,048 $686,670
Accounts receivable - net - - - - 5,700 - -
Advances to other funds - - - - - - -
Taxes receivable:
Due from county - - - - - - -
Delinquent - - - - - - -
Special assessments receivable:
Due from county - - - - - 1,635 -
Delinquent - - - - - 749 -
Deferred - - - - - 290,498 92,461
Interfund loan receivable - - - - - - -
Total assets $249,412 $189,697 $0 $2,012,170 $217,348 $1,039,930 $779,131
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $514 $569 $1,965 $ - $8,087 $13,261 $ -
Contracts payable - - - - 26,083 - -
Interfund loan payable - - 773,018 - - - -
Total liabilities 514 569 774,983 0 34,170 13,261 0
Deferred inflows of resources:
Unavailable revenue - - - - - 291,248 92,461
Fund balance:
Restricted 248,898 189,128 - - - - -
Assigned - - - 2,012,170 183,178 735,421 686,670
Unassigned - - (774,983) - - - -
Total fund balance 248,898 189,128 (774,983) 2,012,170 183,178 735,421 686,670
Total liabilities, deferred
inflows, and fund balance $249,412 $189,697 $0 $2,012,170 $217,348 $1,039,930 $779,131
128
Statement 25
Page 2 of 2
Total
483 Blackduck/ Nonmajor
424 Surface 477 478 Fire 479 480 481 Birch St/ 480 2015 Aqua Lane Capital
Water 21st Ave House # 2 Well #6 Northpointe Centerville Rd Street Watermain Project
Maintenance Extension Construction Construction Improvements Improvements Reconstruction Extension Funds
$85,034 $ - $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $7,734,960
- - - - - - - - 11,277
- - - - - - - - 1,350
- - - - - - - - 3
- - - - - - - - 93
- - - - - - - - 1,635
- - - - - - - - 749
- - - - - - - - 409,663
- - - - - - - - 3,090,551
$85,034 $0 $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $11,250,281
$2,247 $182 $1,065 $3,236 $ - $1,293 $478 $18,155 $58,932
1,515 - 97,447 37,678 63,985 - - 413,775 640,483
- 199,452 - - - - - - 1,166,995
3,762 199,634 98,512 40,914 63,985 1,293 478 431,930 1,866,410
- - - - - - - - 410,506
- - - - - - - - 438,026
81,272 - - 22,882 322,289 133,428 195,225 338,148 9,512,280
- (199,634) (2,324) - - - - - (976,941)
81,272 (199,634) (2,324) 22,882 322,289 133,428 195,225 338,148 8,973,365
$85,034 $0 $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $11,250,281
129
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Revenues:
General property taxes $67 $ - $ - $ - $ -
Tax increment - - - - -
Intergovernmental - - 10,295 - -
Special assessments 16,584 - - - -
Charges for services - 177,680 - - 277,574
Investment earnings 6,542 1,868 8,358 569 2,573
Net increase in fair value of investments 463 138 582 51 164
Miscellaneous - - - 935 832
Total revenues 23,656 179,686 19,235 1,555 281,143
Expenditures:
Current:
General government 7,221 1,103 - - -
Public services - - - - -
Community development - - - - -
Capital outlay:
General government - 67,650 - 72,431 -
Public safety - 126,228 338,745 - -
Public services - - 279,414 2,524 97
Debt service:
Interest and fiscal charges - - - - 8,578
Bond issuance costs - - - - -
Total expenditures 7,221 194,981 618,159 74,955 8,675
Revenues over (under) expenditures 16,435 (15,295) (598,924) (73,400) 272,468
Other financing sources (uses):
Transfers in - - - 25,000 50,000
Transfers out (378,084) - - (100,000) -
Proceeds from issuance of debt - - 469,000 - -
Premium on bonds issued - - - - -
Proceeds from sale of capital assets - - 72,107 75 -
Total other financing sources (uses)(378,084)0 541,107 (74,925) 50,000
Special item - withdrawal from fire district - - 1,111,834 - -
Net change in fund balance (361,649) (15,295) 1,054,017 (148,325) 322,468
Fund balance - January 1 1,241,262 2,553,715 43,263 182,573 (70,432)
Fund balance - December 31 $879,613 $2,538,420 $1,097,280 $34,248 $252,036
130
Statement 26
Page 1 of 2
411 Tax 417 Tax 418 Tax 422 Surface 424 Surface
Increment Increment Increment 420 MSA 421 Water 423 Street Water
Financing 1-5 Financing 1-10 Financing 1-11 Construction Sealcoating Management Reconstruction Maintenance
$ - $ - $ - $ - $ - $ - $ - $ -
38,261 152,784 102,784 - - - - -
- - - 702 - - - -
- - - - - 376,342 14,192 -
- - - - 76,280 - - -
1,661 1,711 - 22,224 3,088 3,982 4,974 71
116 116 - 1,595 242 270 351 4
- - - 32,000 - - - -
40,038 154,611 102,784 56,521 79,610 380,594 19,517 75
- - - - - - - -
- - - 79,600 721,116 93,484 - 19,528
652 1,119 2,335 - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
652 1,119 2,335 79,600 721,116 93,484 0 19,528
39,386 153,492 100,449 (23,079) (641,506) 287,110 19,517 (19,453)
- - - - 514,500 - - 100,725
- (152,784) (102,784) (1,084,576) - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
0 (152,784) (102,784) (1,084,576) 514,500 0 0 100,725
- - - - - - - -
39,386 708 (2,335) (1,107,655) (127,006) 287,110 19,517 81,272
209,512 188,420 (772,648) 3,119,825 310,184 448,311 667,153 -
$248,898 $189,128 ($774,983) $2,012,170 $183,178 $735,421 $686,670 $81,272
131
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
474 475 476 Otter 477
I-35E Traffic Lake Road 21st Ave
Interchange Signal Extension Extension
Revenues:
General property taxes $ - $ - $ - $ -
Tax increment - - - -
Intergovernmental - - - 31,500
Special assessments - - - -
Charges for services - - - -
Investment earnings - 841 1,111 -
Net increase in fair value of investments - 60 80 -
Miscellaneous 47,625 - - -
Total revenues 47,625 901 1,191 31,500
Expenditures:
Current:
General government - - - -
Public services - - - -
Community development - - - -
Capital outlay:
General government - - - -
Public safety - - - -
Public services 12,645 - 63,539 50,243
Debt service:
Interest and fiscal charges - - - -
Bond issuance costs - - - -
Total expenditures 12,645 0 63,539 50,243
Revenues over (under) expenditures 34,980 901 (62,348) (18,743)
Other financing sources (uses):
Transfers in 224,186 32,000 115,350 122,063
Transfers out - (146,637) (260,611) -
Proceeds from issuance of debt - - - -
Premium on bonds issued - - - -
Proceeds from sale of capital assets - - - -
Total other financing sources (uses)224,186 (114,637) (145,261) 122,063
Special item - withdrawal from fire district - - - -
Net change in fund balance 259,166 (113,736) (207,609) 103,320
Fund balance - January 1 (259,166) 113,736 207,609 (302,954)
Fund balance - December 31 $0 $0 $0 ($199,634)
132
Statement 26
Page 2 of 2
483 Blackduck/ Total
478 Fire 479 480 481 Birch St/ 480 2015 Aqua Lane Nonmajor
House # 2 Well #6 Northpointe Centerville Rd Street Watermain Capital
Construction Construction Improvements Improvements Reconstruction Extension Project Funds
$ - $ - $ - $ - $ - $ - $67
- - - - - - 293,829
- - 10,000 - - - 52,497
- - - - - - 407,118
- - - - - - 531,534
959 1,505 2,864 1,251 96 1,059 67,307
77 168 206 91 - 44 4,818
- - - - 38,434 - 119,826
1,036 1,673 13,070 1,342 38,530 1,103 1,476,996
- - - - - - 8,324
- - - - - - 913,728
- - - - - - 4,106
- - - - - - 140,081
36,630 - - - - - 501,603
- 726,730 68,710 23,460 54,393 1,044,592 2,326,347
- - - - - - 8,578
- - - - - 28,774 28,774
36,630 726,730 68,710 23,460 54,393 1,073,366 3,931,541
(35,594) (725,057) (55,640) (22,118) (15,863) (1,072,263) (2,454,545)
- - - - 229,314 - 1,413,138
- - - - - - (2,225,476)
- - - - - 1,420,000 1,889,000
- - - - - 41,497 41,497
- - - - - - 72,182
0000229,314 1,461,497 1,190,341
- - - - - - 1,111,834
(35,594) (725,057) (55,640) (22,118) 213,451 389,234 (152,370)
33,270 747,939 377,929 155,546 (18,226) (51,086) 9,125,735
($2,324) $22,882 $322,289 $133,428 $195,225 $338,148 $8,973,365
133
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION Statement 27
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2016
Budgeted Amounts
2016 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Revenues:
Charges for services $135,270 $135,270 $113,945 ($21,325)
Investment earnings - - 638 638
Net increase in fair value of investments - - 48 48
Total revenues 135,270 135,270 114,631 (20,639)
Expenditures:
Public services:
Current:
Personal services 60,150 58,150 63,498 (5,348)
Supplies 28,950 28,950 50,128 (21,178)
Other services and charges - - 369 (369)
Contractual services 27,550 27,550 36,717 (9,167)
Total current
Capital outlay 3,000 3,000 - 3,000
Total expenditures 119,650 117,650 150,712 (33,062)
Revenues over (under) expenditures 15,620 17,620 (36,081) (53,701)
Other financing sources (uses):
Transfers out (10,000) (10,000) (10,000) -
Net change in fund balance $5,620 $7,620 (46,081) ($53,701)
Fund balance - January 1 84,179
Fund balance - December 31 $38,098
134
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 28
AGENCY FUNDS
For The Year Ended December 31, 2016
Balance Balance
January 1,December 31,
2016 Additions Deletions 2016
Assets:
Cash and investments $727,635 $437,702 $339,964 $825,373
Liabilities:
Deposits payable $727,635 $437,702 $339,964 $825,373
135
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136
STATISTICAL SECTION (UNAUDITED)
137
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138
This part of the City of Lino Lakes, Minnesota's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures
and required supplementary information says about the City's overall financial health.
Table
Number
Financial Trends Tables 1-4
These tables contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity Tables 5-8
These tables contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity Tables 9-12
These tables present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 13-14
These tables offer demographic and economic indicators to help the reader understand the
environment wihthin which the City's financial activities take place.
Operating Information Tables 15-17
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive
financial reports for the relevant year.
STATISTICAL SECTION (UNAUDITED)
Contents
139
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010
Governmental activities:
Net investment in capital assets $36,789,153 $28,472,865 $23,400,453 $22,562,217
Restricted 10,324,467 9,870,676 9,414,474 8,428,025
Unrestricted 6,339,528 10,790,359 15,926,322 16,738,885
Total governmental activities net position $53,453,148 $49,133,900 $48,741,249 $47,729,127
Business-type activities:
Net investment in capital assets $29,836,775 $30,372,670 $30,071,840 $29,648,461
Unrestricted 8,063,983 9,028,778 10,112,207 10,728,626
Total business-type activities net position $37,900,758 $39,401,448 $40,184,047 $40,377,087
Primary government:
Net investment in capital assets $66,625,928 $58,845,535 $53,472,293 $52,210,678
Restricted 10,324,467 9,870,676 9,414,474 8,428,025
Unrestricted 14,403,511 19,819,137 26,038,529 27,467,511
Total primary government net position $91,353,906 $88,535,348 $88,925,296 $88,106,214
GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability
and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
140
Table 1
2011 2012 2013 2014 2015 2016
$24,600,103 $22,166,342 $22,241,821 $19,540,807 $18,230,746 $18,597,344
11,598,803 11,595,112 11,000,033 8,666,357 8,635,293 13,342,852
13,463,210 17,639,038 16,849,636 20,527,704 13,888,120 10,879,734
$49,662,116 $51,400,492 $50,091,490 $48,734,868 $40,754,159 $42,819,930
$29,216,866 $28,798,095 $28,423,284 $27,556,022 $29,127,829 $31,860,610
11,201,362 12,102,013 12,999,182 13,888,278 14,672,630 13,863,447
$40,418,228 $40,900,108 $41,422,466 $41,444,300 $43,800,459 $45,724,057
$53,816,969 $50,964,437 $50,665,105 $47,096,829 $47,358,575 $50,457,954
11,598,803 11,595,112 11,000,033 8,666,357 8,635,293 13,342,852
24,664,572 29,741,051 29,848,818 34,415,982 28,560,750 24,743,181
$90,080,344 $92,300,600 $91,513,956 $90,179,168 $84,554,618 $88,543,987
141
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010
Expenses
Governmental activities:
General government $2,197,672 $2,323,358 $2,201,439 $1,987,415
Public safety 3,730,504 4,051,162 4,299,366 3,971,261
Public services 11,937,693 8,528,574 5,341,113 5,092,970
Conservation of natural resources 183,420 184,624 215,607 197,571
Community development 1,122,802 1,114,158 1,005,997 1,105,254
Interest and fees on long-term debt 980,849 1,045,781 928,668 1,064,172
Total governmental activities expenses 20,152,940 17,247,657 13,992,190 13,418,643
Business-type activities:
Water 1,170,902 1,020,770 1,089,569 1,045,901
Sewer 1,298,963 1,287,943 1,432,107 1,466,847
Total business-type activities expenses 2,469,865 2,308,713 2,521,676 2,512,748
Total primary government expenses $22,622,805 $19,556,370 $16,513,866 $15,931,391
Program revenues
Governmental activities:
Charges for services:
General government $91,646 $79,844 $101,741 $98,403
Public safety 1,078,995 1,296,418 725,747 691,005
Public services 575,292 600,325 594,168 605,207
Conservation of natural resources 4,559 3,660 3,858 4,153
Community development 15,839 11,623 8,667 14,148
Operating grants and contributions 851,791 693,065 682,797 617,450
Capital grants and contributions 7,189,346 1,094,789 1,357,015 1,388,984
Total governmental activities program revenues 9,807,468 3,779,724 3,473,993 3,419,350
Business-type activities:
Charges for services:
Water 1,215,763 1,058,493 1,365,817 1,087,013
Sewer 1,446,112 1,472,093 1,502,164 1,498,218
Operating grants and contributions - - 62,710 -
Capital grants and contributions 80,750 10,117 8,769 8,709
Total business-type activities 2,742,625 2,540,703 2,939,460 2,593,940
Total primary government program revenues $12,550,093 $6,320,427 $6,413,453 $6,013,290
142
Table 2
Page 1 of 2
2011 2012 2013 2014 2015 2016
$1,990,137 $1,883,961 $1,566,388 $2,036,550 $2,016,351 $2,456,864
4,019,101 4,046,415 3,950,197 4,107,759 5,135,865 6,567,523
9,329,451 6,795,150 5,376,671 5,880,030 7,971,712 6,228,893
139,544 184,051 141,204 159,649 186,111 216,905
617,747 430,121 404,726 407,448 432,268 454,144
927,535 837,755 951,842 618,680 632,876 831,529
17,023,515 14,177,453 12,391,028 13,210,116 16,375,183 16,755,858
966,643 949,121 927,800 965,641 1,394,897 1,367,693
1,638,063 1,527,637 1,584,395 1,628,258 2,089,842 1,850,962
2,604,706 2,476,758 2,512,195 2,593,899 3,484,739 3,218,655
$19,628,221 $16,654,211 $14,903,223 $15,804,015 $19,859,922 $19,974,513
$103,687 $129,151 $93,118 $103,072 $818,468 $520,231
713,985 642,745 697,584 763,470 199,498 1,359,426
593,263 668,128 632,002 621,221 603,866 865,327
4,392 19,297 1,347 1,882 - -
5,138 16,940 28,118 39,395 - -
593,798 450,179 527,368 840,676 526,107 722,858
7,347,613 5,125,693 941,960 335,733 1,176,732 5,046,307
9,361,876 7,052,133 2,921,497 2,705,449 3,324,671 8,514,149
1,090,104 1,371,809 1,208,742 965,425 1,014,836 1,094,897
1,494,188 1,505,781 1,516,397 1,564,099 1,621,633 1,659,322
- - - 263,024 263,024 -
1,462 20,018 883 1,035 3,035,031 1,543,947
2,585,754 2,897,608 2,726,022 2,793,583 5,934,524 4,298,166
$11,947,630 $9,949,741 $5,647,519 $5,499,032 $9,259,195 $12,812,315
143
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2007 2008 2009 2010
Net (expense) revenue:
Governmental activities ($10,345,472) ($13,467,933) ($10,518,197) ($9,999,293)
Business-type activities 272,760 231,990 417,784 81,192
Total primary government, net (10,072,712) (13,235,943) (10,100,413) (9,918,101)
General revenues and other changes in net position:
Governmental activities:
Property taxes 8,785,280 9,424,697 9,808,324 8,764,183
Unrestricted grants and contributions 256,877 129,607 11,321 4,389
Unrestricted investment earnings 864,578 576,071 429,325 225,677
Gain on disposal of capital assets 17,424 12,512 12,644 -
Special item - withdrawal from fire district - - - -
Transfers (895,687) (994,202) (136,068) (7,078)
Total governmental activities 9,028,472 9,148,685 10,125,546 8,987,171
Business-type activities:
Unrestricted investment earnings 365,822 274,498 228,747 104,770
Change in market value - - - -
Transfers 895,687 994,202 136,068 7,078
Total business-type activities 1,261,509 1,268,700 364,815 111,848
Total primary government $10,289,981 $10,417,385 $10,490,361 $9,099,019
Change in net position:
Governmental activities ($1,317,000) ($4,319,248) ($392,651) ($1,012,122)
Business-type activities 1,534,269 1,500,690 782,599 193,040
Total primary government change in net position $217,269 ($2,818,558) $389,948 ($819,082)
GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
144
Table 2
Page 2 of 2
2011 2012 2013 2014 2015 2016
($7,661,639) ($7,125,320) ($9,469,531) ($10,504,667) ($13,050,512) ($8,241,709)
(18,952)420,850 213,827 199,684 2,449,785 1,079,511
(7,680,591) (6,704,470) (9,255,704) (10,304,983) (10,600,727) (7,162,198)
8,768,805 8,610,709 8,563,595 8,806,886 9,243,236 9,343,500
4,072 4,941 4,442 4,443 5,363 91,385
251,250 202,828 (54,204)265,695 112,961 210,142
37,579 4,175 - 1,727 17,836 66,255
- - - - - 1,333,166
66,122 41,043 (353,304)69,294 66,834 (914,414)
9,127,828 8,863,696 8,160,529 9,148,045 9,446,230 10,130,034
126,215 102,073 113,402 96,213 81,084 107,119
- - (158,175)58,255 (29,917) -
(66,122)(41,043)353,304 (69,294)(66,834)914,414
60,093 61,030 308,531 85,174 (15,667)1,021,533
$9,187,921 $8,924,726 $8,469,060 $9,233,219 $9,430,563 $11,151,567
$1,466,189 $1,738,376 ($1,309,002) ($1,356,622) ($3,604,282) $1,888,325
41,141 481,880 522,358 284,858 2,434,118 2,101,044
$1,507,330 $2,220,256 ($786,644) ($1,071,764) ($1,170,164) $3,989,369
145
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2007 2008 2009 2010
General Fund:
Reserved $181,759 $190,825 $196,568 $181,471
Unreserved 5,356,272 5,393,316 5,191,396 5,445,334
Nonspendable - - - -
Unassigned - - - -
Total general fund $5,538,031 $5,584,141 $5,387,964 $5,626,805
All other governmental funds:
Reserved reported in:
Special revenue funds $226,921 $226,973 $227,176 $227,342
Capital projects funds 885,825 812,400 736,772 658,875
Debt service funds 3,925,402 3,405,272 3,457,349 2,986,102
Permanent funds 100,000 100,000 100,000 100,000
Unreserved reported in:
Special revenue funds 100,955 106,573 93,956 110,471
Capital projects funds 8,395,827 5,927,411 11,611,835 12,537,841
Debt service funds - - (558,443) (1,093,765)
Permanent funds 17,023 22,224 15,824 12,676
Nonspendable - - - -
Restricted - - - -
Committed - - - -
Assigned - - - -
Unassigned - - - -
Total all other governmental funds $13,651,953 $10,600,853 $15,684,469 $15,539,542
Total all funds $19,189,984 $16,184,994 $21,072,433 $21,166,347
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Information
for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
146
Table 3
2011 2012 2013 2014 2015 2016
$ - $ - $ - $ - $ - $ -
- - - - - -
165,079 180,786 176,797 253,471 220,677 225,114
5,440,101 5,053,031 5,209,286 5,053,064 5,725,736 6,031,077
$5,605,180 $5,233,817 $5,386,083 $5,306,535 $5,946,413 $6,256,191
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
906,010 823,113 101,710 101,302 101,177 101,220
2,658,010 3,041,524 3,651,550 2,830,526 2,637,638 6,502,424
110,568 115,196 121,075 152,078 163,239 170,950
10,808,268 15,573,179 15,710,702 18,027,773 15,022,852 15,778,480
(3,154,496) (3,262,728) (3,393,547) (375,851) (3,815,304) (978,496)
$11,328,360 $16,290,284 $16,191,490 $20,735,828 $14,109,602 $21,574,578
$16,933,540 $21,524,101 $21,577,573 $26,042,363 $20,056,015 $27,830,769
147
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2007 2008 2009 2010
Revenues:
Property taxes $8,529,846 $9,095,085 $9,561,570 $8,647,488
Liscenses and permits 694,435 802,135 307,714 330,138
Intergovernmental 6,143,689 1,004,476 1,259,016 1,176,863
Special assessments 1,961,253 950,188 968,995 851,270
Charges for services 753,698 872,534 778,163 780,044
Fines and forfeits 139,932 133,531 111,807 127,203
Investment earnings 864,578 576,071 429,325 225,677
Net increase (decrease) in fair value of investments - - - -
Miscellaneous 889,901 516,415 513,306 502,992
Total revenues 19,977,332 13,950,435 13,929,896 12,641,675
Expenditures:
Current:
General government 1,953,960 2,058,267 1,918,246 1,730,390
Public safety 3,513,460 3,806,389 4,122,352 3,798,106
Public services 9,549,932 6,575,568 3,071,646 2,848,232
Conservation of natural resources 183,346 183,024 209,466 185,232
Community development 1,107,328 1,113,232 1,005,095 1,098,682
Capital outlay 2,008,073 585,875 501,806 282,938
Debt service:
Principal 1,973,000 1,749,000 1,908,000 1,866,000
Interest and fiscal charges 937,895 1,074,052 994,809 1,042,883
Bond issuance costs - - - -
Total expenditures 21,226,994 17,145,407 13,731,420 12,852,463
Excess (deficiency) of revenues over expenditures (1,249,662) (3,194,972) 198,476 (210,788)
Other financing sources (uses):
Proceeds from sale of capital assets 54,037 13,750 35,700 20,600
Proceeds from issuance of debt 4,375,000 209,000 4,596,000 1,170,000
Premium on bonds issued - - 11,141 10,980
Discount on bonds issued (25,798) - - -
Payment to refunded bond escrow agent - - - (965,000)
Loan payable reapportionment - - - -
Transfers in 2,900,249 4,763,391 1,413,985 1,195,747
Transfers out (3,019,224) (4,796,159) (1,367,863) (1,127,625)
Total other financing sources (uses)4,284,264 189,982 4,688,963 304,702
Special item - withdrawal from fire district - - - -
Net change in fund balance $3,034,602 ($3,004,990) $4,887,439 $93,914
Debt service as a percentage of noncapital expenditures 15.1%17.0%21.9%23.1%
Debt service as a percentage of total expenditures 13.7%16.5%21.1%22.6%
148
Table 4
2011 2012 2013 2014 2015 2016
$8,655,971 $8,560,340 $8,475,214 $8,612,011 $8,950,507 $9,369,090
322,030 319,172 431,654 407,681 551,202 895,581
1,331,914 5,267,570 500,963 823,025 679,627 706,944
904,522 816,998 2,130,519 1,278,202 703,141 4,400,635
812,604 744,633 717,300 731,640 696,501 1,293,556
154,020 155,956 119,079 149,653 127,803 251,653
251,244 202,825 222,810 173,422 163,497 199,709
- - (276,276)92,372 (50,582)10,433
460,710 414,088 384,749 767,477 766,072 417,448
12,893,015 16,481,582 12,706,012 13,035,483 12,587,768 17,545,049
1,773,515 1,619,215 1,569,722 1,692,175 1,643,966 1,845,667
3,791,329 3,861,265 3,744,957 3,845,732 11,895,482 4,333,080
3,251,923 4,396,406 3,956,766 4,156,497 4,779,696 3,203,837
134,122 176,318 134,127 149,292 191,038 201,635
624,286 435,154 418,533 402,750 422,935 425,402
4,209,593 616,931 291,135 674,488 1,566,057 3,044,615
2,030,000 2,145,000 2,214,000 3,664,000 2,802,511 2,769,525
983,129 831,875 774,172 696,780 542,166 816,362
- 47,054 17,137 - 62,831 98,906
16,797,897 14,129,218 13,120,549 15,281,714 23,906,682 16,739,029
(3,904,882)2,352,364 (414,537) (2,246,231) (11,318,914)806,020
50,953 4,175 16,727 1,727 54,522 72,182
120,000 2,165,000 808,000 3,140,000 8,606,250 5,464,000
- - 6,558 - 114,960 41,497
- - - - - -
- - (435,000) - - -
(565,000) - - - - -
2,971,715 1,979,457 1,722,541 2,608,534 3,392,971 3,521,180
(2,905,593) (1,910,435) (1,650,817) (2,539,240) (3,336,137) (3,241,959)
(327,925)2,238,197 468,009 3,211,021 8,832,566 5,856,900
- - - - - 1,111,834
($4,232,807) $4,590,561 $53,472 $964,790 ($2,486,348) $7,774,754
23.9%22.0%23.3%29.9%15.0%26.2%
17.9%21.1%22.8%28.5%14.0%21.4%
149
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY Table 5
Last Ten Fiscal Years
Estimated
Commercial/ Total Taxable Taxable
Payable Residential Industrial Personal Assessed Total Direct Market
Year Property Property Property Value Tax Rate Value
2007 $17,605,080 $3,047,965 $288,290 $20,941,335 38.99 $1,927,807,500
2008 18,382,645 3,431,107 279,102 22,092,854 38.97 2,021,961,000
2009 18,919,087 4,002,349 275,496 23,196,932 38.73 2,102,473,000
2010 17,978,917 3,800,004 291,904 22,070,825 37.91 2,001,889,600
2011 16,214,698 3,223,901 303,964 19,742,563 42.04 1,804,121,500
2012 14,743,557 2,945,026 310,870 17,999,453 42.89 1,640,455,854
2013 13,693,905 2,571,769 336,047 16,601,721 46.77 1,519,857,242
2014 13,646,798 2,450,473 341,974 16,439,245 46.68 1,509,921,169
2015 15,455,516 2,536,783 347,316 18,339,615 43.77 1,694,366,064
2016 15,472,329 2,609,482 359,006 18,440,817 46.02 1,699,288,883
The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula
to the estimated market value of the property.
Source: Anoka County, Minnesota Assessors' Office
150
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
General Centennial Other Total Direct and
Fiscal Basic Obligation Total School District Anoka Taxing Total Overlapping
Year Rate Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate
2007 34.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358
2008 34.560 4.407 38.967 35.258 31.078 6.956 73.292 112.259
2009 34.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015
2010 34.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258
2011 37.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966
2012 37.501 5.393 42.894 40.010 41.146 6.691 87.847 130.741
2013 40.964 5.810 46.774 43.681 44.411 6.940 95.032 141.806
2014 39.784 6.899 46.683 46.186 43.239 6.712 96.137 142.820
2015 37.819 5.951 43.770 36.562 38.123 6.021 80.706 124.476
2016 35.025 10.994 46.019 36.426 38.894 6.405 81.725 127.744
The majority of the City is serviced by School District 12. Rates for debt service are based on each year's requirements.
Source: Anoka County Property Records and Tax Division
City Direct Rate Overlapping Rates
151
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152
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Net Tax Net Tax Net Tax Net Tax
Taxpayer Capacity Rank Capacity Capacity Rank Capacity
Target Corporation $202,952 1 1.10% $265,254 1 1.23%
Xcel Energy 190,733 2 1.03% 148,787 3 0.69%
WI MN AB BIYNAH LLC 183,332 3 0.99% - - -
Moline Concrete Products 107,982 4 0.59% 124,375 5 0.58%
Gargaro Properties LLC 104,374 5 0.57% 91,274 7 0.42%
Taylor Corporation 99,648 6 0.54% 117,902 6 0.55%
Kohl's Department Store 99,092 7 0.54% 131,706 4 0.61%
Marmon/Keystone Corp 74,216 8 0.40% - - -
CenterPoint Energy 72,162 9 0.39% - - -
Lino Lakes Business Center LLC 63,729 10 0.35% 89,862 8 0.42%
Lino Lakes Realty LLC - - 256,862 2 1.19%
F&G Incorporated - - 88,256 9 0.41%
Legacy Holdings LLC - - 87,018 10 0.40%
Total $1,198,220 6.50% $1,401,296 6.50%
Source: Anoka County Property Records and Tax Division
2016 2007
153
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year Fiscal Year of Levy
Percentage
Fiscal Operating Debt Total Tax of
Year Tax Levy Tax Levy Levy Amount Levy
2007 $7,558,995 $897,333 $8,456,328 $8,324,180 98.4%
2008 7,973,236 893,720 8,866,956 8,581,974 96.8%
2009 8,295,172 949,166 9,244,338 8,982,756 97.2%
2010 7,816,232 879,182 8,695,414 8,400,439 96.6%
2011 7,719,240 940,760 8,660,000 8,486,845 98.0%
2012 7,192,818 1,034,441 8,227,259 8,095,502 98.4%
2013 7,190,538 1,025,090 8,215,628 8,094,911 98.5%
2014 7,098,922 1,197,122 8,296,044 8,229,986 99.2%
2015 7,490,578 1,195,494 8,686,072 8,630,830 99.4%
2016 7,018,572 2,039,856 9,058,428 9,022,964 99.6%
Current year levies and collections include State levy related credits, but do not include tax increment levies and collections.
154
Table 8
Total Collections to Date
Collections in Percentage Outstanding Percentage
Subsequent of Delinquent of Levy
Years Amount Levy Taxes Outstanding
$105,490 $8,429,670 99.7%$26,658 0.3%
129,219 8,711,193 98.2%155,763 1.8%
194,335 9,177,091 99.3%67,247 0.7%
182,204 8,582,643 98.7%112,771 1.3%
124,970 8,611,815 99.4%48,185 0.6%
73,804 8,169,306 99.3%57,953 0.7%
64,688 8,159,599 99.3%56,029 0.7%
39,265 8,269,252 99.7%26,792 0.3%
30,074 8,660,904 99.7%25,168 0.3%
- 9,022,964 99.6%35,464 0.4%
155
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Business-Type
Governmental Activities Activities
General
General Special Other Obligation
Fiscal Obligation Assessments Long-Term Revenue
Year Bonds Payable Debt Bonds
2007 $11,569,000 $12,520,000 $ - $1,855,000
2008 11,184,000 11,365,000 - 1,530,000
2009 10,712,000 10,265,000 4,260,000 1,170,000
2010 10,141,000 9,175,000 4,260,000 795,000
2011 9,421,000 7,985,000 3,695,000 405,000
2012 10,331,000 7,095,000 3,695,000 -
2013 9,610,000 5,975,000 3,695,000 -
2014 9,036,000 7,640,000 2,080,000 -
2015 16,377,291 6,620,000 1,720,000 -
2016 18,337,081 7,795,000 1,609,000 -
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
(1) Personal income information is not yet available for 2016 from the Bureau of Economic Analysis Report
156
Table 9
Total Percentage Percentage
Primary of Assessed of Personal Per
Government Market Value Income Capita
$25,944,000 1.35%3.41%$1,307
24,079,000 1.19%3.08%1,205
26,407,000 1.24%3.44%1,301
24,371,000 1.22%3.13%1,206
21,506,000 1.19%2.59%1,049
21,121,000 1.29%2.46%1,024
19,280,000 1.27%2.19%925
18,756,000 1.24%2.04%888
24,717,291 1.45%2.63%1,205
27,741,081 1.62%(1)1,337
157
CITY OF LINO LAKES, MINNESOTA
RATIOS OF NET GENERAL BONDED DEBT
Last Ten Fiscal Years
General Special Total
Fiscal Obligation Assessments Primary
Year Bonds Payable Government
2007 $11,569,000 $12,520,000 $24,089,000
2008 11,184,000 11,365,000 22,549,000
2009 10,712,000 10,265,000 20,977,000
2010 10,141,000 9,175,000 19,316,000
2011 9,421,000 7,985,000 17,406,000
2012 10,331,000 7,095,000 17,426,000
2013 9,610,000 5,975,000 15,585,000
2014 9,036,000 7,640,000 16,676,000
2015 16,377,291 6,620,000 22,997,291
2016 18,337,081 7,795,000 26,132,081
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for population data.
Governmental Activities
158
Table 10
Less: Amounts Percentage
Per Available in Debt Net of Assessed Per
Capita (Total)Service Funds Bonded Debt Market Value Capita (Net)
$1,213 $3,925,402 $20,163,598 1.05%$1,016
1,128 3,405,272 19,143,728 0.95%958
1,033 3,457,349 17,519,651 0.82%863
955 2,986,102 16,329,898 0.82%808
849 2,638,129 14,767,871 0.82%720
845 3,035,557 14,390,443 0.88%698
748 3,357,196 12,227,804 0.80%587
789 2,501,738 14,174,262 0.94%671
1,121 2,813,226 20,184,065 1.19%984
1,259 8,420,263 17,711,818 1.04%854
159
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
As of December 31, 2016
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Overlapping debt:
Anoka County $116,115,411 6.2%$7,197,130
ISD 12 102,018,685 44.0%44,840,882
ISD 624 86,195,000 3.3%2,803,620
ISD 831 162,965,000 7.2%11,733,873
Metropolitan Council 1,442,296,908 0.6%8,183,009
Rice Creek Watershed District 381,459 32.3%123,351
Anoka County Railroad Authority 49,985,000 6.2% 3,098,198
Total Overlapping 77,980,063
City of Lino Lakes Direct Debt $27,741,081 100%27,741,081
Total Direct and Overlapping Debt:$105,721,144
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer
is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Sources: taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
160
CITY OF LINO LAKES, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2016
Market value $1,699,288,883
Applicable percentage 3%
Debt limit 50,978,666
Debt applicable to limit:
Total bonded debt 24,787,081
Less:
Special assessment bonds (7,795,000)
Tax abatement bonds (3,355,000)
Tax increment bonds (2,025,000)
Utility revenue bonds (1,490,000)
10,122,081
Legal debt margin $40,856,585
Net Debt
Net Debt Legal Amount of Debt Applicable
Fiscal Debt Applicable to Debt Applicable to to Limit
Year Population Limit Limit Margin Debt Limit Per Capita
2007 19,851 $38,556,150 $4,039,000 $34,517,150 10.48% $203
2008 19,987 60,658,830 3,804,000 56,854,830 6.27% 190
2009 20,305 64,036,746 3,642,000 60,394,746 5.69% 179
2010 20,216 60,622,086 3,386,000 57,236,086 5.59% 167
2011 20,505 54,123,645 2,961,000 51,162,645 5.47% 144
2012 20,625 49,213,676 4,591,000 44,622,676 9.33% 223
2013 20,833 45,595,717 4,280,000 41,315,717 9.39% 205
2014 21,129 45,297,635 4,191,000 41,106,635 9.25% 198
2015 20,519 50,830,982 11,941,250 38,889,732 23.49% 582
2016 20,750 50,978,666 10,122,081 40,856,585 19.86% 488
Legal Debt Margin Calculation for Fiscal Years 2007 Through 2016
161
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13
Last Ten Fiscal Years
(2) (2)
Personal Per
Income Capita (3) (4)
Fiscal (1)(thousands Personal School Unemployment
Year Population of dollars)Income Enrollment Rate
2007 19,851 $759,718 $38,271 6,846 4.8%
2008 19,987 781,132 39,082 6,768 6.9%
2009 20,305 768,341 37,840 6,725 7.8%
2010 20,216 777,912 38,480 6,523 7.1%
2011 20,505 831,170 40,535 6,426 5.9%
2012 20,625 857,753 41,588 6,421 5.6%
2013 20,833 879,903 42,236 6,392 4.5%
2014 21,129 917,252 43,412 6,410 3.4%
2015 20,519 934,764 45,556 6,371 3.3%
2016 20,750 Not available Not available 6,473 3.9%
Sources:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census and 2016 which is a city estimate.
(2) Information from Bureau of Economic Analysis Report. Anoka County statistics used as local information is unavailable.
(3) Information from ISD # 12 website.
(4) Information from MN Department of Employment and Economic Development. Anoka County statistics used as local
information is unavailable.
162
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS Table 14
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank
Employment(1)Employees Rank
Employment(1)
State of Minnesota Corrections 447 1 22.7% 600 1 33.6%
ISD 12 - Centennial Schools 391 2 19.8% - - -
Target Corporation 200 3 10.1% 240 3 13.4%
Taylor Corporation 200 4 10.1% 260 2 -
Anoka County Juvenile Center 130 5 6.6% 160 5 9.0%
Molin Concrete Products 130 6 6.6% 135 6 7.6%
Rehbein Transit, Inc.130 7 6.6% - - -
Kohls 123 8 6.2% - - -
YMCA 120 9 6.1% - - -
Distribution Alternatives 100 10 5.1% - - -
Synovis Interventional Systems - - - 160 4 9.0%
Summit Fire Protection - - - 100 7 5.6%
Nol-Tech Systems, Inc - - - 70 8 3.9%
Customer Manufacturing - - - 60 9 3.4%
Total 1,971 1,785
(1)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
Information about the 10th largest employer of 2007 is not available.
Source: City of Lino Lakes Official Statements and employer surveys
2016 2007
163
CITY OF LINO LAKES, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2007 2008 2009 2010
General Government:
Administration 5.00 5.00 5.00 4.00
Seniors 0.63 0.63 0.63 0.63
Finance 3.50 3.50 3.50 3.00
Economic Development 1.00 1.00 1.00 1.00
Planning 2.00 2.00 2.00 2.00
Community Development 2.75 2.75 2.75 2.25
Engineering - - - -
Building 1.00 1.00 1.00 1.00
Other 1.40 1.40 1.40 1.40
Total General Government 17.28 17.28 17.28 15.28
Public Safety:
Sworn Officers 26.00 27.00 27.00 27.00
Civilians 4.75 4.75 4.75 4.25
Fire - - - -
Building Inspection 4.25 4.25 4.25 2.75
Total Public Safety 35.00 36.00 36.00 34.00
Public Works:
Streets 7.35 7.35 7.35 6.85
Other 1.15 1.15 1.15 1.15
Total Public Works 8.50 8.50 8.50 8.00
Parks, Recreation and Forestry 9.80 9.80 9.80 9.30
Water 2.15 2.15 2.15 2.15
Sewer 2.15 2.15 2.15 2.15
Total 74.88 75.88 75.88 70.88
Source: City Finance Office
Full-time-Equivalent Employees as of December 31,
164
Table 15
2011 2012 2013 2014 2015 2016
3.50 3.50 3.50 3.50 3.50 4.00
- - - - - -
3.00 3.00 3.00 3.00 3.00 3.50
1.00 1.00 - - - -
1.00 1.00 1.00 1.00 1.00 1.00
2.00 2.00 2.00 2.00 2.00 2.00
- - - - - -
- - - - - -
0.70 0.70 0.70 0.70 0.70 0.65
11.20 11.20 10.20 10.20 10.20 11.15
25.00 25.00 25.00 25.00 26.00 27.00
4.00 3.00 3.00 4.00 4.00 4.50
- - - 1.00 1.00 1.50
2.50 2.50 2.50 2.00 2.00 2.50
31.50 30.50 30.50 32.00 33.00 35.50
7.00 7.00 7.00 7.00 7.00 6.50
1.00 1.00 1.00 1.00 1.00 1.50
8.00 8.00 8.00 8.00 8.00 8.00
9.00 9.00 8.70 8.70 8.70 7.75
2.15 2.15 2.30 2.30 2.30 2.30
2.15 2.15 2.30 2.30 2.30 2.30
64.00 63.00 62.00 63.50 64.50 67.00
Full-time-Equivalent Employees as of December 31,
165
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2007 2008 2009 2010
General Government:
Elections 1 2 1 2
Registered voters 10,908 12,723 11,805 12,284
Number of votes cast 2,337 11,051 4,354 8,545
Voter participation (registered)21.4%86.9%36.9%69.6%
Public Safety:
Police:
Calls for Service 7,053 6,871 6,353 6,398
Traffic Citations & Warnings 3,805 3,252 3,187 2,743
Part I Crime Rate 1,279 1,461 1,075 982
Part II Crime Rate 3,432 3,767 3,151 2,911
Inspections:
Building Permits (1)2,297 5,041 1,535 509
Value of Building Permits $30,539,559 $15,852,780 $9,586,160 $11,295,493
Public Works:
General Maintenance (hours)6,758 6,129 5,870 4,945
Street Mantenance (hours)2,916 3,851 3,267 3,099
Fleet Maintenance (hours)4,144 5,043 4,782 4,850
Snow Plowing/Sanding (hours)1,425 1,353 950 1,638
Culture and Recreation:
Parks
Park Maintenance (hours)10,939 11,136 12,406 9,257
Utilities:
Water Maintenance (hours)4,256 5,716 5,041 3,560
Sanitary Sewer Maintenance (hours)4,148 3,760 3,486 3,531
(1) 1,565, 4,337 and 581 repair permits issued in 2007 - 2009, respectively, due to storm damage
Source: Various City Departments
166
Table 16
2011 2012 2013 2014 2015 2016
121211
11,705 13,478 12,020 12,610 12,143 13,636
4,314 11,546 1,575 7,854 4,085 11,562
36.9% 85.7% 13.1% 62.3% 33.6% 84.8%
6,384 6,344 6,210 6,281 6,210 6,210
2,604 2,694 2,597 2,296 2,199 2,199
1,117 983 918 631 1,226 1,091
2,911 2,396 2,144 1,836 2,395 3,635
452 459 490 431 654 761
$11,192,264 $10,751,626 $17,683,665 $13,535,514 $26,570,593 $53,390,619
7,416 6,939 3,994 5,200 7,839 5,534
4,352 5,926 5,740 3,840 3,347 4,053
4,214 3,945 4,548 4,746 4,322 4,437
1,534 594 1,639 2,141 754 960
9,813 9,739 8,480 8,537 8,332 9,698
3,568 3,585 3,119 3,189 3,240 3,539
3,557 3,517 3,109 3,178 3,240 3,539
167
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17
Last Ten Fiscal Years
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Public Safety:
Police:
Stations 1111111111
Patrol Units 12 12 12 12 12 12 12 12 12 12
Fire:
Stations 1111111122
Fire Trucks 5555555577
Public Works:
Lights 673 673 673 673 673 673 673 673 673 815
Vehicles 29 29 29 29 29 29 29 29 29 39
City Streets (miles)96.1 100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 114.9
Culture & Recreation:
Parks:
Parks 18 18 18 18 18 18 18 18 18 17
Park Acres 141 141 141 141 141 141 141 141 141 139.6
Trails (miles)26 26 26 26 26 26 26 26 26 29.75
Park Shelters 7777666666
Basketball Courts 6666666666
Fishing Pier 1111111111
Skating Rinks 4444444444
Soccer Fields 8888888886
Baseball/Softball Fields 20 20 20 20 20 20 20 20 20 8
Tennis Courts 2222222222
Playgrounds 16 16 16 16 16 16 16 16 16 15
Water:
Distribution System (miles)64.7 74.7 74.7 74.7 74.7 74.7 74.7 74.7 74.7 85.6
Water Connections 4,112 4,247 4,340 4,382 4,424 4,424 4,484 4,520 4,520 4,649
Gallons Pumped (millions)595 590 589 498 492 609 536 536 449 452
Number of Fire Hydrants 538 538 538 538 538 538 538 538 1024 1024
Water Tower Capacity (millions gallons)2222222222
Sanitary Sewer:
Collection System (miles)64.5 69.8 69.8 69.8 69.8 69.8 69.8 69.8 77.9 77.9
Sewer Connections 4,428 4,447 4,486 4,530 4,567 4,567 4,624 4,685 4,685 4,817
Storm Sewer:
Pipe (miles)34.3 41.4 41.4 41.4 41.4 41.4 41.4 41.4 41.4 53.7
Source: Various City Departments
168
OTHER INFORMATION (UNAUDITED)
169
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF LONG-TERM DEBT
December 31, 2016
Final
Interest Issue Maturity
Rates Date Date
Long-term debt:
General Obligation Bonds:
2013A Certificates of Indebtedness 1.00%2/1/13 12/31/16
2014A Certificates of Indebtedness 1.00%2/1/14 12/31/17
2015A Certificates of Indebtedness 1.00%2/1/15 12/31/18
2015B Certificates of Indebtedness 1.50% 8/25/15 12/31/20
2016A Certificates of Indebtedness 1.00%2/1/16 12/31/19
G.O. Tax Abatement Bonds, Series 2006C 4.00% - 4.30% 8/15/06 2/1/17
G.O. Utility Revenue Bonds, Series 2006D 4.00% - 4.15% 8/15/06 2/1/17
G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/06 2/1/18
G.O. TIF Bonds, Series 2007A 4.00% - 4.125% 7/15/17 2/1/24
G.O. Refunding Bonds, Series 2012A 1.00% - 2.00% 11/15/12 2/1/24
G.O. Bonds 2015A 2.00% - 3.00% 8/1/15 2/1/31
EDA Lease Revenue Bonds 2015B 2.00% - 3.00% 10/1/15 4/1/36
G.O. Utility Revenue Bonds, Series 2016A 2.00% 11/23/16 2/1/27
G.O. Tax Abatement Refunding Bonds 2016C 1.00% - 1.50% 11/23/16 2/1/23
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2005A 4.35% - 5.15% 11/1/05 2/1/17
G.O. Imp & Utility Revenue Bonds, Series 2010A 2.00% - 3.00% 7/9/10 2/1/20
G.O. Improvement Bonds, Series, 2013A 1.25% - 4.00% 7/15/13 2/1/24
G.O. Improvement Bonds, Series 2014A 0.40% - 2.30% 11/20/14 2/1/26
G.O. Improvement Refunding Bonds, Series 2016B 0.875% - 1.50% 11/23/16 2/1/21
Total Special Assessment Bonds
G.O. Improvement Note, Series 2009A 3.70% - 4.00% 8/1/09 8/1/20
G.O. Capital Note, Series 2016A 2.00% 4/14/16 2/1/26
Total long-term debt
170
Exhibit 1
Payable Payable Principal
Original Prior January 1, December 31, Due in
Issue Payments 2016 Issued Payments 2016 2017
$193,000 $128,000 $65,000 $ - $65,000 $ - $ -
495,000 160,000 335,000 - 167,000 168,000 168,000
198,250 - 198,250 - 65,000 133,250 67,000
963,000 - 963,000 - 177,000 786,000 193,000
469,000 - - 469,000 - 469,000 155,000
2,460,000 535,000 1,925,000 - 170,000 1,755,000 1,755,000
570,000 435,000 135,000 - 65,000 70,000 70,000
2,990,000 1,780,000 1,210,000 - 380,000 830,000 405,000
4,215,000 1,810,000 2,405,000 - 380,000 2,025,000 400,000
2,015,000 290,000 1,725,000 - 230,000 1,495,000 225,000
3,095,000 - 3,095,000 - - 3,095,000 190,000
4,350,000 - 4,350,000 - - 4,350,000 165,000
1,420,000 - - 1,420,000 - 1,420,000 -
1,600,000 - - 1,600,000 - 1,600,000 -
25,033,250 5,138,000 16,406,250 3,489,000 1,699,000 18,196,250 3,793,000
5,550,000 2,790,000 2,760,000 - 400,000 2,360,000 2,360,000
1,000,000 475,000 525,000 - 100,000 425,000 100,000
615,000 60,000 555,000 - 60,000 495,000 60,000
2,645,000 - 2,645,000 - 105,000 2,540,000 370,000
1,975,000 - - 1,975,000 - 1,975,000 -
11,785,000 3,325,000 6,485,000 1,975,000 665,000 7,795,000 2,890,000
4,260,000 2,540,000 1,720,000 - 375,000 1,345,000 390,000
294,525 - - 294,525 30,525 264,000 30,525
$41,372,775 $11,003,000 $24,611,250 $5,758,525 $2,769,525 $27,600,250 $7,103,525
2016
171
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2016
Year of Certificates of Certificates of Certificates of Certificates of
Levy/Indebtedness Indebtedness Indebtedness Indebtedness
Collection 2014A 2015A 2015B 2016A
2016/2017 $178,164 $71,749 $215,030 $172,189
2017/2018 - 70,258 214,090 167,097
2018/2019 - - 213,119 167,559
2019/2020 - - 214,216 -
2020/2021 - - - -
2021/2022 - - - -
2022/2023 - - - -
2023/2024 - - - -
2024/2025 - - - -
2025/2026 - - - -
2026/2027 - - - -
2027/2028 - - - -
2028/2029 - - - -
2029/2030 - - - -
2030/2031 - - - -
2031/2032 - - - -
2032/2033 - - - -
2033/2034 - - - -
2034/2035 - - - -
$178,164 $142,007 $856,455 $506,845
85
172
Exhibit 2
G.O.
G.O. CIP G.O. EDA Lease Tax Abatement
Refunding Refunding G.O.Revenue Refunding
Bonds Bonds Bonds Bonds Bonds
2006E 2012A 2015A 2015B 2016C Total
$464,100 $177,692 $273,223 $317,717 $261,560 $2,131,423
- 176,390 274,378 319,397 276,176 1,497,786
- 180,012 270,178 315,722 289,097 1,435,687
- 178,080 271,228 317,297 301,571 1,282,392
- 175,896 266,923 316,877 313,567 1,073,263
- 178,794 267,868 316,299 325,054 1,088,015
- 176,109 273,958 320,814 - 770,881
- - 274,588 319,764 - 594,353
- - 269,863 318,557 - 588,420
- - 269,798 317,192 - 586,989
- - 222,364 315,669 - 538,033
- - 222,626 319,239 - 541,866
- - 222,758 317,244 - 540,002
- - 221,708 320,342 - 542,049
- - - 317,231 - 317,231
- - - 319,200 - 319,200
- - - 318,780 - 318,780
- - - 317,940 - 317,940
- - - 316,680 - 316,680
$464,100 $1,242,972 $3,601,461 $6,041,963 $1,767,024 $14,800,989
86
173
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2016
Certificates of Certificates of Certificates of Certificates of
Indebtedness Indebtedness Indebtedness Indebtedness
2014A 2015A 2015B 2016A
Bonds payable $168,000 $133,250 $786,000 $469,000
Future interest payable 1,680 1,996 29,670 13,709
$169,680 $135,246 $815,670 $482,709
Payments to maturity:
2017 $169,680 $68,333 $204,790 $163,989
2018 - 66,913 203,895 159,140
2019 - - 202,970 159,580
2020 - - 204,015 -
2021 - - - -
2022 - - - -
2023 - - - -
2024 - - - -
2025 - - - -
2026 - - - -
2027 - - - -
2028 - - - -
2029 - - - -
2030 - - - -
2031 - - - -
2032 - - - -
2033 - - - -
2034 - - - -
2035 - - - -
2036 - - - -
$169,680 $135,246 $815,670 $482,709
174
Exhibit 3
Page 1 of 2
G.O. Tax G.O. Utility G.O. CIP G.O.
Abatement Revenue Refunding G.O. TIF Refunding G.O.
Bonds Bonds Bonds Bonds Bonds Bonds
2006C 2006D 2006E 2007A 2012A 2015A
$1,755,000 $70,000 $830,000 $2,025,000 $1,495,000 $3,095,000
37,448 1,453 33,600 323,825 74,403 559,468
$1,792,448 $71,453 $863,600 $2,348,825 $1,569,403 $3,654,468
$1,792,448 $71,453 $430,100 $473,926 $241,311 $257,113
- - 433,500 252,126 244,660 258,262
- - - 254,326 242,590 259,312
- - - 261,026 170,520 255,312
- - - 267,126 168,560 256,263
- - - 272,504 166,400 252,163
- - - 282,016 169,001 253,013
- - - 285,775 166,361 258,712
- - - - - 259,263
- - - - - 254,481
- - - - - 254,362
- - - - - 209,400
- - - - - 209,587
- - - - - 209,150
- - - - - 208,075
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
$1,792,448 $71,453 $863,600 $2,348,825 $1,569,403 $3,654,468
175
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2016
G.O. Tax
EDA Lease G.O. Utility Abatement G.O.
Revenue Revenue Refunding Improvement
Bonds Bonds Bonds Bonds
2015B 2016A 2016C 2005A
Bonds payable $4,350,000 $1,420,000 $1,600,000 $2,360,000
Future interest payable 1,637,193 164,864 82,880 60,118
$5,987,193 $1,584,864 $1,682,880 $2,420,118
Payments to maturity:
2017 $299,237 $19,564 $13,967 $2,420,118
2018 300,888 157,100 244,150 -
2019 302,437 159,450 261,678 -
2020 298,937 161,700 273,770 -
2021 299,488 158,900 285,422 -
2022 299,012 156,100 296,605 -
2023 298,388 158,250 307,288 -
2024 302,538 155,350 - -
2025 301,462 152,450 - -
2026 300,237 154,500 - -
2027 298,863 151,500 - -
2028 297,338 - - -
2029 300,587 - - -
2030 298,613 - - -
2031 301,106 - - -
2032 298,062 - - -
2033 298,800 - - -
2034 298,200 - - -
2035 297,200 - - -
2036 295,800 - - -
$5,987,193 $1,584,864 $1,682,880 $2,420,118
176
Exhibit 3
Page 2 of 2
G.O.
G.O. Imp & G.O. G.O. Improvement G.O.
Utility Revenue Improvement Improvement Refunding Improvement G.O. Capital
Bonds Bonds Bonds Bonds Note Note
2010A 2013A 2014A 2016B 2009A 2016A Total
$425,000 $495,000 $2,540,000 $1,975,000 $1,345,000 $264,000 $27,600,250
26,175 74,940 156,725 69,357 165,505 24,321 3,539,330
$451,175 $569,940 $2,696,725 $2,044,357 $1,510,505 $288,321 $31,139,580
$111,250 $75,780 $402,223 $16,309 $450,165 $35,805 $7,717,561
113,175 74,460 399,633 501,575 454,565 36,020 3,900,062
110,025 72,900 406,158 506,780 462,415 36,217 3,436,838
116,725 71,100 401,788 505,868 143,360 36,399 2,900,520
- 69,000 406,390 513,825 - 35,739 2,460,713
- 71,500 162,055 - - 35,904 1,712,243
- 68,900 159,280 - - 36,053 1,732,189
- 66,300 161,151 - - 36,184 1,432,371
- - 162,645 - - - 875,820
- - 35,402 - - - 744,620
- - - - - - 704,725
- - - - - - 506,738
- - - - - - 510,174
- - - - - - 507,763
- - - - - - 509,181
- - - - - - 298,062
- - - - - - 298,800
- - - - - - 298,200
- - - - - - 297,200
- - - - - - 295,800
$451,175 $569,940 $2,696,725 $2,044,357 $1,510,505 $288,321 $31,139,580
177
CITY OF LINO LAKES, MINNESOTA Exhibit 4
INSURANCE IN FORCE
December 31, 2016
Amount
General Liability:
Bodily Injury/Property Damage $2,000,000
Personal Injury/Police Professional Liability 2,000,000
Medical Expense Occurrence Limit 2,500
Medical Expense Aggregate 10,000
Property Damage ($1,000 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers)36,318,702
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 250,000
Rented/Leased Equipment ($1,000 Deductible)500,000
Public Official and Employee Liability ($1,000 Deductible each occurrence)1,500,000
Automotive:
Bodily Injury and Property Damage 2,000,000
Comprehensive and Collision Actual Cash Value
Uninsured Motorists 200,000
Worker's Compensation Statutory
Employer Liability 1,500,000
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible)250,000
Coverage
84
178
CITY OF LINO LAKES, MINNESOTA Exhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Tax Capacity Tax Capacity
Values Values
2015/2016 2014/2015
Taxable valuations:
Total $18,440,817 $18,339,615
Fiscal disparities:
Distribution 2,755,743 2,639,444
Contribution (1,115,822) (1,072,910)
Less: Captured Tax Increment Value (261,525) (236,559)
$19,819,213 $19,669,590
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $7,018,572 35.025 $7,490,578 37.819
Bond and Interest 2,039,856 10.994 1,195,494 5.951
Totals $9,058,428 46.019 $8,686,072 43.770
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
85
179
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180
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited, in accordance with the 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, the financial
statements of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the City of Lino Lakes, Minnesota as of and for the
year ended December 31, 2016, and the related notes to the financial statements, which
collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements and have
issued our report thereon dated May 30, 2017.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of
Lino Lakes, Minnesota’s internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City of Lino Lakes, Minnesota’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Lino Lakes,
Minnesota’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be
prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency,
or a combination of deficiencies, in internal control that is less severe than a material
weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control
that might be material weaknesses or significant deficiencies and therefore, material
weaknesses or significant deficiencies may exist that were not identified. We did identify a
Independent Auditor’s Report on Internal Control over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
Page 2
deficiency in internal control, described in the accompanying schedule of findings and
responses as item 2016-001, that we consider to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Lino Lakes, Minnesota’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements, noncompliance
with which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our
tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
City of Lino Lakes, Minnesota’s Response to the Finding
The City of Lino Lakes, Minnesota’s response to the finding identified in our audit is described
in the accompanying schedule of findings and responses. The City of Lino Lakes, Minnesota’s
response was not subjected to the auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the City of Lino Lakes, Minnesota’s internal control or on compliance. This report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the City of Lino Lakes, Minnesota’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 30, 2017
City of Lino Lakes, Minnesota
Schedule of Findings and Responses
For The Year Ended December 31, 2016
2016-001 Financial Statement Corrections
Criteria: Audit adjustments are considered to be a deficiency in internal control as defined
by auditing standards.
Condition: While reviewing the 2015 allocation of the net pension liability, it was
determined the allocation between governmental activities and business-type activities was
not calculated correctly.
Cause: In order to implement GASB Statement No. 68 relating to pension plans, complex
calculations were required to allocate the net pension liability and related pension expense.
An oversight occurred during the allocation process.
Effect: Pension expense of governmental activities was overstated and pension expense of
business-type activities (water and sewer funds) was understated. The net effect of the total
misstatement was $0.
Recommendation: We recommend the City continue efforts to assure that all adjustments are
identified during the year-end closing process.
Views of Responsible Officials and Corrective Action Plan: It is the intent of the City’s staff
to minimize the number of audit adjustments needed each year. Staff has added procedures
to ensure similar allocations are performed correctly.
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
MINNESOTA LEGAL COMPLIANCE REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited, 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, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City of Lino Lakes, Minnesota as of and for the year ended
December 31, 2016, and the related notes to the financial statements, which collectively
comprise the City of Lino Lakes, Minnesota’s basic financial statements and have issued our
report thereon dated May 30, 2017.
The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor
pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be tested: contracting
and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and
disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all
of the listed categories.
In connection with our audit, nothing came to our attention that caused us to believe that City of
Lino Lakes, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance
Audit Guide for Cities, except as described as item 2016-002. However, our audit was not
directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we
performed additional procedures, other matters may have come to our attention regarding the
City of Lino Lakes, Minnesota’s noncompliance with the above referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the
results of that testing, and not to provide an opinion on compliance. Accordingly, this
communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
2016-002 Investments
Criteria: Minnesota Statute 118A.04 provides authority for governmental entities to
invest public funds, subject to certain conditions which limit an entity’s credit risk.
Condition: The City has investments in two fixed income mutual funds which totaled
$1,546,355 at December 31, 2016. A portion of each fund’s holdings does not appear to
meet the conditions set forth in Statute 118A.04 based on the credit ratings of the fund’s
investments. According to each fund’s website, approximately 30% of fund A’s holdings
and 32% of fund B’s holdings were rated below “A” as of April 30, 2017.
Cause: Based on City records, both mutual funds have been held since 1993 and may have
been donated to the City at that time.
Effect: Each fund has the potential for its investments to decrease in value, although, the
average rate of return over the past 10 years for both funds is positive.
Recommendation: We recommend the City sell any investments which do not meet the
criteria established by Minnesota Statute 118A.04.
Views of Responsible Officials and Planned Corrective Action: In working with the City’s
investment broker, staff determined the best course of action was to sell these investments in
order to comply with Minnesota Statute 118A.04 and the City’s investment policy. Both
mutual funds were sold on May 24, 2017. Going forward, any donated investments will
immediately be liquidated if they do not comply with statutes or the City’s investment
policy.
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of City of Lino Lakes,
Minnesota (the City) for the year ended December 31, 2016. Professional standards require that
we provide you with information about our responsibilities under generally accepted auditing
standards and Government Auditing Standards, as well as certain information related to the
planned scope and timing of our audit. We have communicated such information in our letter to
you dated January 4, 2017. Professional standards also require that we communicate to you the
following information related to our audit.
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies.
The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies
was not changed during 2016. However, GASB Statement No. 72, Fair Value Measurement and
Application, GASB Statement No. 77, Tax Abatement Disclosures, and GASB Statement No. 79,
Certain External Investment Pools and Pool Participants, were implemented during 2016 which
enhanced disclosures regarding investments and tax increment financing districts. We noted no
transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial
statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and current
events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility
that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the City’s financial statements were estimates of the net pension
liability ($13,547,082) and the pension related deferred outflows and deferred inflows of
resources. These estimates are based on actuarial studies. We evaluated the key factors and
assumptions used to develop these estimates in determining that they are reasonable in relation to
the financial statements taken as a whole.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 2
Certain financial statement disclosures are particularly sensitive because of their
significance to financial statement users. Determining sensitivity is subjective, however, we
believe the disclosures most likely to be considered sensitive are Note 8 – Defined Benefit
Pension Plans - PERA, Note 20 – Special Item, and Note 21 – Prior Period Adjustment.
The financial statement disclosures are neutral, consistent and clear.
Difficulties Encountered in Performing the Audit
We encountered no difficulties in dealing with management in performing and completing
our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are clearly trivial, and communicate them to the
appropriate level of management. There were no uncorrected misstatements that have an effect
on our opinion on the financial statements. One material misstatement was detected relating to
the allocation of the net pension liability at December 31, 2015, and was subsequently corrected
by management by restating beginning net position.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting,
reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant
to the financial statements or the auditor’s report. We are pleased to report that no such
disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated May 30, 2017.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing
and accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the City’s financial statements or
a determination of the type of auditor’s opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting
principles and auditing standards, with management each year prior to retention as the City’s
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the
budgetary comparison schedule, the schedule of funding progress, and the schedules of pension
information, which are required supplementary information (RSI) that supplements the basic
financial statements. Our procedures consisted of inquiries of management regarding the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We did not audit the RSI and do not
express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund financial
statements and schedules which accompany the financial statements but are not RSI. With
respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the
information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to
prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory section, the statistical section or the
other information which accompany the financial statements but are not RSI. Such information
has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Restrictions on Use
This information is intended solely for the use of the City Council and management of the
City of Lino Lakes, Minnesota and is not intended to be, and should not be, used by anyone other
than these specified parties.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 30, 2017
City of Lino Lakes, Minnesota2016 Audit ReviewJune 5, 2017Andy Hering, CPAPhone: 651‐407‐5877Email: ahering@redpathcpas.com1
Reports Issued by AuditorOpinion on the Fair Presentation of the Financial StatementsReport on Internal ControlsReport on Minnesota Legal Compliance Communication to Those Charged with Governance2
Opinion on Financial StatementsWhat did we do?•Audited the financial statements, which are the responsibility of management.How did we do it?•Audit Standards–GAAS (AICPA)–GAGAS (GAO)•Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.What is the result?•An unmodified opinion was issued on the 2016 financial statements.3
Excellence in Financial Reporting4
Report on Internal ControlsWhat did we do?•We gained an understanding of internal controls in place and their effectiveness in order to design our audit procedures for expressing an opinion on the financial statements.How did we do it?•Obtain understanding of controls on each major class of transaction and account balance.•Select a sample of transactions and perform detailed tests to determine adherence to controls in place and effectiveness.What is the result?•One finding on internal control over financial reporting related to correcting a prior year allocation.5
Report on Minnesota Legal ComplianceWhat did we do?•Followed the audit guide published by the Office of the State Auditor. The guide consists of seven sections:–Depositories of public funds and investments–Conflicts of interest–Public indebtedness–Contracting bid laws–Claims and disbursements–Tax increment–Miscellaneous provisionsHow did we do it?•Select sample of transactions to test for compliance with statutory provisions.What is the result?•One finding of noncompliance related to investments.6
Communication to Those Charged with GovernanceAccounting policies used and/or changed.•New disclosures regarding tax increment districts, the fair value of investments, and external investment pools.Accounting estimates in the financial statements.•Net Pension Liability ($13,547,000)No difficulties encountered in performing the audit.No disagreements with management.Other Matters•Special item – withdrawal from fire district.•More changes in accounting standards on the way.•Property tax collection rate – 99.6% for 2016.7
Pensions8General PoliceEmployees and FirePlan Plan Total1Change in net pension liability:2 Change in actuarial assumptions (1)$615,000 $5,720,000 $6,335,0003 Change in proportion (2)(89,000) 95,000 6,0004 Experience difference (3)(188,000) (811,000) (999,000)5 Earnings difference (4)454,000 1,202,000 1,656,0006 Lino Lakes' share of 2016 pension expense 405,000 1,786,000 2,191,0007 Contributions to the plan by City of Lino Lakes (180,000) (404,000) (584,000)8 Contributions to the plan by State of Minnesota ‐ (23,000) (23,000)9 Increase in net pension liability 1,017,000 7,565,000 8,582,00010Beginning net pension liability 2,125,000 2,829,000 4,954,00011Ending net pension liability $3,142,000 $10,394,000 $13,536,0001. The assumed investment return was changed from 7.9% to 7.5% for General and to 5.6% for Police and Fire. The assumed post‐retirement benefit increase was reduced.2. The City's proportionate share of the total NPL decreased.3. This is the change between expected and actual experience in the measurement of the pension liability.4. This is the difference between projected and actual earnings on plan investments.
Summary of Financial Activity9IncreaseInterfund (Decrease) Fund CashBonds Transfers in Fund Balance BalanceFund Type Revenues Expenditures Issued (Net) Balance 12/31/2016 12/31/2016General Fund$9,417,000 $8,904,000 $ ‐ ($203,000) $310,000 $6,256,000 $6,044,000Special Revenue Funds220,000 209,000 ‐ (9,000) 2,000 482,000 267,000Debt Service Funds4,236,000 3,647,000 3,575,000 1,618,000 5,782,000 5,739,000 8,393,000Capital Project Funds4,842,000 3,955,000 1,930,000 (1,126,000) 1,691,000 15,239,000 13,776,000Permanent Fund14,000 24,000 ‐ ‐ (10,000) 114,000 138,000Enterprise Funds5,599,000 3,218,000 ‐ (280,000) 2,101,000 45,724,000 13,470,000Total $24,328,000 $19,957,000 $5,505,000 $ ‐ $9,876,000 $73,554,000 $42,088,000Notes:•Debt service funds – approximately $3.5M of additional cash on hand at 12/31 related to the refunding of two bonds issued in 2016•Capital project funds ‐$1.1M from Centennial F.D. included in revenue•Enterprise funds – unrestricted fund balance = $13.9M
General Fund Summary10FavorableFinal (Unfavorable)Budget Actual VarianceRevenues $9,232,000 $9,417,000 $185,000Expenditures 9,020,000 8,904,000 116,000Revenues over expenditures 212,000 513,000 301,000Other financing sources (uses): Transfers in 478,000 488,000 10,000 Transfers out (690,000) (691,000) (1,000) Total other financing sources (uses) (212,000) (203,000) 9,000Net change in fund balance $0 $310,000 $310,000
General Fund 5 Year History11Fund BalanceInterfund Ending as a Percent ofTransfers Increase Fund Expenditures &Revenues Expenditures (Net) (Decrease) Balance Transfers Out2012 $8,666,000 $8,195,000 ($842,000) ($371,000) $5,234,000 58%2013 8,696,000 7,988,000 (556,000) 152,000 5,386,000 63%2014 8,729,000 8,253,000 (555,000) (79,000) 5,307,000 60%2015 9,350,000 8,601,000 (110,000) 639,000 5,946,000 65%2016 9,417,000 8,904,000 (203,000) 310,000 6,256,000 65%
General Fund Monthly Cash Balances12
Special Revenue Funds13Change FundInterfund in Fund BalanceFund Revenue Expenditures Transfers Balance 12/31/2016 CommentsProgram Recreation $114,600 $150,700 ($10,000) ($46,100) $38,100Fund balance has decreased by $76,000 over the past two years. $10,000 annual transfers to General Fund.Economic Development Authority ‐ 1,000 1,200 200 224,800EDA has a $225,000 promissory note receivable due in 2037. Cable TV Fund 53,800 ‐ ‐ 53,800 134,100$52,807 of franchise fee revenue collected in 2016.Blue Heron Days 20,300 21,900 ‐ (1,600) 11,600Expenditures are supported by contributions and donations.Federal Narcotics 300 20,300 ‐ (20,000) 29,900Funds used to purchase 6 portable police radios in 2016.State Narcotics 13,700 10,300 ‐ 3,400 13,200 Routine activity for 2016.DUI Forfeitures 17,300 4,400 ‐ 12,900 29,900 Routine activity for 2016. Totals $220,000 $208,600 ($8,800) $2,600 $481,600
Debt Service Funds14Final MaturityDelinquent Scheduled Final Fund Taxes and Deferred Outstanding MaturityBalance Future Assmts Tax Levies Total Debt DateSpecial Assessment Debt:Improvement Bonds of 2005A $226,135 $2,994,379 $ ‐ $3,220,514 $2,360,000 (1) 2/1/17Improvement Note of 2009A 22 2,809,742 ‐ 2,809,764 1,345,000 8/1/20Imp and Utility Bonds of 2010A 66,302 649 ‐ 66,951 425,000 2/1/20Improvement Bonds of 2013A 298,358 491,147 ‐ 789,505 495,000 2/1/24Improvement Bonds of 2014A 985,766 600,514 ‐ 1,586,280 2,540,000 2/1/26Improvement Bonds of 2016B (450) ‐ ‐ (450) 1,975,000 (1) 2/1/21Other Debt Supported by Taxes and User Fees:Certificates of Indebtedness 156,762 3,513 1,683,471 1,843,746 1,556,250 12/31/17‐20Improvement Bonds of 2005B 31,102 12,566 ‐ 43,668 ‐ ‐ Tax Abatement Bonds of 2006C 1,857,107 2,718 ‐ 1,859,825 1,755,000 (2) 2/1/17Utility Revenue Bonds of 2006D 187,882 41,648 ‐ 229,530 70,000 2/1/17CIP Bonds of 2006E 935,181 4,713 464,100 1,403,994 830,000 2/1/18TIF Bonds of 2007A 149,696 ‐ ‐ 149,696 2,025,000 2/1/24Bonds of 2012A 358,926 38,170 1,242,972 1,640,068 1,495,000 2/1/24Bonds of 2015A 240,260 933 3,601,461 3,842,654 3,095,000 2/1/31Lease Revenue Bonds of 2015B 247,263 1,083 6,041,963 6,290,309 4,350,000 4/1/36Capital Note of 2016A 113 ‐ ‐ 113 264,000 2/1/26Utility Revenue Bonds of 2016A (450) ‐ ‐ (450) 1,420,000 2/1/27Tax Abatement Bonds of 2016C (450) ‐ 1,767,024 1,766,574 1,600,000 (2) 2/1/23Total special assessment debt $5,739,525 $7,001,775 $14,800,991 $27,542,291 $27,600,250(1) The 2016B bonds refunded the 2005A bonds. Any remaining resources of the 2005A bond fund are dedicated to the 2016B bonds.(2) The 2016C bonds refunded the 2006C bonds. Any remaining resources of the 2006C bond fund are dedicated to the 2016C bonds.Fund DescriptionDecember 31, 2016
15Capital Project FundsRevenue Change Fundand Bond Interfund in Fund BalanceFund Proceeds Expenditures Transfers Balance 12/31/2016 CommentsClosed Bond Fund $23,700 $7,200 ($378,100) ($361,600) $879,600 Transfer to the General FundBuilding and Facilities 179,700 195,000 ‐ (15,300) 2,538,400 Re‐roof Fire Station # 1 ($122k)Capital Equipment Revolving 1,672,100 618,100 ‐ 1,054,000 1,097,300$1,111,834 received from Centennial Fire DistrictOffice Equipment Revolving 1,700 75,000 (75,000) (148,300) 34,200Purchased new phone system, $100k tranferred to General FundDedicated Parks 281,000 8,600 50,000 322,400 252,000Park Dedication fees rec'd relating to Saddle Club, Century Farm North, Woods Edge and Clearwater CreekArea and Unit Charge 2,180,300 22,700 (314,000) 1,843,600 6,266,200$1,859,000 of assmt revenue, transfers to fund debt service and capital projectsTax Increment Financing 1‐5 40,000 600 ‐ 39,400 248,900 TIF 1‐5 has no current obligationsTax Increment Financing 1‐10 154,600 1,100 (152,800) 700 189,100TIF revenue transferred to Improvement Bonds of 2005A fundTax Increment Financing 1‐11 102,800 2,300 (102,800) (2,300) (775,000)TIF revenue transferred to TIF Bonds of 2007A fundMSA Construction 56,500 79,600 (1,084,600) (1,107,700) 2,012,200Transfers to fund debt service and capital projectsSealcoating 79,600 721,100 514,500 (127,000) 183,200Rec'd transfer from General Fund to finance 2016 sealcoating projectsSurface Water Management 380,600 93,500 ‐ 287,100 735,400 $376,000 of assmt revenueStreet Reconstruction 19,500 ‐ ‐ 19,500 686,700 No 2016 projectsSurface Water Maintenance 100 19,500 100,700 81,300 81,300 New fund to account for maint.I‐35E Interchange 47,600 12,600 224,200 259,200 ‐ Project complete, fund closed in '16Traffic Signal 900 ‐ (114,700) (113,800) ‐ Project complete, fund closed in '16Otter Lake Road Extension 1,200 63,600 (145,200) (207,600) ‐ Project complete, fund closed in '1621st Avenue Extension 31,500 50,200 122,000 103,300 (199,600) Project nearly complete at 12/31/16Fire House # 2 Construction 1,000 36,600 ‐ (35,600) (2,300) Project nearly complete at 12/31/16Well # 6 Construction 1,700 726,700 ‐ (725,000) 22,900 Project nearly complete at 12/31/16NorthPointe Improvements 13,100 68,700 ‐ (55,600) 322,300 Project to be completed in 2017Birch St / Centerville Rd Improvements 1,300 23,400 ‐ (22,100) 133,400 Project to be completed in 20172015 Street Reconstruction 38,500 54,400 229,300 213,400 195,200 Project to be completed in 2017Blackduck / Aqua Lane Watermain Imp 1,462,600 1,073,400 ‐ 389,200 338,100 Project to be completed in 2017 Totals $6,771,600 $3,953,900 ($1,126,500) $1,691,200 $15,239,500
Enterprise Funds –Change in Net Position162016 2015 2016 2015Water Water Sewer SewerFund Fund Fund FundOperating revenue $1,095,000 $1,015,000 $1,659,000 $1,622,000Operating expenses 1,331,000 1,395,000 1,718,000 2,090,000 Operating loss (236,000) (380,000) (59,000) (468,000)Non‐operating revenue (expense) 3,000 21,000 (66,000) 31,000Capital contributions 1,974,000 1,972,000 765,000 1,324,000Transfers out (35,000) (33,000) (245,000) (33,000) Change in net position $1,706,000 $1,580,000 $395,000 $854,000Cash $4,948,000 $5,738,000 $8,523,000 $8,142,000Unrestricted net position $4,883,000 $5,823,000 $8,980,000 $8,850,000
Enterprise Funds –Cash Flow172016 2015 2016 2015Water Water Sewer SewerFund Fund Fund FundCash flows from: Operating activities $261,000 $436,000 $559,000 $411,000 Investment income 40,000 21,000 67,000 30,000 Transfers (35,000) (33,000) (245,000) (33,000) Acquisition of capital assets (1,056,000) (8,000) ‐ ‐ Increase (decrease) in cash (790,000) 416,000 381,000 408,000Cash ‐ January 1 5,738,000 5,322,000 8,142,000 7,734,000Cash ‐ December 31 $4,948,000 $5,738,000 $8,523,000 $8,142,000
WS – Item 2
WORK SESSION STAFF REPORT
Work Session Item No. 2
Date: June 5, 2017
To: City Council
From: Diane Hankee, City Engineer
Re: Arlo Lane Stop Sign Request
Background
In response to a request for a stop sign along Arlo Lane, the City Council directed the
City’s Traffic Safety Committee to evaluate an all way stop condition on Arlo Lane at the
intersections of both Joseph Street and Highland Drive. The detailed evaluation memo is
enclosed.
Traffic evaluation data was collected onsite by video and traffic counters. The result of the
data collection indicated that the vehicle and pedestrian traffic volumes were well under the
threshold for meeting all way stop warrants. These volumes were typical for residential
streets.
The speed limit on Arlo Lane is 30 mph. Speed data was collected to identify the 85th
percentile speed, which is the speed 85 percent of drivers are at or below. The data showed
the 85th percentile speed at 25 mph. There were only 2 occurrences of vehicles over 30 mph
during the 2 day monitoring period.
In summary, the intersections do not meet the warrants for all-way stop sign installation
and the following is recommended:
1. No change in existing traffic control.
2. Continue to provide police presence in the area.
3. Traffic control at the intersection should continue to be monitored and, if at any
time there are demonstrated safety concerns, the City may reevaluate the
installation of the intersection control.
Requested Council Direction
None at this time
Attachments
1. Arlo Lane Evaluation Memo
2. General Location Map
St. Cloud Minneapolis St. Paul
Equal Opportunity Employer
wsbeng.com
Technical Memorandum
To: Diane Hankee, PE Copy: Michael Grochala
City Engineer Community Development Director
City of Lino Lakes City of Lino Lakes
From: Chuck Rickart, PE, PTOE File: WSB No. 2029-240
Principal/Traffic Engineer
Date: May 10, 2017
Subject: Arlo Lane Stop Sign Review
Introduction/Background
Concerns have been raised by a resident in the Arlo Lane neighborhood over the safety and
traffic speeds along Arlo Lane. The primary concern is with the safety of pedestrians on Arlo
Lane with excessive traffic speeds. The resident requested a stop sign be installed at either the
Highland Drive or Joseph Court intersection as a possible solution.
Appropriate traffic control at an intersection is critical to the operation and safety of both
intersecting roadways. If incorrect traffic control is installed for the traffic conditions and the
topography of the intersection, undue delays and even unnecessary crashes could occur. The
traveling public, especially persons not familiar with the area, typically drive based on instinct.
Drivers subconsciously evaluate their surroundings to determine if a stop sign should or should
not be located on an intersection approach.
There are many factors to determine what the correct intersection control should be; however,
the following factors should be evaluated when determining intersection control:
Traffic Conditions: The traffic conditions of an intersection include:
• Traffic approach volume
• Speed of traffic approaching the intersection
• Number of turning vehicles in an intersection
• Vehicle makeup (i.e. trucks, buses, etc.)
• Crash history in the intersection
Topographic Conditions: The topographic conditions of the intersections are the physical
features in the area, including:
• The grade of each approaching roadway
• Location and size of adjacent buildings or structures
• Angle of the intersection
• Geometrics (number of lanes) of the intersection
Arlo Lane Stop Sign Review 2 | Page
Based on these conditions and factors, the potential intersection control can be evaluated and the
appropriate signage determined.
Traffic Control Evaluation
Several techniques have been developed to determine what type of intersection control is
warranted at specific locations. The procedures evaluating the need and location of all-way stop
sign control can be found in the Minnesota Manual on Uniform Traffic Control Devices
(MnMUTCD), Section 2B-5.
It is the policy of the City of Lino Lakes to follow the MnMUTCD when considering the
installation of traffic control devices such as Stop Signs. The warrants found in the MnMUTCD
include the following:
All-way stop sign control:
1. Where traffic signals are warranted and urgently needed, the all-way stop can be an
interim measure or;
2. Crash problem indicating that five or more reported accidents of a type susceptible to
correction by a multi-way stop sign installation in a 12-month period or;
3. Minimum traffic volumes:
a. A total vehicular volume entering the intersection from approaches must average
at least 300 vehicles per hour for any eight hours of an average day and;
b. The combined vehicular and pedestrian volume from the minor street or highway
must average at least 200 units per hour for the same eight hours, with an average
delay to minor street vehicular traffic of at least 30 seconds per vehicle during the
maximum hour but;
c. When the 85% approach speed of the major street traffic exceeds 40 MPH, the
requirements can be reduced to 70%.
The analysis procedures as outlined in the MnMUTCD were reviewed and the follow
conclusions were made based on the traffic characteristics:
1. Topography: Based on both horizontal and vertical sight distance requirements for a
30 mph street, all approaches to the intersections of Arlo Lane at Highland Drive and
Arlo Lane at Joseph Court meet these requirements.
2. Traffic and Pedestrian Volumes: Existing traffic volume data was collected at the
intersections on April 18 and 19, 2017. The counts were conducted for each approach
using video cameras. The results of the traffic counts are shown below in Table 1 and
pedestrian counts in Table 2.
Arlo Lane Stop Sign Review 3 | Page
Table 1 – Traffic Volume Summary
Intersection Approach Average
Daily Traffic
AM Peak
Hour Traffic
PM Peak
Hour Traffic
Arlo Lane, west of Joseph Ct 265 23 38
Arlo Lane, Joseph Ct to Highland Dr 425 41 61
Arlo Lane, east of Highland Dr 475 50 68
Joseph Ct, north of Arlo Ln 140 20 25
Highland Dr, north of Arlo Ln 135 19 31
These traffic volumes are similar in comparison to other local City streets which
typically range from 250 to 750 vehicles per day. These traffic counts are typical
residential volumes and are far short of the volumes required to meet all-way Stop
Sign warrants.
Table 2 – Traffic Pedestrian Volume Summary
Roadway Crossing Average Daily AM Peak
Hour
PM Peak
Hour
Arlo Lane at Joseph Ct 26 3 4
Joseph Ct 34 3 10
Arlo Lane at Highland Dr 25 1 7
Highland Dr 32 5 6
Similar to the traffic volumes the pedestrian volumes are typical for a local City
neighborhood and do not meet the required all-way Stop Sign warrants.
3. Traffic Speeds: In addition to the traffic volumes, vehicle speed data was also
collected on Arlo Lane. Below in Table 3 is a summary of speed data.
Table 3 – Speed Data Summary
Intersection Approach 85% Speed
(mph)
Highest Recorded
Speed (mph)
% Over
Speed Limit
Arlo Lane, Joseph Ct to
Highland Dr 25 36 (2 occurrences) 9%
As indicated in the table, the recorded speed is below the posted 30 mph speed limit.
Based on this data, speeding does not appear to be an issue through the intersections.
For low volume roadway such as Arlo Lane, installation of stop signs has been found
to not control speed. In fact, it has been found that at intersections where vehicles do
stop, the speed reduction is effective only in the immediate vicinity of the stop sign
and frequently speeds are higher between intersections to make up for lost time.
4. Crash History: The existing crash history in this area was reviewed. It was
determined that there have been no reported crashes at either intersection in the past 5
years.
Arlo Lane Stop Sign Review 4 | Page
Conclusions / Recommendation
Based on the review of the intersection, the traffic characteristics and the requirement found in
the MnMUTCD, it can be concluded that; the traffic volumes in this area are typical volumes for
residential streets and, the intersection does not meet the warrants for all-way stop sign
installation.
Based on these conclusions the following is recommended:
1. No change in existing traffic control.
2. Continue to provide police presence in the area.
3. Traffic control at the intersection should continue to be monitored and, if at any time
there are demonstrated safety concerns, the City may reevaluate the installation of the
intersection control.
Arlo Lane
May 22, 2 017 0 225 450112.5 ft
0 60 12030 m
1:2,400
Disclaimer: Map and parcel data are believed to be accurate, but accuracy is not guaranteed. This is not a legal document and should not be substituted for a title search,appraisal, survey, or for zoning verification.
WS – Item 3
WORK SESSION STAFF REPORT
Work Session Item No. 3
Date: June 5, 2017
To: City Council
From: Diane Hankee, City Engineer
Re: Culvert Maintenance ACD 10-22-32 Branch 2
Background
At the May 22, 2017 City Council meeting staff was directed to prepare information
regarding the Anoka County Ditch (ACD) 10-22-32 Branch 2 culvert and associated
wetland located north of the Lino Lakes Elementary school on the Kociscak parcel.
Several property owners residing on Diane Street, adjacent to the wetland, attended the
meeting and voiced their concerns over the high-water levels of the wetland and the
condition of the existing culvert. A location map is attached.
ACD 10-22-32 is managed by Rice Creek Watershed District (RCWD). The RCWD
prepared a Repair Report in 2010. The culvert, one of several along the ditch, was
replaced in 2013 with a 24 inch diameter HDPE (plastic pipe) at the existing ditch
elevation. The base flood elevation of the wetland (Pin Oak Lake) is 904.54 based on
RCWD modeling. A map from the RCWD Repair Report is attached showing the ditch
system.
The residents, City staff, and the RCWD ditch inspector found that the culvert was being
blocked by beaver activity. Prior to the City Council Meeting on May 22, 2017, City
staff received permission from Kociscak (the property owner) to clear the ditch and
culvert. Since that time, City staff has continued to monitor the culvert. Additionally the
RCWD obtained a special DNR permit for trapping the beavers. On May 26, 2017 two
beavers were removed from the area of blockage along the ditch. Since that time, the
water level of the wetland has receded approximately 1 foot (within 5 days).
Questions were also raised regarding a wetland mitigation project constructed with the
Bluebill Ponds development, in 2004. The Bluebill Ponds development created wetland
mitigation of 0.96 acres north of the ditch. This work was permitted by RCWD and the
Army Corps of Engineers. The wetland mitigation provided for additional storage and
improved flow of water from the basin. It did not add runoff to the basin.
Residents also noted that stormwater ponds within Wollan Estates required cleaning.
Within the next 3 years, the City will perform maintenance on the Wollan Estates
ponding systems as part of the City’s annual surface water management project. This
project would be completed during the winter months when the ice is thick enough to
allow construction equipment access and activity.
The City and RCWD will continue to monitor the culvert and ditch on a regular basis and
especially in the spring when the water levels are high.
Requested Council Direction
None at this time
Attachments
1. Location Map
2. RCWD Repair Report Recommended Alternative Map
SEH SmartCon nect Map
SEH
Pa rc els
Munic ipa l Bo un da ries
May 2 3, 201 7
SEH
0 0.3 0.60.1 5 mi
0 0.5 10.25 km
1:18,0 56
SEH S ma rt Co nn ect Use r
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Loch
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WatchT31N-R22WT32N-R23WT32N-R22WT32N-R23W
T31N-R23W
T32N-R22W
T31N-R22W
T31N-R23W9
18 1713
25
24 19 20 21
30 29 28
36 31 32
33
1 6 5 4
7 812
16INTERSTATE 3 5 W
G A R D E N W O O D P K W Y NENORDIN STDIANE
CT
115TH AVE NE
137TH AVE NE
TOWN CENTER
PKWY
2ND AVEAQUA CIR124TH
LN NE
79TH ST W
81ST ST W
HIGHLAND TRL ALLEN CTBEHM LN JANE AVE129TH
LN NE
ELBE STLAKE DR NECARL ST
74TH ST
ROBINSON DR
HIGHLAND
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TIMOTHY CTJOSEPH CTWAYNE CTEVERGREEN TRL
PONY
CT
OAK LNGOTLAND LNARLO LN
A P O LL O D ROPAL ST NESUNSET AVELILAC ST
ELM ST
LOIS LN
APOLLO DRTECKLA
CT EVA STINTERSTATE 35 W
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MUSTANG CT
LEA CTTERRA CTAPPALOOSA
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HUPP ST NEMARSHAN
CT LAKE DR NEJEWEL CT NESHETLAND
LN
APOLLO CTNATIONAL ST NEMORGAN LN
HEATHER CT NO A K LN
SHERWOOD
LN
77TH ST W
INDUSTRIAL BLVDNATI
ONAL CT NEDANUBE STJEANNE DRNEBULA ST NEGHIA ST NEBARBARA
LN
LAKE DRPRAIRIE
VIEW PL
LOIS LN
GREENWOOD
LN
MEADOW CTPINE ST
MAIN ST
BRADLEY
ST
117TH AVE
NE
MARVY ST
121ST AVE NE
114TH AVE NE
109TH AVE NE JON AVECONNIE LN PATTI DR135TH AVE NE
131ST LN NE
FORSHAM
LAKE DR COUNTRY LNMARCIA LN BLACKBIRD LNMYRTLE
LN
CARL ST
ANDALL
ST NE
OLIVE ST
ORANGE ST
LILAC ST
MAPLE ST
BLUEBILL LNMARSHAN LN AENON PL125TH AVE NE
N B I3 5 W T O L A K E DR HUMBER ST NE77TH ST WJODRELL ST NE4TH AVENOTTINGHAM LNL A K E D R NE TO I3 5 W
THOMAS ST 4TH AVE136TH LN NECAROLE DRLEVER ST NELEONARD AVE111TH AVE NEZODIAC ST NEOAKLAND DR138TH AVE NE
145TH AVE NE
141ST AVE NE
VILLAGE DR118TH
A
V
E NE
LAKE DRJO D R E LL ST NEC E N T U R Y TRL
T O W N CENTER P K W YPINTO LNHIGHLAND
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MARILYN DRSTAGE COACH TRLSTAGECOACH T R L
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HENRY LN
SHEILA AVE4TH A
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E4TH AVEPOST RD DIANE STDIANE ST
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N A N C Y CTWOOD DUCK TRLPINE OAKS DRANDALL ST
NATIONAL ST NELEVER CT NEKNOLL DRMARKET PLACE DRWILLO W POND T R L APOLLO ST NEMEADOW VIEW TRLW O O D D U C K TRLPARK CT
!.
Rice Creek Watershed District
ACD 10-22-32
Repair Report
¶
Anoka
Washington
Hennepin Ramsey
Project Location
Map
0 0.25 0.50.125
Miles
Figure ES-2 ACD 10-22-32 Engineer's Recommended Alternative
Scale:Drawn by:Checked by:Project No.:Date:Sheet:
AS SHOWN SMW 5555-080.10 7/30/2010 1 of 1
Br. 2
Main TrunkBr. 1Br. 1Br. 3Br. 3Main TrunkBr. 4
Br. 4aBr.
4
!?Replace/Modify Culvert
Flow Direction
To be Abandoned
Realign Branch 3
Realign Main Trunk
Repair Public Ditch to Functional Profile
Current Private System
Maintain Public Ditch
RCWD Boundary (2010)
Hydrologic Boundary
Section Lines
Township/Range
%&d(S`
S÷
Sl
Sc
Erosion Area
Repairs
Main Trunk
Sources: TLG, NWI, MNDNR
!.
Water Control
Structure 3
!.Water Control
Structure 1
!.
Br. 1a
No Main Trunk
Re-alignment
kj
kj
Repair blockage at
crushed culvert
Repair blockage at
gas line crossing
Middle Main Trunk
Re-alignment
No Pin Oak Lake
Impoundment
Lower Culvert
!.
!.
Water Control
Structure 4
Water Control
Structure 7
Water Control
Structure 6
!.
Water Control
Structure 5
Water Control
Structure 2
!.Install Water Control Structure
Page ES-11
WS – Item 4
WORK SESSION STAFF REPORT
Work Session Item No. 4
Date: June 5, 2017
To: City Council
From: Sarah Cotton, Finance Director
Re: 2018 Budget
Background
The management team is currently in the process of preparing the 2018 budget. The
proposed budget calendar is as follows:
• Friday, July 21st – Electronic Proposed Budget delivered to City Council
• Monday, July 24th – Hard Copy Proposed Budget delivered to City Council
• Monday, July 31st – Special Budget Work Session
• Monday, September 25th – Last meeting to adopt Preliminary Budget and Levy
• Monday, December 11th – Adopt Final Budget and Levy
The City was notified a few weeks ago that as of March 2, 2017, the City’s taxable
market value is estimated to increase 8.78%. This includes new construction for Pay
2018. Based on this preliminary estimate, the City’s tax levy could increase by $778,839
without raising the tax capacity rate of 45.140%. However, there are several other factors
to consider, including: (1) inflationary adjustments; (2) salary and benefit increases; (3)
capital equipment replacement; and (4) the use of fund reserves for certain expenditures
in the 2017 budget.
Requested Council Direction
None
Attachments
Memo & Salary Survey – CD Director
Cash & Investment Balance as of April 30, 2017
Summary General Fund Expenditures as of April 30, 2017
General Fund Revenues as of April 30, 2017
WS – Item 4
WORK SESSION STAFF REPORT
Work Session Item No. 4
Date: June 5, 2017
To: City Council
From: Jeff Karlson
Re: Salary Adjustment for Community Development Director
Background
In February-June 2015, I requested a six percent salary adjustment for Community
Development Director Michael Grochala over a two-year period. In 2008, a human
resources audit was conducted by Springsted, Inc., which showed Mr. Grochala was
below the market rate based on both internal and external market factors. In June 2015
the Council approved a one percent market adjustment for Michael when they approved
the 2015 non-union compensation plan.
I asked Human Resources Manager Karissa Henning to check the salary ranges posted on
the LMC Salary & Benefits Survey for community development director positions with a
population of 15,000 - $30,000 in the metro area. The survey showed that Mr. Grochala
is below the average maximum salary range by nearly $4,000. Michael’s current salary is
$112,536. The average range maximum for his position is $116,418. The cities included
in the survey are Brooklyn Center, Champlin, Chanhassen, Columbia Heights, Crystal,
Fridley, Hastings, Hopkins, New Hope, Prior Lake, Ramsey, Rosemount, Stillwater,
West St. Paul, and White Bear Lake.
I included a 3% market adjustment for Mr. Grochala in the 2018 budget to bring him in
line with the average maximum salary of other similarly-sized cities.
Requested Council Direction
The Council is being asked to consider a 3% market adjustment for Michael Grochala in
addition to any cost-of-living increase, effective January 1, 2018.
Attachments
May 2017 Salary Survey for Community Development Directors
Fund 2008 2009 2010 2011 2012 2013 2014 2015 2016 4/30/2017
General 5,196,881 5,246,546 5,459,582 5,337,583 5,054,673 5,300,509 5,078,336 5,887,986 6,113,436 3,862,576
Special Revenue Funds
Recreation Program 115,168 96,489 124,494 113,836 123,343 119,605 116,876 86,312 47,569 76,436
EDA - - - - - - - - - (404)
Cable TV - - - - - 10,618 39,331 80,237 134,072 189,722
Blue Heron Days - - - - - - 11,321 14,662 11,619 11,619
Fed Narcotics Forfeit - - - - - - 39,647 51,389 29,911 375,540
State Narcotics Forfeit 14,530 21,367 12,203 12,944 16,150 22,132 6,506 10,645 13,317 15,955
DUI Forfeit 16,598 18,717 36,711 30,061 17,058 7,806 1,668 17,430 30,127 32,075
Debt Service Funds
Closed Bond Fund 1,106,097 1,129,282 1,134,263 1,420,571 1,429,946 1,398,702 1,704,483 1,246,696 884,989 561,745
Certificates of Indebt 115,830 121,149 121,716 129,811 143,490 151,341 113,072 125,653 149,501 156,762
Lease Rev 1998A 412,558 390,676 486,798 - - - - - - -
Public Proj Refunding 1999C 354,124 358,054 270,684 - - - - - - -
GO Imp 2002A 262,748 250,676 243,523 228,292 212,835 187,564 - - - -
GO Imp 2002B 938,512 798,878 647,720 497,562 342,581 69,932 - - - -
GO Imp 2003A 54,728 96,244 122,469 147,244 595,880 129,030 - - - -
GO Imp 2003B 86,538 73,460 63,541 67,350 56,717 53,358 - - - -
GO Imp & Utility Rev 2004A 311,056 286,879 215,188 - - - - - - -
GO Imp 2005A 1,069 667 - 2 158,742 157,905 959 536,670 3,102,978 682,660
GO Imp 2005B 511,585 599,445 262,158 324,213 405,931 462,017 429,829 18,447 31,083 31,101
GO Tax Abatement 2006C 54,912 55,152 83,127 138,965 187,264 206,347 231,984 255,754 1,853,505 64,660
GO Utility Rev 2006D 15,688 34,836 50,974 67,711 83,405 95,579 153,560 179,935 188,082 116,429
GO CIP 2006E 60,531 140,040 244,784 759,335 814,525 828,858 848,690 884,319 929,085 512,280
GO TIF 2007A 126,659 155,038 155,088 154,320 153,628 149,897 149,896 149,896 149,896 (291,717)
GO Imp Note 2009A - - 425 491 491 996,291 33,780 204 22 (22,561)
GO Imp & Utility Rev 2010A - - 4,945 109,770 23,817 8,249 223,948 120,638 66,502 (40,073)
GO 2012A - - - - - 63,763 295,270 255,992 356,691 125,404
GO Imp 2013A - - - - - 2,416 - - 298,558 229,746
GO Imp 2014A - - - - - - 21,310 127,747 985,966 680,990
GO Bonds 2015A - - - - - - - 50,605 236,794 15,754
EDA Lease Rev Bonds 2015B - - - - - - - 107,367 243,205 14,319
GO Capital Note 2016A - - - - - - - - 113 37,709
GO Utility Rev 2016A - - - - - - - - - (450)
GO Improv Refund 2016B - - - - - - - - - (450)
GO Tax Abate Refund 2016C - - - - - - - - - (450)
Capital Projects Funds
Bldgs & Facilities Revolving 1,570,390 1,765,288 1,416,151 946,336 592,753 601,128 509,321 239,657 223,387 289,431
Cap Equip Revolving 137,196 206,053 286,637 184,259 94,997 105,370 162,820 463,297 1,091,703 615,079
Office Equip Revolving 204,690 222,550 250,142 272,023 264,621 269,578 243,131 194,792 34,248 59,009
Dedicated Parks 144,176 104,784 66,963 404 408 16,602 122,773 215,515 446,561 446,561
Area & Unit 1,813,952 2,138,830 2,778,231 3,217,984 3,466,242 3,661,631 3,991,116 2,545,343 4,484,589 4,406,868
TIF 1-5 64,359 51,401 55,668 78,255 99,456 135,688 173,754 209,982 249,412 248,897
TIF 1-10 214,702 85,118 135,900 188,669 189,274 187,194 189,037 188,941 189,697 189,128
TIF 1-11 - - - - - - - - - (774,718)
MSA 633,651 910,592 1,251,484 1,439,143 5,037,136 4,595,797 3,922,220 3,119,825 2,012,170 2,409,603
Seal Coating/Overlay 323,184 387,959 445,003 465,169 477,527 529,065 591,400 614,123 211,648 708,972
Surface Water Management 188,528 241,913 276,610 374,653 407,977 518,189 494,339 476,343 747,048 798,246
Street Reconstruction 620,783 661,930 538,252 587,203 608,173 620,865 650,450 667,152 686,670 686,670
Surface Water Maintenance - - - - - - - - 85,034 193,349
Birch St/Hodgson Rd Imp 14,813 15,207 15,383 15,583 15,738 15,677 - - - -
Legacy at Woods Edge 765,196 531,297 522,104 548,979 554,416 527,265 533,848 - - -
I35E Interchange - 4,271,141 4,271,142 - 274,525 226,347 72,153 - - -
Main/Lake - Birch/Ware Traffic Signal - - - - 530,087 166,105 107,038 113,737 - -
Otter Lake Rd Ext - - - - - 293,961 293,515 207,609 - -
21st Ave Ext - - - - - - - - - (199,633)
Fire House #2 - - - - - - 624,253 96,188 93,929
Well #6 and Well House - - - - - - 1,100,305 854,423 63,796 60,286
North Pointe Street and Util Improvement - - - - - - 1,136,772 413,273 386,274 322,289
Birch ST San Sw Ext & Turn Lanes - - - - - - - 193,124 134,721 132,768
2015 Street Reconstruction ( Shenandoah) - - - - - - - 242,580 195,703 195,224
Blackduck/Aqua Lane Watermain Ext - - - - - - - - 770,078 386,045
Enterprise Funds
Water 2,964,709 3,432,696 3,555,128 3,649,473 4,110,341 4,791,243 5,322,125 5,738,284 4,947,883 4,930,892
Sewer 5,609,938 5,750,402 6,237,600 6,575,417 7,028,014 7,286,546 7,733,759 8,141,597 8,522,604 8,399,652
Agency/Fiduciary Funds
Contractors Deposits 813,278 744,290 705,343 657,975 476,973 639,540 726,972 689,685 825,372 1,042,342
Interim SA - - - - - - 56,466 37,946 - -
Foxborough Trust 122,224 115,824 112,676 119,881 110,536 121,475 128,734 121,111 133,542 114,792
Preserve Stewardship - - - - - - - 2,681 4,763 4,763
Totals 25,961,581 31,510,870 32,660,810 28,861,467 34,159,670 35,731,185 37,762,514 36,523,852 42,400,109 33,197,820
** All Color Coding = Related Funds
CITY OF LINO LAKES
YEAR-END CASH & INVESTMENT BALANCE BY FUND
2008 - 2017
Apr
Actual Actual Budget YTD % of
DEPT#DESCRIPTION 2015 2016 2017 2017 Budget
ADMINISTRATION
401 MAYOR AND COUNCIL 77,414 69,287 79,233 17,312 21.85%
402 ADMINISTRATION 371,778 465,509 504,615 142,764 28.29%
403 ELECTIONS 15,968 28,512 16,730 52 0.31%
404 CABLE TV 1,905 2,363 2,840 775 27.28%
405 CHARTER ADMINISTRATION 649 1,076 2,500 485 19.40%
407 FINANCE 523,647 507,103 626,790 222,734 35.54%
414 LEGAL CONSULTANTS 130,277 121,608 140,000 26,471 18.91%
TOTAL ADMINISTRATION 1,121,637 1,195,457 1,372,708 410,593 29.91%
COMMUNITY DEVELOPMENT
415 ECONOMIC DEVELOPMENT 90,428 102,816 112,117 15,020 13.40%
416 PLANNING AND ZONING 123,050 113,097 158,384 34,015 21.48%
417 ENGINEERING 100,952 117,744 105,706 14,272 13.50%
418 COMMUNITY DEVELOPMENT 209,457 204,382 219,419 50,190 22.87%
461 ENVIRONMENTAL 46,776 46,634 65,465 13,707 20.94%
462 SOLID WASTE ABATEMENT 98,384 81,401 107,400 20,473 19.06%
463 FORESTRY 46,437 54,175 64,887 11,077 17.07%
TOTAL COMMUNITY DEVELOPMENT 715,485 720,249 833,378 158,754 19.05%
PUBLIC SAFETY
420 POLICE PROTECTION 3,184,965 3,584,903 3,787,670 1,053,725 27.82%
421 FIRE PROTECTION 1,019,886 570,156 606,000 164,386 27.13%
422 BUILDING INSPECTIONS 182,315 209,680 239,788 68,212 28.45%
TOTAL PUBLIC SAFETY 4,387,166 4,364,738 4,633,458 1,286,323 27.76%
PUBLIC SERVICES
430 STREETS 869,497 874,622 1,019,024 210,481 20.66%
431 FLEET MANAGEMENT 265,522 414,392 431,742 96,096 22.26%
432 GOVERNMENT BUILDINGS 391,120 528,722 513,318 203,458 39.64%
450 PARKS DEPARTMENT 536,997 582,393 598,281 152,881 25.55%
451 RECREATION 291,087 223,609 253,849 70,134 27.63%
TOTAL PUBLIC SERVICES 2,354,223 2,623,738 2,816,214 733,050 26.03%
OTHERS
499 CONTINGENCY/TRANSFERS/OTHERS 590,245 691,439 615,800 690,800 112.18%
TOTAL OTHERS 590,245 691,439 615,800 690,800 112.18%
TOTAL GENERAL FUND EXPENDITURES 9,168,756 9,595,621 10,271,558 3,279,521 31.93%
CITY OF LINO LAKES
YTD APRIL 2017 BUDGET v ACTUAL
GENERAL FUND EXPENDITURES
Apr
Account Actual Actual Budget YTD % of
Number 2015 2016 2017 2017 Budget
Property Taxes
General Property Tax 101-3010-000 6,388,118 6,062,219 7,360,431 0 0.00%
Delinquent taxes 101-3020-000 44,165 38,079 50,000 0 0.00%
Delinquent taxes - Tax Abatements 101-3025-000 43 31 0 0 ***
Manufactured Home Tax 101-3030-000 0 0 0 0 ***
Fiscal Disparities 101-3040-000 1,053,732 928,588 0 0 ***
Fiscal Disparities - Tax Abatements 101-3045-000 0 0 0 0 ***
Excess Tax Increments 101-3050-000 2,982 8,548 0 0 ***
Tax Abatements 101-3055-000 0 0 0 0 ***
Tax Forfeits 101-3060-000 0 131 0 1,096 ***
Penalties & Interest 101-3150-000 13,737 4,473 14,500 0 0.00%
7,502,776 7,042,069 7,424,931 1,096 0.01%
Special Assessments
Current Assessments 101-3110-000 271 145 0 0 ***
271 145 0 0
Intergovernmental Revenue
Police Grant 101-3315-000 0 85,385 110,000 24,325 22.11%
Other Federal Revenue 101-3319-000 0 0 0 0 ***
Local Government Aid 101-3340-000 0 0 0 0 ***
Market Value Homestead Credit 101-3341-000 5,363 2,606 4,500 0 0.00%
Municipal State Aid 101-3345-000 255,979 253,523 255,000 120,569 47.28%
Police State Aid 101-3346-000 191,767 208,848 195,000 0 0.00%
Other State Revenue 101-3348-000 73,709 11,481 9,500 0 0.00%
Fire State Aid 101-3349-000 0 6,863 0 3,494 ***
Anoka County Solid Waste 101-3360-000 99,319 85,741 107,409 0 0.00%
Anoka County Special Detail 101-3364-000 0 0 0 0 ***
Liveable Communities Grant 101-3370-000 0 0 0 0 ***
Coop Agreement - Met Council 101-3371-000 0 0 0 16,000 ***
626,136 654,447 681,409 164,388 24.12%
CITY OF LINO LAKES
YTD APRIL 2017 BUDGET v ACTUAL GENERAL FUND REVENUES
Apr
Account Actual Actual Budget YTD % of
Number 2015 2016 2017 2017 Budget
CITY OF LINO LAKES
YTD APRIL 2017 BUDGET v ACTUAL GENERAL FUND REVENUES
Business Licenses and Permits
Liquor License - Bar 101-3201-000 20,003 24,653 27,000 50 0.19%
Liquor License - Beer 101-3202-000 1,375 1,400 1,250 0 0.00%
Off-Sale Liquor 101-3203-000 2,325 5,296 2,100 0 0.00%
Sunday Liquor License 101-3204-000 1,808 2,052 1,500 0 0.00%
Club Liquor License 101-3205-000 300 0 300 0 0.00%
Beer Permit 101-3206-000 0 0 0 0 ***
Investigation Fee 101-3208-000 1,050 788 1,000 0 0.00%
Garbage Removal License 101-3209-000 1,200 1,470 1,200 0 0.00%
Temporary Consumption Permit 101-3210-000 300 200 300 0 0.00%
Cigarette License 101-3211-000 750 650 750 0 0.00%
Contractor's License 101-3213-000 10,412 12,205 11,000 4,173 37.94%
Rental Housing License 101-3215-000 6,335 5,480 5,300 1,338 25.24%
Kennel License 101-3218-000 0 0 0 0 ***
Dance 101-3219-000 235 235 250 0 0.00%
Fireworks License 101-3220-000 200 200 200 0 0.00%
Peddlers License 101-3223-000 1,250 1,750 1,500 500 33.33%
Gambling Tax 101-3224-000 934 1,154 1,000 534 53.39%
Lodging Tax 101-3225-000 73,872 78,830 71,579 12,716 17.77%
122,348 136,362 126,229 19,310 15.30%
Non-Business Licenses and Permits
Building Permits 101-3250-000 229,089 409,996 257,860 100,492 38.97%
Plan Inspection Fees 101-3251-000 112,410 216,736 147,964 55,742 37.67%
Erosion Control Permits 101-3252-000 7,200 15,150 16,500 5,850 35.45%
Plumbing Permits 101-3253-000 17,209 25,027 15,000 10,633 70.89%
Mechanical Permits 101-3254-000 38,245 49,860 30,000 10,634 35.45%
Septic Plumbing Permit 101-3255-000 6,590 4,640 6,000 1,260 21.00%
Septic System Permit 101-3256-000 5,650 7,000 5,000 600 12.00%
Fence Permit 101-3259-000 2,359 4,810 2,000 737 36.85%
Dog License 101-3260-000 1,631 1,622 1,700 801 47.09%
Sign Permit 101-3262-000 1,495 1,320 1,500 465 31.00%
Road Overweight Permit 101-3263-000 0 0 0 0 ***
Underground Utility Permit 101-3264-000 650 18,782 1,000 1,601 160.13%
Miscellaneous Permits 101-3266-000 3,145 4,275 2,000 335 16.75%
425,673 759,218 486,524 189,149 38.88%
Apr
Account Actual Actual Budget YTD % of
Number 2015 2016 2017 2017 Budget
CITY OF LINO LAKES
YTD APRIL 2017 BUDGET v ACTUAL GENERAL FUND REVENUES
Charges for Services
Land Use Fee 101-3265-000 3,180 4,205 3,000 2,875 95.83%
Sale of Supplies 101-3404-000 42 73 100 66 66.00%
Assessment Searches 101-3405-000 1,320 1,750 1,000 180 18.00%
Election Filing Fees 101-3409-000 35 0 0 0 ***
Return Check Fee 101-3413-000 30 60 0 0 ***
Materials for Resale 101-3416-000 (0) 0 0 (1) ***
Aerial Map Fee 101-3417-000 7,832 12,420 7,000 0 0.00%
Public Works Fees 101-3433-000 3,500 5,156 3,500 2,732 78.05%
Other Park Revenues 101-3470-000 8,487 15,291 10,000 491 4.91%
Other Recreation Fees 101-3472-000 10,000 0 10,000 0 0.00%
34,427 38,956 34,600 6,343 18.33%
Public Safety
Police Reports 101-3420-000 9,202 739 1,200 424 35.33%
Police Training Fees 101-3421-000 1,619 0 0 0 ***
Police Other Revenues 101-3422-000 188,677 211,453 188,000 15,411 8.20%
Common Space Revenues 101-3423-000 0 0 0 0 ***
199,497 212,193 189,200 15,835 8.37%
Municipal Fines
Fines & Forfeits 101-3510-000 78,606 127,542 85,000 27,423 32.26%
ACE Fees 101-3511-000 48,197 92,863 90,000 14,933 16.59%
Driving Diversion Program (DDP) 101-3512-000 1,000 500 600 300 50.00%
127,804 220,905 175,600 42,656 24.29%
Investments
Interest on Investments 101-3620-000 27,004 37,887 30,000 0 0.00%
Change in Fair Value of Investments 101-3621-000 (9,578) 2,553 0 0 ***
17,426 40,440 30,000 0 0.00%
Administrative Charges
Administrative Charge - Bonds 101-3490-000 0 0 0 0 ***
Investment Management Charge 101-3494-000 50,000 50,000 50,000 0 0.00%
Administrative Charge - Escrows 101-3493-000 0 0 0 0 ***
Administrative Charge - TIF 101-3491-000 0 0 0 0 ***
Engineering/Planning Charges 101-3492-000 12,722 35,933 15,000 6,150 41.00%
62,722 85,933 65,000 6,150 9.46%
Apr
Account Actual Actual Budget YTD % of
Number 2015 2016 2017 2017 Budget
CITY OF LINO LAKES
YTD APRIL 2017 BUDGET v ACTUAL GENERAL FUND REVENUES
Miscellaneous
Use of Fund Reserves 0 0 518,000 0 0.00%
Transfer From Other Funds 101-3920-000 480,894 488,084 317,717 317,717 100.00%
Circle Pines Gas Franchise 101-3350-000 47,914 43,563 70,000 21,988 31.41%
Other Solid Waste 101-3361-000 1,065 2,212 1,500 80 5.31%
SAC/Surcharge Fee 101-3414-000 2,444 5,610 2,000 658 32.92%
Building Rentals 101-3640-000 0 0 0 0 ***
Gambling Ordinance Funding 101-3710-000 0 0 0 0 ***
Donations 101-3720-000 1,925 300 5,000 0 0.00%
Other Grants (Non-govt) 101-3725-000 0 0 0 0 ***
Refunds & Reimbursements 101-3730-000 53,747 73,278 40,000 830 2.08%
Bldg Lease Revenue 101-3740-000 82,597 97,873 102,848 31,633 30.76%
Tree Refunds - Escrows 101-3631-000 942 (1,293) 0 1,336 ***
Cable TV 101-3630-000 12,500 0 0 0 ***
Miscellaneous Revenue 101-3810-000 5,529 5,101 1,000 20,005 2000.46%
Sale of Fixed Assets 101-3910-000 0 0 0 0 ***
689,557 714,729 1,058,065 394,246 37.26%
Total Revenues 9,808,638 9,905,396 10,271,558 839,174 8.17%
WS – Item #5
WORK SESSION STAFF REPORT
Work Session Item No. 5
Date: June 5, 2017
To: City Council
From: Michael Grochala, Community Development Director
Re: Draft 2017-2021 Street Reconstruction Plan
Background
The City Council initiated a Street Reconstruction program in 2014 using Street Reconstruction
Bonds as the primary funding source. The initial phase of street reconstruction was undertaken
in 2015 with the improvement of streets in the Shenandoah neighborhood. In January of 2017
the City Council authorized a report on improvements to obtain cost estimates for the next phase
of the reconstruction program.
The City Council accepted the West Shadow Lake Drive and LaMotte Neighborhood report at
the May 8, 2017 regular council meeting. This project is being considered for 2018. The
estimated cost of the proposed project is $5,124,000.
This estimate does not include any costs for new extensions of sanitary sewer and/or water main
to service the neighborhoods. Any proposed sanitary sewer or water extensions, if requested,
will be funded separately through special assessments or connection charges.
At this time staff is proposing consideration of a street reconstruction plan schedule that includes
completing the next two program phases over the next five years as follows:
Phase Streets Estimated Cost
2018 West Shadow Lake Drive, Shadow Ct, Sandpiper Drive, LaMotte Dr,
LaMotte Circle
$5,124,000
2021 4th Avenue, Diane Street, 81st St, Elbe St. and DanubeSt. $2,524,000
Funding is only being considered for the 2018 project at this time. A 15 year payment schedule
would result in annual debt service of approximately $450,000 based on a $5,124,000 project.
Staff has worked with the City’s bond counsel Kennedy and Graven, to refine the plan to meet
the provisions of Minnesota Statutes 475 relating to street reconstruction and bituminous
overlays. City Charter requirements are not applicable, provided no special assessments are
proposed for the street reconstruction improvements under the street reconstruction project.
However, the plan is subject to a reverse referendum.
Under State law street reconstruction bonds can be issued without election provided the
following requirements are met:
a) The City must prepare a 5 year street reconstruction plan
b) The City must hold a public hearing
c) The City Council must approve the plan by unanimous vote.
d) A 30 day period must elapse during which time a petition may be submitted
requesting an election. The petition must be signed by voters equal to 5% of the
votes cast in the last municipal general election.
e) If no petition is received the city may issue bonds without election.
The draft 2017-2021 Five Year Street Reconstruction Plan has been prepared. The public
hearing has been set for the June 12, 2017 City Council meeting. This will allow for the reverse
petition process and possible ballot question submittal to Anoka County. If a petition is received
a ballot question will be prepared for consideration by the voters in the 2017 municipal election.
If no petition is received the council may authorize preparation of plans as specifications for the
project.
City Council consideration at the public hearing will be to approve the 5 year Street
Reconstruction Plan and authorize the issuance of Street Reconstruction Bonds for the 2018
improvements. Staff would like to emphasis the following points:
• The 2021 project will be subject to future council consideration and action.
• Approval of the plan and bond authorization does not obligate the City to construct a
project or issue bonds.
• The amount of bonds authorized under the plan represents a maximum amount.
• The actual amount of bonds issued will be subject to council approval once a final project
cost is determined following plan design and bidding process.
• The plan allows for the bonding for the West Shadow and LaMotte Improvements to
occur anytime during the 2017 – 2021 Five-Year Street Reconstruction Plan.
Requested Council Direction
None required. The public hearing has been scheduled for June 12, 2017.
Attachments
1. Draft 2017-2021 5 year Street Reconstruction Plan
draft lino lakes 2017-2021 street reconstruction plan 2017v3 5/24/2017
2017 through 2021
Five-Year Street Reconstruction Plan for the
City of Lino Lakes, Minnesota
June, 2017
draft lino lakes 2017-2021 street reconstruction plan 2017v3 5/24/2017
City of Lino Lakes
Five-Year Street Reconstruction Plan
2017 through 2021
I. PURPOSE
Street reconstruction is a major expenditure of city funds for the reconstruction of streets.
Street reconstruction may include bituminous overlays, utility replacement and
relocation, public safety street modifications, and other incidental activities, turn lanes
and other improvements having a substantial public safety function, realignments, other
modifications to intersect with state and county roads, and the local share of state and
county road projects. Except in the case of turn lanes, safety improvements,
realignments, intersection modifications, and local share of state and county road
projects, street reconstruction does not include the portion of project costs allocable to
widening a street or adding curbs and gutters where none previously existed. A Street
Reconstruction Plan (“SRP”) is a document designed to anticipate street reconstruction
expenditures and schedule them over a five-year period so that they may be purchased in
the most efficient and cost effective method possible. An SRP helps enable the matching
of expenditures with anticipated income. As potential expenditures are reviewed, the city
considers the benefits, costs, alternatives and impact on operating expenditures.
The City of Lino Lakes, Minnesota (the “City”) believes the street reconstruction process is
an important element of responsible fiscal management. Major capital expenditures can
be anticipated and coordinated so as to minimize potentially adverse financial impacts
caused by the timing and magnitude of capital outlays. This coordination of capital
expenditures is important to the City in achieving its goals of adequate physical public
assets, preservation of public assets and sound fiscal management. Good planning is
essential for the wise and prudent use of limited financial resources.
The SRP is designed to be updated periodically. The Street Reconstruction Plan is a part of
the City’s capital improvement plan. In this manner, it becomes an ongoing fiscal planning
tool that continually anticipates future capital expenditures and funding sources.
II. THE STREET RECONSTRUCTION PLANNING PROCESS
For the City to use its authority to finance expenditures under Chapter 475.58, Subdivision
3b, it must meet the requirements provided therein. The street reconstruction planning
process is as follows:
The City staff prepares an SRP reflecting the street reconstruction projects anticipated to
be undertaken within the next five years (based on their priority, fiscal impact, and
available funding) and the estimated costs thereof. If general obligation bonding is
deemed necessary, the City works with its financial advisor to prepare a bond sale and
repayment schedule. A public hearing is held to solicit input from citizens on the SRP and
draft lino lakes 2017-2021 street reconstruction plan 2017v3 5/24/2017
the issuance of bonds. Notice of such hearing must be published in the official newspaper
of the City at least 10, but not more than 28 days prior to the date of the public hearing.
The City Council must approve the SRP and the sale of street reconstruction bonds by a
unanimous vote of those members present at the meeting following the public hearing.
Voters may petition for a reverse referendum on the issuance of street reconstruction
bonds. If a petition bearing the signatures of voters equal to at least 5% of the votes cast
in the last general election requesting a vote on the issuance of street reconstruction
bonds is received by the City Clerk within 30 days after the public hearing, the City may
only issue general obligation street reconstruction bonds after approval by voters at an
election. If no petition is submitted, general obligation street reconstruction bonds may
be issued without an election.
In subsequent years, the process is repeated annually or as expenditures are completed
and new needs arise.
III. PROJECT SUMMARY AND FINANCING
Street reconstruction projects anticipated to be undertaken within the next five years and
the estimated costs thereof are set forth in Appendix A. A map of the proposed project
streets is included in Appendix B. Those for which street reconstruction bonds are
anticipated to be issued are marked with an asterisk in Appendix A and are currently
anticipated to include the following:
2018 Street Reconstruction Bond Financed Expenditures –
The 2018 Street Reconstruction Project includes the reconstruction of the following streets; West
Shadow Lake Drive, Sandpiper Drive, Shadow Court, LaMotte Drive, and LaMotte Circle, by
replacement of curb and gutter as needed, required upgrades of the existing stormwater
management system and bituminous surfacing.
General obligation street reconstruction bonds are proposed to be issued in 2018 in an aggregate
principal amount of approximately $5,124,000.00 for the costs of the West Shadow Lake Drive
Improvements, including Sandpiper and Shadow Court, and the LaMotte Drive Improvements, and
the costs of issuing the bonds. Such bonds may be combined with other financing tools, including
general obligation improvement bonds, to finance other capital improvements in the City.
The bonding for the West Shadow Lake Drive Improvements and the LaMotte Drive Improvements is
expected to occur in 2018 but could happen at any time during the 2017 through 2021 Five-Year
Street Reconstruction Plan.
West Shadow Lake Drive Improvements
The pavement on West Shadow Lake Drive Sandpiper and Shadow Court is in very poor condition.
The roadway is located in a high water table and poorly draining soils are located under and adjacent
draft lino lakes 2017-2021 street reconstruction plan 2017v3 5/24/2017
to the roadway. Many of the ditches adjacent to the roadway have been filled in or are landlocked
with no drainage. One portion of the road winds through wetlands and crosses over a culvert with
surface water one foot below the roadway. The roadway is below the flood elevation in this area
and large ptoholes have occurred in many areas of the roadway. This roadway is the only entrance
to the adjacent neighborhood, and therefore, needs to be reconstructed. In order to reconstruct the
road, the drainage issues must be resolved. The road reconstruction project will include
reconstructing the street to meet the City’s standard road requirements, creation of a drainage
system to keep stormwater from compromising the new roadway, and meeting the Rice Creek
Watershed District’s rate control and water quality treatment requirements related to the
construction of the new roadway. The road reconstruction project will also include investigating the
conditions of the culvert under the roadway and reconstructing the culvert if necessary.
LaMotte Drive Improvements
The pavement on LaMotte Drive is also in very poor condition. The road reconstruction project will
include reconstructing the street to meet the City’s standard road requirements, replacement of curb
and gutter where it currently exists, and the addition of storm water filtration areas to meet storm
water rate and water quality requirements.
Street reconstruction bonds are included in the amount of indebtedness of the City which cannot,
under Minnesota Statutes, Section 475.53, exceed 3% of the assessor’s taxable market value for the
City (“TMV”). The proposed bonds will not exceed statutory limits.
All other foreseeable capital expenditures are expected to be financed through other revenue or
financing sources.
2021 Street Reconstruction Project
The 2021 Street Reconstruction Project includes the reconstruction of the following streets; 4th
Avenue, from Main Street to Pine Street, Diane Street, 81st Street, Elbe Street and Danube Street by
replacement of curb and gutter as needed, required upgrades of the existing stormwater
management system and bituminous surfacing.
No bonds are being contemplated for this project at the present time.
draft lino lakes 2017-2021 street reconstruction plan 2017v3 5/24/2017
APPENDIX A
PROJECT COSTS
2017 2018 2019 2020 2021
West Shadow Lake Drive,
Shadow Ct, Sandpiper
Drive*, $4,329,000
LaMotte Dr. and LaMotte
Circle*
$795,000
4th Avenue, Diane Street,
81st St, Elbe St. and Danube
St. $2,524,000
Totals by year $5,124,000 0 0 $2,524,000
*Expenditures proposed to be financed by Street Reconstruction Bonds to be issued in an aggregate
principal amount of approximately $5,124,000 in 2018.
draft lino lakes 2017-2021 street reconstruction plan 2017v3 5/24/2017
APPENDIX B
PROJECT LOCATION MAP
Rondeau Lake
Peltier Lake
Marshan Lake
Centerville Lake
George Watch Lake
Sherman LakeWardsLake
Reshanau Lake
Rice Lake
Golden Lake
BaldwinLake
Bald Eagle Lake
AmeliaLake
Otter Lake
Cedar Lake
Rice Creek Marsh
RICE CREEKCHAIN OF LAKESREGIONAL TRAIL
County Hwy 10 County Hwy 14County Hwy 21County Hwy 23County Hwy 14
Hodgson RdCounty Hwy 23Frenchman Rd
County Hwy 21%&d(%&c(
)sBlaineLinoLakesCirclePinesLinoLakes
Circle PinesShoreview
ColumbusLinoLakes
HugoLinoLakesHugoWhiteBearTwp.Lino LakesNorthOaksLinoLakesShoreview Lino LakesWhiteBearTwp.
Lino LakesCenterville
Arrowhead Dr Lam otte D rL a m o t t e C i r
1 inch = 3,200 feet
Street Reconstruction Plan
Document Path: K:\02029-230\GIS\Maps\2018StreetReconPlanNew.mxd Date Saved: 5/24/2017 9:14:38 AM
Street Reconstruction Plan
2018
2021
City of Lino Lakes MN
±
WS – Item 6
WORK SESSION STAFF REPORT
Work Session Item No. 6
Date: June 5, 2017
To: City Council
From: Jeff Karlson
Re: Outsourcing
Background
Mayor Reinert requested that this item by placed on the work session agenda.
Several years ago the Council asked staff to put together a list of service providers and
consultants used by the City, and to recommend a time period for requesting proposals.
A few years ago the City sent requests for proposals for engineering services and
prosecution services. More recently, the City changed to another auditing firm and
brokerage firm for health, dental, and life insurance.
Mayor Reinert suggested we send an RFP to other insurance agents for the City’s general
liability, property, and worker’s compensation insurance program. The City is in the
middle of its renewal at this time, so RFP’s would have to go out in the fall.
Staff routinely looks at other vendors for many of its other contracted services.
Requested Council Direction
No action required.
Attachments
City of Lino Lakes
Contracted Services
Contracted Services
Current Provider
Start
Date
Last RFP
Recommended
Schedule
Civil Legal Services
Ratwik, Roszak &
Maloney
01/01/09
2008
Prosecution Services
Geck, Duea & Olson
01/01/12
2011
Auditing Services
Redpath and Company
01/01/17
2016
Assessing Services
Anoka County
n/a
n/a
Agent/Broker of
Record
Johnson McCann Benefits
1998
2017
Engineering Services
WSB
07/01/11
2011
IT Services
City of Roseville
2004
-
Janitorial Services
Jani-King
08/15/11
2011
Portable Toilets
Biff’s
2013
2012
System Monitoring
Life Safety Systems
Fuel
Mansfield Oil Co.
Floor Mats
Ameripride
Pest Control
Plunketts
WS – Item 7
WORK SESSION STAFF REPORT
Work Session Item
Date: June 5, 2017
To: City Council
From: John Swenson, Public Safety Director
Re: Achieving Compliance through Education (ACE) Program - Update
Background
Mayor Reinert requested that ACE Program Update be placed on the June 5, 2017
Council Work Session.
The ACE Program is an educational program offered through the Public Safety
Department. The primary goal of this program is to make our community roadways safer
while providing individuals that receive a citation an opportunity to complete an
educational program. If the individual, who received the citation, elects to participate in
the ACE Program, they must contact the ACE Program by phone or by completing an
online form on the Public Safety Department website.
Once an individual has requested to participate in the ACE Program, staff follows this
process:
1. Verifies the offense is an ACE eligible offense;
2. Verifies the cited individual has not completed the ACE program for the offense
they were cited for;
3. Verifies the cited individual does not have a commercial driver’s license.
If individual has not previously participated in ACE for the same offense and does not
possess a commercial driver’s license, the individual is scheduled to participate in ACE.
Through May 31, 2017, 189 individuals have completed the ACE program.
Attached to this staff report is the pamphlet which is provided to individuals who receive
a citation from a Lino Lakes police officer.
Attachments
ACE Program Pamphlet
WS – Item 8
WORK SESSION STAFF REPORT
Work Session Item No. 8
Date: June 5, 2017
To: City Council
From: Jeff Karlson
Re: Speed Limit Changes on Main Street
Background
Mayor Reinert inquired about the process for getting speed limits changed on Main
Street.
Minn. Statute 169.14 establishes statutory speed limits on most typical roadways under
ideal conditions. All other speed limits are set by the DOT Commissioner based on an
engineering and traffic investigation. The following factors are considered:
Road type and condition
Location and type of access points (intersections, entrances)
Sufficient length of roadway (1/4 mile minimum)
Existing traffic control devices (signs, signals)
Crash history and traffic volume sight distances (curves, hills)
Test drive results speed study
Local road authorities (county, city or township) can determine advisory speed limits and
post the plates without authorization from the commissioner of transportation. The local
road authority can also pass a resolution requesting an investigation by MnDOT. Based
upon the results, MnDOT may then authorize the local road authority to post new speed
limits.
Since Main Street is a county road, the City Council would have to make a request to the
Anoka County Board of Commissioners to adopt a resolution requesting an investigation
by MnDOT.
Requested Council Direction
Consider whether to take any action.
Attachments
Minnesota Speed Limits Brochure
Who do I contact?If you believe that there is a safety concern or an inappropriate speed limit posted, the person to contact depends on the type of road.
Interstates, federal and state highwaysFor regulatory and advisory speed limits on the trunk highway system, contact the district traffic engineer at your MnDOT district office.
The trunk highway system includes:
Interstate Highways
U.S. Highways and
Minnesota State Highways
Local streets and highwaysFor these roadways, you may contact your local road authority (county, city, or township).If you are unable to find the right phone number, call the MnDOT Information center: Greater Minnesota: 1-800-657-3774Twin Cities Metro: 651-296-3000
MnDOT Office of Traffic Safety and Technology
For more information, visit: www.mndot.gov/speed/
Q&A
Will lowering the speed limit reduce speeds?No. Studies show there is little change in the speed pattern after the posting of a speed limit. The driver is much more influenced by the roadway conditions.
Will lowering the speed limit reduce crash frequency?No. Although lowering the speed limit is often seen as a cure-all in preventing crashes, this is not the case. Crashes are most often the result of driver inattention and driver error. However, if a posted speed limit is unrealistically low, it creates a greater speed variance (i.e. some drivers follow the speed limit while most drive the reasonable speed). This speed variance can contribute to crashes.
Why do we even have speed limits?A uniform speed of vehicles in a traffic flow results in the safest operation. The posted speed limits can keep the traffic flowing smoothly provided the majority of drivers find the speed limits reasonable. To best do this, the limits must be consistent throughout the state. The speed limits also give the motorist an idea of a reasonable speed to drive in an unfamiliar location. The speed limits are used by police officials to identify excessive speeds and curb unreasonable behavior.
What are the legal speed limits?How does MnDOT determine the
speed limit?
What are the types of speed limits?
State law says every road should have a speed
limit, whether posted or not. Speed limits are set
according to Minnesota State Statute 169.14. The
Minnesota Department of Transportation carries
out state laws through the development and
enforcement of regulations.Speed limits are set to improve traffic flow and reduce crashes, injuries and fatalities and the costs associated with them. Speed limits are also intended to supplement motorists’ judgment in determining speeds. To effectively enforce a law, motorists must believe that the law is reasonable. Minnesota’s speed regulations are based on the same basic speed law that is used in all 50 states: “No person shall drive a vehicle on a highway at a speed greater than is reasonable and prudent under the conditions.”Speed limits are based on the concept that highways can operate safely at set maximum speeds under ideal conditions. In poor weather conditions, at curves or hills and when there are potential hazards such as pedestrians, drivers are required to reduce speeds below the speed limits, whether they are posted or not. Drivers must also reduce speed when approaching or passing emergency vehicles with emergency lights flashing.
These factors are considered:
◉ Road type and condition ◉ Location and type of access points (intersections, entrances, etc.) ◉ Sufficient length of roadway (1/4 mile minimum) ◉ Existing traffic control devices (signs, signals, etc.) ◉ Crash history ◉ Traffic volume ◉ Sight distances (curve, hill, etc.) ◉ Test drive results ◉ Speed study
REGULATORY SPEED LIMIT SIGN
This black and white sign shows the maximum speed that motorist may travel under ideal conditions. It can be a value based on state statute or it must be authorized by the commissioner of transportation.
ADVISORY SPEED SIGN
This black and yellow speed sign is used to advise motorists of a comfortable speed to navigate certain situations. It is used with a warning sign. For example, when traveling on a winding road, the curve warning sign would be used with an advisory speed sign. This sign may be posted by the local road authority on local roads.
SPEED LIMITS IN SCHOOL ZONES Local authorities may establish school speed limits on local streets, within a school zone, based on the engineering and traffic investigation as directed by the commissioner of transportation. This speed limit is in effect whenever children are present, such as before and after school or during recess. The school sign is black and yellow and the other signs are black and white. Optional fluorescent yellow green may be used for the school sign.
SPEED
LIMIT
SCHOOL
WHEN
CHILDREN
ARE PRESENT
The most common speeds regulated by state law are: ◉ 10 mph in alleys ◉ 30 mph on streets in urban districts ◉ 70 mph on rural interstate highways ◉ 65 mph on urban interstate highways ◉ 65 mph on expressways ◉ 55 mph on other roadsWhen these speed limits are not the correct value for a specific highway, speed limits may be changed.
The speed study is the most important part of the traffic investigation. Drivers take many roadway environment factors into consideration when choosing a speed. The speed that the majority of people consider reasonable is an important value. Data is collected by performing radar checks at selected locations on the roadway under ideal driving conditions.An analysis is done on the results to determine the 85th percentile, which is the value indicating the speed at which most (85%) drivers are traveling. The posted speed limit near the 85th percentile is the maximum safe and reasonable speed. Studies show that traveling faster or slower than this value can increase the chances of being in a crash.Engineering judgment is the most important tool. The traffic investigator must use knowledge of nationally accepted principles combined with experience to assign the safe speed.
Interstates are high design multi-lane divided highways that have controlled access interchanges such as cloverleaf or diamond shaped interchanges. Through traffic on the interstate never has to stop or yield. Examples: I-94 or I-35 Expressways are multi-lane divided highways but they have entries and intersections, sometimes controlled by traffic signals. Some interchanges may exist but they are not the rule. Examples: Highways 10 or Highway 52
WS – Item 9
WORK SESSION STAFF REPORT
Work Session Item No. 9
Date: June 5, 2017
To: City Council
From: Jeff Karlson
Re: Winter Parking Restrictions
Background
Mayor Reinert asked that this item be placed on the work session agenda.
Attached is the City ordinance regarding winter parking restrictions. If the Council
wishes to change the overnight parking restrictions or how they are enforced as currently
stated in the ordinance, an ordinance amendment would be required.
Requested Council Direction
This is for Council consideration.
Attachments
Ordinance No. 802.06 Winter Parking Restrictions
WS – Item 10
WORK SESSION STAFF REPORT
Work Session Item No. 10
Date: June 5, 2017
To: City Council
From: Jeff Karlson
Re: Council Review of Department Directors
Background
Mayor Reinert brought up the idea of the City Council giving department directors
performance expectations and providing feedback on how they’re meeting those
expectations.
It is outside the norm for council members to go through a formal evaluation process for
department directors. A council member doesn’t always see the whole picture, or simply
don’t understand the complexities of a department head’s job. Because of the political
nature of a council member’s role, elected officials tend to be less objective when dealing
with issues or when burdened with complaints from residents.
Another factor that could complicate the matter even further is that we recently
implemented a new performance management system for supervisors and non-
supervisors. One of the biggest problems you would likely run into is that the city
administrator and City Council may differ on how a department director is meeting job
expectations.
Based on my experience working in Lino Lakes for nearly seven years, there is generally
a lack of trust amongst elected officials and staff, which fosters an atmosphere of
negativity. From what I’ve been told, this has been true for a long time.
Requested Council Direction
I do not recommend implementing a formal review process for department directors.
WS – Item 11
WORK SESSION STAFF REPORT
Work Session Item No. 11
Date: June 5, 2017
To: City Council
From: Jeff Karlson
Re: Step Adjustments for New Employees
Background
Mayor Reinert asked me to provide some background on step adjustments for new
employees.
Every City employee is on a step program, which includes non-union employees and
those covered by a collective bargaining agreement. Typically, a new employee will start
at the first step of the compensation plan. However, a new hire can start at a higher step
based on years of experience.
Employees are hired with the expectation that if they perform their job duties at a
satisfactory level, they will move to the next step of the pay plan until reaching the top
step in accordance with the labor agreement or non-union compensation plan. It is a
decisive factor in recruitment and retention.
With the exception of AFSCME employees, every other employee serves a 12-month
probationary period before becoming eligible for a step increase. Prior to this year, new
hires were given a six-month performance review and another appraisal before the end of
their 12-month probationary period. Under the new the performance management system
implemented earlier this year, an employee’s performance will be reviewed quarterly.
AFSCME employees are eligible for a step increase after a six-month probationary period
and on their anniversary date thereafter.
Periodically, a councilmember will question why the City grants “automatic” step
increases every year until an employee reaches the maximum pay range. It’s a fair
question. First of all, step adjustments are not automatic. Employees must meet
performance standards to advance to the next step. Granted, it is rare that an employee
does not meet minimum standards. When an employee is not (especially a union
employee), the City must present clear evidence for withholding a pay increase, which
will still likely result in a union grievance. Secondly, the City of Lino Lakes needs to
remain competitive in the public sector labor market. Third, it is important the pay plans
are equitable across the board to meet the state’s pay equity guidelines. Finally, it would
be a contentious process if the city administrator had to clash with the Council every year
to get raises for the non-union staff.
Item #13
Monthly Progress Report
June 5, 2017
Item Last Action Taken Staff Status
Digital Scanning Project 4/10 /17 Council approved hiring Thomas
DeBilzan for the scanning operator
position
Julie DeBilzan resigned to take
another position. The position
has been reposted.
White Bear Lake Restoration
Assn. v. Dept. of Natural
Resources (DNR)
8/25/16 – The NE Metro Water Summit
Group met to discuss a draft JPA that
would create a coalition of cities to work
together as one voice with regards to
water supply issues in the northeast metro
area.
Jeff The trial was held March 6-
24 and we’re still awaiting
the judge’s ruling
Location of Veteran’s
Memorial
12/5/16 – The American Legion
expressed in a letter what its preferred
location was, although there was some
confusion about whether they meant
the undeveloped land at Legacy of
Woods Edge or in front of city hall
Mike
The Council may need to
make a decision on who will
prepare a design
Upgrade of HD
Audio/Visual Equipment
in Council Chambers and
Control Room
3/13/17 – Council approved Technical
Services Contract with Z Systems for
consulting, design, and engineering
services
Jeff Equipment & labor
proposal is complete. Staff
is meeting with Z Systems
on June 8 to review plans
Channel 16 Upgrade 10/4/16 – NMTV Operations
Committee agreed that the local
government channels needed more
attention
Jeff
The new bulletin board will
be up and running by the
end of June.
Updates are shown in italics.