HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2016COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2016
Prepared By: Finance Department
Sarah Cotton, Director of Finance
Paula Schloer, Accountant
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Organization Chart
Principal City Officials
FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government -Wide Financial Statements:
Statement of Net Position
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position
Statements of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balance of Governmental Funds to the Statement of Activities
Statement of Net Position - Proprietary Funds
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Statement of Net Position - Fiduciary Funds
Notes to Financial Statements
Required Supplementary Information:
Budgetary Comparison Schedule -
General Fund
Schedule of Funding Progress -
Retiree Health Plan
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund
Schedule of Pension Contributions -
General Employees Retirement Fund
Page
Reference No.
3
8
9
10
13
17
Statement 1 31
Statement 2 32
Statement 3 34
Statement 4 37
Statement 5
38
Statement 6
40
Statement 7
41
Statement 8 42
Statement 9 43
Statement 10 44
45
Statement 11
86
Statement 12
92
Statement 13
93
Statement 14
94
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference
No.
Schedule of Proportionate Share of Net Pension Liability -
Public Employees Police and Fire Fund
Statement 15
95
Schedule of Pension Contributions -
Public Employees Police and Fire Fund
Statement 16
96
Schedule of Changes in the Net Pension Liability and Related Ratios -
Lino Lakes Public Safety Department - Fire Division
Statement 17
97
Schedule of Contributions -
Lino Lakes Public Safety Department - Fire Division
Statement 18
98
Notes to RSI
99
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds
Statement 19
106
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds
Statement 20
107
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 21
110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds
Statement 22
111
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 23
115
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds
Statement 24
119
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 25
127
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonrnajor Capital Project Funds
Statement 26
130
Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Statement 27
134
Statement of Changes in Assets and Liabilities - Agency Funds
Statement 28
135
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
OTHER INFORMATION (UNAUDITED)
Schedule of Long -Term Debt
Reference
No.
STATISTICAL SECTION (UNAUDITED)
Exhibit 2
172
Financial Trends:
Exhibit 3
174
Net Position by Component
Table 1
140
Changes in Net Position
Table 2
142
Fund Balances, Governmental Funds
Table 3
146
Changes in Fund Balances, Governmental Funds
Table 4
148
Revenue Capacity:
Assessed and Actual Value of Taxable Property
Table 5
150
Direct and Overlapping Property Tax Capacity Rates
Table 6
151
Principal Property Taxpayers
Table 7
153
Property Tax Levies and Collections
Table 8
154
Debt Capacity:
Ratios of Outstanding Debt by Type
Table 9
156
Ratios of Net General Bonded Debt
Table 10
158
Direct and Overlapping Governmental Activities Debt
Table 11
160
Legal Debt Margin Information
Table 12
161
Demographic and Economic Information:
Demographic and Economic Statistics
Table 13
162
Principal Employers
Table 14
163
Operating Information:
Full -Time Equivalent City Government Employees By Function/Program
Table 15
164
Operating Indicators by Function/Program
Table 16
166
Capital Asset Statistics by Function/Program
Table 17
168
OTHER INFORMATION (UNAUDITED)
Schedule of Long -Term Debt
Exhibit 1
170
Schedule of Deferred Tax Levies
Exhibit 2
172
Debt Service Payments to Maturity
Exhibit 3
174
Insurance in Force
Exhibit 4
178
Taxable Valuations, Tax Levies and Tax Rates
Exhibit 5
179
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INTRODUCTORY SECTION
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i
Y
CITY:R ., r0F
May 30, 2017
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Minnesota State law requires that cities over 2,500 population publish within six months of the close of
each fiscal year a complete set of financial statements presented in conformity with generally accepted
accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a
firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of the City of Lino Lakes,
Minnesota for the fiscal year ended December 31, 2016.
This report consists of management's representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City of Lino Lakes has established a comprehensive internal control framework that is
designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the City of Lino Lakes' financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the City's comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance that
the financial statements will be free from material misstatement. As management, we assert that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Lino Lakes' financial statements have been audited by Redpath and Company, Ltd., a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the City for the fiscal year ended December 31, 2016, are free of material
misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements; assessing the accounting principles used and significant
estimates made by management; and evaluating the overall financial statement presentation. The
independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an
unmodified opinion that the City's financial statements for the fiscal year ended December 31, 2016, are
fairly presented in conformity with GAAP. The independent auditors' report is presented as the first
component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino
Lakes' MD&A can be found immediately following the report of the independent auditors.
600 Town Center Parkway — Lino Lakes, MN 55014-1189
City Hall: 651-982-2400 — www.ci.lino-lakes.mn.us
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County
of Anoka. It covers an area of 33 square miles and has a population of approximately 20,750. The population
has more than doubled from the 1990 census figure of 8,807 and has grown by 23.5% since 2000. Within
the City's borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and
Minneapolis is provided by 1-35W 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, fire and building inspection), public services (streets, fleet, parks and recreation),
conservation of natural resources (environmental and solid waste abatement), community development,
public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two
enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All divisions
are required to submit appropriations requests to the City administrator for review and consolidation into a
proposed budget. The City administrator is responsible for submitting the proposed annual budget to the
City Council in August of each year. The city council is required to hold a public hearing on the proposed
budget and to adopt by resolution a final budget and certify it no later than December 28. The budget
amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the
estimate. Division directors may make transfers of appropriations within a department, but transfers of
appropriations between departments require council approval. Budget -to -actual comparisons for the general
fund and the recreation program fund, the only funds for which an annual budget has been adopted, are
provided in Statements 11 and 27, respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from
the broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of
three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the
Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and
distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007
the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive
interchange, was developing at a rapid pace. Super Target and Kohl's anchor the shopping center quadrant,
while Apollo Business Park brought approximately 1,000 new employees to the area. Land was purchased
by Anoka County on a third quadrant for future development of a regional library. Due to economic
conditions, the County has pushed back construction of the library to a future date.
4
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 1-3 5W Interchange improvement was financed through the joint efforts of
MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment
bonds and will use tax increment financing and Minnesota State Aid funds to finance its portion of the
project cost.
In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed
to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the
interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through
Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is
being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation
Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011.
With both major interstate interchanges complete, the City is preparing for development of several hundred
acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension of Otter
Lake Road North east of I -35E and planning for the extension of 21S` 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 135-E at CSAH 14 and 21'
Avenue.
Development activities continued to increase in 2016. Residential permits were the highest since 2007
and commercial development showed signs of recovery as new construction activities and development
planning emerged. The City recently approved preliminary plans for a 876 -unit residential development
by Mattamy Homes, Inc. Mattamy is currently working with another national developer on the sale of the
property. In addition, DR Horton, Inc. entered into a purchase agreement with the City for 11 acres of
Factors Affecting Financial Condition (Continued)
land in the Legacy at Woods Edge development, and the 112 -unit residential development received final
approval in September 2016. DR Horton is currently working on their second phase of the development.
Developers also broke ground on the 56 -acre Clearwater Creek Business Park in 2016. This development
includes the construction of a 402,000 square -foot building providing warehousing and fulfillment
services.
Long-term financial planning. The City's currently adopted five-year financial plan identifies street and
utility improvements totaling $26,590,408 over the five-year period. These improvements are anticipated
to be funded through a number of funding sources, including special assessments, municipal state aid road
funds, the area and unit trunk fund, the stormwater management fund and voter -approved tax levies. The
five-year plan also includes funding projections for operations and operating impacts for the five-year
period. This plan is in the process of being revised to reflect the anticipated activity through the year 2021.
Relevant Financial Policies
The City uses a variety of financial policies to guide its fiscal actions and ensure fiscal stability.
Fund balance policy. The City had adopted a Fund Balance policy which identified the required designated
amounts in the Fund Balance of the General Fund at fiscal year-end and directed the transfer of any excess
revenues to other funds for specific purposes, as identified annually. For the year ended December 31, 2011
and subsequent years, the City amended its Fund Balance policy to conform to the requirements of GASB
54. The new policy targets the unassigned fund balance of the general fund in a range of 40% to 50% of
budgeted general fund expenditures and other financial uses. In addition, fund balances are classified in
compliance with GASB 54 according to the hierarchy of usable fund balance resources. The unassigned
general fund balance as of December 31, 2016 was $6,031,077 which is 61% of general fund budgeted
expenditures and other financing uses for the year.
Cash management policies and practices. The City's policy is to invest all available moneys at
competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market
risks while maintaining a competitive yield. Funds are invested in certificates of deposit, state and local
securities, and U.S. government agencies. Cash is pooled in one account to provide maximum return. The
City Council reviews the investment policy annually.
The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either
insured by Federal depository insurance or were collateralized as required by State Statute. Due to the
weakened economy, a historically low interest rate environment has persisted over the last several years
and has had a dramatic impact on the city's investment earnings. The average interest income yield on
investments for 2016 was 0.75%. Total investment income also includes positive or negative changes in
the fair value of investments. Changes in fair value of investments during the current year resulted in
unrealized gains of $17,588, or 0.04%, for a total investment yield of 0.79%. The changes in fair value
during the current year, however, do not necessarily represent trends that will continue; nor is it always
possible to realize such amounts, especially in the case of temporary changes in the fair value of investments
the City intends to hold to maturity. It is the City's practice to purchase and hold investments to maturity
and, accordingly, changes in fair value over the term of the City's investments are expected to net to book
value.
6
Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards the
Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. The City
of Lino Lakes received this award for its comprehensive annual financial report for the year ended
December 31, 2015. This marks the twenty-first consecutive year the City has received this prestigious
award. A governmental unit must publish an easily readable and efficiently organized comprehensive
annual financial report, the contents of which conform to program requirements. This report must satisfy
both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2016 report
to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We
believe our current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of
the Finance Department, auditors and other city staff. I want to express my appreciation to the Mayor and
City Council for their support for maintaining the highest standard of professionalism in the management
of the financial operation of the City.
Respectfully submitted,
�Iwo� V��o
Sarah R. Cotton
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2015
Executive Director/CEO
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CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2016
Mayor: Jeff Reinert
Councilmembers: William Kusterman
Rob Rafferty
Melissa Maher
Michael Manthey
City Administrator: Jeff Karlson
Directors:
Community Development Michael Grochala
Finance Sarah Cotton
Public Safety John Swenson
Public Services Richard DeGardner
10
Term Expires
December 31, 2017
December 31, 2017
December 31, 2017
December 31, 2019
December 31, 2019
Appointed
Appointed
Appointed
Appointed
Appointed
FINANCIAL SECTION
11
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12
A N S C O M P A N V
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the
City of Lino Lakes, Minnesota, as of and for the year ended December 31, 2016, and the related
notes to the financial statements, which collectively comprise the City of Lino Lakes,
Minnesota's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business -type activities, each
major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota,
as of December 31, 2016, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, the budgetary comparison information, the schedule of
funding progress, and the schedules of pension information, as listed in the table of contents, be
presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Lino Lakes, Minnesota's basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and
schedules, statistical section and other information are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
14
financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
The introductory section, the statistical section and other information have not been subjected to
the auditing procedures applied in the audit of the basic financial statements and, accordingly,
we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May
30, 2017, on our consideration of the City of Lino Lakes, Minnesota's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Lino Lakes, Minnesota's internal
control over financial reporting and compliance.
pupetk " ! +
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 30, 2017
15
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16
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the
City's financial statements this narrative overview and analysis of the financial activities of
the City for the fiscal year ended December 31, 2016. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished
in our letter of transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$88,543,987 (net position). Of this amount, $24,743,181 (unrestricted net position) may be
used to meet the City's ongoing obligations to citizens and creditors in accordance with the
City's fund designations and fiscal policies.
The City's total net position increased by $3,989,369.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $27,830,769, an increase of $7,774,754. Of this amount, $6,502,424
is restricted by external constraints established by creditors, grantors, contributors, or by state
statutory provisions.
At the end of the current fiscal year, the general fund balance was $6,256,191. Unassigned
fund balance for the general fund was $6,031,077, or 63% of total general fund expenditures
and other financing uses.
Total outstanding debt increased by $3,023,790 during 2016. However, refunding bonds in
the amount of $3,575,000 were issued during November 2016, the proceeds from which were
used to pay off two bonds on February 1, 2017.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City's basic
financial statements. The City's basic financial statements comprise three components: 1)
government -wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government -wide financial statements. The government -wide financial statements are
designed to provide readers with a broad overview of the City's finances, in a manner similar
to a private -sector business.
The Statement of Net Position presents information on all of the City's assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
17
Management's Discussion and Analysis
decreases in net position may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position
changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but
unused vacation leave).
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business -type activities). The governmental activities of the
City include general government, public safety, public services, conservation of natural
resources and community development. The business -type activities of the City include a
water utility and sewer utility.
The government -wide financial statements are statements 1 and 2 of this report.
Fund Financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance -related legal requirements. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government -wide
financial statements. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
18
Management's Discussion and Analysis
The City maintains four individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balance for the following major funds:
• General Fund
• G.O. Improvement Bonds of 2005A — Debt Service Fund
• G.O. Improvement Notes of 2009A — Debt Service Fund
• Area and Unit Charge — Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and its Program
Recreation special revenue fund. A budgetary comparison schedule has been provided for
those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are statements 3 through 6 of this report.
Proprietary funds. The City maintains two enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City uses enterprise funds to
account for its water and sewer utilities.
The proprietary fund statements provide the same type of information as the government -
wide financial statements, only in more detail. The proprietary fund financial statements
provide separate information for the water and sewer funds, which are considered to be major
funds of the City. The basic proprietary fund financial statements are statements 7 through 9
of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held by the City as an
agent for individuals, private organizations, or other governments. Fiduciary funds are not
reflected by the government -wide financial statements because the resources of those funds
are not available to support the City's own programs.
The basic fiduciary fund statements are Statements 10 and 28.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government—wide and fund financial
statements. The notes to the financial statements can be found following Statement 10.
Other information. The combining statements referred to earlier in connection with non -
major governmental funds are presented immediately following the required supplementary
information. Combining and individual fund statements and schedules are presented as
Statements 19 through 27.
19
Management's Discussion and Analysis
Government -Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets exceeded liabilities by $88,543,987 at the
close of the most recent fiscal year.
The largest portion of the City's net position ($50,457,954, or 57%) reflects its net
investment in capital assets (e.g. land, buildings, equipment, and infrastructure) less any
related debt used to acquire those assets that is still outstanding. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Assets:
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Liabilities:
Long-term liabilities outstanding
Other liabilities
Total liabilities
Deferred inflows of resources
Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
City of Lino Lakes' Net Position
Governmental Activities
2016 2015
Business -Type Activities
2016 2015
Totals
2016 2015
$37,480,144 $32,222,786 $14,501,253 $14,881,531 $51,981,397 $47,104,317
41,154,425 41,228,037 31,860,610 29,127,829 73,015,035 70,355,866
$78,634,569 $73,450,823 $46,361,863 $44,009,360 $124,996,432 $117,460,183
$8,780,333 $985,081 $168,302 $11,660 $8,948,635 $996,741
$34,049,287 $27,144,998 $433,812 $111,802 $34,483,099 $27,256,800
8,999,568 5,900,707 322,072 101,355 9,321,640 6,002,062
$43,048,855 $33,045,705 $755,884 $213,157 $43,804,739 $33,258,862
$1,546,117 $636,040 $50,224 $7,404 $1,596,341 $643,444
$18,597,344 $18,230,746 $31,860,610 $29,127,829 $50,457,954 $47,358,575
13,342,852 8,635,293 13,342,852 8,635,293
10,879,734 13,888,120 13,863,447 14,672,630 24,743,181 28,560,750
$42,819,930 $40,754,159 $45,724,057 $43,800,459 $88,543,987 $84,554,618
$13,342,852 of the City's net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position
($24,743,181) may be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business -type activities.
20
Management's Discussion and Analysis
The City's net position increased by $3,989,369 during 2016. Key elements of this increase
are as follows:
City of Lino Lakes' Changes in Net Position
Expenses:
Governmental Activities
Business -Type
Activities
Totals
2016
2015
2016
2015
2016
2015
Revenues:
Public safety
6,567,523
5,135,865
6,567,523
Program revenues:
Public services
6,228,893
7,971,712
6,228,893
Charges for services
$2,744,984
$1,722,872
$2,754,219
$2,636,469
$5,499,203
$4,359,341
Operating grants and contributions
722,858
526,107
-
263,024
722,858
789,131
Capital grants and contributions
5,046,307
1,176,732
1,543,947
3,035,031
6,590,254
4,211,763
General revenues:
Water
-
-
1,367,693
1,394,897
1,367,693
General property taxes
9,049,671
8,874,910
-
-
9,049,671
8,874,910
Tax increment
293,829
267,286
16,375,183
3,218,655
293,829
267,286
Grants and contributions not
Increase in net position before
restricted to specific programs
91,385
5,363
-
-
91,385
5,363
Unrestricted investment earnings
210,142
112,961
107,119
51,167
317,261
164,128
Gain on disposal of capital assets
66,255
17,836
-
-
66,255
17,836
Total revenues
18,225,431
12,704,067
4,405,285
5,985,691
22,630,716
18,689,758
Expenses:
General government
2,456,864
2,016,351
2,456,864
2,016,351
Public safety
6,567,523
5,135,865
6,567,523
5,135,865
Public services
6,228,893
7,971,712
6,228,893
7,971,712
Conservation of naturual resources
216,905
186,111
216,905
186,111
Community development
454,144
432,268
454,144
432,268
Interest and fees on long-term debt
831,529
632,876
-
-
831,529
632,876
Water
-
-
1,367,693
1,394,897
1,367,693
1,394,897
Sewer
-
-
1,850,962
2,089,842
1,850,962
2,089,842
Total expenses
16,755,858
16,375,183
3,218,655
3,484,739
19,974,513
19,859,922
Increase in net position before
special item and transfers
1,469,573
(3,671,116)
1,186,630
2,500,952
2,656,203
(1,170,164)
Special item
1,333,166
-
-
-
1,333,166
Transfers
(914,414)
66,834
914,414
(66,834)
-
Change in net position
1,888,325
(3,604,282)
2,101,044
2,434,118
3,989,369
(1,170,164)
Net position - January 1, as previously reported
40,754,159
48,734,868
43,800,459
41,444,300
84,554,618
90,179,168
Prior period adjustment
177,446
(4,376,427)
(177,446)
(77,959)
-
(4,454,386)
Net position - January 1, as restated
40,931,605
44,358,441
43,623,013
41,366,341
84,554,618
85,724,782
Net position - December 31
$42,819,930
$40,754,159
$45,724,057
$43,800,459
$88,543,987
$84,554,618
Governmental Activities
Governmental activities increased the City's net position by $1,888,325 during 2016. The
cumulative effect of increased Capital Grants and Contributions, partially offset by increases
in general government and public safety expenses, and decreased public services spending
account for this increase in 2016. In addition, as a result of the City withdrawing from the
Centennial Fire district the City received $1,333,166 of cash and equipment, further
increasing the net position. This increase was partially offset by transfers out to business -
type activities of $914,414.
21
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Governmental Activities -Revenues
Unrestricted mestmen[
earnings
I/
General property taxes
463'0
Public
3
Governmental Activities - Expenses
Imerest and Fees on Long- Gmerat govemment
Comffl vntinn of Nanval
its and
inns
22
393'0
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased the City's net position by $2,101,044 during 2016.
Contributions of capital assets from private sources, as well as the City's governmental
activities, totaled $2,737,582 during the year. This revenue was partially offset by net
operating losses ($294,937) and transfers out to governmental activities ($279,221).
Below are specific graphs which provide comparisons of the business -type activities
revenues and expenses:
Business -Type Activities - Revenues
I h—[Tiaul in M-1
CHIU11¢5
2%
[3gWW f, 1, _d
cowntuudoo
35%
Ch.L— fc.:u+rnux
63%
Business -Type Activities - Expenses
H'x[er
}2'0
Sewer
58%a
23
Management's Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City's governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City's financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government's net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $27,830,769. Approximately 23% of this total amount ($6,502,424)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $326,334 of fund balance is not in a spendable
form, $170,950 has been committed, $15,778,480 has been assigned, and $5,052,581 is
unassigned.
The fund balance of the General Fund increased by $309,778 in 2016, while the City
anticipated the use of $423,000 of the general fund balance. Overall, signs of continued
economic recovery are being seen with increased building and development activities taking
place which resulted in increased license and permit revenues for the year. In addition,
reduced expenditures, primarily for personal services through vacant positions, fuel costs,
and professional services helped to increase the year end fund balance.
The G.O. Improvement Bonds of 2005A fund balance increased by $2,566,307 due to the
receipt of $1,975,000 of refunding bond proceeds and $996,679 of tax forfeit land received
and sold in lieu of special assessments. On February 1, 2017, the fund made a debt service
payment of approximately $2,420,000.
The G.O. Improvement Note of 2009A fund, to service the debt issued by Anoka County as
the City's financial commitment for the I -35E interchange project, ended the year with a fund
balance of $22, a decrease of $7,362. Special assessment revenue and transfers in are meant
to approximate the fund's debt service commitment each year. The outstanding balance on
the note as of December 31, 2016 was $1,345,000.
The Area and Unit Charge fund has a total fund balance of $6,266,200, all of which is
assigned for financing capital improvements. The fund balance during the current year
increased by $1,843,595 due to the collection of prepaid special assessments and trunk utility
development fees.
The combined fund balance of other governmental funds increased $3,062,436 during 2016.
Primary reasons for the increase include the issuance of $1,600,000 of G.O. Tax Abatement
Refunding Bonds, Series 2016C, the proceeds from which were used to pay-off the G.O. Tax
Abatement Bonds of 2006C on February 1, 2017. Also, the fund balance of the G.O. Bond
Fund of 2014A increased $858,219 as special assessment collections significantly exceeded
debt service payments during 2016.
24
Management's Discussion and Analysis
Proprietary funds. The City's proprietary funds provide the same type of information
found in the government -wide financial statements, but in more detail.
The water fund has total net position at year-end of $22,019,271, of which $4,883,004 is
unrestricted. The increase in net position of $1,706,346 was primarily due to capital
contributions, partially offset by a net operating loss.
The sewer fund has total net position at year-end of $23,704,786, of which $8,980,443 is
unrestricted. The increase in net position of $394,698 was primarily due to capital
contributions, partially offset by a net operating loss and transfers out of the fund.
Budgetary Highlights
General Fund
The General Fund budget was amended several times during the year to reflect increased
revenues in building activities, police state aid, and other fines and fees, as well as changes in
expenditure areas due to personnel vacancies, changes to professional and contracted
services, variances in supplies, tools, and fuel, and finally the transfer for the park land loan.
The final amended expenditure budget was $317,388 less than the original adopted budget.
Revenues were $185,564 over budget for the year. General property tax and
intergovernmental state grant revenues were $50,529 under budget; however, this variance
was more than offset by greater than anticipated license and permit revenues, public safety
charges for services, and miscellaneous refunds and reimbursements.
Expenditures came in under budget by $115,428 due to many factors including lower than
expected personal service costs from vacant positions. Fuel and fleet maintenance supply
costs were much lower than anticipated and contracted services was lower overall from
budgeted levels primarily due to favorability in the streets, parks, and planning and zoning
departments.
Capital Asset and Debt Administration
Capital assets. The City's investment in capital assets for its governmental and business -
type activities as of December 31, 2016, amounted to $73,015,035 (net of accumulated
depreciation), an increase of $2,659,169 from the prior year. This investment in capital
assets includes land, construction in progress, buildings, equipment, vehicles, and
infrastructure. The City has continued to work to complete the Shenandoah Area Street
Improvements, NorthPointe 2nd Addition infrastructure improvements, Fire Station #2, Pump
House #6, and the Birch Street turn lanes and infrastructure improvements in 2016. In
addition, the City began the reconditioning of Water Tower #1, Aqua Lane to Blackduck
Drive water main improvements, and the upgrade of the air conditioning system at the Civic
Complex. Developer lead infrastructure improvements at various stages of completion
25
Management's Discussion and Analysis
include NorthPointe Yd and 4th Additions, Saddle Club 2nd Addition, Century Farms 6th
Addition, and Woods Edge.
City of Lino Lakes' Capital Assets
(Net of Depreciation)
Additional information on the City's capital assets can be found in Note 5 to the financial
statements.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $27,741,081. Of this amount, $18,460,250 comprises tax supported debt and
$7,795,000 is special assessment debt. All outstanding debt carries the general obligation
backing for which the City is liable in the event of default by the property owners subject to
the specific taxes, special assessments or revenues pledged to the retirement of the debt. In
addition, the City carries a note to Anoka County for its share of the cost of the 1-35E /
County Road 14 Interchange project in the amount of $1,345,000 and a note payable to the
City of Circle Pines for its share of the cost of capital equipment to be used by the North
Metro Telecommunications Commission in the operation of a cable communications system
in the amount of $264,000.
City of Lino Lakes' Outstanding Debt
Governmental Activities
Business -Type
Activities
Totals
2016
2015
2016
2015
2016
2015
2016
2015
Land
$3,275,859
$3,275,859
$ -
$ -
$3,275,859
$3,275,859
Construction in progress
8,961,062
7,268,375
5,617,436
1,830,071
14,578,498
9,098,446
Buildings
2,706,355
2,802,413
-
-
2,706,355
2,802,413
Office equipment and furniture
157,704
133,963
-
157,704
133,963
Vehicles
1,370,732
1,141,371
-
-
1,370,732
1,141,371
Machinery and shop equipment
1,017,332
1,109,527
167,440
152,886
1,184,772
1,262,413
Other equipment
206,385
193,122
-
-
206,385
193,122
Infrastructure
23,458,996
25,303,407
26,075,734
27,144,872
49,534,730
52,448,279
Total
$41,154,425
$41,228,037
$31,860,610
$29,127,829
$73,015,035
$70,355,866
Additional information on the City's capital assets can be found in Note 5 to the financial
statements.
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $27,741,081. Of this amount, $18,460,250 comprises tax supported debt and
$7,795,000 is special assessment debt. All outstanding debt carries the general obligation
backing for which the City is liable in the event of default by the property owners subject to
the specific taxes, special assessments or revenues pledged to the retirement of the debt. In
addition, the City carries a note to Anoka County for its share of the cost of the 1-35E /
County Road 14 Interchange project in the amount of $1,345,000 and a note payable to the
City of Circle Pines for its share of the cost of capital equipment to be used by the North
Metro Telecommunications Commission in the operation of a cable communications system
in the amount of $264,000.
City of Lino Lakes' Outstanding Debt
The City of Lino Lakes' total bonded debt increased by $3,023,790 during the current fiscal
year. The key factors for the change include the issuance of $469,000 of Certificates of
Indebtedness to finance capital equipment purchases, $1,420,000 of General Obligation
Utility Revenue Bonds to fund Aqua Lane to Black Duck Drive trunk water main
improvements, $1,975,000 of Taxable General Obligation Refunding Bonds to refinance the
26
Governmental Activities
Business -Type Activities Totals
2016
2015
2016 2015 2016
2015
General obligation bonds
$18,460,250
$16,406,250
$ - $ - $18,460,250
$16,406,250
G.O. special assessment bonds
7,795,000
6,485,000
- - 7,795,000
6,485,000
Note payable - Anoka County
1,345,000
1,720,000
- - 1,345,000
1,720,000
Bond premium
140,831
106,041
- - 140,831
106,041
Total
$27,741,081
$24,717,291
$0 $0 $27,741,081
$24,717,291
The City of Lino Lakes' total bonded debt increased by $3,023,790 during the current fiscal
year. The key factors for the change include the issuance of $469,000 of Certificates of
Indebtedness to finance capital equipment purchases, $1,420,000 of General Obligation
Utility Revenue Bonds to fund Aqua Lane to Black Duck Drive trunk water main
improvements, $1,975,000 of Taxable General Obligation Refunding Bonds to refinance the
26
Management's Discussion and Analysis
2005A Taxable G.O. Improvement Bonds, $1,600,000 of General Obligation Tax Abatement
Refunding Bonds to refinance the 2006C G.O. Tax Abatement Bonds, and a $294,525
General Obligation Capital Note to finance the City's share of capital equipment to be
acquired by North Metro TV. Principal in the amount of $2,769,525 was retired during the
year.
Additional information on the City's long-term debt can be found in Note 6.
Requests for information. This financial report is designed to provide a general overview
of the City's finances for all those with an interest in the government's finances. Questions
concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town
Center Parkway, Lino Lakes, Minnesota, 55014.
27
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28
BASIC FINANCIAL STATEMENTS
29
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30
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2016
Statement 1
Deferred outflows of resources related to pensions
8,780,333
Primary Government
8,948,635
Governmental
Business -Type
12,481,303
- 12,481,303
Activities
Activities
Total
Assets:
519,600
Salaries payable
107,758
Cash and investments
$28,617,570
$13,470,487
$42,088,057
Accrued interest receivable
69,933
-
69,933
Due from other governmental units
91,736
2,023
93,759
Accounts receivable - net
95,628
358,559
454,187
Prepaid items
226,334
29,247
255,581
Internal balances
(559,110)
559,110
-
Inventory
-
81,827
81,827
Taxes receivable
212,331
-
212,331
Special assessments receivable
8,500,722
-
8,500,722
Long-term notes receivable
225,000
-
225,000
Capital assets - nondepreciable
12,236,921
5,617,436
17,854,357
Capital assets - net of accumulated depreciation
28,917,504
26,243,174
55,160,678
Total assets
78,634,569
46,361,863
124,996,432
Deferred outflows of resources related to pensions
8,780,333
168,302
8,948,635
Liabilities:
12,481,303
- 12,481,303
Economic development
Accounts payable
319,222
200,378
519,600
Salaries payable
107,758
6,020
113,778
Due to other governmental units
2,528
-
2,528
Contracts payable
640,483
74,403
714,886
Other accrued liabilities
-
6,485
6,485
Accrued interest payable
261,347
-
261,347
Compensated absences payable:
Due within one year
467,558
34,786
502,344
Due in more than one year
266,857
31,604
298,461
Other post employment benefits
97,147
-
97,147
Bonds and notes payable:
Due within one year
7,103,525
-
7,103,525
Due in more than one year
20,637,556
-
20,637,556
Net pension liability:
Due in more than one year
13,144,874
402,208
13,547,082
Total liabilities
43,048,855
755,884
43,804,739
Deferred inflows of resources related to pensions
1,546,117
50,224
1,596,341
Net position:
Net investment in capital assets
18,597,344
31,860,610 50,457,954
Restricted for:
Debt service
12,481,303
- 12,481,303
Economic development
225,000
- 225,000
Tax increment purposes
438,026
- 438,026
Environmental improvements - nonexpendable
100,000
- 100,000
Environmental improvements - expendable
13,855
- 13,855
Other purposes
84,668
- 84,668
Unrestricted
10,879,734
13,863,447 24,743,181
Total net position
$42,819,930
$45,724,057 $88,543,987
The accompanying notes are an integral part of these financial statements.
31
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2016
Functions/Pro rg ams
Primary government:
Governmental activities:
General government
Public safety
Public services
Conservation of natural resources
Community development
Interest and fees on long-term debt
Total governmental activities
Business -type activities:
Water
Sewer
Total business -type activities
Total primary government
Expenses
Program Revenues
Charges For
Services
$2,456,864
$520,231
6,567,523
1,359,426
6,228,893
865,327
216,905
-
454,144
-
831,529
-
16,755,858
2,744,984
1,367,693
1,094,897
1,850,962
1,659,322
3,218,655
2,754,219
$19,974,513 $5,499,203
The accompanying notes are an integral part of these financial statements.
32
Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
$12,535
336,701
274,430
99,192
5,046,307
722,858 5,046,307
0
871,552
672,395
1,543,947
$722,858 $6,590,254
General revenues:
General property taxes
Tax increment
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on disposal of capital assets
Special item - withdrawal from fire district
Transfers
Total general revenues, special item and transfers
Change in net position
Net position - January 1, as previously reported
Prior period adjustment
Net position - January 1, as restated
Net position - December 31
Statement 2
Net (Expense) Revenue and
Changes in Net Position
Primary Government
Governmental Business -Type
Activities Activities Total
($1,924,098)
(4,871,396)
(42, 829)
(117,713)
(454,144)
(831,529)
(8,241,709)
0
(8,241,709)
($1,924,098)
(4,871,396)
(42, 829)
(117,713)
(454,144)
(831,529)
0 (8,241,709)
598,756
598,756
480,755
480,755
1,079,511
1,079,511
1,079,511 (7,162,198)
9,049,671 - 9,049,671
293,829 - 293,829
91,385
-
91,385
210,142
107,119
317,261
66,255
-
66,255
1,333,166
-
1,333,166
(914,414)
914,414
-
10,130,034
1,021,533
11,151,567
1,888,325
2,101,044
3,989,369
40,754,159
43,800,459
84,554,618
177,446
(177,446)
-
40,931,605
43,623,013
84,554,618
$42,819,930
$45,724,057
$88,543,987
The accompanying notes are an integral part of these financial statements.
33
CITY OF LINO LAKES, MINNESOTA
BALANCESHEET
GOVERNMENTAL FUNDS
December 31, 2016
Assets
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Prepaid items
Advances to other funds
Taxes receivable:
Due from county
Delinquent
Special assessments receivable:
Due from county
Delinquent
Deferred
Interfund loan receivable
Long-term notes receivable
Total assets
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable
Salaries payable
Due to other governmental units
Contracts payable
Advances from other funds
Interfund loan payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows of resources, and fund balance
327 G.O.
Improvement
General Fund Bonds of 2005A
$6,044,322 $3,102,978
69,933 -
91,736 -
59,875 -
225,114 -
96,175 -
73,316 -
2,994,379
$6,660,471 $6,097,357
$221,010 $200
107,426 -
2,528 -
- 2,876,643
330,964 2,876,843
73,316 2,994,379
225,114 -
- 226,135
6,031,077 -
6,256,191 226,135
$6,660,471 $6,097,357
The accompanying notes are an integral part of these financial statements.
34
333 G.O.
Improvement
Note of 2009A
$22
2,809,742
406 Area and
Unit Charge
$6,040,839
24,476
8,120
2,379
1,091,408
194,525
$2,809,764 $7,361,747
$1,760
0 1,760
2,809,742
22
1,093,787
6,266,200
22 6,266,200
$2,809,764 $7,361,747
Other
Governmental Funds
$13,429,409
11,277
1,220
1,350
27,739
15,101
1,635
10,331
1,582,728
3,290,003
225,000
$18,595,793
$96,252
332
640,483
1,350
1,166,995
1,905,412
1,608,160
101,220
6,276,267
170,950
9,512,280
(978,496)
15,082,221
$18,595,793
The accompanying notes are an integral part of these financial statements.
35
Statement 3
Total
Governmental Funds
$28,617,570
69,933
91,736
95,628
226,334
1,350
123,914
88,417
9,755
12,710
8,478,257
3,484,528
225,000
$41,525,132
$319,222
107,758
2,528
640,483
1,350
4,043,638
5,114,979
8,579,384
326,334
6,502,424
170,950
15,778,480
5,052,581
27,830,769
$41,525,132
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36
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2016
Statement 4
Fund balance - total governmental funds (Statement 3) $27,830,769
Net position reported for governmental activities in the Statement of Net Position is
different because:
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. 41,154,425
Other long-term assets are not available to pay for current -period expenditures and
therefore, are reported as unavailable revenue in the funds:
Delinquent taxes receivable 88,417
Delinquent special assessments receivable 12,710
Deferred special assessments receivable 8,478,257
Long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the funds. Long-term liabilities at year end consist of-
£Bonds
Bondsand notes payable
(27,600,250)
Unamortized bond premiums
(166,322)
Unamortized bond discounts
25,491
Accrued interest payable
(261,347)
Compensated absences payable
(734,415)
Other post employment benefits
(97,147)
Net pension liability
(13,144,874)
Deferred outflows and inflows of resources related to pensions are associated with
long-term liabilities that are not due and payable in the current period, and therefore,
are not reported in the funds. Balances at year end are:
Deferred outflows of resources 8,780,333
Deferred inflows of resources (1,546,117)
Net position of governmental activities (Statement 1) $42,819,930
37
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
Revenues:
General property taxes
Tax increment
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
Net increase in fair value of investments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public safety
Public services
Conservation of natural resources
Community development
Capital outlay:
General government
Public safety
Public services
Conservation of natural resources
Debt service:
Principal
Interest and fiscal charges
Bond issuance costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from issuance of debt
Premium on bonds issued
Proceeds from sale of capital assets
Total other financing sources (uses)
Special item - withdrawal from fire district
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
General Fund
$7,037,596
895,581
654,447
4,618
342,690
220,905
37,887
2,553
221,034
9,417,311
327 G.O.
Improvement
Bonds of 2005A
996,679
6,964
368
1,004,011
1,837,343 -
4,318,330 -
2,094,753 -
177,185 -
420,298 -
4,583 -
46,399 -
259 -
5,028 -
400,000
130,860
34,628
8,904,178
565,488
513,133
438,523
488,084
152,784
(691,439)
-
-
1,975,000
2,127,784
(203,355)
2,566,307
309,778
5,946,413
(2,340,172)
$6,256,191
$226,135
The accompanying notes are an integral part of these financial statements.
38
333 G.O.
Improvement
Note of 2009A
128,803
406 Area and
Unit Charge
1,858,728
252,580
67,505
1,550
128,803 2,180,363
Other
Governmental Funds
$2,037,665
293,829
52,497
1,411,807
698,286
30,748
87,353
5,962
196,414
4,814,561
Statement 5
Total
Governmental Funds
$9,075,261
293,829
895,581
706,944
4,400,635
1,293,556
251,653
199,709
10,433
417,448
17,545,049
- - 8,324
1,845,667
- - 14,750
4,333,080
- 22,725 1,086,359
3,203,837
- - 24,450
201,635
- - 5,104
425,402
375,000
70,165
-
-
445,165
22,725
(316,362)
2,157,638
309,000
-
1,001
(315,044)
309,000
(314,043)
(7,362)
7,384
1,843,595
4,422,605
$22
$6,266,200
140,081 144,664
521,918 568,317
2,326,347 2,326,606
- 5,028
1,994,525
615,337
64,278
6,801,473
(1,986,912)
2,570,311
(2,235,476)
3,489,000
41,497
72,182
3,937,514
1,111,834
3,062,436
12,019,785
$15,082,221
The accompanying notes are an integral part of these financial statements.
39
2,769,525
816,362
98,906
16,739,029
806,020
3,521,180
(3,241,959)
5,464,000
41,497
72,182
5,856,900
1,111,834
7,774,754
20,056,015
$27,830,769
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2016
Statement 6
Net change in fund balance - total governmental funds (Statement 5) $7,774,754
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement
of Activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense:
Depreciation (2,926,157)
Capital outlay 3,044,615
Capital outlay not capitalized (1,038,375)
Various other transactions involving capital assets increase (decrease) net position on
the Statement of Activities, but are not reported in governmental funds because they
do not provide (or use) current financial resources:
Contributions of infrastructure from private sources
1,824,535
Contributions of fire vehicles and equipment from fire district
221,332
Contributions of infrastructure to business -type activities
(1,193,635)
Gain (loss) on disposal of capital assets
(5,927)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Change in delinquent taxes receivable
(25,590)
Change in delinquent special assessments receivable
(14,255)
Change in deferred special assessments receivable
(1,206,108)
The issuance of long-term debt provides current financial resources to governmental
funds, while repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental report the effects of bond premiums and
discounts when the debt is first issued, whereas amounts are deferred and amortized
over the life of the debt in the Statement of Activities.
Bonds and notes issued
(5,758,525)
Repayment of principal
2,769,525
Bond premium received during current year
(41,497)
Amortization of bond premiums and discounts
6,707
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds. Expenses reported in the Statement of Activities include the effects of the
changes in these expense accruals as follows:
Change in accrued interest payable
77,032
Change in compensated absences payable
(45,510)
Change in other post employment benefits
(6,295)
Pension expense in governmental funds is measured by current year employee
contributions. Pension expense in the Statement of Activities is measured by the change
in the net pension liability and related deferred inflows and outflows of resources.
This is the amount by which pension expense exceeded pension contributions.
(1,568,301)
Change in net position of governmental activities (Statement 2)
$1,888,325
The accompanying notes are an integral part of these financial statements
40
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2016
Assets:
Current assets:
Cash and cash equivalents
Due from other governmental units
Accounts receivable - net
Prepaid items
Inventory
Interfund loan receivable
Total current assets
Noncurrent assets:
Capital assets:
Construction in progress
Equipment
Water and sewer systems
Total capital assets
Less: Allowance for depreciation
Net capital assets
Total assets
Deferred outflows of resources related to pensions
Total assets and deferred outflows
Liabilities:
Current liabilities:
Accounts payable
Salaries payable
Contracts payable
Other accrued liabilities
Compensated absences payable - current portion
Total current liabilities
Noncurrent liabilities:
Compensated absences payable - noncurrent portion
Net pension liability
Total noncurrent liabilities
Total liabilities
Deferred inflows of resources related to pensions
Total liabilities and deferred inflows
Net position:
Investment in capital assets
Unrestricted
Total net position
Statement 7
Business -Type Activities - Enterprise Funds
601 Water 602 Sewer Total
$4,947,883
$8,522,604
$13,470,487
-
2,023
2,023
142,284
216,275
358,559
10,161
19,086
29,247
81,827
-
81,827
-
559,110
559,110
5,182,155
9,319,098
14,501,253
201,104
201,104
4,282,412
1,335,024
5,617,436
124,259
328,432
452,691
20,847,774
22,032,433
42,880,207
25,254,445
23,695,889
48,950,334
(8,118,178)
(8,971,546)
(17,089,724)
17,136,267
14,724,343
31,860,610
22,318,422
24,043,441
46,361,863
$45,724,057
84,151
84,151
168,302
22,402,573
24,127,592
46,530,165
43,143
157,235
200,378
3,010
3,010
6,020
74,403
-
74,403
3,335
3,150
6,485
17,393
17,393
34,786
141,284
180,788
322,072
15,802
15,802
31,604
201,104
201,104
402,208
216,906
216,906
433,812
358,190
397,694
755,884
25,112
25,112
50,224
383,302
422,806
806,108
17,136,267
14,724,343
31,860,610
4,883,004
8,980,443
13,863,447
$22,019,271
$23,704,786
$45,724,057
The accompanying notes are an integral part of these financial statements.
41
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
Operating revenues:
Charges for services
Hook-up charges
Water meter sales
Other operating revenue
Total operating revenues
Operating expenses:
Personal services
Materials and supplies
Contractual services
MCES sewer charges
Depreciation
Utilities
Other
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment earnings
Net increase in fair value of investments
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
Income (loss) before contributions and transfers
Contributions and transfers:
Capital contributions from private sources
Capital contributions from governmental activities
Transfer out
Total contributions and transfers
Change in net position
Net position - January 1, as previously reported
Prior period adjustment
Net position - January 1, as restated
Net position - December 31
Statement 8
Business -Type Activities - Enterprise Funds
601 Water 602 Sewer Totals
$1,025,269
$1,638,272
$2,663,541
26,010
21,050
47,060
30,687
-
30,687
12,931
-
12,931
1,094,897
1,659,322
2,754,219
236,409
239,698
476,107
452,100
26,129
478,229
100,243
51,564
151,807
-
877,565
877,565
436,384
456,422
892,806
86,889
40,229
127,118
18,566
26,958
45,524
1,330,591
1,718,565
3,049,156
(235,694)
(59,243)
(294,937)
37,560
62,404
99,964
2,754
4,401
7,155
(37,102)
(132,397)
(169,499)
3,212
(65,592)
(62,380)
(232,482)
(124,835)
(357,317)
871,552
672,395
1,543,947
1,101,903
91,732
1,193,635
(34,627)
(244,594)
(279,221)
1,938,828
519,533
2,458,361
1,706,346
394,698
2,101,044
20,401,628
23,398,831
43,800,459
(88,703)
(88,743)
(177,446)
20,312,925
23,310,088
43,623,013
$22,019,271
$23,704,786
$45,724,057
The accompanying notes are an integral part of these financial statements.
42
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For The Year Ended December 31, 2016
Cash flows from operating activities:
Receipts from customers and users
Payment to suppliers
Payment to employees
Net cash flows provided by operating activities
Cash flows from noncapital financing activities:
Transfers
Cash flows from capital and related financing activities:
Acquisition of capital assets
Proceeds from sale of capital assets
Net cash flows provided by (used in)
capital and related financing activities
Cash flows from investing activities:
Investment income
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents - January 1
Cash and cash equivalents - December 31
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units
Decrease (increase) in accounts receivable - net
Decrease (increase) in prepaid items
Decrease (increase) in inventory
Decrease (increase) in deferred outflows of resources
Increase (decrease) in payables
Increase (decrease) in other accrued liabilities
Increase (decrease)in compensated absences
Increase (decrease) in net pension liability
Increase (decrease) in deferred inflows of resources
Total adjustments
Net cash provided by operating activities
Noncash investing, capital and financing activities:
Contributions of capital assets
Statement 9
Business -Type Activities - Enterprise Funds
601 Water 602 Sewer Totals
$1,105,801
$1,663,724
$2,769,525
(618,143)
(882,352)
(1,500,495)
(226,242)
(222,576)
(448,818)
261,416
558,796
820,212
(34,627) (244,594) (279,221)
(1,057,604) - (1,057,604)
100 - 100
(1,057,504) - (1,057,504)
40,314 66,805 107,119
(790,401) 381,007 (409,394)
5,738,284 8,141,597 13,879,881
$4,947,883 $8,522,604 $13,470,487
($235,694) ($59,243) ($294,937)
436,384
456,422
892,806
-
(429)
(429)
10,904
4,831
15,735
(2,906)
(1,711)
(4,617)
(39,805)
-
(39,805)
(78,318)
(78,324)
(156,642)
82,366
141,804
224,170
(3,805)
3,150
(655)
1,103
1,103
2,206
69,779
69,781
139,560
21,408 21,412 42,820
497,110 618,039 1,115,149
$261,416 $558,796 $820,212
$1,973,455 $764,127 $2,737,582
The accompanying notes are an integral part of these financial statements.
43
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
December 31, 2016
Assets:
Cash and investments
Liabilities:
Deposits payable
The accompanying notes are an integral part of these financial statements.
44
Statement 10
$825,373
$825,373
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes, Minnesota (the City) is a public corporation formed under Minnesota Statute 410. As
such, the City is under home rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City have been prepared in conformity with U.S. generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of significant accounting policies:
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity include those of the City (the primary
government) and its component units. The component units discussed below are included in the City's
reporting entity because of the significance of their operational or financial relationships with the City.
CKePu I Eel 01"641FI/Li1Ky
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component units have been included in the financial report as blended
component units.
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the
City. However, for financial reporting purposes, the EDA is reported as if it were a part of the
City's operation because the governing body is substantially the same as the governing body of the
City and a financial benefit or burden relationship exists between the City and the EDA. The EDA
does not issue separate financial statements. The Housing and Development Authority (HRA) of
Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes,
the HRA is reported as if it were part of the City's operations because the members of the City
Council serve as commission members and a financial benefit or burden relationship exists
between the City and the HRA. The HRA has not yet incurred any financial activity.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non -fiduciary activities of the primary government and its
component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which rely to a
significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
business -type activity are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business -type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business -type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The fund financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government -wide financial statements. The
emphasis of governmental and proprietary fund financial statements is on major individual
governmental and enterprise funds, with each displayed as separate columns in the fund financial
statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor
funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and
investment earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund is the City's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds of 2005A Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt.
General Obligation Improvement Note of 2009A Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt. The note
was used to finance improvement projects at the I -35E and County Road 14 interchange.
Area and Unit Charge Fund accounts for the collection of water and sewer unit charges to be used
for debt payments and construction of governmental infrastructure.
The City reports the following major proprietary funds:
The Water Fund accounts for customer water service charges which are used to finance water
system operating expenses.
The Sewer Fund accounts for customer sewer service charges which are used to finance sanitary
sewer system operating expenses.
Additionally, the City reports the following fund type:
Agency funds account for assets held as an agent for individuals, private organizations and other
governmental units. The City's agency fund accounts for pass-through contractor's deposits
relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government -wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
imposed by the provider have been met. The City's only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
City considers all revenues, except reimbursement grants, to be available if they are collected within 60
days of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
As a general rule the effect of interfund activity has been eliminated from the government -wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the water and sewer enterprise funds are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and the Program
Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. Budgeted
amounts are reported as originally adopted and as amended by the City Council. Budgeted expenditure
appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E. LEGAL COMPLIANCE — BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing
the following January 1. The operating budget includes proposed expenditures and the means
of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may be
authorized by the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the department level unless
approved by the City Council. Therefore, the legal level of budgetary control is at the
department level (i.e. administration, community development, public safety, public services,
and other).
9. The City Council may authorize transfers of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Investment income is allocated to individual funds on the basis of the fund's
equity in the cash and investment pool.
Investments are stated at fair value, except for investments in external investment pools that meet
GASB 79 requirements, which are stated at amortized cost. Interest earnings are accrued at year-end.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
For purposes of the Statement of Cash Flows, the Proprietary Funds consider all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less.
Therefore, the entire balance in such fund types is considered cash equivalents.
Permanently restricted cash and investments represents the principal and earnings portion of resources
received that must be retained in a permanent fund. Only earnings from these funds may be used for
purposes that support environmental maintenance and improvements.
G. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and
collecting all property taxes for itself, the City, the local School District and other taxing authorities.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real
property taxes are payable (by property owners) on May 15 and October 15 of each calendar year.
Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes
are collected by the County and remitted to the City on or before July 15 and December 15 of the same
year. Delinquent collections for November and December are received the following January. The
City has no ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Within the government -wide financial statements, the City recognizes property tax revenue in the
period for which taxes were levied. Uncollectible property taxes are not material and have not been
reported.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. In practice,
current and delinquent taxes and received by the City in July, December, and the following January are
recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to
the City the following January) are classified as due from county. Taxes not collected by the county by
December 31 are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset
by deferred inflows of resources because they are not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation
growth since 1971.
H. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with State Statutes. These assessments are collectible
by the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
property taxes. Property owners are allowed to (and often do) prepay future installments without
interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
Within the government -wide financial statements, the City recognizes special assessment revenue in the
period that the assessment roll was adopted by the City Council. Uncollectible special assessments are
not material and have not been reported.
Within the fund financial statements, the revenue from special assessments is recognized by the City
when it becomes measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are recognized as revenue for
the current year. Special assessments are collected by the County and remitted by December 31
(remitted to the City the following January) and are also recognized as revenue for the current year. All
remaining delinquent, deferred and special deferred assessments receivable in governmental funds are
completely offset by deferred inflows of resources.
I. INVENTORY
For governmental funds, the original cost of materials and supplies are recorded as expenditures at the
time of purchase. These funds do not maintain material amounts of inventories.
Inventories of the proprietary funds are stated at cost, which approximates market, using the first -in,
first -out (FIFO) method.
J. PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government -wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditures/expenses at the time of consumption.
K. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /
expenses initially made from it that are properly applicable to another fund, are recorded as
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund
that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Such advances are classified as "advances to/from other funds." Long-
term interfund loans are classified as "interfund loan receivable/payable." Any residual balances
outstanding between the governmental activities and business -type activities are reported in the
government -wide financial statements as "internal balances." All other interfund transactions are
reported as transfers.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
sidewalks, street lights, and similar items) are reported in the applicable governmental or business -type
activities columns in the government -wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation. All
existing City infrastructure has been capitalized regardless of date placed in service.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed. Interest incurred during the construction phase of capital assets
of business -type activities is included as part of the capitalized value of the assets constructed. For the
year ended December 31, 2016, no interest was capitalized in connection with construction in progress.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities
with accumulated depreciation reflected in the Statement of Net Position. Capital assets are depreciated
using the straight-line method over their estimated useful lives. Since surplus assets are sold for an
immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into
consideration for depreciation purposes. Useful lives vary from 3 to 30 years for buildings, office
furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for
infrastructure.
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumulate earned but unused vacation, PTO (Personal
Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay
allowable as severance is accrued in the government -wide and proprietary fund financial statements.
The current portion is calculated based on historical trends.
N. LONG-TERM OBLIGATIONS
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
activities, business -type activities, or proprietary fund type Statement of Net Position. Bond premiums
and discounts are amortized over the life of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
O. DEFINED BENEFIT PENSION PLANS
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and deductions from PERA's fiduciary net position have been
determined on the same basis as they are reported by PERA, except that PERA's fiscal year end is June
30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit
payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow of resources
(expense) that time. The City has one item that qualifies for reporting in the category. It is the pension
related deferred outflows of resources reported in the government -wide Statement of Net Position and
the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position
that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue)
until that time. The City has pension related deferred inflows of resources reported in the government -
wide Statement of Net Pension and the proprietary funds Statements of Net Position. The City also has
a type of item, which arises only under a modified accrual basis of accounting, that qualifies for
reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the
governmental fund balance sheet. The governmental funds report unavailable revenues from the
following sources: property taxes and special assessments not collected within 60 days from year-end.
Q. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and
corpus of any permanent fund.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by a
resolution approved by the City Council, and committed amounts cannot be used for any other
purpose unless the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City's intended
use. These constraints are established by the City Council and/or management. The City Council
passed a resolution authorizing the Finance Director to assign fund balances and their intended
uses.
Unassigned - is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City's policy to first use
restricted resources, and then use unrestricted resources as they are needed.
When committed, assigned or unassigned resources are available for use, it is the City's policy to use
resources in the following order: 1) committed 2) assigned and 3) unassigned.
The City formally adopted a fund balances policy for the general fund. The policy establishes an
unassigned fund balance range of 40% - 50% of general fund operating expenditures.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk — Custodial credit risk is the risk that in the event of a bank failure, the City's
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not
covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit
risk. As of December 31, 2016, the bank balance of the City's deposits was insured by the FDIC or
covered by pledged collateral held in the City's name.
53
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated
"A" or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated "AA" or better by a national bond rating service;
d) General obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank's public debt is rated "AA" or better by Moody's
Investors Service, Inc. or Standard & Poor's Corporation; and
f) Time deposits that are fully insured by the Federal Deposits Insurance Corporation.
At December 31, 2016, the carrying amount of the City's deposits with financial institutions was
$2,872,639.
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing powers
which is rated "A" or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated "AA" or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated "A" or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
54
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
As of December 31, 2016, the City had the following investments and maturities:
Investment Maturities (in Years)
Fair Less
Investment Type Rating Value Than 1 1 - 5 6 - 8
Wells Fargo money market NR $3,759,721 $3,759,721 $ $
4M Fund NR 9,653,494 9,653,494
Mutual funds NR 1,782,066 1,782,066
Brokered CD's NR 12,395,765 3,898,818 7,123,353 1,373,594
Municipal bonds * 11,963,565 2,849,918 8,049,217 1,064,430
Federal Home Loan Mortgage Corp. AAA 485,360 - - 485,360
Total $40,039,971 $21,944,017 $15,172,570 $2,923,384
NR - Not Rated Total investments $40,039,971
* AAA $2,191,736; AA+ $1,261,057 Deposits 2,872,639
AA $2,888,737; AA- $5,494,900 Petty cash 820
A+ $127,135 Total cash and investments $42,913,430
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business -type (Statement 1) $42,088,057
Fiduciary (Statement 10) 825,373
Total $42,913,430
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using
inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or
indirectly. Level 3 investments are valued using inputs that are unobservable.
667.7
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The City has the following recurring fair value measurements as of December 31, 2016:
Investment Type
Investments at fair value:
Mutual funds
Brokered CD's
Municipal bonds
Federal Home Loan Mortgage Corp.
Investments not categorized:
Wells Fargo money market
4M Fund
Total investments
3,759,721
9,653,494
$40,039,971
The 4M Fund is an external investment pool investment which is regulated by Minnesota Statutes and
the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
Statement No. 79. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14 -day restriction period are subject to penalty equal to 7 days interest
on the amount withdrawn.
C. INVESTMENT RISKS
Custodial Credit Risk — Investments — For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City's
investment policy requires its brokers be licensed with the appropriate federal and state agencies. A
minimum capital requirement of $5,000,000 and at least five years of operation is mandatory.
Investments in securities are held by the City's broker-dealers. The securities at each broker-dealer are
insured $500,000 through SIPC. Each broker-dealer has provided additional protection by providing
additional insurance. This insurance is subject to aggregate limits applied to all of the broker -dealer's
accounts.
Interest Rate Risk — Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. The City's policy to minimize interest
rate risk includes investing primarily in short-term securities and structuring the investment portfolio so
that securities mature to meet cash requirements for ongoing operations.
Credit Risk — Credit risk is the risk than an issuer of an investment will not fulfill its obligation to the
holder of the investment. The City's policy to minimize credit risk includes limiting investing funds to
those allowable under Minnesota Statute I I8A, annually appointing all financial institutions where
56
Fair Value Measurement Using
12/31/2016
Level Level Level
$1,782,066
$1,782,066 $ - $ -
12,395,765
- 12,395,765 -
11,963,565
- 11,963,565 -
485,360
485,360 -
$1,782,066 $24,844,690 $ -
3,759,721
9,653,494
$40,039,971
The 4M Fund is an external investment pool investment which is regulated by Minnesota Statutes and
the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
Statement No. 79. The 4M Plus Fund requires funds to be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14 -day restriction period are subject to penalty equal to 7 days interest
on the amount withdrawn.
C. INVESTMENT RISKS
Custodial Credit Risk — Investments — For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City's
investment policy requires its brokers be licensed with the appropriate federal and state agencies. A
minimum capital requirement of $5,000,000 and at least five years of operation is mandatory.
Investments in securities are held by the City's broker-dealers. The securities at each broker-dealer are
insured $500,000 through SIPC. Each broker-dealer has provided additional protection by providing
additional insurance. This insurance is subject to aggregate limits applied to all of the broker -dealer's
accounts.
Interest Rate Risk — Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. The City's policy to minimize interest
rate risk includes investing primarily in short-term securities and structuring the investment portfolio so
that securities mature to meet cash requirements for ongoing operations.
Credit Risk — Credit risk is the risk than an issuer of an investment will not fulfill its obligation to the
holder of the investment. The City's policy to minimize credit risk includes limiting investing funds to
those allowable under Minnesota Statute I I8A, annually appointing all financial institutions where
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
investments are held, and diversifying the investment portfolio. This is measured by the assignment of
a rating by a nationally recognized statistical rating organization.
Concentration of Credit Risk — Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government's investment in a single issuer. The City places no limit on the amount
it may invest in any one issuer. As of December 31, 2016, no individual investments exceeded 5% of
the City's total investment portfolio.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2016 are as
follows:
Major Funds:
General Fund
G.O. Improvement Bonds of 2005A
G.O. Improvement Note of 2009A
Area and Unit Charge
Nonmajor Funds
Total
Note 4 UNAVAILABLE REVENUE
Property
Special
Special
Taxes
Assessments
Notes
Receivable
Receivable
Receivable
Total
$38,521
$ -
$ -
$38,521
-
2,994,379
-
2,994,379
-
2,790,523
-
2,790,523
-
984,326
-
984,326
8,329
1,411,306
225,000
1,644,635
$46,850
$8,180,534
$225,000
$8,452,384
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds are as follows:
61ll
Property
Special
Taxes
Assessments
Receivable
Receivable
Total
Major Funds:
General Fund
$73,316
$ -
$73,316
G.O. Improvement Bonds of 2005A
-
2,994,379
2,994,379
G.O. Improvement Note of 2009A
-
2,809,742
2,809,742
Area and Unit Charge
-
1,093,787
1,093,787
Nonmajor Funds
15,101
1,593,059
1,608,160
Total
$88,417
$8,490,967
$8,579,384
61ll
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 5 CAPITAL ASSETS
Beginning
21,806
(4,285)
Ending
Capital asset activity for the year ended December
31, 2016 was as
follows:
Decreases
Balance
Business -type activities:
Beginning
892,806
(10,861)
Ending
Capital assets, not being depreciated:
Balance
Increases
Decreases
Balance
Governmental activities:
$1,830,071
$3,787,365
$ -
$5,617,436
Capital assets, not being depreciated:
Land
$3,275,859
$ -
$
$3,275,859
Construction in progress
7,268,375
1,692,687
(176,175)
8,961,062
Total capital assets, not being depreciated
10,544,234
1,692,687
0
12,236,921
Capital assets, being depreciated:
Buildings
6,765,619
126,228
6,891,847
Office equipment and furniture
629,172
68,000
(37,732)
659,440
Vehicles
3,130,157
628,412
(340,901)
3,417,668
Machinery and shop equipment
2,255,796
57,123
(3,506)
2,309,413
Other equipment
1,005,797
28,329
1,034,126
Infrastructure
80,480,767
257,693
80,738,460
Total capital assets, being depreciated
94,267,308
1,165,785
(382,139)
95,050,954
Less accumulated depreciation for:
Buildings
3,963,206
222,286
4,185,492
Office equipment and furniture
495,212
43,733
(37,209)
501,736
Vehicles
1,988,785
393,648
(335,497)
2,046,936
Machinery and shop equipment
1,146,269
149,318
(3,506)
1,292,081
Other equipment
812,675
15,066
827,741
Infrastructure
55,177,358
2,102,106
57,279,464
Total accumulated depreciation
63,583,505
2,926,157
(376,212)
66,133,450
Total capital assets being depreciated - net
30,683,803
(1,760,372)
(5,927)
28,917,504
Governmental activities capital assets - net
$41,228,037
($67,685)
($5,927)
$41,154,425
Accumulated depreciation for
Machinery and shop equipment
Beginning
21,806
(4,285)
Ending
Water and sewer systems
Balance
Increases
Decreases
Balance
Business -type activities:
16,207,779
892,806
(10,861)
17,089,724
Capital assets, not being depreciated:
27,297,758
(884,985)
(169,599)
26,243,174
Construction in progress
$1,830,071
$3,787,365
$ -
$5,617,436
Capital assets, being depreciated:
Machinery and shop equipment
449,155
7,821
(4,285)
452,691
Water and sewer systems
43,056,382
-
(176,175)
42,880,207
Total capital assets, being depreciated
43,505,537
7,821
(180,460)
43,332,898
Accumulated depreciation for
Machinery and shop equipment
267,730
21,806
(4,285)
285,251
Water and sewer systems
15,940,049
871,000
(6,576)
16,804,473
Total accumulated depreciation
16,207,779
892,806
(10,861)
17,089,724
Total capital assets being depreciated - net
27,297,758
(884,985)
(169,599)
26,243,174
Business -type activities capital assets - net
$29,127,829
$2,902,380
($169,599)
$31,860,610
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government
Public safety
Public services
Conservation of natural resources
Community development
Total depreciation expense - governmental activities
Business -type activities:
Water
Sewer
Total depreciation expense - business -type activities
59
$222,823
332,173
2,364,514
850
5,797
$2,926,157
$436,384
456,422
$892,806
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 6 LONG-TERM DEBT
The City issues general obligation bonds and equipment certificates to provide funds for the acquisition and
construction of major capital facilities and equipment. City indebtedness as of December 31, 2016 consisted of
the following:
60
Final
Issue
Maturity
Interest
Original
Payable
Date
Date
Rate
Issue
12/31/16
Governmental activities:
General Obligation Bonds:
2014A Certificates ofIndebtedness
2/1/14
12/31/17
1.00%
$495,000
$168,000
2015A Certificates of Indebtedness
2/1/15
12/31/18
1.00%
198,250
133,250
2015B Certificates of Indebtedness
8/25/15
12/31/20
1.50%
963,000
786,000
2016A Certificates of Indebtedness
2/1/16
12/31/19
1.00%
469,000
469,000
G.O. Tax Abatement Bonds, Series 2006C
8/15/06
2/1/17
4.00% - 4.30%
2,460,000
1,755,000
G.O. Utility Revenue Bonds, Series 2006D
8/15/06
2/1/17
4.00% - 4.15%
570,000
70,000
G.O. CIP Refunding Bonds, Series 2006E
11/1/06
2/1/18
4.00%
2,990,000
830,000
G.O. TIF Bonds, Series 2007A
7/15/17
2/1/24
4.00% - 4.125%
4,215,000
2,025,000
G.O. Refunding Bonds, Series 2012A
11/15/12
2/1/24
1.00% - 2.00%
2,015,000
1,495,000
G.O. Bonds 2015A
8/1/15
2/1/31
2.00% - 3.00%
3,095,000
3,095,000
EDA Lease Revenue Bonds 2015B
10/1/15
4/1/36
2.00% - 3.00%
4,350,000
4,350,000
G.O. Utility Revenue Bonds, Series 2016A
11/23/16
2/1/27
2.00%
1,420,000
1,420,000
G.O. Tax Abatement Refunding Bonds 2016C
11/23/16
2/1/23
1.00% -1.50%
1,600,000
1,600,000
Total General Obligation Bonds
24,840,250
18,196,250
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2005A
11/1/05
2/1/17
4.35% - 5.15%
5,550,000
2,360,000
G.O. Imp & Utility Revenue Bonds, Series 2010A
7/9/10
2/1/20
2.00% - 3.00%
1,000,000
425,000
G.O. Improvement Bonds, Series, 2013A
7/15/13
2/1/24
1.25% - 4.00%
615,000
495,000
G.O. Improvement Bonds, Series 2014A
11/20/14
2/1/26
0.40% - 2.30%
2,645,000
2,540,000
G.O. Improvement Refunding Bonds, Series 2016B
11/23/16
2/1/21
0.875%- 1.50%
1,975,000
1,975,000
Total Special Assessment Bonds
11,785,000
7,795,000
G.O. Improvement Note, Series 2009A
8/1/09
8/1/20
3.70% - 4.00%
4,260,000
1,345,000
G.O. Capital Note, Series 2016A
4/14/16
2/1/26
2.00%
294,525
264,000
Unamortized bond premiums
199,750
166,322
Unamortized bond discounts
(51,997)
(25,491)
Compensated absences payable
N/A
734,415
Total Government Activities
$41,327,528
$28,475,496
Business -Type Activities:
Compensated absences payable
N/A
$66,390
60
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2016:
DESCRIPTIONS OF LONG-TERM DEBT
General Obligation Bonds — The bonds were issued for improvements or projects which benefited the City as a
whole and, therefore, are repaid from ad valorem levies.
Special Assessment Bonds — The bonds were issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However, some
issues are partly financed by ad valorem levies.
Improvement Note — This note was used to finance improvement projects at the I -35E and County Road 14
interchange and will be repaid primarily with special assessments levied on the properties benefiting from the
improvements.
Capital Note — This note was issued to fund the cost of the acquisition of capital equipment to be used by the
North Metro Telecommunications Commission in the operation of a cable communications system. The note
will be repaid from franchise fee revenue.
Utility Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be
repaid primarily from pledged revenues derived from the constructed assets.
61
Beginning
Ending
Due Within
Balance
Additions
Deletions
Balance
One Year
Governmental Activities:
General obligation bonds
$16,406,250
$3,489,000
$1,699,000
$18,196,250
$3,793,000
Special assessment bonds
6,485,000
1,975,000
665,000
7,795,000
2,890,000
Total bonded debt
22,891,250
5,464,000
2,364,000
25,991,250
6,683,000
Improvement note
1,720,000
-
375,000
1,345,000
390,000
Capital note
-
294,525
30,525
264,000
30,525
Unamortized bond premiums
135,130
41,497
10,305
166,322
-
Unamortized bond discounts
(29,089)
-
(3,598)
(25,491)
-
Compensated absences payable
688,905
587,725
542,215
734,415
467,558
Total governmental activities
$25,406,196
$6,387,747
$3,318,447
$28,475,496
$7,571,083
Business -Type Activities:
Compensated absences payable
$64,184
$45,352
$43,146
$152,682
$34,786
DESCRIPTIONS OF LONG-TERM DEBT
General Obligation Bonds — The bonds were issued for improvements or projects which benefited the City as a
whole and, therefore, are repaid from ad valorem levies.
Special Assessment Bonds — The bonds were issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However, some
issues are partly financed by ad valorem levies.
Improvement Note — This note was used to finance improvement projects at the I -35E and County Road 14
interchange and will be repaid primarily with special assessments levied on the properties benefiting from the
improvements.
Capital Note — This note was issued to fund the cost of the acquisition of capital equipment to be used by the
North Metro Telecommunications Commission in the operation of a cable communications system. The note
will be repaid from franchise fee revenue.
Utility Revenue Bonds — These bonds were issued to finance various improvements in the water fund and will be
repaid primarily from pledged revenues derived from the constructed assets.
61
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
DEBT SERVICE REQUIREMENTS
Future principal and interest payments required to retire long-term debt are as follows:
Years Ending Bonded Debt
December 31 Principal Interest
2017
2018
2019
2020
2021
2022-2026
2027-2031
2032-2036
Total
$6,683,000
2,997,250
2,575,000
2,401,000
2,150,000
5,520,000
2,315,000
1,350,000
$25,991,250
$548,591
412,227
363,206
319,761
274,974
869,102
423,581
138,062
$3,349,504
Improvement Note
Capital Note
Principal
Interest
Principal
Interest
$390,000
$60,165
$30,525
$5,280
405,000
49,565
31,350
4,670
420,000
42,415
32,175
4,042
130,000
13,360
33,000
3,399
-
-
33,000
2,739
-
-
103,950
4,191
$1,345,000
$165,505
$264,000
$24,321
It is not practicable to determine the specific year for payment of long-term compensated absences payable. For
governmental activities, compensated absences are liquidated by the General Fund. For business -type activities,
compensated absences are liquidated by the Water and Sewer Funds.
DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
All long-term bonded indebtedness is backed by the full faith and credit of the City, including special assessment
and revenue bond issues. General Obligation bond issues are financed by ad valorem tax levies and special
assessment bond issues are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax
levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject
to cancellation when and if the City has provided alternative sources of financing. The City Council is required
to levy any additional taxes found necessary for full payment of principal and interest.
The future scheduled tax levies are not shown as assets in the accompanying financial statements. Future
scheduled tax levies for all bonds outstanding at December 31, 2016 totaled $14,800,989.
CURRENT REFUNDINGS
On November 23, 2016, the City issued $1,975,000 of Taxable General Obligation Improvement Refunding
Bonds, Series 2016B with an average interest rate of 1.29%. On February 1, 2017, the net proceeds will be used
to redeem the 2018 through 2021 maturities of the Taxable General Obligation Improvement Bonds, Series
2005A with interest rates of 5.00% - 5.15%. The City refunded the bonds to reduce its total debt service
payments over four years by $145,931 and to obtain an economic gain (difference between the present value of
the debt service payments on the old and new debt) of $130,682.
On November 23, 2016, the City issued $1,600,000 of General Obligation Tax Abatement Refunding Bonds,
Series 2016C with an average interest rate of 1.34%. On February 1, 2017, the net proceeds will be used to
redeem the 2018 through 2023 maturities of the General Obligation Tax Abatement Bonds, Series 2006C with
interest rates of 4.25% - 4.30%. The City refunded the bonds to reduce its total debt service payments over six
62
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
years by $133,718 and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $124,952.
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Note 7 CONDUIT DEBT
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide
financial assistance to private -sector entities for the acquisition and construction of industrial and commercial
facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are
payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of
the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in
any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. As of December 31, 2016, one series of Industrial Revenue Bonds was
outstanding with an aggregate remaining principal balance of $180,000, and one series of Commercial Revenue
Notes was outstanding with an aggregate remaining principal balance of $1,379,480.
63
Revenue Pled ed
Current Year
Remaining
Principal
Pledged
Term of
Principal
and Interest
Revenue
Bond Issue
Use of Proceeds
Type
Pledge
and Interest
Paid
Received
Water usage charges via
2006D Utility Revenue Bonds
Water infrastructure improvements
transfers
2007-2016
$71,453
$69,254
$69,254
2009A Improvement Note
Infrastructure improvements
Special assessments
2010-2020
$1,510,505
$435,165
$128,803
2010A Improvement and Utility
General and water infrastructure
Special assessments and
Revenue Bonds
improvements
trunk charges
2011-2020
$451,175
$114,250
$60,435
2013A Improvement Bonds
Infrastructure improvements
Special assessments
2014-2023
$569,940
$76,815
$37,946
2014A Improvement Bonds
Infrastructure improvements
Special assessments
2015-2025
$2,696,724
$138,543
$863,193
2016A Capital Note
Cable communications equipment
Franchise fees
2016-2025
$288,321
$41,112
541932
2016A Utility Revenue Bonds
Water infrastructure improvements
Trunk utility charges via
2017-2026
$1,584,864
% -
$
transfers
2016B Improvement Bands
Infrastructure improvements - refunded
Special assessments
2017-2020
$2,044,357
$
the 2005A Imp Bonds
Note 7 CONDUIT DEBT
The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide
financial assistance to private -sector entities for the acquisition and construction of industrial and commercial
facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are
payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of
the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in
any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. As of December 31, 2016, one series of Industrial Revenue Bonds was
outstanding with an aggregate remaining principal balance of $180,000, and one series of Commercial Revenue
Notes was outstanding with an aggregate remaining principal balance of $1,379,480.
63
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 8 DEFINED BENEFIT PENSION PLANS — PERA
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple -employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA's defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA's defined benefit pension plans are tax qualified plans under Section 401(a) of the
Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees
of the City are covered by the General Employees Retirement Fund (GERF). GERF members
belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by
Social Security and Basic Plan members are not. The Basic Plan was closed to new members in
1967. All new members must participate in the Coordinated Plan.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the PEPFF also covers police officers and firefighters belonging to a local relief association that
elected to merge with and transfer assets and administration to PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state legislature.
Benefit increases are provided to benefit recipients each January. Increases are related to the funding
ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given
2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are
given 1% increases.
The benefit provisions stated in the following paragraphs of this section are current provisions and
apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not
receiving them yet are bound by the provisions in effect at the time they last terminated their public
service.
1. GERF Benefits
Benefits are based on a member's highest salary for any five successive years of allowable service,
age, and years of credit at termination of service. Two methods are used to compute benefits for
PERA's Coordinated and Basic Plan members. The retiring member receives the higher of a step -
rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1,
the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten
years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan
member is 1.2% of average salary for each of the first ten years and 1.7% for each remaining year.
64
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and
1.7% for Coordinated Plan members for each year of service. For members hire prior to July 1,
1989, a full annuity is available when age plus years of service equal 90 and normal retirement age
is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced
Social Security benefits capped at 66.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits
for PEPFF members first hired after June 30, 2014, vest on a prorated bases from 50% after ten
years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average
salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
1. GERF Contributions
Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.5%,
respectively, of their annual covered salary in calendar year 2016. The City was required to
contribute 11.78% of pay for Basic Plan members and 7.5% for Coordinated Plan members in
calendar year 2016. The City contributions to the GERF for the year ended December 31, 2016
were $193,684. The City contributions were equal to the required contributions as set by state
statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year
2016. The City was required to contribute 16.2% of pay for PEPFF members in calendar year
2016. The City contributions to the PEPFF for the year ended December 31, 2016 were $424,970.
The City contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2016, the City reported a liability of $3,142,248 for its proportionate share of
GERF's net pension liability. The City's net pension liability reflected a reduction due to the State
of Minnesota's contribution of $6 million to the fund in 2016. The State of Minnesota is
considered a non -employer contributing entity and the state's contribution meets the definition of a
special funding situation. The State of Minnesota's proportionate share of the net pension liability
associated with the City totaled $41,033. The net pension liability was measured as of June 30,
2016, and the total pension liability used to calculate the net pension liability was determined by an
65
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
actuarial valuation as of that date. The City's proportion of the net pension liability was based on
the City's contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2015 through June 30, 2016, relative to the total employer contributions
received from all of PERA's participating employers. At June 30, 2016, the City's proportionate
share was 0.0387%, which was a decrease of 0.0023% from its proportionate share measured as of
June 30, 2015.
For the year ended December 31, 2016, the City recognized pension expense of $394,752 for its
proportionate share of the GERF's pension expense. In addition, the City recognized an additional
$12,235 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota's contribution of $6 million to the GERF.
At December 31, 2016, the City reported its proportionate share of the GERF's deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
615,255
596,412
$255,261
137,116
103,199 -
$1,314,866 $392,377
$103,199 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability during 2017. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2017 $215,416
2018
215,415
2019
274,957
2020
113,502
2021
-
Thereafter
-
2. PEPFF Pension Costs
At December 31, 2016, the City reported a liability of $10,394,121 for its proportionate share of
the PEPFF's net pension liability. The net pension liability was measured as of June 30, 2016 and
the total pension liability used to calculate the net pension liability was determined by an actuarial
66
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
valuation as of that date. The City's proportion of the net pension liability was based on the City's
contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2015 through June 30, 2016, relative to the total employer contributions received from
all of PERA's participating employers. At June 30, 2016, the City's proportion was 0.259%, which
was an increase of 0.010% from its proportion measured as of June 30, 2015. The City also
recognized $23,310 for the year ended December 31, 2016 as revenue (and an offsetting reduction
of net pension liability) for its proportionate share of the State of Minnesota's on -behalf
contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
For the year ended December 31, 2016, the City recognized pension expense of $1,818,967 for its
proportionate share of the PEPFF's pension expense.
At December 31, 2016, the City reported its proportionate share of the PEPFF's deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Differences between expected and
actual economic experience
Changes in actuarial assumptions
Difference between projected and
actual investment earnings
Changes in proportion
Contributions paid to PERA
subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ - $1,192,403
5,720,339 -
1,586,216
93,543
233,671 -
$7,633,769 $1,192,403
A total of $233,671 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability during 2017. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as outflows:
Year Ended Pension
December 31, Expense
2017 $1,333,808
2018
1,333,808
2019
1,333,810
2020
1,205,619
2021
1,000,650
Thereafter
-
The net pension liability will be liquidated by the general, water and sewer funds.
67
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2016 actuarial valuation was determined using the following
actuarial assumptions:
Inflation 2.50% per year
Active member payroll growth 3.25% per year
Investment rate of return 7.50%
Salary increases were based on a service -related table. Mortality rates for active members, retirees,
survivors, and disabilitants were based on RP -2014 tables for the GERF and RP -2000 tables for the
PEPFF for males or females, as appropriate, with slight adjustments. Cost of living benefit increases
for retirees are assumed to be 1% for all future years for the GERF and PEPFF.
Actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial
experience studies. The most recent four-year experience study in the GERF was completed in 2015.
The experience study for PEPFF was for the period July 1, 2004 through June 30, 2009.
The following changes in actuarial assumptions occurred in 2016:
General Employees Retirement Fund
• The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2035 and 2.5% per year thereafter to 1.0% per year for all future years.
• The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Public Employees Police and Fire Fund
• The assumed post-retirement benefit increase rate was changed from 1.0% per year through
2037 and 2.5% per year thereafter to 1.0% per year for all future years.
• The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 5.6%.
• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
68
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
The long-term expected rate of return on pension plan investments is 7.5%. The State Board of
Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a
regular basis of the long-term expected rate of return using a building-block method in which best -
estimate ranges of expected future rates of return are developed for each major asset class. These
ranges are combined to produce an expected long-term rate of return by weighting the expected future
rates of return by the target asset allocation percentages. The target allocation and best estimates of
geometric real rates of return for each major asset are summarized in the following table:
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%, a reduction from the 7.9% used
in 2015. The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and employees will be made at the rate set in Minnesota statutes. Based on that
assumption, the fiduciary net position of the GERF was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
In the PEPFF, the fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members through June 30, 2056. Beginning in fiscal years ended June
30, 2057 for the PEPFF, when projected benefit payments exceed the funds' projected fiduciary net
position, benefit payments were discounted at the municipal bond rate of 2.85% based on an index of
20 -year general obligation bonds with an average AA credit rating at the measurement date. An
equivalent single discount rate of 5.60% for the PEPFF was determined that produced approximately
the same present value of projected benefits when applied to all years of projected benefits as the
present value of projected benefits using 7.50% applied to all years of projected benefits through the
point of assent depletion and 2.85% after.
69
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Domestic stocks
45%
5.50%
International stocks
15%
6.00%
Bonds
18%
1.45%
Alternative assets
20%
6.40%
Cash
2%
0.50%
Totals
100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%, a reduction from the 7.9% used
in 2015. The projection of cash flows used to determine the discount rate assumed that contributions
from plan members and employees will be made at the rate set in Minnesota statutes. Based on that
assumption, the fiduciary net position of the GERF was projected to be available to make all projected
future benefit payments of current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine the total
pension liability.
In the PEPFF, the fiduciary net position was projected to be available to make all projected future
benefit payments of current plan members through June 30, 2056. Beginning in fiscal years ended June
30, 2057 for the PEPFF, when projected benefit payments exceed the funds' projected fiduciary net
position, benefit payments were discounted at the municipal bond rate of 2.85% based on an index of
20 -year general obligation bonds with an average AA credit rating at the measurement date. An
equivalent single discount rate of 5.60% for the PEPFF was determined that produced approximately
the same present value of projected benefits when applied to all years of projected benefits as the
present value of projected benefits using 7.50% applied to all years of projected benefits through the
point of assent depletion and 2.85% after.
69
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
G. PENSION LIABILITY SENSITIVITY
The following presents the City's proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City's proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately -issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2016 is as follows:
GERF
PEPFF
Fire Relief (Note 9)
Total
FTI
$406,987
1,818,967
66,668
$2,292,622
1% Decrease in
I% Increase in
Discount Rate (6.5%)
Discount Rate (7.5%)
Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability
$4,462,923
$3,142,248
$2,054,371
1% Decrease in
I% Increase in
Discount Rate (4.6%)
Discount Rate (5.6%)
Discount Rate (6.6%)
City's proportionate share of the
PEPFF net pension liability
$14,550,389
$10,394,121
$6,998,133
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan's fiduciary net position is available in a separately -issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2016 is as follows:
GERF
PEPFF
Fire Relief (Note 9)
Total
FTI
$406,987
1,818,967
66,668
$2,292,622
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 9 DEFINED BENEFIT PENSION PLAN — FIRE DIVISION
A. PLAN DESCRIPTION
The Lino Lakes Public Safety Department — Fire Division participates in the Statewide Volunteer
Firefighter Retirement Plan (SVF), an agent multiple -employer lump -sum defined benefit pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan
covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting
corporations that have elected to join the plan. As of December 31, 2016 (measurement date), the plan
covered 19 active firefighters and zero vested terminated fire fighters whose pension benefits are
deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter
353G.
B. BENEFITS PROVIDED
The SVF provides lump -sum retirement, death, and supplemental benefits to covered firefighters and
survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per
year of service approved by the City of Lino Lakes. The benefit is selected from 71 possible levels of
$100 increments ranging from $500 to $7,500 per year of service. Members are eligible for a lump -
sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro -rated
vesting schedule that increases from 5 years at 40% through 20 years at 100%.
C. CONTRIBUTIONS
The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as
specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed
$0 in fire state aid to the plan for the year ended December 31, 2016. The City recognized $66,668 as
pension expense for its proportionate share of the State of Minnesota's on -behalf contributions to the
SVF. Required employer contributions are calculated annually based on statutory provisions. The
City's statutorily -required contributions to the SVF plan for the year ended December 31, 2016 were
$0. The City's contributions were equal to the required contributions as set by state statute, if
applicable. In addition, the City made voluntary contributions of $44,394 to the plan.
71
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. PENSION COSTS
At December 31, 2016, the City reported a net pension liability of $10,713 for the SVF plan. The net
pension liability was measured as of December 31, 2016. The total pension liability used to calculate
the net pension liability in accordance with GASB 68 was determined by PERA applying an actuarial
formula to specific census data certified by the fire department as of December 31, 2016. The
following table presents the changes in net pension liability during the year.
Beginning balance December 31, 2015
Changes for the year:
Service cost
Interest on pension liability
Actuarial experience (gains) / losses
Projected investment earnings
Contributions - employer
Contributions - State of MN
Asset (gain) / loss
Benefit payouts
PERA administrative fee
Net changes
Balance end of year December 31, 2016
34,183
$55,240
There were no provision changes during the measurement period.
44,394 (44,394)
133 (133)
44,527 (10,344)
$44,527 $10,713
For the year ended December 31, 2016, the City recognized pension expense of $66,668.
At December 31, 2016, the City reported deferred inflows of resources from the following sources:
Difference between projected and
actual investment earnings
Differences between expected and
actual economic experience
Total
72
Deferred Outflows Deferred Inflows
of Resources of Resources
$106
11,455
$11,561
Plan
Net
Total
Fiduciary
Pension
Pension
Net
Liability
Liability
Position
(Asset)
(a)
(b)
(a -b)
$21,057
$ -
$21,057
38,419
-
38,419
3,568
-
3,568
(7,804)
-
(7,804)
34,183
$55,240
There were no provision changes during the measurement period.
44,394 (44,394)
133 (133)
44,527 (10,344)
$44,527 $10,713
For the year ended December 31, 2016, the City recognized pension expense of $66,668.
At December 31, 2016, the City reported deferred inflows of resources from the following sources:
Difference between projected and
actual investment earnings
Differences between expected and
actual economic experience
Total
72
Deferred Outflows Deferred Inflows
of Resources of Resources
$106
11,455
$11,561
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year Ended
Pension
December 31,
Expense
2017
($3,325)
2018
(3,325)
2019
(3,326)
2020
(1,585)
2021
-
Thereafter
-
E. ACTUARIAL ASSUMPTIONS
The total pension liability at December 31, 2016, was determined using the entry age normal actuarial
cost method and the following actuarial assumptions:
• Retirement eligibility at the later of age 50 or 20 years of service
• Investment rate of return of 6.0%
• Inflation rate of 3.0%
There were no changes in actuarial assumptions in 2016.
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows
used to determine the discount rate assumed that contributions to the SVF plan will be made as
specified in statute. Based on that assumption and considering the funding ratio of the plan, the
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City's net pension liability for the SVF plan, calculated using the discount
rate disclosed in the preceding paragraph, as well as what the City's net pension liability would be if it
were calculated using a discount rate I% lower or I% higher than the current discount rate:
1% Decrease in I% Increase in
Discount Rate (5.0%) Discount Rate (6.0%) Discount Rate (7.0%)
Net pension liability $16,471 $10,713 $5,405
73
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
H. PLAN INVESTMENTS
1. Investment Policy
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota
Constitution to invest all state funds. Its membership as specified in the Constitution is comprised
of the Governor (who is designated as chair of the Board), State Auditor, Secretary of State and
State Attorney General.
All investments undertaken by the SBI are governed by the prudent person rule and other standards
codified in Minnesota Statutes, Chapter I IA and Chapter 356A.
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the
Investment Advisory Council, establishes investment policies for all funds under its control. These
investment policies are tailored to the particular needs of each fund and specify investment
objectives, risk tolerance, asset allocation, investment management structure and specific
performance standards. Studies guide the on-going management of the funds and are updated
periodically.
2. Asset Allocation
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset
allocation for the Statewide Volunteer Firefighter Retirement Plan (VOLP) that includes
allocations to domestic equity, international equity, bonds and cash equivalents. The long-term
target asset allocation and long-term expected real rate of return is the following:
The 6% long-term expected rate of return on pension plan investments was determined using a
building-block method. Best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using both long-term historical returns and
long-term capital market expectations. The asset class estimates and the target allocations were
then combined to produce a geometric, long-term expected real rate of return for the portfolio.
Inflation expectations were applied to derive the nominal rate of return for the portfolio.
3. Description of significant investment policy changes during the year
The SBI made no significant changes to their investment policy during fiscal year 2016 for the
Statewide Volunteer Firefighter Retirement Plan.
74
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Domestic Stocks
35%
5.50%
International Stocks
15%
6.00%
Bonds
45%
1.45%
Cash
5%
0.50%
100%
The 6% long-term expected rate of return on pension plan investments was determined using a
building-block method. Best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using both long-term historical returns and
long-term capital market expectations. The asset class estimates and the target allocations were
then combined to produce a geometric, long-term expected real rate of return for the portfolio.
Inflation expectations were applied to derive the nominal rate of return for the portfolio.
3. Description of significant investment policy changes during the year
The SBI made no significant changes to their investment policy during fiscal year 2016 for the
Statewide Volunteer Firefighter Retirement Plan.
74
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the SVF plan's fiduciary net position as of December 31, 2016 is available
in a separately -issued PERA financial report that includes financial statements and required
supplementary information. That report may be obtained at www.mnpera.org.
Note 10 OTHER POST -EMPLOYMENT BENEFITS (OPEB)
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Note 8 and 9, the City provides post -
employment health care benefits (as defined in paragraph B) for retired employees through a single -
employer defined benefit plan. The City's OPEB plan is administered by the City. The authority to
provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a, and 299A.465.
The benefits, benefit levels, employee contributions and employer contributions are governed by the
City and can be amended by the City through its personnel manual and collective bargaining
agreements with employee groups. The Plan is not accounted for as a trust fund, as an irrevocable trust
has not been established to account for the plan. The Plan does not issue a separate report.
B. BENEFITS PROVIDED
The City is required by State Statute to allow retirees to continue participation in the City's group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Active employees, who retire from the City when over age 50 and with 20 years of service,
may continue coverage with respect to both themselves and their eligible dependent(s) under the City's
health benefits program until age 65.
All health care coverage is provided through the City's group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City -sponsored group health insurance plan in
which they participate. The premium is a blended rate determined on the entire active and retiree
population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those
afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer
and the City's plan becomes secondary.
C. PARTICIPANTS
As of the January 1, 2014 actuarial valuation, participants of the plan consisted of 48 active employees
and 6 retirees and beneficiaries purchasing health insurance coverage through the City. The number of
employers participating in the plan was one.
al
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
D. FUNDING POLICY
The additional cost of using a blended rate for actives and retirees is currently funded on a pay-as-you-
go basis. The City Council may change the funding policy at any time.
E. ANNUAL OPEB COSTS AND NET OPEB OBLIGATION
The City's annual OPEB cost is calculated based on the annual required contribution (ARC) of the
employer, an amount actuarially determined in accordance with the parameters of GASB Statement No.
45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period
not to exceed 30 years. The net OPEB obligation as of December 31, 2016, was calculated as follows:
Annual required contribution (ARC)
$31,590
Interest on net OPEB obligation
974
Adjustment to Annual Required Contribution
(3,756)
Annual OPEB cost (expense)
28,808
Contributions made
22,513
Increase in net OPEB obligation
6,295
Net OPEB obligation - beginning of year
90,852
Net OPEB obligation - end of year
$97,147
The net OPEB obligation is generally liquidated by the General Fund.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for the previous three years was as follows:
F. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability
(URAL) was $547,626. The annual payroll for active employees covered by the plan in the actuarial valuation
was $5,265,020 for a ratio of UAAL to covered payroll ratio of 10.4%.
76
Percentage of
Fiscal Year
Annual OPEB
Employer
Annual OPEB Cost
Net OPEB
Ended
Cost
Contributions
Contributed
Obligation
December 31, 2014
$26,468
$36,109
136.4%
$91,023
December 31, 2015
28,814
28,984
100.6%
90,852
December 31, 2016
28,808
22,513
78.1%
97,147
F. FUNDED STATUS AND FUNDING PROGRESS
As of January 1, 2014, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability
(URAL) was $547,626. The annual payroll for active employees covered by the plan in the actuarial valuation
was $5,265,020 for a ratio of UAAL to covered payroll ratio of 10.4%.
76
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
G. ACTUARIAL METHODS AND ASSUMPTIONS
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality and the health care cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions (ARC) of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future. The schedule of funding progress, presented as required supplementary
information following the notes to financial statements, presents multi-year trend information that
shows whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effect of short-term volatility in actuarial accrued liabilities and the actuarial
value of assets, consistent with the long-term perspective of the calculations.
In the January 1, 2014 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 1% investment rate of return (net of administrative expenses), which is a
blended rate of the expected long-term investment returns on plan assets and on the employer's own
investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend
rate was 8%, decreasing to an ultimate rate of 3% after six years. These rates include a 3% inflation rate. The
UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining
amortization period at December 31, 2016 was 30 years.
Note 11 STEWARDSHIP. COMPLIANCE AND ACCOUNTABILITY
A. DEFECIT FUND BALANCES
The City has deficit fund balances at December 31, 2016 as follows:
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
V&A
Fund Balance
Deficit
Nonmajor Governmental Funds:
G.O. Utility Revenue Bonds of 2016A
($450)
G.O. Improvement Bonds of 2016B
(450)
G.O. Tax Abatement Bonds of 2016C
(450)
Tax Increment Financing 141
(774,983)
21st Ave Extension
(119,634)
Fire House #2 Construction
(2,324)
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
V&A
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of expenditure categories within the General Fund that exceed budget
appropriations:
Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final
budgeted expenditures by $33,062.
Note 12 INTERFUND RECEIVABLES AND PAYABLES
The City provides temporary advances to funds that have insufficient cash balances by means of an advance
from another fund. A summary of such advances as of December 31, 2016 is as follows:
Nonmajor Funds:
G.O. Utility Revenue Bonds of 2016A
G.O. Improvement Bonds of 2016B
G.O. Tax Abatement Bonds of 2016C
Closed Bond Fund
78
Receivable Payable
$ - $450
- 450
- 450
1,350 -
$1,350 $1,350
Final
Budget
Actual
Overage
General governmant:
Elections
$28,504
$28,512
$8
Engineering/planning
105,276
117,744
12,468
Government buildings
506,820
528,723
21,903
Public safety:
Police
3,521,366
3,584,901
63,535
Conservation of natural resources:
Forestry
52,380
54,176
1,796
Solid waste abatement
79,909
81,402
1,493
Community development:
Economic development
102,350
102,816
466
Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final
budgeted expenditures by $33,062.
Note 12 INTERFUND RECEIVABLES AND PAYABLES
The City provides temporary advances to funds that have insufficient cash balances by means of an advance
from another fund. A summary of such advances as of December 31, 2016 is as follows:
Nonmajor Funds:
G.O. Utility Revenue Bonds of 2016A
G.O. Improvement Bonds of 2016B
G.O. Tax Abatement Bonds of 2016C
Closed Bond Fund
78
Receivable Payable
$ - $450
- 450
- 450
1,350 -
$1,350 $1,350
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Long-term interfund loans are classified as interfund loan receivable/payable. A summary of such loans as of
December 31, 2016 is as follows:
Note 13 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2016 are as follows:
Major Funds:
General Fund
G.O. Improvement Bonds of 2005A
G.O. Improvement Note of 2009A
Area and Unit Charge
Water Fund
Sewer Fund
Nonmajor governmental funds
Total
$4,043,638 $4,043,638
Transfer In Transfer Out
$488,084
Receivable
Payable
Major Funds:
309,000
-
G.O. Improvement Bonds of 2005A
$ -
$2,876,643
Area and Unit Charge
194,525
-
Sewer Fund
559,110
-
Nonmajor Funds:
$3,521,180
G.O. Improvement Bonds of 2014A
199,452
-
Closed Bond Fund
773,018
-
Building and Facilities
2,317,533
-
Dedicated Parks
-
194,525
Tax Increment Financing 1-11
-
773,018
21 st Avenue Extension
-
199,452
Note 13 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2016 are as follows:
Major Funds:
General Fund
G.O. Improvement Bonds of 2005A
G.O. Improvement Note of 2009A
Area and Unit Charge
Water Fund
Sewer Fund
Nonmajor governmental funds
Total
$4,043,638 $4,043,638
Transfer In Transfer Out
$488,084
$691,439
152,784
-
309,000
-
1,001
315,044
-
34,627
-
244,594
2,570,311
2,235,476
$3,521,180
$3,521,180
During 2016, transfers were made to provide funding for capital improvement projects and capital outlay in
accordance with the City's capital improvement plan. Transfers were also made to provide resources for debt
service payments, to close capital project funds, and to allocate financial resources to funds that received benefit
from services provided by another fund. These transfers are routine and consistent with past practices.
79
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 14 FUND BALANCE
At December 31, 2016, a summary of the governmental fund balance classifications is as follows:
Note 15 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of
$4,744,742 and a net book value of $1,963,326, to New Creations Child Care and Learning Center, LLC. The lease is
dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of
between $5.94 and $8.65 per square foot over the lease term, for a total of $330,904.
Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows:
Year Ending
December 31,
2017
2018
2019
80
Amount
$75,617
77,901
39,522
$193,040
G.O.
G.O.
Other
General
Improvement
Improvement
Area and
Governmental
Fund
Bonds of 2005A
Note of 2009A
Unit Charge
Funds
Total
Nonspendable:
Prepaid items
$225,114
$
$
$
$1,220
$226,334
Corpus ofpermanent fund
-
100,000
100,000
Total nonspendable
225,114
101,220
326,334
Restricted for:
Debt service
-
226,135
22
5,514,718
5,740,875
Economic development
-
225,000
225,000
Blue Heron Days
11,619
11,619
Narcotics and forfeiture funds
73,049
73,049
Tax increment purposes
438,026
438,026
Environmental purposes
13,855
13,855
Total restricted
226,135
22
6,276,267
6,502,424
Committed for:
Cable TV purposes
-
134,072
134,072
Recreation purposes
36,878
36,878
Total committed
170,950
170,950
Assigned for:
Capital improvements
6,266,200
9,512,280
15,778,480
Unassigned
6,031,077
(978,496)
5,052,581
Total fund balance
$6,256,191
$226,135
$22
$6,266,200
$15,082,221
$27,830,769
Note 15 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of
$4,744,742 and a net book value of $1,963,326, to New Creations Child Care and Learning Center, LLC. The lease is
dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of
between $5.94 and $8.65 per square foot over the lease term, for a total of $330,904.
Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows:
Year Ending
December 31,
2017
2018
2019
80
Amount
$75,617
77,901
39,522
$193,040
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 16 TAX INCREMENT DISTRICTS
The City is the administrating authority for three tax increment districts. The City's tax increment districts are
subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse
of tax increments could become a liability of the applicable fund. Management has indicated that they are not
aware of any instances of noncompliance which could have a material effect on the financial statements.
The following table reflects values as of December 31, 2016:
Note 17 COMMITMENTS AND CONTINGENCIES
A. LITIGATION
Existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance, of an immaterial amount, or, in the judgment of the City's management, remotely
recoverable by plaintiffs.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2016.
81
TIF 1-5
TIF 1-11
Cottage
TIF 1-10
Woods
Homesteads
Panattoni
Edge
Authorizing law
M.S. 469
M.S. 469
M.S. 469
Year established
1994
2004
2005
Final year of district
2022
2023
2031
Net tax capacity:
Original
$128
$15,869
$7,241
Current (payable 2016)
30,079
218,452
116,280
Captured - retained
$29,951
$202,583
$109,039
Note 17 COMMITMENTS AND CONTINGENCIES
A. LITIGATION
Existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance, of an immaterial amount, or, in the judgment of the City's management, remotely
recoverable by plaintiffs.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2016.
81
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
C. COMMITTED CONTRACTS
At December 31, 2016, the City had commitments of $379,727 for uncompleted construction contracts.
Note 18 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors
and omissions, injuries to employees and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The
City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed
necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various
amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from
the insurance policies. These amounts are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and employee
health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 19 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements:
Statement No. 73 Accounting and Financial Reporting for Pensions and Related Assets That Are Not
within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and
68. The provisions in Statement 73 are effective for fiscal years beginning after June 15, 2015 — except
those provisions that address employers and governmental nonemployer contributing entities for pensions
that are not within the scope of Statement 68, which are effective for fiscal years beginning after June 15,
2016.
Statement No. 74 Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The
provisions in Statement 74 are effective for fiscal years beginning after June 15, 2016.
Statement No. 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
The provisions in Statement 75 are effective for fiscal years beginning after June 15, 2017.
82
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Statement No. 80 Blending Requirements for Certain Component Units. The provisions of this Statement
are effective for reporting periods beginning after June 15, 2016.
Statement No. 81 Irrevocable Split -Interest Agreements. The provisions of this Statement are effective for
reporting periods beginning after December 15, 2016.
Statement No. 82 Pension Issues — an amendment of GASB Statement No. 67, No. 68 and No. 73. The
provisions of this Statement are effective for reporting periods beginning after June 15, 2016, except for the
requirements of this Statement for the selection of assumptions in a circumstance in which an employer's
pension liability is measured as of a date other than the employer's most recent fiscal year-end. In that
circumstance, the requirements for the selection of assumptions are effective for that employer in the first
reporting period in which the measurement date of the pension liability is on or after June 15, 2017.
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2017.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 75 will have a material impact.
Note 20 SPECIAL ITEM
Effective January 27, 2016, the City formally withdrew from the Centennial Fire District, which was a joint
venture among the City of Lino Lakes and two other cities. The City created its own fire department which
began operations in January 2016. Pursuant to the terms of the joint powers agreement, the City received its
proportionate share of the Centennial Fire District's cash and firefighting equipment. The transaction is
recorded as a special item in the amount of $1,111,834 (cash received) in the statement of revenues,
expenditures and changes in fund balance, and as a special item in the amount of $1,333,166 (cash plus value of
equipment received) in the Statement of Activities. No other assets or liabilities were transferred.
83
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2016
Note 21 PRIOR PERIOD ADJUSTMENT
During 2016, it was determined that the allocation of the net pension liability and related deferred inflows and outflows
of resources between governmental activities and business -type activities was incorrect as of December 31, 2015. As a
result, net position as of January 1, 2016 has been restated as follows:
Business -type Activities
Governmental Water Sewer
Activities Fund Fund Total
Net position - January 1, as previously reported $40,754,159 $20,401,628 $23,398,831 $84,554,618
Prior period adjustment 177,446 (88,703) (88,743) -
Net position - January 1, as restated $40,931,605 $20,312,925 $23,310,088 $84,554,618
84
REQUIRED SUPPLEMENTARY INFORMATION
85
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
Statement 11
Page 1 of 6
Total revenues 8,975,410 9,231,747 9,417,311 185,564
86
Variance
with Final
Budget -
2016 Actual
Positive
Budgeted
Amounts
Amounts
(Negative)
Original
Final
Revenues:
General propery taxes:
Current and delinquent
$7,108,572
$6,026,378
$6,100,460
$74,082
Fiscal disparities
-
1,042,194
928,588
(113,606)
Excess tax increments
-
8,000
8,548
548
Total general property taxes
7,108,572
7,076,572
7,037,596
(38,976)
Licenses and permits:
Business
103,300
120,300
136,363
16,063
Non -business
388,683
629,020
759,218
130,198
Total licenses and permits
491,983
749,320
895,581
146,261
Intergovernmental:
State:
Police state aid
190,000
208,500
208,848
348
OTS grant
110,000
110,000
85,385
(24,615)
MSA maintenance
261,000
253,500
253,523
23
Other
19,000
19,000
20,950
1,950
County solid waste grant
75,000
75,000
85,741
10,741
Total intergovernmental
655,000
666,000
654,447
(11,553)
Special assessments
15,000
10,000
4,618
(5,382)
Charges for services:
General government
9,850
9,850
18,508
8,658
Engineering and planning fees
15,000
30,000
35,933
5,933
Public safety
211,200
191,200
212,192
20,992
Public services
25,500
25,500
26,057
557
Investment management charge to other funds
50,000
50,000
50,000
-
Total charges for services
311,550
306,550
342,690
36,140
Fines and forfeits
150,500
200,500
220,905
20,405
Investment earnings
30,000
30,000
37,887
7,887
Net increase in fair value of investments
-
-
2,553
2,553
Miscellaneous:
Gas franchise fees
50,000
50,000
43,563
(6,437)
Building lease revenue
124,805
104,805
97,873
(6,932)
Refunds and reimbursements
30,000
30,000
71,985
41,985
Donations
5,000
5,000
300
(4,700)
Other
3,000
3,000
7,313
4,313
Total miscellaneous
212,805
192,805
221,034
28,229
Total revenues 8,975,410 9,231,747 9,417,311 185,564
86
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
Statement 11
Page 2 of 6
87
Variance
with Final
Budget -
2016 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original
Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services
40,638
40,638
39,131
1,507
Other services and charges
16,500
13,800
13,017
783
Contractual services
16,500
17,250
17,139
111
Total mayor and city council
73,638
71,688
69,287
2,401
Elections:
Current:
Personal services
20,604
20,604
21,738
(1,134)
Supplies
800
800
962
(162)
Other services and charges
2,200
2,200
502
1,698
Contractual services
300
300
727
(427)
Capital Outlay
4,600
4,600
4,583
17
Total elections
28,504
28,504
28,512
(8)
Administration:
Current:
Personal services
484,235
460,912
432,492
28,420
Other services and charges
26,360
17,860
11,961
5,899
Contractual services
8,000
23,000
21,057
1,943
Total administration
518,595
501,772
465,510
36,262
Finance:
Current:
Personal services
273,590
273,590
289,955
(16,365)
Supplies
900
900
856
44
Other services and charges
146,720
146,720
115,721
30,999
Contractual services
100,900
100,900
100,570
330
Total finance
522,110
522,110
507,102
15,008
Cable TV:
Current:
Personal services
2,340
2,340
2,364
(24)
Capital outlay
500
500
-
500
Total cable TV
2,840
2,840
2,364
476
Legal consultants:
Current:
Contractual services
140,000
140,000
121,608
18,392
87
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
Statement 11
Page 3 of 6
Total general government
1,880,283
1,880,510
1,841,926
Variance
Public safety:
with Final
Police:
Budget -
Current:
2016 Actual
Positive
Personal services
Budgeted Amounts
Amounts
(Negative)
(65,935)
Original
Final
32,100
28,810
Expenditures: (continued)
Other services and charges
95,400
95,400
95,417
General government: (continued)
Contractual services
43,600
43,600
47,459
Engineering/planning:
Capital outlay
29,200
29,200
26,214
Current:
Total police
3,556,707
3,521,366
3,584,901
Contractual services
105,276
105,276
117,744
(12,468)
Charter commission:
Current:
Current:
Personal services
513,086
494,160
456,706
Other services and charges
2,500
1,500
1,076
424
Government buildings:
Other services and charges
38,500
33,500
26,188
Current:
Contractual services
20,980
59,380
57,795
Personal services
2,167
2,167
2,374
(207)
Supplies
46,400
66,400
72,739
(6,339)
Other services and charges
359,253
369,253
382,051
(12,798)
Contractual services
79,000
69,000
71,559
(2,559)
Total government buildings
486,820
506,820
528,723
(21,903)
Total general government
1,880,283
1,880,510
1,841,926
38,584
Public safety:
Police:
Current:
Personal services
3,356,407
3,321,066
3,387,001
(65,935)
Supplies
32,100
32,100
28,810
3,290
Other services and charges
95,400
95,400
95,417
(17)
Contractual services
43,600
43,600
47,459
(3,859)
Capital outlay
29,200
29,200
26,214
2,986
Total police
3,556,707
3,521,366
3,584,901
(63,535)
Fire protection:
Current:
Personal services
513,086
494,160
456,706
37,454
Supplies
12,750
12,750
9,277
3,473
Other services and charges
38,500
33,500
26,188
7,312
Contractual services
20,980
59,380
57,795
1,585
Capital outlay
27,000
27,000
20,185
6,815
Total fire protection
612,316
626,790
570,151
56,639
Building inspection:
Current:
Personal services
227,454
202,018
199,092
2,926
Supplies
1,650
1,650
1,360
290
Other services and charges
8,060
8,060
6,337
1,723
Contractual services
1,000
3,500
2,888
612
Total building inspection
238,164
215,228
209,677
5,551
Total public safety
4,407,187
4,363,384
4,364,729
(1,345)
88
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
Statement 11
Page 4 of 6
Total public services 2,271,260 2,134,235 2,095,012 39,223
89
Variance
with Final
Budget -
2016 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original
Final
Expenditures: (continued)
Public services:
Streets:
Current:
Personal services
540,201
538,201
534,749
3,452
Supplies
159,000
152,000
173,457
(21,457)
Other services and charges
109,600
107,600
110,550
(2,950)
Contractual services
198,000
77,275
55,860
21,415
Total streets
1,006,801
875,076
874,616
460
Fleet:
Current:
Personal services
113,983
113,983
114,930
(947)
Supplies
234,000
203,000
156,889
46,111
Other services and charges
66,880
53,380
44,903
8,477
Contractual services
32,000
77,000
97,413
(20,413)
Capital outlay
-
-
259
(259)
Total fleet
446,863
447,363
414,394
32,969
Parks:
Current:
Personal services
464,769
464,769
468,933
(4,164)
Supplies
26,500
26,500
31,126
(4,626)
Other services and charges
40,650
35,650
54,418
(18,768)
Contractual services
55,700
55,700
27,917
27,783
Total parks
587,619
582,619
582,394
225
Recreation:
Current:
Personal services
212,327
212,327
204,022
8,305
Supplies
2,500
2,500
656
1,844
Other services and charges
14,750
13,950
18,070
(4,120)
Contractual services
400
400
860
(460)
Total recreation
229,977
229,177
223,608
5,569
Total public services 2,271,260 2,134,235 2,095,012 39,223
89
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
Statement 11
Page 5 of 6
►! 1
Variance
with Final
Budget -
2016 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original
Final
Expenditures: (continued)
Conservation of natural resources:
Forestry:
Current:
Personal services
36,250
36,250
36,032
218
Supplies
750
750
750
-
Other services and charges
380
380
380
-
Contractual services
10,000
10,000
11,986
(1,986)
Capital outlay
5,000
5,000
5,028
(28)
Total forestry
52,380
52,380
54,176
(1,796)
Environmental:
Current:
Personal services
53,662
43,662
40,406
3,256
Supplies
1,000
1,000
130
870
Other services and charges
7,050
7,050
6,066
984
Contractual services
1,200
1,200
33
1,167
Total environmental
62,912
52,912
46,635
6,277
Solid waste abatement:
Current:
Personal services
53,909
53,909
49,408
4,501
Supplies
-
-
153
(153)
Other services and charges
11,500
11,500
13,025
(1,525)
Contractual services
6,000
6,000
18,816
(12,816)
Capital outlay
8,500
8,500
-
8,500
Total solid waste abatement
79,909
79,909
81,402
(1,493)
Total conservation of natural resources
195,201
185,201
182,213
2,988
Community development:
Community development:
Current:
Personal services
200,548
200,548
194,773
5,775
Supplies
100
100
29
71
Other services and charges
8,150
8,150
8,707
(557)
Contractual services
1,400
1,400
875
525
Total community development
210,198
210,198
204,384
5,814
Economic development:
Current:
Personal services
21,637
15,850
16,194
(344)
Other services and charges
79,100
86,100
86,222
(122)
Contractual services
400
400
400
-
Total economic development
101,137
102,350
102,816
(466)
►! 1
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2016
Expenditures: (continued)
Planning and zoning commission:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total planning and zoning commission
Total community development
Other:
Contingency
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
Budgeted Amounts
Original Final
Statement 11
Page 6 of 6
Variance
with Final
Budget -
2016 Actual Positive
Amounts (Negative)
91,628
91,628
95,438
(3,810)
200
200
-
200
14,150
14,150
12,353
1,797
40,250
37,750
5,307
32,443
146,228
143,728
113,098
30,630
457,563
456,276
420,298
35,978
125,500 - - -
9,336,994 9,019,606 8,904,178 115,428
(361,584) 212,141 513,133 300,992
478,084 478,084 488,084 10,000
(539,500) (690,225) (691,439) (1,214)
(61,416) (212,141) (203,355) 8,786
($423,000) $0 309,778 $309,778
5,946,413
$6,256,191
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS - RETIREE HEALTH PLAN
For The Year Ended December 31, 2016
Statement 12
V►
Unfunded
Actuarial
Actuarial
Actuarial
UAAL as a
Actuarial
Value of
Accrued
Accrued
Funded
Covered
Percentage of
Valuation
Assets
Liability (AAL)
Liability (URAL)
Ratio
Payroll
Covered Payroll
Date
(a)
(b)
(b -a)
(a/b)
(c)
( (b -a) / c)
January 1, 2008
$0
$329,191
$329,191
0.0%
$4,859,980
6.8%
January 1, 2011
$0
$474,770
$474,770
0.0%
$4,888,702
9.7%
January 1, 2014
$0
$547,626
$547,626
0.0%
$5,265,020
10.4%
V►
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
Statement 13
June 30, 2015 December 31, 2015 0.0410% $2,124,883 $ - $2,124,883 $2,407,426
June 30, 2016 December 31, 2016 0.0387% 3,142,248 41,033 3,183,281 2,401,546
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
88.3% 78.2%
132.6% 68.9%
City's
City's
Proportionate
Proportionate
Plan
State's
Share of the
Share of the
Fiduciary
Proportionate
Net Pension
Net
Net
Share
Liability
Pension
Position
City's
City's
(Amount)
and the State's
Liability
as a
Proportionate
Proportionate
of the Net
Proportionate
as a
Percentage
Share
Share (Amount)
Pension
Share of the Net
Percentage
of the
(Percentage) of
of the Net
Liability
Pension Liability
of its
Total
Measurement Fiscal Year the Net Pension
Pension
Associated
Associated with
Covered Covered
Pension
Date Ending Liability
Liability (a)
with City (b)
City (a+b)
Payroll (c) Payroll ((a+b)/c)
Liability
June 30, 2015 December 31, 2015 0.0410% $2,124,883 $ - $2,124,883 $2,407,426
June 30, 2016 December 31, 2016 0.0387% 3,142,248 41,033 3,183,281 2,401,546
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
88.3% 78.2%
132.6% 68.9%
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2016
Statutorily
Contributions in
Contribution
Contributions as a
Required
Relation to the
Deficiency
Covered Percentage of
Fiscal Year Contribution
Statutorily Required
(Excess)
Payroll Covered
Ending (a)
Contribution (b)
(a -b)
(c) Payroll (b/c)
December 31, 2015 $182,102 $182,102 $ - $2,428,027 7.5%
December 31, 2016 193,684 193,684 - 2,582,452 7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
MIX
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Proportion
(Percentage) of
Measurement Fiscal Year the Net Pension
Date Ending Liability
June 30, 2015 December 31, 2015 0.2490%
June 30, 2016 December 31, 2016 0.2590%
Statement 15
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
M
Proportionate Share
Proportionate
of the Net Pension
Plan Fiduciary
Share (Amount)
Liability as a
Net Position as
of the Net
Percentage of its
a Percentage
Pension
Covered
Covered
of the Total
Liability (a)
Payroll (b)
Payroll (a/b)
Pension Liability
$2,829,223
$2,284,973
123.8%
86.6%
10,394,121
2,495,778
416.5%
63.9%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
M
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2016
Statutorily
Contributions in
Contribution
Contributions as a
Required
Relation to the
Deficiency
Covered Percentage of
Fiscal Year Contribution
Statutorily Required
(Excess)
Payroll Covered
Ending (a)
Contribution (b)
(a -b)
(c) Payroll (b/c)
December 31, 2015 $393,551 $393,551 $ - $2,429,327 16.2%
December 31, 2016 424,970 424,970 - 2,623,271 16.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
r.
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2016
Fiscal year ending and measurement date
Total pension liability:
Service cost
Interest on pension liability
Changes of benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments, including refunds of employee contributions
Net change in total pension liability
Total pension liability - beginning
Total pension liability - ending (a)
Plan fiduciary net position:
Contributions - employer
Contributions - State of Minnesota
Net investment income
Benefit payments, including refunds of employee contributions
Administrative expense
Other
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net pension liability/(asset) - ending (a) - (b)
Plan fiduciary net position as a percentage of the total pension liability
Covered payroll
Net pension liability as a percentage of covered employee payroll
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does
not meet the definition of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
r'Jd
Statement 17
December 31, 2016
$38,419
3,568
(7,804)
34,183
21,057
$55,240
$44,394
133
44,527
$44,527
$10,713
80.61%
N/A
N/A
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 18
SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2016
Statutorily
Contributions in
Contribution
Contributions as a
Required
Relation to the
Deficiency
Covered
Percentage of
Fiscal Year Contribution
Statutorily Required
(Excess)
Payroll
Covered -Employee
Ending (a)
Contribution (b)
(a -b)
(c)
Payroll (b/c)
December 31, 2016 $ -
$44,394
($44,394)
N/A
N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does not
meet the defintion of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2016
Note A LEGAL COMPLIANCE — BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
Note B PENSION INFORMATION
PERA — General Employees Retirement Fund
2016 Changes in Actuarial Assumptions:
• The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
• Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
PERA — Public Employees Police and Fire Fund
2016 Changes in Actuarial Assumptions:
• The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% per year thereafter to 1.0% per year for all future years.
• The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
• The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Single Employer — Fire Division
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only one year reported in the RSI, there is no additional information to include in the
notes.
M'
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100
C010]Ly, l: 31LlIIIL Mz1111ILIQky/1Bill-Jo zus] LILy, /_1110] 7
FUND FINANCIAL STATEMENTS AND SCHEDULES
Its
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102
IIIs] Ll1IT, /_11101MISIT/:I:7k1LTA 14 11, k EYE all 0 101.1
103
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104
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
PERMANENT FUNDS
Permanent Funds account for financial resources that are legally restricted to the extent that only
earnings, and not the principal, may be used for purposes that support the City's programs.
The City maintains one permanent fund — the Foxborough Environment Fund. This fund
accounts for the use of funds received for environmental maintenance and improvements in the
Foxborough area.
105
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2016
Statement 19
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Advances from other funds
Interfund loan payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balance
$10,870
$2,000
$58,932
$24,450
Permanent
332
-
-
-
332
Fund
Total
640,483
-
640,483
-
Foxborough
Nonmajor
-
Special
Debt
Capital
Environment
Governmental
1,166,995
Revenue
Service
Project
Fund
Funds
Assets
-
1,197,654
410,506
Cash and investments
$266,615
$5,289,529
$7,734,960
$138,305
$13,429,409
Accounts receivable - net
-
-
11,277
-
11,277
Prepaid items
1,220
-
-
-
1,220
Advances to other funds
-
-
1,350
-
1,350
Taxes receivable:
(205)
(1,350)
(976,941)
-
(978,496)
Due from county
-
27,736
3
-
27,739
Delinquent
-
15,008
93
-
15,101
Special assessments receivable:
Due from county
-
-
1,635
-
1,635
Delinquent
-
9,582
749
-
10,331
Deferred
-
1,173,065
409,663
-
1,582,728
Interfund loan receivable
-
199,452
3,090,551
-
3,290,003
Long-term notes receivable
225,000
-
-
-
225,000
Total assets
$492,835
$6,714,372
$11,250,281
$138,305
$18,595,793
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Salaries payable
Contracts payable
Advances from other funds
Interfund loan payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balance
$10,870
$2,000
$58,932
$24,450
$96,252
332
-
-
-
332
-
-
640,483
-
640,483
-
1,350
-
-
1,350
-
-
1,166,995
1,166,995
11,202
3,350
1,866,410
24,450
1,905,412
-
1,197,654
410,506
-
1,608,160
1,220
-
-
100,000
101,220
309,668
5,514,718
438,026
13,855
6,276,267
170,950
-
-
-
170,950
-
-
9,512,280
-
9,512,280
(205)
(1,350)
(976,941)
-
(978,496)
481,633
5,513,368
8,973,365
113,855
15,082,221
Total liabilities, deferred inflows
of resources, and fund balance $492,835 $6,714,372 $11,250,281 $138,305 $18,595,793
106
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2016
Statement 20
Expenditures:
1,213 1,155,960 1,413,138
- 2,570,311
Transfers out
Permanent
Current:
Proceeds from issuance of debt
- 1,600,000 1,889,000
- 3,489,000
Premium on bonds issued
Fund
Total
-
8,324
- 8,324
Public safety
Foxborough
Nonmajor
-
Special
Debt
Capital
Environment
Governmental
- 1,086,359
Revenue
Service
Project
Fund
Funds
Revenues:
998
-
4,106
- 5,104
Capital outlay:
General property taxes
$ -
$2,037,598
$67
$ -
$2,037,665
Tax increment
-
-
293,829
-
293,829
Intergovernmental
-
-
52,497
-
52,497
Special assessments
-
1,004,689
407,118
-
1,411,807
Charges for services
166,752
-
531,534
-
698,286
Fines and forfeits
30,748
-
-
-
30,748
Investment earnings
2,211
16,772
67,307
1,063
87,353
Net increase in fair value of investments
161
983
4,818
-
5,962
Miscellaneous
20,205
42,932
119,826
13,451
196,414
Total revenues
220,077
3,102,974
1,476,996
14,514
4,814,561
Expenditures:
1,213 1,155,960 1,413,138
- 2,570,311
Transfers out
(10,000) - (2,225,476)
Current:
Proceeds from issuance of debt
- 1,600,000 1,889,000
- 3,489,000
Premium on bonds issued
General government
-
-
8,324
- 8,324
Public safety
14,750
-
-
- 14,750
Public services
172,631
-
913,728
- 1,086,359
Conservation of natural resources
-
-
-
24,450 24,450
Community development
998
-
4,106
- 5,104
Capital outlay:
General government
-
-
140,081
- 140,081
Public safety
20,315
-
501,603
- 521,918
Public services
-
-
2,326,347
- 2,326,347
Debt service:
Principal
-
1,994,525
-
- 1,994,525
Interest and fiscal charges
-
606,759
8,578
- 615,337
Bond issuance costs
-
35,504
28,774
- 64,278
Total expenditures
208,694
2,636,788
3,931,541
24,450 6,801,473
Revenues over (under) expenditures
11,383
466,186
(2,454,545)
(9,936) (1,986,912)
Other financing sources (uses):
Transfers in
1,213 1,155,960 1,413,138
- 2,570,311
Transfers out
(10,000) - (2,225,476)
- (2,235,476)
Proceeds from issuance of debt
- 1,600,000 1,889,000
- 3,489,000
Premium on bonds issued
- - 41,497
- 41,497
Proceeds from sale of capital asset
- - 72,182
- 72,182
Total other financing sources (uses)
(8,787) 2,755,960 1,190,341
0 3,937,514
Special item - withdrawal from fire district
- - 1,111,834
- 1,111,834
Net change in fund balance 2,596 3,222,146 (152,370) (9,936) 3,062,436
Fund balance - January 1 479,037 2,291,222 9,125,735 123,791 12,019,785
Fund balance - December 31 $481,633 $5,513,368 $8,973,365 $113,855 $15,082,221
107
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108
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for particular purposes. The City maintained the following
nonmajor Special Revenue Funds during the year.
Program Recreation — established to account for various self-supporting recreational
programs.
Economic Development Authority — established to account for the receipt and uses of
funds for economic development purposes.
Cable TV Fund — established to account for activities relating to Cable TV.
Blue Heron Days — established to account for the activities associated with the Blue
Heron Days festival.
Federal Narcotics — established to account for activities associated with the receipt and
use of federal narcotics forfeitures.
State Narcotics — established to account for activities associated with the receipt and use
of state narcotics forfeitures
DUI Forfeitures — established to account activities associated with the receipt and use of
DUI forfeitures.
109
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2016
Statement 21
Liabilities and Fund Balance
Total
Liabilities:
203
Nonmajor
Accounts payable
201
Economic
$ $
$
$85
$221
Special
Salaries payable
Program
Development
204 Cable
205 Blue
206 Federal
207 State
208 DUI
Revenue
Total liabilities
Recreation
Authority
TV Fund
Heron Days
Narcotics
Narcotics
Forfeitures
Funds
Assets
Cash and investments
$47,569
$
$134,072
$11,619
$29,911
$13,317
$30,127
$266,615
Prepaid items
1,220
225,000
-
-
-
-
-
1,220
Long-term notes receivable
-
225,000
-
-
-
-
-
225,000
Total assets
$48,789
$225,000
$134,072
$11,619
$29,911
$13,317
$30,127
$492,835
Liabilities and Fund Balance
Liabilities:
Accounts payable
$10,564
$ -
$ $
$
$85
$221
$10,870
Salaries payable
127
205
-
332
Total liabilities
10,691
205
0
0
0
85
221
11,202
Fund balance:
Nonspendable
1,220
-
-
-
-
-
1,220
Restricted
-
225,000
11,619
29,911
13,232
29,906
309,668
Committed
36,878
-
134,072
-
-
-
-
170,950
Unassigned
-
(205)
-
-
-
-
(205)
Total fund balance
38,098
224,795
134,072
11,619
29,911
13,232
29,906
481,633
Total liabilities and fund balance
$48,789
$225,000
$134,072
$11,619
$29,911
$13,317
$30,127
$492,835
110
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2016
Statement 22
111
Total
203
Nonmajor
201
Economic
Special
Program
Development
204 Cable
205 Blue
206 Federal
207 State
208 DUI
Revenue
Recreation
Authority
TV Fund
Heron Days
Narcotics
Narcotics
Forfeitures
Funds
Revenues:
Charges for services
$113,945
$
$52,807
$
$
$ -
$ -
$166,752
Fines and forfeits
-
-
13,603
17,145
30,748
Investment earnings
638
960
80
242
102
189
2,211
Net increase in fair value
of investments
48
68
6
19
7
13
161
Miscellaneous
-
-
20,205
-
-
20,205
Total revenues
114,631
0
53,835
20,291
261
13,712
17,347
220,077
Expenditures:
Current:
Public safety
-
-
-
10,290
4,460
14,750
Public services
150,712
21,919
-
-
172,631
Community development
-
998
-
998
Capital outlay:
Public safety
-
-
-
-
20,315
-
-
20,315
Total expenditures
150,712
998
0
21,919
20,315
10,290
4,460
208,694
Revenues over(under)expenditures
(36,081)
(998)
53,835
(1,628)
(20,054)
3,422
12,887
11,383
Other financing sources (uses):
Transfers in
1,213
-
-
-
1,213
Transfers out
(10,000)
-
(10,000)
Total other financing sources (uses) (10,000)
1,213
-
-
-
(8,787)
Net change in fund balance
(46,081)
215
53,835
(1,628)
(20,054)
3,422
12,887
2,596
Fund balance - January 1
84,179
224,580
80,237
13,247
49,965
9,810
17,019
479,037
Fund balance -December 31
$38,098
$224,795
$134,072
$11,619
$29,911
$13,232
$29,906
$481,633
111
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112
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment
of, interest, principal and related costs on general long-term debt. The City's Debt Service Funds
account for four types of bonded indebtedness:
General Debt Bonds — are repaid primarily from property taxes.
Improvement Bonds and Notes — are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds — are repaid primarily from lease revenues received
from the EDA leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds — these bonds were issued to finance various improvements and will be
repaid primarily from pledged revenues derived from the constructed assets.
Capital Note — this note was issued to finance cable communications equipment and will
be repaid from revenues derived from franchise fees.
113
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114
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2016
Statement 23
Page 1 of 2
115
330 G.O.
328 G.O.
329 G.O.
Utility
315
Improvement
Tax Abatement
Revenue
Certificates
Bonds
Bonds
Bonds
of Indebtedness
of 2005B
of 2006C
of 2006D
Assets
Cash and investments
$149,501
$31,083
$1,853,505
$188,082
Taxes receivable:
Due from county
7,261
19
3,802
-
Delinquent
3,513
621
2,718
-
Special assessments receivable:
Delinquent
-
-
-
9,582
Deferred
-
11,945
-
32,066
Interfund loan receivable
-
-
-
-
Total assets
$160,275
$43,668
$1,860,025
$229,730
Liabilities, Deferred Inflows of Resources,
and Fund Balance
Liabilities:
Accounts payable
$ -
$ -
$200
$200
Advances from other funds
-
-
-
-
Total liabilities
-
-
200
200
Deferred inflows of resources:
Unavailable revenue
3,513
12,566
2,718
41,648
Fund balance:
Restricted
156,762
31,102
1,857,107
187,882
Unassigned
-
-
-
-
Total fund balance
156,762
31,102
1,857,107
187,882
Total liabilities, deferred inflows of
resources, and fund balance
$160,275
$43,668
$1,860,025
$229,730
115
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2016
116
334 G.O.
331 G.O.
332 G.O.
Improvement
336 G.O.
337 G.O.
CIP
TIF
and Utility
335 G.O.
Improvement
Improvement
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
of 2006E
of 2007A
of 2010A
of 2012A
of 2013A
of 2014A
Assets
Cash and investments
$929,085
$149,896
$66,502
$356,691
$298,558
$786,514
Taxes receivable:
Due from county
6,296
-
-
2,434
-
-
Delinquent
4,713
-
-
1,427
-
-
Special assessments receivable:
Delinquent
-
-
-
-
-
-
Deferred
-
-
649
36,744
491,147
600,514
Interfund loan receivable
-
-
-
-
-
199,452
Total assets
$940,094
$149,896
$67,151
$397,296
$789,705
$1,586,480
Liabilities, Deferred Inflows
of Resources, and
Fund Balance
Liabilities:
Accounts payable
$200
$200
$200
$200
$200
$200
Advances from other funds
-
-
-
-
-
-
Total liabilities
200
200
200
200
200
200
Deferred inflows of resources:
Unavailable revenue
4,713
-
649
38,170
491,147
600,514
Fund balance:
Restricted
935,181
149,696
66,302
358,926
298,358
985,766
Unassigned
-
-
-
-
-
-
Total fund balance
935,181
149,696
66,302
358,926
298,358
985,766
Total liabilities, deferred
inflows, and fund balance
$940,094
$149,896
$67,151
$397,296
$789,705
$1,586,480
116
Statement 23
Page 2 of 2
117
339 EDA
341 G.O.
343 G.O.
Total
Lease
340 G.O.
Utility
342 G.O.
Tax
Nonmajor
338 G.O.
Revenue
Capital
Revenue
Improvement
Abatement
Debt
Bonds
Bonds
Note
Bonds
Bonds
Bonds
Service
of 2015A
of 201513
of 2016A
of 2016A
of 201613
of 2016C
Funds
$236,794
$243,205
$113
$ -
$ -
$ -
$5,289,529
3,666
4,258
-
-
-
-
27,736
933
1,083
-
-
-
-
15,008
-
-
-
-
-
-
91582
-
-
-
-
-
-
1,173,065
-
-
-
-
-
-
199,452
$241,393
$248,546
$113
$0
$0
$0
$6,714,372
$200
$200
$ -
$ -
$ -
$ -
$2,000
-
-
-
450
450
450
1,350
200
200
-
450
450
450
3,350
933
1,083
-
-
-
-
1,197,654
240,260
247,263
113
-
-
-
5,514,718
-
-
-
(450)
(450)
(450)
(1,350)
240,260
247,263
113
(450)
(450)
(450)
5,513,368
$241,393
$248,546
$113
$0
$0
$0
$6,714,372
117
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118
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2016
Statement 24
Page 1 of 2
Fund balance - January 1
129,806
18,635
259,282
330 G.O.
Fund balance - December 31
$156,762
328 G.O.
329 G.O.
Utility
315
Improvement
Tax Abatement
Revenue
Certificates
Bonds
Bonds
Bonds
of Indebtedness
of 2005B
of 2006C
of 2006D
Revenues:
General property taxes
$534,062
$451
$278,320
$ -
Special assessments
121
11,829
150
7,821
Investment earnings
2,130
176
3,692
913
Net increase in fair value
of investments
129
11
197
62
Miscellaneous
-
-
-
-
Total revenues
536,442
12,467
282,359
8,796
Expenditures:
Debt service:
Principal
474,000
-
170,000
65,000
Interest and fiscal charges
35,486
-
79,030
4,904
Bond issuance costs
-
-
35,504
-
Total expenditures
509,486
0
284,534
69,904
Revenues over (under) expenditures
26,956
12,467
(2,175)
(61,108)
Other financing sources:
Transfers in
-
-
-
69,254
Proceeds from issuance of debt
-
-
1,600,000
-
Total other financing sources
-
-
1,600,000
69,254
Net change in fund balance
26,956
12,467
1,597,825
8,146
Fund balance - January 1
129,806
18,635
259,282
179,736
Fund balance - December 31
$156,762
$31,102
$1,857,107
$187,882
119
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2016
120
334 G.O.
331 G.O.
332 G.O.
Improvement
336 G.O.
337 G.O.
CIP
TIF
and Utility
335 G.O.
Improvement
Improvement
Bonds
Bonds
Bonds
Bonds
Bonds
Bonds
of 2006E
of 2007A
of 2010A
of 2012A
of 2013A
of 2014A
Revenues:
General property taxes
$460,564
$ -
$ -
$178,632
$ -
$ -
Special assessments
267
-
60,435
22,927
37,946
863,193
Investment earnings
4,974
-
312
750
-
2,260
Net increase in fair value
of investments
323
-
17
39
-
118
Miscellaneous
-
-
-
-
-
-
Total revenues
466,128
-
60,764
202,348
37,946
865,571
Expenditures:
Debt service:
Principal
380,000
380,000
100,000
230,000
60,000
105,000
Interest and fiscal charges
41,450
90,176
14,900
18,266
17,440
34,193
Bond issuance costs
-
-
-
-
-
-
Total expenditures
421,450
470,176
1149900
248,266
77,440
139,193
Revenues over (under) expenditures
44,678
(470,176)
(54,136)
(45,918)
(399494)
726,378
Other financing sources:
Transfers in
-
470,176
-
146,637
3389052
131,841
Proceeds from issuance of debt
-
-
-
-
-
-
Total other financing sources
-
470,176
-
146,637
3389052
131,841
Net change in fund balance
44,678
0
(549136)
100,719
2989558
858,219
Fund balance - January 1
8909503
149,696
120,438
2589207
(200)
127,547
Fund balance - December 31
$935,181
$149,696
$66,302
$358,926
$298,358
$985,766
120
Statement 24
Page 2 of 2
121
339 EDA
341 G.O.
343 G.O.
Total
Lease
340 G.O.
Utility
342 G.O.
Tax
Nonmajor
338 G.O.
Revenue
Capital
Revenue
Improvement
Abatement
Debt
Bonds
Bonds
Note
Bonds
Bonds
Bonds
Service
of 2015A
of 201513
of 2016A
of 2016A
of 201613
of 2016C
Funds
$270,887
$314,682
$ -
$ -
$ -
$ -
$2,037,598
-
-
-
-
-
-
1,004,689
673
784
108
-
-
-
16,772
35
47
5
-
-
-
983
-
-
42,932
-
-
-
42,932
271,595
315,513
43,045
-
-
-
3,102,974
-
-
30,525
-
-
-
1,994,525
81,740
175,417
12,407
450
450
450
606,759
-
-
-
-
-
-
35,504
81,740
175,417
42,932
450
450
450
2,636,788
189,855
140,096
113
(450)
(450)
(450)
466,186
-
-
-
-
-
-
1,155,960
-
-
-
-
-
-
1,600,000
-
-
-
-
-
-
2,755,960
189,855
140,096
113
(450)
(450)
(450)
3,222,146
50,405
107,167
-
-
-
-
2,291,222
$240,260
$247,263
$113
($450)
($450)
($450)
$5,513,368
121
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122
CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds. The City maintained the following nonmajor Capital
Project Funds during the year:
Closed Bond Fund — to account for excess funds from matured bond issues.
Building and Facilities — to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving — to account for proceeds from Equipment Certificates and
funds held to purchase capital equipment.
Office Equipment Revolving — to account for the receipt and use of funds for office
equipment purchases.
Dedicated Parks — to account for the receipts and use of monies collected from park
dedication fees.
Tax Increment FinancingF— to account for development projects financed with tax
increments.
Municipal State Aid (MSA) Construction — to account for the financing of future
reconstruction of state aid eligible streets.
Sealcoating — to account for money received from levies, assessments, and developer
charges for future street sealcoating and overlay projects.
Surface Water Management — to account for the financing of surface water management
and storm water improvements.
Street Reconstruction — to account for the financing of future reconstruction of City
streets.
Surface Water Maintenance — to account for surface water maintenance activities.
I -35E Interchange — to account for activity related to the I -35E / CSAH 14 Interchange
Reconstruction Project.
Traffic Signal Fund — the Legacy traffic signal charge fund accounts for costs associated
with construction of traffic signals in the City.
Otter Lake Road Extension — this fund accounts for activities relating to the construction
performed in the extension of the Otter Lake Road.
123
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124
21St Ave Extension — this fund accounts for activities relating to the construction
performed in the expansion of 21St Avenue within the City.
Fire House #2 Construction — this fund accounts for activities relating to the construction
of Fire House #2.
Well #6 Construction — this fund accounts for activities relating to the construction of
Well # 6 and well house.
Northpointe Improvements — this fund accounts for activities relating to the construction
of streets and utilities within the Northpointe development.
Birch Street / Centerville Road Improvements — this fund accounts for activities relating
to the construction of street improvements and sanitary sewer in conjunction with Fire
House #2.
2015 Street Reconstruction — this fund accounts for the construction and improvements to
Shenandoah Street.
Blackduck / Aqua Lane Watermain Extension — this fund accounts for activities relating
to the trunk watermain improvements along Aqua Lane to north of Blackduck Drive.
125
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126
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2016
Assets
Cash and investments
Accounts receivable - net
Advances to other funds
Taxes receivable:
Due from county
Delinquent
Special assessments receivable:
Due from county
Delinquent
Deferred
Interfund loan receivable
Total assets
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
Contracts payable
Interfund loan payable
Total liabilities
Deferred inflows of resources:
Unavailable revenue
Fund balance:
Restricted
Assigned
Unassigned
Total fund balance
Total liabilities, deferred inflows of
resources, and fund balance
Statement 25
Page 1 of 2
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
$110,622 $223,387 $1,091,703 $34,248 $446,561
- - 5,577 - -
1,350 - - - -
3 - - - -
93 - - - -
26,704 - - - -
773,018 2,317,533 - - -
$911,790 $2,540,920 $1,097,280 $34,248 $446,561
$5,380 $2,500 $ - $ - $ -
- - - - 194,525
5,380 2,500 0 0 194,525
26,797 - - -
879,613
2,538,420
1,097,280
34,248
252,036
879,613
2,538,420
1,097,280
34,248
252,036
$911,790
$2,540,920
$1,097,280
$34,248
$446,561
127
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2016
128
411 Tax
417 Tax
418 Tax
422 Surface
Increment
Increment
Increment
420 MSA
421
Water
423 Street
Financing 1-5 Financing 1-10 Financing 1-11
Construction
Sealcoating
Management
Reconstructior
Assets
Cash and investments
$249,412
$189,697
$ -
$2,012,170
$211,648
$747,048
$686,670
Accounts receivable - net
-
-
-
-
5,700
-
-
Advances to other funds
-
-
-
-
-
-
Taxes receivable:
Due from county
-
-
-
-
-
-
-
Delinquent
-
-
-
-
-
-
-
Special assessments receivable:
Due from county
-
-
-
-
-
1,635
-
Delinquent
-
-
-
-
-
749
-
Deferred
-
-
-
-
-
290,498
92,461
Interfund loan receivable
-
-
-
-
-
-
-
Total assets
$249,412
$189,697
$0
$2,012,170
$217,348
$1,039,930
$779,131
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$514
$569
$1,965
$ -
$8,087
$13,261
$ -
Contracts payable
-
-
-
-
26,083
-
-
Interfund loan payable
-
-
773,018
-
-
-
Total liabilities
514
569
774,983
0
34,170
13,261
0
Deferred inflows of resources:
Unavailable revenue
-
-
-
-
-
291,248
92,461
Fund balance:
Restricted
248,898
189,128
-
-
-
-
-
Assigned
-
-
-
2,012,170
183,178
735,421
686,670
Unassigned
-
-
(774,983)
-
-
-
-
Total fund balance
248,898
189,128
(774,983)
2,012,170
183,178
735,421
686,670
Total liabilities, deferred
inflows, and fund balance
$249,412
$189,697
$0
$2,012,170
$217,348
$1,039,930
$779,131
128
Statement 25
Page 2 of 2
$85,034 $ - $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $7,734,960
- - - - - - - - 11,277
1,350
3
93
- - - - - - - - 1,635
- 749
- - - - - - - - 409,663
- 3,090,551
$85,034 $0 $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $11,250,281
$2,247 $182 $1,065 $3,236 $ - $1,293
1,515 - 97,447 37,678 63,985 -
- 199,452 - - - -
3,762 199,634 98,512 40,914 63,985 1,293
$478 $18,155 $58,932
- 413,775 640,483
- 1,166,995
478 431,930 1,866,410
- - - - - - - - 410,506
- - - - - - - - 438,026
81,272 - - 22,882 322,289 133,428 195,225 338,148 9,512,280
- (199,634) (2,324) - - - - - (976,941)
81,272 (199,634) (2,324) 22,882 322,289 133,428 195,225 338,148 8,973,365
$85,034 $0 $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $11,250,281
129
Total
483 Blackduck/
Nonmajor
424 Surface 477 478 Fire 479 480 481 Birch St/ 4802015 Aqua Lane
Capital
Water 21st Ave House # 2 Well #6 Northpointe Centerville Rd Street Watermain
Project
Maintenance Extension Construction Construction Improvements Improvements Reconstruction Extension
Funds
$85,034 $ - $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $7,734,960
- - - - - - - - 11,277
1,350
3
93
- - - - - - - - 1,635
- 749
- - - - - - - - 409,663
- 3,090,551
$85,034 $0 $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $11,250,281
$2,247 $182 $1,065 $3,236 $ - $1,293
1,515 - 97,447 37,678 63,985 -
- 199,452 - - - -
3,762 199,634 98,512 40,914 63,985 1,293
$478 $18,155 $58,932
- 413,775 640,483
- 1,166,995
478 431,930 1,866,410
- - - - - - - - 410,506
- - - - - - - - 438,026
81,272 - - 22,882 322,289 133,428 195,225 338,148 9,512,280
- (199,634) (2,324) - - - - - (976,941)
81,272 (199,634) (2,324) 22,882 322,289 133,428 195,225 338,148 8,973,365
$85,034 $0 $96,188 $63,796 $386,274 $134,721 $195,703 $770,078 $11,250,281
129
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
Revenues:
General property taxes
Tax increment
Intergovernmental
Special assessments
Charges for services
Investment earnings
Net increase in fair value of investments
Miscellaneous
Total revenues
Expenditures:
Current:
General government
Public services
Community development
Capital outlay:
General government
Public safety
Public services
Debt service:
Interest and fiscal charges
Bond issuance costs
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
7,221 1,103 - - -
67,650 - 72,431 -
- 126,228 338,745 - -
- - 279,414 2,524 97
- - - - 8,578
7,221 194,981 618,159 74,955 8,675
16,435 (15,295) (598,924) (73,400) 272,468
Transfers in
-
402 Capital
403 Office
405
301 Closed
401 Building
Equipment
Equipment
Dedicated
Bond Fund
and Facilities
Revolving
Revolving
Parks
$67
$ -
$ -
$ -
$ -
-
-
10,295
-
-
16,584
-
-
-
-
-
177,680
-
-
277,574
6,542
1,868
8,358
569
2,573
463
138
582
51
164
-
-
-
935
832
23,656
179,686
19,235
1,555
281,143
7,221 1,103 - - -
67,650 - 72,431 -
- 126,228 338,745 - -
- - 279,414 2,524 97
- - - - 8,578
7,221 194,981 618,159 74,955 8,675
16,435 (15,295) (598,924) (73,400) 272,468
Transfers in
-
-
-
25,000
50,000
Transfers out
(378,084)
-
-
(100,000)
-
Proceeds from issuance of debt
-
-
469,000
-
-
Premium on bonds issued
-
-
-
-
-
Proceeds from sale of capital assets
-
-
72,107
75
-
Total other financing sources (uses)
(378,084)
0
541,107
(74,925)
50,000
Special item - withdrawal from fire district
-
-
1,111,834
-
-
Net change in fund balance
(361,649)
(15,295)
1,054,017
(148,325)
322,468
Fund balance - January 1
1,241,262
2,553,715
43,263
182,573
(70,432)
Fund balance - December 31
$879,613
$2,538,420
$1,097,280
$34,248
$252,036
130
Statement 26
Page 1 of 2
411 Tax
417 Tax
418 Tax
79,600
721,116
422 Surface
-
424 Surface
Increment
Increment
Increment
420 MSA
421
Water
423 Street
Water
Financing 1-5
Financing 1-10
Financing 1-11
Construction
Sealcoating
Management
Reconstruction
Maintenance
0
39,386
153,492
100,449
(23,079)
(641,506)
38,261
152,784
102,784
-
-
-
-
-
-
-
-
702
-
-
-
-
-
-
-
-
-
376,342
14,192
-
-
-
-
-
76,280
-
-
-
1,661
1,711
-
22,224
3,088
3,982
4,974
71
116
116
-
1,595
242
270
351
4
-
-
-
32,000
-
-
-
-
40,038
154,611
102,784
56,521
79,610
380,594
19,517
75
-
-
-
79,600
721,116
93,484
-
19,528
652
1,119
2,335
-
-
-
-
-
652
1,119
2,335
79,600
721,116
93,484
19,528
0
39,386
153,492
100,449
(23,079)
(641,506)
287,110
19,517
(19,453)
-
-
-
-
514,500
-
-
100,725
-
(152,784)
(102,784)
(1,084,576)
-
-
-
-
0
(152,784)
(102,784)
(1,084,576)
514,500
0
0
100,725
39,386
708
(2,335)
(1,107,655)
(127,006)
287,110
19,517
81,272
209,512
188,420
(772,648)
3,119,825
310,184
448,311
667,153
-
$248,898
$189,128
($774,983)
$2,012,170
$183,178
$735,421
$686,670
$81,272
131
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2016
Expenditures:
474
475
476 Otter
477
Current:
I -35E
Traffic
Lake Road
21 st Ave
General government
Interchange
Signal
Extension
Extension
Revenues:
-
-
-
-
General property taxes
$ -
$ -
$ -
$ -
Tax increment
-
-
-
-
Intergovernmental
-
-
-
31,500
Special assessments
-
-
-
-
Charges for services
-
-
-
-
Investment earnings
-
841
1,111
-
Net increase in fair value of investments
-
60
80
-
Miscellaneous
47,625
-
-
-
Total revenues
47,625
901
1,191
31,500
Expenditures:
Current:
General government
-
-
-
-
Public services
-
-
-
-
Community development
-
-
-
-
Capital outlay:
General government
-
-
-
-
Public safety
-
-
-
-
Public services
12,645
-
63,539
50,243
Debt service:
Interest and fiscal charges
-
-
-
-
Bond issuance costs
-
-
-
-
Total expenditures
12,645
0
63,539
50,243
Revenues over (under) expenditures
34,980
901
(62,348)
(18,743)
Other financing sources (uses):
Transfers in
224,186
32,000
115,350
122,063
Transfers out
-
(146,637)
(260,611)
-
Proceeds from issuance of debt
-
-
-
-
Premium on bonds issued
-
-
-
-
Proceeds from sale of capital assets
-
-
-
-
Total other financing sources (uses)
224,186
(114,637)
(145,261)
122,063
Special item - withdrawal from fire district
-
-
-
-
Net change in fund balance
259,166
(113,736)
(207,609)
103,320
Fund balance - January 1
(259,166)
113,736
207,609
(302,954)
Fund balance - December 31
$0
$0
$0
($199,634)
132
Statement 26
Page 2 of 2
- 8,324
- - - - - - 913,728
- - - - - - 41106
- - - - - - 140,081
36,630 - - - - - 501,603
- 726,730 68,710 23,460 54,393 1,044,592 2,326,347
- - - - - - 8,578
- - - - - 28,774 28,774
36,630 726,730 68,710 23,460 54,393 1,073,366 3,931,541
(35,594) (725,057) (55,640) (22,118) (15,863) (1,072,263) (2,454,545)
229,314 - 1,413,138
- - - - - (2,225,476)
- - - - 1,420,000 1,889,000
- - - - 41,497 41,497
_ - - - - - 72,182
0 0 0 0 229,314 1,461,497 1,190,341
- - - - - - 1,111,834
(35,594) (725,057) (55,640) (22,118) 213,451 389,234 (152,370)
33,270 747,939 377,929 155,546 (18,226) (51,086) 9,125,735
($2,324) $22,882 $322,289 $133,428 $195,225 $338,148 $8,973,365
133
483 Blackduck/
Total
478 Fire
479
480
481 Birch St/
4802015
Aqua Lane
Nonmajor
House # 2
Well #6
Northpointe
Centerville Rd
Street
Watermain
Capital
Construction
Construction
Improvements
Improvements
Reconstruction
Extension
Project Funds
$ -
$ -
$ -
$ -
$ -
$ -
$67
-
-
-
-
-
-
293,829
-
-
10,000
-
-
-
52,497
-
-
-
-
-
-
407,118
-
-
-
-
-
-
531,534
959
1,505
2,864
1,251
96
1,059
67,307
77
168
206
91
-
44
4,818
-
-
-
-
38,434
-
119,826
1,036
1,673
13,070
1,342
38,530
1,103
1,476,996
- 8,324
- - - - - - 913,728
- - - - - - 41106
- - - - - - 140,081
36,630 - - - - - 501,603
- 726,730 68,710 23,460 54,393 1,044,592 2,326,347
- - - - - - 8,578
- - - - - 28,774 28,774
36,630 726,730 68,710 23,460 54,393 1,073,366 3,931,541
(35,594) (725,057) (55,640) (22,118) (15,863) (1,072,263) (2,454,545)
229,314 - 1,413,138
- - - - - (2,225,476)
- - - - 1,420,000 1,889,000
- - - - 41,497 41,497
_ - - - - - 72,182
0 0 0 0 229,314 1,461,497 1,190,341
- - - - - - 1,111,834
(35,594) (725,057) (55,640) (22,118) 213,451 389,234 (152,370)
33,270 747,939 377,929 155,546 (18,226) (51,086) 9,125,735
($2,324) $22,882 $322,289 $133,428 $195,225 $338,148 $8,973,365
133
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
YEAR ENDED DECEMBER 31, 2016
Revenues:
Charges for services
Investment earnings
Net increase in fair value of investments
Total revenues
Expenditures:
Public services:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total current
Capital outlay
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers out
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
134
Statement 27
60,150
58,150
Variance
(5,348)
28,950
with Final
50,128
(21,178)
Budget -
-
2016 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original Final
3,000
3,000
$135,270 $135,270
$113,945
($21,325)
- -
638
638
- -
48
48
135,270 135,270
114,631
(20,639)
60,150
58,150
63,498
(5,348)
28,950
28,950
50,128
(21,178)
-
-
369
(369)
27,550
27,550
36,717
(9,167)
3,000
3,000
-
3,000
119,650
117,650
150,712
(33,062)
15,620
17,620
(36,081)
(53,701)
(10,000) (10,000) (10,000) -
$5,620 $7,620 (46,081) ($53,701)
84,179
$38,098
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCYFUNDS
For The Year Ended December 31, 2016
Statement 28
Balance
Balance
January 1,
December 31,
2016
Additions Deletions 2016
Assets:
Cash and investments $727,635
$437,702 $339,964 $825,373
Liabilities:
Deposits payable $727,635 $437,702 $339,964 $825,373
135
- This page intentionally left blank -
136
STATISTICAL SECTION (UNAUDITED)
137
- This page intentionally left blank -
138
STATISTICAL SECTION (UNAUDITED)
This part of the City of Lino Lakes, Minnesota's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures
and required supplementary information says about the City's overall financial health.
Table
Contents Number
Financial Trends Tables 1-4
These tables contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity Tables 5-8
These tables contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity Tables 9-12
These tables present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 13-14
These tables offer demographic and economic indicators to help the reader understand the
environment wihthin which the City's financial activities take place.
Operating Information Tables 15-17
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive
financial reports for the relevant year.
139
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability
and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
140
2007
2008
2009
2010
Governmental activities:
Net investment in capital assets
$36,789,153
$28,472,865
$23,400,453
$22,562,217
Restricted
10,324,467
9,870,676
9,414,474
8,428,025
Unrestricted
6,339,528
10,790,359
15,926,322
16,738,885
Total governmental activities net position
$53,453,148
$49,133,900
$48,741,249
$47,729,127
Business -type activities:
Net investment in capital assets
$29,836,775
$30,372,670
$30,071,840
$29,648,461
Unrestricted
8,063,983
9,028,778
10,112,207
10,728,626
Total business -type activities net position
$37,900,758
$39,401,448
$40,184,047
$40,377,087
Primary government:
Net investment in capital assets
$66,625,928
$58,845,535
$53,472,293
$52,210,678
Restricted
10,324,467
9,870,676
9,414,474
8,428,025
Unrestricted
14,403,511
19,819,137
26,038,529
27,467,511
Total primary government net position
$91,353,906
$88,535,348
$88,925,296
$88,106,214
GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability
and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
140
Table 1
2011
2012
2013
2014
2015
2016
$24,600,103
$22,166,342
$22,241,821
$19,540,807
$18,230,746
$18,597,344
11,598,803
11,595,112
11,000,033
8,666,357
8,635,293
13,342,852
13,463,210
17,639,038
16,849,636
20,527,704
13,888,120
10,879,734
$49,662,116
$51,400,492
$50,091,490
$48,734,868
$40,754,159
$42,819,930
$29,216,866
$28,798,095
$28,423,284
$27,556,022
$29,127,829
$31,860,610
11,201,362
12,102,013
12,999,182
13,888,278
14,672,630
13,863,447
$40,418,228
$40,900,108
$41,422,466
$41,444,300
$43,800,459
$45,724,057
$53,816,969
$50,964,437
$50,665,105
$47,096,829
$47,358,575
$50,457,954
11,598,803
11,595,112
11,000,033
8,666,357
8,635,293
13,342,852
24,664,572
29,741,051
29,848,818
34,415,982
28,560,750
24,743,181
$90,080,344
$92,300,600
$91,513,956
$90,179,168
$84,554,618
$88,543,987
141
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Expenses
Governmental activities:
General government
Public safety
Public services
Conservation of natural resources
Community development
Interest and fees on long-term debt
Total governmental activities expenses
Business -type activities:
Water
Sewer
Total business -type activities expenses
Total primary government expenses
Program revenues
Governmental activities:
Charges for services:
General government
Public safety
Public services
Conservation of natural resources
Community development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Operating grants and contributions
Capital grants and contributions
Total business -type activities
2007
2008
2009
2010
1,078,995
$2,197,672
$2,323,358
$2,201,439
$1,987,415
3,730,504
4,051,162
4,299,366
3,971,261
11,937,693
8,528,574
5,341,113
5,092,970
183,420
184,624
215,607
197,571
1,122, 802
1,114,158
1,005,997
1,105,254
980,849
1,045,781
928,668
1,064,172
20,152,940
17,247,657
13,992,190
13,418,643
1,170,902
1,020,770
1,089,569
1,045,901
1,298,963
1,287,943
1,432,107
1,466,847
2,469,865
2,308,713
2,521,676
2,512,748
$22,622,805
$19,556,370
$16,513,866
$15,931,391
$91,646
$79,844
$101,741
$98,403
1,078,995
1,296,418
725,747
691,005
575,292
600,325
594,168
605,207
4,559
3,660
3,858
4,153
15,839
11,623
8,667
14,148
851,791
693,065
682,797
617,450
7,189,346
1,094,789
1,357,015
1,388,984
9,807,468
3,779,724
3,473,993
3,419,350
1,215,763
1,058,493
1,365,817
1,087,013
1,446,112
1,472,093
1,502,164
1,498,218
-
-
62,710
-
80,750
10,117
8,769
8,709
2,742,625
2,540,703
2,939,460
2,593,940
Total primary government program revenues $12,550,093 $6,320,427 $6,413,453 $6,013,290
142
Table 2
Page 1 of 2
2011
2012
2013
2014
2015
2016
713,985
642,745
697,584
763,470
$1,990,137
$1,883,961
$1,566,388
$2,036,550
$2,016,351
$2,456,864
4,019,101
4,046,415
3,950,197
4,107,759
5,135,865
6,567,523
9,329,451
6,795,150
5,376,671
5,880,030
7,971,712
6,228,893
139,544
184,051
141,204
159,649
186,111
216,905
617,747
430,121
404,726
407,448
432,268
454,144
927,535
837,755
951,842
618,680
632,876
831,529
17,023,515
14,177,453
12,391,028
13,210,116
16,375,183
16,755,858
966,643
949,121
927,800
965,641
1,394,897
1,367,693
1,638,063
1,527,637
1,584,395
1,628,258
2,089,842
1,850,962
2,604,706
2,476,758
2,512,195
2,593,899
3,484,739
3,218,655
$19,628,221
$16,654,211
$14,903,223
$15,804,015
$19,859,922
$19,974,513
$103,687
$129,151
$93,118
$103,072
$818,468
$520,231
713,985
642,745
697,584
763,470
199,498
1,359,426
593,263
668,128
632,002
621,221
603,866
865,327
4,392
19,297
1,347
1,882
-
-
5,138
16,940
28,118
39,395
-
-
593,798
450,179
527,368
840,676
526,107
722,858
7,347,613
5,125,693
941,960
335,733
1,176,732
5,046,307
9,361,876
7,052,133
2,921,497
2,705,449
3,324,671
8,514,149
1,090,104
1,371, 809
1,208,742
965,425
1,014,836
1,094, 897
1,494,188
1,505,781
1,516,397
1,564,099
1,621,633
1,659,322
-
-
-
263,024
263,024
-
1,462
20,018
883
1,035
3,035,031
1,543,947
2,585,754
2,897,608
2,726,022
2,793,583
5,934,524
4,298,166
$11,947,630
$9,949,741
$5,647,519
$5,499,032
$9,259,195
$12,812,315
143
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Net (expense) revenue:
Governmental activities
Business -type activities
Total primary government, net
General revenues and other changes in net position:
Governmental activities:
Property taxes
Unrestricted grants and contributions
Unrestricted investment earnings
Gain on disposal of capital assets
Special item - withdrawal from fire district
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Change in market value
Transfers
Total business -type activities
Total primary government
MM 7nnR MnQ Min
($10,345,472) ($13,467,933) ($10,518,197) ($9,999,293)
?7?7Fn 711 QQn 117 75Z R1 1Q7
(10,072,712) (13,235,943) (10,100,413) (9,918,101)
8,785,280
9,424,697
9,808,324
8,764,183
256,877
129,607
11,321
4,389
864,578
576,071
429,325
225,677
17,424
12,512
12,644
-
(895,687)
(994,202)
(136,068)
(7,078)
9,028,472
9,148,685
10,125,546
8,987,171
365,822
274,498
228,747
104,770
895,687
994,202
136,068
7,078
1,261,509
1,268,700
364,815
111,848
$10,289,981
$10,417,385
$10,490,361
$9,099,019
Change in net position:
Governmental activities ($1,317,000) ($4,319,248) ($392,651) ($1,012,122)
Business -type activities 1,534,269 1,500,690 782,599 193,040
Total primary government change in net position $217,269 ($2,818,558) $389,948 ($819,082)
GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
144
Table 2
Page 2 of 2
2011 2012 2013 2014 2015 2016
($7,661,639)
(18,952)
($7,125,320) ($9,469,531) ($10,504,667) ($13,050,512) ($8,241,709)
420,850 213,827 199,684 2,449,785 1,079,511
(7,680,591) (6,704,470) (9,255,704) (10,304,983) (10,600,727) (7,162,198)
8,768,805
8,610,709
8,563,595
8,806,886
9,243,236
9,343,500
4,072
4,941
4,442
4,443
5,363
91,385
251,250
202,828
(54,204)
265,695
112,961
210,142
37,579
4,175
-
1,727
17,836
66,255
-
-
-
-
-
1,333,166
66,122
41,043
(353,304)
69,294
66,834
(914,414)
9,127,828
8,863,696
8,160,529
9,148,045
9,446,230
10,130,034
126,215
102,073
113,402
96,213
81,084
107,119
-
-
(158,175)
58,255
(29,917)
-
(66,122)
(41,043)
353,304
(69,294)
(66,834)
914,414
60,093
61,030
308,531
85,174
(15,667)
1,021,533
$9,187,921
$8,924,726
$8,469,060
$9,233,219
$9,430,563
$11,151,567
$1,466,189
$1,738,376
($1,309,002)
($1,356,622)
($3,604,282)
$1,888,325
41,141
481,880
522,358
284,858
2,434,118
2,101,044
$1,507,330
$2,220,256
($786,644)
($1,071,764)
($1,170,164)
$3,989,369
145
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
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
2007
2008
2009
2010
$181,759
$190,825
$196,568
$181,471
5,356,272
5,393,316
5,191,396
5,445,334
$5,538,031
$5,584,141
$5,387,964
$5,626,805
$226,921
$226,973
$227,176
$227,342
885,825
812,400
736,772
658,875
3,925,402
3,405,272
3,457,349
2,986,102
100,000
100,000
100,000
100,000
100,955
106,573
93,956
110,471
8,395,827
5,927,411
11,611,835
12,537,841
-
-
(558,443)
(1,093,765)
17,023
22,224
15,824
12,676
$13,651,953
$10,600,853
$15,539,542
$15,684,469
$19,189,984
$16,184,994
$21,072,433
$21,166,347
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Information
for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
146
Table 3
2011 2012 2013 2014 2015 2016
165,079 180,786 176,797 253,471 220,677 225,114
5,440,101 5,053,031 5,209,286 5,053,064 5,725,736 6,031,077
$5,605,180 $5,233,817 $5,386,083 $5,306,535 $5,946,413 $6,256,191
906,010
823,113
101,710
101,302
101,177
101,220
2,658,010
3,041,524
3,651,550
2,830,526
2,637,638
6,502,424
110,568
115,196
121,075
152,078
163,239
170,950
10,808,268
15,573,179
15,710,702
18,027,773
15,022,852
15,778,480
(3,154,496)
(3,262,728)
(3,393,547)
(375,851)
(3,815,304)
(978,496)
$11,328,360
$16,290,284
$16,191,490
$20,735,828
$14,109,602
$21,574,578
$16,933,540
$21,524,101
$21,577,573
$26,042,363
$20,056,015
$27,830,769
147
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
Property taxes
Liscenses 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 services
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):
Proceeds from sale of capital assets
Proceeds from issuance of debt
Premium on bonds issued
Discount on bonds issued
Payment to refunded bond escrow agent
Loan payable reapportionment
Transfers in
Transfers out
Total other financing sources (uses)
2007
2008
2009
2010
$8,529,846
$9,095,085
$9,561,570
$8,647,488
694,435
802,135
307,714
330,138
6,143,689
1,004,476
1,259,016
1,176,863
1,961,253
950,188
968,995
851,270
753,698
872,534
778,163
780,044
139,932
133,531
111,807
127,203
864,578
576,071
429,325
225,677
889,901
516,415
513,306
502,992
19,977,332
13,950,435
13,929,896
12,641,675
1,953,960
2,058,267
1,918,246
1,730,390
3,513,460
3,806,389
4,122,352
3,798,106
9,549,932
6,575,568
3,071,646
2,848,232
183,346
183,024
209,466
185,232
1,107,328
1,113,232
1,005,095
1,098,682
2,008,073
585,875
501,806
282,938
1,973,000
1,749,000
1,908,000
1,866,000
937,895
1,074,052
994,809
1,042,883
13,731,420
21,226,994
17,145,407
12,852,463
(1,249,662)
(3,194,972)
198,476
(210,788)
54,037
13,750
35,700
20,600
4,375,000
209,000
4,596,000
1,170,000
-
-
11,141
10,980
(25,798)
-
-
-
-
-
-
(965,000)
2,900,249
4,763,391
1,413,985
1,195,747
(3,019,224)
(4,796,159)
(1,367,863)
(1,127,625)
4,284,264
189,982
4,688,963
304,702
Special item - withdrawal from fire district - - - -
Net change in fund balance $3,034,602 ($3,004,990) $4,887,439 $93,914
Debt service as a percentage of noncapital expenditures 15.1% 17.0% 21.9% 23.1%
Debt service as a percentage of total expenditures 13.7% 16.5% 21.1% 22.6%
148
Table 4
2011
2012
2013
2014
2015
2016
3,791,329
3,861,265
3,744,957
3,845,732
$8,655,971
$8,560,340
$8,475,214
$8,612,011
$8,950,507
$9,369,090
322,030
319,172
431,654
407,681
551,202
895,581
1,331,914
5,267,570
500,963
823,025
679,627
706,944
904,522
816,998
2,130,519
1,278,202
703,141
4,400,635
812,604
744,633
717,300
731,640
696,501
1,293,556
154,020
155,956
119,079
149,653
127,803
251,653
251,244
202,825
222,810
173,422
163,497
199,709
-
-
(276,276)
92,372
(50,582)
10,433
460,710
414,088
384,749
767,477
766,072
417,448
12,893,015
16,481,582
12,706,012
13,035,483
12,587,768
17,545,049
1,773,515
1,619,215
1,569,722
1,692,175
1,643,966
1,845,667
3,791,329
3,861,265
3,744,957
3,845,732
11,895,482
4,333,080
3,251,923
4,396,406
3,956,766
4,156,497
4,779,696
3,203,837
134,122
176,318
134,127
149,292
191,038
201,635
624,286
435,154
418,533
402,750
422,935
425,402
4,209,593
616,931
291,135
674,488
1,566,057
3,044,615
2,030,000
2,145,000
2,214,000
3,664,000
2,802,511
2,769,525
983,129
831,875
774,172
696,780
542,166
816,362
-
47,054
17,137
-
62,831
98,906
16,797,897
14,129,218
13,120,549
15,281,714
23,906,682
16,739,029
(3,904,882)
2,352,364
(414,537)
(2,246,231)
(11,318,914)
806,020
50,953
4,175
16,727
1,727
54,522
72,182
120,000
2,165,000
808,000
3,140,000
8,606,250
5,464,000
-
-
6,558
-
114,960
41,497
-
-
(435,000)
-
-
-
(565,000)
-
-
-
-
-
2,971,715
1,979,457
1,722,541
2,608,534
3,392,971
3,521,180
(2,905,593)
(1,910,435)
(1,650,817)
(2,539,240)
(3,336,137)
(3,241,959)
(327,925)
2,238,197
468,009
3,211,021
8,832,566
5,856,900
1,111,834
($4,232,807) $4,590,561 $53,472 $964,790 ($2,486,348) $7,774,754
23.9% 22.0% 23.3% 29.9% 15.0% 26.2%
17.9% 21.1% 22.8% 28.5% 14.0% 21.4%
149
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Fiscal Years
Table 5
Commercial/
Total Taxable
Payable
Residential
Industrial
Personal
Year
Property
Property
Property
2007
$17,605,080
$3,047,965
$288,290
2008
18,382,645
3,431,107
279,102
2009
18,919,087
4,002,349
275,496
2010
17,978,917
3,800,004
291,904
2011
16,214,698
3,223,901
303,964
2012
14,743,557
2,945,026
310,870
2013
13,693,905
2,571,769
336,047
2014
13,646,798
2,450,473
341,974
2015
15,455,516
2,536,783
347,316
2016
15,472,329
2,609,482
359,006
Table 5
The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula
to the estimated market value of the property.
Source: Anoka County, Minnesota Assessors' Office
150
Estimated
Total Taxable
Taxable
Assessed
Total Direct
Market
Value
Tax Rate
Value
$20,941,335
38.99
$1,927,807,500
22,092,854
38.97
2,021,961,000
23,196,932
38.73
2,102,473,000
22,070,825
37.91
2,001,889,600
19,742,563
42.04
1,804,121,500
17,999,453
42.89
1,640,455,854
16,601,721
46.77
1,519,857,242
16,439,245
46.68
1,509,921,169
18,339,615
43.77
1,694,366,064
18,440,817
46.02
1,699,288,883
The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula
to the estimated market value of the property.
Source: Anoka County, Minnesota Assessors' Office
150
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
Fiscal
Year
City Direct Rate Overlapping Rates
General Centennial Other
Basic Obligation Total School District Anoka Taxing Total
Rate Debt Service Direct ISD # 12 County Districts Overlapping
Table 6
Total Direct and
Overlapping
Tax Rate
2007
34.356
4.638
38.994
38.090
30.696
5.578
74.364
113.358
2008
34.560
4.407
38.967
35.258
31.078
6.956
73.292
112.259
2009
34.716
4.017
38.733
34.593
32.078
5.611
72.282
111.015
2010
34.086
3.819
37.905
37.285
35.189
5.879
78.353
116.258
2011
37.425
4.616
42.041
43.695
39.952
6.278
89.925
131.966
2012
37.501
5.393
42.894
40.010
41.146
6.691
87.847
130.741
2013
40.964
5.810
46.774
43.681
44.411
6.940
95.032
141.806
2014
39.784
6.899
46.683
46.186
43.239
6.712
96.137
142.820
2015
37.819
5.951
43.770
36.562
38.123
6.021
80.706
124.476
2016
35.025
10.994
46.019
36.426
38.894
6.405
81.725
127.744
The majority of the City is serviced by School District 12. Rates for debt service are based on each year's requirements.
Source: Anoka County Property Records and Tax Division
151
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152
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2016
Source: Anoka County Property Records and Tax Division
153
Table 7
2007
Percentage
of Total City
Taxable
Net Tax
Rank Capacity
1 1.23%
3 0.69%
5 0.58%
7 0.42%
6 0.55%
4 0.61%
8 0.42%
2 1.19%
9 0.41%
10 0.40%
6.50%
Percentage
of Total City
Taxable
Taxable
Taxable
Net Tax
Net Tax
Net Tax
Taxpayer
Capacity
Rank
Capacity
Capacity
Target Corporation
$202,952
1
1.10%
$265,254
Xcel Energy
190,733
2
1.03%
148,787
WI MN AB BIYNAH LLC
183,332
3
0.99%
-
Moline Concrete Products
107,982
4
0.59%
124,375
Gargaro Properties LLC
104,374
5
0.57%
91,274
Taylor Corporation
99,648
6
0.54%
117,902
Kohl's Department Store
99,092
7
0.54%
131,706
Marmon/Keystone Corp
74,216
8
0.40%
-
CenterPoint Energy
72,162
9
0.39%
-
Lino Lakes Business Center LLC
63,729
10
0.35%
89,862
Lino Lakes Realty LLC
-
-
256,862
F&G Incorporated
-
-
88,256
Legacy Holdings LLC
-
-
87,018
Total
$1,198,220
6.50%
$1,401,296
Source: Anoka County Property Records and Tax Division
153
Table 7
2007
Percentage
of Total City
Taxable
Net Tax
Rank Capacity
1 1.23%
3 0.69%
5 0.58%
7 0.42%
6 0.55%
4 0.61%
8 0.42%
2 1.19%
9 0.41%
10 0.40%
6.50%
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Fiscal
Year
Taxes Levied for the Fiscal Year
Operating Debt Total Tax
Tax Levy Tax Levy Levy
Collected within the
Fiscal Year of Levy
Percentage
of
Amount Levy
2007
$7,558,995
$897,333
$8,456,328
$8,324,180
98.4%
2008
7,973,236
893,720
8,866,956
8,581,974
96.8%
2009
8,295,172
949,166
9,244,338
8,982,756
97.2%
2010
7,816,232
879,182
8,695,414
8,400,439
96.6%
2011
7,719,240
940,760
8,660,000
8,486,845
98.0%
2012
7,192,818
1,034,441
8,227,259
8,095,502
98.4%
2013
7,190,538
1,025,090
8,215,628
8,094,911
98.5%
2014
7,098,922
1,197,122
8,296,044
8,229,986
99.2%
2015
7,490,578
1,195,494
8,686,072
8,630,830
99.4%
2016
7,018,572
2,039,856
9,058,428
9,022,964
99.6%
Current year levies and collections include State levy related credits, but do not include tax increment levies and collections.
154
Total Collections to Date
Collections in
Subsequent
Years Amount
Percentage
of
Levy
Outstanding
Delinquent
Taxes
Table 8
Percentage
of Levy
Outstanding
$105,490
$8,429,670
99.7%
$26,658
0.3%
129,219
8,711,193
98.2%
155,763
1.8%
194,335
9,177,091
99.3%
67,247
0.7%
182,204
8,582,643
98.7%
112,771
1.3%
124,970
8,611,815
99.4%
48,185
0.6%
73,804
8,169,306
99.3%
57,953
0.7%
64,688
8,159,599
99.3%
56,029
0.7%
39,265
8,269,252
99.7%
26,792
0.3%
30,074
8,660,904
99.7%
25,168
0.3%
-
9,022,964
99.6%
35,464
0.4%
155
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
General
Fiscal Obligation
Year Bonds
2007
$11,569,000
2008
11,184,000
2009
10,712,000
2010
10,141,000
2011
9,421,000
2012
10,331,000
2013
9,610,000
2014
9,036,000
2015
16,377,291
2016
18,337,081
Governmental Activities
Special
Assessments
Payable
$12,520,000
11,365,000
10,265,000
9,175,000
7,985,000
7,095,000
5,975,000
7,640,000
6,620,000
7,795,000
Business -Type
Activities
Other
Long -Term
Debt
General
Obligation
Revenue
Bonds
$ -
$1,855,000
-
1,530,000
4,260,000
1,170,000
4,260,000
795,000
3,695,000
405,000
3,695,000
-
3,695,000
-
2,080,000
-
1,720,000
-
1,609,000
-
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
(1) Personal income information is not yet available for 2016 from the Bureau of Economic Analysis Report
156
Total
Primary
Government
Percentage
of Assessed
Market Value
Percentage
of Personal
Income
Per
Capita
Table 9
$25,944,000
1.35%
3.41%
$1,307
24,079,000
1.19%
3.08%
1,205
26,407,000
1.24%
3.44%
1,301
24,371,000
1.22%
3.13%
1,206
21,506,000
1.19%
2.59%
1,049
21,121,000
1.29%
2.46%
1,024
19,280,000
1.27%
2.t9%
925
18,756,000
1.24%
2.04%
888
24,717,291
1.45%
2.63%
1,205
27,741,081
1.62%
(1)
1,337
157
CITY OF LINO LAKES, MINNESOTA
RATIOS OF NET GENERAL BONDED DEBT
Last Ten Fiscal Years
Governmental Activities
General
Fiscal Obligation
Year Bonds
Special
Assessments
Payable
Total
Primary
Government
2007
$11,569,000
$12,520,000
$24,089,000
2008
11,184,000
11,365,000
22,549,000
2009
10,712,000
10,265,000
20,977,000
2010
10,141,000
9,175,000
19,316,000
2011
9,421,000
7,985,000
17,406,000
2012
10,331,000
7,095,000
17,426,000
2013
9,610,000
5,975,000
15,585,000
2014
9,036,000
7,640,000
16,676,000
2015
16,377,291
6,620,000
22,997,291
2016
18,337,081
7,795,000
26,132,081
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for population data.
158
Per
Capita (Total)
Less: Amounts
Available in Debt
Service Funds
Net
Bonded Debt
Percentage
of Assessed
Market Value
Table 10
Per
Capita (Net)
$1,213
$3,925,402
$20,163,598
1.05%
$1,016
1,128
3,405,272
19,143,728
0.95%
958
1,033
3,457,349
17,519,651
0.82%
863
955
2,986,102
16,329,898
0.82%
808
849
2,638,129
14,767,871
0.82%
720
845
3,035,557
14,390,443
0.88%
698
748
3,357,196
12,227,804
0.80%
587
789
2,501,738
14,174,262
0.94%
671
1,121
2,813,226
20,184,065
1.19%
984
1,259
8,420,263
17,711,818
1.04%
854
159
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2016
Table 11
City of Lino Lakes Direct Debt $27,741,081 100% 27,741,081
Total Direct and Overlapping Debt: $105,721,144
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer
is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Sources: taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
160
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable*
Debt
Overlapping debt:
Anoka County
$116,115,411
6.2%
$7,197,130
ISD 12
102,018,685
44.0%
44,840,882
ISD 624
86,195,000
3.3%
2,803,620
ISD 831
162,965,000
7.2%
11,733,873
Metropolitan Council
1,442,296,908
0.6%
8,183,009
Rice Creek Watershed District
381,459
32.3%
123,351
Anoka County Railroad Authority
49,985,000
6.2%
3,098,198
Total Overlapping
77,980,063
City of Lino Lakes Direct Debt $27,741,081 100% 27,741,081
Total Direct and Overlapping Debt: $105,721,144
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer
is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Sources: taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
160
CITY OF LINO LAKES, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2016
Market value $1,699,288,883
Applicable percentage 3%
Debt limit 50,978,666
Debt applicable to limit:
Total bonded debt 24,787,081
Less:
Special assessment bonds (7,795,000)
Tax abatement bonds (3,355,000)
Tax increment bonds (2,025,000)
Utility revenue bonds (1,490,000)
10,122,081
Legal debt margin $40,856,585
Legal Debt Margin Calculation for Fiscal Years 2007 T
Net Debt
Fiscal Debt Applicable to
Year Population Limit Limit
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
19,851
19,987
20,305
20,216
20,505
20,625
20,833
21,129
20,519
20,750
$38,556,150
60,658,830
64,036,746
60,622,086
54,123,645
49,213,676
45,595,717
45,297,635
50,830,982
50,978,666
$4,039,000
3,804,000
3,642,000
3,386,000
2,961,000
4,591,000
4,280,000
4,191,000
11,941,250
10,122,081
161
Legal
Debt
Margin
$34,517,150
56,854,830
60,394,746
57,236,086
51,162,645
44,622,676
41,315,717
41,106,635
38,889,732
40,856,585
2016
Amount of Debt
Applicable to
Debt Limit
10.48%
6.27%
5.69%
5.59%
5.47%
9.33%
9.39%
9.25%
23.49%
19.86%
Table 12
Net Debt
Applicable
to Limit
Per Capita
$203
190
179
167
144
223
205
198
582
488
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Table 13
(2)
(2)
Per
Personal
Capita
(3)
Income
Fiscal
(1)
(thousands
Year
Population
of dollars)
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
20,519
934,764
2016
20,750
Not available
Table 13
(2)
Per
Capita
(3)
(4)
Personal
School
Unemployment
Income
Enrollment
Rate
$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%
45,556
6,371
3.3%
Not available
6,473
3.9%
Sources:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census and 2016 which is a city estimate.
(2) Information from Bureau of Economic Analysis Report. Anoka County statistics used as local information is unavailable.
(3) Information from ISD # 12 website.
(4) Information from MN Department of Employment and Economic Development. Anoka County statistics used as local
information is unavailable.
162
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Employer
Employees
State of Minnesota Corrections
447
ISD 12 - Centennial Schools
391
Target Corporation
200
Taylor Corporation
200
Anoka County Juvenile Center
130
Molin Concrete Products
130
Rehbein Transit, Inc.
130
Kohls
123
YMCA
120
Distribution Alternatives
100
Synovis Interventional Systems
Summit Fire Protection
Nol-Tech Systems, Inc
Customer Manufacturing
Total 1,971
Table 14
2016
2007
Percentage
Percentage
of Total City
of Total City
Rank
Employment(')
Employees
Rank
Employment(l)
1
22.7%
600
1
33.6%
2
19.8%
-
-
-
3
10.1%
240
3
13.4%
4
10.1%
260
2
-
5
6.6%
160
5
9.0%
6
6.6%
135
6
7.6%
7
6.6%
-
-
-
8
6.2%
-
-
-
9
6.1%
-
-
-
10
5.1%
-
-
-
-
-
160
4
9.0%
-
-
100
7
5.6%
-
-
70
8
3.9%
-
-
60
9
3.4%
1,785
(')The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
Information about the 10th largest employer of 2007 is not available.
Source: City of Lino Lakes Official Statements and employer surveys
163
CITY OF LINO LAKES, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
Full -time -Equivalent Employees as of December 31,
2007 2008 2009 2010
General Government:
Administration
5.00
5.00
5.00
4.00
Seniors
0.63
0.63
0.63
0.63
Finance
3.50
3.50
3.50
3.00
Economic Development
1.00
1.00
1.00
1.00
Planning
2.00
2.00
2.00
2.00
Community Development
2.75
2.75
2.75
2.25
Engineering
-
-
-
-
Building
1.00
1.00
1.00
1.00
Other
1.40
1.40
1.40
1.40
Total General Government
17.28
17.28
17.28
15.28
Public Safety:
Sworn Officers
26.00
27.00
27.00
27.00
Civilians
4.75
4.75
4.75
4.25
Fire
-
-
-
-
Building Inspection
4.25
4.25
4.25
2.75
Total Public Safety
35.00
36.00
36.00
34.00
Public Works:
Streets
7.35
7.35
7.35
6.85
Other
1.15
1.15
1.15
1.15
Total Public Works
8.50
8.50
8.50
8.00
Parks, Recreation and Forestry
9.80
9.80
9.80
9.30
Water
2.15
2.15
2.15
2.15
Sewer
2.15
2.15
2.15
2.15
Total
74.88
75.88
75.88
70.88
Source: City Finance Office
164
Table 15
165
Full -time -Equivalent Employees as of December 31,
2011
2012
2013
2014
2015
2016
3.50
3.50
3.50
3.50
3.50
4.00
3.00
3.00
3.00
3.00
3.00
3.50
1.00
1.00
-
-
-
-
1.00
1.00
1.00
1.00
1.00
1.00
2.00
2.00
2.00
2.00
2.00
2.00
0.70
0.70
0.70
0.70
0.70
0.65
11.20
11.20
10.20
10.20
10.20
11.15
25.00
25.00
25.00
25.00
26.00
27.00
4.00
3.00
3.00
4.00
4.00
4.50
-
-
-
1.00
1.00
1.50
2.50
2.50
2.50
2.00
2.00
2.50
31.50
30.50
30.50
32.00
33.00
35.50
7.00
7.00
7.00
7.00
7.00
6.50
1.00
1.00
1.00
1.00
1.00
1.50
8.00
8.00
8.00
8.00
8.00
8.00
9.00
9.00
8.70
8.70
8.70
7.75
2.15
2.15
2.30
2.30
2.30
2.30
2.15
2.15
2.30
2.30
2.30
2.30
64.00
63.00
62.00
63.50
64.50
67.00
165
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
(1) 1,565, 4,337 and 581 repair permits issued in 2007 - 2009, respectively, due to storm damage
Source: Various City Departments
166
2007
2008
2009
2010
General Government:
Elections
1
2
1
2
Registered voters
10,908
12,723
11,805
12,284
Number of votes cast
2,337
11,051
4,354
8,545
Voter participation (registered)
21.4%
86.9%
36.9%
69.6%
Public Safety:
Police:
Calls for Service
7,053
6,871
6,353
6,398
Traffic Citations & Warnings
3,805
3,252
3,187
2,743
Part I Crime Rate
1,279
1,461
1,075
982
Part II Crime Rate
3,432
3,767
3,151
2,911
Inspections:
Building Permits (1)
2,297
5,041
1,535
509
Value of Building Permits
$30,539,559
$15,852,780
$9,586,160
$11,295,493
Public Works:
General Maintenance (hours)
6,758
6,129
5,870
4,945
Street Mantenance (hours)
2,916
3,851
3,267
3,099
Fleet Maintenance (hours)
4,144
5,043
4,782
4,850
Snow Plowing/Sanding (hours)
1,425
1,353
950
1,638
Culture and Recreation:
Parks
Park Maintenance (hours)
10,939
11,136
12,406
9,257
Utilities:
Water Maintenance (hours)
4,256
5,716
5,041
3,560
Sanitary Sewer Maintenance (hours)
4,148
3,760
3,486
3,531
(1) 1,565, 4,337 and 581 repair permits issued in 2007 - 2009, respectively, due to storm damage
Source: Various City Departments
166
Table 16
2011
2012
2013
2014
2015
2016
1
2
1
2
1
1
11,705
13,478
12,020
12,610
12,143
13,636
4,314
11,546
1,575
7,854
4,085
11,562
36.9%
85.7%
13.1%
62.3%
33.6%
84.8%
6,384
6,344
6,210
6,281
6,210
6,210
2,604
2,694
2,597
2,296
2,199
2,199
1,117
983
918
631
1,226
1,091
2,911
2,396
2,144
1,836
2,395
3,635
452
459
490
431
654
761
$11,192,264
$10,751,626
$17,683,665
$13,535,514
$26,570,593
$53,390,619
7,416
6,939
3,994
5,200
7,839
5,534
4,352
5,926
5,740
3,840
3,347
4,053
4,214
3,945
4,548
4,746
4,322
4,437
1,534
594
1,639
2,141
754
960
9,813
9,739
8,480
8,537
8,332
9,698
3,568
3,585
3,119
3,189
3,240
3,539
3,557
3,517
3,109
3,178
3,240
3,539
167
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17
Last Ten Fiscal Years
Source: Various City Departments
168
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Public Safety:
Police:
Stations
1
1
1
1
1
1
1
1
1
1
Patrol Units
12
12
12
12
12
12
12
12
12
12
Fire:
Stations
1
1
1
1
1
1
1
1
2
2
Fire Trucks
5
5
5
5
5
5
5
5
7
7
Public Works:
Lights
673
673
673
673
673
673
673
673
673
815
Vehicles
29
29
29
29
29
29
29
29
29
39
City Streets (miles)
96.1
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
114.9
Culture & Recreation:
Parks:
Parks
18
18
18
18
18
18
18
18
18
17
Park Acres
141
141
141
141
141
141
141
141
141
139.6
Trails (miles)
26
26
26
26
26
26
26
26
26
29.75
Park Shelters
7
7
7
7
6
6
6
6
6
6
Basketball Courts
6
6
6
6
6
6
6
6
6
6
Fishing Pier
1
1
1
1
1
1
1
1
1
1
Skating Rinks
4
4
4
4
4
4
4
4
4
4
Soccer Fields
8
8
8
8
8
8
8
8
8
6
Baseball/Softball Fields
20
20
20
20
20
20
20
20
20
8
Tennis Courts
2
2
2
2
2
2
2
2
2
2
Playgrounds
16
16
16
16
16
16
16
16
16
15
Water:
Distribution System (miles)
64.7
74.7
74.7
74.7
74.7
74.7
74.7
74.7
74.7
85.6
Water Connections
4,112
4,247
4,340
4,382
4,424
4,424
4,484
4,520
4,520
4,649
Gallons Pumped (millions)
595
590
589
498
492
609
536
536
449
452
Number of Fire Hydrants
538
538
538
538
538
538
538
538
1024
1024
Water Tower Capacity (millions gallons)
2
2
2
2
2
2
2
2
2
2
Sanitary Sewer:
Collection System (miles)
64.5
69.8
69.8
69.8
69.8
69.8
69.8
69.8
77.9
77.9
Sewer Connections
4,428
4,447
4,486
4,530
4,567
4,567
4,624
4,685
4,685
4,817
Storm Sewer:
Pipe (miles)
34.3
41.4
41.4
41.4
41.4
41.4
41.4
41.4
41.4
53.7
Source: Various City Departments
168
OTHER INFORMATION (UNAUDITED)
169
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF LONG-TERM DEBT
December 31, 2016
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2005A
4.35% -
5.15%
Final
2/1/17
Interest
Issue
Maturity
7/9/10
Rates
Date
Date
Long-term debt:
7/15/13
2/1/24
G.O. Improvement Bonds, Series 2014A
General Obligation Bonds:
2.30%
11/20/14
2/1/26
2013A Certificates of Indebtedness
1.00%
2/1/13
12/31/16
2014A Certificates of Indebtedness
1.00%
2/1/14
12/31/17
2015A Certificates of Indebtedness
1.00%
2/1/15
12/31/18
2015B Certificates of Indebtedness
1.50%
8/25/15
12/31/20
2016A Certificates of Indebtedness
1.00%
2/1/16
12/31/19
G.O. Tax Abatement Bonds, Series 2006C
4.00% - 4.30%
8/15/06
2/1/17
G.O. Utility Revenue Bonds, Series 2006D
4.00% - 4.15%
8/15/06
2/1/17
G.O. CIP Refunding Bonds, Series 2006E
4.00%
11/1/06
2/1/18
G.O. TIF Bonds, Series 2007A
4.00% - 4.125%
7/15/17
2/1/24
G.O. Refunding Bonds, Series 2012A
1.00% - 2.00%
11/15/12
2/1/24
G.O. Bonds 2015A
2.00% - 3.00%
8/1/15
2/1/31
EDA Lease Revenue Bonds 2015B
2.00% - 3.00%
10/1/15
4/1/36
G.O. Utility Revenue Bonds, Series 2016A
2.00%
11/23/16
2/1/27
G.O. Tax Abatement Refunding Bonds 2016C
1.00% - 1.50%
11/23/16
2/1/23
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2005A
4.35% -
5.15%
11/1/05
2/1/17
G.O. Imp & Utility Revenue Bonds, Series 2010A
2.00% -
3.00%
7/9/10
2/1/20
G.O. Improvement Bonds, Series, 2013A
1.25% -
4.00%
7/15/13
2/1/24
G.O. Improvement Bonds, Series 2014A
0.40% -
2.30%
11/20/14
2/1/26
G.O. Improvement Refunding Bonds, Series 2016B
0.875%
- 1.50%
11/23/16
2/1/21
Total Special Assessment Bonds
G.O. Improvement Note, Series 2009A
3.70% -
4.00%
8/1/09
8/1/20
G.O. Capital Note, Series 2016A
2.00%
4/14/16
2/1/26
Total long-term debt
170
Exhibit 1
171
Payable
2016
Payable
Principal
Original
Prior
January 11
December 31,
Due in
Issue
Payments
2016
Issued
Payments
2016
2017
$193,000
$128,000
$65,000
$ -
$65,000
$ -
$ -
495,000
160,000
335,000
-
167,000
168,000
168,000
198,250
-
198,250
-
65,000
133,250
67,000
963,000
-
963,000
-
177,000
786,000
193,000
469,000
-
-
469,000
-
469,000
155,000
2,460,000
535,000
1,925,000
-
170,000
1,755,000
1,755,000
570,000
435,000
135,000
-
65,000
70,000
70,000
2,990,000
1,780,000
1,210,000
-
380,000
830,000
405,000
4,215,000
1,810,000
2,405,000
-
380,000
2,025,000
400,000
2,015,000
290,000
1,725,000
-
230,000
1,495,000
225,000
3,095,000
-
3,095,000
-
-
3,095,000
190,000
4,350,000
-
4,350,000
-
-
4,350,000
165,000
1,420,000
-
-
1,420,000
-
1,420,000
-
1,600,000
-
-
19600,000
-
1,600,000
-
25,033,250
5,138,000
16,406,250
39489,000
1,699,000
18,196,250
3,7939000
5,550,000
2,790,000
2,760,000
-
400,000
2,360,000
2,360,000
1,000,000
475,000
525,000
-
100,000
425,000
100,000
615,000
60,000
555,000
-
60,000
495,000
60,000
2,645,000
-
2,645,000
-
105,000
2,540,000
370,000
1,975,000
-
-
1,975,000
-
1,975,000
-
11,785,000
3,325,000
6,485,000
1,975,000
665,000
7,795,000
2,890,000
4,260,000
2,540,000
1,720,000
-
375,000
1,345,000
390,000
294,525
-
-
294,525
30,525
264,000
30,525
$41,372,775
$11,003,000
$24,611,250
$5,758,525
$2,769,525
$27,600,250
$7,103,525
171
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2016
Year of
Certificates of
Certificates of
Certificates of
Certificates of
Levy/
Indebtedness
Indebtedness
Indebtedness
Indebtedness
Collection
2014A
2015A
2015B
2016A
2016/2017
$178,164
$71,749
$215,030
$172,189
2017/2018
-
70,258
214,090
167,097
2018/2019
-
-
213,119
167,559
2019/2020
-
-
214,216
-
2020/2021
-
-
-
-
2021/2022
-
-
-
-
2022/2023
-
-
-
-
2023/2024
-
-
-
-
2024/2025
-
-
-
-
2025/2026
-
-
-
-
2026/2027
-
-
-
-
2027/2028
-
-
-
-
2028/2029
-
-
-
-
2029/2030
-
-
-
-
2030/2031
-
-
-
-
2031/2032
-
-
-
-
2032/2033
-
-
-
-
2033/2034
-
-
-
-
2034/2035
-
-
-
-
$178,164 $142,007 $856,455 $506,845
85
172
Exhibit 2
$464,100 $177,692
$273,223
$317,717
G.O.
G.O. CIP
G.O.
EDA Lease
Tax Abatement
Refunding
Refunding
G.O. Revenue
Refunding
Bonds
Bonds
Bonds Bonds
Bonds
2006E
2012A
2015A 2015B
2016C Total
$464,100 $177,692
$273,223
$317,717
$261,560
$2,131,423
- 176,390
274,378
319,397
276,176
1,497,786
- 180,012
270,178
315,722
289,097
1,435,687
- 178,080
271,228
317,297
301,571
1,282,392
- 175,896
266,923
316,877
313,567
1,073,263
- 178,794
267,868
316,299
325,054
1,088,015
- 176,109
273,958
320,814
-
770,881
- -
274,588
319,764
-
594,353
- -
269,863
318,557
-
588,420
- -
269,798
317,192
-
586,989
- -
222,364
315,669
-
538,033
- -
222,626
319,239
-
541,866
- -
222,758
317,244
-
540,002
- -
221,708
320,342
-
542,049
- -
-
317,231
-
317,231
- -
-
319,200
-
319,200
- -
-
318,780
-
318,780
- -
-
317,940
-
317,940
- -
-
316,680
-
316,680
$464,100 $1,242,972
$3,601,461
$6,041,963
$1,767,024
$14,800,989
86
173
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2016
Certificates of
Certificates of
Certificates of
Certificates of
Indebtedness
Indebtedness
Indebtedness
Indebtedness
2014A
2015A
2015B
2016A
Bonds payable $168,000
$133,250
$786,000
$469,000
Future interest payable 1,680
1,996
29,670
13,709
$169,680
$135,246
$815,670
$482,709
Payments to maturity:
2017
$169,680 $68,333 $204,790
$163,989
2018
- 66,913 203,895
159,140
2019
- - 202,970
159,580
2020
- - 204,015
-
2021
- - -
-
2022
- - -
-
2023
- - -
-
2024
- - -
-
2025
- - -
-
2026
- - -
-
2027
- - -
-
2028
- - -
-
2029
- - -
-
2030
- - -
-
2031
- - -
-
2032
- - -
-
2033
- - -
-
2034
- - -
-
2035
- - -
-
2036
- - -
-
$169,680 $135,246 $815,670
$482,709
174
Exhibit 3
Page 1 of 2
G.O. Tax
G.O. Utility
G.O. CIP
G.O.
Abatement
Revenue
Refunding
G.O. TIF Refunding G.O.
Bonds
Bonds
Bonds
Bonds Bonds Bonds
2006C
2006D
2006E
2007A 2012A 2015A
$1,755,000
$70,000
$830,000
$2,025,000
$1,495,000
$3,095,000
37,448
1,453
33,600
323,825
74,403
559,468
$1,792,448
$71,453
$863,600
$2,348,825
$1,569,403
$3,654,468
$1,792,448
$71,453
$430,100
$473,926
$241,311
$257,113
-
-
433,500
252,126
244,660
258,262
-
-
-
254,326
242,590
259,312
-
-
-
261,026
170,520
255,312
-
-
-
267,126
168,560
256,263
-
-
-
272,504
166,400
252,163
-
-
-
282,016
169,001
253,013
-
-
-
285,775
166,361
258,712
-
-
-
-
-
259,263
-
-
-
-
-
254,481
-
-
-
-
-
254,362
-
-
-
-
-
209,400
-
-
-
-
-
209,587
-
-
-
-
-
209,150
-
-
-
-
-
208,075
$863,600
$3,654,468
$1,792,448
$71,453
$2,348,825
$1,569,403
175
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2016
Payments to maturity:
G.O. Tax
EDA Lease
G.O. Utility
Abatement
G.O.
Revenue
Revenue
Refunding
Improvement
Bonds
Bonds
Bonds
Bonds
2015B
2016A
2016C
2005A
Bonds payable $4,350,000
$1,420,000
$1,600,000
$2,360,000
Future interest payable 1,637,193
164,864
82,880
60,118
$5,987,193
$1,584,864
$1,682,880
$2,420,118
Payments to maturity:
2017
$299,237
$19,564
$13,967 $2,420,118
2018
300,888
157,100
244,150 -
2019
302,437
159,450
261,678 -
2020
298,937
161,700
273,770 -
2021
299,488
158,900
285,422 -
2022
299,012
156,100
296,605 -
2023
298,388
158,250
307,288 -
2024
302,538
155,350
- -
2025
301,462
152,450
- -
2026
300,237
154,500
- -
2027
298,863
151,500
- -
2028
297,338
-
- -
2029
300,587
-
- -
2030
298,613
-
- -
2031
301,106
-
- -
2032
298,062
-
- -
2033
298,800
-
- -
2034
298,200
-
- -
2035
297,200
-
- -
2036
295,800
-
- -
$5,987,193
$1,584,864
$1,682,880 $2,420,118
176
Exhibit 3
Page 2 of 2
$425,000
$495,000
$2,540,000
G.O.
$1,345,000
G.O. Imp &
G.O.
G.O.
Improvement
G.O.
Utility Revenue
Improvement
Improvement
Refunding
Improvement G.O. Capital
Bonds
Bonds
Bonds
Bonds
Note Note
2010A
2013A
2014A
2016B
2009A 2016A Total
$425,000
$495,000
$2,540,000
$1,975,000
$1,345,000
$264,000
$27,600,250
26,175
74,940
156,725
69,357
165,505
24,321
3,539,330
$451,175
$569,940
$2,696,725
$2,044,357
$1,510,505
$288,321
$31,139,580
$111,250
$75,780
$402,223
$16,309
$450,165
$35,805
$7,717,561
113,175
74,460
399,633
501,575
454,565
36,020
3,900,062
110,025
72,900
406,158
506,780
462,415
36,217
3,436,838
116,725
71,100
401,788
505,868
143,360
36,399
2,900,520
-
69,000
406,390
513,825
-
35,739
2,460,713
-
71,500
162,055
-
-
35,904
1,712,243
-
68,900
159,280
-
-
36,053
1,732,189
-
66,300
161,151
-
-
36,184
1,432,371
-
-
162,645
-
-
-
875,820
-
-
35,402
-
-
-
744,620
-
-
-
-
-
-
704,725
-
-
-
-
-
-
506,738
-
-
-
-
-
-
510,174
-
-
-
-
-
-
507,763
-
-
-
-
-
-
509,181
-
-
-
-
-
-
298,062
-
-
-
-
-
-
298,800
-
-
-
-
-
-
298,200
-
-
-
-
-
-
297,200
-
-
-
-
-
-
295,800
$451,175
$569,940
$2,696,725
$2,044,357
$1,510,505
$288,321
$31,139,580
177
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2016
General Liability:
Exhibit 4
Coverage Amount
Bodily Injury/Property Damage
$2,000,000
Personal Injury/Police Professional Liability
2,000,000
Medical Expense Occurrence Limit
2,500
Medical Expense Aggregate
10,000
Property Damage ($1,000 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 36,318,702
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 250,000
Rented/Leased Equipment ($1,000 Deductible) 500,000
Public Official and Employee Liability ($1,000 Deductible each occurrence) 1,500,000
Automotive:
Bodily Injury and Property Damage 2,000,000
Comprehensive and Collision Actual Cash Value
Uninsured Motorists 200,000
Worker's Compensation Statutory
Employer Liability 1,500,000
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible) 250,000
84
178
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Taxable valuations:
Total
Fiscal disparities:
Distribution
Contribution
Less: Captured Tax Increment Value
Taxes Levied:
Tax Capacity
2015/2016
$18,440,817
2,755,743
(1,115,822)
(261,525)
$19,819,213
Tax Capacity
2014/2015
$18,339,615
2,639,444
(1,072,910)
(236,559)
$19,669,590
Exhibit 5
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Revenue $7,018,572 35.025 $7,490,578 37.819
Bond and Interest 2,039,856 10.994 1,195,494 5.951
Totals $9,058,428 46.019 $8,686,072 43.770
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
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