HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2013COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2013
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
II. FINANCIAL SECTION
Independent Auditors' Report
9
Management's Discussion and Analysis
12
Basic Financial Statements
Statement of Net Position
Statement
1
22
Statement of Activities
Statement
2
23
Balance Sheet - Governmental Funds
Statement
3
25
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
Statement
4
27
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds
Statement
5
28
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balance to the Statement
of Activities
Statement
6
30
Statement of Net Position - Proprietary Funds
Statement
7
31
Statement of Revenues, Expenses, and Changes in Net Position -
Proprietary Funds
Statement
8
32
Statement of Cash Flows - Proprietary Funds
Statement
9
33
Statement of Net Position - Fiduciary Funds — Agency Funds
Statement 10
34
Notes to Financial Statements
35
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual Statement 11 60
Note to Required Supplementary Information 66
Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 67
Combining Fund Financial Statements
Combining Balance Sheet — Nonmajor Governmental Funds Statement 13 68
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance — Nonmajor Governmental Funds Statement 14 74
Special Revenue Fund — Program Recreation:
Schedule of Revenues, Expenditures, and Changes in Fund
Balance — Budget and Actual Statement 15 80
Statement of Changes in Assets and Liabilities — Fiduciary Funds —
Agency Funds Statement 16 81
Supplementary Financial and Other Information
Combined Schedule of Indebtedness
Exhibit
1
82
Schedule of Deferred Tax Levies
Exhibit
2
84
Debt Service Payments to Maturity - All Bonds
Exhibit
3
86
Insurance in Force
Exhibit
4
89
Taxable Valuations, Tax Levies and Tax Rates
Exhibit
5
90
III. STATISTICAL SECTION
Net Position by Component — Last Ten Fiscal Years
Table
1
91
Changes in Net Position - Last Ten Fiscal Years
Table
2
92
Fund Balances, Governmental Funds - Last Ten Fiscal Years
Table
3
94
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years
Table
4
96
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years
Table
5
98
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference
Number
Direct and Overlapping Property Tax Rates -
Last Ten Fiscal Years
Table
6
99
Principal Property Taxpayers
Table
7
100
Property Tax Levies and Collections — Last Ten Fiscal Years
Table
8
101
Ratios of Outstanding Debt by Type
Table
9
103
Direct and Overlapping Governmental Activities Debt
Table
10
105
Legal Debt Margin Information
Table
11
106
Demographic and Economic Statistics
Table
12
108
Principal Employers, Current Year and Nine Years Ago
Table
13
109
Full -Time Equivalent Employees by Type
Table
14
110
Operating Indicators by Function/Program
Table
15
112
Capital Asset Statistics by Function/Program
Table
16
114
I.
INTRODUCTORY
SECTION
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2013
Elected Officials
Term Expires
Mayor:
Jeff Reinert December 31, 2013
Council Members:
Dale Stoesz December 31, 2015
Rob Rafferty December 31, 2013
Jeff O'Donnell December 31, 2013
Dave Roeser December 31, 2015
Appointed Personnel
City Administrator Jeff Karlson
Director of Finance Alan Rolek
Director of Public Safety John Swenson
Director of Community Development Michael Grochala
Director of Public Service Rick DeGardner
City of Lino Lakes Organizational Chart
Citizens
Honorable Mayor
and
City Council
I Commissions I
Cable
Parks and Recreation
Economic Development
Planning and Zoning
Fire
I Environmental I
City Administrator
City Clerk Professional Consultants
Engineering Attorney Fiscal
Public Services Public Safety Administration Community Development Finance
Parks Police HumanResources Planning Accounting
Public Works Emergency Management Administrative Services Economic Development Management Information Systems
Recreation Engineering Utility Billing
Environmental Services
Inspections
E
May 28, 2014
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, 2013.
This report consists of management's representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations, management
of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to
protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the
preparation of the City of Lino Lakes' financial statements in conformity with GAAP. Because the cost of internal
controls should not outweigh their benefits, the City's comprehensive framework of internal controls has been
designed to provide reasonable rather than absolute assurance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City of Lino Lakes' financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year ended December 31, 2013, 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 unqualified opinion that the City's financial statements for
the fiscal year ended December 31, 2013, are fairly presented in conformity with GAAP. The independent
auditor's report is presented as the first component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic
financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is
designed to complement MD&A and should be read in conjunction with it. The City of Lino Lakes' MD&A can
be found immediately following the report of the independent auditors.
3
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 20,700. The population has
more than doubled from the 1990 census figure of 8,807 and has grown by 23% 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 1-35E.
The City Charter, as amended, establishes a mayor -council form of government and grants the city council full
policy-making and legislative authority to the mayor and four council members. The City council is responsible,
among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a City
administrator. The City administrator has the responsibility of carrying out the policies and ordinances of the City
council, for overseeing the day-to-day operation of the city. The City council is elected at -large on a non-partisan
basis, with council members serving four-year terms and the mayor serving a two-year term. Elections are held
every two years with two council seats and the mayor being up for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public safety
(police and fire), public works (streets and fleet), parks and recreation, conservation of natural resources
(environmental and solid waste abatement), public improvements, providing and maintaining sanitary and storm
sewer, water infrastructure, and two enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions are
required to submit appropriations requests to the City administrator for review and consolidation into a proposed
budget. The City administrator is responsible for submitting the proposed annual budget to the City Council in
August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by
resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond the
estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make
transfers of appropriations within a department, but transfers of appropriations between departments require
council approval. Budget -to -actual comparisons for the general fund and the recreation program fund, the only
funds for which an annual budget has been adopted, are provided in this report beginning on pages 60 and 80,
respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of three
industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the Clearwater
Creek Development Center on 35E, provided excellent opportunities for manufacturing and distribution
businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007 the Lino Lakes
Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive interchange, was developing
at a rapid pace. SuperTarget and Kohl's anchor the shopping center quadrant, while Apollo Business Park brought
approximately 1,000 new employees to the area. Land was purchased by Anoka County on a third quadrant for
future development of a regional library. Due to economic conditions, the County has pushed back construction of
the library to 2015.
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 is scheduled to begin
occupancy in early 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 to 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. This $11.1 million improvement was
financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued
$4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to
finance its portion of the project cost. Once construction gains its footing again the City can assess the benefitting
properties. The City continues to look for ways to resurrect the project and strives to be prepared to market the
property when the economy recovers.
Building activity and development continued to be soft in 2013, however, improvement in developer activity is
evident. Building permits for new homes in 2013 numbered 30, compared to 25 in 2012. In addition, 5 permits for
new commercial were issued in 2013, compared to 0 in 2012.
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 215` Avenue west of I -35E, which will leave the City well
poised to accommodate significant future industrial, commercial and residential development. Already the
development of a McDonald's restaurant is underway at CSAH 14 and Otter Lake Road. In addition,
Metropolitan Transit has received approval to develop a Park and Ride at I35 -E at CSAH 14 and 21St Avenue.
5
Factors Affecting Financial Condition (Continued)
Long-term financial planning. The City's currently adopted five-year financial plan identifies street and utility
improvements totaling $23,287,990 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. Also included in the final year of
the plan is a feasibility study for a new public works facility. Scheduled capital equipment and office equipment
needs and the financing for those needs are also included in the plan. The five-year plan also includes funding
projections for operations and operating impacts for the five-year period. This plan is in the process of being
revised to reflect the anticipated activity through the year 2018.
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, 2013 was $5,209,286, 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, commercial paper and U.S.
government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the
investment policy annually.
The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either insured
by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened
economy, a historically low interest rate environment has persisted over the last several years and has had a
dramatic impact on the city's investment earnings. The average interest income yield on investments for 2013 was
1.07%. 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 losses of $428,867, or -1.39%,
for a total investement yield of -0.32%. 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.
C
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, 2012. This
marks the seventeenth consecutive year the City has received this prestigious award. A governmental unit must
publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which
conform to program requirements. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2013 report to
GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our
current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of the
Finance Department, auditors and other city staff. A special thank you goes to city accountant, Paula Schloer, for
her efforts in assembling and reviewing information presented in this report. I also want to express my
appreciation to the Mayor and City Council for their support for maintaining the highest standard of
professionalism in the management of the financial operation of the City.
Respectfully submitted,
Alan J. Rolek
Director of Finance
7
Government Finance Officers Association
�
eificate of
Achievement
for Excellence
in Financial
Presented to
Clity of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2012
Executive Director/CEO
II.
FINANCIAL
SECTION
CI ` CliftonLarsonAllen LLP
4 CLAconnect.com
Clifton LarsonAllen
INDEPENDENT AUDITORS' REPORT
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, as of and for the year ended December 31, 2013, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
Management's Responsibility for 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.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
®-independent--r- Nexia International
INTERNATIONAL
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City of Lino Lakes as of December 31, 2013,
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, budgetary comparison information, and schedule of funding
progress to postemployment benefit plan, as listed in the table of contents be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with 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' basic financial statements. The combining fund financial
statements and other supplementary financial and other information, the introductory section, and
statistical section are presented for purposes of additional analysis and are not a required part of the
basic financial statements.
The combining fund statements, the combining schedule of indebtedness, and the debt service
payments to maturity — all bonds schedule are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic 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 fund statements, the combining schedule of indebtedness, and the debt service
payments to maturity — all bonds schedule are fairly stated, in all material respects, in relation to the
basic financial statements as a whole.
The introductory section, schedule of deferred tax levies, schedule of insurance in force, schedule of
taxable valuations, tax levies, and tax rates, and statistical section have not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on it.
10
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 28,
2014, on our consideration of the City of Lino Lakes' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the result of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City of Lino Lakes'
internal control over financial reporting and compliance.
ZZ ->7;;,
CliftonLarsonAllen LLP
Minneapolis, Minnesota
May 28, 2014
11
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial
statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the
fiscal year ended December 31, 2013. We encourage readers to consider the information presented here
in conjunction with additional information that we have furnished in our letter of transmittal, which can be
found on pages 3-7 of this report.
FINANCIAL HIGHLIGHTS
The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year
by $91,513,956 (net position). Of this amount $29,848,818 (unrestricted net position) may be used to
meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund
designations and fiscal policies.
The City's total net position decreased by $786,644 primarily due to annual depreciation of capital
assets and the use of municipal state aid funds that were advanced during 2012 for infrastructure
construction.
As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $21,577,573, an increase of $53,472 in comparison with the prior
year primarily due to the prepayment of special assessments for the 135-E/CSAH 14 interchange
(Improvement Note 2009F). Approximately 8% of this amount, or $1,815,739, is available for
spending at the City's discretion (unassigned fund balance).
At the end of the current fiscal year, unassigned fund balance for the general fund was $5,209,286, or
61 % of total general fund expenditures and other financing uses.
The City's total bonded debt decreased by $1,841,000 (8.7%) during the current fiscal period. The
City issued 2013A Equipment Certificates of $193,000 and a general obligation bond in the amount
$615,000 to finance the Otter Lake Road Extension project. Principal in the amount of $2,649,000
was retired during the year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic
financial statements. The City of Lino Lakes' basic financial statements comprise three components:
1. Government -wide financial statements
2. Fund financial statements
3. Notes to the financial statements
This report also contains other supplementary information in addition to the basic financial statements
themselves.
Government -wide financial statements The government -wide financial statements are designed to
provide readers with a broad overview of the City of Lino Lakes' finances, in a manner similar to private -
sector business.
The statement of net position presents information on all of the City of Lino Lakes' assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Lino Lakes is
improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses
are reported in this statement for some items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused compensated absences and OPEB liabilities).
12
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government -wide financial statements (Continued) Both of the government -wide financial statements
distinguish functions of the City of Lino Lakes that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all
or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the City of Lino Lakes include general government, public safety, public
services, parks, recreation and forestry, conservation of natural resources and community development.
The business -type activities of the City of Lino Lakes include a water utility and sewer utility.
The government -wide financial statements can be found on pages 22-24 of this report.
Fund financial statements A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements. All of the funds of the City of Lino Lakes can be divided into three
categories: governmental funds, proprietary funds and fiduciary funds.
Governmental funds — Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financing requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between
governmental functions and governmental activities.
The City of Lino Lakes maintains forty individual governmental funds. Information is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund,
Improvement Note 2009F fund, Municipal State Aid fund and Area and Unit Charge fund all of which are
considered to be major funds. Data from the other thirty-four governmental funds are combined into a
single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is
provided in the form of combining statements elsewhere in this report.
The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation
special revenue funds. A budgetary comparison statement has been provided for these funds to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 25 through 30 of this report.
Proprietary funds — The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities.
The proprietary fund statements provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements provide separate information for
the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The
basic proprietary fund financial statements can be found on pages 31 through 33 of this report.
13
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
individuals, private organizations, or other governments.
Notes to the financial statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to
the financial statements can be found on pages 35-59 of this report.
Other information — The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 68-81 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial
position. The City of Lino Lakes' assets exceeded liabilities by $91,513,956 at the close of the most
recent fiscal year, an decrease of $786,644 from the previous year. This decrease is primarily due annual
depreciation of capital assets and the use of municipal state aid that was advanced to the City during
2012.
By far the largest portion of the City of Lino Lakes' net position (55%) reflects its net investment in capital
assets (e.g. land, buildings, machinery, equipment, and infrastructure). The City of Lino Lakes uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City of Lino Lakes' investment in its capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves cannot be used to liquidate these liabilities.
Condensed versions of the statements of net position at December 31, 2013 and 2012 are as follows:
Of the remaining balance of the City of Lino Lakes' net position, restricted net position (12%) are to be
used for debt service requirements and a nonexpendable environmental fund. Unrestricted net position
(33%) may be used to meet the government's ongoing obligations to citizens and creditors.
14
Governmental Activities
Business -Type Activities
Total
2013
2012
2013
2012
2013
2012
Current and Other Assets
$ 33,326,625
$ 34,456,692
$ 13,092,332
$ 12,194,619
$ 46,418,957 $
46,651,311
Capital Assets
37,854,973
39,634,563
28,423,284
28,798,095
66,278,257
68,432,658
Total Assets
71,181,598
74,091,255
41,515,616
40,992,714
112,697,214
115,083,969
Noncurrent Liabilities Outstanding
20,006,657
21,875,614
54,182
43,410
20,060,839
21,919,024
Other Liabilities
1,083,451
815,149
38,968
49,196
1,122,419
864,345
Total Liabilities
21,090,108
22,690,763
93,150
92,606
21,183,258
22,783,369
Net Position:
Net Investment in Capital Assets
22,241,821
22,166,342
28,423,284
28,798,095
50,665,105
50,964,437
Restricted
11,000,033
11,595,112
-
-
11,000,033
11,595,112
Unrestricted
16,849,636
17,639,038
12,999,182
12,102,013
29,848,818
29,741,051
Total Net Position
$ 50,091,490
$ 51,400,492
$ 41,422,466
$ 40,900,108
$ 91,513,956 $
92,300,600
Of the remaining balance of the City of Lino Lakes' net position, restricted net position (12%) are to be
used for debt service requirements and a nonexpendable environmental fund. Unrestricted net position
(33%) may be used to meet the government's ongoing obligations to citizens and creditors.
14
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate governmental
and business -type activities.
Governmental activities Governmental activities decreased the City of Lino Lakes' net position by
$1,309,002. Reductions in Capital Grants and Contributions and in the fair value of investments, interest
on long-term debt service and property tax delinquencies account for this reduction for 2013.
Business -type activities Business -type activities increased the City of Lino Lakes' net position by
$522,358. Revenue from Charges for Services and transfers in provided directly for this increase.
Condensed statements of revenues, expenses, and changes in net position highlights are as follows for
the years ended December 31, 2013 and 2012:
REVENUES
Program Revenues:
Charges for Services
Operating Grants and Contributions
Capital Grants and Contributions
General Revenues:
Property Taxes
Franchise Taxes
Other Taxes
Contributions Not Restricted to
Specific Programs
Unrestricted Investment Earnings
Change in Market Value
Gain on Disposal of Capital Assets
Total Revenues
EXPENSES
General Government
Public Safety
Public Service
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Interest on Long -Term Debt
Water
Sewer
Total Expenses
CHANGE IN NET POSITION
BEFORE TRANSFERS
Transfers
CHANGE IN NET POSITION
Net Position - Beginning of Year
NET POSITION - END OF YEAR
Governmental Activities
Business -Type Activities
Total
20
2013
2012
2013
2012
$ 1,452,169 $
1,476,261
$ 2,725,139
$ 2,877,590
$ 4,177,308 $
4,353,851
527,368
450,179
-
-
527,368
450,179
941,960
5,125,693
883
20,018
942,843
5,145,711
8,392,601
8,461,621
-
-
8,392,601
8,461,621
109,438
95,003
109,438
95,003
61,556
54,085
61,556
54,085
4,442
4,941
-
-
4,442
4,941
216,488
202,828
113,402
102,073
329,890
304,901
(270,692)
-
(158,175)
-
(428,867)
-
-
4,175
-
-
-
4,175
11,435,330
15,874,786
2,681,249
2,999,681
14,116,579
18,874,467
1,566,388
1,883,961
-
-
1,566,388
1,883,961
3,950,197
4,046,415
3,950,197
4,046,415
4,540,888
5,584,283
4,540,888
5,584,283
835,783
1,210,867
835,783
1,210,867
141,204
184,051
141,204
184,051
404,726
430,121
404,726
430,121
951,842
837,755
-
-
951,842
837,755
-
-
927,800
949,121
927,800
949,121
-
-
1,584,395
1,527,637
1,584,395
1,527,637
12,391,028
14,177,453
2,512,195
2,476,758
14,903,223
16,654,211
(955,698)
1,697,333
169,054
522,923
(786,644)
2,220,256
(353,304)
41,043
353,304
(41,043)
-
1,309,002
522,358
481,880
(77,76474T
2,220,256
51,400,492
49,662,116
40,900,108
40,418,228
92,300,600
90,080,344
$ 50,091,490 $
51,400,492
$ 41,422,466
$ 40,900,108
$ 91,513,956 $
92,300,600
15
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the government activities' direct program revenues
with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or
general state aid.
Expenses and Program Revenues — Governmental Activities
$5,000,000
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
a\ go JeC��e�ti Q J�\\G$
a�et�l J1\\GSe�\oes r a�ako�es�c l ta\
Genet P ote2� 'k oa
e
Pats t e�a,\or
o°S
G
Revenues by Source — Governmental Activities
Franchis
19
Propertyt
73%
Unrestricted
Un restri cted grants investment
ae�e\09 9e��d
tes�o�\or
\rtie
16
■Expenses
■Revenues
)pe ratinggrants
nd contributions
5%
_Capital grants and
contributions
8%
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the business -type activities' direct program
revenues with their expenditures. Excess revenues are retained within each fund until such time that
capital replacement is needed.
Expenses and Program Revenues — Business -type Activities
$1,800,000
$1,600,000
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
Water
0 Expenses
■ Revenues
Revenues by Source — Business -type Activities
Sewer
Capital grants and Other
contributions 5%
Operating grants and 0%
contributions
0%
Charges for services
95%
17
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds — The focus of the City of Lino Lakes' governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Lino Lakes' financing requirements. GASB Statement 54, divides fund balances into
five categories: nonspendable, restricted, committed, assigned and unassigned. Definitions of these
categories can be found in Note 1.0 in the Notes to the Financial Statements. In particular, unassigned
fund balance may serve as a useful measure of a government's net resources available for unrestricted
spending at the end of the fiscal year. Approximately 8% of the total fund balance amount, or $1,815,739,
constitutes unassigned fund balance, which is available for spending at the government's discretion. The
remainder of fund balance is not available for new spending because it is restricted or has already been
committed or assigned for other purposes. As of the end of the current fiscal year, the City of Lino Lakes'
governmental funds reported combined ending fund balances of $21,577,573, an increase of $53,472, or
0.2%, from the previous year. This increase is primarily due to the receipt of special assessment
prepayments for the Improvement Note 2009F fund.
The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal
year, unassigned fund balance of the general fund stood at $5,209,286, while the total fund balance was
$5,386,083. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund
balance and total fund balance to total fund expenditures and financing uses. Unassigned fund balance
represents 61% of total general fund expenditures and financing uses, while total fund balance
represents 63% of that same amount.
The fund balance of the City of Lino Lakes' general fund increased by $152,266 during the current fiscal
year, while the city budget anticipated the use of up to $129,947 of the general fund balance. Overall, the
continued soft real estate market again resulted in reduced building activities this year which decreased
permit revenue. Even as signs of economic recovery were being seen, the remaining effects of the
recession also had an impact on property tax delinquencies. In addition, reduced expenditures, primarily
for personal services through vacant positions, and contractual services helped to offset the reduced
revenues. Overall, the general fund's revenues were within approximately 2% of the amended budget,
while expenditures and transfers were 4% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund deficit of ($2,101,738). This fund is related to
the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and
delinquency in the collection of special assessments dedicated to this issue caused a significant
decrease in this fund. An interfund loan from the Capital Improvements fund has aided in the payment of
debt service for this issue.
The Improvement Note 2009F fund, to service the debt issued to Anoka County as the City's financial
commitment for the 1-35E interchange project, ended the year with a fund balance of $996,291, an
increase of $995,800. The increase was directly due to the prepayment of a special assessment in 2013
for this project. This note, which was originally in the amount of $4,260,000, was reduced in 2011 to the
current amount of $3,695,000 to reflect cost savings during the contruction of this project.
The Municipal State Aid fund, a capital projects fund used to finance reconstruction of state aid eligible
streets, ended the year with a fund balance of $4,595,797. This fund received a large advance from the
Minnesota Municipal State Aid in 2012 equal to the next five annual construction installments. These
funds will be used over the next several years to pay debt service on the Tax Increment Bonds 2007A
and the Improvement Notes 2009F, and for future MSA projects.
The area and unit charge fund has a total fund balance of $4,170,051, all of which is assigned for
financing capital improvements. The fund balance during the current year increased by $197,335, due in
large part to the partial repayment of an interfund loan from the Dedicated Parks fund.
18
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED)
Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found
in the government -wide financial statements, but in more detail.
The water fund has total net position at year-end of $18,833,063, of which $4,972,620 is unrestricted. The
increase in net position of $519,918 was primarily due to operating income and capital contributions from
governmental activities.
Total net position in the sewer fund at the end of 2013 was $22,589,403, of which $8,026,562 was
unrestricted. The increase in net position of $2,440 was primarily due to capital contributions from
governmental activities.
The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates
were unchanged in 2013. A review of utility rates was completed in 2013. A 2% adjustment of water rates
and 4% adjustment of sewer rates will go into effect in January, 2014.
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budget was amended several times during the year reflecting increases licences and
permits, public safety charges for services, MSA maintenance aid and police aid; reductions in property
tax revenue, fines revenue, interest earnings and other miscellaneous revenues; and reallocating
resources within the original budget. The final amended budget is $36,000 less than the original adopted
budget.
Revenues were $64,908 under budget for the year. This is due primarily due to change in market value of
investments which is not budgeted for and accounted for $50,343 of this variance, tax collections also
came in under budget by $88,321. These two larger variances were offset by greater than anticipating
planning and engineering fees and licenses due to increased construction activity and greater than
anticipated public safety charges for services due to higher than anticipated traffic control contracts.
Expenditures came in under budget by $337,910 due mainly to lower than expected personal services
costs from vacant positions and unspent contingency budgets. Energy costs for fuels and electricity were
higher than budgeted amounts, and supplies costs were generally lower than anticipated. Spending on
contractual services was lower overall from budgeted levels. The contingency budget of $147,975 was
unspent for the year, contributing 44% of the expenditure variance. There were also net transfers from
the general fund of $565,789. This resulted in a net fund balance increase of $152,266 for the fiscal year,
compared to the planned reduction of $129,947.
19
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business -
type activities as of December 31, 2013, is $66,278,257. This investment in capital assets includes land,
buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and
infrastructure. This represents a decrease in the City of Lino Lakes' investment in capital assets of
approximately 3.1 %. The extension of Otter Lake Road north of CSAH 14 was completed during the year
by the City, adding to road and utility infrastructure. The only additions were from projects in progress.
The decrease within the governmental activities is attributable to the depreciation of buildings,
constructed streets, underground infrastructure and vehicles. Within the business -type activities
decreases were also attributable to depreciation of existing assets of the water and sewer funds.
Capital Assets at Year -End
(Net of Accumulated Depreciation)
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 46-47.
Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $15,585,000. Of this amount $9,865,000 comprises tax supported debt and $5,720,000 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 1-35E/County Road 14 Interchange project in the amount of $3,695,000.
Outstanding Debt at Year -End
Governmental Activities
Business -Type Activities
Total
2013
2013
2012
2013
2012
2013
2012
Land
$ 3,275,859
$ 3,275,859
$
$
$ 3,275,859
$ 3,275,859
Buildings
3,301,916
3,324,186
3,695,000
3,695,000
3,301,916
3,324,186
Office Equipment and Furniture
407,616
450,739
407,616
450,739
Vehicles
1,064,565
1,148,061
1,064,565
1,148,061
Machinery and Shop Equipment
340,245
392,625
232,927
195,903
573,172
588,528
Other Equipment
182,700
205,040
-
-
182,700
205,040
Infrastructure
29,282,072
30,838,053
28,190,357
28,602,192
57,472,429
59,440,245
Capital Assets, Net
37,854,973
39,634,563
28,423,284
28,798,095
66,278,257
68,432,658
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 46-47.
Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $15,585,000. Of this amount $9,865,000 comprises tax supported debt and $5,720,000 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 1-35E/County Road 14 Interchange project in the amount of $3,695,000.
Outstanding Debt at Year -End
The City of Lino Lakes' total bonded debt decreased by $1,841,000 (10.6%) during the current fiscal year.
The key factors for the change include the issuance of $193,000 in 2013A Equipment Certificates and the
issuance of a general obligation bond in the amount $615,000 to finance the extension of Otter Lake
Road. Principal in the amount of $2,649,000 was retired during the year. Additional information on the
City's long-term debt can be found in the notes to the financial statements on pages 48-50.
911
Governmental Activities Business -Type Activities
Total
2013
2012 2013 2012
2013
2012
G.O. Bonds
$ 9,865,000
$ 10,646,000 $ $
$ 9,865,000
$ 10,646,000
G.O. Special Assessment Bonds
5,720,000
6,780,000
5,720,000
6,780,000
Note Payable - Anoka County
3,695,000
3,695,000
3,695,000
3,695,000
Total Outstanding Debt
$ 19,280,000
$ 21,121,000 $ $
$ 19,280,000
$ 21,121,000
The City of Lino Lakes' total bonded debt decreased by $1,841,000 (10.6%) during the current fiscal year.
The key factors for the change include the issuance of $193,000 in 2013A Equipment Certificates and the
issuance of a general obligation bond in the amount $615,000 to finance the extension of Otter Lake
Road. Principal in the amount of $2,649,000 was retired during the year. Additional information on the
City's long-term debt can be found in the notes to the financial statements on pages 48-50.
911
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT'S DISCUSSION AND ANALYSIS
DECEMBER 31, 2013
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The unemployment rate for the City of Lino Lakes at year-end is 4.5%, which is a great improvement
from a rate of 5.6% a year ago. This is slightly lower than the state's average unemployment rate of
4.6% and significantly lower than the national average of 6.5% at the end of 2013.
Residential growth in the City has continued to be significantly below the rates of the mid 2000's due
to the general residential real estate market weakness, with about one-third the number of new home
permits issued in 2013 as in 2007, and less than 84% of new home permits issued in 2005. This is an
improvement over recent years. Recently increased building and development activities are signalling
the beginning of a recovery of the housing market. Property values of the existing tax base are
expected to firm will continue to have an impact on the City's tax base for 2014.
Energy costs are expected to continue to increase over the coming months. This will have an impact
on the City's budget for the coming year and thereafter.
Property tax reforms and State budget deficits have significantly impacted state aid payments the City
of Lino Lakes receives. Local government aid and market value homestead credit was reduced to
zero for 2003 and 2004-2011. The City is exempted from local government aid and the state
legislature has discontinued the market value homestead credit in favor of a new market value
exclusion, which excludes a portion of residential homestead property value from property taxes.
The Federal Reserve Board has continued the federal funds rates at historical lows, currently to
between 0.00% — 0.25%, which is expected to result in sizable decreases in the City's investment
earnings.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of
those with an interest in the government's finances. Questions concerning any of the information provided
in this report or requests for additional financial information should be addressed to the Director of
Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014.
21
BASIC FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2013
Statement 1
The accompanying notes are an integral part of these basic financial statements.
22
Governmental
Business -type
Activities
Activities
Total
ASSETS
Cash and investments
$ 22,028,036
$ 12,077,789
$ 34,105,825
Accrued interest receivable
71,531
-
71,531
Accounts receivable
112,717
415,086
527,803
Due from other governments
67,878
1,643
69,521
Internal balances
(559,110)
559,110
-
Taxes receivable
301,342
-
301,342
Special assessments receivable
10,779,249
2,624
10,781,873
Long-term notes receivable
225,000
-
225,000
Prepaid items
178,507
21,396
199,903
Inventory
-
14,684
14,684
Permanently restricted cash and investments
121,475
-
121,475
Capital assets:
Land
3,275,859
-
3,275,859
Other capital assets, net of depreciation
34,579,114
28,423,284
63,002,398
Total assets
71,181,598
41,515,616
112,697,214
LIABILITIES
Accounts payable
398,205
23,951
422,156
Salaries payable
243,829
14,720
258,549
Contracts and retainage payable
143,141
-
143,141
Accrued interest payable
295,994
-
295,994
Due to other governments
517
-
517
Other accrued liabilities
1,765
297
2,062
Non-current liabilities:
Due within one year
3,426,332
34,824
3,461,156
Due in more than one year
16,580,325
19,358
16,599,683
Total liabilities
21,090,108
93,150
21,183,258
NET POSITION
Net Investment in Capital Assets
22,241,821
28,423,284
50,665,105
Restricted for:
Debt service - expendable
10,653,558
-
10,653,558
Economic development
225,000
-
225,000
Environmental improvements - expendable
21,475
-
21,475
Environmental improvements - nonexpendable
100,000
-
100,000
Unrestricted
16,849,636
12,999,182
29,848,818
Total net position
$ 50,091,490
$ 41,422,466
$ 91,513,956
The accompanying notes are an integral part of these basic financial statements.
22
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2013
Functions/Programs Expenses
Governmental activities:
Program Revenues
Capital
Charges for Operating Grants Grants and
Services and Contributions Contributions
General government $
1,566,388 $
93,118 $
24,197 $
-
Public safety
3,950,197
697,584
207,187
-
Public services
4,540,888
456,024
231,753
941,960
Parks, recreation and forestry
835,783
175,978
16,204
-
Conservation of natural resources
141,204
1,347
48,027
-
Community development
404,726
28,118
-
-
Interest on long-term debt
951,842
-
-
-
Total governmental activities
12,391,028
1,452,169
527,368
941,960
Business -type activities:
Water
927,800
1,208,742
-
442
Sewer
1,584,395
1,516,397
-
441
Total business -type activities
2,512,195
2,725,139
-
883
Total $
14,903,223 $
4,177,308 $
527,368 $
942,843
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise taxes
Other taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Change in market value
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning
Net position - ending
The accompanying notes are an integral part ofthese basic financial statements.
23
Statement 2
Net (Expense) Revenue and Changes in Net Position
Governmental
Business -type
8,392,601
Activities
Activities
Total
61,556
-
61,556
$ (1,449,073)
$ -
$ (1,449,073)
(3,045,426)
-
(3,045,426)
(2,911,151)
-
(2,911,151)
(643,601)
-
(643,601)
(91,830)
-
(91,830)
(376,608)
-
(376,608)
(951,842)
-
(951,842)
(9,469,531)
-
(9,469,531)
-
281,384
281,384
-
(67,557)
(67,557)
-
213,827
213,827
(9,469,531)
213,827
(9,255,704)
8,392,601
-
8,392,601
109,438
-
109,438
61,556
-
61,556
4,442
-
4,442
216,488
113,402
329,890
(270,692)
(158,175)
(428,867)
(353,304)
353,304
-
8,160,529
308,531
8,469,060
(1,309,002)
522,358
(786,644)
51,400,492
40,900,108
92,300,600
$ 50,091,490
$ 41,422,466
$ 91,513,956
24
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2013
Assets
Cash and investments
Accrued interest receivable
Accounts receivable
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from county
Delinquent tax increment
Special assessments receivable:
Delinquent
Noncurrent
Due from county
Long-term notes receivable
Prepaid items
Permanently restricted cash and investments
Advances to other funds
Total assets
Liabilities, Deferred Inflows of
Resources and Fund Balances
Liabilities:
Interfund payable
G.O.
Improvement
Municipal
Accounts payable
Improvement
Note
State
General
Bonds 2005A
2009F
Aid
$ 5,300,509
$ 157,905
$ 996,291
$ 4,595,797
71,531
-
-
-
88,282
-
-
-
66,378
-
-
-
185,420
-
-
-
79,849
-
-
-
-
-
515
-
6,451
5,561,118
3,548,573
-
176,797
-
-
-
Restricted
-
-
996,291 -
$ 5,975,217
$ 5,719,023
$ 4,545,379
$ 4,595,797
Interfund payable
$ -
$ 2,259,643 $
- $ -
Accounts payable
153,157
-
- -
Salaries payable
243,589
-
- -
Contracts and retainage payable
-
-
- -
Due to other governmental units
517
-
- -
Advances from other funds
-
-
- -
Unearned revenue
-
-
-
Total liabilities
397,263
2,259,643
- -
Deferred inflows of resources:
Unavailable resources
191,871
5,561,118
3,549,088 -
Fund balances:
Nonspendable
176,797
-
- -
Restricted
-
-
996,291 -
Committed
-
-
- -
Assigned
-
-
- 4,595,797
Unassigned
5,209,286
(2,101,738)
- -
Total fund balances
5,386,083
(2,101,738)
996,291 4,595,797
Total liabilities , deferred inflows of
resources and fund balances
$ 5,975,217
$ 5,719,023 $
4,545,379 $ 4,595,797
The accompanying notes are an integral part of these basic financial statements
25
Statement 3
Area and Other Total
Unit Governmental Governmental
Charge Funds Funds
$ 3,661,631 $ 7,315,903 $ 22,028,036
- - 71,531
24,434 - 112,716
- 1,500 67,878
2,534,940 2,534,940
- 24,648 210,068
11,127 90,976
- 298 298
34,776
22,580
57,871
905,126
672,090
10,693,358
23,189
4,831
28,020
-
225,000
225,000
-
1,710
178,507
-
121,475
121,475
460,881
-
460,881
$ 5,110,037 $ 10,936,102 $ 36,881,555
$ -
$ 834,407
$ 3,094,050
84
244,963
398,204
-
240
243,829
-
143,141
143,141
-
-
517
-
460,881
460,881
-
1,765
1,765
84
1,685,397
4,342,387
939,902
719,616
10,961,595
-
101,710
278,507
-
2,655,259
3,651,550
-
121,075
121,075
4,170,051
6,944,854
15,710,702
-
(1,291,809)
1,815,739
4,170,051
8,531,089
21,577,573
$ 5,110,037 $ 10,936,102 $ 36,881,555
26
CITY OF LINO LAKES, MINNESOTA Statement 4
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION
December 31, 2013
Total Fund Balances for Governmental Funds $ 21,577,573
Total net position reported for governmental activities in the statement of net position
is different because:
Capital assets used in governmental funds are not financial resources and,
therefore, are not reported in the funds. Those assets consist of:
Land
$ 3,275,859
Buildings, Net of Accumulated Depreciation
3,301,916
Office Equipment and Furniture, Net of Accumulated Depreciation
407,616
Vehicles, Net of Accumulated Depreciation
1,064,565
Machinery and Shop Equipment, Net of Accumulated Depreciation
340,245
Other Equipment, Net of Accumulated Depreciation
182,700
Infrastructure, Net of Accumulated Depreciation
29,282,072 37,854,973
Some of the City's property taxes and special assessments will be collected after
(614,536) (20,006,657)
year-end, but are not available soon enough to pay for the current period's
$ 50,091,490
expenditures and, therefore, are reported as a deferred inflow of resources in the
governmental funds.
10,961,595
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due. Accrued interest for general obligation
bonds is included in the statement of net position.
(295,994)
Long-term liabilities that pertain to governmental funds, including bonds payable,
are not due and payable in the current period and, therefore, are not reported as
fund liabilities. All liabilities - both current and long-term - are reported in the
statement of net position. Balances at year-end are:
Bonds Payable
(15,585,000)
Unamortized Premiums
(50,835)
Unamortized Discounts
22,683
Notes Payable
(3,695,000)
Other Postemployment Benefits
(83,969)
Compensated Absence Payable
(614,536) (20,006,657)
Total Net Position of Governmental Activities
$ 50,091,490
The accompanying notes are an integral part of these basic financial statements
27
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2013
Revenue:
General property taxes
Tax increments
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
Net increase (decrease) in fair value of investments
Refunds
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public safety
Public works
Parks, recreation and forestry
Conservation of natural resources
Community development
Capital outlay:
General government
Public safety
Public works
Conservation of natural resources
Debt service:
Principal
Interest and fiscal charges
Bond issuance costs
Total expenditures
Revenue over (under) expenditures
Other financing sources (uses):
Transfer in
Transfer out
Sale of property
Issuance of debt
Premium on bonds issued
Payment on refunding bonds
Total other financing sources (uses)
Net increase (decrease) in fund balance
Fund balance - beginning of year
Fund balance - December 31
G.O. Improvement Municipal
Improvement Note State
431,654 - - -
500,963 - - -
20,616 290,500 1,037,820 -
296,185 - - -
119,079 - - -
38,093 - 324 49,950
(50,343) - (14) (70,035)
38,092 - - -
114,390 - - -
8,696,530 290,500 1,038,130 (20,085)
1,535,416 - -
3,744,957 - -
1,281,135 - -
842,253 - -
134,127 - - -
409,487 - - -
3,206 - - -
32,008 - - -
5,886 - - -
- 345,000 - -
186,713 132,558 -
708,055 (241,213) 905,572 (20,085)
10,000 142,736 90,228 -
(565,789) - - (421,254)
152,266 (98,477) 995,800 (441,339)
5,233,817 (2,003,261) 491 5,037,136
$ 5,386,083 $ (2,101,738) $ 996,291 $ 4,595,797
4.1
Statement 5
Area and
Other
Total
Unit
Governmental
Governmental
Charge
Funds
Funds
$ -
$ 1,021,594
$ 8,209,395
-
265,819
265,819
-
-
431,654
-
-
500,963
486,434
295,149
2,130,519
244,481
176,634
717,300
-
-
119,079
51,435
83,008
222,810
(43,232)
(112,652)
(276,276)
-
17,238
55,330
-
215,029
329,419
739,118
1,961,819
12,706,012
-
34,306
1,569,722
-
-
3,744,957
64,545
1,608,289
2,953,969
-
160,544
1,002,797
-
-
134,127
-
9,046
418,533
- 6,053 9,259
- 192,782 224,790
51,200 - 51,200
- - 5,886
-
1,869,000
2,214,000
-
454,901
774,172
-
17,137
17,137
115,745
4,352,058
13,120,549
623,373
(2,390,239)
(414,537)
-
1,479,577
1,722,541
(426,038)
(237,736)
(1,650,817)
-
16,727
16,727
-
808,000
808,000
-
6,558
6,558
-
(435,000)
(435,000)
(426,038)
1,638,126
468,009
197,335
(752,113)
53,472
3,972,716
9,283,202
21,524,101
$ 4,170,051
$ 8,531,089
$ 21,577,573
M
CITY OF LINO LAKES, MINNESOTA Statement 6
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Year Ended December 31, 2013
Net Change in Fund Balances -Total Governmental Funds $ 53,472
Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities,
assets are capitalized and the cost is allocated over their estimated useful lives and reported as
depreciation expense.
Capital outlays $ 1,306,334
Loss on disposal of capital assets (159,650)
Proceeds from sales of capital assets (16,727)
Depreciation expense (2,909,547) (1,779,590)
The governmental funds report bond proceeds as financing sources, while repayment of bond
principal is reported as an expenditure. In the statement of net position, however, issuing debt
increases long-term liabilities and does not affect the statement of activities and repayment of
principal reduces the liability. Also, governmental funds report the effect of premiums and
discounts when debt is first issued, whereas these amounts are deferred and amortized in the
statement of activities. Interest is recognized as an expenditure in the governmental funds when it
is due. In the statement of activities, however, interest expense is recognized as it accrues,
regardless of when it is due. The net effect of these differences in the treatment of general
obligation bonds and related items is as follows:
Issuance of bonds
(615,000)
Issuance of equipment certificates
(193,000)
Bond premium
(6,558)
Repayment of bond principal
2,649,000
Change in accrued interest expense for general obligation bonds
38,046
Write-off of bond issuance costs
(219,206)
Amortization of bond premium
23,096
Amortization of bond discount
(2,469) 1,673,909
Delinquent and noncurrent property taxes and special assessments receivable will be collected
subsequent to year-end, but are not available soon enough to pay for the current period's
expenditures and, therefore, are not available in the governmental funds.
Unavailable resources - December 31, 2012 12,232,276
Unavailable resources - December 31, 2013 10,961,595 (1,270,681)
In the statement of activities, compensated absences and other post employment benefits are
measured by the amounts earned during the year. In the governmental funds, however,
expenditures for these items are measured by the amount of financial resources used (essentially,
the amounts actually paid). During fiscal year 2013, compensated absence payable and other post
employment benefits payable decreased. 13,888
Change in Net Position of Governmental Activities $ (1,309,002)
The accompanying notes are an integral part of these basic financial statements.
30
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
December 31, 2013
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Due from other governmental units
Interfund receivable
Due from county - special assessments
Prepaid items
Total current assets
Non-current assets:
Inventory
Capital assets being depreciated:
Buildings
Equipment
Water and sewer systems
Total capital assets
Less: allowance for depreciation
Net capital assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities:
Accounts payable
Salaries payable
Other accrued liabilities
Compensated absences payable - current portion
Total current liabilities
Non-current liabilities:
Compensated absences payable - long term
Total liabilities
Net position
Investment in capital assets
Unrestricted
Total net position
The accompanying notes are an integral part of these basic financial statements.
31
Statement 7
18,881,874 22,633,742 41,515,616
14,064
9,887
Total
Water
Sewer
2013
$ 4,791,243
$ 7,286,546
$ 12,077,789
207,315
207,771
415,086
-
1,643
1,643
-
559,110
559,110
1,312
1,312
2,624
6,877
14,519
21,396
5,006,747
8,070,901
13,077,648
14,684
-
14,684
48,690
-
48,690
155,276
390,235
545,511
20,088,392
21,406,972
41,495,364
20,292,358
21,797,207
42,089,565
(6,431,915)
(7,234,366)
(13,666,281)
13,860,443
14,562, 841
28,423,284
13,875,127
14,562,841
28,437,968
18,881,874 22,633,742 41,515,616
14,064
9,887
23,951
7,359
7,361
14,720
297
-
297
17,412
17,412
34,824
39,132
34,660
73,792
9,679
9,679
19,358
48,811
44,339
93,150
13,860,443
14,562, 841
28,423,284
4,972,620
8,026,562
12,999,182
$ 18,833,063
$ 22,589,403
$ 41,422,466
CITY OF LINO LAKES, MINNESOTA Statement 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS
Year Ended December 31, 2013
Operating revenue:
Charges for services
Hook-up charges
Water meter sales
Other operating revenue
Total operating revenue
Operating expenses:
Personal services
Materials and supplies
Contractual services
MCES sewer charges
Depreciation
Utilities
Other
Total operating expenses
Net income (loss) from operations
Other income (expense):
Investment earnings
Net increase (decrease) in fair value of investments
Special assessments
Total other expense
Net income before contributions and transfers
Capital contributions and transfers:
Capital contributions from primary government
Transfer out
Total contributions and transfers
Change in net position
Net position - January 1
Net position - December 31
The accompanying notes are an integral part of these basic financial statements.
32
Total
Water Sewer 2013
$ 1,176,917
$ 1,508,997
$ 2,685,914
8,750
7,400
16,150
12,332
-
12,332
10,743
-
10,743
1,208,742
1,516,397
2,725,139
187,942
192,292
380,234
148,516
65,547
214,063
58,886
80,653
139,539
-
747,199
747,199
416,468
437,725
854,193
96,850
45,123
141,973
19,138
15,856
34,994
927,800
1,584,395
2,512,195
280,942
(67,998)
212,944
43,075
70,327
113,402
(60,082)
(98,093)
(158,175)
442
441
883
(16,565)
(27,325)
(43,890)
264,377
(95,323)
169,054
291,403
133,625
425,028
(35,862)
(35,862)
(71,724)
255,541
97,763
353,304
519,918
2,440
522,358
18,313,145
22,586,963
40,900,108
$ 18,833,063
$ 22,589,403
$ 41,422,466
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2013
Cash flows from operating activities:
Cash receipts from customers
Cash paid to suppliers
Cash paid to employees
Net cash flows from operating activities
Cash flows from noncapital financing activities:
Net transfers
Cash flows from capital and related financing activities:
Collection of special assessments
Acquisition of capital assets
Net cash flows used by capital and related
financing activities
Cash flows from investing activities:
Interest on investments
Net increase in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income to net cash
from operating activities:
Operating income (loss)
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation
Change in assets and liabilities:
Increase in receivables
(Increase) decrease in prepaid items
Increase in inventory
Increase (decrease)in payables
Net cash flows from operating activities
Noncash investing, capital, and financing activities:
Capital asset contributions from government
The accompanying notes are an integral part of these basic financial statements.
33
Statement 9
Total
Water Sewer 2013
$ 1,222,831 $ 1,520,747 $ 2,743,578
(304,250) (962,241) (1,266,491)
(180,975) (185,675) (366,650)
737,606 372,831 1,110,437
(35,862) (35,862) (71,724)
(835) 682 (153)
(3,000) (51,353) (54,353)
(3,835) (50,671) (54,506)
(17,007) (27,766) (44,773)
680,902 258,532 939,434
4,110,341 7,028,014 11,138,355
$ 4,791,243 $ 7,286,546 $ 12,077,789
$ 280,942 $ (67,998) $ 212,944
416,468 437,725 854,193
14,089 4,350 18,439
2,660 (2,957) (297)
24,614 - 24,614
(1,167) 1,711 544
$ 737,606 $ 372,831 $ 1,110,437
$ 291,403 $ 133,625 $ 425,028
CITY OF LINO LAKES, MINNESOTA Statement 10
STATEMENT OF NET POSITION - FIDUCIARY FUNDS - AGENCY FUNDS
December 31, 2013
Assets
Cash and investments
Liabilities
Deposits payable
The accompanying notes are an integral part of these financial statements.
34
2013
$ 669,478
$ 669,478
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under
home rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally
accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies:
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accepted accounting principles, the financial statements of the reporting
entity include those of the City of Lino Lakes and its component units. A component unit is a legally
separate entity for which the primary government is financially accountable, or for which the exclusion of
the component unit would render the financial statements of the primary government misleading. The
criteria used to determine if the primary government is financially accountable for a component unit
include whether or not the primary government appoints the voting majority of the potential component
unit's board, is able to impose its will on the potential component unit, is in a relationship of financial
benefit or burden with the potential component unit, or is fiscally depended upon by the potential
component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of component
units have been included in the financial reporting entity either as blended component units or as discretely
presented component units.
Blended Component Units
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations
because the members of the City Council serve as commission members. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members. The HRA
has not yet incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government -Wide Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) display information about the primary government and its component units. These statements
include the financial activities of the overall City government, except for fiduciary activities. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business -type activities, which rely to a significant extent on fees and charges to external parties for
support. As a general rule, the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are charges between the City's enterprise funds and
various other functions of government. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
35
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
1. Government -Wide Statements (Continued)
In the government -wide statement of net position, both the governmental and business -type activities
columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt
and obligations. The City's net position is reported in three parts: (1) net investment in capital assets;
(2) restricted net position; and (3) unrestricted net position. The City first utilizes restricted resources to
finance qualifying activities.
The statement of activities demonstrates the degree to which the direct expenses of each function of the
City's governmental activities and different business -type activities are offset by program revenues. Direct
expenses are those that are clearly identifiable with a specific function or activity. Program revenues
include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a
given function or activity; and (2) grants and contributions that are restricted to meeting the operational or
capital requirements of a particular function or activity. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
2. Fund Financial Statements
The fund financial statements provide information about the City's funds, including its fiduciary funds and
blended component unit. Separate statements for each fund category (governmental, proprietary, and
fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on
major individual governmental and enterprise funds, with each displayed as separate columns in the fund
financial statements. All remaining governmental and enterprise funds are aggregated and reported as
nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment
earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund
The general fund is the City's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds 2005A Fund
The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for,
and the payment of, interest, principal and related costs on general long-term debt.
Improvement Note 2009F Fund
The improvement note 2009F fund accounts for the accumulation of resources for, and the payment of,
interest, principal and related costs on general long-term debt.
Municipal State Aid Fund
The Municipal State Aid fund accounts for the collection of assessments on municipal state aid projects.
36
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
Area and Unit Charge Fund
The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for
debt payments and construction of governmental infrastructure.
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service charges that are used to finance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer water service charges that are used to finance water operating
expenses.
Additionally, the City reports the following fiduciary funds:
Agency Funds - to account for assets held as an agent for individuals, private organizations, other
governmental units, and/or other funds. The City's agency fund accounts for pass-through contractor's
deposits relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government -wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary
Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded
when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all revenues to be available if they are collected within 60
days after the end of the current period. Property and other taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for
principal and interest on general long-term debt, compensated absences, and claims and judgments, which
are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt
and acquisitions under capital leases are reported as other financing sources.
37
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services,
or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions,
including special assessments.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the
City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund.
Budgeted expenditure appropriations lapse at year-end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by
the City because it is not presently considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E. LEGAL COMPLIANCE — BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the
following January 1. The operating budget includes proposed expenditures and the means of financing
them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can be
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the
City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the
Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and
calculate user charges. These debt service and budget amounts represent general obligation bond
indenture provisions and net income for operation and capital maintenance and are not reflected in the
financial statements.
38
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE — BUDGETS (CONTINUED)
7. A capital improvement program is reviewed periodically by the City Council for the Capital Project
Funds. However, appropriations for major projects are not adopted until the actual bid award of the
improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved
by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e.
administration, community development, public safety, public services, and other).
9. The City Council may authorize transfers of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in investments
authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis
of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advancing fund in the governmental fund
financial statements, and an interfund payable in the fund with the deficit, until adequate resources are
received. These interfund payables are eliminated for statement of Net position presentation.
Investments are stated at fair value and interest earnings are accrued at year-end.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
Permanently restricted cash and investments represents the principal portion of resources received that
must be retained in a permanent fund. Only earnings from these funds may be used for purposes that
support environmental maintenance and improvements.
G. PROPERTY TAX CREDITS
Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax
credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property.
The State remits these credits through installments each year. These credits are recognized as revenue by
the City at the time of collection.
39
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes
become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are
payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are
payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County
and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for
November and December are received the following January. The City has no ability to enforce payment of
property taxes by property owners. The County possesses this authority.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. In practice, current
and delinquent taxes and State credits received by the City in July, December and the following January
are recognized as revenue for the current year. Taxes and credits not received at the year-end are classified
as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the
City in January is fully offset by deferred inflows of resources because it is not available to finance current
expenditures. Deferred inflows of resources in governmental fund are susceptible to full accrual on the
government -wide statements.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth
since 1971. Property taxes paid to the City through this formula for 2013 totaled $1,094,578. Receipt of
property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue.
L SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as property
taxes. Property owners are allowed to (and often do) prepay future installments without interest or
prepayment penalties.
Within the fund financial statements, the revenue from special assessments is recognized by the City when
it becomes measurable and available to finance expenditures of the current fiscal period. In practice,
current and delinquent special assessments received by the City are recognized as revenue for the current
year. Special assessments are collected by the County and remitted by December 31 (remitted to the City
the following January) and are also recognized as revenue for the current year. All remaining delinquent,
noncurrent and special assessments receivable in governmental funds are completely offset by deferred
inflow of resources. Deferred inflows of resources in governmental funds are susceptible to full accrual on
the government -wide statements.
40
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED)
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first
proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Generally, the City will collect the full amount of its special assessments
not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which
event the property is subject to such sale after five years.
J. INVENTORIES AND PREPAIDS
The original cost of materials and supplies has been recorded as expenditures/expenses at the time of
purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts
of materials and supplies.
Certain payments to vendors reflect costs applicable to future accounting periods and are reported as
prepaid items under the purchases method in both government -wide and fund financial statements.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transactions occur between individual funds for goods provided
or services rendered. The year-end balances are classified as interfund receivables and payables on the
governmental fund balance sheets. The non-current portion of interfand loans are reported as "advances
to/from other funds." Advances between funds are offset by a nonspendable fund balance account in
applicable governmental funds to indicate they are not available for appropriation and are not expendable
from available financial resources.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks,
street lights, and similar items) are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets exceeding the City's capitalization
threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects
are constructed. All existing City infrastructure has been capitalized regardless of date placed in service.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net 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 25 to 50 years for Infrastructure.
Capital assets not being depreciated include land and construction in progress.
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation, PTO (Personal Time
Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay allowable
as severance pay is accrued in the government -wide and proprietary fund financial statements. The current
portion is calculated based on historical trends.
N. LONG-TERM OBLIGATIONS
In the entity -wide financial statements, long-term debt and other long-term obligations are reported as
liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight-line method. Bond issue costs, if material, are
amortized over the term of the related debt using the straight-line method.
In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs
are recognized during the current period. The face amount of the debt issue is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts are
reported as other financing uses. Issue costs are reported as debt service expenditures.
O. FUND EQUITY
In the fund financial statements, governmental funds report fund balances in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable — portions of fund balance related to prepaids, inventories, long-term receivables,
and corpus on any permanent fund.
Restricted — funds are constrained by external parties (statute, grantors, bond agreements, etc).
Committed — funds are established and modified by a resolution approved by the City Council.
Assigned — consists of internally imposed constraints. These constraints are established by the
City Council and/or management. The City Council also delegates the authority to assign fund
balance to the Finance Director.
Unassigned — is the residual classification for the General Fund and also reflects negative residual
amounts in other funds.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is
available, it is the City's policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are
available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an
unassigned fund balance range of 40% - 50% of General Fund operating expenditures.
42
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. FUND EQUITY (CONTINUED)
The fund equity balances in the proprietary funds have been classified into two broad categories:
Net position — net investment in capital assets
Unrestricted net position
Net position represents the differences between assets and liabilities in the government -wide financial
statements. Net position — net investment in capital assets consists of capital assets, net of accumulated
depreciation, reduced by the ouststanding balance of any long-term debt used to build or acquire capital
assets. Net position is reported as restricted in government -wide financial statements when there are
limitations on their use thorugh external restrictions imposed by creditors, grantors, or laws or regulations
of other governments.
P. INTERFUND TRANSACTIONS
Interfund services provided and used are accounted for as revenues, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions
are reported as transfers.
All Interfund transactions are eliminated except for activity between governmental activities and business -
type activities for presentation in the entity -wide statements of Net position and statements of activities.
Note 2 DEPOSITS AND INVESTMENTS
Components of Cash and Investments
Cash and investments at year-end consists of the following:
Deposits
Investments
Cash on Hand
Total
Cash and investments are presented in the financial statements as follows:
Cash and Investments - Statement of Net Position
Permanent restricted Cash and Investments - Statement of Net Position
Cash and Investments - Statement of Net Position - Fiduciary Funds
Total
A. DEPOSITS
$ 3,252,636
31,643,322
820
$ 34,896,778
$ 34,105,825
121,475
669,478
$ 34,896,778
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's
portion of this pool is displayed on the statement of net position and the balance sheet as "Cash and
Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions
which are authorized by the City Council.
43
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
A. DEPOSITS (CONTINUED)
Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the
City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial
credit risk but rather follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits
be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal
110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include:
U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of
a state or local government rated "A" or better; revenue obligations of a state or local government rated
"AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits
insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in
safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a
commercial bank or other financial institution not owned or controlled by the depository.
The City's deposits in banks at December 31, 2013 were entirely covered by federal depository insurance
or by surety bonds and collateral in accordance with Minnesota Statutes.
B. INVESTMENTS
The City may also invest idle funds as authorized by Minnesota Statutes as follows:
Direct obligations or obligations guaranteed by the United States or its agencies
Shares of investment companies registered under the Federal Investment Company Act of 1940 and
received the highest credit rating, is rated in one of the two highest rating categories by a statistical
rating agency, and all of the investments have a final maturity of thirteen months or less
General obligations rated "A" or better; revenue obligations rated "AA" or better
General obligations of the Minnesota Housing Finance Agency rated "A" or better
Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System
Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of
highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days
or less
Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches
of foreign banks or United States insurance companies if similar debt obligations of the issuer or the
collateral pledged by the issuer is in the top two rating categories
Repurchase or reverse purchase agreements and securities lending agreements financial institutions
qualified as a "depository" by the government entity, with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or certain Minnesota securities
broker-dealers
Any security which is an obligation of a school district with an original maturity not exceeding 13
months and (i) rated in the highest category by a national bond rating service or (ii) enrolled in the
credit enhancement program pursuant to section 126C.55.
Investments Held with Broker —
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value
to changes in market interest rates. The City's policy to minimize interest rate risk includes investing
primarily in short-term securities and structuring the investment portfolio so that securities mature to meet
cash requirements for ongoing operations. Information about the sensitivity of the fair values of the City's
investments to market interest rate risk fluctuations is provided by the following table that shows the
distribution of the City's investments by maturity:
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
B. INVESTMENTS (CONTINUED)
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. The City's policy to minimize credit risk includes limiting investing funds to those
allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments
are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The following chart summarizes year-end ratings for
the City's investments as rated by Moody's Investors Service:
Credit
12 Months
13 to 24
25 to 60
More than
Type
Total
or Less
Months
Months
60 Months
Minnesota Municipal Money
Aaa/AA+
348,593
Federal National Mortgage Assn.
Aaa/AA+
2,543,496
Market Trust Fund
$ 944,001
$ 944,001
$
$
$ -
Federal Home Loan Bank
2,434,579
-
Total
2,434,579
Federal Home Loan Mortgage Corp.
348,593
348,593
-
Federal National Mortgage Assn.
2,543,496
-
597,449
1,946,047
Negotiable CDs
12,899,752
6,410,000
4,057,457
2,432,295
-
Municipal Bonds
10,953,310
1,145,804
2,135,439
5,704,334
1,967,733
Mutual Fund
1,519,591
1,519,591
-
-
-
Total
$ 31,643,322
$ 10,019,396
$ 6,192,896
$ 9,082,671
$ 6,348,359
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. The City's policy to minimize credit risk includes limiting investing funds to those
allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments
are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The following chart summarizes year-end ratings for
the City's investments as rated by Moody's Investors Service:
The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with
the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
statutes as described on the previous page. Its investments are valued at amortized cost, which
approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The
amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the fair value of instruments.
The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who
administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2.
For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
will not be able to recover the value of its investment or collateral securities that are in the possession of an
outside party. The City's investment policy doesn't specifically address custodial credit risk.
45
Credit
Type
Quality Rating
Amount
Minnesota Municipal Money Market Trust Fund
Aa2
$ 944,001
Federal Home Loan Bank
Aaa/AA+
2,434,579
Federal Home Loan Mortgage Corp.
Aaa/AA+
348,593
Federal National Mortgage Assn.
Aaa/AA+
2,543,496
Negotiable CDs
Not Rated
12,899,752
Municipal Bonds
A-Aaa
10,953,310
Mutual Fund
Not Rated
1,519,591
Total
$ 31,643,322
The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with
the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
statutes as described on the previous page. Its investments are valued at amortized cost, which
approximates market value in accordance with Rule 2a-7 of the Investment Company Act of 1940. The
amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the fair value of instruments.
The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who
administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2.
For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
will not be able to recover the value of its investment or collateral securities that are in the possession of an
outside party. The City's investment policy doesn't specifically address custodial credit risk.
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
B. INVESTMENTS (CONTINUED)
Concentration of Credit Risk
The City places no limit on the amount that it may invest in any one issuer. The following is a list of
investments which individually comprise more than 5% of the City's total investments:
Type Amount Percentage
Federal National Mortgage Assn. $ 2,543,496 8.04%
Federal Home Loan Bank 2,434,579 7.69%
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2013 was as follows:
46
Beginning
Ending
Balance
Increases
Decreases
Balance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land
$ 3,275,859
$ -
$
$ 3,275,859
Capital Assets, Being Depreciated:
Buildings
6,530,334
195,783
6,726,117
Office Equipment and Furniture
1,372,230
36,904
(26,102)
1,383,032
Vehicles
2,514,738
159,041
(130,829)
2,542,950
Machinery and Shop Equipment
923,595
(3,000)
920,595
Other Equipment
952,447
-
952,447
Infrastructure
77,876,924
914,606
(183,726)
78,607,804
Total Capital Assets, Being Depreciated
90,170,268
1,306,334
(343,657)
91,132,945
Accumulated Depreciation for:
Buildings
(3,206,148)
(218,053)
-
(3,424,201)
Office Equipment and Furniture
(921,491)
(80,027)
26,102
(975,416)
Vehicles
(1,366,677)
(242,537)
130,829
(1,478,385)
Machinery and Shop Equipment
(530,970)
(52,380)
3,000
(580,350)
Other Equipment
(747,408)
(22,339)
-
(769,747)
Infrastructure
(47,038,870)
(2,294,211)
7,349
(49,325,732)
Total Accumulated Depreciation
(53,811,564)
(2,909,547)
167,280
(56,553,831)
Total Capital Assets, Being Depreciated, Net
36,358,704
(1,603,213)
(176,377)
34,579,114
Governmental Activities Capital Assets, Net
$ 39,634,563
$ (1,603,213)
$ (176,377)
$ 37,854,973
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 3 CAPITAL ASSETS (CONTINUED)
Business -Type Activities:
Capital Assets, Being Depreciated:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Business -Type Capital Assets, Net
Beginning
General Government
Ending
Balance
Increases
Decreases
Balance
Parks, Recreation and Forestry
142,268
Community Development
500
$ 48,690
$ -
$ -
$ 48,690
503,871
54,354
(12,714)
545,511
41,070,336
425,028
41,495,364
41,622,897
479,382
(12,714)
42,089,565
(48,690)
-
-
(48,690)
(307,968)
(17,330)
12,714
(312,584)
(12,468,144)
(836,863)
-
(13,305,007)
(12,824,802)
(854,193)
12,714
(13,666,281)
28,798,095
(374,811)
-
28,423,284
$ 28,798,095
$ (374,811)
$ -
$ 28,423,284
Depreciation expense charged to functions/programs of the primary government as follows:
Governmental Activities:
General Government
$ 238,194
Public Safety
114,976
Public Services
2,413,609
Parks, Recreation and Forestry
142,268
Community Development
500
Total Depreciation Expense, Governmental Activities
$ 2,909,547
Business -type Activities:
Water $ 416,468
Sewer 437,725
Total Depreciation Expense, Governmental Activities $ 854,193
The City contributed $425,028 of capital assets from the governmental activities to the business -type activities.
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2013 is composed of the following:
Governmental Activities:
General Obligation Bonds:
2011A Equipment Certificates
2012A Equipment Certificates
2013A Equipment Certificates
G.O. Tax Abatement Bonds, Series 2006C
G.O. Utility Revenue Bonds, Series 2006D
G.O. CIP Refunding Bonds, Series 2006E
G.O. Tax Increment Financing Bonds, Series 2007A
G.O. Refunding Bonds, Series 2012A
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2003B
G.O. Improvement Bonds, Series 2005A
G.O. Improvement Refunding Bonds, Series 2005B
G.O. Improvement & Utility Revenue Refunding Bonds,
Series 2010A
G.O. Improvement Bonds, Series 2013A
Total Special Assessment Bonds
Total Bonds
Note Payable - Anoka County - 2009A
Unamortized Bond Discounts
Unamortized Bond Premiums
Compensated Absences Payable
Other Post Employment Benefit Plan
Total Governmental Activities
Business -Type Activities:
Revenue Bonds:
Compensated Absences Payable
48
Final
Issue
Maturity
Interest
Original
Payable
Date
Date
Rate
Issue
12/31/2013
2/14/2011
12/31/2014
1.00%
$ 120,000
$ 41,000
2/1/2012
12/31/2014
1.00%
150,000
101,000
2/1/2013
12/31/2015
1.00%
193,000
193,000
8/15/2006
2/l/2023
4.00%-4.30%
2,460,000
2,220,000
8/15/2006
2/1/2017
4.00%-4.15%
570,000
255,000
11/1/2006
2/1/2018
4.00%
2,990,000
1,930,000
7/15/2007
2/1/2024
4.00%-4.125%
4,215,000
3,110,000
11/15/2012
2/l/2024
1.00%-2.00%
2,015,000
2,015,000
12,713,000
9,865,000
12/1/2003
2/1/2014
3.20%-5.60%
250,000
35,000
11/1/2005
2/1/2021
4.35%-5.15%
5,550,000
3,505,000
11/1/2005
2/1/2015
3.75%-5.00%
3,755,000
845,000
7/9/2010
2/l/2020
2.00%-3.00%
1,000,000
720,000
7/15/2013
2/1/2024
1.25%-4.00%
615,000
615,000
11,170,000
5,720,000
23,883,000
15,585,000
8/1/2009
8/l/2024
4.00%-3.70%
4,260,000
3,695,000
(45,490)
(22,683)
202,370
50,835
N/A
614,536
N/A
83,969
$ 28,299,880
$ 20,006,657
N/A
$ 54,182
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2013:
Governmental activities:
Bonded debt:
General Obligation
Special Assessment
Unamortized Bond Discounts
Unamortized Bond Premiums
Note Payable - Anoka County
Compensated Absences Payable
Other Post Employment Benefit Plan
Total Governmental Activities
Business -Type Activities:
Compensated Absences Payable
Total
Payable
Bonded Debt
Notes Payable
Payable
Due Within
12/31/2012
Issues
Payments
12/31/2013
One Year
Principal
Interest
Years Ending December 31,
$ 10,646,000
$ 193,000
$ 974,000
$ 9,865,000
$ 1,129,000
6,780,000
615,000
1,675,000
5,720,000
920,000
(25,152)
-
(2,469)
(22,683)
-
67,373
6,558
23,096
50,835
-
3,695,000
-
-
3,695,000
995,000
634,572
528,925
548,961
614,536
382,332
77,821
6,148
-
83,969
-
21,875,614
1,349,631
3,218,588
20,006,657
3,426,332
5,410,000
547;878
1,170,000
154,314
6,580,000
43,410
43,197
32,425
54,182
34,824
$ 21,919,024
$ 1,392,828
$ 3,251,013
$ 20,060,839
$ 3,461,156
All long-term bonded indebtedness outstanding at December 31, 2013 is backed by the full faith and credit of the
City, including special assessment bond issues.
Minimum annual principal and interest payments required to retire long-term debt, not including compensated
absences payable are as follows.
Description and Restrictions of Long -Term Debt
General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a
whole and are, therefore, repaid from ad valorem levies.
Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily
from special assessments levied on the properties benefiting from the improvements. However, some issues are
partly financed by ad valorem levies.
49
Bonded Debt
Notes Payable
Total
Principal
Interest
Principal Interest
Principal
Interest
Years Ending December 31,
2014
$ 2,049,000
$ 552,473
$ 995,000 $
114,951
$ 3,044,000 $
667,424
2015
2,231,000
467,294
360,000
100,345
2,591,000
567,639
2016
1,850,000
392,528
375,000
90,945
2,225,000
483,473
2017
1,875,000
324,288
390,000
80,945
2,265,000
405,233
2018
1,660,000
258,245
405,000
70,345
2,065,000
328,590
2019-2023
5,410,000
547;878
1,170,000
154,314
6,580,000
702,192
2024-2026
510,000
8,436
-
-
510,000
8,436
Total
$ 15,585,000
$ 2,551,141
$ 3,695,000 $
611,845
$ 19,280,000 $
3,162,986
Description and Restrictions of Long -Term Debt
General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a
whole and are, therefore, repaid from ad valorem levies.
Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily
from special assessments levied on the properties benefiting from the improvements. However, some issues are
partly financed by ad valorem levies.
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 4 CITY INDEBTEDNESS (CONTINUED)
Description and Restrictions of Long -Term Debt (Continued)
Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be repaid
primarily from pledged revenues derived from the constructed assets.
In July 2013, the City issued General Obligation Improvement Bonds of $615,000 to fund the Otter Lake Extension
project. The $615,000 is being funded by special assessments related to the improvement project that the City has
collected. The bond was issued at a rate of 1.25%. The bonds will be called in 2024.
Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund
employees through the end of the year which will be paid or used in future periods. For the governmental activities,
compensated absences and other postemployment benefit liability are generally liquidated by the general fund. The
liability for Proprietary Fund employees is included in the accrued liabilities of those funds.
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally
from property taxes. The City of Lino Lakes' legal debt margin for 2013 is computed as follows:
c
12/31/2013
Market value
$ 1,519,857,242
Applicable percentage
3.0%
Debt Limit
45,595,717
Amount of debt applicable to debt limit:
Total bonded debt
15,585,000
Less: Special assessment bonds
(5,720,000)
Tax abatement bonds
(2,220,000)
Utility revenue bonds
(255,000)
Tax increment financing bonds
(3,110,000)
Total debt applicable to debt limit
4,280,000
Legal debt margin
$ 41,315,717
c
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE
A. PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire
Fund (PEPFF) which are a cost-sharing, multiple -employer retirement plan. This plan is established and
administered in accordance with Minnesota Statutes, Chapter 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Basic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute
are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowable service, age, and years of credit at termination of service.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring
member receives the higher of step -rate benefit accrual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary
for each of the first 10 years of service and 2.7% for each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2% of average salary for each of the first 10 years and 1.7% for each
remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members for each year of service. For PEPFF members, the
annuity accrual rate is 3.0% for each year of service.
For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a
full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and
Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social
Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced
retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single -life annuity is a
lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, terminated employees, who are entitled to benefits but are not receiving
them yet, are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. That report may be obtained on the internet at
www.nmpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling (651) 296-7460 or 1-800-652-9026.
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED)
B. FUNDING POLICY
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10% and 6.25% respectively, of their annual covered salary. PEPFF members
were required to contribute 9.6% of their annual covered salary in 2012. The City is required to contribute
the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for
Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the General
Employees Retirement Fund for the years ended December 31, 2013, 2012, and 2011 were $160,392,
$164,317, and $187,186, respectively. The City's contributions to the Public Employees Police & Fire
Fund for the years ended December 31, 2013, 2012, and 2011 were $290,737, $315,541, and $285,356,
respectively. The City's contributions were equal to the contractually required contributions for each year
as set by state statute.
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of
the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis
and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective
basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater
Services (MOWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills
the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of
recognizing these charges as an expense of the sewer utility operation in the year for which they are billed.
Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY
A. DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2013 as follows:
Fund Balance
Deficit
Dedicated Parks $ (444,279)
21stAve. Extension 1-13 (29,455)
Tax Increment Financing 1-11 (770,196)
Improvement and Utility Revenue Refunding Bonds 2010 (47,879)
G.O. Improvement Bonds 2005A (2,101,738)
The City intends to fund these deficits through future tax levies, special assessment levies, tax increments,
transfers from other funds, and various other sources.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY (CONTINUED)
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of expenditure categories that exceed budget appropriations for non -major funds:
Budget Actual Excess
Program Recreation Special Revenue Fund:
Supplies $ 51,675 $ 73,185 $ (21,510)
Note 9 CONTINGENCIES
Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office
of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could
have a material effect on the financial statements.
Federal and State Funds — The City receives financial assistance from federal and state governmental agencies in the
form of grants. The disbursement of funds received under these programs generally requires compliance with the
terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any
disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the
opinion of management, any such disallowed claims will not have a material effect on any of the financial
statements of the individual fund types included herein or on the overall financial position of the City at December
31, 2013.
Litigation — The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments,
and litigation. As of December 31, 2013 any potential affect this may have on the City is not estimable, however it
is not expected to have a material effect on the financial statements of the City.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies
is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is
notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to
cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy
any additional taxes found necessary for full payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31,
2013.
Future scheduled tax levies for all bonds outstanding at December 31, 2013 totaled $16,589,767.
53
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 11 FUND BALANCE
At December 31, 2013, the City had various fund balances restricted, committed, or assigned through legal
restriction and City Council authorization. Major fund balance appropriations at December 31, 2013 are shown on
the various balance sheets as segregations of the fund balance. The fund balances are as follows:
General Fund:
Prepaid Items
Total General Fund
G.O. Improvement Bonds 2005A:
Deficit Fund Balance
Improvement Bonds 2009F:
Debt Service
Municipal State Aid:
Construction Projects
Area and Unit Charge:
Advances to Other Funds
Construction Projects
Total Area and Unit Charge
Nonmajor Governmental Funds:
Prepaid Items
Economic Development - Loan Receivable
Corpus of Permanent Fund
Program Recreation
Cable TV Fund
Environmental Improvements
Debt Service
Construction Projects
Deficit Fund Balance
Total Nonmajor Funds
Total Fund Balances
Total Nonspendable Restricted Committed Assigned Unassigned
$ 5,209,286 $ - $ $ $ $ 5,209,286
176,797 176,797 -
5,386,083 176,797 5,209,286
(2,101,738) - (2,101,738)
996,291 996,291
4,595,797 - 4,595,797
460,881
460,881
3,709,170
3,709,170
4,170,051
-
4,170,051
1,710
1,710
-
-
225,000
-
225,000
100,000
100,000
-
-
110,457
-
110,457
10,618
-
10,618
21,475
21,475
-
2,408,784
2,408,784
-
6,944,854
-
6,944,854
(1,291,809)
-
-
- (1,291,809)
8,531,089
101,710
2,655,259
121,075
6,944,854 (1,291,809)
$ 21,577,573
$ 278,507
$ 3,651,550
$ 121,075
$ 15,710,702 $ 1,815,739
Note 12 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service
within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2013 was
$61,280.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds
and at December 31, 2013 are as follows:
Receivable
Governmental Activity:
G.O. Improvement Bonds 2005A $ -
Other Nonmajor Governmental Funds 2,534,940
Business -Type Activity:
Sewer Fund 559,110
$ 3,094,050
54
Payable
$ 2,259,643
834,407
$ 3,094,050
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 13 INTERFUND RECEIVABLE AND PAYABLES (CONTINUED)
Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and
from other fund and at December 31, 2013 are as follows:
Governmental Activity:
Area and Unit Charge
Other Nonmajor Governmental Funds
Receivable
$ 460,881
$ 460,881
Payable
460,881
$ 460,881
The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated
Parks Fund.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2013 are as follows:
Governmental Activity:
General Fund
G.O. Improvement Note 2009A
Improvement Bonds of 2009F
Area and Unit Charge
Municipal State Aid
Other Nonmajor Governmental Funds
Total Governmental Activity
Business -Type Activity:
Water Fund
Sewer Fund
Total Business -Type Activity
Total
Transfer In
10,000
142,736
90,228
1,479,577
1,722,541
$ 1,722,541
Transfer Out
(565,789)
(426,038)
(421,254)
(237,736)
(1,650,817)
(35,862)
(35,862)
(71,724)
$ (1,722,541)
Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the
transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open
and close funds.
Note 15 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and
omissions; injuries to employees; and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to
supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
55
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 15 RISK MANAGEMENT (CONTINUED)
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City
pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the
LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City
retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies.
These amounts are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and employee
health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 16 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial
assistance to private -sector entities for the acquisition and construction of industrial and commercial facilities which
are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities
transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the
repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements. As of December 31, 2013, one series of Industrial Revenue Bonds was outstanding with an aggregate
remaining principal balance of $540,000, and one series of Commercial Revenue Notes was outstanding with an
aggregate remaining principal balance of $2,152,037.
Note 17 JOINT VENTURES
Fire
The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino
Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but
not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two
commissioners to the District's Board.
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 17 JOINT VENTURES (CONTINUED)
Fire (Continued)
Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in
accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula
takes into account each city's average number of calls, population, and total market value.
During 2013, the City of Lino Lakes' contributions to the District were as follows:
Operating
$ 511,770
Capital
85,250
Total
$ 597,020
The audited financial statements of the District as of December 31, 2012 can be reviewed upon request of the
Centennial Fire District.
In January 2014 the City Council voted to start the process to withdraw from the District which will be effective
January 27, 2016. The City is currently exploring options for fire protection starting in January 2016.
Anoka County
The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid
Highway 14 (Main Street) and I -35E Interchange County Project.
Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City
engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as
of January 1, 2011.
A. PLAN DESCRIPTION
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active
employees, who retire from the City when over age 50 and with 20 years of service, may continue
coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits
program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium
cost. As of December 31, 2013 there were approximately 49 active participants and 7 retired participants
receiving benefits from the City's health plans.
B. FUNDING POLICY
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2013, the City contributed
$21,289 to the plan.
57
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
C. ANNUAL OPEB COST AND NET OPEB OBLIGATION
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize any un -funded actuarial liabilities over a period not to exceed
thirty years. The following table shows the components of the City's annual OPEB cost for the year, the
amount actually paid from the plan, and changes in the City's net OPEB obligation.
Annual Required Contribution
$ 29,449
Interest on Net OPEB Obligation
1,663
Adjustment to Annual Required Contribution
(3,675)
Annual OPEB Cost (Expense)
27,437
Contributions Made
(21,289)
Increase in Net OPEB Obligation
6,148
Net OPEB Obligation- Beginning of Year
77,821
Net OPEB Obligation- End of Year
$ 83,969
The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2013 and the two preceding years:
D. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2011, the most recent actuarial valuation date, the City's unfunded actuarial accrued
liability (UAAL) was $474,770. The annual payroll for active employees covered by the plan in the
actuarial valuation was $4,953,560 for a ratio of UAAL to covered payroll of 9.6%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information about whether the actuarial value
of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
58
Percentage
Fiscal
Annual
of Annual
Net
Year
OPEB
OPEB Cost
OPEB
Ended
Cost
Contributed
Obligation
12/31/2011
$ 27,917
65.9%
$ 72,808
12/31/2012
29,610
65.2%
77,821
12/31/2013
27,437
77.6%
83,969
D. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2011, the most recent actuarial valuation date, the City's unfunded actuarial accrued
liability (UAAL) was $474,770. The annual payroll for active employees covered by the plan in the
actuarial valuation was $4,953,560 for a ratio of UAAL to covered payroll of 9.6%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to the financial statements, presents multiyear trend information about whether the actuarial value
of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2013
Note 18 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED)
E. ACTUARIAL METHODS AND ASSUMPTIONS
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 2% inflation rate, a 2% investment rate of return (net of administrative
expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the
employer's own investments calculated based on the funded level of the plan at the valuation date. The
initial healthcare trend rate was 0%, increasing to an ultimate rate of 4% after three years. The UAAL is
being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization
period at December 31, 2013 was not to exceed 30 years.
59
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
Statement 11
Page 1 of 6
2013
Variance with
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Revenue:
General property taxes:
Current and delinquent $
7,330,538
$ 6,306,938 $
6,218,617
$ (88,321)
Fiscal disparities
-
983,600
958,004
(25,596)
Excess tax increments
-
-
11,180
11,180
Total general property taxes
7,330,538
7,290,538
7,187,801
(102,737)
Licenses and permits:
Business
80,300
97,800
100,685
2,885
Non -business
269,000
304,000
330,969
26,969
Total licenses and permits
349,300
401,800
431,654
29,854
Intergovernmental:
State:
Market value credit
-
-
3,988
3,988
Police state aid
165,000
199,000
199,076
76
MSA maintenance
200,000
231,000
231,753
753
Other
35,000
35,000
18,968
(16,032)
County/Regional:
Solid waste
35,000
35,000
45,831
10,831
Other
4,000
4,000
1,347
(2,653)
Total intergovernmental
439,000
504,000
500,963
(3,037)
Special assessments:
Penalties and Interest
15,000
15,000
20,616
5,616
Charges for services:
General government
17,600
3,600
5,446
1,846
Planning/engineering
8,000
8,000
24,968
16,968
Fees retained from collection for
other governments - SAC/surcharge
1,000
1,000
1,822
822
Administrative charge - other funds
50,000
50,000
50,100
100
Aerial map charge - other funds
5,000
5,000
3,150
(1,850)
Public safety
151,500
186,500
210,699
24,199
Total charges for services
233,100
254,100
296,185
42,085
Fines and forfeits
140,000
118,000
119,079
1,079
Investment earnings
40,000
28,000
38,093
10,093
Change in market value
-
-
(50,343)
(50,343)
Refunds
25,000
37,000
38,092
1,092
Miscellaneous:
Gas franchise fees
50,000
50,000
61,280
11,280
Cable TV
37,500
37,500
37,500
-
Donations
5,000
5,000
-
(5,000)
Other
11,000
20,500
15,610
(4,890)
Total miscellaneous
103,500
113,000
114,390
1,390
Total revenue
8,675,438
8,761,438
8,696,530
(64,908)
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
Expenditures:
General government:
Mayor and council:
Current:
Personal services
Other services and charges
Contractual services
Total mayor and council
Elections:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total elections
Administration:
Current:
Personal services
Other services and charges
Contractual services
Total administration
Finance:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total finance
Cable TV:
Current:
Personal services
Supplies
Capital outlay
Total cable TV
Consultants:
Current:
Legal
Statement II
Page 2 of 6
2013
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 40,581
$ 32,481
$ 31,511 $
970
25,000
20,800
14,997
5,803
15,270
15,270
15,429
(159)
80,851
68,551
61,937
6,614
7,025
7,025
7,610
(585)
100
100
98
2
2,500
2,500
2,147
353
500
500
-
500
3,000
3,000
2,940
60
13,125
13,125
12,795
330
350,592
350,592
315,260
35,332
20,360
16,360
14,817
1,543
6,100
6,100
4,116
1,984
377,052
373,052
334,193
38,859
293,053
288,053
289,397
(1,344)
1,200
1,200
1,117
83
114,600
114,600
104,677
9,923
100,900
100,900
99,005
1,895
509,753
504,753
494,196
10,557
2,167
2,167
1,556
611
50
50
-
50
500
500
266
234
2,717
2,717
1,822
895
140,000
140,000
123,111
16,889
M.
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
General government (continued):
Engineering/planning:
Current:
Contractual services
Charter commission:
Current:
Other services and charges
General government buildings:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total general government buildings
Total general government
Public safety:
Police:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total police
Fire protection:
Current:
Contractual services
Building inspection:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total building inspection
Total public safety
Statement 11
Page 3 of 6
2013
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 106,400
$ 106,400
$ 108,700 $
(2,300)
1,500
1,500
818
682
88,760
78,760
71,176
7,584
2,174
2,174
2,128
46
27,000
35,000
34,024
976
292,380
322,880
300,651
22,229
68,000
68,000
64,247
3,753
389,554
428,054
401,050
27,004
1,620,952
1,638,152
1,538,622
99,530
2,867,445
2,875,445
2,887,198
(11,753)
35,000
35,000
30,299
4,701
88,760
78,760
71,176
7,584
41,220
41,220
35,210
6,010
30,000
30,000
32,008
(2,008)
3,062,425
3,060,425
3,055,891
4,534
533,673
533,673
511,770
21,903
199,866
201,366
201,560
(194)
1,050
1,050
417
633
7,320
7,320
6,240
1,080
500
1,500
1,087
413
208,736
211,236
209,304
1,932
3,804,834
3,805,334
3,776,965
28,369
62
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
Statement 11
Page 4 of 6
63
2013
Variance with
Final Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
Public works:
Streets:
Current:
Personal services
$ 544,399
$ 551,399 $
522,512
$ 28,887
Supplies
115,000
107,500
114,084
(6,584)
Other services and charges
109,060
109,060
105,289
3,771
Contractual services
172,275
172,275
152,909
19,366
Total streets
940,734
940,234
894,794
45,440
Fleet:
Current:
Personal services
101,689
100,689
101,548
(859)
Supplies
201,000
201,000
229,661
(28,661)
Other services and charges
52,880
48,880
53,034
(4,154)
Contractual services
2,700
2,700
2,098
602
Total fleet
358,269
353,269
386,341
(33,072)
Total public works
1,299,003
1,293,503
1,281,135
12,368
Parks and recreation:
Parks:
Current:
Personal services
442,618
448,718
450,592
(1,874)
Supplies
26,500
26,500
24,964
1,536
Other services and charges
48,400
55,400
54,840
560
Contractual services
35,800
35,800
15,737
20,063
Total parks
553,318
566,418
546,133
20,285
Recreation:
Current:
Personal services
272,714
277,014
277,151
(137)
Supplies
2,500
2,500
2,685
(185)
Other services and charges
14,750
14,750
15,047
(297)
Contractual services
400
400
1,237
(837)
Total recreation
290,364
294,664
296,120
(1,456)
Total parks and recreation
843,682
861,082
842,253
18,829
63
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
Conservation of natural resources:
Forestry:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total forestry
Environmental:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total environmental
Solid waste abatement:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total solid waste abatement
Statement I I
Page 5 of 6
2013
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 33,753 $
33,753 $
33,775
$ (22)
1,250
1,250
897
353
400
400
355
45
5,500
5,500
305
5,195
5,000
5,000
5,886
(886)
45,903
45,903
41,218
4,685
50,322
50,322
50,906
(584)
1,400
1,400
333
1,067
8,550
8,550
4,322
4,228
1,300
1,300
130
1,170
61,572
61,572
55,691
5,881
29,399
29,399
29,889
(490)
-
-
396
(396)
550
550
350
200
6,000
12,000
12,469
(469)
35,949
41,949
43,104
(1,155)
Total conservation of natural resources 143,424 149,424 140,013 9,411
64
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
Community development:
Community development:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total community development
Economic development:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total economic development
Planning and zoning commission:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total planning and zoning commission
Total community development
Other :
Contingency
Total expenditures
Revenue over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Net increase (decrease) in fund balance
Fund Balance - January 1
Fund balance - December 31
Statement 11
Page 6 of 6
2013
Variance with
Final Budget
Original Final Positive
Budget Budget Actual (Negative)
$ 191,352
$ 192,852
$ 194,283 $
(1,431)
100
100
54
46
8,500
8,500
1,803
6,697
1,400
1,400
267
1,133
201,352
202,852
196,407
6,445
91,388
49,388
49,313
75
150
150
-
150
53,750
68,750
64,666
4,084
400
400
250
150
145,688
118,688
114,229
4,459
81,275
78,275
70,713
7,562
200
200
-
200
16,900
11,900
7,343
4,557
24,000
19,000
20,795
(1,795)
122,375
109,375
98,851
10,524
469,415
430,915
409,487
21,428
145,075
147,975
-
147,975
8,326,385
8,326,385
7,988,475
337,910
349,053
435,053
708,055
273,002
-
-
10,000
10,000
(515,000)
(565,000)
(565,789)
(789)
$ (165,947) $ (129,947)
65
152,266 $ 282,213
5,233,817
$ 5,386,083
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2012
Note 1 BUDGETS
The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles.
The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded
budget appropriations.
General Fund:
General government:
Engineering/planning
Public works:
Fleet
Parks and recreation:
Recreation:
Conservation of natural resources:
Solid waste abatement
Final
Budget Actual
$ 106,400 $ 108,700
353,269 386,341
294,664 296,120
41,949 43,104
The excess expenditures were covered by more than anticipated revenues during 2013.
Actual in
Excess of
Budget
$ (2,300)
(33,072)
(1,456)
(1,155)
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN
December 31, 2013
Unfunded
AAL
(b -a)
$ 329,191
474,770
67
Funded
Ratio
(a/b)
Covered
Payroll
(c)
$ 4,859,980
4,888,702
Statement 12
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
6.8%
9.7%
Actuarial
Actuarial
Accrued
Actuarial
Value of
Liability
Valuation
Assets
(AAL)
Date
(a)
(b)
1/1/2008
$ -
$ 329,191
1/1/2011
-
474,770
Unfunded
AAL
(b -a)
$ 329,191
474,770
67
Funded
Ratio
(a/b)
Covered
Payroll
(c)
$ 4,859,980
4,888,702
Statement 12
UAAL as a
Percentage
of Covered
Payroll
((b-a)/c)
6.8%
9.7%
Nonmaior Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted
to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds
during the year.
Economic Development Authority - established to account for the receipt and uses of funds for
economic purposes.
Cable TV Fund - established to account for activities relating to their Cable TV.
Program Recreation - established to account for various self-supporting recreational programs.
Debt Service Funds
The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and
related costs on general long-term debt.
The City's Debt Service Funds account for four types of bonded indebtedness:
General Debt Bonds - are repaid primarily from property taxes.
Improvement Bonds - are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA
leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds - These bonds were issued to finance various improvements and will be repaid
primarily from pledged revenues derived from the constructed assets.
Capital Project Funds
Capital Project Funds account for the acquisition or construction of major capital facilities other than those
financed by Proprietary Funds and Trust Funds. The City maintained the following nonmajor Capital Project
Funds during the year:
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Capital Equipment RevolvingFund - to account for funds held to purchase capital equipment.
Closed Bond Fund - to account for excess funds from matured bond issues.
Street Reconstruction - to account for the financing of future reconstruction of City streets.
Sealcoating - to account for money received from assessments and developer deposits for future street
sealcoating projects.
Surface Water Management - to account for the financing of surface water management and storm water
improvements.
Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch
Street and Hodgson Road.
Tax Increment Funds - to account for development projects financed with tax increments.
Nonmaior Governmental Funds (Continued)
Capital Proiect Funds (Continued)
Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees.
I35E Interschan e Fund - to account for activity related to the I35E/CSAH 14 Interchange Reconstruction
Project.
Office Equipment Revolving Fund - to account for the receipt and use of funds for office equipment
purchases.
Legacy Woods Edge Improvement Fund - the Legacy Woods Edge Improvement fund accounts for
construction costs related to infrastructure improvements in the Legacy Woods Edge development.
Traffic Signal Fund - the Legacy traffic signal charge fund accounts for costs associated with construction
of traffic signals in the City.
Otter Lake Road Exension Fund - this fund accounts for activities relating to the construction performed
in the extension of the Otter Lake Road.
21St Ave Extension Fund - this fund accounts for activities relating to the construction performed in the
extension of 21St Avenue within the City.
Permanent Funds
Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not
principal, may be used for purposes that support the City's programs. The City maintained the following
nonmajor Permanent Fund during the year.
Foxborough Environment Fund - established to account for the use of funds received for environmental
maintenance and improvements in the Foxborough area.
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
T
Special Revenue
Debt Service
Economic
Special
Certificates
Improvement
Improvement
Development
Cable TV
Program
Revenue
of
Bonds of
Bonds of
Authority
Fund
Recreation
Subtotal
Indebtedness
2002A
2002B
Assets
Cash and investments
$
$
10,618
$
119,605 $
130,223
$ 151,341
$ 187,564
$ 69,932
Taxes receivable:
Delinquent
-
-
-
5,001
-
-
Due from county
1,923
Special assessments receivable:
Delinquent
-
-
Noncurrent
39,136
Due from county
-
-
Long-term notes receivable
225,000
-
225,000
Prepaid items
-
-
1,710
1,710
-
-
-
Total assets
$ 225,000
$
10,618
$
121,315 $
356,933
$ 158,265
$ 226,700
$ 69,932
Liabilities, Deferred Inflows of Resources
and Fund Balance (Deficit)
Liabilities:
Accounts payable
$
$
$
7,143 $
7,143
$
$
$
Salaries payable
240
240
Unearned revenue
1,765
1,765
Total liabilities
9,148
9,148
Deferred inflows of resources:
Unavailable resources
-
-
5,001
39,136
Fund balance (deficit):
Nonspendable
1,710
1,710
-
-
-
Restricted
225,000
-
225,000
153,264
187,564
69,932
Committed
-
10,618
110,457
121,075
-
-
-
Assigned
-
-
-
Unassigned
-
-
-
-
-
-
-
Total fund balance (deficit)
225,000
10,618
112,167
347,785
153,264
187,564
69,932
Total liabilities, deferred inflows of
resources and fund balance (deficit)
$ 225,000
$
10,618
$
121,315 $
356,933
$ 158,265
$ 226,700
$ 69.932
T
Statement 13
Page 1 of 3
$ 129,030 $ 53,358 $
Debt Service (Continued)
206,347 $
95,579 $
Improvement
Tax
Utility
CIP
Refunding
Improvement Improvement Abatement
Revenue
Refunding
Bonds of
Bonds of Bondsof Bonds
Bonds
Bonds
2003A
2003B 2005B 2006C
2006D
2006E
$ 129,030 $ 53,358 $
462,017 $
206,347 $
95,579 $
828,858
- 579
3,368
5,399
-
10,301
258
1,476
2,575
-
4,847
- 6,183
-
-
8,287
-
87,022 24,061
81,067
84,439 $
110,495
214,321 $
- -
354
-
214,361 $
$ 216,052 $ 84,439 $
548,282 $
214,321 $
844,006
$ 2,750 $ $ $ $ $
2,750 -
87,021 30,825 84,435 5,399 118,782 10,301
126,281
53,614
463,847
208,922
95,579
833,705
833,705
126,281
53,614
463,847
208,922
95,579
$ 216,052 $
84,439 $
548,282 $
214,321 $
214,361 $
844,006
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
70
Debt Service (Continued)
Capital Projects
Improvement and
TIF
Utility Revenue
Improvement
Improvement
Debt
Capital
Capital
Bonds
Refunding Bonds
Bonds of
Bonds of
Service
Improvement
Equipment
2007A
2010
2012A
2013A
Subtotal
Projects
Revolving Fund
Assets
Cash and investments
$
149,897
$ 8,249
$ 63,763
$ 2,416
$
2,408,351
$ 601,128
$ 105,370
Due from other governmental units
-
-
-
-
-
-
-
Interfund receivable
-
1,700,533
Taxes receivable:
Delinquent
24,648
-
Due from county
11,079
Delinquent tax increment
-
Special assessments receivable:
Delinquent
-
14,470
Noncurrent
81,513
423,294
Due from county
-
-
-
-
354
-
-
Total assets
$
149,897
$ 89,762
$ 63,763
$ 2,416
$
2,882,196
$ 2,301,661
$ 105,370
Liabilities, Deferred Inflows of Resources
and Fund Balance (Deficit)
Liabilities:
Interfundpayable
$
$ 56,128
$
$
$
56,128
$ -
$
Accounts payable
2,750
143,429
Total liabilities
56,128
58,878
143,429
Deferred inflows of resources:
Unavailable Resources
81,513
462,413
Fund balance (deficit):
Restricted
149,897
-
63,763
2,416
2,408,784
-
-
Assigned
2,158,232
105,370
Unassigned
-
(47,879)
-
-
(47,879)
Total fund balance (deficit)
149,897
(47,879)
63,763
2,416
2,360,905
2,158,232
105,370
Total liabilities, deferred inflows of
resources and fund balance (deficit)
$
149,897
$ 89,762
$ 63,763
$ 2,416
$
2,882,196
$ 2,301,661
$ 105,370
70
Statement 13
Page 2 of 3
Capital Projects (Continued)
Tax
Closed Surface
Birch Street
Increment
Bond Street Water
Hodgson Road
Financing
Fund Reconstruction Scalcoating Management
Improvement
1-5
$ 564,295 $ 620,865 $ 529,065 $ 518,189 $ 15,677 $ 135,688
- - - 1,500 - -
834,407 -
48
298 -
492 - 7,618
818 119,764 128,214
- - - 4,477 - -
$ 1,400,358 $ 740,629 $ 529,065 $ 659,998 $ 15,677 $ 135,688
8,379 34,384
8,379 34,384
1,607 119,764 135,832
1,398,751 620,865 520,686 489,782 15,677 135,688
1,398,751 620,865 520,686 489,782 15,677 135,688
$ 1,400,358 $ 740,629 $ 529,065 $ 659,998 $ 15,677 $ 135,688
71
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2013
Assets
Cash and investments
Due from other governmental units
Interfund receivable
Taxes receivable:
Delinquent
Due from county
Delinquent tax increment
Special assessments receivable:
Delinquent
Noncurrent
Due from county
Long-term notes receivable
Prepaid items
Total assets
Liabilities, Deferred Inflows of Resources
and Fund Balance (Deficit)
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Advances from other funds
Unearned Revenue
Total liabilities
Deferred inflows of resources:
Unavailable Resources
Fund balance (deficit):
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balance (deficit)
Total liabilities, deferred inflows of
resources and fund balance (deficit)
Capital Projects (Continued)
Tax Tax Office
Increment Increment Equipment Legacy Woods
Financing Financing Dedicated 135E Revolving Edge Traffic
1-10 1-11 Parks Interchange Fund Improvement Signal
$ 187,194 $
$ 16,602 $ 226,347 $ 269,578 $ 527,265 $ 166,105
$ 187,194 $ $ 16,602 $ 226,347 $ 269,578 $ 527,265 $ 166,105
$ $ 770,196 $ $ - $ $ $
- 24,243 633
79,638
460,881 -
770,196 460,881 24,243 80,271
187,194 202,104 269,578 527,265 85,834
- (770,196) (444,279) - - - -
187,194 (770,196) (444,279) 202,104 269,578 527,265 85,834
$ 187,194 $ - $ 16,602 $ 226,347 $ 269,578 $ 527,265 $ 166,105
72
Statement 13
Page 3 of 3
$ 293,961 $ $ 4,777,329 $ 121,475 $ 7,437,378
- 1,500 - 1,500
2,534,940 2,534,940
- 24,648
48 11,127
298 298
8,110 22,580
248,796 672,090
4,477 4,831
- 225,000
- 1,710
$ 293,961 $ $ 7,575,498 $ 121,475 $ 10,936,102
$ - $ 8,083 $ 778,279 $ $ 834,407
2,630 21,372 235,070 244,963
- - - 240
63,503 143,141 143,141
- 460,881 460,881
- 1,765
66,133 29,455 1,617,371 1,685,397
257,203 719,616
100,000 101,710
21,475 2,655,259
- - - 121,075
227,828 6,944,854 6,944,854
- (29,455) (1,243,930) (1,291,809)
227,828 (29,455) 5,700,924 121,475 8,531,089
$ 293,961 $ - $ 7,575,498 $ 121,475 $ 10,936,102
73
Permanent
Capital Projects (Continued)
Fund
Otter Lake 21 st Ave
Capital
Foxborough
Road Ext Ext
Projects
Environment Total
1-13 1-13
Subtotal
Fund 2013
$ 293,961 $ $ 4,777,329 $ 121,475 $ 7,437,378
- 1,500 - 1,500
2,534,940 2,534,940
- 24,648
48 11,127
298 298
8,110 22,580
248,796 672,090
4,477 4,831
- 225,000
- 1,710
$ 293,961 $ $ 7,575,498 $ 121,475 $ 10,936,102
$ - $ 8,083 $ 778,279 $ $ 834,407
2,630 21,372 235,070 244,963
- - - 240
63,503 143,141 143,141
- 460,881 460,881
- 1,765
66,133 29,455 1,617,371 1,685,397
257,203 719,616
100,000 101,710
21,475 2,655,259
- - - 121,075
227,828 6,944,854 6,944,854
- (29,455) (1,243,930) (1,291,809)
227,828 (29,455) 5,700,924 121,475 8,531,089
$ 293,961 $ - $ 7,575,498 $ 121,475 $ 10,936,102
73
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2013
74
Special Revenue
Debt Service
Economic
Special
Certificates
Improvement
Improvement
Development
Cable TV
Program
Revenue
of
Bonds of
Bonds of
Authority
Fund
Recreation
Subtotal
Indebtedness
2002A
2002B
Revenue:
General property taxes
$
$
$
$
$ 162,540
$ -
$
Special assessments
454
9,559
Charges for services
10,659
165,975
176,634
-
-
Investment earnings
93
1,480
1,573
1,933
1,825
983
Net increase (decrease) in fair value of investments
(134)
(2,053)
(2,187)
(2,659)
(2,535)
(1,278)
Total revenue
-
10,618
165,402
176,020
162,268
8,849
(295)
Expenditures:
Current:
General government
789
-
-
789
-
-
-
Parks, recreation and forestry
-
160,544
160,544
-
-
-
Debt service:
Principal
-
-
149,000
30,000
265,000
Interest and fiscal charges
5,485
4,465
7,354
Bond issuance costs
-
-
-
-
-
-
Total expenditures
789
-
160,544
161,333
154,485
34,465
272,354
Revenue over(under)expenditures
(789)
10,618
4,858
14,687
7,783
(25,616)
(272,649)
Other financing sources (uses):
Transfer in
789
-
-
789
-
Transfer out
-
(10,000)
(10,000)
Payment on refunding bond
-
Total other financing
sources (uses)
789
(10,000)
(9,211)
Net increase (decrease) in fund balance
-
10,618
(5,142)
5,476
7,783
(25,616)
(272,649)
Fund balance (deficit) -
Beginning ofyear
225,000
-
117,309
342,309
145,481
213,180
342,581
Fund balance (deficit) - December 31
$ 225,000
$ 10,618
$ 112,167
$ 347,785
$ 153,264
$ 187,564
$ 69,932
74
Statement 14
Page 1 of 3
50,000
30,000
Debt Service (Continued)
125,000
60,000
Improvement
9,744
2,778
Tax
Utility
OF
Refunding
Improvement
Improvement
Abatement
Revenue
Refunding
Bonds of
Bonds of
Bonds of
Bonds
Bonds
Bonds
2003A
2003B
2005B
2006C
2006D
2006E
$ -
$ 23,705
$ 134,176
$ 244,269
$
$ 456,904
28,356
5,918
52,126
429
15,648
832
1,614
367
786
867
314
5,775
(2,075)
(496)
(874)
(1,108)
(409)
(7,825)
27,895
29,494
186,214
244,457
15,553
455,686
50,000
30,000
425,000
125,000
60,000
355,000
9,744
2,778
53,478
99,701
15,103
84,931
2,750
-
-
-
-
-
62,494
32,778
478,478
224,701
75,103
439,931
(34,599)
(3,284)
(292,264)
19,756
(59,550)
15,755
347,600
-
71,724
-
(435,000)
-
-
(435,000)
347,600
-
71,724
-
(469,599)
(3,284)
55,336
19,756
12,174
15,755
595,880
56,898
408,511
189,166
83,405
817,950
$ 126,281 $
53,614 $
463,847 $
208,922 $
95,579 $
833,705
75
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2013
Revenue:
General property taxes
Tax increments
Special assessments
Charges for services
Investment earnings
Net increase (decrease) in fair value of investments
Refunds
Miscellaneous
Total revenue
Expenditures:
Current:
General government
Public works
Community development
Capital outlay:
Public safety
Debt service:
Principal
Interest and fiscal charges
Bond issuance costs
Total expenditures
Revenue over(under)expenditures
Other financing sources (uses):
Transfer in
Transfer out
Sale of property
Issuance of debt
Payment on refunding bond
Total other financing
sources (uses)
Net increase (decrease) in fund balance
Fund balance (deficit) -
Beginning of year
Fund balance (deficit) - December 31
76
Debt Service (Continued)
Capital Projects
Improvement and
TIF
Utility Revenue
Improvement
Improvement
Debt
Capital
Capital
Bonds
Refunding Bonds
Bonds of
Bonds of
Service
Improvement
Equipment
2007A
2010
2012A
2013A
Subtotal
Projects
Revolving Fund
$
$
$
$
$ 1,021,594
$
$
45,529
158,851
760
15,224
6,642
1,325
(6)
(17)
(19,282)
(9,283)
(1,940)
-
-
-
-
186,751
674
45,529
(6)
743
1,176,387
184,110
59
-
-
-
-
7,044
-
216,146
-
-
72
192,710
285,000
95,000
1,869,000
-
-
134,757
22,225
440,021
-
-
14,387
17,137
-
-
419,757
117,225
14,387
-
2,326,158
223,262
192,710
(419,757)
(71,696)
(14,393)
743
(1,149,771)
(39,152)
(192,651)
416,026
78,438
-
913,788
-
-
16,727
1,673
1,673
193,000
-
-
-
(435,000)
-
416,026
78,438
1,673
480,461
209,727
(3,731)
(71,696)
64,045
2,416
(669,310)
(39,152)
17,076
153,628
23,817
(282)
-
3,030,215
2,197,384
88,294
$ 149,897
$ (47,879)
$ 63,763
$ 2,416
$ 2,360,905
$ 2,158,232
$ 105,370
76
Statement 14
Page 2 of 3
Capital Projects (Continued)
Closed
Surface
Birch Street
Tax Increment
Bond
Street
Water
Hodgson Road
Financing
Fund
Reconstruction
Sealcoating
Management
Improvement
1-5
-
-
-
37,254
1,172
15,116
120,010
-
13,588
6,031
8,205
9,969
155
1,087
(19,541)
(8,417)
(11,689)
(11,689)
(216)
(1,509)
17,238
-
(4,781)
12,730
13,754
118,290
(61)
36,832
26,473 - - -
- 38 457,715 40,987 -
- - - 600
26,473 38 457,715 40,987 - 600
(31,254) 12,692 (443,961) 77,303 (61) 36,232
- 490,000 - - -
- 490,000 - - -
(31,254) 12,692 46,039 77,303 (61) 36,232
1,430,005 608,173 474,647 412,479 15,738 99,456
$ 1,398,751 $ 620,865 $ 520,686 $ 489,782 $ 15,677 $ 135,688
77
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2013
78
Capital Projects (Continued)
Office
Tax Increment
Tax Increment
Equipment
Legacy Woods
Financing
Financing
Dedicated
I35E
Revolving
Edge
1-10
1-11
Parks
Interchange
Fund
Improvement
Revenue:
General property taxes
$ -
$ -
$
$
$
$
Tax increments
142,736
85,829
Special assessments
-
-
-
Charges for services
-
-
Investment earnings
2,461
32
2,437
2,658
5,302
Net increase (decrease) in fair value of investments
(3,527)
(43)
(3,430)
(3,716)
(7,409)
Refunds
-
-
-
Miscellaneous
-
-
16,204
-
Total revenue
141,670
85,829
16,193
(993)
(1,058)
(2,107)
Expenditures:
Current:
General government:
-
-
-
-
-
Public works
71,428
25,044
Parks, recreation and forestry
-
-
-
-
Community development
1,014
7,432
-
Capital outlay:
General government
-
-
6,053
Public safety
-
Debt service:
Principal
-
Interest and fiscal charges
14,880
Bond issuance costs
-
-
-
-
-
-
Total expenditures
1,014
7,432
14,880
71,428
6,053
25,044
Revenue over (under) expenditures
140,656
78,397
1,313
(72,421)
(7,111)
(27,151)
Other financing sources (uses):
Transfer in
-
-
50,000
25,000
Transfer out
(142,736)
(85,000)
-
-
Sale of property
-
Issuance of debt
-
Premium on bonds issued
-
Payment on refunding bond
-
-
Total other financing
sources (uses)
(142,736)
(85,000)
50,000
25,000
Net increase (decrease) in fund balance
(2,080)
(6,603)
51,313
(72,421)
17,889
(27,151)
Fund balance (deficit) -
Beginning ofyear
189,274
(763,593)
(495,592)
274,525
251,689
554,416
Fund balance (deficit) - December 31
$ 187,194
$ (770,196)
$ (444,279)
$ 202,104
$ 269,578
$ 527,265
78
Statement 14
Page 3 of 3
- - - 33,517
34,306
375,975 391,501 29,455 1,608,289
Permanent
- - - -
160,544
Capital Projects (Continued)
9,046
Fund
6,053
- 192,782
Otter Lake 21 st Ave
Capital
Foxborough
14,880
Traffic
Road Ext Extension
Projects
Environment
Total
Signal
1-13 1-13
Subtotal
Fund
2013
$ -
$ - $ -
$ -
$ $
1,021,594
-
265,819
265,819
136,298
295,149
-
-
176,634
3,360
1,784
65,036
1,175
83,008
(4,798)
(2,340)
(89,547)
(1,636)
(112,652)
-
-
17,238
-
17,238
-
203,629
11,400
215,029
(1,438)
(556)
598,473
10,939
1,961,819
- - - 33,517
34,306
375,975 391,501 29,455 1,608,289
1,608,289
- - - -
160,544
- 9,046
9,046
- 6,053
6,053
- 192,782
192,782
-
1,869,000
14,880
454,901
- - - -
17,137
375,975 391,501 29,455 1,864,567
4,352,058
(377,413) (392,057) (29,455) (1,266,094)
10,939 (2,390,239)
565,000
(227,736)
- 16,727
- 613,327 806,327
6,558 6,558
619,885 1,166,876
(377,413) 227,828 (29,455) (99,218)
1,479,577
(237,736)
16,727
808,000
6,558
(435,000)
- 1,638,126
10,939 (752,113)
463,247 - 5,800,142 110,536 9,283,202
$ 85,834 $ 227,828 $ (29,455) $ 5,700,924 $ 121,475 $ 8,531,089
79
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2013
Revenue:
Charges for services:
Recreation fees
Investment earnings
Change in market value
Total revenue
Expenditures:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total expenditures
Other financing sources (uses):
Transers out
Net increase (decrease) in fund balance
Fund balance - January 1
Fund balance - December 31
Statement 15
2013
71,180
71,180
52,218
Variance with
51,675
51,675
73,185
Final Budget
Original
Final
348
Positive
Budget
Budget
Actual
(Negative)
$ 198,125
$ 198,125
$ 165,975
$ (32,150)
-
-
1,480
1,480
-
-
(2,053)
(2,053)
198,125
198,125
165,402
(30,670)
71,180
71,180
52,218
18,962
51,675
51,675
73,185
(21,510)
5,000
5,000
348
4,652
43,150
43,150
34,793
8,357
8,000
8,000
-
8,000
179,005
179,005
160,544
18,461
-
-
(10,000)
10,000
$ 19,120 $
19,120
(5,142) $
(12,209)
Me
117,309
$ 112,167
Fiduciary Funds
Agency Fund
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, or other governments. The City maintained the following Agency fund during the year:
Contractor's Deposits — to account for pass-through costs relating to prospective developers.
CITY OF LINO LAKES, MINNESOTA Statement 16
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS
December 31, 2013
Balance Balance
January 1, December 31,
2013 Additions Deductions 2013
Assets
Cash and investments $ 510,181 $ 261,093 $ 101,796 $ 669,478
Liabilities
Deposits payable $ 510,181 $ 261,093 $ 101,796 $ 669,478
81
SUPPLEMENTARY FINANCIAL AND OTHER INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2013
Other Long -Term Debt:
Note Payable - Anoka County - 2009A 4.00%-3.70% 8/01/2009 8/1/2024
Total City indebtedness
82
Final
Interest
Maturity
Rates
Dated
Date
General Obligation Bonds:
2010A Equipment Certificates
2.00%-3.00%
4/1/2010
12/31/2013
2011A Equipment Certificates
1.00%
2/14/2011
12/31/2014
2012A Equipment Certificates
1.00%
2/1/2012
12/31/2015
2013A Equipment Certificates
1.00%
2/1/2013
12/31/2016
G.O. Tax Abatement Bonds, Series 2006C
4.00%-4.30%
8/15/2006
2/1/2023
G.O. Utility Revenue Bonds, Series 2006D
4.00%-4.15%
8/15/2006
2/1/2017
G.O. CIP Refunding Bonds, Series 2006E
4.00%
11/1/2006
2/1/2018
G.O. Tax Increment Bonds, Series 2007A
4.00%-4.125%
7/15/2007
2/1/2024
G.O. Refunding Bonds, Series 2012A
1.00%-2.00%
11/15/2012
2/1/2024
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 2002A
3.00%-4.10%
8/1/2002
2/1/2013
G. O. Improvement Bonds of 2002B
3.20%-5.55%
8/1/2002
2/1/2013
G. O. Improvement Refunding Bonds of 2003A
2.00%-4.25%
12/1/2003
2/1/2019
G. O. Improvement Bonds of 2003B
3.20%-5.60%
12/1/2003
2/1/2014
G. O. Improvement Bonds of 2005A
4.35%-5.15%
11/1/2005
2/1/2021
G. O. Improvement Refunding Bonds of 2005B
3.75%-5.00%
11/1/2005
2/1/2015
G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A
2.00%-3.00%
7/9/2010
2/1/2020
G.O. Improvement Bonds, Series 2013A
1.25%-4.00%
7/15/2013
2/1/2024
Total General Improvement Bonds with special assessments pledged
Other Long -Term Debt:
Note Payable - Anoka County - 2009A 4.00%-3.70% 8/01/2009 8/1/2024
Total City indebtedness
82
Exhibit 1
Prior Years
Principal
Interest
Original
Payable
2013
Payable
Due
Due
Issue
Payments
1/1/13
Issued
Payments
12/31/13
In 2014
In 2014
$ 336,000
$ 276,000
$ 60,000
$ - $
60,000
$ -
$ -
$
170,000
89,000
81,000
-
40,000
41,000
41,000
410
150,000
-
150,000
49,000
101,000
50,000
1,010
193,000
-
-
193,000
-
193,000
63,000
3,699
2,460,000
115,000
2,345,000
-
125,000
2,220,000
140,000
91,020
570,000
255,000
315,000
-
60,000
255,000
60,000
9,293
2,990,000
705,000
2,285,000
-
355,000
1,930,000
360,000
70,000
4,215,000
820,000
3,395,000
-
285,000
3,110,000
345,000
118,426
2,015,000
-
2,015,000
-
-
2,015,000
70,000
19,213
13,099,000
2,260,000
10,646,000
193,000
974,000
9,865,000
1,129,000
313,071
645,000
615,000
30,000
-
30,000
-
-
-
2,110,000
1,845,000
265,000
265,000
2,090,000
1,605,000
485,000
483,000
-
-
-
250,000
185,000
65,000
30,000
35,000
35,000
980
5,550,000
1,700,000
3,850,000
-
345,000
3,505,000
365,000
168,360
3,755,000
2,485,000
1,270,000
425,000
845,000
425,000
31,625
1,000,000
185,000
815,000
-
95,000
720,000
95,000
19,700
615,000
-
-
615,000
-
615,000
-
18,737
16,015,000
8,435,000
6,780,000
615,000
1,675,000
5,720,000
920,000
239,402
4,260,000
-
3,695,000
-
-
3,695,000
995,000
114,951
$ 35,114,000
$ 12,435,000
$ 21,121,000
$ 808,000 $
2,649,000
$ 19,280,000
$ 3,044,000
$ 667,424
83
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2013
84
G. O.
G. O.
G. 0.
G. 0.
Improvement
Tax
Year of
Equipment
Equipment
Equipment
Improvement
Improvement
Refunding
Abatement
Levy/
Certificates
Certificates
Certificates
Bonds
Bonds
Bonds
Bonds
Collection
of 2011A
of 2012A
of 2013A
of 2003B
of 2005A
of 2005B
2006C
2013/2014
$ 43,481
$ 53,561
$ 70,034
$ 23,781
$ 566,197
$ 463,050
$ 255,381
2014/2015
-
54,086
69,615
-
567,247
-
264,458
2015/2016
-
-
68,933
-
572,497
-
278,140
2016/2017
-
-
-
-
571,184
-
285,411
2017/2018
-
-
-
-
574,072
-
297,263
2018/2019
-
-
-
-
574,907
-
313,472
2019/2020
-
-
-
-
579,639
-
323,316
2020/2021
-
-
-
-
-
-
337,517
2021/2022
-
-
-
-
-
-
350,447
2022/2023
-
-
-
-
-
-
-
2023/2024
-
-
-
-
-
-
-
$ 43,481
$ 107,647
$ 208,582
$ 23,781
$ 4,005,743
$ 463,050
$ 2,705,405
84
Exhibit 2
G. O.
$ 493,843 $
G.O.
$ 101,149 $
CIP
G. O.
Improvement and
G.O.
Refunding
TIF
Utility Revenue G.O.
Improvement
Bonds
Bonds
Refunding Bonds Refunding Bonds
Bonds
2006E
2007A
2010A 2012A
2013A Total
$ 443,940
$ 493,843 $
121,433
$ 101,149 $
10,119
$ 2,645,969
449,820
495,103
124,688
257,620
9,331
2,291,968
460,110
500,983
121,537
266,406
8,544
2,277,150
464,100
506,023
118,387
259,128
7,158
2,211,391
-
268,723
120,488
261,868
5,772
1,528,186
-
271,243
117,180
258,849
3,882
1,539,533
-
278,593
124,372
182,417
1,992
1,490,329
-
285,313
-
179,687
4,722
807,239
-
291,403
-
181,949
1,992
825,791
-
301,855
-
183,899
-
485,754
-
306,127
-
180,330
-
486,457
$ 1,817,970
$ 3,999,209 $
848,085
$ 2,313,302 $
53,512
$ 16,589,767
85
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2013
W
G. O.
G. O.
Equipment
Equipment
Equipment
Improvement
Improvement
Certificates
Certificates
Certificates
Bonds
Bonds
2011A
2012A
2013A
2003B
2005A
Bonds payable
$
41,000
$
101,000
$
193,000
$
35,000
$ 3,505,000
Future interest payable
410
1,520
5,649
980
763,741
Totals
$
41,410
$
102,520
$
198,649
$
35,980
$ 4,268,741
Payments to maturity:
2014
$
41,410
$
51,010
$
66,699
$
35,980
$ 533,361
2015
-
51,510
66,300
-
529,736
2016
-
-
65,650
-
530,236
2017
-
-
-
-
534,611
2018
-
-
-
-
532,861
2019
-
-
-
-
534,633
2020
-
-
-
-
534,784
2021
-
-
-
-
538,519
2022
-
-
-
-
-
2023
-
-
-
-
-
2024
-
-
-
-
-
$
41,410
$
102,520
$
198,649
$
35,980
$ 4,268,741
W
Exhibit 3
G. O.
G.O.
G.O.
G.O.
$
G.O.
Improvement
Tax
Utility
CIP
G.O.
Improvement and
Refunding
Abatement
Revenue
Refunding
TIF
Utility Revenue
Bonds
Bonds
Bonds
Bonds
Bonds
Refunding Bonds
2005B
2006C
2006D
2006E
2007A
2010A
$
845,000
$
2,220,000
$
255,000
$
1,930,000
$
3,110,000
$
720,000
42,125
543,492
21,831
200,000
636,103
77,375
$
887,125
$
2,763,492
$
276,831
$
2,130,000
$
3,746,103
$
797,375
$
456,625
$
231,020
$
69,292
$
430,000
$
463,426
$
114,700
430,500
240,043
66,832
415,600
464,326
117,250
-
248,381
69,254
420,800
469,526
114,250
-
260,858
71,453
430,100
473,926
111,250
-
267,464
-
433,500
252,126
113,175
-
278,327
-
-
254,326
110,025
-
293,233
-
-
261,026
116,725
-
302,183
-
-
267,126
-
-
315,103
-
-
272,504
-
-
326,880
-
-
282,016
-
-
-
-
-
285,775
-
$
887,125
$
2,763,492
$
276,831
$
2,130,000
$
3,746,103
$
797,375
87
CITY OF LINO LAKES, MINI
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
December 31, 2013
Exhibit 3
Note
G.O.
Payable -
G.O.
Improvement
Anoka
Refunding Bonds
Bonds
County -
2012A
2013A
2009A
Totals
Bonds payable
$
2,015,000
$
615,000
$
3,695,000
$
19,280,000
Future interest payable
129,865
128,057
611,845
3,162,993
Totals
$
2,144,865
$
743,057
$
4,306,845
$
22,442,993
Payments to maturity:
2014
$
89,212
$
18,737
$
1,109,951
$
3,711,423
2015
238,632
77,565
460,345
3,158,639
2016
247,618
76,815
465,945
2,708,475
2017
241,311
75,780
470,945
2,670,234
2018
244,660
74,460
475,345
2,393,591
2019
242,590
72,900
483,195
1,975,996
2020
170,520
71,100
485,070
1,932,458
2021
168,560
69,000
356,049
1,701,437
2022
166,400
71,500
-
825,507
2023
169,001
68,900
-
846,797
2024
166,361
66,300
-
518,436
$
2,144,865
$
743,057
$
4,306,845
$
22,442,993
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2013
General Liability:
Exhibit 4
Coverage Amount
Bodily Injury/Property Damage $ 1,500,000
Personal Injury/Police Professional Liability 1,500,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limit 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 30,331,521
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 1,500,000
Comprehensive and Collision Actual Cash Value
Uninsured Motorists 200,000
Workmen's Compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible) 250,000
-A
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Taxable Valuations:
Total
Fiscal Disparities:
Distribution
Contribution
Less: Captured Tax Increment Value
Taxes Levied:
Revenue
Bond and Interest
Totals
Tax Capacity
Values
2012/2013
$ 16,601,721
2,620,748
(1,205,912)
(234,159)
$ 17,782,398
Tax Capacity
Values
2011/2012
$ 17,999,453
2,762,556
(1,246,881)
(279,219)
$ 19,235,909
Exhibit 5
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
w
Tax
Tax
Certified
Capacity
Certified
Capacity
Levy
Rate
Levy
Rate
$ 7,190,538
40.964
$ 7,192,818
37.501
1,025,090
5.810
1,034,441
5.393
$ 8,215,628
46.774
$ 8,227,259
42.894
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
w
STATISTICAL
SECTION
Statistical Section (Unaudited
This part of the Comprehensive Annual Financial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about overall financial health. The following are the
categories of the various schedules that are included in this section.
Financial Trends Tables 1-4
These schedules contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity Tables 5-8
These schedules contain information to help the reader assess the City's most significant revenue
sources.
Debt Capacity Tables 9-11
These schedules present information to help the reader assess the affordability of the City's
current levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 12-13
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City's financial activities take place.
Operating information Tables 14-16
These schedules contain service and infrastructure data to help the reader understand how the
information the City's financial report relates to the services the City provides and the activities it
performs.
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT,
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
Table 1
91
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Governmental Activities
Net Investment in Capital Assets
$ 28,807,262
$ 25,460,528
$ 29,549,174
$ 36,789,153
$ 28,472,865
$ 23,400,453
$ 22,562,217
$ 24,600,103
$ 22,166,342
$ 22,241,821
Restricted
3,045,052
12,050,484
10,704,508
10,324,467
9,870,676
9,414,474
8,428,025
11,598,803
11,595,112
11,000,033
Unrestricted
16,249,541
13,577,071
14,516,466
6,339,528
10,790,359
15,9261322
16,7385885
13,463,210
1796395038
16,849,636
Total Governmental Activities Net Position
$ 48,101,855
$ 51,088,083
$ 54,770,148
$ 53,453,148
$ 49,133,900
$ 48,741,249
$ 47,729,127
$ 49,662,116
$ 51,400,492
$ 50,091,490
Business -Type Activities
Net Investment in Capital Assets
$ 26,713,498
$ 28,342,832
$ 29,485,942
$ 29,836,775
$ 30,372,670
$ 30,071,840
$ 29,648,461
$ 29,216,866
$ 28,798,095
$ 28,423,284
Unrestricted
4,744,875
5,572,338
618809547
810631983
970287778
107112,207
101728,626
11,2011362
12,102,013
12,999,182
Total Business -Type Activities Net Position
$ 31,458,373
$ 33,915,170
$ 36,366,489
$ 37,900,758
$ 39,401,448
$ 40,184,047
$ 40,377,087
$ 40,418,228
$ 40,900,108
$ 41,422,466
Primary Government
Net Investment in Capital Assets
$ 55,520,760
$ 53,803,360
$ 59,035,116
$ 66,625,928
$ 58,845,535
$ 53.,472,293
$ 52,210,678
$ 53,816,969
$ 50,964,437
$ 50,665,105
Restricted
3,045,052
12,050,484
10,704,508
10,324,467
9,870,676
9,414,474
8,428,025
11,598,803
11,595,112
11,000,033
Unrestricted
20,994,416
19,149,409
21,3971013
14,4037511
197819137
26,038,529
271467,511
2476647572
2917413051
29,848,818
Total Primary Government Net Position
$ 79,560,228
$ 85,003,253
$ 91,136,637
$ 91,353,906
$ 88,535,348
$ 88,925,296
$ 88,106,214
$ 90,080,344
$ 92,300,600
$ 91,513,956
91
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION,
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Program Revenues
Fiscal Year
2004
2005
2006
2007
2008
Expenses
Charges for services:
Governmental activities:
General Government
$
122,861
$ 111,480
$
88,924
$
91,646
General Govemment
$ 2,524,387
$
2,941,279
$
2,886,825
$
2,197,672
$ 2,323,358
Public Safety
2,799,294
3,091,174
434,087
3,516,376
420,741
3,730,504
4,051,162
Public Services
7,254,708
9,187,436
196,951
3,871,968
188,439
10,580,560
7,608,626
Parks, Recreation and Forestry
1,196,096
799,335
4,873
1,162,458
6,854
1,357,133
919,948
Conservation of Natural Resources
116,869
150,092
26,985
156,592
20,530
183,420
184,624
Community Development
420,874
383,211
761,924
691,880
643,749
1,122,802
1,114,158
Interest on long-term debt
748,832
797,341
10,128,024
926,021
5,963,204
980,849
1,045,781
Total governmental activities expenses
$ 15,061,060
_L
17,349,868
_L
13,212,120
_L
20,152,940
$ 17,247,657
Business -type activities:
Business -type activities:
Water
$ 914,039
$
876,592
$
976,575
$
1,170,902
$ 1,020,770
Sewer
1,130,994
$
1,217,825
$ 1,031,175
1,228,123
1,175,172
1,298,963
1,287,943
Total business -type activities
2,045,033
2,094,417
1,361,759
2,204,698
1,391,702
2,469,865
2,308,713
Total primary government expenses
$ 17,106,093
$
19,444,285
$
15,416,818
$
22,622,805
$ 19,556,370
Program Revenues
Governmental activities:
Charges for services:
General Government
$
122,861
$ 111,480
$
88,924
$
91,646
$ 79,844
Public Safety
1,049,858
998,210
844,514
1,078,995
1,296,418
Public Works
454,191
434,087
420,741
389,489
413,040
Parks, Recreation and Forestry
242,857
196,951
188,439
185,803
187,285
Conservation of Natural Resources
11,763
4,873
6,854
4,559
3,660
Community Development
28,952
26,985
20,530
15,839
11,623
Operating grants and contributions
677,079
761,924
643,749
851,791
693,065
Capital grants and contributions
7,515,238
10,128,024
5,963,204
7,189,346
1,094,789
Total governmental activities program revenues
$
10,102,799
$ 12,662,534
$
8,176,955
$
9,807,468
$ 3,779,724
Business -type activities:
Charges for services:
Water
$
979,075
$ 1,031,175
$
1,175,172
$
1,215,763
$ 1,058,493
Sewer
1,280,652
1,361,759
1,391,702
1,446,112
1,472,093
Operating grants and contributions
-
-
-
-
-
Capital grants and contributions
1,589,419
1,733,775
1,535,631
80,750
10,117
Total business -type activities program revenues
3,849,146
4,126,709
4,102,505
2,742,625
2,540,703
Total primary government program revenues
$
13,951,945
$ 16,789,243
$
12,279,460
$
12,550,093
$ 6,320,427
Net
Governmental activities
$
(4,958,261)
$ (4,687,334)
$
(5,035,165)
$
(10,345,472)
$ (13,467,933)
Business -type activities
1,804,113
2,032,292
1,897,807
272,760
231,990
Total primary government net expense
$
(3,154,148)
$ (2,655,042)
$
(3,137,358)
$
(10,072,712)
$ (13,235,943)
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes
$
6,630,279
$ 7,383,415
$
8,269,944
$
8,785,280
$ 9,424,697
Unrestricted grants and contributions
-
-
-
256,877
129,607
Unrestricted investment earnings
221,302
433,387
713,794
864,578
576,071
Change in market value
-
-
-
-
-
Gain on sale of capital assets
1,280,957
-
33,217
17,424
12,512
Miscellaneous
-
160,955
-
-
-
Transfers
(303,108)
(304,195)
(299,725)
(895,687)
(994,202)
Total governmental activities
$
7,829,430
$ 7,673,562
$
8,717,230
$
9,028,472
$ 9,148,685
Business -type activities:
Unrestricted investment earnings
$
34,833
$ 120,310
$
253,787
$
365,822
$ 274,498
Change in market value
-
-
-
-
-
Transfers
303,108
304,195
299,725
895,687
994,202
Total business -type activities
337,941
424,505
553,512
1,261,509
1,268,700
Total primary government
$
8,167,371
$ 8,098,067
$
9,270,742
$
10,289,981
$ 10,417,385
Change in Net Position
Governmental activities
$
2,871,169
$ 2,986,228
$
3,682,065
$
(1,317,000)
$ (4,319,248)
Business -type activities
2,142,054
2,456,797
2,451,319
1,534,269
1,500,690
Total primary government change in net position
$
5,013,223
$ 5,443,025
$
6,133,384
$
217,269
$ (2,818,558)
92
Table 2 (Continued)
Fiscal Y-
2009 2010 2011 2012 2013
$ 2,201,439
$ 1,987,415
$ 1,990,137
$ 1,883,961
$
1,566,388
4,299,366
3,971,261
4,019,101
4,046,415
3,950,197
4,027,553
3,968,063
8,110,979
5,584,283
4,540,888
1,313,560
1,124,907
1,218,472
1,210,867
835,783
215,607
197,571
139,544
184,051
141,204
1,005,997
1,105,254
617,747
430,121
404,726
928,668
1,064,172
927,535
837,755
951,842
$ 13,992,190
$ 13,418,643
$ 17,023,515
$ 14,177,453
$
12,391,028
$ 1,089,569
$ 1,045,901
$ 966,643
$ 949,121
$
927,800
1,432,107
1,466,847
1,638,063
1,527,637
1,584,395
2,521,676
255125748
256041706
294765758
2,512,195
$ 16,513,866
$ 15,931,391
$ 19,628,221
$ 16,654,211
$
145903,223
$ 101,741
$ 98,403
$ 103,687
$ 129,151
$
93,118
725,747
691,005
713,985
642,745
697,584
428,174
427,223
382,287
476,296
456,024
165,994
177,984
210,976
191,832
175,978
3,858
4,153
4,392
19,297
1,347
8,667
14,148
5,138
16,940
28,118
682,797
617,450
593,798
450,179
527,368
1,357,015
1,388,984
7,347,613
5,125,693
941,960
$ 3,473,993
$ 3,419,350
$ 9,361,876
$ 7,052,133
$
2,921,497
$ 1,365,817
$ 1,087,013
$ 1,090,104
$ 1,371,809
$
1,208,742
1,502,164
1,498,218
1,494,188
1,505,781
1,516,397
62,710
-
-
-
-
8,769
8,709
1,462
20,018
883
2,939,460
2,593,940
2,585,754
2,897,608
2,726,022
$ 6,413,453
$ 6,013,290
$ 11,947,630
$ 9,949,741
$
5,647,519
$ (10,518,197)
$ (9,999,293)
$ (75661,639)
$ (7,125,320)
$
(9,469,531)
417,784
81,192
(18,952)
420,850
213,827
$ (10,100,413)
$ (9,918,101)
$ (7,680,591)
$ (69704,470)
$
(9,255,704)
$ 9,808,324
$ 8,764,183
$ 8,768,805
$ 8,610,709
$
8,563,595
11,321
4,389
4,072
4,941
4,442
429,325
225,677
251,250
202,828
216,488
-
-
-
-
(2709692)
12,644
-
37,579
4,175
-
(136,068)
(7,078)
66,122
41,043
(353,304)
$ 10,125,546
$ 8,987,171
$ 9,127,828
$ 8,863,696
$
8,160,529
$ 228,747
$ 104,770
$ 126,215
$ 102,073
$
113,402
-
-
-
-
(158,175)
136,068
7,078
(66,122)
(41,043)
353,304
364,815
111,848
60,093
61,030
308,531
$ 10,490,361
$ 9,099,019
$ 9,187,921
$ 8,924,726
$
8,469,060
$ (392,651)
$ (1,012,122)
$ 1,466,189
$ 1,738,376
$
(1,309,002)
782,599
193,040
41,141
481,880
522,358
$ 389,948
$ (819,082)
$ 1,507,330
$ 2,220,256
$
(786,644)
93
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Table 3
Fiscal Year
2004 2005 2006 2007
General Fund
Reserved
$
142,492
$
148,652
$
153,009
$
181,759
Unreserved
5,067,973
5,300,156
5,337,225
5,356,272
Nonspendable
-
-
-
-
Unassigned
-
-
-
-
Total general fund
$
5,210,465
$
5,448,808
$
5,490,234
$
5,538,031
All Other Governmental Funds
Reserved reported in:
Special Revenue Funds
$
1,718
$
1,763
$
1,813
$
226,921
Capital Projects Funds
957,112
957,112
957,112
885,825
Debt Service Funds
2,556,300
7,371,359
3,992,952
3,925,402
Permanent Funds
-
100,000
100,000
100,000
Unreserved reported in:
Special Revenue Funds
57,616
74,716
82,385
100,955
Capital Projects Funds
6,241,408
7,348,375
5,525,508
8,395,827
Debt Service Funds
452,972
-
-
-
Permanent Funds
-
853
5,378
17,023
Nonspendable
-
-
-
-
Restricted
-
-
-
-
Committed
-
-
-
-
Assigned
-
-
-
-
Unassigned
-
-
-
-
Total all other governmental funds
$
10,267,126
$
15,854,178
$
10,665,148
$
13,651,953
Total all funds
$
15,477,591
$
21,302,986
$
16,155,382
$
19,189,984
94
Table 3 (Continued)
Fiscal Year
2008 2009 2010 2011 2012 2013
$ 190,825 $ 196,568 $ 181,471 $ - $ - $ -
5,393,316 5,191,396 5,445,334 - - -
- - - 165,079 180,786 176,797
- - - 5,440,101 5,053,031 5,209,286
$ 5,584,141 $ 5,387,964 $ 5,626,805 $ 5,605,180 $ 5,233,817 $ 5,386,083
$ 226,973
$ 227,176
$ 227,342-
812,400
736,772
658,875
-
-
-
3,405,272
3,457,349
2,986,102
-
-
-
100,000
100,000
100,000
-
-
-
106,573
93,956
110,471
-
-
-
5,927,411
11,611,835
12,537,841
-
-
-
-
(558,443)
(1,093,765)
-
-
-
22,224
15,824
12,676
-
-
-
-
-
-
906,010
823,113
101,710
-
-
-
2,658,010
3,041,524
3,651,550
-
-
-
110,568
115,196
121,075
-
-
-
10,808,268
15,573,179
15,710,702
-
-
-
(3,154,496)
(3,262,728)
(3,393,547)
$ 10,600,853
$ 15,684,469
$ 15,539,542
$ 11,328,360
$ 16,290,284
$ 16,191,490
$ 16,184,994
$ 21,072,433
$ 21,166,347
$ 16,933,540
$ 21,524,101
$ 21,577,573
95
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Revenues
Property Taxes
Licenses and Permits
Intergovernmental
Special Assessments
Charges for Services
Fines and Forfeits
Investment Earnings
Net Increase (Decrease) in Fair Value of Investments
Miscellaneous
Total revenues
Expenditures
Current:
General Government
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Capital Outlay
Debt Service
Principal
Interest and Fiscal Charges
Bond Issuance Costs
Total expenditures
Excess (deficiency) of revenues
over expenditures
Other Financing Sources (Uses)
Sale of Property
Proceeds from Issuance of Debt
Premium on Bonds Issued
Discount on Bonds Issued
Payment to Refunded Bond Escrow Agent
Loan Payable Reapportionment
Transfer In
Transfer Out
Total other financing sources (uses)
Net change in fund balances
Table 4
Fiscal Year
2004
2005
2006
2007
$ 6,523,938
$ 7,230,287
$ 8,103,263
$ 8,529,846
867,909
812,172
581,582
694,435
2,419,531
1,808,111
1,818,519
6,143,689
1,587,510
1,769,821
2,901,100
1,961,253
639,565
601,548
687,551
753,698
106,053
100,980
101,518
139,932
221,303
433,385
713,795
864,578
782,179
948,009
716,692
889,901
13,147,988
13,704,313
15,624,020
19,977,332
2,261,908
2,701,731
2,614,303
1,953,960
2,798,013
3,099,032
3,314,159
3,513,460
5,126,578
7,071,322
7,755,727
8,446,911
954,945
1,111,301
1,076,727
1,103,021
115,631
140,334
143,653
183,346
-
-
683,036
1,107,328
515,287
464,553
835,770
2,008,073
1,960,000
2,016,000
2,155,000
1,973,000
798,405
838,950
1,011,157
937,895
14,530,767
17,443,223
19,589,532
21,226,994
(1,382,779) (3,738,910) (3,965,512) (1,249,662)
1,280,957
280,269
28,818
54,037
1,604,000
9,412,000
6,327,000
4,375,000
-
176,231
450
-
(6,057)
-
(13,635)
(25,798)
(1,170,000)
-
(7,225,000)
-
5,283,306
2,651,469
5,811,452
2,900,249
(5,586,414)
(2,955,664)
(6,111,177)
(3,019,224)
1,405,792
9,564,305
(1,182,092)
4,284,264
$ 23,013 $ 5,825,395 $ (5,147,604) $ 3,034,602
Debt service as a percentage of
noncapital expenditures 19.7% 16.8% 16.9% 15.1%
Table 4 (Continued)
Fiscal Year
2008 2009 2010 2011 2012 2013
$ 9,095,085
$ 9,561,570
$ 8,647,488
$ 8,655,971
$ 8,560,340
$ 8,475,214
802,135
307,714
330,138
322,030
319,172
431,654
1,004,476
1,259,016
1,176,863
1,331,914
5,267,570
500,963
950,188
968,995
851,270
904,522
816,998
2,130,519
872,534
778,163
780,044
812,604
744,633
717,300
133,531
111,807
127,203
154,020
155,956
119,079
576,071
429,325
225,677
251,244
202,825
222,810
-
-
-
-
-
(276,276)
516,415
513,306
502,992
460,710
414,088
384,749
13,950,435
13,929,896
12,641,675
12,893,015
16,481,582
12,706,012
2,058,267
1,918,246
1,730,390
1,773,515
1,619,215
1,569,722
3,806,389
4,122,352
3,798,106
3,791,329
3,861,265
3,744,957
5,542,308
1,965,640
1,902,411
2,192,732
3,339,430
2,953,969
1,033,260
1,106,006
945,821
1,059,191
1,056,976
1,002,797
183,024
209,466
185,232
134,122
176,318
134,127
1,113,232
1,005,095
1,098,682
624,286
435,154
418,533
585,875
501,806
282,938
4,209,593
616,931
291,135
1,749,000
1,908,000
1,866,000
2,030,000
2,145,000
2,214,000
1,074,052
994,809
1,042,883
983,129
831,875
774,172
-
-
-
-
47,054
17,137
17,145,407
13,731,420
12,852,463
16,797,897
14,129,218
13,120,549
(3,194,972) 198,476 (210,788) (3,904,882) 2,352,364 (414,537)
13,750
35,700
20,600
50,953
4,175
16,727
209,000
4,596,000
1,170,000
120,000
2,165,000
808,000
-
11,141
10,980
-
-
6,558
-
-
(965,000)
-
-
(435,000)
-
-
-
(565,000)
-
-
4,763,391
1,413,985
1,195,747
2,971,715
1,979,457
1,722,541
(4,796,159)
(1,367,863)
(1,127,625)
(2,905,593)
(1,910,435)
(1,650,817)
189,982
4,688,963
304,702
(327,925)
2,238,197
468,009
$ (3,004,990)
$ 4,887,439
$ 93,914
$ (4,232,807)
$ 4,590,561
$ 53,472
27.6%
22.7%
23.7%
18.6%
22.1%
25.3%
97
CITY OF LINO LAKES, MINNESOTA Table 5
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Source: Anoka County, Minnesota Assessors' Office
Note: The tax capacity (assessed taxable value) of the property is calculated by applying a
statutory formula to the estimated market value of the property.
.;
Commercial/
Total Taxable
Payable
Residential
Industrial
Personal
Assessed
Total Direct
Year
Property
Property
Property
Value
Tax Rate
2004
$ 12,252,347
$ 1,982,146
$ 259,194
$ 14,493,687
42.29
2005
14,055,076
2,290,829
274,956
16,620,861
42.22
2006
15,825,619
2,740,583
271,665
18,837,867
41.40
2007
17,605,080
3,047,965
288,290
20,941,335
38.99
2008
18,382,645
3,431,107
279,102
22,092,854
38.97
2009
18,919,087
4,002,349
275,496
23,196,932
38.73
2010
17,978,917
3,800,004
291,904
22,070,825
37.91
2011
16,214,698
3,223,901
303,964
19,742,563
42.04
2012
14,743,557
2,945,026
310,870
17,999,453
42.89
2013
13,693,905
2,571,769
336,047
16,601,721
46.77
Source: Anoka County, Minnesota Assessors' Office
Note: The tax capacity (assessed taxable value) of the property is calculated by applying a
statutory formula to the estimated market value of the property.
.;
CITY OF LINO LAKES, MINNESOTA Table 6
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(rate per $100 of Tax Capacity)
Citv Direct Rate Overlanoine Rates
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
General
Centennial
Total Direct
Obligation
School
Other
and
Debt Redevelopment
Total
District
Anoka
Taxing
Total
Overlapping
Fiscal Year
Basic Rate
Service Debt Service
Direct
ISD # 12
County
Districts
Overlapping
Tax Rate
2004
$ 36.302
$ 5.985 $
$ 42.287
$ 36.649
$ 35.221
$ 6.373
$ 78.243
$ 120.530
2005
36.838
5.385
42.223
37.486
33.080
6.696
77.262
119.485
2006
36.044
5.354
41.398
40.253
32.096
6.479
78.828
120.226
2007
34.356
4.638
38.994
38.090
30.696
5.578
74.364
113.358
2008
34.560
4.407
38.967
35.258
31.078
6.956
73.292
112.259
2009
34.716
4.017
38.733
34.593
32.078
5.611
72.282
111.015
2010
34.086
3.819
37.905
37.285
35.189
5.879
78.353
116.258
2011
37.425
4.616
42.041
43.695
39.952
6.278
89.925
131.966
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
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
2013
Source: Anoka County
100
Table 7
2004
Percentage
Percentage
City
Taxable
of Total
Net Tax
Rank
Capacity
1
City
3
0.86
Taxable
0.82
Taxable
Taxable
6
Net Tax
8
Net Tax
Net Tax
Taxpayer
Capacity
Rank
Capacity
Capacity
9
0.45
Target Corporation
$ 210,824
1
1.27 %
$ 252,988
Lino Lakes Realty LLC
181,810
2
1.10
-
Xcel Energy
176,456
3
1.06
131,145
Moline Concrete Products
110,333
4
0.66
125,132
Kohl's Department Store
104,810
5
0.63
152,550
Taylor Corporation
97,230
6
0.59
99,752
Gargaro Properties LLC
85,908
7
0.52
-
Marmon/Keystone Corp
77,462
8
0.47
72,296
CenterPoint Energy
65,794
9
0.40
49,316
EOC Lino Lakes LLC
59,250
10
0.36
-
Lino Lakes Business Center
-
-
99,752
Individual
-
-
76,930
F&G Incorporated
-
-
69,126
Total
$ 1,169,877
7.05 %
$ 1,128,987
Source: Anoka County
100
Table 7
2004
7.38 %
Percentage
of Total
City
Taxable
Net Tax
Rank
Capacity
1
1.66%
3
0.86
4
0.82
2
1.00
6
0.65
8
0.47
10
0.32
5
0.65
7
0.50
9
0.45
7.38 %
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
Taxes Levied for the Fiscal Year
Fiscal
Operating
Debt
Total Tax
Year
Tax Levy
Tax Levy
Levy
2004
$ 5,623,542
$ 927,078
$ 6,550,620
2005
6,342,211
927,091
7,269,302
2006
7,042,626
934,281
7,976,907
2007
7,558,995
897,333
8,456,328
2008
7,973,236
893,720
8,866,956
2009
8,295,172
949,166
9,244,338
2010
7,816,232
879,182
8,695,414
2011
7,719,240
940,760
8,660,000
2012
7,192,818
1,034,441
8,227,259
2013
7,190,538
1,025,090
8,215,628
Notes:
Table 8
Collected within the
Fiscal Year of Levy
Current year levies and collections include State levy related credits (HACA and Market Value Credit).
Does not include tax increment levies and collections.
101
Percentage
of
Amount
Levy
6,145,419
93.8%
6,881,838
94.7%
7,594,019
95.2%
8,324,180
98.4%
8,581,974
96.8%
8,982,756
97.2%
8,400,439
96.6%
8,486,845
98.0%
8,095,502
98.4%
8,094,911
98.5%
Current year levies and collections include State levy related credits (HACA and Market Value Credit).
Does not include tax increment levies and collections.
101
Collections in
Subsequent
Years
$ 48,430 $
56,369
63,030
104,437
126,071
190,339
166,378
97,267
55,872
Total Collections to Date
102
Outstanding
Delinquent
Taxes
356,771
331,095
319,858
27,711
158,911
71,243
128,597
75,888
75,885
120,717
Table 8 (Continued)
Percentage
of Levy
Outstanding
5.4%
4.6%
4.0%
0.3%
1.8%
0.8%
1.5%
0.9%
0.9%
1.5%
Percentage
of
Amount
Levy
6,193,849
94.6% $
6,938,207
95.4%
7,657,049
96.0%
8,428,617
99.7%
8,708,045
98.2%
9,173,095
99.2%
8,566,817
98.5%
8,5 84,112
99.1%
8,151,374
99.1%
8,094,911
98.5%
102
Outstanding
Delinquent
Taxes
356,771
331,095
319,858
27,711
158,911
71,243
128,597
75,888
75,885
120,717
Table 8 (Continued)
Percentage
of Levy
Outstanding
5.4%
4.6%
4.0%
0.3%
1.8%
0.8%
1.5%
0.9%
0.9%
1.5%
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Governmental Activities
General
Special
Obligation
Assessments
Bonds
Payable
Other
Long -Term
Debt
Business -Type
Activities
General
Obligation
Revenue
Bonds
Table 9
Total
Primary
Government
2004 $
5,764,000 $
11,580,000
$ - $
2,705,000
$ 20,049,000
2005
5,335,000
19,405,000
-
2,425,000
27,165,000
2006
7,177,000
13,940,000
-
4,410,000
25,527,000
2007
11,569,000
12,520,000
-
1,855,000
25,944,000
2008
11,184,000
11,365,000
-
1,530,000
24,079,000
2009
10,712,000
10,265,000
4,260,000
1,170,000
26,407,000
2010
10,141,000
9,175,000
4,260,000
795,000
24,371,000
2011
9,421,000
7,985,000
3,695,000
405,000
21,506,000
2012
10,331,000
7,095,000
3,695,000
-
21,121,000
2013
9,610,000
5,975,000
3,695,000
-
19,280,000
Notes:
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.
103
Table 9 (Continued)
104
(1)
Less: Amounts
Percentage
Percentage
Available in Debt
Net
of Assessed
of Personal
Per
Service Funds
Bonded Debt
Market Value
Income
Capita
$ 2,556,300
$ 17,492,700
1.22
2.69
$ 1,071
7,371,359
19,793,641
1.29
2.84
1,379
3,992,952
21,534,048
1.24
2.98
1,293
3,925,402
22,018,598
1.14
2.90
1,307
3,405,272
20,673,728
1.02
2.65
1,205
3,457,349
22,949,651
1.08
3.00
1,301
2,986,102
21,384,898
1.07
2.73
1,206
2,638,129
18,867,871
1.05
2.31
1,049
3,035,557
18,085,443
1.10
2.11
1,024
3,357,196
15,922,804
1.18
N/A
931
104
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2012
Table 10
Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt,
the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply
that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
105
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable
Debt
Overlapping:
Anoka County
$ 156,865,958
6.6%
$ 10,288,289
ISD 12
50,645,000
46.5%
23,534,395
ISD 624
92,180,000
3.5%
3,197,863
ISD 831
26,740,000
7.6%
2,043,174
Metropolitan Council
1,396,829,257
0.6%
8,274,700
Anoka County Railroad Authority
27,440,000
6.6%
1,799,697
Total Overlapping
49,13 8,118
City of Lino Lakes Direct Debt
$ 19,280,000
100%
19,280,000
Total Direct and Overlapping Debt:
$ 68,418,118
Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt,
the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply
that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
105
CITY OF LINO LAKES, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Table 11
Fiscal Year
2004 2005 2006 2007
$ 28,616,070
$ 30,698,674
$ 34,686,356
$ 38,556,150
5,169,000
4,845,000
4,332,000
4,039,000
$ 23,447,070
$ 25,853,674
$ 30,354,356
$ 34,517,150
18.06%
15.78%
12.49%
10.48%
106
Table 11 (Continued)
Legal Debt Margin Calculation for Fiscal Year 2012
Market value $ 1,519,857,242
Debt limit (3% of market value) 45,595,717
Debt applicable to limit 4,280,000
Legal debt margin $ 41,315,717
Fiscal Year
2008
2009
2010
2011
2012
2013
$ 60,658,830
$ 64,036,746
$ 60,622,086
$ 54,123,645 $
45,595,717 $
45,595,717
3,804,000
3,642,000
3,386,000
2,961,000
4,280,000
4,280,000
$ 56,854,830
$ 60,394,746
$ 57,236,086
$ 51,162,645 $
41,315,717 $
41,315,717
6.27%
5.69%
5.59%
5.47%
9.39%
9.39%
107
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Per
Capita (3)
Personal School
Income Enrollment
Table 12
(4)
Unemployment
Rate
$ 34,729
6,956
(2)
35,374
6,934
Personal
36,516
6,986
Income
Fiscal
(1)
(thousands
Year
Population
of dollars)
2004
18,725
$ 650,301
2005
19,698
696,797
2006
19,736
720,680
2007
19,851
759,718
2008
19,987
781,132
2009
20,305
768,341
2010
20,216
777,912
2011
20,505
831,170
2012
20,625
857,753
2013
20,700
N/A
Per
Capita (3)
Personal School
Income Enrollment
Table 12
(4)
Unemployment
Rate
$ 34,729
6,956
4.6
35,374
6,934
3.8
36,516
6,986
4.1
38,271
6,846
4.8
39,082
6,768
6.9
37,840
6,725
7.8
38,480
6,523
7.1
40,535
6,426
5.9
41,588
6,421
5.6
N/A
6,392
4.5
Source:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2013 which is
city estimate
(2) Information from Bureau of Economic Analysis Report - Anoka County statistics used as local
information is unavailable
(3) Information from ISD 12 Website
(4) Information from MN Department of Employment and Economic Development - Anoka County statistics
used as local information is unavailable
Note: Information not available is marked N/A
108
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
Employer Employees
State of Minnesota Corrections
460
ISD 12 - Centennial Schools
362
Taylor Corporation
160
Target Corporation
150
Curtis 1000
130
Molin Concrete Products
120
Anoka County Juvenile Center
120
Kohls
120
YMCA
120
Rehbein Transit, Inc.
100
Synovis Interventional Systems
-
Summit Fire Protection
2
Custom Manufacturing
-
Total
1,842
2013
2004
Table 13
Source: City of Lino Lakes Official Statements/Employer Surveys
Notes:
(1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment
within the City was not available.
109
(1)
(1)
Percentage
Percentage
of Total
of Total
Rank
Employment
Employees
Rank
Employment
1
N/A %
428
2
N/A %
2
N/A
-
-
N/A
3
N/A
223
5
N/A
4
N/A
275
3
N/A
5
N/A
-
-
N/A
6
N/A
150
6
N/A
7
N/A
2,579
1
N/A
8
N/A
135
8
N/A
9
N/A
-
-
N/A
10
N/A
135
9
N/A
-
-
231
4
N/A
-
-
150
7
N/A
-
-
70
10
N/A
- %
4,376
- %
Source: City of Lino Lakes Official Statements/Employer Surveys
Notes:
(1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment
within the City was not available.
109
CITY OF LINO LAKES, MINNESOTA
FULL -TIME -EQUIVALENT EMPLOYEES BY TYPE
LAST TEN FISCAL YEARS
General Government
Administration
Seniors
Finance
Economic Development
Planning
Community Development
Engineering
Building
Other
Total General Government
Public Safety
Officers
Civilians
Building Inspection
Total Public Safety
Public Works
Streets
Other
Total Public Works
Parks, Recreation and Forestry
Water
Sewer
Total
Source: City Finance Office
Table 14
2004
2005
2006
2007
5.00
5.00
5.00
5.00
0.63
0.63
0.63
0.63
3.50
3.50
3.50
3.50
1.00
1.00
1.00
1.00
2.00
2.00
2.00
2.00
2.00
2.75
2.75
2.75
1.00
1.00
1.00
1.00
0.55
1.15
1.15
1.40
15.68
17.03
17.03
17.28
22.00
25.00
26.00
26.00
4.00
4.75
4.75
4.75
4.00
4.25
4.25
4.25
30.00
34.00
35.00
35.00
5.85
6.35
6.85
7.35
1.15
1.15
1.15
1.15
7.00
7.50
8.00
8.50
9.15
9.05
9.55
9.80
2.15
2.15
2.15
2.15
2.15
2.15
2.15
2.15
66.13
71.88
73.88
74.88
110
Table 14 (Continued)
2008
2009
2010
2011
2012
2013
5.00
5.00
4.00
3.50
3.50
3.50
0.63
0.63
0.63
-
-
-
3.50
3.50
3.00
3.00
3.00
3.00
1.00
1.00
1.00
1.00
1.00
-
2.00
2.00
2.00
1.00
1.00
1.00
2.75
2.75
2.25
2.00
2.00
2.00
1.00
1.00
1.00
-
-
-
1.40
1.40
1.40
0.70
0.70
0.70
17.28
17.28
15.28
11.20
11.20
10.20
27.00
27.00
27.00
25.00
25.00
25.00
4.75
4.75
4.25
4.00
3.00
3.00
4.25
4.25
2.75
2.50
2.50
2.50
36.00
36.00
34.00
31.50
30.50
30.50
7.35
7.35
6.85
7.00
7.00
7.00
1.15
1.15
1.15
1.00
1.00
1.00
8.50
8.50
8.00
8.00
8.00
8.00
9.80
9.80
9.30
9.00
9.00
8.70
2.15
2.15
2.15
2.15
2.15
2.30
2.15
2.15
2.15
2.15
2.15
2.30
75.88
75.88
70.88
64.00
63.00
62.00
111
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN YEARS
Table 15
Source: Various City Departments
Notes:
Information not available is labeled N/A.
(1) 1,565, 4,337 and 581 repair permits issued in 2007 and 2009, respectively, due to storm damage.
112
Fiscal Year
Function/Program
2004
2005
2006
2007
2008
General Government
Elections
2
1
2
1
2
Registered Voters
11,718
11,035
11,618
10,908
12,723
Number of Votes Cast
10,147
5,288
8,284
2,337
11,051
Voter Participation (Registered)
86.6%
47.9%
71.3%
21.4%
86.9%
Public Safety
Police:
Calls for Service
6,797
6,973
6,990
7,053
6,871
Traffic Citations & Warnings
3,319
6,609
5,964
3,805
3,252
Part I Crimes
1,716
1,375
3,372
1,279
1,461
Part II Crimes
3,497
3,119
4,890
3,432
3,767
Inspections:
Building Permits (1)
835
837
686
2,297
5,041
Value of Building Permits
$61,579,910
$53,686,592
$42,078,007
$30,539,559
$15,852,780
Public Works
General Maintenance (hours)
3,263
6,014
5,692
6,758
6,129
Street Maintenance (hours)
3,533
3,106
3,631
2,916
3,851
Fleet Maintenance (hours)
3,804
4,440
4,460
4,144
5,043
Snow Plowing/Sanding (hours)
855
1,003
867
1,425
1,353
Culture and Recreation
Parks:
Park Maintenance (hours)
10,210
10,577
10,368
10,939
11,136
Utilities
Water Maintenance (hours)
4,349
3,904
4,387
4,256
5,716
Sanitary Sewer Maintenance (hours)
3,347
4,092
3,347
4,148
3,760
Source: Various City Departments
Notes:
Information not available is labeled N/A.
(1) 1,565, 4,337 and 581 repair permits issued in 2007 and 2009, respectively, due to storm damage.
112
Table 15 (Continued)
Fiscal Year
2009 2010 2011 2012 2013
1
2
1
2
1
11,805
12,284
11,705
13,478
12,020
4,354
8,545
4,314
11,546
1,575
36.9%
69.6%
36.9%
85.7%
13.1%
6,353
6,398
6,384
6,344
6,210
3,187
2,743
2,604
2,694
2,597
1,075
982
1,117
N/A
N/A
3,151
2,911
2,911
N/A
N/A
1,535
509
452
459
490
$ 9,586,160
$ 11,295,493
$ 11,295,493
$ 10,751,626
$ 17,683,665
5,870
4,945
7,416
6,939
3,994
3,267
3,099
4,352
5,926
5,740
4,782
4,850
4,214
3,945
4,548
950
1,638
1,534
594
1,639
12,406
9,257
9,813
9,739
8,480
5,041
3,560
3,568
3,585
3,119
3,486
3,531
3,557
3,517
3,109
113
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN YEARS
Function/Program
2004
Public Safety
1
Police:
10
Stations
12
Patrol Units
12
Fire (Joint Powers):
1
Stations in City
1
Fire Trucks
4
Public Works
5
Lights
5
Vehicles
559
City Streets (miles)
673
Culture and Recreation
29
Parks:
29
Parks
29
Park Acres
95.5
Trails (miles)
96.1
Park Shelters
19
Basketball Courts
18
Fishing Pier
18
Skating Rinks
141
Soccer Fields
141
Baseball/Softball Fields
18
Tennis Courts
20
Playgrounds
26
Water
5
Distribution System (miles)
7
Water Connections
3,
Gallons Pumped (millions)
6
Number of Fire Hydrants
6
Water Tower Capacity (millions gallons)
1
Sanitary Sewer
1
Collection System (miles)
4
Sewer Connections
3,
Storm Sewer
4
Pipe (miles)
8
Source: Various City Departments
8
Table 16
Fiscal Year
2005 2006 2007 2008
1
94.3
48.2
61.4
31.9
1
1
1
1
10
11
12
12
12
1
1
1
1
1
4
4
5
5
5
489
559
673
673
673
29
29
29
29
29
95.5
96
96.1
100.71
19
18
18
18
18
142
141
141
141
141
18
19
20
26
26
5
5
7
7
7
6
6
6
6
6
1
1
1
1
1
4
4
4
4
4
8
8
8
8
8
18
18
20
20
20
2
2
2
2
2
17
17
16
16
16
50.8
51.1
64.7
74.7
738
3,957
4,090
4,112
4,247
474
475
565
595
590
490
523
538
538
538
2
2
2
2
2
63.5
63.3
64.5
69.8
960
4,142
4,282
4,428
4,447
33.1
34.1
34.3
41.4
114
Table 16 (Continued)
Fiscal Year
2009 2010 2011 2012 2013
1
1
1
1
1
12
12
12
12
12
1
1
1
1
1
5
5
5
5
5
673
673
673
673
673
29
29
29
29
29
100.71
100.71
100.71
100.71
100.71
18
18
18
18
18
141
141
141
141
141
26
26
26
26
26
7
7
6
6
6
6
6
6
6
6
1
1
1
1
1
4
4
4
4
4
8
8
8
8
8
20
20
20
20
20
2
2
2
2
2
16
16
16
16
16
74.7
74.7
74.7
74.7
74.7
4,340
4,382
4,424
4424
4484
589
498
492
609
536
538
538
538
538
538
2
2
2
2
2
69.8
69.8
69.8
69.8
69.8
4,486
4,530
4,567
4567
4624
41.4
41.4
41.4
41.4
41.4
115