The URL can be used to link to this page

Home My WebLink AboutComprehensive Annual Financial Report 12/31/2015COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2015 Prepared By: Finance Department Sarah Cotton, 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 Combininiz Fund Financial Statements Combining Balance Sheet - Nonmajor Governmental Funds Statement 14 76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds Statement 15 84 Special Revenue Fund - Program Recreation: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Statement 16 92 Statement of Changes in Assets and Liabilities - Fiduciary Funds - Agency Funds Statement 17 93 Supplementary Financial and Other Information Combined Schedule of Indebtedness Exhibit Page 94 Reference Number Required Supplementary Information 96 Debt Service Payments to Maturity - All Bonds General Fund: 3 98 Schedule of Revenues, Expenditures, and Changes in Fund Exhibit 4 Balance - Budget and Actual Statement 11 66 Note to Required Supplementary Information 102 72 Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 73 PERA Schedule of City's Proportionate Share of the Net Pension Liability Statement 13 74 Combininiz Fund Financial Statements Combining Balance Sheet - Nonmajor Governmental Funds Statement 14 76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance - Nonmajor Governmental Funds Statement 15 84 Special Revenue Fund - Program Recreation: Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual Statement 16 92 Statement of Changes in Assets and Liabilities - Fiduciary Funds - Agency Funds Statement 17 93 Supplementary Financial and Other Information Combined Schedule of Indebtedness Exhibit 1 94 Schedule of Deferred Tax Levies Exhibit 2 96 Debt Service Payments to Maturity - All Bonds Exhibit 3 98 Insurance in Force Exhibit 4 101 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 102 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number III. STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years Table 1 103 Changes in Net Position - Last Ten Fiscal Years Table 2 104 Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 106 Changes in Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 4 108 Assessed and Actual Value of Taxable Property - Last Ten Fiscal Years Table 5 110 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Table 6 111 Principal Property Taxpayers Table 7 112 Property Tax Levies and Collections - Last Ten Fiscal Years Table 8 113 Ratios of Outstanding Debt by Type Table 9 115 Ratios of Net General Bonded Debt Table 10 117 Direct and Overlapping Governmental Activities Debt Table 11 119 Legal Debt Margin Information Table 12 120 Demographic and Economic Statistics Table 13 122 Principal Employers, Current Year and Nine Years Ago Table 14 123 Full -Time Equivalent Employees by Type Table 15 124 Operating Indicators by Function/Program Table 16 126 Capital Asset Statistics by Function/Program Table 17 128 I. INTRODUCTORY SECTION CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2015 Elected Officials Term Expires Mayor: Jeff Reinert December 31, 2015 Council Members: Dale Stoesz December 31, 2015 Rob Rafferty December 31, 2017 William Kusterman December 31, 2017 Dave Roeser December 31, 2015 Appointed Personnel City Administrator Jeff Karlson Director of Finance Sarah Cotton Director of Public Safety John Swenson Director of Community Development Michael Grochala Director of Public Service Rick DeGardner CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2015 City of Liao Lakes Organizational Chart Administration City Clerk Human Resources Public Information City Council I FCity Administrator =I-- - Finance Community Development Accounting Planning Utility Billing Netwo rk Administration 2 Economic Development Engineering Environmental Services Building Inspections Advisory Board & Commissions Public Services Recreation Government Buildings Public Works Street 1 Fleet 1 Utility Maintenance Parks Senior Citizen Services Public Safety Police Division Fire Division Emergency Management/ Administration CITY' of IIN KE May 16, 2016 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, 2015. 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, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City's financial statements for the fiscal year ended December 31, 2015, are fairly presented in conformity with GAAP. The independent auditors' report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino Lakes' MD&A can be found immediately following the report of the independent auditors. 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 21,200. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 26% 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 66 and 92, 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 a future date. Factors Affecting Financial Condition (Continued) In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast quadrant of I -35W and Lake Drive. Called Legacy at Woods Edge, this mixed-use development is intended to include diverse opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a 60 -unit workforce housing project, 13,000 square feet of leasable commercial space, and an assisted living facility. The Civic Complex and YMCA provide a civic and community focus as part of the vision for Town Center. A workforce family housing and assisted living facility provide diversity in housing to underserved populations within the City. In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion of public improvements in Legacy at Woods Edge to accommodate planned development and completed the improvements by 2008. However, it became evident at the end of 2007 that development was stalling. The recession has had negative impacts on the Legacy development. Both the master developer and lender defaulted, sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit. Development conditions have begun to improve relative to the Legacy property. During 2013, the assisted living facility purchased an adjoining parcel to expand its current operation. The 36 -room addition was completed in 2014. In addition, the State Legislature approved City -initiated special legislation which has allowed the City to acquire the tax forfeited property from the State at no cost except for an administrative fee payable to Anoka County if future sale revenues exceed the value of the special assessments on the property. The acquisition of this property will allow the City greater control in marketing the property to potential developers. The solid foundation that was built and strong interest by developers prior to the recession ensures that better economic times will once again bring the interest in residential and commercial growth needed to complete the vision. Street, streetscape, water, sewer, and storm water improvements, as well as a small community park, have been installed within the development area and assessed to the development. The $11.1 million I -35W Interchange improvement was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to finance its portion of the project cost. Building activity and development increased slightly in 2015, however, improvement in developer activity is evident. Building permits for new homes in 2015 numbered 47, compared to 33 in 2014. In addition, the City granted final plat approval for three new residential developments totaling 81 units in 2015. In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011. With both major interstate interchanges complete, the City is preparing for development of several hundred acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension of Otter Lake Road North east of I -35E and planning for the extension of 21st Avenue west of I -35E, which will leave the City well poised to accommodate significant future industrial, commercial and residential development. A McDonald's restaurant was completed in 2014 at CSAH 14 and Otter Lake Road. In addition, Metropolitan Transit has constructed a 300 space Park and Ride at I35 -E at CSAH 14 and 21St Avenue. Factors Affecting Financial Condition (Continued) Long-term financial planning. The City's currently adopted five-year financial plan identifies street and utility improvements totaling $23,387,990 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 2020. 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, 2015 was $5,725,736 which is 58% 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 2015 was 0.71%. 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 $80,781, or -0.23%, for a total investement yield of 0.48%. 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. 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, 2014. This marks the nineteenth consecutive year the City has received this prestigious award. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2015 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, Sarah R. Cotton Director of Finance Grovcriinient Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lino Lakes Minnesota For its Comprehensive Annual FinanGiat Report for the Fiscal Year Ended December 31, 2014 */�, eA 5 7� Executive Director/CEO II. FINANCIAL SECTION Clifton LarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota Clifton LarsonAllen LLP CLAconnect.com Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for 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. 1011 will An irxleperdent nwtff d Ne>da lrrtematia-d 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, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matters During fiscal year ended December 31, 2015, the City of Lino Lakes, Minnesota adopted the provisions of Government Accounting Standards Board Statement (GASB) No. 68, Accounting and Financial Reporting for Pensions and the related GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68. As a result of the implementation of these standards, the City of Lino Lakes, Minnesota reported a restatement for the change in the accounting principle (see Note 19). Our auditors' opinion was not modified with respect to the restatement. 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. 10 Honorable Mayor and Members of the City Council City of Lino Lakes Other Information (Continued) The combining fund statements, special revenue fund — program recreation schedule of revenues, expenditures, and changes in fund balance — budget and actual, the combining schedule of indebtedness, schedule of deferred tax levies, and the debt 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, special revenue fund — program recreation schedule of revenues, expenditures, and changes in fund balance — budget and actual, the combining schedule of indebtedness, schedule of deferred tax levies, and the debt service payments to maturity — all bonds schedule are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section, schedule of insurance in force, schedule of taxable valuations, tax levies, and tax rates, and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 16, 2016, on our consideration of the City of 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. VIA CliftonLarsonAllen LLP Minneapolis, Minnesota May 16, 2016 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the fiscal year ended December 31, 2015. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages 3-7 of this report. FINANCIAL HIGHLIGHTS • The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year by $84,554,618 (net position). Of this amount $28,560,750 (unrestricted net position) may be used to meet the City's ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. • The City's total net position decreased by $5,624,550 primarily due to annual depreciation of capital assets and the restatement of net position related to the adoption of the pension standards. • As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balance of $20,056,015, a decrease of $2,486,348 in comparison with the prior year primarily due to a decrease in the fund balance of Capital Projects, offset by an increase in the General Fund fund balance. Approximately 10% of this amount, or $1,910,432, is available for spending at the City's discretion (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance for the general fund was $5,725,736, or 58% of total general fund expenditures and other financing uses. • The City issued Equipment Certificates, EDA Lease Revenue Bonds to finance the construction of Fire House #2, and General Obligation Bonds to finance street reconstruction in the Shehandoah Area, as well as, improvements to Birch Street and the related sanitary and water main improvements relative to the construction of the City's new fire hall. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic financial statements. The City of Lino Lakes' basic financial statements comprise three components: 1. Government -wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements The government -wide financial statements are designed to provide readers with a broad overview of the City of Lino Lakes' finances, in a manner similar to private - sector business. The statement of net position presents information on all of the City of Lino Lakes' assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Lino Lakes is improving or deteriorating. The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences and OPEB liabilities). 12 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Government -wide financial statements (Continued) Both of the government -wide financial statements distinguish functions of the City of Lino Lakes that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Lino Lakes include general government, public safety, public services, parks, recreation and forestry, conservation of natural resources and community development. The business -type activities of the City of Lino Lakes include a water utility and sewer utility. The government -wide financial statements can be found on pages 22-24 of this report. Fund financial statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Lino Lakes, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Lino Lakes can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-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-seven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund, Improvement Note 2009F fund, Area and Unit Charge fund, and 2015 Street Reconstruction fund all of which are considered to be major funds. Data from the other forty-two governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these 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, 2015 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 35-65 of this report. Other information — The combining statements and schedules referred to earlier in conjunction with nonmajor governmental funds can be found on pages 76-91 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net position may serve over time as a useful indicator of a government's financial position. The City of Lino Lakes' assets exceeded liabilities by $84,554,618 at the close of the most recent fiscal year, a decrease of $5,624,550 from the previous year. This decrease is primarily due annual depreciation of capital assets. The largest portion of the City of Lino Lakes' net position (56%) 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, 2015 and 2014 are as follows: Of the remaining balance of the City of Lino Lakes' net position, restricted net position (10%) are to be used for activities restricted by law (special revenue funds), debt service requirements and a nonexpendable environmental fund. Unrestricted net position (34%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 Governmental Activities Business -Type Activities Total 2015 2014 2015 2014 2015 2014 Current and Other Assets $ 32,222,786 $ 32,904,991 $ 14,881,531 $ 14,029,608 $ 47,104,317 $ 46,934,599 Capital Assets 41,228,037 36,212,984 29,127,829 27,556,022 70,355,866 63,769,006 Total Assets 73,450,823 69,117,975 44,009,360 41,585,630 117,460,183 110,703,605 Deferred outflows of resources 985,081 - 11,660 - 996,741 - Noncurrent Liabilities Outstanding 27,144,998 19,479,195 149,386 52,790 27,294,384 19,531,985 Other Liabilities 5,900,707 903,912 63,771 88,540 5,964,478 992,452 Total Liabilities 33,045,705 20,383,107 213,157 141,330 33,258,862 20,524,437 Deferred inflows of resources 636,040 - 7,404 - 643,444 - Net Position: Net Investment in Capital Assets 18,230,746 19,540,807 29,127,829 27,556,022 47,358,575 47,096,829 Restricted 8,635,293 8,666,357 - - 8,635,293 8,666,357 Unrestricted 13,888,120 20,527,704 14,672,630 13,888,278 28,560,750 34,415,982 Total Net Position $ 40,754,159 $ 48,734,868 $ 43,800,459 $ 41,444,300 $ 84,554,618 $ 90,179,168 Of the remaining balance of the City of Lino Lakes' net position, restricted net position (10%) are to be used for activities restricted by law (special revenue funds), debt service requirements and a nonexpendable environmental fund. Unrestricted net position (34%) may be used to meet the government's ongoing obligations to citizens and creditors. 14 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) At the end of the current fiscal year, the City of 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 $7,980,709. The cumulative effect of the application of GASB 68 as well as increases in expenses for public safety and public services activities account for this reduction for 2015. Business -type activities Business -type activities increased the City of Lino Lakes' net position by $2,356,159. Infrastructure additions by the city and developers, offset partially by increased depreciation expense due to a change in accounting estimate provided for this increased in 2015. Condensed statements of revenues, expenses, and changes in net position highlights are as follows for the years ended December 31, 2015 and 2014: 15 Governmental Activities Business -Type Activities Total 2015 2014 2015 2014 2015 2014 REVENUES Program Revenues: Charges for Services $ 1,621,832 $ 1,529,040 $ 2,636,469 $ 2,529,524 $ 4,258,301 $ 4,058,564 Operating Grants and Contributions 526,107 840,676 263,024 - 789,131 840,676 Capital Grants and Contributions 1,176,732 335,733 3,035,031 1,035 4,211,763 336,768 General Revenues: Property Taxes 9,067,390 8,612,016 - - 9,067,390 8,612,016 Franchise Taxes 101,040 124,292 101,040 124,292 Other Taxes 74,806 70,578 74,806 70,578 Contributions Not Restricted to Specific Programs 5,363 4,443 - - 5,363 4,443 Unrestricted Investment Earnings 163,825 114,483 81,084 96,213 244,909 210,696 Change in Market Value (50,864) 151,212 (29,917) 58,255 (80,781) 209,467 Gain on Disposal of Capital Assets 17,836 1,727 - 17,836 1,727 Total Revenues 12,704,067 11,784,200 5,985,691 2,685,027 18,689,758 14,469,227 EXPENSES General Government 2,016,351 2,036,550 - - 2,016,351 2,036,550 Public Safety 5,135,865 4,107,759 5,135,865 4,107,759 Public Service 6,822,972 4,786,121 6,822,972 4,786,121 Parks, Recreation and Forestry 1,148,740 1,093,909 1,148,740 1,093,909 Conservation of Natural Resources 186,111 159,649 186,111 159,649 Community Development 432,268 407,448 432,268 407,448 Interest on Long -Term Debt 632,876 618,680 632,876 618,680 Water - - 1,394,897 965,641 1,394,897 965,641 Sewer - - 2,089,842 1,628,258 2,089,842 1,628,258 Total Expenses 16,375,183 13,210,116 3,484,739 2,593,899 19,859,922 15,804,015 CHANGE IN NET POSITION BEFORE TRANSFERS (3,671,116) (1,425,916) 2,500,952 91,128 (1,170,164) (1,334,788) Transfers 66,834 69,294 (66,834) (69,294) CHANGE IN NET POSITION (3,604,282) (1,356,622) 2,434,118 21,834 (1,170,164) (1,334,788) Net Position - Beginning of Year 48,734,868 50,091,490 41,444,300 41,422,466 90,179,168 91,513,956 Prior Period Adjustment (4,376,427) - (77,959) - (4,454,386) - Net Assets - Beginning of Year, As Restated 44,358,441 50,091,490 41,366,341 41,422,466 85,724,782 91,513,956 NET POSITION - END OF YEAR $ 40,754,159 $ 48,734,868 $ 43,800,459 $ 41,444,300 $ 84,554,618 $ 90,179,168 15 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 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 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $ 2,000,000 $1,000,000 Revenues by Source — Governmental Activities Unrestricted A a�e�,A e a 5 of oJ�`�� Fra nchisetaxes 1% services 1% 13% ` c 4% 0111oeye \mow Q cye Property taxes Lo Revenues by Source — Governmental Activities 16 s Expenses ■ Revenues Unrestricted investment Other earnings 1% Chargesfor Fra nchisetaxes 1% services 1% 13% Opera ti ng grants and contributions 4% Capital grants and contributions 9% Property taxes 71% 16 s Expenses ■ Revenues CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 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 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Water Sewer Revenues by Source — Business -type Activities nthpr Chargesfor services 98% 17 ■ Expenses ■ Revenues CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental funds — The focus of the City of Lino Lakes' governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lino Lakes' financing requirements. GASB Statement 54, divides fund balances into five categories: nonspendable, restricted, committed, assigned and unassigned. Definitions of these categories can be found in Note 1.Q in the Notes to the Financial Statements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for unrestricted spending at the end of the fiscal year. Approximately 10% of the total fund balance amount, or $1,910,432, constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is not available for new spending because it is restricted or has already been committed or assigned for other purposes. As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balances of $20,056,015, a decrease of $2,486,348, or 11 %, from the previous year. This decrease is primarily due to a decrease in the fund balance of Capital Projects, offset by an increase in the General Fund fund balance. The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal year, unassigned fund balance of the general fund stood at $5,725,736, while the total fund balance was $5,946,413. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund balance and total fund balance to total fund expenditures and financing uses. Unassigned fund balance represents 58% of total general fund expenditures and other financing uses, while total fund balance represents 61 % of that same amount. The fund balance of the City of Lino Lakes' general fund increased by $639,878 during the current fiscal year, while the City budget anticipated the use of $170,000 of the general fund's fund balance. Overall, signs of an economic recovery are being seen with increased building and development activities taking place which resulted in increased permit revenues for the year. In addition, reduced expenditures, primarily for personal services through vacant positions, fuel costs, and contractual services helped to increase the year end fund balance. Overall, the general fund's revenues were within 1 % of the amended budget, while expenditures and transfers were 4% below amended budget levels. The G.O. improvement bonds 2005A fund has a total fund deficit of ($2,340,172). This fund is related to the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and delinquency in the collection of special assessments dedicated to this issue caused a significant decrease in this fund. The use of tax increments from TIF District 1-10 and an interfund loan from the Capital Improvements fund has aided in the payment of debt service for this issue. The Improvement Note 2009F fund, to service the debt issued to Anoka County as the City's financial commitment for the 1-35E interchange project, ended the year with a fund balance of $7,384, a decrease of $27,515. This note, which was originally in the amount of $4,260,000, was reduced in 2011 to $3,695,000 to reflect cost savings during the contruction of this project. The outstanding balance as of the end of 2015 is $1,720,000. The Area and Unit Charge fund has a total fund balance of $4,422,605, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $38,928, due in large part to the collection of special assessments and charges for services, which were greater than the expenditures and transfers out. The 2015 Street Reconstruction fund has a total fund deficit of ($18,226). The fund balance during the current year increased by $14,045 due to the proceeds from bond issuance exceeding the expenditures incurred related to the Shenandoah Area Street Improvement project. 18 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Proprietary funds — The City of Lino Lakes' proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The water fund has total net position at year-end of $20,401,628, of which $5,822,834 is unrestricted. The increase in net position of $1,579,872 was primarily due to capital contributions, partially offset by a net operating loss. Total net position in the sewer fund at the end of 2015 was $23,398,831, of which $8,849,796 was unrestricted. The increase in net position of $854,246 was primarily due to capital contributions, partially offset by a net operating loss for the year. The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer rates were adjusted by 2% and 3%, respectively, in 2015. A review of utility rates is planned for 2016. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting increases in business license revenue, building permit revenue, MSA maintenance aid, lease revenues and SCORE grants; reductions in police revenues and fines and forfeits; and reallocating resources within the original budget. The final amended budget is $148,650 greater than the original adopted budget. Revenues were $51,277 over budget for the year. Fiscal disparities revenues came in under budget by $178,439. This variance was more than offset by greater than anticipated license and permit revenues as well as intergovernmental state aid revenues. Expenditures came in under budget by $374,464 due to many factors including lower than expected personal services costs from vacant positions. Fuel costs were much lower than anticipated and spending on contractual services was lower overall from budgeted levels primarly due to contracted storm system maintenance that was delayed in 2015. There were also transfers from the general fund of $590,245. This resulted in a net fund balance increase of $639,878 for the fiscal year, compared to the planned reduction of $170,000. 19 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business - type activities as of December 31, 2015, is $70,355,866. This investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and infrastructure. This represents an increase in the City of Lino Lakes' investment in capital assets of approximately 10%. Developer lead infrastructure additions for 2015 include NorthPointe 1St Addition as well as Saddle Club 1St Addition. The City completed construction of Well No. 6, while the pump house is still pending completion. Also sitting in construction in progress and pending final completion are, the Shenandoah Area Street Improvements, the construction of Fire Station #2, and the Birch Street turn lanes and infrastructure improvements. Total 2015 $ 3,275,859 9,098,446 2,802,413 133,963 1,141,371 1,262,413 193,122 52,448,279 $ 70,355,866 2014 $ 3,275,859 808,093 3,116,839 364,999 1,170,030 547,414 167,804 54,317,967 $ 63,769,005 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 48-49. Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $24,611,250. Of this amount $16,406,250 comprises tax supported debt and $6,485,000 is special assessment debt. All outstanding debt carries the general obligation backing for which the City is liable in the event of default by the property owners subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its share of the cost of the 1-35E/County Road 14 Interchange project in the amount of $1,720,000. G.O. Bonds G.O. Special Assessment Bonds Note Payable - Anoka County Governmental Activities Business -Type Activities Total 2015 2014 2015 2014 2015 2014 $ 16,406,250 $ 9,231,000 $ - $ $ 16,406,250 $ 9,231,000 6,485,000 7,445,000 1,720,000 2,080,000 6,485,000 7,445,000 1,720,000 2,080,000 Total Outstanding Debt $ 24,611,250 $ 18,756,000 $ - $ - $ 24,611,250 $ 18,756,000 The City of Lino Lakes' total bonded debt increased by $6,215,250 (37.3%) during the current fiscal year. The key factors for the change include the issuance of $198,250 in 2015A Equipment Certificates, $963,000 in 2015B Certificates, $3,095,000 of General Obligation Bonds to finance street reconstruction in the Shenandoah Area and public infrastructure improvements related of the construction of Fire Station #2, and $4,350,000 in EDA Lease Revenue Bonds to finance the construction of Fire Station #2 in the City of Lino Lakes. Principal in the amount of $2,391,000 was retired during the year. Additional information on the City's long-term debt can be found in the notes to the financial statements on pages 50-52. 20 Capital Assets at Year -End (Net of Accumulated Depreciation) Governmental Activities Business -Type Activities 2015 2014 2015 2014 Land $ 3,275,859 $ 3,275,859 $ - $ - Construction in Progress 7,268,375 808,093 1,830,071 Buildings 2,802,413 3,116,839 - Office Equipment and Furniture 133,963 364,999 - Vehicles 1,141,371 1,170,030 - - Machinery and Shop Equipment 1,109,527 336,387 152,886 211,027 Other Equipment 193,122 167,804 - - Infrastructure 25,303,407 26,972,973 27,144,872 27,344,994 Capital Assets, Net $ 41,228,037 $ 36,212,984 $ 29,127,829 $ 27,556,021 Total 2015 $ 3,275,859 9,098,446 2,802,413 133,963 1,141,371 1,262,413 193,122 52,448,279 $ 70,355,866 2014 $ 3,275,859 808,093 3,116,839 364,999 1,170,030 547,414 167,804 54,317,967 $ 63,769,005 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 48-49. Long-term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $24,611,250. Of this amount $16,406,250 comprises tax supported debt and $6,485,000 is special assessment debt. All outstanding debt carries the general obligation backing for which the City is liable in the event of default by the property owners subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, the City carries a note to Anoka County for its share of the cost of the 1-35E/County Road 14 Interchange project in the amount of $1,720,000. G.O. Bonds G.O. Special Assessment Bonds Note Payable - Anoka County Governmental Activities Business -Type Activities Total 2015 2014 2015 2014 2015 2014 $ 16,406,250 $ 9,231,000 $ - $ $ 16,406,250 $ 9,231,000 6,485,000 7,445,000 1,720,000 2,080,000 6,485,000 7,445,000 1,720,000 2,080,000 Total Outstanding Debt $ 24,611,250 $ 18,756,000 $ - $ - $ 24,611,250 $ 18,756,000 The City of Lino Lakes' total bonded debt increased by $6,215,250 (37.3%) during the current fiscal year. The key factors for the change include the issuance of $198,250 in 2015A Equipment Certificates, $963,000 in 2015B Certificates, $3,095,000 of General Obligation Bonds to finance street reconstruction in the Shenandoah Area and public infrastructure improvements related of the construction of Fire Station #2, and $4,350,000 in EDA Lease Revenue Bonds to finance the construction of Fire Station #2 in the City of Lino Lakes. Principal in the amount of $2,391,000 was retired during the year. Additional information on the City's long-term debt can be found in the notes to the financial statements on pages 50-52. 20 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2015 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • The unemployment rate for the City of Lino Lakes at year-end is 3.3%, which is a great improvement from a rate of 4.5% in 2013. This is slightly lower than the state's average unemployment rate of 3.7% and significantly lower than the national average of 5.0% at the end of 2015. • Residential growth in the City has continued to be significantly below the rates of the mid 2000's due to the general residential real estate market weakness, with about half of the number of new home permits issued in 2015 as in 2007, and less than 76% of new home permits issued in 2005. This is an improvement over recent years. Recently increased building and development activities are signalling a recovery of the housing market. Property values of the existing tax base are expected to increase slightly and will continue to have an impact on the City's tax base for 2016. • Energy costs are expected to continue to remain steady or slightly increase over the coming months. This will have an impact on the City's budget for the coming year and thereafter. • Property tax reforms have significantly impacted state aid payments the City of Lino Lakes receives. The City is exempted from local government aid and the state legislature has discontinued the market value homestead credit in favor of a new market value exclusion, which excludes a portion of residential homestead property value from property taxes. • The Federal Reserve Board has continued the federal funds rates at historical lows, currently between 0.25% — 0.50%, which is expected to result in reduced investment earnings. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014. 21 BASIC FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION December 31, 2015 ASSETS Cash and investments Accrued interest receivable Accounts receivable Due from other governments Internal balances Taxes receivable Special assessments receivable Long-term notes receivable Prepaid items Inventory Permanently restricted cash and investments Capital assets: Land Construction in progress Other capital assets, net of depreciation Total assets Deferred Outflows of Resources: Deferred Outflows - Pensions LIABILITIES Accounts payable Salaries payable Contracts and retainage payable Accrued interest payable Due to other governments Other accrued liabilities Net Pension Liability: Due in more than one year Non-current liabilities: Due within one year Due in more than one year Total liabilities Deferred Inflows of Resources: Deferred Inflows - Pensions NET POSITION Net Investment in Capital Assets Restricted for: Debt service - expendable Economic development Public safety Culture and recreation Environmental improvements - expendable Environmental improvements - nonexpendable Unrestricted Total net position Statement I Governmental Business -type Activities Activities Total $ 21,973,812 $ 13,879,881 $ 35,853,693 61,680 - 61,680 132,531 370,984 503,515 101,048 1,594 102,642 (559,110) 559,110 - 237,384 - 237,384 9,728,587 3,310 9,731,897 225,000 - 225,000 221,854 24,630 246,484 - 42,022 42,022 100,000 - 100,000 3,275,859 - 3,275,859 7,268,375 1,830,071 9,098,446 30,683,803 27,297,758 57,981,561 73,450,823 44,009,360 117,460,183 985,081 11,660 996,741 673,470 312,028 1,354,249 338,379 1,687 4,868,844 3,220,894 22,276,154 33,045,705 41,175 15,456 7,140 85,202 37,584 26,600 213,157 714,645 327,484 1,354,249 338,379 1,687 7,140 4,954,046 3,258,478 22,302,754 33,258,862 636,040 7,404 643,444 18,230,746 8,196,461 225,000 76,794 13,247 23,791 100,000 13,888,120 $ 40,754,159 The accompanying notes are an integral part of these basic financial statements. 22 29,127,829 14,672,630 $ 43,800,459 47,358,575 8,196,461 225,000 76,794 13,247 23,791 100,000 28,560,750 $ 84,554,618 CITY OF LINO LAKES, MINNESOTA STATEMENT OF ACTIVITIES Year Ended December 31, 2015 Functions/Programs Expenses Governmental activities: Program Revenues Operating Capital Charges for Grants and Grants and Services Contributions Contributions General government $ 2,016,351 $ 818,468 $ 169,448 $ 33,750 Public safety 5,135,865 199,498 339,488 - Public services 6,822,972 454,845 2,500 1,142,982 Parks, recreation and forestry 1,148,740 149,021 - - Conservation of natural resources 186,111 - 3,617 - Community development 432,268 - 11,054 - Interest on long-term debt 632,876 - - - Total governmental activities 16,375,183 1,621,832 526,107 1,176,732 Business -type activities: Water 1,394,897 1,014,836 263,024 1,709,405 Sewer 2,089,842 1,621,633 - 1,325,626 Total business -type activities 3,484,739 2,636,469 263,024 3,035,031 Total $ 19,859,922 $ 4,258,301 $ 789,131 $ 4,211,763 General revenues: Taxes: Property taxes, levied for general purpose Franchise taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Change in market value Gain on disposal of capital assets Transfers Total general revenues and transfers Change in net position Net position - beginning Prior period restatement for change in accounting principle, see Note 20 Net position - beginning, as restated Net position - ending The accompanying notes are an integral part of these hasic financial statements. 23 Statement 2 Net (Expense) Revenue and Changes in Net Position Governmental Business -type 9,067,390 Activities Activities Total 74,806 - 74,806 $ (994,685) $ - $ (994,685) (4,596,879) - (4,596,879) (5,222,645) - (5,222,645) (999,719) - (999,719) (182,494) - (182,494) (421,214) - (421,214) (632,876) - (632,876) (13,050,512) - (13,050,512) (4,376,427) (77,959) (4,454,386) - 1,592,368 1,592,368 - 857,417 857,417 - 2,449,785 2,449,785 (13,050,512) 2,449,785 (10,600,727) 9,067,390 - 9,067,390 101,040 - 101,040 74,806 - 74,806 5,363 - 5,363 163,825 81,084 244,909 (50,864) (29,917) (80,781) 17,836 - 17,836 66,834 (66,834) - 9,446,230 (15,667) 9,430,563 (3,604,282) 2,434,118 (1,170,164) 48,734,868 41,444,300 90,179,168 (4,376,427) (77,959) (4,454,386) 44,358,441 41,366,341 85,724,782 $ 40,754,159 $ 43,800,459 $ 84,554,618 24 CITY OF LINO LAKES, MINNESOTA BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2015 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 Area and $ - Improvement Note Unit General Bonds 2005A 2009F Charge $ 5,827,130 $ 536,676 $ 205 $ 4,106,596 61,680 - - - 106,208 - - 25,907 99,933 - - - 98,771 - - - 106,481 - 4,504 Deferred inflows of resources: 6,836 - 422 7,689 145 5,561,118 2,817,877 881,484 - - 7,179 8,659 220,677 - - - - - - 285,947 $ 6,527,861 $ 6,097,794 $ 2,825,683 $ 5,316,282 Interfund payable $ - $ 2,876,648 $ - $ - Accounts payable 160,411 200 - 4,504 Salaries payable 311,276 - - - Contracts and retainage payable 2,322 - - - Due to other governmental units 1,687 - - - Advances from other funds - - - - Total liabilities 475,696 2,876,848 - 4,504 Deferred inflows of resources: Unavailable resources 105,752 5,561,118 2,818,299 889,173 Fund balances: Nonspendable 220,677 - - - Restricted - - 7,384 - Committed - - - - Assigned - - - 4,422,605 Unassigned 5,725,736 (2,340,172) - - Total fund balances 5,946,413 (2,340,172) 7,384 4,422,605 Total liabilities, deferred inflows of resources and fixed balances $ 6,527,861 $ 6,097,794 $ 2,825,683 $ 5,316,282 The accompanying notes are an integral part of these basic financial statements 25 Statement 3 2015 Other Total Street Governmental Governmental Reconstruction Funds Funds $ 242,579 $ 11,260,626 $ 21,973,812 - - 61,680 - 416 132,531 - 1,115 101,048 - 3,660,455 3,660,455 15,062 113,833 16,896 123,377 174 174 - 12,018 26,965 - 423,741 9,684,365 - 1,419 17,257 - 225,000 225,000 - 1,177 221,854 - 100,000 100,000 - - 285,947 $ 242,579 $ 15,718,099 $ 36,728,298 $ - $ 1,342,917 $ 4,219,565 1,885 506,470 673,470 - 752 312,028 258,920 1,093,007 1,354,249 - - 1,687 - 285,947 285,947 260,805 3,229,093 6,846,946 - 450,995 9,825,337 - 101,177 321,854 - 2,630,254 2,637,638 - 163,239 163,239 - 10,600,247 15,022,852 (18,226) (1,456,906) 1,910,432 (18,226) 12,038,011 20,056,015 $ 242,579 $ 15,718,099 $ 36,728,298 26 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION December 31, 2015 Statement 4 Total Fund Balances for Governmental Funds $ 20,056,015 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 Construction in Progress 7,268,375 Buildings, net of accumulated depreciation 2,802,413 Office equipment and furniture, net of accumulated depreciation 133,963 Vehicles, net of accumulated depreciation 1,141,371 Machinery and shop equipment, net of accumulated depreciation 1,109,527 Other equipment, net of accumulated depreciation 193,122 Infrastructure, net of accumulated depreciation 25,303,407 41,228,037 Some of the City's property taxes and special assessments will be collected after year-end, but are not available 29,089 soon enough to pay for the current period's expenditures and, therefore, are reported as a deferred inflow of (1,720,000) resources in the governmental funds. 9,825,337 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. (338,379) The City's net pension liability and net pension asset and the related deferred inflows and deferred outflows of resources are recorded only on the Statement of Net Position. Balances at year end are: Net Pension Liability (4,868,844) Deferred Outflows of Resources - Pensions 985,081 Deferred Inflows of Resources - Pensions (636,040) (4,519,803) 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 (22,891,250) Unamortized premiums (135,130) Unamortized discounts 29,089 Notes payable (1,720,000) Other postemployment benefits (90,852) Compensated absence payable (688,905) (25,497,048) Total Net Position of Governmental Activities $ 40,754,159 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, 2015 The accompanying notes are an integral part of these basic financial statements 28 G.O. Improvement Area and Improvement Note Unit Revenue: General Bonds 2005A 2009F Charge General property taxes $ 7,489,040 $ - $ - $ - Tax increments - - - - Licenses and permits 551,202 - - - Intergovernmental 649,611 - - - Special assessments 14,008 - 34,050 464,869 Charges for services 277,423 - - 246,360 Fines and forfeits 127,803 - - - Investment earnings 27,004 1,438 - 40,612 Net increase (decrease) in fair value of investments (9,578) (1,095) - (6,564) Refunds 54,689 - - - Miscellaneous 168,952 - - - Total revenue 9,350,154 343 34,050 745,277 Expenditures: Current: General government 1,609,249 - - - Public safety 4,372,735 - - - Public works 1,135,020 - - 35,615 Parks, recreation and forestry 828,084 - - - Conservation of natural resources 186,886 - - - Community development 422,935 - - - Capital outlay: General government 4,461 - - - Public safety 36,844 - - - Public works - - - - Conservation of natural resources 4,711 - - - Debt service: Principal - 380,000 360,000 - Interest and fiscal charges - 150,560 79,565 - Bond issuance costs - - - - Total expenditures 8,600,925 530,560 439,565 35,615 Revenue over (under) expenditures 749,229 (530,217) (405,515) 709,662 Other financing sources (uses): Transfer in 480,894 683,729 378,000 - Transfer out (590,245) - - (670,734) Sale of property - - - - Issuance of debt - - - - Premium on bonds issued - - - Total other financing sources (uses) (109,351) 683,729 378,000 (670,734) Net increase (decrease) in fund balance 639,878 153,512 (27,515) 38,928 Fund balance - beginning of year 5,306,535 (2,493,684) 34,899 4,383,677 Fund balance - December 31 $ 5,946,413 $ (2,340,172) $ 7,384 $ 4,422,605 The accompanying notes are an integral part of these basic financial statements 28 Statement 5 2015 Other Total Street Governmental Governmental Reconstruction Funds Funds $ - $ 1,194,181 $ 8,683,221 - 267,286 267,286 - - 551,202 - 30,016 679,627 - 190,214 703,141 - 172,718 696,501 - - 127,803 5,979 88,464 163,497 (2,080) (31,265) (50,582) - 71,993 126,682 - 470,438 639,390 3,899 2,454,045 12,587,768 - 34,717 1,643,966 - 7,522,747 11,895,482 2,603,672 169,205 3,943,512 - 8,100 836,184 - 4,152 191,038 - - 422,935 67,932 72,393 1,161,951 1,198,795 290,158 290,158 - - 4,711 - 2,062,511 2,802,511 - 312,041 542,166 - 62,831 62,831 2,603,672 11,696,345 23,906,682 (2,599,773) (9,242,300) (11,318,914) - 1,850,348 3,392,971 - (2,075,158) (3,336,137) - 54,522 54,522 2,560,703 6,045,547 8,606,250 53,115 61,845 114,960 2,613,818 5,937,104 8,832,566 14,045 (3,305,196) (2,486,348) (32,271) 15,343,207 22,542,363 $ (18,226) $ 12,038,011 $ 20,056,015 29 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, 2015 Net Change in Fund Balances -Total Governmental Funds $ (2,486,348) 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 $ 9,680,582 Loss on disposal of capital assets (74,607) Depreciation expense (4,590,922) 5,015,053 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 (7,445,000) Issuance of equipment certificates (1,161,250) Bond premium (114,960) Repayment of bond principal 2,751,000 Change in accrued interest expense for general obligation bonds (88,511) Amortization of bond premium 8,691 Amortization of bond discount (3,595) (6,053,625) Delinquent and noncurrent property taxes and special assessments receivable will be collected subsequent to year-end, but are not available soon enough to pay for the current period's expenditures and, therefore, are not available in the governmental funds. Unavailable resources - December 31, 2014 (9,708,584) Unavailable resources - December 31, 2015 9,825,337 116,753 In the statement of activities, compensated absences and other post employment benefits are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). During fiscal year 2015, compensated absence payable and other post employment benefits payable increased. (52,739) Pension expenses in the governmental funds are measured by current year employee contributions. Pension expenses on the Statement of Activities are measured by the change in the net pension liability and the related deferred inflows and outflows or resources (143,376) Change in Net Position of Governmental Activities $ (3,604,282) 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, 2015 Assets Current assets: Cash and cash equivalents Accounts receivable Due from other governmental units Interfund receivable Due from county - special assessments Prepaid items Total current assets Non-current assets: Inventory Capital assets not being depreciated: Construction in progress Capital assets being depreciated: Buildings Equipment Water and sewer systems Total capital assets Less: allowance for depreciation Net capital assets Total noncurrent assets Total assets Deferred Outflows of Resources Total Assets and Deferred Outflows of Resources Liabilities Current liabilities: Accounts payable Salaries payable Other accrued liabilities Compensated absences payable - current portion Total current liabilities Non-current liabilities: Compensated absences payable - long term Net Pension Liability Total noncurrent liabilities Total liabilities Deferred Inflows of Resources Total Liabilities and Deferred Inflows of Resources Net position Investment in capital assets Unrestricted Total net position Total Liabilities, Deferred Inflows of Resources, and Net Position The accompanying notes are an integral part of these basic financial statements. 31 Statement 7 42,022 1,259,174 120,723 20,891,552 22,271,449 (7,692,655) 14,578,794 14,620,816 20.519.543 570,897 328,432 22,164,830 23,064,159 (8,515,124) 14,549,035 14,549,035 23.489.817 42,022 1,830,071 449,155 43,056,382 45,335,608 (16,207,779) 29,127, 829 29,169, 851 44,009,360 5,833 5,827 11,660 20,525,376 23,495,644 44,021,020 30,462 10,713 Total Water Sewer 2015 $ 5,738,284 $ 8,141,597 $ 13,879,881 151,533 219,451 370,984 - 1,594 1,594 - 559,110 559,110 1,655 1,655 3,310 7,255 17,375 24,630 5,898,727 8,940,782 14,839,509 42,022 1,259,174 120,723 20,891,552 22,271,449 (7,692,655) 14,578,794 14,620,816 20.519.543 570,897 328,432 22,164,830 23,064,159 (8,515,124) 14,549,035 14,549,035 23.489.817 42,022 1,830,071 449,155 43,056,382 45,335,608 (16,207,779) 29,127, 829 29,169, 851 44,009,360 5,833 5,827 11,660 20,525,376 23,495,644 44,021,020 30,462 10,713 41,175 7,728 7,728 15,456 7,140 - 7,140 18,792 18,792 37,584 64,122 37,233 101,355 13,300 13,300 26,600 42,622 42,580 85,202 55,922 55,880 111,802 120,044 93,113 213,157 3,704 3,700 7,404 123,748 96,813 220,561 14,578,794 5,822,834 20,401,628 $ 20,525,376 14,549,035 8,849,796 23,398,831 $ 23,495,644 29,127, 829 14,672,630 43,800,459 $ 44,021,020 CITY OF LINO LAKES, MINNESOTA Statement 8 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION - PROPRIETARY FUNDS Year Ended December 31, 2015 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: Contributions from private sources Capital contributions from primary government Transfer out Total contributions and transfers Change in net position Net position - January 1 Prior Period restatement for Implementation of GASB Standard (See Note 20) Net position - January 1, as Restated Net position - December 31 Total Water Sewer 2015 $ 972,096 $ 1,611,053 $ 2,583,149 13,260 10,580 23,840 15,128 - 15,128 14,352 - 14,352 1,014,836 1,621,633 2,636,469 204,983 209,624 414,607 136,270 29,145 165,415 117,204 128,324 245,528 - 751,648 751,648 836,772 892,427 1,729,199 84,645 41,263 125,908 15,023 37,411 52,434 1,394,897 2,089,842 3,484,739 (380,061) (468,209) (848,270) 33,166 47,918 81,084 (12,245) (17,672) (29,917) 472 473 945 21,393 30,719 52,112 (358,668) (437,490) (796,158) 263,024 142,017 405,041 1,708,933 1,183,136 2,892,069 (33,417) (33,417) (66,834) 1,938,540 1,291,736 3,230,276 1,579,872 854,246 2,434,118 18,860,755 22,583,545 41,444,300 (38,999) (38,960) (77,959) 18,821,756 22,544,585 41,366,341 $ 20,401,628 $ 23,398,831 $ 43,800,459 The accompanying notes are an integral part of these basic financial statements. 32 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended December 31, 2015 Statement 9 Noncash investing, capital, and financing activities: Capital asset contributions from governmental activities $ 1,971,957 $ 1,325,153 $ 2,892,069 The accompanying notes are an integral part of these basic financial statements. 33 Total Water Sewer 2015 Cash flows from operating activities: Cash receipts from customers $ 1,006,511 $ 1,609,702 $ 2,616,213 Cash paid to suppliers (382,585) (999,218) (1,381,803) Cash paid to employees (187,977) (199,472) (387,449) Net cash flows from operating activities 435,949 411,012 846,961 Cash flows from noncapital financing activities: Net transfers (33,417) (33,417) (66,834) Cash flows from capital and related financing activities: Collection of special assessments (160) - (160) Acquisition of capital assets (7,134) - (7,134) Net cash flows used by capital and related financing activities (7,294) - (7,294) Cash flows from investing activities: Interest on investments 20,921 30,243 51,164 Net increase in cash and cash equivalents 416,159 407,838 823,997 Cash and cash equivalents - January 1 5,322,125 7,733,759 13,055,884 Cash and cash equivalents - December 31 $ 5,738,284 $ 8,141,597 $ 13,879,881 Reconciliation of operating income to net cash from operating activities: Operating loss $ (380,061) $ (468,209) $ (848,270) Adjustments to reconcile operating income to net cash flows from operating activities: Loss on disposal of capital assets 1,295 1,985 3,280 Depreciation 836,772 892,427 1,729,199 Change in assets and liabilities: Increase in receivables (8,325) (11,931) (20,256) Decrease (Increase) in prepaid items 4,899 4,296 9,195 (Increase) in inventory (15,760) - (15,760) (Increase) in deferred outflows (5,833) (5,827) (11,660) Increase (Decrease) in voucher payables (19,877) (17,708) (37,585) Increase (Decrease) in salaries payables 9,815 3,001 12,816 Increase (Decrease) in net pension liability 3,623 3,581 7,204 Increase (Decrease) in compensated absences 5,697 5,697 11,394 Increase (Decrease) in deferred inflows 3,704 3,700 7,404 Net cash flows from operating activities $ 435,949 $ 411,012 $ 846,961 Noncash investing, capital, and financing activities: Capital asset contributions from governmental activities $ 1,971,957 $ 1,325,153 $ 2,892,069 The accompanying notes are an integral part of these basic financial statements. 33 CITY OF LINO LAKES, MINNESOTA Statement 10 STATEMENT OF NET POSITION - FIDUCIARY FUNDS - AGENCY FUNDS December 31, 2015 2015 Assets Cash and investments $ 727,635 Liabilities Deposits payable $ 727,635 The accompanying notes are an integral part of these financial statements. 34 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 governing body is substantively the same as the governing body of the City and a financial benefit or burden relationship exists between the City and the EDA. The EDA does not issue separate financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations because the members of the City Council serve as commission members and a financial benefit or burden relationship exists between the City and the HRA. The HRA has not yet incurred any financial activity. B. 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, 2015 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. 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. 2015 Street Reconstruction Fund The 2015 Street Reconstruction fund accounts for the construction and improvements to Shenandoah Street. 36 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 2. Fund Financial Statements (Continued) The City reports the following major proprietary funds: Water Fund The water fund accounts for customer water service charges that are used to finance water operating expenses. Sewer Fund The sewer fund accounts for customer sewer service charges that are used to finance sewer operating expenses. Additionally, the City reports the following fiduciary funds: Agency Funds - to account for assets held as an agent for individuals, private organizations, other governmental units, and/or other funds. The City's agency fund accounts for pass-through contractor's deposits relating to prospective developments. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. The City considers all revenues to be available if they are collected within 60 days 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, 2015 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, 2015 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. LEGAL COMPLIANCE — BUDGETS (CONTINUED) 7. A capital improvement program is reviewed periodically by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e. administration, community development, public safety, public services, and other). 9. The City Council may authorize transfers of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund in the governmental fund financial statements, and an interfand payable in the fund with the deficit, until adequate resources are received. These interfund payables are eliminated for statement of net position presentation. Investments are stated at fair value and interest earnings are accrued at year-end. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. Permanently restricted cash and investments represents the principal and earnings portion of resources received that must be retained in a permanent fund. Only earnings from these funds may be used for purposes that support environmental maintenance and improvements. G. PROPERTY TAX CREDITS Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property. The State remits these credits through installments each year. These credits are recognized as revenue by the City at the time of collection. 39 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 2015 totaled $1,221,907. 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, 2015 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 interfund loans are reported as "advances to/from other funds." Advances between funds are classified as nonspendable fund balance account in the general fund to indicate they are not available for appropriation and are not expendable from available financial resources. L. 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. 41 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 amortized over the life of the bonds using the straight-line method. Bond issuance costs are reported as an expense in the period they are incurred. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. O. NET PENSION LIABILITY For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to/deductions from PERA's fiduciary net position have been determined on the same basis as they are reported by PERA except that PERA's fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate section represents a consumption of net position that applies to a future period. The City will not recognize the related outflow until a future event occurs. More detailed information about pension related deferred outflows of resources can be found in Note 6 to the financial statements. The City's statement of net position, governmental fund, and proprietary fund financial statements report a separate section for deferred inflows of resources. This separate financial statement element reflects an increase in net position of fund balance that applies to a future period. The City will not recognize the related revenue until a future event occurs. The City has two types of items which occurs relating to revenue recognition: The first type of deferred inflow of resources occurs because governmental fund revenues are not recognized until available (collected not late than 60 days after the end of the City's year) under the modified accrual basis of accounting. The second type relates to pension liabilities as described in Note 6 to the financial statements. 42 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. 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 passed a resolution authorizing the Finance Director to assign fund balances and their intended uses. Unassigned — is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the City's policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts. The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund balance range of 40% - 50% of General Fund operating expenditures. The fund equity balances in the proprietary funds have been classified into two broad categories: • Net position — net investment in capital assets • Unrestricted net position Net position represents the differences between assets and deferred outflows of resources and liabilities and deferred inflows of resources in the government -wide financial statements. Net position — net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the ouststanding balance of any long-term debt used to build or acquire capital assets. Net position is reported as restricted in government -wide financial statements when there are limitations on their use thorugh external restrictions imposed by creditors, grantors, or laws or regulations of other governments. R. INTERFUND TRANSACTIONS Interfund services provided and used are accounted 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. 43 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 S. CHANGE IN ACCOUNTING ESTIMATE For fiscal year 2015, the City had a change in accounting estimate for a change in depreciation methodology. Prior to 2015, the City did not take any depreciation for capital assets in the year of acquisition. Beginning January 1, 2015, the City started depreciating assets in the month they are placed in service. T. CHANGE IN ACCOUNTING PRINCIPLE During the fiscal year ended December 31, 2015, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and the related GASB No. 71, Pensions Transition for Contributions Made Subsequent to the Measurement Date -an amendment of GASB No. 68. The primary objective of these Statements is to improve accounting and financial reporting by state and local governments for pensions. They also improve information provided by state and local governmental employers about financial support for pensions that is provided by other entities. See Note 19 for more detail of the effect of this change in accounting principle on the financial statements. Note 2 DEPOSITS AND INVESTMENTS Components of Cash and Investments Cash and investments at year-end consist of the following: 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 Cash and investments are presented in the financial statements as follows: Deposits Investments Cash on Hand Total A. DEPOSITS $ 35,853,693 100,000 727,635 $ 36,681,328 $ 2,182,827 34,497,681 820 $ 36,681,328 The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net position and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council. Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial credit risk but 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, 2015 were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. 44 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. INVESTMENTS The City may also invest idle funds as authorized by Minnesota Statutes as follows: • Direct obligations or obligations guaranteed by the United States or its agencies • Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit 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: 45 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) B. INVESTMENTS (CONTINUED) Type Minnesota Municipal Money Market Trust Fund Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assn. Negotiable CDs Municipal Bonds Mutual Fund Total 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 I I8A, 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: 12 Months 13 to 24 25 to 60 Total or Less Months Months $ 7,404,834 $ 7,404,834 $ - $ - 297,861 - - 297,861 803,533 1,295,274 - 803,533 1,295,274 - - 1,295,274 14,614,686 7,791,744 2,170,544 4,652,398 9,822,152 4,583,200 2,026,502 3,212,450 259,341 259,341 - - $ 34,497,681 $ 20,039,119 $ 4,197,046 $ 10,261,516 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 I I8A, 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. 46 Credit Type Quality Rating Amount Minnesota Municipal Money Market Trust Fund Aa2 $ 7,404,834 Federal Home Loan Bank Aaa/AA+ 297,861 Federal Home Loan Mortgage Corp. Aaa/AA+ 803,533 Federal National Mortgage Assn. Aaa/AA+ 1,295,274 Negotiable CDs Not Rated 14,614,686 Municipal Bonds A-Aaa 9,822,152 Mutual Fund Not Rated 259,341 Total $ 34,497,681 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. 46 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 Citibank SDA Note 3 CAPITAL ASSETS Amount $ 2,939,195 Capital asset activity for the year ended December 31, 2015 was as follows: Percentage 8.52% Beginning Balance Increases Decreases Transfers Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 3,275,859 $ - $ - $ Construction in Progress 808,093 7,268,375 (808,093) Total Capital Assets, Not Being Depreciated 4,083,952 7,268,375 (808,093) Capital Assets, Being Depreciated: Buildings Office Equipment and Furniture Vehicles Machinery and Shop Equipment Other Equipment Infrastructure Total Capital Assets, Being Depreciated Accumulated Depreciation for: Buildings Office Equipment and Furniture Vehicles Machinery and Shop Equipment Other Equipment Infrastructure Total Accumulated Depreciation Total Capital Assets, Being Depreciated, Net Governmental Activities Capital Assets, Net Ending 1111- A $ 3,275,859 7,268,375 10,544,234 6,765,619 - 6,765,619 1,398,722 108,321 (167,991) (702,619) 636,433 2,891,461 526,556 (270,155) (24,966) 3,122,896 960,720 684,076 (91,619) 702,619 2,255,796 952,447 28,384 24,966 1,005,797 78,607,804 1,872,963 - 80,480,767 91,576,773 3,220,300 (529,765) 94,267,308 (3,648,780) (314,426) - - (3,963,206) (1,033,723) (35,760) 139,878 427,135 (502,470) (1,721,431) (534,894) 266,735 8,065 (1,981,525) (624,333) (143,346) 48,545 (427,135) (1,146,269) (784,643) (19,967) - (8,065) (812,675) (51,634,831) (3,542,529) -(55,177,360) (59,447,741) (4,590,922) 455,158 - (63,583,505) 32,129,032 (1,370,622) (74,607) - 30,683,803 $ 36,212,984 $ 5,897,753 $ (882,700) $ - $ 41,228,037 47 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 3 CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Transfers Balance Business -Type Activities: Capital Assets, Not Being Depreciated Construction in Progress $ $ 1,830,071 $ $ $ 1,830,071 Total Capital Assets, Not Being Depreciated 1,830,071 - - 1,830,071 Capital Assets, Being Depreciated: Buildings 48,690 - - (48,690) - Machinery and Shop Equipment 545,511 15,103 (66,174) (45,285) 449,155 Water and Sewer Lines 41,495,364 1,467,043 93,975 43,056,382 Total Capital Assets, Being Depreciated 42,089,565 1,482,146 (66,174) - 43,505,537 Accumulated Depreciation for: Buildings (48,690) - - 48,690 - Machinery and Shop Equipment (334,484) (27,300) 54,964 10,551 (296,269) Water and Sewer Lines (14,150,370) (1,701,899) - (59,241) (15,911,510) Total Accumulated Depreciation (14,533,544) (1,729,199) 54,964 (16,207,779) Total Capital Assets, Being Depreciated, Net 27,556,021 (247,053) (11,210) 27,297,758 Business -Type Capital Assets, Net $ 27,556,021 $ 1,583,018 $ (11,210) $ $ 29,127,829 Depreciation expense charged to functions/programs of the primary government as follows: Governmental Activities: General Government Public Safety Public Services Parks, Recreation and Forestry Conservation of Natural Resources Community Development Total Depreciation Expense, Governmental Activities Business -type Activities: Water Sewer Total Depreciation Expense, Governmental Activities 48 $ 334,252 309,057 3,721,888 224,712 512 cm $ 4,590,922 $ 836,772 892,427 $ 1,729,199 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 4 CITY INDEBTEDNESS City indebtedness at December 31, 2015 is composed of the following: Final Issue Maturity Interest Original Payable Date Date Rate Issue 12/31/2015 Governmental Activities: General Obligation Bonds: 2013A Equipment Certificates 2/1/2013 12/31/2015 1.00% $ 193,000 $ 65,000 2014A Equipment Certificates 2/15/2014 12/31/2017 1.00% 495,000 335,000 2015A Equipment Certificates 2/1/2015 12/31/2018 1.00% 198,250 198,250 2015B Equipment Certificates 8/25/2015 12/31/2020 1.50% 963,000 963,000 G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00%-4.30% 2,460,000 1,925,000 G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00%-4.15% 570,000 135,000 G.O. CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 1,210,000 G.O. Tax Increment Financing Bonds, Series 2007A 7/15/2007 2/1/2024 4.00%-4.125% 4,215,000 2,405,000 G.O. Refunding Bonds, Series 2012A 11/15/2012 2/1/2024 1.00%-2.00% 2,015,000 1,725,000 G.0 Bonds 2015A 8/1/2015 2/1/2031 2.00%-3.00% 3,095,000 3,095,000 EDA Leased Revenue Bonds 2015B 10/1/2015 4/1/2036 2.00%-3.00% 4,350,000 4,350,000 Total General Obligation Bonds 21,664,250 16,406,250 Special Assessment Bonds: G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35%-5.15% 5,550,000 2,760,000 G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75%-5.00% 3,755,000 - G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A 7/9/2010 2/1/2020 2.00%-3.00% 1,000,000 525,000 G.O. Improvement Bonds, Series 2013A 7/15/2013 2/1/2024 1.25%-4.00% 615,000 555,000 G.O. Improvement Bonds, Series 2014A 11/20/2014 2/1/2026 0.40%-2.30% 2,645,000 2,645,000 Total Special Assessment Bonds 13,815,000 6,485,000 Total Bonds 35,479,250 22,891,250 Note Payable - Anoka County - 2009F 8/1/2009 8/1/2024 4.00%-3.70% 4,260,000 1,720,000 Unamortized Bond Discounts (45,490) (29,089) Unamortized Bond Premiums 202,370 135,130 Compensated Absences Payable N/A 688,905 Other Post Employment Benefit Plan N/A 90,852 Total Governmental Activities $ 39,896,130 $ 25,497,048 Business -Type Activities: Compensated Absences Payable N/A $ 64,184 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 4 CITY INDEBTEDNESS (CONTINUED) The following is a schedule of changes in City indebtedness for the year ended December 31, 2015: 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 12/31/2014 Issues Payments 12/31/2015 One Year Principal Interest Years Ending December 31, $ 9,231,000 $ 8,606,250 $ 1,431,000 $ 16,406,250 $ 1,699,000 7,445,000 - 960,000 6,485,000 665,000 (32,684) - (3,595) (29,089) - 28,861 114,960 8,691 135,130 - 2,080,000 - 360,000 1,720,000 375,000 635,995 595,793 542,883 688,905 481,894 91,023 28,813 28,984 90,852 - 19,479,195 9,345,816 3,327,963 25,497,048 3,220,894 52,790 45,913 34,519 64,184 37,584 $ 19,531,985 $ 9,391,729 $ 3,362,482 $ 25,561,232 $ 3,258,478 All long-term bonded indebtedness outstanding at December 31, 2015 is backed by the full faith and credit of the City, including special assessment bond issues. Minimum annual principal and interest payments required to retire long-term debt, not including compensated absences payable are as follows. Description and Restrictions of Long -Term Debt General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. Note Payable - Anoka County 2009F - This note was used to finance improvement projects at the I -15E and County State Highway 14 interchange and will be repaid primarily with special assessments levied on the properties benefiting from the improvements. 50 Bonded Debt Notes Payable Total Principal Interest Principal Interest Principal Interest Years Ending December 31, 2016 $ 2,364,000 $ 716,762 $ 375,000 $ 70,165 $ 2,739,000 $ 786,927 2017 3,028,000 572,663 390,000 60,165 3,418,000 632,828 2018 2,656,250 491,586 405,000 49,565 3,061,250 541,151 2019 2,242,000 421,678 420,000 42,415 2,662,000 464,093 2020 2,251,000 356,440 130,000 13,360 2,381,000 369,800 2021-2025 6,365,000 1,002,948 - - 6,365,000 1,002,948 2026-2030 2,185,000 483,021 2,185,000 483,021 2031-2035 1,510,000 191,444 1,510,000 191,444 2036 290,000 5,800 290,000 5,800 Total $ 22,891,250 $ 4,242,342 $ 1,720,000 $ 235,670 $ 24,611,250 $ 4,478,012 Description and Restrictions of Long -Term Debt General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds - These bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. Note Payable - Anoka County 2009F - This note was used to finance improvement projects at the I -15E and County State Highway 14 interchange and will be repaid primarily with special assessments levied on the properties benefiting from the improvements. 50 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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 August 2015, the City issued General Obligation Bonds of $3,095,000 to fund various street improvements within the City. The bond was issued at a rate of 2-3%. The bonds will mature in 2031. In October 2015, the City issued EDA Leased Revenue bonds of $4,350,000 to fund the construction of a fire station. The bond was issued at a rate of 2-3%. The bonds will mature in 2036. The liabilities for compensated absences, other post -employment benefits, and net pension in the governmental activities will be liquidated by the general fund. The liabilities for Proprietary Fund employees are included in the accrued liabilities of those funds. 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 2015 is computed as follows: 51 12/31/2015 Market Value $ 1,694,366,064 Applicable Percentage 3.0% Debt Limit 50,830,982 Amount of Debt Applicable to Debt Limit: Total Bonded Debt 22,891,250 Less: Special Assessment Bonds (6,485,000) Tax Abatement Bonds (1,925,000) Utility Revenue Bonds (135,000) Tax Increment Financing Bonds (2,405,000) Total Debt Applicable to Debt Limit 11,941,250 Legal Debt Margin $ 38,889,732 51 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS PLAN DESCRIPTION The City participates in the following cost-sharing multiple -employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401 (a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases. The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member's highest average salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step - rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first ten 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 members hired prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. 52 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS (CONTINUED) A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS (CONTINUED) 1. GERF Benefits (Continued) For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. Disability benefits are available for vested members and are based upon years of service and average high -five salary. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated basis from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.50%, respectively, of their annual covered salary in calendar year 2015. The City was required to contribute 11.78% of pay for Basic Plan members and 7.50% for Coordinated Plan members in calendar year 2015. The City contributions to the GERF for the year ended December 31, 2015, were $182,102. The City contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2015. The City was required to contribute 16.20% of pay for PEPFF members in calendar year 2015. The City contributions to the PEPFF for the year ended December 31, 2015, were $393,560. The City contributions were equal to the required contributions as set by state statute. PENSION COSTS 1. GERF Pension Costs At December 31, 2015, the City reported a liability of $2,124,833 for its proportionate share of the GERF's net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2015, the City's proportion share was .00410 % which was a decrease of .0022% from its proportion measured as of June 30, 2014. For the year ended December 31, 2015, the City recognized pension expense of $257,399 for its proportionate share of the GERF's pension expense. 53 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS (CONTINUED) A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS (CONTINUED) PENSION COSTS (CONTINUED) 1. GERF Pension Costs (Continued) At December 31, 2015, the City reported its proportionate share of the GERF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Earnings on Pension Plan Investments Changes in Proportion and Differences Between District Contributions and Proportionate Share of Contributions City Contributions Subsequent to the Measurement Date Total Deferred Outflows Deferred Inflows of of Resources Resources 201,148 89,631 $ 290,779 107,128 77,509 $ 184,637 A total of $89,631 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30 Pension Expenses Amount 2016 $ (11,258) 2017 (11,258) 2018 (11,258) 2019 50,285 2020 - Thereafter - 2. PEPFF Pension Costs At December 31, 2015, the City reported a liability of $2,829,223 for its proportionate share of the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2015, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2014, through June 30, 2015, relative to the total employer contributions received from all of PERA's participating employers. At June 30, 2015, the City's proportion was .249% which was the same as the City's proportion measured as of June 30, 2014. 54 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS (CONTINUED) A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS (CONTINUED) PENSION COSTS (CONTINUED) 2. PEPFF Pension Costs (Continued) For the year ended December 31, 2015, the City recognized pension expense of $487,542 for its proportionate share of the PEPFF's pension expense. The City also recognized $22,410 for the year ended December 31, 2015, as pension expense (and grant revenue) for its proportionate share of the State of Minnesota's on -behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. At December 31, 2015, the City reported its proportionate share of the PEPFF's deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Description Differences Between Expected and Actual Economic Experience Changes in Actuarial Assumptions Net Difference Between Projected and Actual Investment Earnings Changes in Proportion and Differences Between District Contributions and Proportionate Share of Contributions Deferred Outflows of Resources Deferred Inflows of Resources $ 458,807 492,945 - City Contributions Subsequent to the Measurement Date 213,017 Total $ 705,962 $ 458,807 A total of $213,017 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended December 31, 2016. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30 Pension Expenses Amount 2016 $ 31,475 2017 31,475 2018 31,475 2019 31,475 2020 (91,762) Thereafter - 55 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS (CONTINUED) A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS (CONTINUED) ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions: Inflation 2.75% per year Active Member Payroll Growth 3.50%, Average, Including Inflation Investment Rate of Return 7.90%, Net of Pension Plan Investment Expense, Including Inflation Salary increases were based on a service -related table. Mortality rates for active members, retirees, survivors, and disabilitants were based on RP -2000 tables for males or females, as appropriate, with slight adjustments. Benefit increases for retirees are assumed to be 1% effective every January 1St through 2026 and 2.5% thereafter. Actuarial assumptions used in the June 30, 2015, valuation were based on the results of actuarial experience studies. The experience study in the GERF was for the period July 1, 2004, through June 30, 2008, with an update of economic assumptions in 2014. Experience studies have not been prepared for PERA's other plans, but assumptions The long-term expected rate of return on pension plan investments is 7.9%. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness of the long-term expected rate of return on a regular basis using a building-block method in which best -estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized below: Asset Class Domestic Equity International Equity Bonds Alternative Assets Cash Totals DISCOUNT RATE Target Allocation 45% 15% 18% 20% 2% 100% Long -Term Expected Real Rate of Return 5.50% 6.00% 1.45% 6.40% 0.50% The discount rate used to measure the total pension liability was 7.9%. The projection of cash flows used to determine the discount rate assumed that employee and employer contributions will be made at the rate specified in statute. Based on that assumption, each of the pension plan's fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 56 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 6 PENSION PLANS (CONTINUED) A. PUBLIC EMPLOYEES RETIREMENT ASSOCIATION (PERA) - DEFINED BENEFIT PLANS (CONTINUED) PENSION LIABILTY SENSITIVITY The following presents the City's proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate Current Discount Discount Rate Description (6.90%) Rate (7.90%) (8.90%) City's Proportionate Share of the GERF Net Pension Liability $ 3,340,992 $ 2,124,883 $ 1,120,472 City's Proportionate Share of the PEPFF Net Pension Liability $ 5,514,185 $ 2,829,223 $ 610,976 PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan's fiduciary net position is available in a separately -issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained 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. 57 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed. Note 8 STEWARDSHIP. COMPLIANCE AND ACCOUNT A. DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 2015 as follows: The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. B. EXPENDITURES IN EXCESS OF BUDGET The following is a listing of expenditure categories within the General Fund that exceed budget appropriations: General government: Administration Community development: Community Development Planning and Zoning Commission Final Fund Balance Deficit G.O. Improvement Bonds 2005A $ (2,340,172) Nonmajor Governmental Funds: $ 371,778 35E Interchange (259,166) Dedicated Parks (70,432) 21 st Ave. Extension (302,954) Tax Increment Financing 1-11 (772,648) Blackduck/Aqua Ln Watermain Ext (51,086) 2015 Street Reconstruction (18,226) Improvement Bonds 2013A (200) The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. B. EXPENDITURES IN EXCESS OF BUDGET The following is a listing of expenditure categories within the General Fund that exceed budget appropriations: General government: Administration Community development: Community Development Planning and Zoning Commission Final Budget Actual Excess $ 368,868 $ 371,778 $ (2,910) 206,424 209,457 (3,033) 114,610 123,049 (8,439) 58 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015. Liti ag tion — The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments, and litigation. As of December 31, 2015 any potential affect this may have on the City is not estimable, however it is not expected to have a material effect on the financial statements of the City. Labor Contracts — The City has various employees that are covered under labor agreements that are subject to collective bargaining. The status of labor contracts in the City is as follows: Number of Bargaining Unit Employees LELS - Patrol 18 LELS - Sergeant 49ers - Public Works AFSCME Non -unionized Employees Total Employees 15 17 64 59 Expiration Date of Current Contract December 31, 2015 December 31, 2015 December 31, 2015 December 31, 2015 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2015. Future scheduled tax levies for all bonds outstanding at December 31, 2015 totaled $18,304,907. Note 11 FUND BALANCE At December 31, 2015, the City had various fund balances restricted, committed, or assigned through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2015 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: General Fund: Prepaid Items Total General Fund G.O. Improvement Bonds 2005A: Deficit Fund Balance Improvement Bonds 2009F: Debt Service Area and Unit Charge: Advances to Other Funds Construction Projects Total Area and Unit Charge 2015 Street Reconstruction: Deficit Fund Balance Nonmajor Governmental Funds: Prepaid Items Economic Development - Loan Receivable Corpus of Permanent Fund Program Recreation Cable TV Fund Blue Heron Days Federal Narcotics State Narcotics DUI Forfeitures Debt Service Construction Projects Total Nonmajor Funds Total Fund Balances Total Nonspendable Restricted Committed Assigned Unassigned $ 5,725,736 $ - $ $ $ $ 5,725,736 220,677 220,677 - 5,946,413 220,677 5,725,736 (2,340,172) - (2,340,172) 7,384 7,384 285,947 - 285,947 4,136,658 4,136,658 4,422,605 4,422,605 (18,226) - (18,226) 224,580 - 225,000 (420) 123,791 100,000 23,791 - 84,179 1,177 - 83,002 80,237 - - 80,237 13,247 13,247 - 49,965 49,965 9,810 9,810 17,019 17,019 - 2,291,222 2,291,422 - (200) 9,143,961 - - 10,600,247 (1,456,286) 12,038,011 101,177 2,630,254 163,239 10,600,247 (1,456,906) 20,056,015 $ 321,854 $ 2,637,638 $ 163,239 $ 15,022,852 $ 1,910,432 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 2015 was $47,914. 60 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 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, 2015 are as follows: Governmental Activity: G.O. Improvement Bonds 2005A Other Nonmajor Governmental Funds Business -type Activity: Sewer Fund Receivable Payable $ - $ 2,876,648 3,660,455 1,342,917 559,110 - $ 4,219,565 $ 4,219,565 Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and from other fund and at December 31, 2015 are as follows: Interfund transfers are other financing sources and uses within the fund financial statements. The purposes of the transfers are to provide funding for capital improvement projects and capital outlay in accordance with the City's capital improvement plan. There are also transfers to and from other funds within the nonmajor governmental funds that are for closing out bond funds and moving the residual to another debt service fund. These transfers are routine and consistent with past practices. 61 Receivable Payable Governmental Activity: Area and Unit Charge $ 285,947 $ - Other Nonmajor Governmental Funds - 285,947 $ 285,947 $ 285,947 The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated Parks Fund. Note 14 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2015 are as follows: Transfer In Transfer Out Governmental Activity: General Fund $ 490,894 $ (590,245) G.O. Improvement Bonds 2005A 683,729 - Improvement Note 2009F 378,000 Area and Unit Charge - (670,734) Other Nonmajor Governmental Funds 1,850,348 (2,075,158) Total Governmental Activity 3,402,971 (3,336,137) Business -type Activity: Water Fund - (33,417) Sewer Fund - (33,417) Total Business -Type Activity - (66,834) Total $ 3,402,971 $ (3,402,971) Interfund transfers are other financing sources and uses within the fund financial statements. The purposes of the transfers are to provide funding for capital improvement projects and capital outlay in accordance with the City's capital improvement plan. There are also transfers to and from other funds within the nonmajor governmental funds that are for closing out bond funds and moving the residual to another debt service fund. These transfers are routine and consistent with past practices. 61 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 15 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. Note 16 PROPERTY UNDER LEASE AGREEMENT The City entered into an agreement to lease space within the City Hall Complex to New Creations Child Care and Learning Center, LLC. The lease is dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of between $5.94 and $8.65 per square foot over the lease term, for a total of $330,904. Property under operating lease and held for lease consist of the following: Building $ 929,970 Less: Accumulated Depreciation (495,984) Net $ 433,986 Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows: Year Ending December 31, 2016 2017 2018 2019 62 Amount 72,889 75,617 77,901 39,522 $ 265,929 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 17 CONDUIT DEBT OBLIGATIONS The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial assistance to private -sector entities 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, 2015, one series of Industrial Revenue Bonds was outstanding with an aggregate remaining principal balance of $300,000, and one series of Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $1,648,987. Note 18 JOINT VENTURES 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. Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula takes into account each city's average number of calls, population, and total market value. During 2015, the City of Lino Lakes' contributions to the District were as follows: Operating $ 508,394 The audited financial statements of the District as of December 31, 2015 can be reviewed upon request of the Centennial Fire District. In January 2014 the City Council voted to start the process to withdraw from the District which will be effective January 27, 2016. The City created their own department which operations started in January 2016. Anoka County The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid Highway 14 (Main Street) and I -35E Interchange County Project. 63 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2014. 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, 2015 there were approximately 48 active participants and 6 retired participants receiving benefits from the City's health plans. B. FUNDING POLICY The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2015, the City contributed $29,984 to the plan. C. ANNUAL 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 unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution $ 31,590 Interest on Net OPEB Obligation 972 Adjustment to Annual Required Contribution (3,749) Annual OPEB Cost (Expense) 28,813 Contributions Made (28,984) Increase in Net OPEB Obligation (171) Net OPEB Obligation - Beginning of Year 91,023 Net OPEB Obligation - End of Year $ 90,852 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015 and the two preceding years: Percentage Fiscal Annual of Annual Net Year Ended OPEB Cost OPEB Cost Contributed 12/31/2013 $ 27,437 77.6% 12/31/2014 26,468 73.3% 12/31/2015 28,814 99.4% 64 OPEB Obligation $ 83,969 91,023 90,852 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2015 Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) D. FUNDED STATUS AND FUNDING PROGRESS As of January 1, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $547,626. The annual payroll for active employees covered by the plan in the actuarial valuation was $5,265,020 for a ratio of UAAL to covered payroll of 10.4%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. E. ACTUARIAL METHODS AND ASSUMPTIONS Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 1% investment rate of return (net of administrative expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 8%, decreasing to an ultimate rate of 3% after six years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2015 was not to exceed 30 years. Note 20 PRIOR PERIOD ADJUSTMENT DUE TO CHANGE IN ACCOUNT PRINCIPLE During fiscal year ended December 31, 2015, the City adopted GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and the related Statement No. 71. As a result, the City's net position as of December 31, 2014 has been restated to reflect the recognition of the City's proportionate share of the Public Employees' Retirement Association of Minnesota General Employees' Retirement Fund's (GERF) and Public Employees' Police and Fire Fund's (PEPFF) net pension liability and related deferred inflows and outflows of resources. Net Position, December 31, 2014, as Previously Reported Cumulative Effect of Application of GASB 68, Net Pension Liability Net Position, December 31, 2014, as Restated 65 Governmental Business -type Activities Activities $ 48,734,868 $ 41,444,300 (4,376,427) (77,959) $ 44,358,441 $ 41,366,341 REQUIRED SUPPLEMENTARY INFORMATION CITY OF LINO LAKES, MINNESOTA GENERALFUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Revenue: General property taxes: Current and delinquent Fiscal disparities Excess tax increments Total general property taxes Licenses and permits: Business Non -business Total licenses and permits Intergovernmental: State: Market value credit Police state aid MSA maintenance Other County/Regional: Solid waste Other Total intergovernmental Special assessments: Penalties and Interest Charges for services: General government Planning/engineering Fees retained from collection for other governments - SAC/surcharge Administrative charge - other funds Aerial map charge - other funds Public safety Total charges for services Fines and forfeits Investment earnings Change in market value Refunds Miscellaneous: Gas franchise fees Cable TV Donations Other Total miscellaneous Total revenue Statement 11 Page 1 of 6 66 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) $ 7,580,578 $ 6,348,407 $ 6,432,326 $ 83,919 - 1,232,171 1,053,732 (178,439) - - 2,982 2,982 71580,578 7,580,578 7,489,040 (91,538) 98,900 111,550 122,349 10,799 341,700 402,700 428,853 26,153 440,600 514,250 551,202 36,952 - - 5,363 5,363 190,000 190,000 226,275 36,275 240,000 255,000 255,979 979 20,000 20,000 61,610 41,610 40,000 99,000 99,319 319 4,000 4,000 1,065 (2,935) 494,000 568,000 649,611 81,611 15,000 15,000 14,008 (992) 4,350 4,350 4,927 577 15,000 15,000 12,722 (2,278) 2,000 2,000 2,444 444 50,000 50,000 51,619 1,619 5,000 5,000 7,832 2,832 201,200 191,200 197,879 6,679 277,550 267,550 277,423 9,873 130,500 120,500 127,803 7,303 30,000 30,000 27,004 (2,996) - - (9,578) (9,578) 30,000 30,000 54,689 24,689 60,000 60,000 47,914 (12,086) 12,500 12,500 12,500 - 2,000 2,000 1,925 (75) 77,500 98,499 106,613 8,114 152,000 172,999 168,952 (4,047) 9,150,228 9,298,877 9,350,154 51,277 66 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Expenditures: General government: Mayor and council: Current: Personal services Supplies 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 Original Final Budget Budget Actual Statement 11 Page 2 of 6 Variance with Final Budget Positive (Negative) $ 40,638 $ 40,638 $ 39,728 $ 910 - - 19 (19) 21,500 21,000 20,766 234 16,000 16,000 16,901 (901) 78,138 77,638 77,414 224 8,604 8,604 10,123 (1,519) 800 800 457 343 2,000 2,000 927 1,073 100 100 - 100 4,600 4,600 4,461 139 16,104 16,104 15,968 136 422,305 342,008 351,927 (9,919) 26,360 18,860 10,035 8,825 8,000 8,000 9,816 (1,816) 456,665 368,868 371,778 (2,910) 301,432 301,432 320,323 (18,891) 900 900 1,025 (125) 129,500 129,500 102,809 26,691 100,900 100,900 99,489 1,411 532,732 532,732 523,646 9,086 1,735 1,735 1,905 (170) 50 50 - 50 500 500 - 500 2,285 2,285 1,905 380 140,000 132,500 130,277 2,223 67 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Expenditures (continued): 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: Personal services Supplies Other services and charges Contractual services Capital outlay Total fire protection Building inspection: Current: Personal services Supplies Other services and charges Contractual services Total building inspection Total public safety Original Final Budget Budget $ 103,576 $ 103,576 $ Actual Statement 11 Page 3 of 6 Variance with Final Budget Positive (Negative) 100,952 $ 2,624 2,500 2,500 649 1,851 2,175 2,175 2,141 34 29,400 29,400 38,909 (9,509) 308,000 308,000 295,850 12,150 68,000 58,000 54,221 3,779 407,575 397,575 391,121 6,454 1,739,575 1,633,778 1,613,710 20,068 3,051,475 3,051,475 3,016,413 35,062 29,050 29,050 25,641 3,409 96,230 104,230 89,686 14,544 44,415 44,415 38,792 5,623 22,600 22,600 36,844 (14,244) 3,243,770 3,251,770 3,207,376 44,394 435,164 384,426 391,843 (7,417) 12,700 12,700 12,216 484 157,000 147,000 96,204 50,796 513,894 513,894 518,817 (4,923) - - 807 (807) 1,118,758 1,058,020 1,019,887 38,133 181,036 178,035 172,098 5,937 750 750 1,322 (572) 7,130 7,130 5,158 1,972 5,500 5,500 3,738 1,762 194,416 191,415 182,316 9,099 4,556,944 4,501,205 4,409,579 91,626 68 CITY OF LINO LAKES, MINNESOTA Statement 11 GENERAL FUND Page 4 of 6 SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Expenditures (continued): Public works: Streets: Current: Personal services $ 574,205 $ 560,205 $ 552,111 $ 8,094 Supplies 142,000 142,000 130,887 11,113 Other services and charges 109,660 109,660 116,140 (6,480) Contractual services 177,275 177,275 70,360 106,915 Total streets 1,003,140 989,140 869,498 119,642 Fleet: Current: Personal services 114,099 89,099 74,379 14,720 Supplies 224,000 224,000 136,865 87,135 Other services and charges 56,880 56,880 52,053 4,827 Contractual services 7,500 7,500 2,225 5,275 Total fleet 402,479 377,479 265,522 111,957 Total public works 1,405,619 1,366,619 1,135,020 231,599 Parks and recreation: Parks: Current: Personal services 465,109 465,109 439,617 25,492 Supplies 26,500 26,500 31,781 (5,281) Other services and charges 47,150 25,650 37,061 (11,411) Contractual services 35,700 35,700 28,537 7,163 Total parks 574,459 552,959 536,996 15,963 Recreation: Current: Personal services 287,963 287,963 272,791 15,172 Supplies 2,500 2,500 2,309 191 Other services and charges 14,750 14,750 14,839 (89) Contractual services 400 400 1,149 (749) Total recreation 305,613 305,613 291,088 14,525 Total parks and recreation 880,072 858,572 828,084 30,488 69 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Expenditures (continued): 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 Capital outlay Total solid waste abatement Original Final Budget Budget Actual Statement 11 Page 5 of 6 Variance with Final Budget Positive (Negative) $ 35,468 $ 35,468 $ 35,519 $ (51) 1,250 1,250 82 1,168 380 380 338 42 5,000 5,000 5,561 (561) 5,000 5,000 4,936 64 47,098 47,098 46,436 662 52,826 44,660 41,460 3,200 1,200 1,200 250 950 7,050 7,050 4,051 2,999 1,200 1,200 1,015 185 62,276 54,110 46,776 7,334 30,877 48,377 49,702 (1,325) 550 12,200 8,113 4,087 6,000 40,000 40,795 (795) - - (225) 225 37,427 100,577 98,385 2,192 Total conservation of natural resources 146,801 201,785 191,597 10,188 70 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Original Final Budget Budget Actual Statement 11 Page 6 of 6 Variance with Final Budget Positive (Negative) Expenditures (continued): Community development: Community development: Current: Personal services $ 202,755 $ 196,524 $ 190,187 $ 6,337 Supplies 100 100 144 (44) Other services and charges 8,400 8,400 18,191 (9,791) Contractual services 1,400 1,400 935 465 Total community development 212,655 206,424 209,457 (3,033) Economic development: Current: Personal services 21,646 16,646 13,702 2,944 Supplies 150 150 - 150 Other services and charges 79,300 75,300 76,327 (1,027) Contractual services 300 300 400 (100) Total economic development 101,396 92,396 90,429 1,967 Planning and zoning commission: Current: Personal services 84,960 84,960 89,400 (4,440) Supplies 200 200 65 135 Other services and charges 14,400 10,450 14,162 (3,712) Contractual services 19,000 19,000 19,422 (422) Total planning and zoning commission 118,560 114,610 123,049 (8,439) Total community development 432,611 413,430 422,935 (9,505) Other : Contingency 100,000 - - - Total expenditures 9,261,622 8,975,389 8,600,925 374,464 Revenue over expenditures (111,394) 323,488 749,229 425,741 Other financing sources (uses): Transfer in 480,894 480,894 480,894 - Transfer out (539,500) (589,500) (590,245) (745) Total other financing sources (uses) (58,606) (108,606) (109,351) (745) Net increase (decrease) in fund balance $ (170,000) $ 214,882 639,878 $ 424,996 Fund Balance - January 1 Fund balance - December 31 71 5,306,535 $ 5,946,413 CITY OF LINO LAKES, MINNESOTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2015 Note 1 BUDGETS The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles. The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded budget appropriations. Final Budget General Fund: General government: Administration $ 368,868 $ Community development: Community Development 206,424 Planning and Zoning Commission 114,610 The excess expenditures were paid for with available fund balance during 2015. 72 Actual 371,778 209,457 123,049 Actual in Excess of Budget $ (2,910) (3,033) (8,439) CITY OF LINO LAKES, MINNESOTA Statement 12 SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN Current and Two Preceeding Valuations 73 Actuarial UAAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (b -a) (a/b) (c) ((b-a)/c) 1/1/2008 $ - $ 329,191 $ 329,191 - $ 4,859,980 6.8% 1/1/2011 - 474,770 474,770 - 4,888,702 9.7% 1/1/2014 - 547,626 547,626 - 5,265,020 10.4% 73 CITY OF LINO LAKES, MINNESOTA Statement 13 REQUIRED SUPPLEMENTARY INFORMATION Page 1 of 2 PERA SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Last Ten Fiscal Years PEPFF Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* Measurement Measurement Date 6/30/2015 Date 6/30/2014 City's Proportion of the Net Pension Liability 0.2490% 0.2490% City's Proportionate Share of the Net Pension Liability $ 2,829,223 $ 2,029,320 City's Covered -Employee Payroll $ 2,284,973 $ 2,236,463 City's Proportionate Share of the Net Pension Liability as a Percentage of Its Covered -Employee Payroll 123.82% 90.74% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 86.61% 87.10% *The Amounts Presented for Each Fiscal Year were Determined as of 6/30. PEPFF Schedule of City Contributions Last Ten Fiscal Years 2015 2014 Statutorily Required Contribution $ 393,551 $ 314,426 Contributions in Relation to the Statutorily Required Contribution (393,551) (314,426) Contribution Deficiency (Excess) $ - $ - City's Covered -Employee Payroll $ 2,429,327 $ 2,055,072 Contributions as a Percentage of Covered Employee Payroll 16.20% 15.30% NOTE: Information prior to 2014 is not available 74 CITY OF LINO LAKES, MINNESOTA Statement 13 REQUIRED SUPPLEMENTARY INFORMATION Page 2 of 2 PERA SCHEDULE OF CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Last Ten Fiscal Years GERF Schedule of the City's Proportionate Share of the Net Pension Liability Last Ten Fiscal Years* Measurement Measurement Date 6/30/2015 Date 6/30/2014 City's Proportion of the Net Pension Liability 0.0410% 0.0432% City's Proportionate Share of the Net Pension Liability $ 2,124,883 $ 2,039,320 City's Covered -Employee Payroll $ 2,407,426 $ 2,240,493 City's Proportionate Share of the Net Pension Liability as a Percentage of Its Covered -Employee Payroll 88.26% 91.02% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.20% 78.70% *The Amounts Presented for Each Fiscal Year were Determined as of 6/30. GERF Schedule of City Contributions Last Ten Fiscal Years 2015 2014 Statutorily Required Contribution $ 182,102 $ 162,934 Contributions in Relation to the Statutorily Required Contribution (182,102) (162,934) Contribution Deficiency (Excess) $ - $ - City's Covered -Employee Payroll $ 2,428,027 $ 2,247,366 Contributions as a Percentage of Covered Employee Payroll 7.5% 7.25% NOTE: Information prior to 2014 is not available 75 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. Blue Heron Days - established to account for the activities associated with the Blue Heron Days festival. Federal Narcotics - established to account for activities associated with the the receipt and use of federal narcotics forfeitures. State Narcotics - established to account for activities associated with the receipt and use of state narcotics forfeitures. DUI Forfeitures - established to account activities associated with the receipt and use of DUI forfeitures. Debt Service Funds The Debt Service Funds account for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. The City's Debt Service Funds account for four types of bonded indebtedness: General Debt Bonds - are repaid primarily from property taxes. Improvement Bonds - are repaid primarily from special assessments. Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA leasing the buildings to the City of Lino Lakes and other tenants. Revenue Bonds - These bonds were issued to 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: Building and Facilities Fund - to account for the activities associated with the maintenance and replacement of municipal buildings and facilities. Capital Equipment Revolving Fund - to account for proceeds from Equipment Certificates and funds held to purchase capital equipment. Closed Bond Fund - to account for excess funds from matured bond issues. Street Reconstruction - to account for the financing of future reconstruction of City streets. Sealcoatin - to account for money received from levies, assessments, and developer deposits for future street sealcoating and overlay projects. Nonmaior Governmental Funds (Continued) Capital Proiect Funds (Continued) Surface Water Mana eg ment - to account for the financing of surface water management and storm water improvements. Tax Increment Funds - to account for development projects financed with tax increments. Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees. Muncipal State Aid Fund - to account for the financing of future reconstruction of state aid eligble streets. I35E Interschan eg Fund - to account for activity related to the I35E/CSAR 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. Fire House #2 Construction Fund - this fund accounts for activities relating to the construction of Fire House #2. Well #6 Construction Fund - this fund accounts for activities relating to the construction of Well # 6 and well house. Northpointe Improvements Fund - this fund accounts for activities relating to the construction of streets and utilities within the Northpointe development. Birch St/Centerville Rd Improvements Fund - this fund accounts for activities relating to the construction of street improvements and sanitary sewer extension in conjunction with Fire Station #2. Blackduck/Aqua Lane Watermain Extension Fund - this fund accounts for activities relating to the trunk watermain improvements along Aqua Lane to north of Blackduck Drive. Permanent Funds Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs. The City maintained the following nonmajor Permanent Fund during the year. Foxborough Environment Fund - established to account for the use of funds received for environmental maintenance and improvements in the Foxborough area. CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Special Revenue Economic Development Cable TV Program Blue Heron Federal Authority Fund Recreation Days Narcotics Assets Cash and investments $ $ 80,237 $ 86,306 $ 14,662 $ 51,389 Cash and investments with escrow agent - Accrued interest receivable - Accounts receivable 217 - Due from other governmental units - - Interfund receivable - Taxes receivable: Delinquent - Due from county - Delinquent tax increment - - Special assessments receivable: Delinquent - Noncurrent - Due from county Delinquent tax increment - - - Long-term notes receivable 225,000 - - - Prepaid items - 1,177 - - Total assets $ 225,000 $ 80,237 $ 87,700 $ 14,662 $ 51,389 Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Interfund payable $ $ - $ $ - $ - Accounts payable 3,189 1,415 1,424 Salaries payable 420 332 - - Contracts and retainage payable - - - Advances from other funds - - - - Total liabilities 420 3,521 1,415 1,424 Deferred inflows of resources: Unavailable resources - - - - Fund balance (deficit): Nonspendable - 1,177 - - Restricted 225,000 - 13,247 49,965 Committed - 80,237 83,002 - - Assigned - - - - Unassigned (420) - - - - Total fund balance (deficit) 224,580 80,237 84,179 13,247 49,965 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 225,000 $ 80,237 $ 87,700 $ 14,662 $ 51,389 76 Statement 14 Page 1 of 4 Special Revenue (Continued) Debt Service Special Certificates State DUI Revenue of $ 10,645 $ 17,430 $ 260,669 $ 125,654 - - 217 - 3,155 4,152 225,000 - - - 1,177 - $ 10,645 $ 17,430 $ 487,063 $ 132,961 835 411 7,274 - - - 752 - 835 411 8,026 - - - - 3,155 - - 1,177 - 9,810 17,019 315,041 129,806 - - 163,239 - - - (420) - 9,810 17,019 479,037 129,806 $ 10,645 $ 17,430 $ 487,063 $ 132,961 77 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Debt Service (Continued) Tax Utility CIP Improvement Abatement Revenue Refunding TIF Bonds of Bonds Bonds Bonds Bonds Assets Cash and investments $ 18,447 $ 255,753 $ 179,936 $ 884,320 $ 149,896 Cash and investments Interfund payable $ $ - $ $ with escrow agent - - - - - Accrued interest receivable 200 - Salaries payable - Accounts receivable - - - - Due from other governmental units - - - - - Interfund receivable - - - - Taxes receivable: Total liabilities 200 200 Delinquent 1,169 3,316 5,893 Due from county 188 3,729 Unavailable resources 6,383 Delinquent tax increment - - - - Special assessments receivable: Delinquent - - 9,582 - Noncurrent 22,281 - 37,277 - Due from county - - - - Delinquent tax increment - - Assigned - Long-term notes receivable - - - Prepaid items - - - - - Total assets $ 42,085 $ 262,798 $ 226,795 $ 896,596 $ 149,896 Liabilities, Deferred Inflows of Resources Total liabilities, deferred inflows of and Fund Balance (Deficit) resources and fund balance (deficit) $ 42,085 $ 262,798 $ Liabilities: Interfund payable $ $ - $ $ $ - Accounts payable 200 200 200 200 Salaries payable - - - - Contracts and retainage payable - - Advances from other funds - - - - - Total liabilities 200 200 200 200 Deferred inflows of resources: Unavailable resources 23,450 3,316 46,859 5,893 - Fund balance (deficit): Nonspendable - - - - - Restricted 18,635 259,282 179,736 890,503 149,696 Committed - - - - - Assigned - - Unassigned: - - - - - Total fund balance (deficit) 18,635 259,282 179,736 890,503 149,696 Total liabilities, deferred inflows of resources and fund balance (deficit) $ 42,085 $ 262,798 $ 226,795 $ 896,596 $ 149,896 78 Statement 14 Page 2 of 4 200 200 200 200 57,088 57,228 200 200 200 200 2,000 200 200 200 200 2,000 - - - - 196,989 120,438 258,207 127,547 50,405 107,167 2,291,422 - - (200) - - (200) 120,438 258,207 (200) 127,547 50,405 107,167 2,291,222 $ 177,726 $ 315,635 $ - $ 127,747 $ 50,605 $ 107,367 $ 2,490,211 79 Debt Service (Continued) Improvement and Utility Revenue Improvement Improvement GO GO EDA Leased Debt Refunding Bonds Bonds of Bonds of Bonds Bonds Revenue Bonds Service 2010 2012A 2013A 2014A 2015A 2015B Subtotal $ 120,638 $ 255,991 $ $ 127,747 $ 50,605 $ 107,367 $ 2,276,354 1,529 15,062 2,416 16,868 - - 9,582 57,088 55,699 172,345 315,635 $ $ 127,747 $ 107,367 $ 50,605 $ 177,726 $ $ 2,490,211 200 200 200 200 57,088 57,228 200 200 200 200 2,000 200 200 200 200 2,000 - - - - 196,989 120,438 258,207 127,547 50,405 107,167 2,291,422 - - (200) - - (200) 120,438 258,207 (200) 127,547 50,405 107,167 2,291,222 $ 177,726 $ 315,635 $ - $ 127,747 $ 50,605 $ 107,367 $ 2,490,211 79 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Assets Cash and investments Cash and investments with escrow agent 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 Delinquent tax increment 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 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 a 6,77/,17575 a 404,416 a 1,60 /,J4b a /00,626 014,164 3,473 421,149 5,463 1,626 302,314 3,473 421,149 5,463 - 40,623 99,675 303,940 2,553,715 Capital Closed 667,153 Building and Equipment Bond Street Facilities Revolving Fund Fund Reconstruction Sealcoating $ 239,655 $ 463,297 $ - $ 667,153 $ 614,124 - 1,115 - - - 2,317,533 - 1,246,697 - - 28 174 40,449 99,675 a 6,77/,17575 a 404,416 a 1,60 /,J4b a /00,626 014,164 3,473 421,149 5,463 1,626 302,314 3,473 421,149 5,463 - 40,623 99,675 303,940 2,553,715 43,263 1,241,262 667,153 310,184 2,553,715 43,263 1,241,262 667,153 310,184 $ 2,557,188 $ 464,412 $ 1,287,348 $ 766,828 $ 614,124 80 Statement 14 Page 3 of 4 Capital Projects (Continued) J91,66/ 2U9,9252 1 12525,941 1% 21J,!)1J �i 3,11`1,252.5 $ - $ - $ - $ 772,023 $ $ $ 259,135 29,648 470 521 625 31 - - - - 285,947 29,648 470 521 772,648 285,947 259,166 113,708 448,311 209,512 188,420 3,119,825 - - - - (772,648) (70,432) (259,166) 448,311 209,512 188,420 (772,648) (70,432) 3,119,825 (259,166) $ 591,667 $ 209,982 S 188,941 S - $ 215,515 $ 3,119,825 $ - 81 Tax Tax Tax Surface Increment Increment Increment Water Financing Financing Financing Dedicated MSA I35E Management 1-5 1-10 1-11 Parks Construction Interchange $ 476,341 $ 209,982 $ 188,941 $ $ 215,515 $ 3,023,600 $ - 199 - - - - - 96,225 - 2,436 - - - 111,272 - - - 1,419 - - - J91,66/ 2U9,9252 1 12525,941 1% 21J,!)1J �i 3,11`1,252.5 $ - $ - $ - $ 772,023 $ $ $ 259,135 29,648 470 521 625 31 - - - - 285,947 29,648 470 521 772,648 285,947 259,166 113,708 448,311 209,512 188,420 3,119,825 - - - - (772,648) (70,432) (259,166) 448,311 209,512 188,420 (772,648) (70,432) 3,119,825 (259,166) $ 591,667 $ 209,982 S 188,941 S - $ 215,515 $ 3,119,825 $ - 81 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2015 Interfund payable $ $ Capital Projects (Continued) Accounts payable 12,218 Office Salaries payable - - - - Equipment Legacy Woods - - 38,764 Advances from other funds Revolving Edge Traffic Otter Lake 21st Ave 12,218 Fund Improvement Signal Road Ext Ext Assets Unavailable resources - - - - Cash and investments $ 194,791 $ $ 113,736 $ 207,609 $ Cash and investments - - Restricted with escrow agent - - - Accrued interest receivable 182,573 - Unassigned: Accounts receivable - - (302,954) - 182,573 Due from other governmental units - - Interfund receivable - $ 113,736 $ 207,609 $ Taxes receivable: Delinquent - - - Due from county - Delinquent tax increment - - Special assessments receivable: Delinquent - - - - Noncurrent - - - Due from county - - - Delinquent tax increment - - - Long-term notes receivable - - - Prepaid items - - - - - Total assets $ 194,791 $ $ 113,736 $ 207,609 $ Liabilities, Deferred Inflows of Resources and Fund Balance (Deficit) Liabilities: Interfund payable $ $ $ - $ - $ 262,864 Accounts payable 12,218 - - 1,326 Salaries payable - - - - Contracts and retainage payable - - - 38,764 Advances from other funds - - - - Total liabilities 12,218 - - 302,954 Deferred inflows of resources: Unavailable resources - - - - Fund balance (deficit): Nonspendable - - Restricted - - Committed - - - Assigned 182,573 113,736 207,609 Unassigned: - - - (302,954) Total fund balance (deficit) 182,573 113,736 207,609 (302,954) Total liabilities, deferred inflows of resources and fund balance (deficit) $ 194,791 $ $ 113,736 $ 207,609 $ 82 Statement 14 Page 4 of 4 $ 624,252 $ 854,422 $ 413,271 $ 193,123 $ - $ 8,699,812 $ 123,791 $ 11,360,626 - - 199 - 416 - - - 1,115 - 1,115 - - 3,660,455 - 3,660,455 - - - - 15,062 - - 28 - 16,896 - - 174 - 174 - - 2,436 - 12,018 - - 251,396 - 423,741 - - 1,419 - 1,419 - - 225,000 - - - - - - - 1,177 $ 624,252 $ 854,422 $ 413,271 $ 193,123 $ - $ 12,617,034 $ 123,791 $ 15,718,099 8,949 3,432 - 582,033 103,051 35,342 590,982 106,483 35,342 - $ 48,895 $ 1,342,917 $ 6,074 2,191 497,196 31,503 - 1,093,007 - - 285,947 _ 37,577 51,086 3,219,067 - $ 1,342,917 506,470 - 752 1,093,007 285,947 3,229,093 254,006 - 450,995 - - 100,000 101,177 - - - - 23,791 2,630,254 - - - - - - - 163,239 33,270 747,939 377,929 155,546 - 10,600,247 - 10,600,247 - - - - (51,086) (1,456,286) - (1,456,906) 33,270 747,939 377,929 155,546 (51,086) 9,143,961 123,791 12,038,011 $ 624,252 S 854,422 $ 413,271 $ 193,123 $ - $ 12,617,034 $ 123,791 $ 15,718,099 83 Permanent Capital Projects (Continued) Fund Fire House Birch St/ Blackduck/ Capital Foxborough House #2 Well #6 Northpointe Centerville Rd Aqua Ln Projects Environment Total Construction Construction Improvements Improvements Watermain Ext Subtotal Fund 2015 $ 624,252 $ 854,422 $ 413,271 $ 193,123 $ - $ 8,699,812 $ 123,791 $ 11,360,626 - - 199 - 416 - - - 1,115 - 1,115 - - 3,660,455 - 3,660,455 - - - - 15,062 - - 28 - 16,896 - - 174 - 174 - - 2,436 - 12,018 - - 251,396 - 423,741 - - 1,419 - 1,419 - - 225,000 - - - - - - - 1,177 $ 624,252 $ 854,422 $ 413,271 $ 193,123 $ - $ 12,617,034 $ 123,791 $ 15,718,099 8,949 3,432 - 582,033 103,051 35,342 590,982 106,483 35,342 - $ 48,895 $ 1,342,917 $ 6,074 2,191 497,196 31,503 - 1,093,007 - - 285,947 _ 37,577 51,086 3,219,067 - $ 1,342,917 506,470 - 752 1,093,007 285,947 3,229,093 254,006 - 450,995 - - 100,000 101,177 - - - - 23,791 2,630,254 - - - - - - - 163,239 33,270 747,939 377,929 155,546 - 10,600,247 - 10,600,247 - - - - (51,086) (1,456,286) - (1,456,906) 33,270 747,939 377,929 155,546 (51,086) 9,143,961 123,791 12,038,011 $ 624,252 S 854,422 $ 413,271 $ 193,123 $ - $ 12,617,034 $ 123,791 $ 15,718,099 83 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2015 84 Special Revenue Economic Development Cable TV Program Blue Heron Federal Authority Fund Recreation Days Narcotics Revenue: General property taxes $ $ $ $ $ Tax increments Intergovernmental - Special assessments Charges for services 40,626 129,592 Investment earnings - 452 827 90 463 Net increase (decrease) in fair value of investments - (172) (299) (33) (176) Refunds - - - - - Miscellaneous - 30 21,054 86,588 Total revenue - 40,906 130,150 21,111 86,875 Expenditures: Current: General government 1,165 - - - - Public safety - - - 76,557 Parks, recreation and forestry - 150,020 19,185 - Conservation of natural resources - - - Community development - Capital outlay: General government - Public safety - Public works - Debt service: Principal - - Interest and fiscal charges - - Bond issuance costs - - - - - Total expenditures 1,165 - 150,020 19,185 76,557 Revenue over (under) expenditures (1,165) 40,906 (19,870) 1,926 10,318 Other financing sources (uses): Transfer in 745 - - - Transfer out - (10,000) Issuance of debt - Premium on bonds issued - Total other financing sources (uses) 745 - (10,000) - - Net increase (decrease) in ftmd balance (420) 40,906 (29,870) 1,926 10,318 Fund balance (deficit) - Beginning of year 225,000 39,331 114,049 11,321 39,647 Fund balance (deficit) - End of Year $ 224,580 $ 80,237 $ 84,179 $ 13,247 $ 49,965 84 Statement 15 Page 1 of 4 Special Revenue (Continued) Debt Service Special Certificates State DUI Revenue of Narcotics Forfeitures Subtotal Indebtedness $ - $ $ $ 300,838 - 318 - - 170,218 - 51 53 1,936 1,069 (19) (20) (719) (423) 9,004 17,845 134,521 - 9,036 17,878 305,956 301,802 - - 1,165 - 5,037 2,387 83,981 - - 169,205 - 276,000 - 11,298 3,999 15,491 51,605 14,504 - - 745 - - (10,000) - - (9,255) - 3,999 15,491 42,350 14,504 5,811 1,528 436,687 115,302 $ 9,810 $ 17,019 $ 479,037 $ 129,806 85 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2015 86 Debt Service (Continued) Tax Utility CIP Improvement Abatement Revenue Refunding TIF Bonds of Bonds Bonds Bonds Bonds 2005B 2006C 2006D 2006E 2007A Revenue: General property taxes $ 876 $ 264,155 $ $ 449,496 $ Tax increments - - - Intergovernmental - - - Special assessments 18,052 441 26,608 808 Charges for services - - - - Investment earnings 210 610 651 3,627 Net increase (decrease) in fair value of investments (13) (209) (234) (1,308) Refunds - - - Miscellaneous - - - - Total revenue 19,125 264,997 27,025 452,623 Expenditures: Current: General government - - - - Public safety - Parks, recreation and forestry - - Conservation of natural resources - - Community development - - Capital outlay: General government - - Public safety - - Public works - - - - Debt service: Principal 420,000 155,000 60,000 360,000 360,000 Interest and fiscal charges 13,450 85,893 7,683 56,450 105,176 Bond issuance costs - - - - - Total expenditures 433,450 240,893 67,683 416,450 465,176 Revenue over(under)expenditures (414,325) 24,104 (40,658) 36,173 (465,176) Other financing sources (uses): Transfer in - - 66,834 - 464,976 Transfer out - - - - Issuance of debt - - Premium on bonds issued - - - - Total other financing sources (uses) - - 66,834 - 464,976 Net increase (decrease)in fund balance (414,325) 24,104 26,176 36,173 (200) Fund balance (deficit) - Beginning ofyear 432,960 235,178 153,560 854,330 149,896 Fund balance (deficit) - End of Year $ 18,635 $ 259,282 $ 179,736 $ 890,503 $ 149,696 86 Statement 15 Page 2 of 4 Debt Service (Continued) Improvement and 220,000 60,425 Utility Revenue Improvement Improvement GO GO EDA Leased Debt Refunding Bonds Bonds of Bonds of Bonds Bonds Revenue Bonds Service 2010 2012A 2013A 2014A 2015A 2015B Subtotal $ $ 178,816 $ - $ $ $ $ 1,194,181 16,854 21,246 - 2,375,056 (103,510) 84,327 742 800 125 201 382 8,417 (256) (274) (46) (75) (140) (2,978) 17,340 200,588 79 126 242 1,283,947 100,000 220,000 60,425 2,011,425 20,850 - - - - - 300,800 - 19,483 17,965 24,183 200 1,000 62,831 120,850 239,483 78,390 24,183 200 1,000 2,375,056 (103,510) (38,895) (78,390) (24,104) (74) (758) (1,091,109) 94,936 130,341 - - 757,087 - 49,474 106,668 156,142 - - 1,005 1,257 2,262 94,936 130,341 50,479 107,925 915,491 (103,510) (38,895) 16,546 106,237 50,405 107,167 (175,618) 223,948 297,102 (16,746) 21,310 - - 2,466,840 $ 120,438 $ 258,207 $ (200) $ 127,547 $ 50,405 $ 107,167 $ 2,291,222 87 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2015 Revenue: General property taxes Tax increments Intergovernmental Special assessments Charges for services Investment earnings Net increase (decrease) in fair value of investments Refunds Miscellaneous Total revenue Expenditures: Current: General government Public safety Parks, recreation and forestry Conservation of natural resources Community development Capital outlay: General government Public safety Public works Debt service: Principal Interest and fiscal charges Bond issuance costs Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Issuance of debt Premium on bonds issued Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance (deficit) - Beginning of year Fund balance (deficit) - End of Year Capital Projects 11,048 - 12,575 - - - - - 804,382 6,727 - - 1,161,951 4,237 229,259 115,573 (1,332,145) 17,588 16,703 (729,405) - (480,894) 1,161,250 - 1,215,772 (480,894) 115,573 (116,373) (463,306) 514,500 - 514,500 16,703 (214,905) 2,438,142 159,636 1,704,568 650,450 525,089 $ 2,553,715 $ 43,263 $ 1,241,262 $ 667,153 $ 310,184 88 Capital Closed Building and Equipment Bond Street Facilities Revolving Fund Fund Reconstruction Sealcoating - 24,818 14,192 - 2,500 - - 3,264 1,608 8,445 3,977 4,674 (1,203) (652) (3,100) (1,466) (1,690) - - 71,993 135,524 55,609 - - - 137,585 59,065 30,163 16,703 74,977 11,048 - 12,575 - - - - - 804,382 6,727 - - 1,161,951 4,237 229,259 115,573 (1,332,145) 17,588 16,703 (729,405) - (480,894) 1,161,250 - 1,215,772 (480,894) 115,573 (116,373) (463,306) 514,500 - 514,500 16,703 (214,905) 2,438,142 159,636 1,704,568 650,450 525,089 $ 2,553,715 $ 43,263 $ 1,241,262 $ 667,153 $ 310,184 88 Statement 15 Page 3 of 4 Capital Projects (Continued) Surface Tax Increment Tax Increment Tax Increment 11,241 Water Financing Financing Financing Dedicated MSA I35E Management 1-5 1-10 1-11 Parks Construction Interchange 147,698 81,324 131,501 15,287 (328,373) 36,118 148,315 82,853 66,877 - - 50,000 - 2,928 1,111 1,491 (82,853) 1,013 24,109 (1,077) (412) (544) (148,315) (380) (8,822) - - - - 142,109 - 68,728 36,817 149,262 82,853 142,742 15,287 95,270 - 328,373 1,059 1,564 1,529 89 - 11,241 95,270 1,059 1,564 - 328,373 1,529 11,241 (26,542) 35,758 147,698 81,324 131,501 15,287 (328,373) - - - 50,000 - - (148,315) (82,853) - (817,682) - (148,315) (817,682) (82,853) 50,000 (26,542) 35,758 (617) (1,529) 181,501 (802,395) (328,373) 474,853 173,754 189,037 (771,119) (251,933) 3,922,220 69,207 $ 448,311 $ 209,512 $ 188,420 $ (772,648) $ (70,432) $ 3,119,825 $ (259,166) 89 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2015 90 Capital Projects (Continued) Office Equipment Legacy Woods Revolving Edge Traffic Otter Lake 21st Ave Fund Improvement Signal Road Ext Extension Revenue: General property taxes $ $ $ $ $ Tax increments Intergovernmental 30,016 Special assessments - Charges for services - - - Investment earnings 1,335 1,566 554 1,534 Net increase (decrease) in fair value of investments (485) - (203) (556) Refunds - - - Miscellaneous - - Total revenue 850 1,566 30,367 978 Expenditures: Current: General government 9,929 - - Public safety - 542 24,421 109,872 Parks, recreation and forestry - - - - Conservation of natural resources - Community development - Capital outlay: General government 61,205 Public safety - - Public works - 54,125 Debt service: Principal - - Interest and fiscal charges - Bond issuance costs - - - Total expenditures 71,134 542 78,546 109,872 Revenue over (under) expenditures (70,284) 1,566 29,825 (77,568) (109,872) Other financing sources (uses): Transfer in 25,000 - - Transfer out - (535,414) Issuance of debt - Premium on bonds issued - Total other financing sources (uses) 25,000 (535,414) - Net increase (decrease) in fund balance (45,284) (533,848) 29,825 (77,568) (109,872) Fund balance (deficit) - Beginning ofyear 227,857 533,848 83,911 285,177 (193,082) Fund balance (deficit) - End of Year $ 182,573 $ - $ 113,736 $ 207,609 $ (302,954) 90 Statement 15 Page 4 of 4 - - - - Permanent 34,717 4,190,303 Capital Projects (Continued) 754,193 Fund - Fire House 7,522,747 Birch St/ Blackduck/ Capital Foxborough - House #2 Well #6 Northpointe Centerville Rd Aqua Ln Projects Environment Total Construction Construction Improvements Improvements Watermain Ext Subtotal Fund 2015 $ $ $ $ - $ $ - $ $ 1,194,181 - - 267,286 267,286 - - 30,016 1,161,951 30,016 1,161,951 - - 105,887 - 190,214 290,158 - - 2,500 - 172,718 8,349 5,868 5,036 767 77,629 482 88,464 (2,774) (2,147) (1,803) (254) (27,568) - (31,265) - - - - 71,993 - 71,993 - - - - 333,242 2,675 470,438 5,575 3,721 3,233 513 860,985 3,157 2,454,045 - - - - 33,552 34,717 4,190,303 333,240 754,193 798,170 - 7,438,766 7,522,747 - - - - - - 169,205 - - 8,100 8,100 - - 4,152 - 4,152 - 67,932 67,932 - - 1,161,951 1,161,951 - 2,537 - 290,158 290,158 - - 51,086 51,086 2,062,511 - - - 11,241 312,041 - - - - - - - 62,831 4,190,303 333,240 754,193 800,707 51,086 9,058,838 8,100 11,696,345 (4,184,728) (329,519) (750,960) (800,194) (51,086) (8,197,853) (4,943) (9,242,300) 503,016 1,092,516 1,850,348 - - (2,065,158) (2,075,158) 4,273,332 454,823 5,889,405 6,045,547 50,351 9,232 59,583 61,845 4,323,683 967,071 5,030,868 5,937,104 138,955 (329,519) (750,960) 166,877 (51,086) (3,166,985) (4,943) (3,305,196) (105,685) 1,077,458 1,128,889 (11,331) 12,310,946 128,734 15,343,207 $ 33,270 $ 747,939 $ 377,929 $ 155,546 $ (51,086) $ 9,143,961 $ 123,791 $ 12,038,011 91 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND - PROGRAM RECREATION SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2015 Revenue: Charges for services: Recreation fees Investment earnings Change in market value Miscellaneous Total revenue Expenditures: Current: Personal services Supplies Other services and charges Contractual services Capital outlay Total expenditures Other financing sources (uses): Transfers out 2015 Original Final Budget Budget Actual Statement 16 Variance with Final Budget Positive (Negative) $ 144,935 $ 144,935 $ 129,592 $ (15,343) - - 827 827 - - (299) (299) - - 30 30 144,935 144,935 130,150 (14,785) 58,205 58,205 65,083 (6,878) 35,650 35,650 52,623 (16,973) - - 1,520 (1,520) 28,350 28,350 30,794 (2,444) 3,000 3,000 - 3,000 125,205 125,205 150,020 (24,815) Net increase (decrease) in fund balance $ 19,730 $ 19,730 Fund balance - January 1 Fund balance - December 31 92 (10,000) (10,000) (29,870) $ (49,600) 114,049 $ 84,179 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 17 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS Year Ended December 31, 2015 Balance Balance January 1, December 31, 2015 Additions Deductions 2015 Assets Cash and investments $ 783,438 $ 100,627 $ 156,430 $ 727,635 Liabilities Deposits payable $ 783,433 $ 100,627 $ 156,425 $ 727,635 93 SUPPLEMENTARY FINANCIAL AND OTHER INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2015 Final Interest Maturity Rates Dated Date General Obligation Bonds: 4.35%-5.15% 11/1/2005 2/1/2021 2012A Equipment Certificates 1.00% 2/1/2012 12/31/2015 2013A Equipment Certificates 1.00% 2/1/2013 12/31/2016 2014A Equipment Certificates 1.00% 2/1/2014 12/31/2017 2015A Equipment Certificates 1.00% 2/1/2015 12/31/2018 2015B Equipment Certificates 1.50% 8/25/2015 12/31/2020 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 G.O Bonds 2015A 2.00%-3.00% 8/1/2015 2/1/2031 EDA Leased Revenue Bonds 2015B 2.00%-3.00% 10/1/2015 4/1/2036 Total General Obligation Bonds Special Assessment Bonds 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 G.O. Improvement Bonds, Series 2014A 0.40%-2.30% 11/20/2014 2/1/2026 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 94 Prior Years Original 2,410,000 Payable _ Issue Payments 1/1/15 $ 150,000 $ 99,000 $ 51,000 $ 193,000 63,000 130,000 495,000 - 495,000 198,250 - - 963,000 - - 2,460,000 380,000 2,080,000 570,000 375,000 195,000 2,990,000 1,420,000 1,570,000 4,215,000 1,450,000 2,765,000 2,015,000 70,000 1,945,000 3,095,000 - - 4,350,000 - - _ 21,694,250 3,857,000 9,231,000 2015 2,410,000 Payable Issued Payments 12/31/15 - $ 51,000 $ - $ 27,686 65,000 65,000 - 160,000 335,000 198,250 - 198,250 963,000 - 963,000 - 155,000 1,925,000 1,699,000 60,000 135,000 16,815 360,000 1,210,000 - 360,000 2,405,000 - 220,000 1,725,000 3,095,000 - 3,095,000 4,350,000 - 4,350,000 _ 8,606,250 1,431,000 16,406,250 Exhibit 1 Principal Interest Due Due In 2016 In 2016 5,550,000 2,410,000 65,000 650 167,000 3,350 65,000 3,800 177,000 27,686 170,000 78,380 65,000 4,254 380,000 40,800 380,000 89,526 230,000 17,618 - 81,090 - 174,766 1,699,000 521,920 5,550,000 2,410,000 3,140,000 380,000 2,760,000 400,000 130,235 3,755,000 3,335,000 420,000 420,000 - - - 1,000,000 375,000 625,000 100,000 525,000 100,000 14,250 615,000 - 615,000 - 60,000 555,000 60,000 16,815 - - - 2,645,000 - 2,645,000 105,000 33,543 10,920,000 6,120,000 4,800,000 2,645,000 960,000 6,485,000 665,000 194,842 4,260,000 - 2,080,000 - 360,000 1,720,000 375,000 70,165 $ 38,614,250 $ 11,717,000 $ 16,111,000 $ 11,251,250 $ 2,751,000 $ 24,611,250 $ 2,739,000 $ 786,927 95 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2015 96 G. O. G. O. G. 0. Tax CIP Year of Equipment Equipment Equipment Equipment Improvement Abatement Refunding Levy/ Certificates Certificates Certificates Certificates Bonds Bonds Bonds Collection of 2013A of 2014A of 2015A of 2015B of 2005A 2006C 2006E 2015/2016 $ 68,933 $ 178,868 $ 72,240 $ 214,921 $ 572,497 $ 278,140 $ 460,110 2016/2017 - 178,164 71,749 215,030 571,184 285,411 464,100 2017/2018 - - 70,258 214,090 574,072 297,263 - 2018/2019 - - - 213,119 574,907 313,472 - 2019/2020 - - - 214,216 579,639 323,316 - 2020/2021 - - - - - 337,517 - 2021/2022 - - - - - 350,447 - 2022/2023 - - - - - - - 2023/2024 - - - - - - - 2024/2025 - - - - - - - 2025/2026 - - - - - - - 2026/2027 - - - - - - - 2027/2028 - - - - - - - 2028/2029 - - - - - - - 2029/2030 - - - - - - - 2030/2031 - - - - - - - 2031/2032 - - - - - - - 2032/2033 - - - - - - - 2033/2034 - - - - - - - 2034/2035 - - - - - - - 2035/2036 - - - - - - - $ 68,933 $ 357,032 $ 214,247 $ 1,071,376 $ 2,872,299 $ 2,185,566 $ 924,210 96 Exhibit 2 97 G.O. G. O. Improvement and G.O. G.O. G.O. EDA TIF Utility Revenue G.O. Improvement Improvement Improvement Leased Revenue Bonds Refunding Bonds Refunding Bonds Bonds Bonds Bonds Bonds 2007A 2010A 2012A 2013A 2014A 2015A 2015B Total $ 500,983 $ 121,537 $ 266,406 $ 8,544 $ 11,640 $ - $ - $ 2,754,819 506,023 118,387 259,128 7,158 3,324 57,041 168,208 2,904,907 268,723 120,488 261,868 5,772 6,301 56,096 173,713 2,048,644 271,243 117,180 258,849 3,882 4,595 55,151 178,531 1,990,929 278,593 124,372 182,417 1,992 1,505 54,206 178,210 1,938,466 285,313 - 179,687 4,722 2,148 53,261 191,815 1,054,463 291,403 - 181,949 1,992 2,865 52,316 196,681 1,077,653 301,855 - 183,899 - 3,655 51,371 201,518 742,298 306,127 - 180,330 - 4,500 50,426 209,924 751,307 - - - - - 54,731 210,740 265,471 - - - - - 53,681 215,880 269,561 - - - - - - 213,863 213,863 - - - - - - 218,836 218,836 - - - - - - 224,607 224,607 - - - - - - 229,489 229,489 - - - - - - 238,787 238,787 - - - - - - 243,660 243,660 - - - - - - 268,780 268,780 - - - - - - 279,118 279,118 - - - - - - 289,456 289,456 - - - - - - 299,793 299,793 $ 3,010,263 $ 601,964 $ 1,954,533 $ 34,062 $ 40,533 $ 538,280 $ 4,431,609 $ 18,304,907 97 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 2015 98 G. O. Equipment Equipment Equipment Equipment Improvement Certificates Certificates Certificates Certificates Bonds 2013A 2014A 2015A 2015B 2005A Bonds payable $ 65,000 $ 335,000 $ 198,250 $ 963,000 $ 2,760,000 Future interest payable 650 5,030 5,796 57,356 445,644 Totals $ 65,650 $ 340,030 $ 204,046 $ 1,020,356 $ 3,205,644 Payments to maturity: 2016 $ 65,650 $ 170,350 $ 68,800 $ 204,686 $ 530,236 2017 - 169,680 68,333 204,790 534,611 2018 - - 66,913 203,895 532,861 2019 - - - 202,970 534,633 2020 - - - 204,015 534,784 2021 - - - - 538,519 2022 - - - - - 2023 - - - - - 2024 - - - - - 2025 - - - - - 2026 - - - - - 2027 - - - - - 2028 - - - - - 2029 - - - - - 2030 - - - - - 2031 - - - - - 2032 - - - - - 2033 - - - - - 2034 - - - - - 2035 - - - - - 2036 - - - - - $ 65,650 $ 340,030 $ 204,046 $ 1,020,356 $ 3,205,644 98 Exhibit 3 G.O. G.O. G.O. 114,250 $ G.O. 260,858 Tax Utility CIP G.O. Improvement and - 433,500 Abatement Revenue Refunding TIF Utility Revenue G.O. Bonds Bonds Bonds Bonds Refunding Bonds Refunding Bonds 2006C 2006D 2006E 2007A 2010A 2012A $ 1,925,000 $ 135,000 $ 1,210,000 $ 2,405,000 $ 525,000 $ 1,725,000 367,429 5,707 74,400 413,351 40,425 92,021 $ 2,292,429 $ 140,707 $ 1,284,400 $ 2,818,351 $ 565,425 $ 1,817,021 248,381 $ 69,254 $ 420,800 $ 469,526 $ 114,250 $ 247,618 260,858 71,453 430,100 473,926 111,250 241,311 267,464 - 433,500 252,126 113,175 244,660 278,327 - - 254,326 110,025 242,590 293,233 - - 261,026 116,725 170,520 302,183 - - 267,126 - 168,560 315,103 - - 272,504 - 166,400 326,880 - - 282,016 - 169,001 - - - 285,775 - 166,361 $ 140,707 $ 1,284,400 1,817,021 $ 2,292,429 $ 2,818,351 $ 565,425 $ 99 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED) December 31, 2015 Exhibit 3 100 Note G.O. G.O. G.O. EDA Payable - Improvement Improvement Improvement Leased Revenue Anoka Bonds Bonds Bonds Bonds County - 2013A 2014A 2015A 2015B 2009A Totals Bonds payable $ 555,000 $ 2,645,000 $ 3,095,000 $ 4,350,000 $ 1,720,000 $ 24,611,250 Future interest payable 91,755 190,267 640,558 1,811,960 1,016,549 5,258,898 Totals $ 646,755 $ 2,835,267 $ 3,735,558 $ 6,161,960 $ 2,736,549 $ 29,870,148 Payments to maturity: 2016 $ 76,815 $ 138,543 $ 81,090 $ 174,767 $ 465,945 $ 3,546,711 2017 75,780 402,223 257,112 299,237 470,945 4,071,609 2018 74,460 399,633 258,263 300,888 475,345 3,623,183 2019 72,900 406,158 259,312 302,438 483,195 3,146,874 2020 71,100 401,788 255,313 298,938 485,070 3,092,512 2021 69,000 406,390 256,262 299,487 356,049 2,663,576 2022 71,500 162,055 252,163 299,013 - 1,538,738 2023 68,900 159,280 253,013 298,388 - 11557,478 2024 66,300 161,151 258,712 302,538 - 11240,837 2025 - 162,644 259,263 301,462 - 723,369 2026 - 35,402 254,481 300,237 - 590,120 2027 - - 254,362 298,862 - 553,224 2028 - - 209,400 297,337 - 506,737 2029 - - 209,587 300,587 - 510,174 2030 - - 209,150 298,612 - 507,762 2031 - - 208,075 301,106 - 509,181 2032 - - - 298,063 - 298,063 2033 - - - 298,800 - 298,800 2034 - - - 298,200 - 298,200 2035 - - - 297,200 - 297,200 2036 - - - 295,800 - 295,800 $ 646,755 $ 2,835,267 $ 3,735,558 $ 6,161,960 $ 2,736,549 $ 29,870,148 100 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 2015 Coverage General Liability: Bodily Injury/Property Damage Personal Injury/Police Professional Liability Fire Legal Liability Medical Expense Occurrence Limit Medical Expense Aggregate Property Damage ($500 Deductible) Property: Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) Faithful Performance Blanket Bond Storage Tank Liability Rented/Leased Equipment ($1,000 Deductible) Public Official and Employee Liability ($1,000 Deductible Each Occurrence) Automotive: Bodily Injury and Property Damage Comprehensive and Collision Uninsured Motorists Workmen's Compensation Umbrella Liability Crime - Theft Disappearance and Destruction ($1,000 Deductible) 101 Exhibit 4 Amount 1,500,000 1,500,000 50,000 1,000 10,000 31,598,180 500,000 250,000 500,000 1,500,000 1,500,000 Actual Cash Value 200,000 Statutory 1,000,000 250,000 CITY OF LINO LAKES, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution 102 Tax Capacity Tax Capacity Values Values 2014/2015 2013/2014 Taxable valuations: Total $ 18,339,615 $ 16,439,245 Fiscal disparities: Distribution 2,639,444 2,623,227 Contribution (1,072,910) (1,063,999) Less: Captured Tax Increment Value (236,559) (232,280) $ 19,669,590 $ 17,766,193 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes Levied: Revenue $ 7,490,578 37.819 $ 7,098,922 39.784 Bond and Interest 1,195,494 5.951 1,197,122 6.899 Totals $ 8,686,072 43.770 $ 8,296,044 46.683 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution 102 STATISTICAL SECTION (Unaudited) 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 9-12 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 13-14 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 15-17 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) Table 1 103 Fiscal Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Governmental Activities Net Investment in Capital Assets $ 29,549,174 $ 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217 $ 24,600,103 $ 22,166,342 $ 22,241,821 $ 19,540,807 $ 18,230,746 Restricted 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112 11,000,033 8,666,357 8,635,293 Unnesuicted 14,516,466 6,339,528 10,790,359 15,926,322 16,738,885 13,463,210 17,639,038 16,849,636 20,527,704 13,888,120 Total Governmental Activities Net Position $ 54,770,148 $ 53,453,148 $ 49,133,900 $ 48,741,249 $ 47,729,127 $ 49,662,116 $ 51,400,492 $ 50,091,490 $ 48,734,868 $ 40,754,159 Business -Type Activities Net Investment in Capital Assets $ 29,485,942 $ 29,836,775 $ 30,372,670 $ 30,071,840 $ 29,648,461 $ 29,216,866 $ 28,798,095 $ 28,423,284 $ 27,556,022 $ 29,127,829 Unrestricted 6,880,547 8,063,983 9,028,778 10,112,207 10,728,626 11,201,362 12,102,013 12,999,182 13,888,278 14,672,630 Total Business -Type Activities Net Position $ 36,366,489 $ 37,900,758 $ 39,401,448 S 40,184,047 $ 40,377,087 $ 40,418,228 $ 40,900,108 $ 41422,466 $ 41444,300 $ 43,800,459 Primary Government Net Investment in Capital Assets $ 59,035,116 $ 66,625,928 $ 58,845,535 $ 53,472,293 $ 52,210,678 $ 53,816,969 $ 50,964,437 $ 50,665,105 $ 47,096,829 $ 47,358,575 Restricted 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112 11,000,033 8,666,357 8,635,293 Unrestricted 21,397,013 14,4031511 19,8t9,137 26,038,529 27,467,511 24,664,572 29,741,051 29,848,818 34,415,982 28,560,750 Total Primary Govemmcnt Net Position $ 91,136,637 $ 91,353,906 $ 88,535,348 $ 88,925,296 $ 88,106,214 $ 90,080,344 $ 92,300,600 $ 91,513,956 $ 90,179,166 $ 84,554,618 103 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION, LAST TEN FISCAL YEARS (accrual basis of accounting) 104 Fiscal Year 2006 2007 2008 2009 2010 2011 Expenses Governmental activities: General government $ 2,886,825 $ 2,197,672 $ 2,323,358 $ 2,201,439 $ 1,987,415 $ 1,990,137 Public safety 3,516,376 3,730,504 4,051,162 4,299,366 3,971,261 4,019,101 Public services 3,871,968 10,580,560 7,608,626 4,027,553 3,968,063 8,110,979 Parks, recreation and forestry 1,162,458 1,357,133 919,948 1,313,560 1,124,907 1,218,472 Conservation of natural resources 156,592 183,420 184,624 215,607 197,571 139,544 Community development 691,880 1,122,802 1,114,158 1,005,997 1,105,254 617,747 Interest on long-term debt 926,021 980,849 1,045,781 928,668 1,064,172 927,535 Total governmental activities expenses $ 13,212,120 $ 20,152,940 _L 17,247,657 $ 13,992,190 _L 13,418,643 $ 17,023,515 Business -type activities: Water $ 976,575 $ 1,170,902 $ 1,020,770 $ 1,089,569 $ 1,045,901 $ 966,643 .Sewer 1,228,123 1,298,963 1,287,943 1,432,107 1,466,847 1,638,063 Total business -type activities 2,204,698 2,469,865 2,308,713 2,521,676 2,512,748 2,604,706 Total primary government expenses $ 15,416,818 $ 22,622,805 $ 19,556,370 $ 16,513,866 $ 15,931,391 $ 19,628,221 Program Revenues Governmental activities: Charges for services: General government $ 88,924 $ 91,646 $ 79,844 $ 101,741 $ 98,403 $ 103,687 Public safety 844,514 1,078,995 1,296,418 725,747 691,005 713,985 Public works 420,741 389,489 413,040 428,174 427,223 382,287 Parks, recreation and forestry 188,439 185,803 187,285 165,994 177,984 210,976 Conservation ofnatural resources 6,854 4,559 3,660 3,858 4,153 4,392 Community development 20,530 15,839 11,623 8,667 14,148 5,138 Operating grants and contributions 643,749 851,791 693,065 682,797 617,450 593,798 Capital grants and contributions 5,963,204 7,189,346 1,094,789 1,357,015 1,388,984 7,347,613 Total governmental activities program revenues $ 8,176,955 $ 9,807,468 $ 3,779,724 $ 3,473,993 $ 3,419,350 $ 9,361,876 Business -type activities: Charges for services: Water $ 1,175,172 $ 1,215,763 $ 1,058,493 $ 1,365,817 $ 1,087,013 $ 1,090,104 Sewer 1,391,702 1,446,112 1,472,093 1,502,164 1,498,218 1,494,188 Operating grants and contributions - - - 62,710 - - Capital grants and contributions 1,535,631 80,750 10,117 8,769 8,709 1,462 Total business -type activities program revenues 4,102,505 2,742,625 2,540,703 2,939,460 2,593,940 2,585,754 Total primary government program revenues $ 12,279,460 $ 12,550,093 $ 6,320,427 $ 6,413,453 $ 6,013,290 $ 11,947,630 Net (Expense)/Revenue Governmental activities $ (5,035,165) $ (10,345,472) $ (13,467,933) $ (10,518,197) $ (9,999,293) $ (7,661,639) Business -type activities 1,897,807 272,760 231,990 417,784 81,192 (18,952) Total primary government net expense $ (3,137,358) $ (10,072,712) _L(13,235,943) _L(10,100,413) $ (9,918,101) $ (7,680,591) General Revenues and Other Changes in Net Position Governmental activities: Property taxes $ 8,269,944 $ 8,785,280 $ 9,424,697 $ 9,808,324 $ 8,764,183 $ 8,768,805 Unrestricted grants and contributions - 256,877 129,607 11,321 4,389 4,072 Unrestricted investment earnings 713,794 864,578 576,071 429,325 225,677 251,250 Change in market value - - - - - - Gain on sale of capital assets 33,217 17,424 12,512 12,644 - 37,579 Miscellaneous - - - - - - Transfers (299,725) (895,687) (994,202) (1361068) (7,078) 66,122 Total governmental activities $ 8,717,230 $ 9,028,472 $ 9,148,685 $ 10,125,546 $ 8,987,171 $ 9,127,828 Business -type activities: Unrestricted investment earnings $ 253,787 $ 365,822 $ 274,498 $ 228,747 $ 104,770 $ 126,215 Change in market value - - - - - - Transfers 299,725 895,687 994,202 136,068 7,078 (66,122) Total business -type activities 553,512 1,261,509 1,268,700 3641815 111,848 60,093 Total primary government $ 9,270,742 $ 10,289,981 $ 10,417,385 $ 10,490,361 $ 9,099,019 $ 9,187,921 Change in Net Position Governmental activities $ 3,682,065 $ (1,317,000) $ (4,319,248) $ (392,651) $ (1,012,122) $ 1,466,189 Business -type activities 2,451,319 1,534,269 1,500,690 782,599 193,040 41,141 Total primary government change in net position $ 6,133,384 $ 217,269 $ (2,818,558) $ 389,948 $ (819,082) $ 1,507,330 104 Table 2 Fiscal Year 2012 2013 2014 2015 $ 1,883,961 $ 1;566,388 $ 2,036,550 $ 2,016,351 4,046,415 3,950,197 202,828 4,107,759 172,738 5,135,865 5,584,283 4,540,888 92,957 4,786,121 4,175 6,822,972 1,210,867 835,783 41,043 1,093,909 69,294 1,148,740 184,051 141,204 $ 9,148,045 159,649 $ 102,073 186,111 430,121 404,726 - 407,448 58,255 432,268 837,755 951,842 (69,294) 618,680 61,030 632,876 $ 14,177,453 $ 12,391,028 $ 13,210,116 $ 16,375,183 $ 949,121 $ 927,800 $ 965,641 $ 1,394,897 1,527,637 1,584,395 $ 1,628,258 $ 2,089,842 2,476,758 2,512,195 $ (1,071,764) 2,593,899 3,484,739 $ 16,654,211 $ 14,903,223 $ 15,804,015 $ 19,859,922 $ 129,151 $ 93,118 $ 103,072 $ 818,468 642,745 697,584 202,828 763,470 172,738 199,498 476,296 456,024 92,957 464,486 4,175 454,845 191,832 175,978 41,043 156,735 69,294 149,021 19,297 1,347 $ 9,148,045 1,882 $ 102,073 - 16,940 28,118 - 39,395 58,255 - 450,179 527,368 (69,294) 840,676 61,030 526,107 5,125,693 941,960 $ 8,924,726 335,733 $ 9,233,219 1,176,732 $ 7,052,133 $ 2,921,497 $ 2,705,449 $ 3,324,671 $ 1,371,809 $ 1,208,742 $ 965,425 $ 1,014,836 1,505,781 1,516,397 $ (1,071,764) 1,564,099 1,621,633 - - 263,024 263,024 20,018 883 1,035 3,035,031 2,897,608 2,726,022 2,7935583 5,934,524 $ 9,949,741 $ 5,647,519 $ 5,499,032 $ 9,259,195 $ (7,125,320) $ (9,469,531) $ (10,504,667) $ (13,050,512) 420,850 213,827 199,684 2,449,785 $ (6,704,470) $ (6,704,470) $ (10,304,983) $ (10,600,727) $ 8,610,709 $ 8,563,595 $ 8,806,886 $ 9,243,236 4,941 4,442 4,443 5,363 202,828 216,488 172,738 163,825 - (270,692) 92,957 (50,864) 4,175 - 1,727 17,836 41,043 (353,304) 69,294 66,834 $ 8,863,696 $ 8,160,529 $ 9,148,045 $ 9,446,230 $ 102,073 $ 113,402 $ 96,213 $ 81,084 - (158,175) 58,255 (29,917) (41,043) 353,304 (69,294) (66,834) 61,030 308,531 855174 (15,667) $ 8,924,726 $ 8,469,060 $ 9,233,219 $ 9,430,563 $ 1,738,376 $ (1,309,002) $ (15356,622) $ (3,604,282) 481,880 522,358 284,858 2,434,118 $ 2,220,256 $ (786,644) $ (1,071,764) $ (1,170,164) 105 CITY OF LINO LAKES, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) General Fund Reserved Unreserved Nonspendable Unassigned Total general fund All Other Governmental Funds Reserved reported in: Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds Unreserved reported in: Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds Total all funds Fiscal Year 2006 2007 2008 2009 $ 153,009 $ 181,759 $ 190,825 $ 196,568 5,337,225 5,356,272 5,393,316 5,191,396 $ 5,490,234 $ 5,538,031 $ 5,584,141 $ 5,387,964 $ 1,813 $ 226,921 $ 226,973 $ 227,176 957,112 885,825 812,400 736,772 3,992,952 3,925,402 3,405,272 3,457,349 100,000 100,000 100,000 100,000 82,385 100,955 106,573 93,956 5,525,508 8,395,827 5,927,411 11,611,835 - - - (558,443) 5,378 17,023 22,224 15,824 $ 10,665,148 $ 13,651,953 $ 10,600,853 $ 15,684,469 $ 16,155,382 $ 19,189,984 $ 16,184,994 $ 21,072,433 Note: Governmental Accounting Standards Board Statement No. 54 was implemented in 2011. 106 Table 3 Fiscal Year 2010 2011 2012 2013 2014 2015 $ 181,471 $ - $ - $ - $ - $ 5,445,334 - - - - - - 165,079 180,786 176,797 253,471 220,677 - 5,440,101 5,053,031 5,209,286 5,053,064 5,725,736 $ 5,626,805 $ 5,605,180 $ 5,233,817 $ 5,386,083 $ 5,306,535 $ 5,946,413 $ 227,342- 658,875 - - - - - 2,986,102 - - - - - 100,000 - - - - - 110,471 - - - - - 12,537,841 - - - - - (1,093,765) - - - - - 12,676 - - - - - - 906,010 823,113 101,710 101,302 101,177 - 2,658,010 3,041,524 3,651,550 2,830,526 2,637,638 - 110,568 115,196 121,075 152,078 163,239 - 10,808,268 15,573,179 15,710,702 18,027,773 15,022,852 - (3,154,496) (3,262,728) (3,393,547) (375,851) (3,815,304) $ 15,539,542 $ 11,328,360 $ 16,290,284 $ 16,191,490 $ 20,735,828 $ 14,109,602 $ 21,166,347 $ 16,933,540 $ 21,524,101 $ 21,577,573 $ 26,042,363 $ 20,056,015 107 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 Debt service as a percentage of noncapital expenditures Fiscal Year 2006 2007 2008 2009 $ 8,103,263 $ 8,529,846 $ 9,095,085 $ 9,561,570 581,582 694,435 802,135 307,714 1,818,519 6,143,689 1,004,476 1,259,016 2,901,100 1,961,253 950,188 968,995 687,551 753,698 872,534 778,163 101,518 139,932 133,531 111,807 713,795 864,578 576,071 429,325 716,692 889,901 516,415 513,306 15,624,020 19,977,332 13,950,435 13,929, 896 2,614,303 1,953,960 2,058,267 1,918,246 3,314,159 3,513,460 3,806,389 4,122,352 7,755,727 8,446,911 5,542,308 1,965,640 1,076,727 1,103,021 1,033,260 1,106,006 143,653 183,346 183,024 209,466 683,036 1,107,328 1,113,232 1,005,095 835,770 2,008,073 585,875 501,806 2,155,000 1,973,000 1,749,000 1,908,000 1,011,157 937,895 1,074,052 994,809 19,589,532 21,226,994 17,145,407 13,731,420 (3,965,512) (1,249,662) (3,194,972) 198,476 28,818 54,037 13,750 35,700 6,327,000 4,375,000 209,000 4,596,000 450 - - 11,141 (13,635) (25,798) - - (7,225,000) - - - 5,811,452 2,900,249 4,763,391 1,413,985 (6,111,177) (3,019,224) (4,796,159) (1,367,863) (1,182,092) 4,284,264 189,982 4,688,963 $ (5,147,604) $ 3,034,602 $ (3,004,990) $ 4,887,439 108 16.9% 15.1% 27.6% 22.7% Table 4 Fiscal Year 2010 2011 2012 2013 2014 2015 $ 8,647,488 $ 8,655,971 $ 8,560,340 $ 8,475,214 $ 8,612,011 $ 8,950,507 330,138 322,030 319,172 431,654 407,681 551,202 1,176,863 1,331,914 5,267,570 500,963 823,025 679,627 851,270 904,522 816,998 2,130,519 1,278,202 703,141 780,044 812,604 744,633 717,300 731,640 696,501 127,203 154,020 155,956 119,079 149,653 127,803 225,677 251,244 202,825 222,810 173,422 163,497 - - - (276,276) 92,372 (50,582) 502,992 460,710 414,088 384,749 767,477 766,072 12,641,675 12,893,015 16,481,582 12,706,012 13,035,483 12,587,768 1,730,390 1,773,515 1,619,215 1,569,722 1,692,175 1,643,966 3,798,106 3,791,329 3,861,265 3,744,957 3,845,732 11,895,482 1,902,411 2,192,732 3,339,430 2,953,969 3,213,688 3,943,512 945,821 1,059,191 1,056,976 1,002,797 942,809 836,184 185,232 134,122 176,318 134,127 149,292 191,038 1,098,682 624,286 435,154 418,533 402,750 422,935 282,938 4,209,593 616,931 291,135 674,488 1,566,057 1,866,000 2,030,000 2,145,000 2,214,000 3,664,000 2,802,511 1,042,883 983,129 831,875 774,172 696,780 542,166 - - 47,054 17,137 - 62,831 12,852,463 16,797,897 14,129,218 13,120,549 15,281,714 23,906,682 (210,788) (3,904,882) 2,352,364 (414,537) (2,246,231) (11,318,914) 20,600 50,953 4,175 16,727 1,727 54,522 1,170,000 120,000 2,165,000 808,000 3,140,000 8,606,250 10,980 - - 6,558 114,960 114,960 (965,000) - - (435,000) - - - (565,000) - - - - 1,195,747 2,971,715 1,979,457 1,722,541 2,608,534 3,392,971 (1,127,625) (2,905,593) (1,910,435) (1,650,817) (2,539,240) (3,336,137) 304,702 (327,925) 2,238,197 468,009 3,325,981 8,832,566 $ 93,914 $ (4,232,807) 23.7% 18.6% $ 4,590,561 $ 22.1% 109 53,472 $ 1,079,750 $ (2,486,348) 25.3% 77.9% 14.0% CITY OF LINO LAKES, MINNESOTA 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. 110 Table 5 Total Direct Tax Rate 41.40 38.99 38.97 38.73 37.91 42.04 42.89 46.77 46.68 43.77 Commercial/ Total Taxable Payable Residential Industrial Personal Assessed Year Property Property Property Value 2006 $ 15,825,619 $ 2,740,583 $ 271,665 $ 18,837,867 2007 17,605,080 3,047,965 288,290 20,941,335 2008 18,382,645 3,431,107 279,102 22,092,854 2009 18,919,087 4,002,349 275,496 23,196,932 2010 17,978,917 3,800,004 291,904 22,070,825 2011 16,214,698 3,223,901 303,964 19,742,563 2012 14,743,557 2,945,026 310,870 17,999,453 2013 13,693,905 2,571,769 336,047 16,601,721 2014 13,646,798 2,450,473 341,974 16,439,245 2015 15,455,516 2,536,783 347,316 18,339,615 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. 110 Table 5 Total Direct Tax Rate 41.40 38.99 38.97 38.73 37.91 42.04 42.89 46.77 46.68 43.77 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS (rate per $100 of Tax Capacity) Table 6 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. 111 City Direct Rate Overlapping Rates General Centennial Total Direct Obligation School Other and Debt Total District Anoka Taxing Total Overlapping Fiscal Year Basic Rate Service Direct ISD # 12 County Districts Overlapping Tax Rate 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 2014 39.784 6.899 46.683 46.186 43.239 6.712 96.137 142.820 2015 37.819 5.951 43.770 36.562 38.123 6.021 80.706 124.476 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. 111 CITY OF LINO LAKES, MINNESOTA Table 7 PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO 2015 2006 Source: Anoka County 112 Percentage Percentage of Total of Total City City Taxable Taxable Taxable Taxable Net Tax Net Tax Net Tax Net Tax Taxpayer Capacity Rank Capacity Capacity Rank Capacity Target Corporation $ 201,790 1 1.10% $ 263,094 1 1.40 Xcel Energy 186,413 2 1.02 133,655 4 0.71 Lino Lakes Realty LLC 175,742 3 0.96 240,710 2 1.28 Moline Concrete Products 106,606 4 0.58 112,313 5 0.60 Taylor Corporation 97,498 5 0.53 110,926 6 0.59 Kohl's Department Store 96,836 6 0.53 162,956 3 0.87 Gargaro Properties LLC 85,130 7 0.46 85,878 7 0.46 Marmon/Keystone Corp 73,342 8 0.40 80,960 8 0.43 CenterPoint Energy 69,458 9 0.38 - - Lino Lakes Business Center LLC 56,928 10 0.31 78,802 9 0.42 F&G Incorporated - - 76,746 10 0.41 Total $ 1,149,743 6.27% $ 1,346,040 7.17 Source: Anoka County 112 CITY OF LINO LAKES, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS. LAST TEN FISCAL YEARS Notes: Current year levies and collections include State levy related credits. Does not include tax increment levies and collections. 113 Collected within the Taxes Levied for the Fiscal Year Fiscal Year of Levy Percentage Fiscal Operating Debt Total Tax of Year Tax Levy Tax Levy Levy Amount Levy 2006 $ 7,042,626 $ 934,281 $ 7,976,907 $ 7,594,019 95.2% 2007 7,558,995 897,333 8,456,328 8,324,180 98.4% 2008 7,973,236 893,720 8,866,956 8,581,974 96.8% 2009 8,295,172 949,166 9,244,338 8,982,756 97.2% 2010 7,816,232 879,182 8,695,414 8,400,439 96.6% 2011 7,719,240 940,760 8,660,000 8,486,845 98.0% 2012 7,192,818 1,034,441 8,227,259 8,095,502 98.4% 2013 7,190,538 1,025,090 8,215,628 8,094,911 98.5% 2014 7,098,922 1,197,122 8,296,044 8,229,986 99.2% 2015 7,490,578 1,195,494 8,686,072 8,630,830 99.4% Notes: Current year levies and collections include State levy related credits. Does not include tax increment levies and collections. 113 Collections in Subsequent Years $ 63,059 $ 105,490 129,169 194,317 182,139 124,287 71,940 60,514 31,851 Total Collections to Date 114 Outstanding Delinquent Taxes 319,829 26,658 155,813 67,265 112,836 48,868 59,817 60,203 34,207 55,242 Table 8 Percentage of Levy Outstanding 4.0% 0.3% 1.8% 0.8% 1.5% 0.9% 0.9% 1.5% 0.8% 0.6% Percentage of Amount Levy 7,657,078 96.0% $ 8,429,670 99.7% 8,711,143 98.2% 9,177,073 99.3% 8,582,578 98.7% 8,611,132 99.4% 8,167,442 99.3% 8,155,425 99.3% 8,261,837 99.6% 8,630,830 99.4% 114 Outstanding Delinquent Taxes 319,829 26,658 155,813 67,265 112,836 48,868 59,817 60,203 34,207 55,242 Table 8 Percentage of Levy Outstanding 4.0% 0.3% 1.8% 0.8% 1.5% 0.9% 0.9% 1.5% 0.8% 0.6% CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 115 Business -Type Governmental Activities Activities General General Special Other Obligation Total Fiscal Obligation Assessments Long -Term Revenue Primary Year Bonds Payable Debt Bonds Government 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 9,482,396 7,985,000 3,695,000 405,000 21,567,396 2012 10,688,221 6,780,000 3,695,000 - 21,163,221 2013 9,893,152 5,720,000 3,695,000 - 19,308,152 2014 9,227,177 7,445,000 2,080,000 - 18,752,177 2015 16,271,250 6,620,000 1,720,000 - 24,611,250 Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 115 Percentage of Assessed Market Value Table 9 Percentage of Personal Per Income Capita 1.47 3.54 $ 1,293 1.35 3.41 1,307 1.19 3.08 1,205 1.24 3.44 1,301 1.22 3.13 1,206 1.20 2.59 1,049 1.29 2.47 1,024 1.18 2.19 931 1.14 1.77 893 1.29 N/A 1,161 116 CITY OF LINO LAKES, MINNESOTA RATIOS OF NET GENERAL BONDED DEBT LAST TEN FISCAL YEARS Governmental Activities Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 117 General Special Other Total Fiscal Obligation Assessments Long -Term Primary Year Bonds Payable Debt Government 2006 $ 7,177,000 $ 13,940,000 $ - $ 21,117,000 2007 11,569,000 12,520,000 - 24,089,000 2008 11,184,000 11,365,000 - 22,549,000 2009 10,712,000 10,265,000 4,260,000 25,237,000 2010 10,141,000 9,175,000 4,260,000 23,576,000 2011 9,482,396 7,985,000 3,695,000 21,162,396 2012 10,688,221 7,095,000 3,695,000 21,478,221 2013 9,893,152 5,720,000 3,695,000 19,308,152 2014 9,227,177 7,445,000 2,080,000 18,752,177 2015 16,271,250 6,620,000 1,720,000 24,611,250 Notes: Details regarding the District's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not available after 2013 from the Bureau of Economic Analysis Report 117 Table 10 118 Less: Amounts Percentage Per Available in Debt Net of Assessed Per Capita (Total) Service Funds Bonded Debt Market Value Capita (Net) $ 1,070 $ 3,992,952 $ 17,124,048 1.24 $ 1,091 1,213 3,925,402 20,163,598 1.14 1,109 1,128 3,405,272 19,143,728 1.02 1,034 1,243 3,457,349 21,779,651 1.08 1,130 1,166 2,986,102 20,589,898 1.07 1,058 1,032 2,638,129 18,524,267 1.05 923 1,041 3,035,557 18,442,664 1.10 879 933 3,357,196 15,950,956 1.18 766 893 2,501,738 16,254,262 0.99 774 1,161 2,813,226 21,798,024 1.29 1,028 118 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2015 Overlapping: Anoka County ISD 12 ISD 624 ISD 831 Metropolitan Council Rice Creek Watershed District Anoka County Railroad Authority Total Overlapping City of Lino Lakes Direct Debt Total Direct and Overlapping Debt: Debt Outstanding $ 118,321,284 96,173,685 93,420,000 30,325,000 1,419,891,649 200,000 52,600,000 $ 24,611,250 Estimated Percentage Applicable 6.3% 45.2% 3.3% 7.0% 0.6% 33.2% 6.3% Table 11 Estimated Share of Overlapping Debt $ 7,409,135 43,480,557 3,097,231 2,133,471 8,096,348 66,309 3,293,748 67,576,799 100% 24,611,250 $ 92,188,049 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. 119 CITY OF LINO LAKES, MINNESOTA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS Total net debt applicable to the limit as a percentage of debt limit 12.49% 10.48% 6.27% 5.69% 120 Fiscal Year 2006 2007 2008 2009 Debt limit $ 34,686,356 $ 38,556,150 $ 60,658,830 $ 64,036,746 Total net debt applicable to limit 4,332,000 4,039,000 3,804,000 3,642,000 Legal debt margin $ 30,354,356 $ 34,517,150 $ 56,854,830 $ 60,394,746 Total net debt applicable to the limit as a percentage of debt limit 12.49% 10.48% 6.27% 5.69% 120 Table 12 Legal Debt Margin Calculation for Fiscal Year 2015 Market value $ 1,694,366,064 Debt limit (3% of market value) 50,830,982 Debt applicable to limit 11,941,250 Legal debt margin $ 38,889,732 Fiscal Year 2010 2011 2012 2013 2014 2015 $ 60,622,086 $ 54,123,645 $ 45,595,717 $ 45,595,717 $ 45,297,635 $ 50,830,982 3,386,000 2,961,000 4,280,000 4,280,000 4,191,000 11,941,250 $ 57,236,086 $ 51,162,645 $ 41,315,717 $ 41,315,717 $ 41,106,635 $ 38,889,732 5.59% 5.47% 9.39% 9.39% 9.25% 23.49% 121 CITY OF LINO LAKES, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Table 13 Per (2) Capita (3) Personal Personal School Income Fiscal (1) (thousands Year Population of dollars) 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 20,833 879,903 2014 21,129 917,252 2015 21,200 N/A Table 13 Per Capita (3) (4) Personal School Unemployment Income Enrollment Rate $ 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 42,236 6,392 4.5 43,412 6,410 3.4 N/A 6,371 3.3 Source: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2014 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 122 CITY OF LINO LAKES, MINNESOTA Table 14 PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO 2015 2006 Source: City of Lino Lakes Official Statements/Employer Surveys 123 (1) (1) Percentage Percentage of Total of Total Employer Employees Rank Employment Employees Rank Employment State of Minnesota Corrections 447 1 N/A % 450 1 N/A % ISD 12 - Centennial Schools 391 2 N/A - - N/A Target Corporation 200 3 N/A 230 2 N/A Curtis 1000 162 4 N/A - - N/A Taylor Corporation 160 5 N/A - - N/A Anoka County Juvenile Center 130 6 N/A 150 7 N/A Molin Concrete Products 130 7 N/A 163 6 N/A Rehbein Transit, Inc. 130 8 N/A - - N/A Kohls 123 9 N/A 115 10 N/A YMCA 120 10 N/A - - N/A AdGraphics - - N/A 200 3 N/A Synovis Interventional Systems - - N/A 180 4 N/A Summit Fire Protection - - N/A 175 5 N/A Nol-Tech Systems, Inc - - N/A 65 8 N/A Customer Manufacturing - - N/A 50 9 N/A Total 1,993 - % 1,778 - % Source: City of Lino Lakes Official Statements/Employer Surveys 123 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 Fire Building Inspection Total Public Safety Public Works Streets Other Total Public Works Parks, Recreation and Forestry Water Sewer Total Source: City Finance Office Fiscal Year 2006 2007 2008 2009 2010 5.00 5.00 5.00 5.00 4.00 0.63 0.63 0.63 0.63 0.63 3.50 3.50 3.50 3.50 3.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.75 2.75 2.75 2.75 2.25 1.00 1.00 1.00 1.00 1.00 1.15 1.40 1.40 1.40 1.40 17.03 17.28 17.28 17.28 15.28 26.00 26.00 27.00 27.00 27.00 4.75 4.75 4.75 4.75 4.25 4.25 4.25 4.25 4.25 2.75 35.00 35.00 36.00 36.00 34.00 6.85 7.35 7.35 7.35 6.85 1.15 1.15 1.15 1.15 1.15 8.00 8.50 8.50 8.50 8.00 9.55 9.80 9.80 9.80 9.30 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 73.88 74.88 75.88 75.88 70.88 124 Table 15 7.00 7.00 Fiscal Year 7.00 7.00 2011 2012 2013 2014 2015 3.50 3.50 3.50 3.50 3.50 3.00 3.00 3.00 3.00 3.00 1.00 1.00 - - - 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 0.70 0.70 0.70 0.70 0.70 11.20 11.20 10.20 10.20 10.20 25.00 25.00 25.00 25.00 26.00 4.00 3.00 3.00 4.00 4.00 - - - 1.00 1.00 2.50 2.50 2.50 2.00 2.00 31.50 30.50 30.50 32.00 33.00 7.00 7.00 7.00 7.00 7.00 1.00 1.00 1.00 1.00 1.00 8.00 8.00 8.00 8.00 8.00 9.00 9.00 8.70 8.70 8.70 2.15 2.15 2.30 2.30 2.30 2.15 2.15 2.30 2.30 2.30 64.00 63.00 62.00 63.50 64.50 125 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN YEARS 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 126 Fiscal Year Function/Program 2006 2007 2008 2009 2010 General Government Elections 2 1 2 1 2 Registered Voters 11,618 10,908 12,723 11,805 12,284 Number of Votes Cast 8,284 2,337 11,051 4,354 8,545 Voter Participation (Registered) 71.3% 21.4% 86.9% 36.9% 69.6% Public Safety Police: Calls for Service 6,990 7,053 6,871 6,353 6,398 Traffic Citations & Warnings 5,964 3,805 3,252 3,187 2,743 Part I Crimes 3,372 1,279 1,461 1,075 982 Part II Crimes 4,890 3,432 3,767 3,151 2,911 Inspections: Building Permits (1) 686 2,297 5,041 1,535 509 Value of Building Permits $ 42,078,007 $ 30,539,559 $ 15,852,780 $ 9,586,160 $ 11,295,493 Public Works General Maintenance (hours) 5,692 6,758 6,129 5,870 4,945 Street Maintenance (hours) 3,631 2,916 3,851 3,267 3,099 Fleet Maintenance (hours) 4,460 4,144 5,043 4,782 4,850 Snow Plowing/Sanding (hours) 867 1,425 1,353 950 1,638 Culture and Recreation Parks: Park Maintenance (hours) 10,368 10,939 11,136 12,406 9,257 Utilities Water Maintenance (hours) 4,387 4,256 5,716 5,041 3,560 Sanitary Sewer Maintenance (hours) 3,347 4,148 3,760 3,486 3,531 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 126 Table 16 Fiscal Year 2011 2012 2013 2014 2015 1 2 1 2 1 11,705 13,478 12,020 12,610 12,143 4,314 11,546 1,575 7,854 4,085 36.9% 85.7% 13.1% 62.3% 33.6% 6,384 6,344 6,210 6,210 6,210 2,604 2,694 2,597 2,597 2,199 1,117 N/A N/A N/A N/A 2,911 N/A N/A N/A N/A 452 459 490 431 654 $ 11,295,493 $ 10,751,626 $ 17,683,665 $ 13,535,514 $ 26,570,593 7,416 6,939 3,994 5,200 7,839 4,352 5,926 5,740 3,840 3,347 4,214 3,945 4,548 4,746 4,322 1,534 594 1,639 2,141 754 9,813 9,739 8,480 8,537 8,332 3,568 3,585 3,119 3,189 3,240 3,557 3,517 3,109 3,178 3,240 127 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM LAST TEN YEARS Function/Program 2006 2007 Public Safety 5 5 Police: 18 673 Stations 1 1 Patrol Units 12 12 Fire (Joint Powers): 7 6 Stations in City 1 1 Fire Trucks 5 5 Public Works 4 4 Lights 673 673 Vehicles 29 29 City Streets (miles) 96 96.1 Culture and Recreation 1 1 Parks: 5 5 Parks 18 673 Park Acres 141 29 Trails (miles) 20 100.71 Park Shelters 7 6 Basketball Courts 6 1 Fishing Pier I 1 Skating Rinks 4 4 Soccer Fields 8 8 Baseball/Softball Fields 20 20 Tennis Courts 2 20 Playgrounds 16 2 Water 16 16 Distribution System (miles) 51.1 6 Water Connections 4,090 4, Gallons Pumped (millions) 565 4,340 Number of Fire Hydrants 538 590 Water Tower Capacity (millions gallons) 2 538 Sanitary Sewer 538 538 Collection System (miles) 63.3 6 Sewer Connections 4,282 4, Storm Sewer 69.8 428 Pipe (miles) 34.1 3 Source: Various City Departments 41.4 41.4 128 Fiscal Year 2008 2009 2010 1 1 1 12 12 12 1 1 1 5 5 5 673 673 673 29 29 29 100.71 100.71 100.71 18 18 18 18 141 141 141 141 26 26 26 26 7 7 7 7 6 6 6 6 1 1 1 1 4 4 4 4 8 8 8 8 20 20 20 20 2 2 2 2 16 16 16 16 4.7 74.7 74.7 74.7 112 4,247 4,340 4,382 595 590 589 498 538 538 538 538 2 2 2 2 4.5 69.8 69.8 69.8 428 4,447 4,486 4,530 4.3 41.4 41.4 41.4 Table 17 18 18 Fiscal Year 18 18 2011 2012 2013 2014 2015 l 1 1 1 1 12 12 12 12 12 1 1 1 1 2 5 5 5 5 7 673 673 673 673 673 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 6 6 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 4,424 4,424 4,484 4,520 4,520 492 609 536 536 449 538 538 538 538 1024 2 2 2 2 2 69.8 69.8 69.8 69.8 77.9 4,567 4,567 4,624 4,685 4,685 41.4 41.4 41.4 41.4 41.4 129