HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2017COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2017
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
Statement 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 Changes in the Total OPEB Liability and Related Ratios
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund
Schedule of Pension Contributions -
General Employees Retirement Fund
Page
Reference No.
3
9
10
11
15
19
Statement 1 33
Statement 2 34
Statement 3 36
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
105
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds
Statement 20
106
Subcombining Balance Sheet - Nonmajor Special Revenue Funds
Statement 21
108
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds
Statement 22
109
Subcombining Balance Sheet - Nonmajor Debt Service Funds
Statement 23
112
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds
Statement 24
115
Subcombining Balance Sheet - Nonmajor Capital Project Funds
Statement 25
121
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds
Statement 26
124
Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual
Statement 27
128
Statement of Changes in Assets and Liabilities - Agency Funds
Statement 28
129
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
OTHER INFORMATION (UNAUDITED)
Schedule of Long -Term Debt
Reference
No.
STATISTICAL SECTION (UNAUDITED)
Exhibit 2
166
Financial Trends:
Exhibit 3
168
Net Position by Component
Table 1
134
Changes in Net Position
Table 2
136
Fund Balances, Governmental Funds
Table 3
140
Changes in Fund Balances, Governmental Funds
Table 4
142
Revenue Capacity:
Assessed and Actual Value of Taxable Property
Table 5
144
Direct and Overlapping Property Tax Capacity Rates
Table 6
145
Principal Property Taxpayers
Table 7
147
Property Tax Levies and Collections
Table 8
148
Debt Capacity:
Ratios of Outstanding Debt by Type
Table 9
150
Ratios of Net General Bonded Debt
Table 10
152
Direct and Overlapping Governmental Activities Debt
Table 11
154
Legal Debt Margin Information
Table 12
155
Demographic and Economic Information:
Demographic and Economic Statistics
Table 13
156
Principal Employers
Table 14
157
Operating Information:
Full -Time Equivalent City Government Employees By Function/Program
Table 15
158
Operating Indicators by Function/Program
Table 16
160
Capital Asset Statistics by Function/Program
Table 17
162
OTHER INFORMATION (UNAUDITED)
Schedule of Long -Term Debt
Exhibit 1
164
Schedule of Deferred Tax Levies
Exhibit 2
166
Debt Service Payments to Maturity
Exhibit 3
168
Insurance in Force
Exhibit 4
170
Taxable Valuations, Tax Levies and Tax Rates
Exhibit 5
172
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10 k I:Zo] BILI -Ill le]WAN *01 [e] 01
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May 29, 2018
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, 2017.
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, 2017, 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, 2017,
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
Phone: 651-982-2400 • Fax: 651-982-2499
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the
County of Anoka. It covers an area of 33 square miles and has a population of approximately 21,100. The
population has more than doubled from the 1990 census figure of 8,807 and has grown by 25.8% since
2000. Within the City's borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to
St. Paul and Minneapolis is provided by I -35W and I -35E.
The City Charter, as amended, establishes a mayor -council form of government and grants the city
council full policy-making and legislative authority to the mayor and four council members. The City
council is responsible, among other things, for passing ordinances, adopting the budget, appointing
committees, and hiring a City administrator. The City administrator has the responsibility of carrying out
the policies and ordinances of the City council, for overseeing the day-to-day operation of the city. The
City council is elected at -large on a non-partisan basis, with council members serving four-year terms and
the mayor serving a two-year term. Elections are held every two years with two council seats and the
mayor being up for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public
safety (police, fire and building inspection), public services (streets, fleet, parks and recreation),
conservation of natural resources (environmental and solid waste abatement), community development,
public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two
enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes' financial planning and control. All
divisions are required to submit appropriations requests to the City administrator for review and
consolidation into a proposed budget. The City administrator is responsible for submitting the proposed
annual budget to the City Council in August of each year. The city council is required to hold a public
hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than
December 28. The budget amounts cannot increase beyond the estimated receipts except to the extent that
actual receipts exceed the estimate. Division directors may make transfers of appropriations within a
department, but transfers of appropriations between departments require council approval. Budget -to -
actual comparisons for the general fund and the recreation program fund, the only funds for which an
annual budget has been adopted, are provided in Statements 11 and 27, respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of
three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the
Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and
distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007
the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive
interchange, was developing at a rapid pace. Super Target and Kohl's anchor the shopping center
quadrant, while Apollo Business Park brought approximately 1,000 new employees to the area. Land was
purchased by Anoka County on a third quadrant for future development of a regional library. Due to
economic conditions, the County has pushed back construction of the library to a future date.
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 I -35W Interchange improvement
was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City
has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota
State Aid funds to finance its portion of the project cost.
In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed
to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the
interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through
Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is
being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation
Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011.
The city prepaid the Note with Anoka County in 2017 using MSA funds.
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 1-3 5E and the extension of 21St Avenue west of 1-35E, 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 21St
Avenue.
Development activities continued to increase in 2017. Residential permit activity surpassed 100 for the
second consecutive year with 133 issued. Commercial development continues to show signs of recovery
as new construction activities and development planning emerges. National Builder, DR Horton
continued development of the 112 unit Woods Edge townhome development. Lennar Homes received
planned unit development approval on the 871 lot Watermark development previously owned by aae
Mattamy Homes. Lennar is anticipating development of the site in 2018. The 402,000 square -foot
Distribution Alternatives building, developed by United Properties, was completed and occupied in 2017.
Long-term financial planning. The City's currently adopted five-year financial plan identifies street and
utility improvements totaling $26,838,947 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
2022.
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 $6,573,608 which is 64%
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 2017 was 0.62%. 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 $62,488, or 0.16%, for a total investment yield of 0.78%. 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, 2016. This marks the twenty-second 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 2017 report
to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We
believe our current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of
the Finance Department, auditors and other city staff. I want to express my appreciation to the Mayor and
City Council for their support for maintaining the highest standard of professionalism in the management
of the financial operation of the City.
Respectfully submitted,
Sarah R. Cotton
Director of Finance
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Government Finance Officers Association
Certificate of
Achievement
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Presented to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
December 31, 2016
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CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2017
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
11
Term Expires
December 31, 2017
December 31, 2017
December 31, 2017
December 31, 2019
December 31, 2019
Appointed
Appointed
Appointed
Appointed
Appointed
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12
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14
FSE TH
A N d CMAPN 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, 2017, 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
15
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, 2017, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter
As described in Note 20 to the financial statements, the City of Lino Lakes, Minnesota adopted
new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions for the year ended December 31, 2017. Our
opinion is not modified with respect to this matter.
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, and the schedules
of OPEB and 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.
16
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
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 29, 2018, on our consideration of the City of Lino Lakes, Minnesota's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City of Lino Lakes, Minnesota's internal
control over financial reporting and compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 29, 2018
17
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18
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, 2017. 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
$93,293,613 (net position). Of this amount, $26,863,256 (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 $5,442,106.
As of the close of the current fiscal year, the City's governmental funds reported combined
ending fund balances of $24,056,122, a decrease of $3,774,647. Of this amount, $5,289,641
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 $6,816,925. Unassigned
fund balance for the general fund was $6,573,608, or 65% of total general fund expenditures
and other financing uses.
Total outstanding debt decreased by $7,764,838 during 2017. 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. In addition, the City prepaid the 2009A
Series Note with Anoka County.
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.
19
Management's Discussion and Analysis
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
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.
20
Management's Discussion and Analysis
The City maintains five 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
• G.O. Improvement Bonds of 2016B — 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
21
Management's Discussion and Analysis
information. Combining and individual fund statements and schedules are presented as
Statements 19 through 27.
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 $93,293,613 at the
close of the most recent fiscal year.
The largest portion of the City's net position ($54,700,209, or 59%) 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 Business -Type Activities Totals
2017 2016 2017 2016 2017 2016
$32,942,034 $37,480,144 $15,272,668 $14,501,255 $48,214,702 $51,981,399
42,611,027 41,154,425 31,831,950 31,860,608 74,442,977 73,015,033
$75,553,061 $78,634,569 $47,104,618 $46,361,863 $122,657,679 $124,996,432
$5,625,220 $8,780,333 $97,118 $168,302 $5,722,338 $8,948,635
$27,257,669 $42,409,997 $413,334 $468,598 $27,671,003 $42,878,595
894,136 1,331,338 43,453 287,286 937,589 1,618,624
$28,151,805 $43,741,335 $456,787 $755,884 $28,608,592 $44,497,219
$6,410,858 $1,546,117 $66,954 $50,224 $6,477,812 $1,596,341
$22,868,259 $18,597,344 $31,831,950 $31,860,610 $54,700,209 $50,457,954
11,730,147 13,342,852 - - 11,730,147 13,342,852
12,017,212 10,187,254 14,846,045 13,863,447 26,863,257 24,050,701
$46,615,618 $42,127,450 $46,677,995 $45,724,057 $93,293,613 $87,851,507
$11,730,147 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
($26,863,257) 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.
22
Management's Discussion and Analysis
The City's net position increased by $5,442,106 during 2017. Key elements of this increase
are as follows:
City of Lino Lakes' Changes in Net Position
Expenses:
Governmental Activities
Business -Type
Activities
Totals
2017
2016
2017
2016
2017
2016
Revenues:
Public safety
5,166,538
6,567,523
5,166,538
Program revenues:
Public services
5,492,395
6,228,893
5,492,395
Charges for services
$3,600,902
$2,744,984
$2,849,797
$2,754,219
$6,450,699
$5,499,203
Operating grants and contributions
1,106,014
722,858
-
-
1,106,014
722,858
Capital grants and contributions
4,141,383
5,046,307
836,029
1,543,947
4,977,412
6,590,254
General revenues:
Water
-
-
1,245,249
1,367,693
1,245,249
General property taxes
9,441,819
9,049,671
-
-
9,441,819
9,049,671
Tax increment
312,152
293,829
16,755,858
3,147,070
312,152
293,829
Grants and contributions not
Increase in net position before
restricted to specific programs
181,712
91,385
-
-
181,712
91,385
Unrestricted investment earnings
207,792
210,142
106,488
107,119
314,280
317,261
Gain on disposal of capital assets
38,022
66,255
-
-
38,022
66,255
Total revenues
19,029,796
18,225,431
3,792,314
4,405,285
22,822,110
22,630,716
Expenses:
General government
2,395,633
2,456,864
2,395,633
2,456,864
Public safety
5,166,538
6,567,523
5,166,538
6,567,523
Public services
5,492,395
6,228,893
5,492,395
6,228,893
Conservation of naturual resources
200,016
216,905
200,016
216,905
Community development
459,455
454,144
459,455
454,144
Interest and fees on long-term debt
518,897
831,529
-
-
518,897
831,529
Water
-
-
1,245,249
1,367,693
1,245,249
1,367,693
Sewer
-
-
1,901,821
1,850,962
1,901,821
1,850,962
Total expenses
14,232,934
16,755,858
3,147,070
3,218,655
17,380,004
19,974,513
Increase in net position before
special item and transfers
4,796,862
1,469,573
645,244
1,186,630
5,442,106
2,656,203
Special item
-
1,333,166
-
-
-
1,333,166
Transfers
(308,694)
(914,414)
308,694
914,414
-
-
Change in net position
4,488,168
1,888,325
953,938
2,101,044
5,442,106
3,989,369
Net position - January 1, as previously reported
42,819,930
40,754,159
45,724,057
43,800,459
88,543,987
84,554,618
Prior period adjustment
(692,480)
177,446
-
(177,446)
(692,480)
-
Net position - January 1, as restated
42,127,450
40,931,605
45,724,057
43,623,013
87,851,507
84,554,618
Net position - December 31
$46,615,618
$42,819,930
$46,677,995
$45,724,057
$93,293,613
$88,543,987
Governmental Activities
Governmental activities increased the City's net position by $4,488,168 during 2017. The
cumulative effect of increased charges for services and decreases in public safety expenses
and public services spending account for the increase in 2017. This increase was partially
offset by transfers out to business -type activities of $308,694.
23
Management's Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Governmental Activities - Revenues
Charges for services
19%
Other revenue
4%
Operating grants and
contributions
6%
Capital grants and
contributions
22
General property taxes
49%
Governmental Activities - Expenses
Conservation of Natural Interest and Fees on Long- General government
Term Debt
Resources 4% 17
1%
Community Development
3%
Public Services
39%
Public safety
36%
24
Management's Discussion and Analysis
Business -Type Activities
Business -type activities increased the City's net position by $953,938 during 2017. The
increase was due to contributions of capital assets from private sources, as well as the City's
governmental activities, in the amount of $1,006,239.
Below are specific graphs which provide comparisons of the business -type activities
revenues and expenses:
Business -Type Activities - Revenues
Unrestricted investment
earnings
3%
Capital grants and
contributions
22
Charges for services
75%
Business -Type Activities - Expenses water
40%
Sewer
60
25
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 $24,056,122. Approximately 22% of this total amount ($5,289,641)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $344,976 of fund balance is not in a spendable
form, $175,401 has been committed, $14,581,669 has been assigned, and $3,664,435 is
unassigned.
The fund balance of the General Fund increased by $560,734 in 2017, while the City
anticipated the use of $518,000 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. The City also saw
a significant increase in the number of roofing and siding permits issued during the year due
to a storm causing significant damage throughout the City in June of 2017. Finally, reduced
expenditures, primarily for personal services through vacant positions, fuel costs, and
professional and contractual services helped to increase the year end fund balance.
The G.O. Improvement Bonds of 2005A fund balance decreased by $226,135. The 2005A
series bonds were refunded in 2016 and the fund made a debt service payment of $2,420,000
in February 2017.
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 $0, a decrease of $22. The City prepaid the note in 2017 using MSA funds. As
deferred special assessments are received the MSA funds will be replenished. The
outstanding balance on the note as of December 31, 2017 was $0.
The G.O. Improvement Bonds of 2016B fund decreased by $1,932,000. The 2016B series
bonds were issued to refund the 2005A series bonds and fund the Legacy at Woods Edge
improvements. Future tax increment and land sale proceeds are expected to cover debt
service and the interfund loan payable.
The Area and Unit Charge fund has a total fund balance of $7,656,155, all of which is
assigned for financing capital improvements. The fund balance during the current year
increased by $1,389,955 due to the collection of prepaid special assessments and trunk utility
development fees.
26
Management's Discussion and Analysis
The combined fund balance of other governmental funds decreased $3,567,167 during 2017.
Primary reasons for the decrease 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 Municipal
State Aid (MSA) Construction fund decreased $1,169,000 as MSA funds were used to
prepay the 2009A Note with Anoka County for the city's share of the 35E Interchange
project.
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 $22,621,564, of which $5,455,247 is
unrestricted. The increase in net position of $602,293 was primarily due to capital
contributions, partially offset by a net operating loss.
The sewer fund has total net position at year-end of $24,056,431, of which $9,390,798 is
unrestricted. The increase in net position of $351,645 was primarily due to capital
contributions, partially offset by a net operating loss.
Budtetary Highlights
General Fund
The General Fund budget was amended several times during the year to reflect increased
revenues relative to building and licensing activities, state aid, and other operating transfers,
as well as changes in expenditure areas due to personnel vacancies, changes to professional
and contracted services, variances in supplies, investment in the Civic Complex air
conditioning units, and finally the transfer for the park land loan and the comprehensive plan
update budgeted over 3 years (2016-2018). The final amended expenditure budget was
$150,759 less than the original adopted budget.
Revenues were $5,934 over budget for the year. General property tax, intergovernmental
revenue, and miscellaneous refunds and reimbursements were $66,444 under budget;
however, this variance was more than offset by greater than anticipated license and permit
revenues, fines and forfeits, and investment earnings.
Expenditures came in under budget by $311,492 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 the Civic Complex air-conditioning upgrades
were not completed in 2017, resulting in favorability in capital outlay.
27
Management's Discussion and Analysis
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, 2017, amounted to $74,442,977 (net of accumulated
depreciation), an increase of $1,427,942 from the prior year. This investment in capital
assets includes land, wetland credits, construction in progress, buildings, equipment,
vehicles, and infrastructure. The City completed the Shenandoah Area street improvements,
NorthPointe 2nd Addition infrastructure improvements, Fire Station #2, Pump House #6, the
reconditioning of Water Tower #1, Aqua Lane to Blackduck Drive water main
improvements, the build -out of two Ford F-650 light rescue fire vehicles, and the upgrade of
the air conditioning system (Phase I ) at the Civic Complex. The City has continued to work
to complete the Birch Street turn lanes and infrastructure improvements in 2017. In addition,
the City began land preparation activities for NorthPointe Park, the upgrade of the air
conditioning system (Phase II) at the Civic Complex, and the Council Chambers upgrade.
Developer lead infrastructure improvements at various stages of completion include
NorthPointe 3rd, 4th, 5th, and 6th Additions, Saddle Club 2nd and 3rdAdditions, Century Farms
6th Addition, Woods Edge 1St and 2nd Additions, Clearwater Creek, St Clair Estates, and
Chavez Estates.
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.
28
Governmental Activities
Business -Type
Activities
Totals
2017
2016
2017
2016
2017
2016
Land
$3,320,059
$3,275,859
$ -
$ -
$3,320,059
$3,275,859
Wetland credits
162,372
-
-
-
162,372
-
Construction in progress
2,482,238
8,961,062
1,507,153
5,617,436
3,989,391
14,578,498
Buildings
6,376,011
2,706,355
-
-
6,376,011
2,706,355
Office equipment and furniture
236,777
157,704
236,777
157,704
Vehicles
2,016,355
1,370,732
-
-
2,016,355
1,370,732
Machinery and shop equipment
1,133,624
1,017,332
147,568
167,440
1,281,192
1,184,772
Other equipment
267,096
206,385
-
-
267,096
206,385
Infrastructure
26,616,495
23,458,996
30,177,229
26,075,734
56,793,724
49,534,730
Total
$42,611,027
$41,154,425
$31,831,950
$31,860,610
$74,442,977
$73,015,035
Additional information on the City's capital assets can be found in Note 5 to the financial
statements.
28
Management's Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $19,976,243. Of this amount, $14,714,250 comprises tax supported debt and
$4,905,000 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 has 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 $233,475.
City of Lino Lakes' Outstanding Debt
Governmental Activities
2017 2016
Business -Type Activities
2017 2016
Totals
2017 2016
General obligation bonds
$14,947,725
$18,460,250 $ -
$ $14,947,725
$18,460,250
G.O. special assessment bonds
4,905,000
7,795,000 -
4,905,000
7,795,000
Note payable - Anoka County
-
1,345,000 -
- -
1,345,000
Bond premium
123,518
140,831 -
- 123,518
140,831
Total
$19,976,243
$27,741,081 $0
$0 $19,976,243
$27,741,081
The City of Lino Lakes' total bonded debt decreased by $7,764,838 during the current fiscal
year. The key factors for the change include the issuance of $311,000 of Certificates of
Indebtedness to finance capital equipment purchases, as well as principal retired in the
amount of $8,508,525 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.
29
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32
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION
December 31, 2017
Assets:
Cash and investments
Accrued interest receivable
Due from other governmental units
Accounts receivable - net
Prepaid items
Internal balances
Inventory
Taxes receivable
Special assessments receivable
Long-term notes receivable
Net pension asset
Capital assets - nondepreciable
Capital assets - net of accumulated depreciation
Total assets
Deferred outflows of resources related to pensions
Liabilities:
Accounts payable and other current liabilities
Accrued interest payable
Compensated absences payable:
Due within one year
Due in more than one year
Other post employment benefits
Bonds and notes payable:
Due within one year
Due in more than one year
Net pension liability:
Due in more than one year
Total liabilities
Deferred inflows of resources:
Pension related
OPEB related
Total deferred inflows of resources
Net position:
Net investment in capital assets
Restricted for:
Debt service
Economic development
Tax increment purposes
Environmental improvements - nonexpendable
Environmental improvements - expendable
Other purposes
Unrestricted
Total net position
Statement 1
Primary Government
Governmental Business -Type
Activities Activities Total
$24,934,980
$13,921,698
$38,856,678
84,517
-
84,517
133,556
1,614
135,170
51,052
376,957
428,009
244,976
27,082
272,058
(914,949)
914,949
-
-
30,368
30,368
100,047
-
100,047
7,954,861
-
7,954,861
225,000
-
225,000
127,994
-
127,994
5,964,669
1,507,153
7,471,822
36,646,358
30,324,797
66,971,155
75,553,061
47,104,618
122,657,679
5,625,220
97,118
5,722,338
736,608
43,453
780,061
157,528
-
157,528
492,042
38,130
530,172
276,866
28,426
305,292
738,061
8,480
746,541
3,130,600 - 3,130,600
16,845,643 - 16,845,643
5,774,457
338,298
6,112,755
28,151,805
456,787
28,608,592
6,359,775
66,954
6,426,729
51,083
-
51,083
6,410,858
66,954
6,477,812
22,868,259
31,831,950
54,700,209
10,564,305
-
10,564,305
225,000
-
225,000
479,695
-
479,695
100,000
-
100,000
23,316
-
23,316
337,831
-
337,831
12,017,212
14,846,045
26,863,257
$46,615,618
$46,677,995
$93,293,613
The accompanying notes are an integral part of these financial statements.
33
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2017
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
$2,395,633
$550,117
5,166,538
2,249,152
5,492,395
801,633
200,016
-
459,455
-
518,897
-
14,232,934
3,600,902
1,245,249
1,150,834
1,901,821
1,698,963
3,147,070
2,849,797
$17,380,004 $6,450,699
The accompanying notes are an integral part of these financial statements.
34
Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
$1,460
351,258
661,302
91,994
4,141,383
1,106,014 4,141,383
0
421,608
414,421
836,029
$1,106,014 $4,977,412
General revenues:
General property taxes
Tax increment
Grants and contributions not
restricted to specific programs
Unrestricted investment earnings
Gain on disposal of capital assets
Transfers
Total general revenues 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
($1,844,056)
(2,566,128)
111,923
(108,022)
(459,455)
(518,897)
(5,384,635)
0
(5,384,635)
- ($1,844,056)
- (2,566,128)
- 111,923
- (108,022)
- (459,455)
- (518,897)
0 (5,384,635)
327,193
327,193
211,563
211,563
538,756
538,756
538,756 (4,845,879)
9,441,819 - 9,441,819
312,152 - 312,152
181,712
-
181,712
207,792
106,488
314,280
38,022
-
38,022
(308,694)
308,694
-
9,872,803
415,182
10,287,985
4,488,168
953,938
5,442,106
42,819,930
45,724,057
88,543,987
(692,480)
-
(692,480)
42,127,450
45,724,057
87,851,507
$46,615,618
$46,677,995
$93,293,613
The accompanying notes are an integral part of these financial statements.
35
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET
GOVERNMENTALFUNDS
December 31, 2017
Statement 3
Liabilities:
333 G.O.
342 G.O.
Other
Total
$ $705
$510 $257,313
Improvement
Improvement
406 Area and
Governmental
Governmental
111,298
General Fund
Note of 2009A
Bonds of 20l6B
Unit Charge
Funds
Funds
Assets
-
125,455
125,455
Interfund loan payable
-
2,876,643
Cash and investments
$6,648,162
$
$944,886
$7,528,465
$9,813,467
$24,934,980
Accrued interest receivable
84,517
-
Unavailable revenue
84,517
Due from other governmental units
133,556
8,021,310
-
-
133,556
Accounts receivable - net
23,758
25,439
1,855
51,052
Prepaid items
243,317
-
1,659
244,976
Taxes receivable:
Due from county
23,611
6,789
30,400
Delinquent
56,559
-
13,088
69,647
Special assessments receivable:
Due from county
-
2,400
798
3,198
Delinquent
-
9,129
9,151
18,280
Deferred
329
2,639,483
2,994,379
1,117,458
1,181,734
7,933,383
Interfund loan receivable
-
-
100,361
2,934,516
3,034,877
Long-term notes receivable
-
225,000
225,000
Total assets
$7,213,809
$2,639,483
$3,939,265
$8,783,252
$14,188,057
$36,763,866
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable
$194,538
$ $705
$510 $257,313
$453,066
Salaries payable
110,845
-
- 453
111,298
Due to other governmental units
34,613
-
12,176
46,789
Contracts payable
-
-
125,455
125,455
Interfund loan payable
-
2,876,643
- 1,073,183
3,949,826
Total liabilities
339,996
0 2,877,348
510 1,468,580
4,686,434
Deferred inflows of resources:
Unavailable revenue
56,888
2,639,483 2,994,379
1,126,587 1,203,973
8,021,310
Fund balance:
Nonspendable
243,317
101,659
344,976
Restricted
-
5,289,641
5,289,641
Committed
-
175,401
175,401
Assigned
-
7,656,155
6,925,514
14,581,669
Unassigned
6,573,608
(1,932,462) -
(976,711)
3,664,435
Total fund balance
6,816,925
0 (1,932,462) 7,656,155
11,515,504
24,056,122
Total liabilities, deferred inflows
of resources, and fund balance
$7,213,809
$2,639,483 $3,939,265 $8,783,252
$14,188,057
$36,763,866
The accompanying notes are an integral part of these financial statements.
36
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2017
Statement 4
Fund balance - total governmental funds (Statement 3) $24,056,122
Net position reported for governmental activities in the Statement of Net Position is
different because:
Certain assets used in governmental activities are not current financial resources and,
therefore, are not reported in the funds.
Capital assets 42,611,027
Net pension asset 127,994
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 69,647
Delinquent special assessments receivable 18,280
Deferred special assessments receivable 7,933,383
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
(19,852,725)
Unamortized bond premiums
(142,182)
Unamortized bond discounts
18,664
Accrued interest payable
(157,528)
Compensated absences payable
(768,908)
Other post employment benefits
(738,061)
Net pension liability
(5,774,457)
Deferred outflows and inflows of resources related to pensions and OPEB 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 5,625,220
Deferred inflows of resources (6,410,858)
Net position of governmental activities (Statement 1) $46,615,618
37
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2017
Revenues:
General property taxes
Tax increment
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
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
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Issuance of debt
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
General Fund
$7,338,876
1,447,571
667,520
4,293
302,038
147,977
40,913
295,439
10,244,627
1,945,691
4,347,108
2,178,725
183,392
426,653
87,104
66,587
8,247
9,243,507
1,001,120
439,373
(879,759)
(440,386)
560,734
6,256,191
$6,816,925
The accompanying notes are an integral part of these financial statements.
38
327 G.O.
Improvement
Bonds of 2005A
6,486
6,486
2,360,000
60,117
2,420,117
(2,413,631)
2,187,503
(7)
2,187,496
(226,135)
226,135
$0
333 G.O.
Improvement
Note of 2009A
287,628
287,628
Statement 5
342 G.O.
1,952,669
- - - 13,409
4,360,517
Improvement
406 Area and
Other
Total
Bonds of 2016B
Unit Charge
Governmental Funds
Governmental Funds
25,307
8,075,883
21,195,536
$ -
$ -
$2,121,713
$9,460,589
-
-
312,152
312,152
-
-
-
1,447,571
-
-
413,433
1,080,953
-
1,325,125
666,928
2,283,974
-
257,468
768,275
1,327,781
-
-
465,616
613,593
-
69,217
91,176
207,792
-
-
115,201
410,640
0
1,651,810
4,954,494
17,145,045
6,266,200
15,082,671
27,830,769
- - - 6,978
1,952,669
- - - 13,409
4,360,517
- - 25,307 1,210,380
3,414,412
- - - -
183,392
- - - 6,491
433,144
228,895 315,999
- 893,831 960,418
- - 868,184 868,184
- - - 8,247
1,345,000
-
-
4,353,525
8,058,525
68,707
17,015
-
494,190
640,029
1,413,707
17,015
25,307
8,075,883
21,195,536
(1,126,079)
(17,015)
1,626,503
(3,121,389)
(4,050,491)
1,126,057
272,506
-
2,959,004
6,984,443
-
(2,187,503)
(236,548)
(3,819,110)
(7,122,927)
-
-
-
311,000
311,000
-
-
-
103,328
103,328
1,126,057
(1,914,997)
(236,548)
(445,778)
275,844
(22)
(1,932,012)
1,3 89,955
(3,567,167)
(3,774,647)
22
(450)
6,266,200
15,082,671
27,830,769
$0
($1,932,462)
$7,656,155
$11,515,504
$24,056,122
The accompanying notes are an integral part of these financial statements.
39
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, 2017
Statement 6
Net change in fund balance - total governmental funds (Statement 5)
($3,774,647)
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
(2,959,683)
Capital outlay
29152,848
Capital outlay not capitalized
1189240
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
2,380,713
Contributions of infrastructure to business -type activities
(170,210)
Gain (loss) on disposal of capital assets
(65,306)
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
(18,770)
Change in delinquent special assessments receivable
5,570
Change in deferred special assessments receivable
(544,874)
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 funds 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 (311,000)
Repayment of principal 8,058,525
Amortization of bond premiums and discounts 17,313
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 103,819
Change in compensated absences payable (34,493)
Change other post employment benefits liability and related deferred inflows of resources 483
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 differed from pension contributions. (470,360)
Change in net position of governmental activities (Statement 2) $4,488,168
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, 2017
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
Due to other governments
Other accrued liabilities
Compensated absences payable - current portion
Total current liabilities
Noncurrent liabilities:
Compensated absences payable - noncurrent portion
Other post employment benefits
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
$5,477,346
$8,444,352
$13,921,698
-
1,614
1,614
157,008
219,949
376,957
9,255
17,827
27,082
30,368
-
30,368
-
914,949
914,949
5,673,977
9,598,691
15,272,668
14,213
28,426
772,676
734,477
1,507,153
143,429
331,225
474,654
24,949,194
23,048,571
47,997,765
25,865,299
24,114,273
49,979,572
(8,698,982)
(9,448,640)
(18,147,622)
17,166,317
14,665,633
31,831,950
22,840,294
24,264,324
47,104,618
17,166,317
48,559
48,559
97,118
22,888,853
24,312,883
47,201,736
8,256
7,054
15,310
3,917
3,917
7,834
11,683
2,769
14,452
3,289
2,568
5,857
19,065
19,065
38,130
46,210
35,373
81,583
14,213
14,213
28,426
4,240
4,240
8,480
169,149
169,149
338,298
187,602
187,602
375,204
233,812
222,975
456,787
33,477
33,477
66,954
267,289
256,452
523,741
17,166,317
14,665,633
31,831,950
5,455,247
9,390,798
14,846,045
$22,621,564
$24,056,431
$46,677,995
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, 2017
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:
Investment earnings
Income (loss) before contributions and transfers
Contributions and transfers:
Capital contributions from private sources
Capital contributions from governmental activities
Transfer in
Transfer out
Total contributions and transfers
Change in net position
Net position - January 1
Net position - December 31
Statement 8
Business -Type Activities - Enterprise Funds
601 Water 602 Sewer Totals
$1,065,379
$1,672,456
$2,737,835
33,010
26,497
59,507
37,606
-
37,606
14,839
10
14,849
1,150,834
1,698,963
2,849,797
264,673
268,134
532,807
172,864
51,038
223,902
102,165
93,992
196,157
-
942,972
942,972
580,804
477,094
1,057,898
102,877
41,297
144,174
21,866
27,294
49,160
1,245,249
1,901,821
3,147,070
(94,415)
(202,858)
(297,273)
39,612
66,876
106,488
(54,803)
(135,982)
(190,785)
421,608
414,421
836,029
166,246
3,964
170,210
104,969
104,969
209,938
(35,727)
(35,727)
(71,454)
657,096
487,627
1,144,723
602,293
351,645
953,938
22,019,271
23,704,786
45,724,057
$22,621,564
$24,056,431
$46,677,995
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, 2017
Statement 9
Cash flows from capital and related financing activities:
Acquisition of capital assets
Business -Type
Activities - Enterprise
Funds
Net cash flows provided by (used in)
601 Water
602 Sewer
Totals
Cash flows from operating activities:
(23,000)
0
(23,000)
Receipts from customers and users
$1,136,110
$1,695,698
$2,831,808
Payment to suppliers
(444,107)
(1,301,838)
(1,745,945)
Payment to employees
(248,394)
(252,391)
(500,785)
Net cash flows provided by operating activities
443,609
141,469
585,078
Cash flows from noncapital financing activities:
$5,477,346
$8,444,352
$13,921,698
Interfund loans provided to other funds
-
(355,839)
(355,839)
Transfers in
104,969
104,969
209,938
Transfers out
(35,727)
(35,727)
(71,454)
Net cash flows provided by (used in)
noncapital financing activities
69,242
(286,597)
(217,355)
Cash flows from capital and related financing activities:
Acquisition of capital assets
(23,000)
-
(23,000)
Net cash flows provided by (used in)
capital and related financing activities
(23,000)
0
(23,000)
Cash flows from investing activities:
Investment earnings
39,612
66,876
106,488
Net increase (decrease) in cash and cash equivalents
529,463
(78,252)
451,211
Cash and cash equivalents - January 1
4,947,883
8,522,604
13,470,487
Cash and cash equivalents - December 31
$5,477,346
$8,444,352
$13,921,698
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)
($94,415)
($202,858)
($297,273)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation
580,804
477,094
1,057,898
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units
-
409
409
Decrease (increase) in accounts receivable - net
(14,724)
(3,674)
(18,398)
Decrease (increase) in prepaid items
906
1,259
2,165
Decrease (increase) in inventory
51,459
-
51,459
Decrease (increase) in deferred outflows of resources
35,592
35,592
71,184
Increase (decrease) in payables
(96,700)
(146,504)
(243,204)
Increase (decrease) in other accrued liabilities
(46)
(582)
(628)
Increase (decrease) in compensated absences
83
83
166
Increase (decrease) in other post employment benefits
4,240
4,240
8,480
Increase (decrease) in net pension liability
(31,955)
(31,955)
(63,910)
Increase (decrease) in deferred inflows of resources
8,365
8,365
16,730
Total adjustments
538,024
344,327
882,351
Net cash provided by operating activities
$443,609
$141,469
$585,078
Noncash investing, capital and financing activities:
Contributions of capital assets $587,854 $418,385 $1,006,239
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, 2017
Assets:
Cash and investments
Liabilities:
Deposits payable
The accompanying notes are an integral part of these financial statements.
44
Statement 10
$1,719,511
$1,719,511
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes, Minnesota (the City) is a public corporation formed under Minnesota Statute 410. As
such, the City is under home rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City have been prepared in conformity with U.S. generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of significant accounting policies:
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity include those of the City (the primary
government) and its component units. The component units discussed below are included in the City's
reporting entity because of the significance of their operational or financial relationships with the City.
COMPONENT UNITS
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component units have been included in the financial report as blended
component units.
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the
City. However, for financial reporting purposes, the EDA is reported as if it were a part of the
City's operation because the governing body is substantially the same as the governing body of the
City and a financial benefit or burden relationship exists between the City and the EDA. The EDA
does not issue separate financial statements. The Housing and Development Authority (HRA) of
Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes,
the HRA is reported as if it were part of the City's operations because the members of the City
Council serve as commission members and a financial benefit or burden relationship exists
between the City and the HRA. The HRA has not yet incurred any financial activity.
B. GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS
The government -wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non -fiduciary activities of the primary government and its
component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which rely to a
significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
business -type activity are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business -type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business -type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business -type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
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
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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. The fund
was closed in 2017.
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.
General Obligation Improvement Bonds of 2016B Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt.
Area and Unit Charge Fund 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, 2017
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
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
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.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
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
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
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.
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017, 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
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
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 and OPEB 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.
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.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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. At December 31, 2017, the bank balance of the City's deposits was insured by the FDIC or
covered by pledged collateral held in the City's name.
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, 2017, the carrying amount of the City's deposits with financial institutions was
$257,836.
53
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
fl 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.
54
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
At December 31, 2017, 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
$4,275,289
$4,275,289
$
$ -
Morgan Stanley money market
NR
24,165
24,165
-
4M Fund
NR
7,207,927
7,207,927
-
-
Brokered CD's
NR
16,419,585
6,887,755
8,413,876
1,117,954
Municipal bonds
*
10,908,237
1,568,897
8,746,306
593,034
Federal Home Loan Mortgage Corp.
AAA
1,482,210
-
-
1,482,210
Total
$40,317,413
$19,964,033
717,160,182
$3,193,198
NR - Not Rated
Total investments
$40,317,413
* AAA $1,975,589; AA+ $463,359
Deposits
257,836
AA $3,507,002; AA- $2,967,505
Petty cash
940
A+ $710,532
Total cash and investments
$40,576,189
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business -type (Statement 1) $38,856,678
Fiduciary (Statement 10) 1,719,511
Total $40,576,189
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.
6SI
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
The City has the following recurring fair value measurements at December 31, 2017:
Fair Value Measurement Using
Investment Type 12/31/2017 Level 1 Level 2 Level 3
Investments at fair value:
Brokered CD's $16,419,585 $ - $16,419,585 $ -
Municipal bonds 10,908,237 - 10,908,237 -
Federal Home Loan Mortgage Corp. 1,482,210 - 1,482,210 -
$0 $28,810,032 $0
Investments not categorized:
Wells Fargo money market 4,275,289
Morgan Stanley money market 24,165
4M Fund 7,207,927
Total investments $40,317,413
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, 2017
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. At December 31, 2017, 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, 2017 are as
follows:
Major Funds:
General Fund
G.O. Improvement Note of 2009A
G.O. Improvement Bonds of 2016B
Area and Unit Charge
Nonmajor Funds
Total
Note 4 UNAVAILABLE REVENUE
Property
Special
Special
Taxes
Assessments
Notes
Receivable
Receivable
Receivable
Total
$35,344
$ -
$ -
$35,344
-
2,630,915
-
2,630,915
-
2,994,379
-
2,994,379
-
1,029,733
-
1,029,733
8,179
1,042,887
225,000
1,276,066
$43,523
$7,697,914
$225,000
$7,966,437
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:
6711
Property
Special
Taxes
Assessments
Receivable
Receivable
Total
Major Funds:
General Fund
$56,559
$329
$56,888
G.O. Improvement Note of 2009A
-
2,639,483
2,639,483
G.O. Improvement Bonds of 2016B
-
2,994,379
2,994,379
Area and Unit Charge
-
1,126,587
1,126,587
Nonmajor Funds
13,088
1,190,885
1,203,973
Total
$69,647
$7,951,663
$8,021,310
6711
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2017 was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $3,275,859 $44,200 $ $ $3,320,059
Wetland credits - 162,372 162,372
Construction in progress 8,961,062 2,742,038 (9,050,652) (170,210) 2,482,238
Total capital assets, not being depreciated 12,236,921 2,948,610 (9,050,652) (170,210) 5,964,669
Capital assets, being depreciated:
Buildings
Office equipment and furniture
Vehicles
Machinery and shop equipment
Other equipment
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Office equipment and furniture
Vehicles
Machinery and shop equipment
Other equipment
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated - net
Governmental activities capital assets - net
Business -type activities:
Capital assets, not being depreciated:
Construction in progress
Capital assets, being depreciated:
Machinery and shop equipment
Water and sewer systems
Total capital assets, being depreciated
Accumulated depreciation for:
Machinery and shop equipment
Water and sewer systems
Total accumulated depreciation
Total capital assets being depreciated - net
Business -type activities capital assets - net
6,891,847
4,029,901
10,921,748
659,440
124,186
783,626
3,417,668
1,102,354
(175,204)
4,344,818
2,309,413
275,921
(28,017)
2,557,317
1,034,126
77,284
1,111,410
80,738,460
5,144,197
85,882,657
95,050,954
10,753,843
(203,221)
0
105,601,576
4,185,492
360,245
4,545,737
501,736
45,113
546,849
2,046,936
396,889
(115,362)
2,328,463
1,292,081
154,165
(22,553)
1,423,693
827,741
16,573
844,314
57,279,464
1,986,698
59,266,162
66,133,450
2,959,683
(137,915)
0
68,955,218
28,917,504
7,794,160
(65,306)
(170,210)
36,646,358
$41,154,425
$10,742,770
($9,115,958)
($170,210)
$42,611,027
Beginning
Ending
Balance
Increases
Decreases
Transfers
Balance
$5,617,436
$1,006,237
($5,116,520)
$
$1,507,153
474,654
-
474,654
42,858,242
4,969,313
170,210
47,997,765
43,332,896
4,969,313
0
170,210
48,472,419
307,215
19,870
-
327,085
16,782,509
1,038,028
17,820,537
17,089,724
1,057,898
0
0
18,147,622
26,243,172
3,911,415
0
170,210
30,324,797
$31,860,608
$4,917,652
($5,116,520)
$170,210
$31,831,950
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
$361,534
346,690
2,248,202
850
2,407
$2,959,683
$580,804
477,094
$1,057,898
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 6 LONG-TERM DEBT
The City issues general obligation bonds and certificates of indebtedness to provide funds for the acquisition and
construction of major capital facilities and equipment. City indebtedness at December 31, 2017 consisted of the
following:
Total Government Activities
Business -Type Activities:
Compensated absences payable
60
$28,303,528 $20,745,151
N/A $66,556
Final
Issue
Maturity
Interest
Original
Payable
Date
Date
Rate
Issue
12/31/17
Governmental activities:
General Obligation Bonds:
2015A Certificates of Indebtedness
02/01/15
12/31/18
1.00%
$198,250
$66,250
2015B Certificates of Indebtedness
08/25/15
12/31/20
1.50%
963,000
593,000
2016A Certificates of Indebtedness
02/01/16
12/31/19
1.00%
469,000
314,000
2017A Certifciates of Indebtedness
03/01/17
12/31/20
1.00%
311,000
311,000
G.O. CIP Refunding Bonds, Series 2006E
11/01/06
02/01/18
4.00%
2,990,000
425,000
G.O. TIF Bonds, Series 2007A
07/15/07
02/01/24
4.00%- 4.125%
4,215,000
1,625,000
G.O. Refunding Bonds, Series 2012A
11/15/12
02/01/24
1.00% - 2.00%
2,015,000
1,270,000
G.O. Bonds 2015A
08/01/15
02/01/31
2.00% - 3.00%
3,095,000
2,905,000
EDA Lease Revenue Bonds 2015B
10/01/15
04/01/36
2.00% - 3.00%
4,350,000
4,185,000
G.O. Utility Revenue Bonds, Series 2016A
11/23/16
02/01/27
2.00%
1,420,000
1,420,000
G.O. Tax Abatement Refunding Bonds 2016C
11/23/16
02/01/23
1.00% -1.50%
1,600,000
1,600,000
Total General Obligation Bonds
21,626,250
14,714,250
Special Assessment Bonds:
G.O. Imp & Utility Revenue Bonds, Series 2010A
07/09/10
02/01/20
2.00% - 3.00%
1,000,000
325,000
G.O. Improvement Bonds, Series, 2013A
07/15/13
02/01/24
1.25% - 4.00%
615,000
435,000
G.O. Improvement Bonds, Series 2014A
11/20/14
02/01/26
0.40% - 2.30%
2,645,000
2,170,000
G.O. Improvement Refunding Bonds, Series 2016B
11/23/16
02/01/21
0.875% -1.50%
1,975,000
1,975,000
Total Special Assessment Bonds
6,235,000
4,905,000
G.O. Capital Note, Series 2016A
04/14/16
2/1/2026
2.00%
294,525
233,475
Unamortized bond premiums
199,750
142,182
Unamortized bond discounts
(51,997)
(18,664)
Compensated absences payable
N/A
768,908
Total Government Activities
Business -Type Activities:
Compensated absences payable
60
$28,303,528 $20,745,151
N/A $66,556
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2017:
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 was 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
$18,196,250
$311,000
$3,793,000
$14,714,250
$2,084,250
Special assessment bonds
7,795,000
-
2,890,000
4,905,000
1,015,000
Total bonded debt
25,991,250
311,000
6,683,000
19,619,250
3,099,250
Improvement note
1,345,000
-
1,345,000
-
-
Capital note
264,000
-
30,525
233,475
31,350
Unamortized bond premiums
166,322
-
24,140
142,182
-
Unamortized bond discounts
(25,491)
-
(6,827)
(18,664)
-
Compensated absences payable
734,415
614,868
580,375
768,908
492,042
Total governmental activities
$28,475,496
$925,868
$8,656,213
$20,745,151
$3,622,642
Business -Type Activities:
Compensated absences payable
$66,390
$44,663
$44,497
$66,556
$38,130
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 was 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, 2017
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
2018
$3,099,250
$417,929
2019
2,679,000
365,296
2020
2,506,000
320,811
2021
2,150,000
274,974
2022
1,440,000
236,339
2023-2027
4,675,000
742,488
2028-2032
1,970,000
361,919
2033-2037
1,100,000
90,000
Total
$19,619,250
$2,809,756
Capital Note
Principal Interest
$31,350
$4,670
32,175
4,042
33,000
3,399
33,000
2,739
33,825
4,191
70,125
-
$233,475 $19,041
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, 2017 totaled $13,005,401.
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 were 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 were 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, 2017
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:
Bond Issue
Use of Proceeds
Revenue Pled ed
Current Year
Type
Term of
Pledge
Remaining
Principal
and Interest
Principal
and Interest
Paid
Pledged
Revenue
Received
Certificates of Indebtedness
Equipment purchases
Ad valorem taxes
2015-2020
$1,316,355
$606,792
$633,871
2006E G.O. CIP Bonds
Infrastructure improvements
Ad valorem taxes
2007-2017
$433,500
$431,657
$462,493
2007A G.O. TIF Bonds
Infrastructure improvements
MSA funding via
transfers, tax increment
2008-2023
$1,874,899
$475,481
$475,481
2010A Improvement and Utility
Revenue Bonds
General and water infrastructure
improvements
Special assessments and
trunk charges
2011-2019
$339,925
$111,955
$46,247
2012A G.O. Bonds
Infrastructure improvements
Ad valorem taxes and
Special assessments
2013-2023
$1,328,093
$242,020
$200,014
2013A Improvement Bonds
Infrastructure improvements
Special assessments
2014-2023
$494,160
$76,853
$63,606
2014A Improvement Bonds
Infrastructure improvements
Special assessments
2015-2025
$2,294,501
$402,927
$251,212
2015A G.O. Bonds
Infrastructure improvements
Ad valorem taxes
2016-2030
$3,397,356
$257,817
$271,621
2015B EDA Lease Revenue Bonds
Construction of a fire station
Ad valorem taxes
2016-2035
$5,687,956
$299,942
$315,855
2016A Capital Note
Cable communications equipment
Franchise fees
2016-2025
$252,516
$37,595
$37,595
2016A Utility Revenue Bonds
Water infrastructure improvements
Trunk utility charges via
transfers
2017-2026
$1,565,300
$20,269
$274,474
2016B Improvement Bonds
Infrastructure improvements
Special assessments,
tax increment
2017-2020
$2,028,048
$17,015
$ -
2016C G.O. Tax Abatement Bonds
Infrastructure improvements
Ad valorem taxes
2017-2022
$1,668,913
$14,671
$259,710
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
63
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
accompanying financial statements. At December 31, 2017, one series of Industrial Revenue Bonds was
outstanding with an aggregate remaining principal balance of $60,000, and one series of Commercial Revenue
Notes was outstanding with an aggregate remaining principal balance of $1,097,227.
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 -
64
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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.
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 2017. The City was required to
contribute 11.78% of pay for Basic Plan members and 7.5% for Coordinated Plan members in
calendar year 2017. The City contributions to the GERF for the year ended December 31, 2017
were $192,510. The City contributions were equal to the required contributions asset by state
statute.
2. PEPFF Contributions
Plan members were required to contribute 10.8% of their annual covered salary in calendar year
2017. The City was required to contribute 16.2% of pay for PEPFF members in calendar year
2017. The City contributions to the PEPFF for the year ended December 31, 2017 were $416,665.
The City contributions were equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2017, the City reported a liability of $2,642,949 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 2017. 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
65
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
associated with the City totaled $33,230. The net pension liability was measured as of June 30,
2017, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City's proportion of the net pension liability was based on
the City's contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2016 through June 30, 2017, relative to the total employer contributions
received from all of PERA's participating employers. At June 30, 2017, the City's proportionate
share was 0.0414%, which was an increase of 0.0027% from its proportionate share measured as of
June 30, 2016.
For the year ended December 31, 2017, the City recognized pension expense of $380,051 for its
proportionate share of the GERF's pension expense. In addition, the City recognized an additional
$960 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, 2017, 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
$87,104
438,787
19,277
118,300
95,266
$758,734
$171,203
264,956
86,926
$523,085
$95,266 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 2018. 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
2018 $100,060
2019
163,129
2020
(10,618)
2021
(112,188)
2022
-
Thereafter
-
2. PEPFF Pension Costs
At December 31, 2017, the City reported a liability of $3,469,806 for its proportionate share of the
PEPFF's net pension liability. The net pension liability was measured as of June 30, 2017 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, 2017
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, 2016 through June 30, 2017, relative to the total employer contributions received from
all of PERA's participating employers. At June 30, 2017, the City's proportion was 0.257%, which
was a decrease of 0.002% from its proportion measured as of June 30, 2016. The City also
recognized $23,130 for the year ended December 31, 2017 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, 2017, the City recognized pension expense of $874,127 for its
proportionate share of the PEPFF's pension expense.
At December 31, 2017, 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
$79,868
4,540,933
46,997
75,053
$927,062
4,926,263
27,560
220,753 -
$4,963,604 $5,880,885
A total of $220,753 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 2018. 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
2018 $73,515
2019
73,518
2020
(53,354)
2021
(256,922)
2022
(974,791)
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, 2017
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2017 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 PEPFF for males or
females, as appropriate, with slight adjustments to fit PERA's experience. Cost of living benefit
increases for retirees are assumed to be 1% per year for the GERF through 2044 and PEPFF through
2064 and then 2.5% thereafter.
Actuarial assumptions used in the June 30, 2017 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 most recent five-year experience study for PEPFF was completed in 2016.
The following changes in actuarial assumptions occurred in 2017:
General Employees Fund
• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active
members and 60 percent for vested and non -vested deferred members. The revised CSA
loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred
member liability and 3.0 percent for non -vested deferred member liability.
• The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for
all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
Police and Fire Fund
• The single discount rate was changed from 5.6% to 7.5%.
• Assumed salary increases were changed as recommended in the June 30, 2016 experience
study. The net effect is proposed rates that average 0.34 percent lower than the previous
rates.
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The Combined Service Annuity (CSA) load was 30 percent for vested and non -vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent for
non -vested members.
• The base mortality table for healthy annuitants was changed from the RP -2000 fully
generational table to the RP -2014 fully generational table (with a base year of 2006), with
male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from
Scale AA to Scale MP -2016. The base mortality table for disabled annuitants was changed
from the RP -2000 disabled mortality table to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3.0 percent for the first three years of service.
Rates beyond the select period of three years were adjusted, resulting in more expected
terminations overall.
• Assumed percentage of married female members was decreased from 65 percent to 60 percent.
68
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing Joint and Survivor annuities was
increased.
• The assumed post-retirement benefit increase rate was changed from 1.00 perfect for all years
to 1.00 percent per year through 2064 and 2.50 percent thereafter.
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%. 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 and the PEPFF 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. At
June 30, 2016, the Police and Fire Fund projected benefit payments to exceed the funds projected
fiduciary net position after June 30, 2056 and therefore used a single discount rate of 5.6%, which as
stated above, increased to 7.5% at June 30, 2017.
69
Target
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Domestic stocks
39%
5.10%
International stocks
19%
5.30%
Bonds
20%
0.75%
Alternative assets
20%
5.90%
Cash
2%
0.00%
Totals
100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%. 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 and the PEPFF 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. At
June 30, 2016, the Police and Fire Fund projected benefit payments to exceed the funds projected
fiduciary net position after June 30, 2056 and therefore used a single discount rate of 5.6%, which as
stated above, increased to 7.5% at June 30, 2017.
69
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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, 2017 is as follows:
GERF $381,011
PEPFF 874,127
Fire Pension Plan (Note 9) 45,088
Total $1,300,226
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. At December 31, 2017 (measurement date), the plan
covered 23 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.
FTI
1% Decrease in
1% Increase in
Discount Rate (6.5%)
Discount Rate (7.5%) Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability
$4,099,410
$2,642,949 $1,450,571
City's proportionate share of the
PEPFF net pension liability
$6,534,657
$3,469,806 $939,602
City's proportionate share of the
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, 2017 is as follows:
GERF $381,011
PEPFF 874,127
Fire Pension Plan (Note 9) 45,088
Total $1,300,226
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. At December 31, 2017 (measurement date), the plan
covered 23 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.
FTI
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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. 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
$113,797 in fire state aid to the plan for the year ended December 31, 2017. 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, 2017 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 $58,800 to the plan.
71
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
D. PENSION COSTS
At December 31, 2017, the City reported a net pension asset of $127,994 for the SVF plan. The net
pension asset was measured as of December 31, 2017. The total pension liability used to calculate the
net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula
to specific census data certified by the fire department. The following table presents the changes in net
pension liability during the year.
Beginning balance December 31, 2016
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, 2017
There were no benefit provision changes during the measurement period.
For the year ended December 31, 2017, the City recognized pension expense of $45,088.
At December 31, 2017, 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
Plan
Net
Total
Fiduciary
Pension
Pension
Net
Liability
Liability
Position
(Asset)
(a)
(b)
(a -b)
$55,240
$44,527
$10,713
47,952
-
47,952
6,191
-
6,191
(11,672)
-
(11,672)
-
2,672
(2,672)
-
58,800
(58,800)
-
113,797
(113,797)
-
6,481
(6,481)
-
(572)
572
42,471
181,178
(138,707)
$97,711
$225,705
($127,994)
There were no benefit provision changes during the measurement period.
For the year ended December 31, 2017, the City recognized pension expense of $45,088.
At December 31, 2017, 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
$5,264
17,495
$22,759
$0
$5,264
17,495
$22,759
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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
2018
($6,955)
2019
(6,956)
2020
(5,215)
2021
(3,633)
2022
-
Thereafter
-
E. ACTUARIAL ASSUMPTIONS
The total pension liability at December 31, 2017, 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 2017
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 asset for the SVF plan, calculated using the discount rate
disclosed in the preceding paragraph, as well as what the City's net pension asset would be if it were
calculated using a discount rate 1% lower or 1% higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (5.0%) Discount Rate (6.0%) Discount Rate (7.0%)
Net pension asset $118,348 $127,994 $136,963
73
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 353G.
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the
Investment Advisory Council, establishes investment policies for all funds under its control. These
investment policies are tailored to the particular needs of each fund and specify investment
objectives, risk tolerance, asset allocation, investment management structure and specific
performance standards. Studies guide the on-going management of the funds and are updated
periodically.
2. Asset Allocation
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset
allocation for the Statewide Volunteer Firefighter Retirement Plan (VOLP) that includes
allocations to domestic equity, international equity, bonds and cash equivalents. The long-term
target asset allocation and long-term expected real rate of return is the following:
Target Long -Term Expected
Asset Class Allocation Real Rate of Return
Domestic Stocks 35% 5.10%
International Stocks 15% 5.30%
Bonds 45% 0.75%
Cash 5% 0.00%
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 from a number of investment management and consulting
organizations. 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 2017 for the
Statewide Volunteer Firefighter Retirement Plan.
74
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the SVF plan's fiduciary net position at June 30, 2017 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 POST -EMPLOYMENT BENEFITS OTHER THAN PENSIONS (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, through its group health insurance plan
(the plan). The plan is a single -employer defined benefit OPEB plan 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. No assets are accumulated in a trust that meets the
criteria in paragraph 4 of GASB Statement No. 75.
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.
The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty
in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal to the
employer portion of health insurance premiums that would have otherwise been paid if the officer or
firefighter was an active employee. During 2017, benefits were provided to one officer disabled in the
line of duty and one officer killed in the line of duty.
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.
01
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
C. PARTICIPANTS
As of the January 1, 2017 actuarial valuation, participants of the plan consisted of-
Active
£
Active employees 46
Inactive employees or beneficiaries
currently receiving benefits 6
Total 52
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City's total OPEB liability of $746,540 was measured as of December 31, 2017, and was
determined by an actuarial valuation as of January 1, 2017. Changes in the total OPEB liability during
2017 were:
Balance - beginning of year
$789,627
Changes for the year:
Service cost
16,990
Interest
22,542
Changes of benefit terms
-
Differences between expected and actual experience
(51,083)
Changes in assumptions
-
Benefit payments
(31,536)
Net changes
(43,087)
Balance - end of year
$746,540
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation
Salary increases
Discount rate
Investment rate of return
Healthcare cost trend rates
Retirees' share of benefit -related costs
3.50%
3.50%
2.85%
2.85%
8.00% for 2017, decreasing 1.00% per year to
an ultimate rate of 3.00% for 2022 and beyond
100%
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of
return was based on the 20 year AA rated municipal bond rate as of November 22, 2017, obtained from
www.fmsbonds.com/market-yields.
Mortality rates were based on the SOA RP -2014 Total Dataset Mortality tables with Scale MP -2014 and
Improvement Scale BB.
76
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Based on past experience of the plan, 90% of future retirees are assumed to continue medical coverage
until age 65. 50% of police/fire employees are assumed to retire at age 55, the balance at age 65. 50%
of other City employees are assumed to retire at age 62, the balance at age 65.
F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT
RATE
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using a discount rate that is 1% lower (1.85%) or 1% higher
(3.85%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.85%) (2.85%) (3.85%)
Total OPEB liability $831,489 $746,540 $671,756
G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE
COST TREND RATES
The following presents the total OPEB liability of the City, as well as what the City's total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower (7%
decreasing to 2%) or 1% higher (9% decreasing to 4%) than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(7% decreasing to 2%) (8% decreasing to 3%) (9% decreasing to 4%)
Total OPEB liability $661,327 $746,540 $845,440
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended December 31, 2017, the City recognized $39,532 of OPEB expense. At December
31, 2017, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Differences between expected
and actual experience
V&A
Deferred Outflows Deferred Inflows
of Resources of Resources
$0 $51,083
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended
December 31,
2018
2019
2020
2021
2022
Thereafter
OPEB
Expense
($3,923)
(3,923)
(3,923)
(3,923)
(3,923)
(31,468)
($51,083)
Note 11 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2017 as follows:
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of departments within the General Fund that exceeded budget appropriations:
General government:
Engineering/planning
Government buildings
Public services:
Parks
Recreation
Final
Budget Actual
$105,706 $111,441
603,318 636,089
639,281 664,740
246,949 248,031
Overage
$5,735
32,771
25,459
1,082
Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final
budgeted expenditures by $26,51 L
78
Fund Balance
Deficit
Nonmajor Governmental Funds:
G.O. Improvement Bonds of 2016B
($1,932,462)
Tax Increment Financing 1-11
(777,999)
Tax Increment Financing 1-12
(1,044)
2018 Street Reconstruction
(197,668)
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of departments within the General Fund that exceeded budget appropriations:
General government:
Engineering/planning
Government buildings
Public services:
Parks
Recreation
Final
Budget Actual
$105,706 $111,441
603,318 636,089
639,281 664,740
246,949 248,031
Overage
$5,735
32,771
25,459
1,082
Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final
budgeted expenditures by $26,51 L
78
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
Note 12 INTERFUND RECEIVABLES AND PAYABLES
Long-term interfund loans are classified as interfund loan receivable/payable. A summary of such loans at
December 31, 2017 is as follows:
Note 13 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2017 are as follows:
Major Funds:
General Fund
G.O. Improvement Bonds of 2005A
G.O. Improvement Note of 2009A
G.O. Improvement Bonds of 2016B
Area and Unit Charge
Water Fund
Sewer Fund
Nonmajor governmental funds
Total
$3,949,826 $3,949,826
Transfer In
$439,373
2,187,503
1,126,057
272,506
104,969
104,969
2,959,004
Transfer Out
$879,759
7
2,187,503
236,548
35,727
35,727
3,819,110
$7,194,381 $7,194,381
During 2017, 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 debt service 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
Receivable
Payable
Major Funds:
G.O. Improvement Bonds of 2016B
$ -
$2,876,643
Area and Unit Charge
100,361
-
Sewer Fund
914,949
-
Nonmajor Funds:
Closed Bond Fund
616,983
-
Building and Facilities
2,317,533
-
Dedicated Parks
-
100,361
Tax Increment Financing 1-11
-
775,154
2018 Street Reconstruction
-
197,668
Note 13 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2017 are as follows:
Major Funds:
General Fund
G.O. Improvement Bonds of 2005A
G.O. Improvement Note of 2009A
G.O. Improvement Bonds of 2016B
Area and Unit Charge
Water Fund
Sewer Fund
Nonmajor governmental funds
Total
$3,949,826 $3,949,826
Transfer In
$439,373
2,187,503
1,126,057
272,506
104,969
104,969
2,959,004
Transfer Out
$879,759
7
2,187,503
236,548
35,727
35,727
3,819,110
$7,194,381 $7,194,381
During 2017, 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 debt service 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, 2017
Note 14 FUND BALANCE
At December 31, 2017, a summary of the governmental fund balance classifications is as follows:
Nonspendable:
Prepaid items
Corpus of permanent fund
Total nonspendable
Restricted for:
Debt service
Economic development
Blue Heron Days
Narcotics and forfeiture funds
Tax increment purposes
Environmental purposes
Total restricted
Committed for:
Economic development
Cable TV purposes
Recreation purposes
Total committed
Assigned for:
Capital improvements
Unassigned
Total fund balance
Area and
Unit Charge
$ - $1,659 $244,976
_ 100,000 100,000
0 101,659 344,976
Other
Governmental
Funds Total
G.O.
General
Improvement
Fund
Bonds of 2016B
$243,317
$
243,317
0
Area and
Unit Charge
$ - $1,659 $244,976
_ 100,000 100,000
0 101,659 344,976
Other
Governmental
Funds Total
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 $1,805,168, 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,
2018
2019
80
Amount
$77,901
39,522
$117,423
4,223,799
4,223,799
225,000
225,000
6,965
6,965
330,866
330,866
479,695
479,695
23,316
23,316
0
0
0
5,289,641
5,289,641
88,251
88,251
83,946
83,946
-
-
3,204
3,204
0
0
0
175,401
175,401
-
7,656,155
6,925,514
14,581,669
6,573,608
(1,932,462)
-
(976,711)
3,664,435
$6,816,925
($1,932,462)
$7,656,155
$11,515,504
$24,056,122
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 $1,805,168, 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,
2018
2019
80
Amount
$77,901
39,522
$117,423
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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 at December 31, 2017:
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, 2017.
C. COMMITTED CONTRACTS
At December 31, 2017, the City had commitments of $194,558 for uncompleted construction contracts.
81
TIF 1-5
TIF 1-11
TIF 1-12
Cottage
TIF 1-10
Woods
Clearwater
Homesteads
Panattoni
Edge
Creek
Authorizing law
M.S. 469
M.S. 469
M.S. 469
M.S. 469
Year established
1994
2004
2005
2006
Final year of district
2022
2023
2031
2026
Net tax capacity:
Original
S128
$15,869
$7,241
$11,731
Current (payable 2017)
34,052
232,094
135,973
11,731
Captured - retained
$33,924
$216,225
$128,732
$0
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, 2017.
C. COMMITTED CONTRACTS
At December 31, 2017, the City had commitments of $194,558 for uncompleted construction contracts.
81
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
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. 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.
Statement No. 86 Certain Debt Extinguishment Issues. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2017.
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning
after December 15, 2019.
Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements. The provisions of this Statement are effective for reporting periods beginning after June 15,
2018.
82
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2017
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 87 may have a material impact.
Note 20 CHANGE IN ACCOUNTING PRINCIPLE
For the year ended December 31, 2017, the City implemented GASB Statement No. 75, Accounting and Financial
Reporting for Postemployment Benefits Other Than Pensions. GASB Statement No. 75 established new accounting
and financial reporting requirements for governments whose employees are provided OPEB. See Note 10 for further
information.
The standard required retroactive implementation which resulted in a restatement of net position for governmental
activities at December 31, 2016. Certain amounts necessary to fully restate 2016 financial statements are not
determinable, therefore, prior year comparative amounts have not been restated. Details of the prior period adjustment
are as follows:
Governmental
Activities
Net position - January 1, 2017, as previously reported $42,819,930
Prior period adjustment:
Effect of implementing GASB Statement No. 75 (692,480)
Net position - January 1, 2017, as restated $42,127,450
83
- This page intentionally left blank -
84
REQUIRED SUPPLEMENTARY INFORMATION
85
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
Statement 11
Page 1 of 6
Total revenues
86
9,435,841 10,238,693 10,244,627 5,934
Variance
with Final
Budget -
2017 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original
Final
Revenues:
General propery taxes:
Current and delinquent
$7,410,431
$6,407,494
$6,359,583
($47,911)
Fiscal disparities
-
977,937
975,939
(1,998)
Excess tax increments
-
3,000
3,354
354
Total general property taxes
7,410,431
7,388,431
7,338,876
(49,555)
Licenses and permits:
Business
126,229
141,229
146,709
5,480
Non -business
486,524
1,238,524
1,300,862
62,338
Total licenses and permits
612,753
1,379,753
1,447,571
67,818
Intergovernmental:
State:
Police state aid
195,000
230,000
229,395
(605)
OTS grant
110,000
85,000
84,385
(615)
MSA maintenance
255,000
240,000
241,138
1,138
Other
14,000
22,000
29,108
7,108
County solid waste grant
107,409
107,409
83,494
(23,915)
Total intergovernmental
681,409
684,409
667,520
(16,889)
Special assessments
14,500
4,500
4,293
(207)
Charges for services:
General government
11,100
26,100
27,030
930
Engineering and planning fees
15,000
25,000
25,459
459
Public safety
189,200
189,200
187,988
(1,212)
Public services
25,500
16,500
11,561
(4,939)
Investment management charge to other funds
50,000
50,000
50,000
-
Total charges for services
290,800
306,800
302,038
(4,762)
Fines and forfeits
175,600
145,600
147,977
2,377
Investment earnings
30,000
30,000
40,913
10,913
Miscellaneous:
Gas franchise fees
70,000
50,000
54,689
4,689
Building lease revenue
102,848
102,848
102,848
-
Refunds and reimbursements
40,000
40,000
29,052
(10,948)
Donations
5,000
500
500
-
Other
2,500
105,852
108,350
2,498
Total miscellaneous
220,348
299,200
295,439
(3,761)
Total revenues
86
9,435,841 10,238,693 10,244,627 5,934
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
Expenditures:
General government:
Mayor and city council:
Current:
Personal services
Other services and charges
Contractual services
Total mayor and city council
Elections:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total elections
Administration:
Current:
Personal services
Other services and charges
Contractual services
Total administration
Finance:
Current:
Personal services
Supplies
Other services and charges
Contractual services
Total finance
Cable TV:
Current:
Personal services
Capital outlay
Total cable TV
Legal consultants:
Current:
Contractual services
87
Statement 11
Page 2 of 6
Variance
with Final
Budget -
2017 Actual Positive
Budgeted Amounts Amounts (Negative)
Original Final
43,733
43,733
38,966
4,767
18,000
18,500
19,541
(1,041)
17,500
17,500
17,265
235
79,233
79,733
75,772
3,961
10,130
10,130
8,685
1,445
800
800
257
543
1,200
1,200
1,923
(723)
-
-
382
(382)
4,600
4,600
4,685
(85)
16,730
16,730
15,932
798
472,255
455,255
447,735
7,520
21,860
21,860
18,450
3,410
10,500
10,500
9,481
1,019
504,615
487,615
475,666
11,949
317,635
320,835
319,495
1,340
1,000
1,000
246
754
207,088
207,088
181,219
25,869
101,067
101,067
101,932
(865)
626,790
629,990
602,892
27,098
2,340
2,340
2,477
(137)
500
500
-
500
2,840
2,840
2,477
363
140,000
120,000 111,902 8,098
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
Statement 11
Page 3 of 6
Total general government
1,991,732
2,048,432
2,032,795
Variance
Public safety:
with Final
Police:
Budget -
Current:
2017 Actual
Positive
Personal services
Budgeted Amounts
Amounts
(Negative)
125,942
Original
Final
33,150
27,183
Expenditures: (continued)
Other services and charges
100,176
100,176
107,373
General government: (continued)
Contractual services
56,520
56,520
41,702
Engineering/planning:
Capital outlay
35,000
35,000
34,036
Current:
Total police
3,787,670
3,787,670
3,647,176
Contractual services
105,706
105,706
111,441
(5,735)
Charter commission:
Current:
Current:
Personal services
474,411
474,411
425,694
Other services and charges
2,500
2,500
624
1,876
Government buildings:
Other services and charges
50,545
50,545
47,648
Current:
Contractual services
28,380
28,380
22,532
Personal services
2,460
2,460
2,452
8
Supplies
48,400
48,400
47,139
1,261
Other services and charges
361,258
361,258
426,293
(65,035)
Contractual services
64,200
64,200
77,786
(13,586)
Capital outlay
37,000
127,000
82,419
44,581
Total government buildings
513,318
603,318
636,089
(32,771)
Total general government
1,991,732
2,048,432
2,032,795
15,637
Public safety:
Police:
Current:
Personal services
3,562,824
3,562,824
3,436,882
125,942
Supplies
33,150
33,150
27,183
5,967
Other services and charges
100,176
100,176
107,373
(7,197)
Contractual services
56,520
56,520
41,702
14,818
Capital outlay
35,000
35,000
34,036
964
Total police
3,787,670
3,787,670
3,647,176
140,494
Fire protection:
Current:
Personal services
474,411
474,411
425,694
48,717
Supplies
16,050
16,050
8,135
7,915
Other services and charges
50,545
50,545
47,648
2,897
Contractual services
28,380
28,380
22,532
5,848
Capital outlay
36,614
36,614
32,551
4,063
Total fire protection
606,000
606,000
536,560
69,440
Building inspection:
Current:
Personal services
227,428
224,128
221,715
2,413
Supplies
1,650
1,650
591
1,059
Other services and charges
9,110
9,110
6,502
2,608
Contractual services
1,000
1,000
1,151
(151)
Capital outlay
600
600
-
600
Total building inspection
239,788
236,488
229,959
6,529
Total public safety
4,633,458
4,630,158
4,413,695
216,463
88
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
Statement 11
Page 4 of 6
Total public services 2,302,896 2,207,037 2,178,725 28,312
89
Variance
with Final
Budget -
2017 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original
Final
Expenditures: (continued)
Public services:
Streets:
Current:
Personal services
552,424
565,979
539,862
26,117
Supplies
159,000
166,097
124,256
41,841
Other services and charges
109,600
109,600
149,997
(40,397)
Contractual services
198,000
73,000
95,822
(22,822)
Total streets
1,019,024
914,676
909,937
4,739
Fleet:
Current:
Personal services
118,315
121,704
121,627
77
Supplies
194,000
165,000
139,794
25,206
Other services and charges
62,427
62,427
59,779
2,648
Contractual services
57,000
57,000
34,817
22,183
Total fleet
431,742
406,131
356,017
50,114
Parks:
Current:
Personal services
477,081
483,081
464,841
18,240
Supplies
26,500
26,500
29,574
(3,074)
Other services and charges
39,000
54,000
62,612
(8,612)
Contractual services
55,700
75,700
107,713
(32,013)
Total parks
598,281
639,281
664,740
(25,459)
Recreation:
Current:
Personal services
234,199
227,299
226,836
463
Supplies
2,500
2,500
2,756
(256)
Other services and charges
16,150
16,150
18,001
(1,851)
Contractual services
1,000
1,000
438
562
Total recreation
253,849
246,949
248,031
(1,082)
Total public services 2,302,896 2,207,037 2,178,725 28,312
89
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
Statement 11
Page 5 of 6
Total conservation of natural resources
237,752
230,752
191,639
Variance
Community development:
with Final
Community development:
Budget -
Current:
2017 Actual
Positive
Personal services
Budgeted Amounts
Amounts
(Negative)
969
Original
Final
100
41
Expenditures: (continued)
Other services and charges
8,150
11,650
11,732
Conservation of natural resources:
Contractual services
900
900
905
Forestry:
Total community development
219,419
196,119
195,178
Current:
Economic development:
Personal services
37,457
37,457
36,540
917
Supplies
4,350
4,350
5,276
(926)
Other services and charges
380
380
352
28
Contractual services
15,000
15,000
8,704
6,296
Capital outlay
7,700
7,700
8,247
(547)
Total forestry
64,887
64,887
59,119
5,768
Environmental:
Current:
Personal services
54,215
47,215
44,785
2,430
Supplies
1,000
1,000
802
198
Other services and charges
9,150
9,150
6,876
2,274
Contractual services
1,100
1,100
1,133
(33)
Total environmental
65,465
58,465
53,596
4,869
Solid waste abatement:
Current:
Personal services
54,900
54,900
47,074
7,826
Other services and charges
11,500
11,500
11,298
202
Contractual services
41,000
41,000
20,552
20,448
Total solid waste abatement
107,400
107,400
78,924
28,476
Total conservation of natural resources
237,752
230,752
191,639
39,113
Community development:
Community development:
Current:
Personal services
210,269
183,469
182,500
969
Supplies
100
100
41
59
Other services and charges
8,150
11,650
11,732
(82)
Contractual services
900
900
905
(5)
Total community development
219,419
196,119
195,178
941
Economic development:
Current:
Personal services
21,617
18,617
17,783
834
Other services and charges
90,100
90,100
85,327
4,773
Contractual services
400
400
695
(295)
Total economic development
112,117
109,117
103,805
5,312
r•1
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For The Year Ended December 31, 2017
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 -
2017 Actual Positive
Amounts (Negative)
101,684
101,684
101,579
105
200
200
34
166
16,250
16,250
10,792
5,458
40,250
15,250
15,265
(15)
158,384
133,384
127,670
5,714
489,920
438,620
426,653
11,967
50,000 - - -
9,705,758 9,554,999 9,243,507 311,492
(269,917) 683,694 1,001,120 317,426
317,717 439,373 439,373 -
(565,800) (879,152) (879,759) (607)
(248,083) (439,779) (440,386) (607)
($518,000) $243,915 560,734 $316,819
6,256,191
$6,816,925
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
For The Year Ended December 31, 2017
Covered -employee payroll
Total OPEB liability as a percentage of covered -employee payroll
$3,499,836
21.3%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is intended to
show a ten year trend. Additional years will be added as they become available.
r•►
2017
Total OPEB liability:
Service cost
$16,990
Interest
22,542
Changes of benefit terms
-
Differences between expected and actual experience
(51,083)
Changes in assumptions
-
Benefit payments
(31,536)
Net change in total OPEB liability
(43,087)
Total OPEB liability - beginning
789,627
Total OPEB liability - ending
$746,540
Covered -employee payroll
Total OPEB liability as a percentage of covered -employee payroll
$3,499,836
21.3%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is intended to
show a ten year trend. Additional years will be added as they become available.
r•►
CITY OF LINO LAKES, NIINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2017
Statement 13
2015 2015 0.0410% $2,124,883 $ - $2,124,883 $2,407,426
2016 2016 0.0387% 3,142,248 41,033 3,183,281 2,401,546
2017 2017 0.0414% 2,642,949 33,230 2,676,179 2,666,880
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.
W
88.3% 78.2%
132.6% 68.9%
100.3% 75.9%
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
Measurement Fiscal Year (Percentage) of
of the Net
Liability
Pension Liability
of its
Total
Date Ending the Net Pension
Pension
Associated
Associated with Covered
Covered
Pension
June 30, December 31, Liability
Liability (a)
with City (b)
City (a+b) Payroll (c)
Payroll ((a+b)/c)
Liability
2015 2015 0.0410% $2,124,883 $ - $2,124,883 $2,407,426
2016 2016 0.0387% 3,142,248 41,033 3,183,281 2,401,546
2017 2017 0.0414% 2,642,949 33,230 2,676,179 2,666,880
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.
W
88.3% 78.2%
132.6% 68.9%
100.3% 75.9%
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2017
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,
Statutorily
Contributions in
Contribution
Contributions as a
Fiscal Year
Required
Relation to the
Deficiency
Covered
Percentage of
Ending
Contribution
Statutorily Required
(Excess)
Payroll
Covered
December 31,
(a)
Contribution (b)
(a -b)
(c)
Payroll (b/c)
2015
$182,102
$182,102
$ -
$2,428,027
7.5%
2016
193,684
193,684
-
2,582,452
7.5%
2017
192,510
192,510
-
2,566,800
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.
M,
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, 2017
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.
Proportionate Share
Proportionate
of the Net Pension
Plan Fiduciary
Proportion
Share (Amount)
Liability as a
Net Position as
Measurement
Fiscal Year
(Percentage) of
of the Net
Percentage of its
a Percentage
Date
Ending
the Net Pension
Pension
Covered
Covered
of the Total
June 30,
December 31,
Liability
Liability (a)
Payroll (b)
Payroll (a/b)
Pension Liability
2015
2015
0.2490%
$2,829,223
$2,284,973
123.8%
86.6%
2016
2016
0.2590%
10,394,121
2,495,778
416.5%
63.9%
2017
2017
0.2570%
3,469,806
2,643,314
131.3%
85.4%
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.
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, 2017
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•.
Statutorily
Contributions in
Contribution
Contributions as a
Fiscal Year
Required
Relation to the
Deficiency
Covered
Percentage of
Ending
Contribution
Statutorily Required
(Excess)
Payroll
Covered
December 31,
(a)
Contribution (b)
(a -b)
(c)
Payroll (b/c)
2015
$393,551
$393,551
$ -
$2,429,327
16.2%
2016
424,970
424,970
-
2,623,271
16.2%
2017
416,665
416,665
-
2,572,006
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 Statement 17
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2017
Fiscal year ending and measurement date
December 31, 2017
December 31, 2016
Total pension liability:
Service cost
$47,952
$38,419
Interest on pension liability
6,191
3,568
Changes of benefit terms
-
-
Differences between expected and actual experience
(11,672)
(7,804)
Changes of assumptions
-
-
Benefit payments, including refunds of employee contributions
-
-
Net change in total pension liability
42,471
34,183
Total pension liability - beginning
55,240
21,057
Total pension liability - ending (a)
$97,711
$55,240
Plan fiduciary net position:
Contributions - employer
$58,800
$44,394
Contributions - State of Minnesota
113,797
-
Net investment income
9,153
133
Benefit payments, including refunds of employee contributions
-
-
Administrative expense
(572)
-
Net change in plan fiduciary net position
181,178
44,527
Plan fiduciary net position - beginning
44,527
-
Plan fiduciary net position - ending (b)
$225,705
$44,527
Net pension liability/(asset) - ending (a) - (b)
($127,994)
$10,713
Plan fiduciary net position as a percentage of the total pension liability
231.0%
80.6%
Covered payroll
N/A
N/A
Net pension liability as a percentage of covered employee payroll
N/A
N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does
not meet the definition of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
�r7
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2017
Statement 18
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.
J:
Statutorily
Contributions in
Contribution
Contributions as a
Fiscal Year
Required
Relation to the
Deficiency
Covered
Percentage of
Ending
Contribution
Statutorily Required
(Excess)
Payroll
Covered -Employee
December 31,
(a)
Contribution (b)
(a -b)
(c)
Payroll (b/c)
2016
$ -
$44,394
($44,394)
N/A
N/A
2017
-
58,800
(58,800)
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.
J:
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2017
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 OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay
related benefits. There are no factors that affect trends in the amounts reported, such as changes of benefit
terms or assumptions.
Note C PENSION INFORMATION
PERA — General Employees Retirement Fund
2017 Changes
Changes in Actuarial Assumptions:
• The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members
and 60 percent for vested and non -vested deferred members. The revised CSA loads are now 0.0
percent for active member liability, 15.0 percent for vested deferred member liability and 3.0
percent for non -vested deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all
years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter.
2016 Changes
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
2017 Changes
Changes in Actuarial Assumptions:
• The single discount rate was changed from 5.6% to 7.5%.
• Assumed salary increases were changed as recommended in the June 30, 2016 experience study.
The net effect is proposed rates that average 0.34 percent lower than the previous rates.
Me
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2017
• Assumed rates of retirement were changed, resulting in fewer retirements.
• The Combined Service Annuity (CSA) load was 30 percent for vested and non -vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent for non -
vested members.
• The base mortality table for healthy annuitants was changed from the RP -2000 fully generational
table to the RP -2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP -
2016. The base mortality table for disabled annuitants was changed from the RP -2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
• Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates
beyond the select period of three years were adjusted, resulting in more expected terminations
overall.
• Assumed percentage of married female members was decreased from 65 percent to 60 percent.
• Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
• The assumed percentage of female members electing Joint and Survivor annuities was increased.
• The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to
1.00 percent per year through 2064 and 2.50 percent thereafter.
2016 Changes
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 two years reported in the RSI, there is no additional information to include in the
notes.
100
[off]Ly, l 11z11IL[r1_1z1111►111kyjII1i1_1wZEel ZIIVi/_11197:7
FUND FINANCIAL STATEMENTS AND SCHEDULES
101
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102
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 Environment and Stewardship Fund. This fund
accounts for the use of funds received for environmental maintenance and improvements in the
Foxborough area, as well as funds received for the Preserve area.
103
Ll Eel Z1►n melon 4aLlILn14Llkr_1gall L,Io1w
104
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2017
Statement 19
Special assessments receivable:
Due from county
-
231
567
Permanent
798
Delinquent
-
1,074
8,077
Fund
Total
Deferred
-
850,252
331,482
Environment and
Nonmajor
Interfund loan receivable
Special
Debt
Capital
Stewardship
Governmental
Long-term notes receivable
Revenue
Service
Project
Fund
Funds
Assets
$849,524
$5,091,421
$8,123,796
$123,316
$14,188,057
Cash and investments
$622,865
$4,220,235
$4,847,051
$123,316
$9,813,467
Accounts receivable - net
-
-
1,855
-
1,855
Prepaid items
1,659
-
-
-
1,659
Taxes receivable:
-
-
-
453
Due to other governments
Due from county
-
6,784
5
-
6,789
Delinquent
-
12,845
243
-
13,088
Special assessments receivable:
Due from county
-
231
567
-
798
Delinquent
-
1,074
8,077
-
9,151
Deferred
-
850,252
331,482
-
1,181,734
Interfund loan receivable
-
-
2,934,516
-
2,934,516
Long-term notes receivable
225,000
-
-
-
225,000
Total assets
$849,524
$5,091,421
$8,123,796
$123,316
$14,188,057
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$106,378
$3,450
$147,485
$ -
$257,313
Salaries payable
453
-
-
-
453
Due to other governments
2,802
-
9,374
-
12,176
Contracts payable
-
-
125,455
-
125,455
Interfund loan payable
-
-
1,073,183
-
1,073,183
Total liabilities
109,633
3,450
1,355,497
0
1,468,580
Deferred inflows of resources:
Unavailable revenue
-
864,172
339,801
-
1,203,973
Fund balance:
Nonspendable
1,659
-
-
100,000
101,659
Restricted
562,831
4,223,799
479,695
23,316
5,289,641
Committed
175,401
-
-
-
175,401
Assigned
-
-
6,925,514
-
6,925,514
Unassigned
-
-
(976,711)
-
(976,711)
Total fund balance
739,891
4,223,799
6,428,498
123,316
11,515,504
Total liabilities, deferred inflows
of resources, and fund balance $849,524 $5,091,421 $8,123,796 $123,316 $14,188,057
105
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2017
Statement 20
Expenditures:
88,959
1,595,477
1,274,568
Permanent
Current:
Transfers out
(121,656)
(588,899)
(3,108,555)
Fund
Total
-
6,978
- 6,978
Public safety
Environment and
Nonmajor
-
Special
Debt
Capital
Stewardship
Governmental
- 1,210,380
Revenue
Service
Project
Fund
Funds
Revenues:
258,258
(1,290,019)
(2,544,867)
9,461
General government
General property taxes
$ -
$2,121,680
$33
$ -
$2,121,713
Tax increment
-
-
312,152
-
312,152
Intergovernmental
-
-
413,433
-
413,433
Special assessments
-
364,742
302,186
-
666,928
Charges for services
175,110
-
593,165
-
768,275
Fines and forfeits
465,616
-
-
-
465,616
Investment earnings
4,536
21,265
64,414
961
91,176
Miscellaneous
33,046
37,595
36,060
8,500
115,201
Total revenues
678,308
2,545,282
1,721,443
9,461
4,954,494
Expenditures:
88,959
1,595,477
1,274,568
-
Current:
Transfers out
(121,656)
(588,899)
(3,108,555)
General government
-
-
6,978
- 6,978
Public safety
13,409
-
-
- 13,409
Public services
179,480
-
1,030,900
- 1,210,380
Community development
607
-
5,884
- 6,491
Capital outlay:
258,258
(1,290,019)
(2,544,867)
9,461
General government
-
-
228,895
- 228,895
Public safety
85,638
-
808,193
- 893,831
Public services
108,219
-
759,965
- 868,184
Debt service:
Principal
-
4,353,525
-
- 4,353,525
Interest and fiscal charges
-
488,354
5,836
- 494,190
Total expenditures
387,353
4,841,879
2,846,651
0 8,075,883
Revenues over (under) expenditures
290,955
(2,296,597)
(1,125,208)
9,461 (3,121,389)
Other financing sources (uses):
Transfers in
88,959
1,595,477
1,274,568
-
2,959,004
Transfers out
(121,656)
(588,899)
(3,108,555)
-
(3,819,110)
Issuance of debt
-
-
311,000
-
311,000
Proceeds from sale of capital assets
-
-
103,328
-
103,328
Total other financing sources (uses)
(32,697)
1,006,578
(1,419,659)
0
(445,778)
Net change in fund balance
258,258
(1,290,019)
(2,544,867)
9,461
(3,567,167)
Fund balance - January 1
481,633
5,513,818
8,973,365
113,855
15,082,671
Fund balance - December 31
$739,891
$4,223,799
$6,428,498
$123,316
$11,515,504
106
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.
107
CITY OF LINO LAKES, NIINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2017
Statement 21
Liabilities and Fund Balance
Total
Liabilities:
203
Nonmajor
Accounts payable
201
Economic
$102,167
$1,279
$ $
$
Special
Due to other governments
Program
Development
204 Cable
205 Blue
206 Federal
207 State
208 DUI
Revenue
Salaries payable
Recreation
Authority
TV Fund
Heron Days
Narcotics
Narcotics
Forfeitures
Funds
Assets
5,982
205
102,167
1,279
0
0
0
109,633
Cash and investments
$9,186
$88,456
$186,113
$8,244
$262,269
$23,636
$44,961
$622,865
Prepaid items
1,460
-
-
199
-
-
-
1,659
Long-term notes receivable
-
225,000
-
-
-
-
-
225,000
Total assets
$10,646
$313,456
$186,113
$8,443
$262,269
$23,636
$44,961
$849,524
Liabilities and Fund Balance
Liabilities:
Accounts payable
$2,932
$
$102,167
$1,279
$ $
$
$106,378
Due to other governments
2,802
-
-
2,802
Salaries payable
248
205
-
-
453
Total liabilities
5,982
205
102,167
1,279
0
0
0
109,633
Fund balance:
Nonspendable
1,460
-
-
199
-
-
-
1,659
Restricted
-
225,000
-
6,965
262,269
23,636
44,961
562,831
Committed
3,204
88,251
83,946
-
-
-
-
175,401
Total fund balance
4,664
313,251
83,946
7,164
262,269
23,636
44,961
739,891
Total liabilities and fund balance
$10,646
$313,456
$186,113
$8,443
$262,269
$23,636
$44,961
$849,524
108
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, 2017
Statement 22
109
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
$108,892
$
$66,218
$
$ -
$ -
$ -
$175,110
Fines and forfeits
-
-
433,941
11,024
20,651
465,616
Investment earnings
370
104
1,408
65
2,148
146
295
4,536
Miscellaneous
-
-
22,731
-
5,377
4,938
33,046
Total revenues
109,262
104
67,626
22,796
436,089
16,547
25,884
678,308
Expenditures:
Current:
Public safety
-
-
-
679
6,143
6,587
13,409
Public services
142,696
9,533
27,251
-
-
179,480
Community development
-
607
-
-
-
-
607
Capital outlay:
Public safety
-
81,396
4,242
85,638
Public services
-
-
108,219
-
-
-
-
108,219
Total expenditures
142,696
607
117,752
27,251
82,075
6,143
10,829
387,353
Revenues over (under) expenditures
(33,434)
(503)
(50,126)
(4,455)
354,014
10,404
15,055
290,955
Other financing sources (uses):
Transfers in
88,959
-
-
-
88,959
Transfers out
-
(121,656)
-
-
(121,656)
Total other financing sources (uses)
0
88,959
0
0
(121,656)
0
0
(32,697)
Net change in fund balance
(33,434)
88,456
(50,126)
(4,455)
232,358
10,404
15,055
258,258
Fund balance - January 1
38,098
224,795
134,072
11,619
29,911
13,232
29,906
481,633
Fund balance - December 31
$4,664
$313,251
$83,946
$7,164
$262,269
$23,636
$44,961
$739,891
109
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110
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.
111
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2017
112
334 G.O.
331 G.O.
332 G.O.
Improvement
315
CIP
TIF
and Utility
335 G.O.
Certificates
Bonds
Bonds
Bonds
Bonds
of Indebtedness
of 2006E
of 2007A
of 2010A
of 2012A
Assets
Cash and investments
$184,203
$970,261
$149,951
$849
$317,957
Taxes receivable:
Due from county
2,021
1,489
-
-
567
Delinquent
3,572
3,335
-
-
1,148
Special assessments receivable:
Due from county
-
-
-
-
-
Delinquent
-
-
-
-
-
Deferred
-
-
-
447
16,420
Total assets
$189,796
$975,085
$149,951
$1,296
$336,092
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$ -
$255
$255
$255
$255
Deferred inflows of resources:
Unavailable revenue
3,572
3,335
-
447
17,569
Fund balance:
Restricted
186,224
971,495
149,696
594
318,268
Total liabilities, deferred inflows of
resources, and fund balance
$189,796
$975,085
$149,951
$1,296
$336,092
112
Statement 23
$287,008 $1,035,505
$450,068
339 EDA
$253 $254,460 $312,104
341 G.O.
343 G.O.
Total
336 G.O.
337 G.O.
Lease
340 G.O.
Utility
Tax
Nonmajor
Improvement
Improvement 338 G.O.
Revenue
Capital
Revenue
Abatement
Debt
Bonds
Bonds Bonds
Bonds
Note
Bonds
Bonds
Service
of 2013A
of 2014A of 2015A
of 201513
of 2016A
of 2016A
of 2016C
Funds
$287,008 $1,035,505
$450,068
$257,616
$253 $254,460 $312,104
$4,220,235
- -
863
1,004
- - 840
6,784
- -
1,336
1,554
- - 1,900
12,845
- 231
-
-
- - -
231
- 1,074
-
-
- - -
1,074
452,098 381,287
-
-
- - -
850,252
$739,106 $1,418,097
$452,267
$260,174
$253 $254,460 $314,844
$5,091,421
$255
$255
$255
$255 $ -
$705 $705
$3,450
452,098
382,361
1,336
1,554 -
- 1,900
864,172
286,753 1,035,481 450,676 258,365 253 253,755 312,239 4,223,799
$739,106 $1,418,097 $452,267 $260,174 $253 $254,460 $314,844 $5,091,421
113
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114
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, 2017
Revenues:
General property taxes
Special assessments
Investment earnings
Miscellaneous
Total revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Statement 24
Page 1 of 2
583,000
-
1,755,000
330 G.O.
405,000
23,792
328 G.O.
329 G.O.
Utility
331 G.O.
315
Improvement
Tax Abatement
Revenue
CIP
Certificates of
Bonds
Bonds
Bonds
Bonds
Indebtedness
of 2005B
of 2006C
of 2006D
of 2006E
$633,871
$221
$966
$ -
$462,493
131
4,886
159
21,036
276
2,252
254
1,348
1,019
5,202
583,000
-
1,755,000
70,000
405,000
23,792
-
37,448
1,452
26,657
606,792
0
1,792,448
71,452
431,657
29,462
5,361
(1,789,975)
(49,397)
36,314
-
-
-
71,454
-
-
(36,463)
(67,132)
(209,939)
-
0
(36,463)
(67,132)
(138,485)
0
29,462
(31,102)
(1,857,107)
(187,882)
36,314
Fund balance - January 1
156,762
31,102
1,857,107
187,882
935,181
Fund balance - December 31
$186,224
$0
$0
$0
$971,495
115
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, 2017
Expenditures:
475,481
334 G.O.
-
-
Debt service:
332 G.O.
Improvement
-
336 G.O.
Principal
TIF
and Utility
335 G.O.
Improvement
Interest and fiscal charges
Bonds
Bonds
Bonds
Bonds
Total expenditures
of 2007A
of 2010A
of 2012A
of 2013A
Revenues:
(475,481)
(111,708)
(40,658)
(11,605)
General property taxes
$ -
$ -
$176,943
$ -
Special assessments
-
247
23,071
63,606
Investment earnings
-
-
1,348
1,642
Miscellaneous
-
-
-
-
Total revenues
0
247
201,362
65,248
Expenditures:
475,481
46,000
-
-
Debt service:
-
-
-
-
Principal
400,000
100,000
225,000
60,000
Interest and fiscal charges
75,481
11,955
17,020
16,853
Total expenditures
475,481
111,955
242,020
76,853
Revenues over (under) expenditures
(475,481)
(111,708)
(40,658)
(11,605)
Other financing sources (uses):
Transfers in
475,481
46,000
-
-
Transfers out
-
-
-
-
Total other financing sources (uses)
475,481
46,000
0
0
Net change in fund balance
0
(65,708)
(40,658)
(11,605)
Fund balance - January 1
149,696
66,302
358,926
298,358
Fund balance - December 31
$149,696
$594
$318,268
$286,753
116
Statement 24
Page 2 of 2
370,000
190,000
339 EDA
30,525
341 G.O.
343 G.O.
Total
337 G.O.
67,817
Lease
340 G.O.
Utility
Tax
Nonmajor
Improvement
338 G.O.
Revenue
Capital
Revenue
Abatement
Debt
Bonds
Bonds
Bonds
Note
Bonds
Bonds
Service
of 2014A
of 2015A
of 201513
of 2016A
of 2016A
of 2016C
Funds
$ -
$271,621
$315,855
$ -
$ -
$259,710
$2,121,680
251,212
55
63
-
-
-
364,742
5,758
705
1,079
140
-
518
21,265
-
-
-
37,595
-
-
37,595
256,970
272,381
316,997
37,735
0
260,228
2,545,282
370,000
190,000
165,000
30,525
-
-
4,353,525
32,927
67,817
134,942
7,070
20,269
14,671
488,354
402,927
257,817
299,942
37,595
20,269
14,671
4,841,879
(145,957)
14,564
17,055
140
(20,269)
245,557
(2,296,597)
465,084
195,852
-
-
274,474
67,132
1,595,477
(269,412)
-
(5,953)
-
-
-
(588,899)
195,672
195,852
(5,953)
0
274,474
67,132
1,006,578
49,715
210,416
11,102
140
254,205
312,689
(1,290,019)
985,766
240,260
247,263
113
(450)
(450)
5,513,818
$1,035,481
$450,676
$258,365
$253
$253,755
$312,239
$4,223,799
117
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118
CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds. The City maintained the following nonmajor Capital
Project Funds during the year:
Closed Bond Fund — to account for excess funds from matured bond issues.
Building and Facilities — to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving — to account for proceeds from Equipment Certificates and
funds held to purchase capital equipment.
Office Equipment Revolving — to account for the receipt and use of funds for office
equipment purchases.
Dedicated Parks — to account for the receipts and use of monies collected from park
dedication fees.
Tax Increment Financing unds — 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.
Street Maintenance — to account for money received from levies, assessments, and
developer charges for future street maintenance 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.
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.
119
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.
2040 Comp Plan Update — this fund accounts for the financing sources received and
expenditures incurred to update the City's 2040 Comprehensive Plan.
2018 Street Reconstruction — this fund accounts for street and utility improvements
within the West Shadow Lake Drive and LaMotte neighborhoods.
120
CITY OF LINO LAKES, NIINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2017
Statement 25
Page 1 of 2
121
402 Capital
403 Office
405
411 Tax
417 Tax
301 Closed
401 Building
Equipment
Equipment
Dedicated
Increment
Increment
Bond Fund
and Facilities
Revolving
Revolving
Parks
Financing 1-5
Financing 1-10
Assets
Cash and investments
$
$190,359
$434,623
$45,356
$420,647
$290,444
$190,157
Accounts receivable - net
1,855
-
-
-
-
-
Taxes receivable:
Due from county
5
-
Delinquent
243
Special assessments receivable:
Due from county
-
Delinquent
4,801
Deferred
43,291
-
Interfund loan receivable
616,983
2,317,533
-
-
-
-
-
Total assets
$665,323
$2,509,747
$434,623
$45,356
$420,647
$290,444
$190,157
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable
$ -
$2,500
$9,588
$1,373
$
$
$
Due to other governments
4,579
-
-
-
-
425
481
Contracts payable
-
11,626
Interfund loan payable
-
-
-
-
100,361
Total liabilities
4,579
2,500
9,588
1,373
111,987
425
481
Deferred inflows of resources:
Unavailable revenue
48,334
-
-
-
-
-
-
Fund balance:
Restricted
-
-
-
-
-
290,019
189,676
Assigned
612,410
2,507,247
425,035
43,983
308,660
-
-
Unassigned
-
-
-
-
-
-
-
Total fund balance
612,410
2,507,247
425,035
43,983
308,660
290,019
189,676
Total liabilities, deferred inflows of
resources, and fund balance
$665,323
$2,509,747
$434,623
$45,356
$420,647
$290,444
$190,157
121
CITY OF LINO LAKES, NIINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2017
Assets
Cash and investments
Accounts receivable - net
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
Due to other governments
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
418 Tax 419 Tax 421
Increment Increment 420 MSA Street
Financing 1-11 Financing 1-12 Construction Maintenance
122
$ $ $843,374 $362,495
$0 $0 $843,374 $362,495
$ - $ $ $81,227
2,845 1,044 -
- - 21,026
775,154 - -
777,999 1,044 0 102,253
843,374 260,242
(777,999) (1,044) - -
(777,999) (1,044) 843,374 260,242
$0 $0 $843,374 $362,495
Statement 25
Page 2 of 2
$995,093 $706,274 $105,798 $92,081 $133,592 $36,758 $ $4,847,051
- - - - - - 1,855
5
243
567 567
3,276 - 8,077
203,449 84,742 331,482
- - - - - - 2,934,516
$1,202,385 $791,016 $105,798 $92,081 $133,592 $36,758 $0 $8,123,796
$15,428 $ $2,349 $1,888 $ $33,132 $ $147,485
- - - - 9,374
2,610 90,193 125,455
- - - - 197,668 1,073,183
15,428 0 4,959 92,081 0 33,132 197,668 1,355,497
206,725 84,742 - - - - 339,801
- - - - - 479,695
980,232 706,274 100,839 133,592 3,626 6,925,514
- - - - - (197,668) (976,711)
980,232 706,274 100,839 0 133,592 3,626 (197,668) 6,428,498
$1,202,385 $791,016 $105,798 $92,081 $133,592 $36,758 $0 $8,123,796
123
Total
4842040
Nonmajor
422 Surface 424 Surface 478 Fire 481 Birch St/ Comp
4852018 Capital
Water 423 Street Water House # 2 Centerville Rd Plan
Street Project
Management Reconstruction Maintenance Construction Improvements Update
Reconstruction Funds
$995,093 $706,274 $105,798 $92,081 $133,592 $36,758 $ $4,847,051
- - - - - - 1,855
5
243
567 567
3,276 - 8,077
203,449 84,742 331,482
- - - - - - 2,934,516
$1,202,385 $791,016 $105,798 $92,081 $133,592 $36,758 $0 $8,123,796
$15,428 $ $2,349 $1,888 $ $33,132 $ $147,485
- - - - 9,374
2,610 90,193 125,455
- - - - 197,668 1,073,183
15,428 0 4,959 92,081 0 33,132 197,668 1,355,497
206,725 84,742 - - - - 339,801
- - - - - 479,695
980,232 706,274 100,839 133,592 3,626 6,925,514
- - - - - (197,668) (976,711)
980,232 706,274 100,839 0 133,592 3,626 (197,668) 6,428,498
$1,202,385 $791,016 $105,798 $92,081 $133,592 $36,758 $0 $8,123,796
123
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, 2017
Expenditures:
Current:
General government
Public services
Community development
Capital outlay:
General government
Public safety
Public services
Debt service:
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Issuance of debt
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
5,539 1,439
217,986 - 10,909
- 805,140 3,053 -
305,912 1,710 339,636
- - - - 5,836
5,539 219,425 1,111,052 15,672 345,472
14,050 (31,173) (1,086,573) (15,265) 20,881
36,464
402 Capital
403 Office
405
301 Closed
401 Building
Equipment
Equipment
Dedicated
311,000
Bond Fund
and Facilities
Revolving
Revolving
Parks
Revenues:
-
(281,253)
0
414,328
25,000
General property taxes
$33
$
$
$
$
Tax increment
(31,173)
(672,245)
9,735
56,624
879,613
Intergovernmental
-
34,248
252,036
Special assessments
14,775
$612,410
$2,507,247
$425,035
Charges for services
-
186,278
361,788
Investment earnings
4,781
1,974
5,244
407
4,227
Miscellaneous
-
-
19,235
-
338
Total revenues
19,589
188,252
24,479
407
366,353
Expenditures:
Current:
General government
Public services
Community development
Capital outlay:
General government
Public safety
Public services
Debt service:
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Issuance of debt
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
5,539 1,439
217,986 - 10,909
- 805,140 3,053 -
305,912 1,710 339,636
- - - - 5,836
5,539 219,425 1,111,052 15,672 345,472
14,050 (31,173) (1,086,573) (15,265) 20,881
36,464
25,000
50,000
(317,717)
-
-
(14,257)
311,000
103,328
-
-
(281,253)
0
414,328
25,000
35,743
(267,203)
(31,173)
(672,245)
9,735
56,624
879,613
2,538,420
1,097,280
34,248
252,036
$612,410
$2,507,247
$425,035
$43,983
$308,660
124
Statement 26
Page 1 of 2
411 Tax
Increment
Financing 1-5
417 Tax
Increment
Financing 1-10
418 Tax
Increment
Financing 1-11
419 Tax
Increment
Financing 1-12
420 MSA
Construction
421
Street
Maintenance
422 Surface
Water
Management
423 Street
Reconstruction
568
1,256
3,016
1,044
0
512,091
72,496
0
39,653
151,542
120,957
(1,044)
-
(463,736)
207,239
19,604
-
-
-
$706,274
397,433
-
-
-
-
273,219
14,192
-
-
-
45,099
-
-
2,036
1,804
18,822
3,256
6,516
5,412
-
-
-
16,487
-
-
-
41,689
153,346
120,957
0
432,742
48,355
279,735
19,604
- - - 512,091 48,147
568 1,256 3,016 1,044 - -
24,349
125
(151,542)
(120,957)
(1,601,538)
540,800
-
67,927
(30,355)
0
568
1,256
3,016
1,044
0
512,091
72,496
0
41,121
152,090
117,941
(1,044)
432,742
(463,736)
207,239
19,604
125
(151,542)
(120,957)
(1,601,538)
540,800
-
67,927
(30,355)
0
(151,542)
(120,957)
0 (1,601,538)
540,800
37,572
0
41,121
248,898
548
189,128
(3,016)
(774,983)
(1,044) (1,168,796)
2,012,170
77,064
183,178
244,811
735,421
19,604
686,670
$290,019
$189,676
($777,999)
($1,044) $843,374
$260,242
$980,232
$706,274
125
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, 2017
Expenditures:
Current:
General government
Public services
Community development
Capital outlay:
General government
Public safety
Public services
Debt service:
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Issuance of debt
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
106,608 -
1,851 4,339 13,813 199
424 Surface
477
478 Fire
479
480
1,851
Water
21st Ave
House # 2
Well #6
Northpointe
Maintenance
Extension
Construction
Construction
Improvements
Revenues:
2,356
General property taxes
$
$
$
$
$
Tax increment
(199,634)
(2,324)
22,882
322,289
Intergovernmental
$100,839
$0
Special assessments
$0
$0
Charges for services
Investment earnings
1,175
710
222
2,555
Miscellaneous
-
-
-
Total revenues
1,175
0
710
222
2,555
Expenditures:
Current:
General government
Public services
Community development
Capital outlay:
General government
Public safety
Public services
Debt service:
Interest and fiscal charges
Total expenditures
Revenues over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Issuance of debt
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance - January 1
Fund balance - December 31
106,608 -
1,851 4,339 13,813 199
125,000
269,412
5,953
106,608
1,851
4,339
13,813
199
(105,433)
(1,851)
(3,629)
(13,591)
2,356
125,000
269,412
5,953
-
(67,927)
-
(9,291)
(324,645)
125,000
201,485
5,953
(9,291)
(324,645)
19,567
199,634
2,324
(22,882)
(322,289)
81,272
(199,634)
(2,324)
22,882
322,289
$100,839
$0
$0
$0
$0
126
Statement 26
Page 2 of 2
127
483 Blackduck/
4842040
Total
481 Birch St/
4822015
Aqua Lane
Comp
4852018
Nonmajor
Centerville Rd
Street
Watermain
Plan
Street
Capital
Improvements
Reconstruction
Extension
Update
Reconstruction
Project Funds
$
$
$
$
$
$33
312,152
16,000
413,433
-
302,186
593,165
1,042
1,279
2,952
64,414
-
-
-
-
36,060
1,042
1,279
2,952
16,000
0
1,721,443
-
-
-
-
-
6,978
166,386
197,668
1,030,900
-
-
5,884
228,895
-
808,193
878
652
66,626
759,965
-
-
-
5,836
878
652
66,626
166,386
197,668
2,846,651
164
627
(63,674)
(150,386)
(197,668)
(1,125,208)
154,012
1,274,568
(195,852)
(274,474)
-
(3,108,555)
311,000
-
-
103,328
0
(195,852)
(274,474)
154,012
0
(1,419,659)
164
(195,225)
(338,148)
3,626
(197,668)
(2,544,867)
133,428
195,225
338,148
-
8,973,365
$133,592
$0
$0
$3,626
($197,668)
$6,428,498
127
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2017
Revenues:
Charges for services
Investment earnings
Total revenues
Expenditures:
Public services:
Current:
Personal services
Supplies
Other services and charges
Contractual services
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
128
Statement 27
57,325 57,325 56,010
1,315
Variance
3,349
- - 8,836
with Final
22,000 22,000 45,039
(23,039)
Budget -
2017 Actual
Positive
Budgeted Amounts
Amounts
(Negative)
Original Final
$127,235 $127,235
$108,892
($18,343)
- -
370
370
127,235 127,235
109,262
(17,973)
57,325 57,325 56,010
1,315
36,160 36,160 32,811
3,349
- - 8,836
(8,836)
22,000 22,000 45,039
(23,039)
11,050 11,050 (33,434) (44,484)
(10,000) (10,000)
$1,050 $1,050
(10,000)
(33,434) ($34,484)
38,098
$4,664
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For The Year Ended December 31, 2017
Statement 28
Balance
Balance
January 1,
December 31,
2017 Additions
Deletions 2017
Assets:
Cash and investments $825,373 $1,070,581
$176,443 $1,719,511
Liabilities:
Deposits payable $825,373 $1,070,581 $176,443 $1,719,511
129
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130
STATISTICAL SECTION (UNAUDITED)
131
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132
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.
133
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
Governmental activities:
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities:
Net investment in capital assets
Unrestricted
2008
2009
2010
2011
$40,418,228
$28,472,865
$23,400,453
$22,562,217
$24,600,103
9,870,676
9,414,474
8,428,025
11,598,803
10,790,359
15,926,322
16,738,885
13,463,210
$49,133,900
$30,372,670
9,028,778
$48,741,249
$30,071,840
10,112,207
$47,729,127
$29,648,461
10,728,626
$49,662,116
$29,216,866
11,201,362
Total business -type activities net position
$39,401,448
$40,184,047
$40,377,087
$40,418,228
Primary government:
Net investment in capital assets
$58,845,535
$53,472,293
$52,210,678
$53,816,969
Restricted
9,870,676
9,414,474
8,428,025
11,598,803
Unrestricted
19,819,137
26,038,529
27,467,511
24,664,572
Total primary government net position
$88,535,348
$88,925,296
$88,106,214
$90,080,344
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.
GASB 75 was implemented in 2017. Net position was restated for 2016 to reflect the reporting of the OPEB liability
and OPEB related deferred inflows of resources. Net position for years prior to 2016 was not restated.
134
Table 1
2012
2013
2014
2015
2016
2017
$22,166,342
$22,241,821
$19,540,807
$18,230,746
$18,597,344
$22,868,259
11,595,112
11,000,033
8,666,357
8,635,293
13,342,852
11,730,147
17,639,038
16,849,636
20,527,704
13,888,120
10,187,254
12,017,212
$51,400,492
$50,091,490
$48,734,868
$40,754,159
$42,127,450
$46,615,618
$28,798,095
$28,423,284
$27,556,022
$29,127,829
$31,860,610
$31,831,950
12,102,013
12,999,182
13,888,278
14,672,630
13,863,447
14, 846,045
$40,900,108
$41,422,466
$41,444,300
$43,800,459
$45,724,057
$46,677,995
$50,964,437
$50,665,105
$47,096,829
$47,358,575
$50,457,954
$54,700,209
11,595,112
11,000,033
8,666,357
8,635,293
13,342,852
11,730,147
29,741,051
29,848,818
34,415,982
28,560,750
24,050,701
26,863,257
$92,300,600
$91,513,956
$90,179,168
$84,554,618
$87,851,507
$93,293,613
135
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
2008
2009
2010
2011
General government
$2,323,358
$2,201,439
$1,987,415
$1,990,137
4,051,162
4,299,366
3,971,261
4,019,101
8,528,574
5,341,113
5,092,970
9,329,451
184,624
215,607
197,571
139,544
1,114,158
1,005,997
1,105,254
617,747
1,045,781
928,668
1,064,172
927,535
17,247,657
13,992,190
13,418,643
17,023,515
1,020,770
1,089, 569
1,045,901
966,643
1,287,943
1,432,107
1,466,847
1,638,063
2,308,713
2,521,676
2,512,748
2,604,706
$19,556,370
$16,513,866
$15,931,391
$19,628,221
Governmental activities:
$98,403
Charges for services:
691,005
General government
$79,844
Public safety
1,296,418
Public services
600,325
Conservation of natural resources
3,660
Community development
11,623
Operating grants and contributions
693,065
Capital grants and contributions
1,094,789
Total governmental activities program revenues
3,779,724
Business -type activities:
Charges for services:
Water
Sewer
Operating grants and contributions
Capital grants and contributions
Total business -type activities
Total primary government program revenues
$101,741
$98,403
725,747
691,005
594,168
605,207
3,858
4,153
8,667
14,148
682,797
617,450
1,357,015
1,388,984
3,473,993
3,419,350
$103,687
713,985
593,263
4,392
5,138
593,798
7,347,613
9,361,876
1,058,493
1,365,817
1,087,013
1,090,104
1,472,093
1,502,164
1,498,218
1,494,188
-
62,710
-
-
10,117
8,769
8,709
1,462
2,540,703
2,939,460
2,593,940
2,585,754
$6,320,427
$6,413,453
$6,013,290
$11,947,630
136
Table 2
Page 1 of 2
2012
2013
2014
2015
2016
2017
642,745
697,584
763,470
199,498
$1,883,961
$1,566,388
$2,036,550
$2,016,351
$2,456,864
$2,395,633
4,046,415
3,950,197
4,107,759
5,135,865
6,567,523
5,166,538
6,795,150
5,376,671
5,880,030
7,971,712
6,228,893
5,492,395
184,051
141,204
159,649
186,111
216,905
200,016
430,121
404,726
407,448
432,268
454,144
459,455
837,755
951,842
618,680
632,876
831,529
518,897
14,177,453
12,391,028
13,210,116
16,375,183
16,755,858
14,232,934
949,121
927,800
965,641
1,394,897
1,367,693
1,245,249
1,527,637
1,584,395
1,628,258
2,089,842
1,850,962
1,901,821
2,476,758
2,512,195
2,593,899
3,484,739
3,218,655
3,147,070
$16,654,211
$14,903,223
$15,804,015
$19,859,922
$19,974,513
$17,380,004
$129,151
$93,118
$103,072
$818,468
$520,231
$550,117
642,745
697,584
763,470
199,498
1,359,426
2,249,152
668,128
632,002
621,221
603,866
865,327
801,633
19,297
1,347
1,882
-
-
-
16,940
28,118
39,395
-
-
-
450,179
527,368
840,676
526,107
722,858
1,106,014
5,125,693
941,960
335,733
1,176,732
5,046,307
4,141,383
7,052,133
2,921,497
2,705,449
3,324,671
8,514,149
8,848,299
1,371,809
1,208,742
965,425
1,014,836
1,094,897
1,150,834
1,505,781
1,516,397
1,564,099
1,621,633
1,659,322
1,698,963
-
-
263,024
263,024
-
-
20,018
883
1,035
3,035,031
1,543,947
836,029
2,897,608
2,726,022
2,793,583
5,934,524
4,298,166
3,685,826
$9,949,741
$5,647,519
$5,499,032
$9,259,195
$12,812,315
$12,534,125
137
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
Transfers
Total business -type activities
Total primary government
2008 2009 2010 2011
($13,467,933) ($10,518,197) ($9,999,293) ($7,661,639)
231,990 417,784 81,192 (18,952)
(13,235,943) (10,100,413) (9,918,101) (7,680,591)
9,424,697
9,808,324
8,764,183
8,768,805
129,607
11,321
4,389
4,072
576,071
429,325
225,677
251,250
12,512
12,644
-
37,579
(994,202)
(136,068)
(7,078)
66,122
9,148,685
10,125,546
8,987,171
9,127,828
274,498
228,747
104,770
126,215
994,202
136,068
7,078
(66,122)
1,268,700
364,815
111,848
60,093
$10,417,385
$10,490,361
$9,099,019
$9,187,921
Change in net position:
Governmental activities ($4,319,248) ($392,651) ($1,012,122) $1,466,189
Business -type activities 1,500,690 782,599 193,040 41,141
Total primary government change in net position ($2,818,558) $389,948 ($819,082) $1,507,330
GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
GASB 75 was implemented in 2017. OPEB expense for years prior to 2017 was not restated.
138
Table 2
Page 2 of 2
2012 2013 2014 2015 2016 2017
($7,125,320) ($9,469,531) ($10,504,667) ($13,050,512) ($8,241,709) ($5,384,635)
420,850 213,827 199,684 2,449,785 1,079,511 538,756
(6,704,470) (9,255,704) (10,304,983) (10,600,727) (7,162,198) (4,845,879)
8,610,709
8,563,595
8,806,886
9,243,236
9,343,500
9,753,971
4,941
4,442
4,443
5,363
91,385
181,712
202,828
(54,204)
265,695
112,961
210,142
207,792
4,175
-
1,727
17,836
66,255
38,022
-
-
-
-
1,333,166
-
41,043
(353,304)
69,294
66,834
(914,414)
(308,694)
8,863,696
8,160,529
9,148,045
9,446,230
10,130,034
9,872,803
102,073
(44,773)
154,468
51,167
107,119
106,488
(41,043)
353,304
(69,294)
(66,834)
914,414
308,694
61,030
308,531
85,174
(15,667)
1,021,533
415,182
$8,924,726
$8,469,060
$9,233,219
$9,430,563
$11,151,567
$10,287,985
$1,738,376
($1,309,002)
($1,356,622)
($3,604,282)
$1,888,325
$4,488,168
481,880
522,358
284,858
2,434,118
2,101,044
953,938
$2,220,256
($786,644)
($1,071,764)
($1,170,164)
$3,989,369
$5,442,106
139
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
2008 2009 2010 2011
$190,825 $196,568 $181,471 $ -
5,393,316 5,191,396 5,445,334 -
- - - 165,079
5,440,101
$5,584,141 $5,387,964 $5,626,805 $5,605,180
$226,973
$227,176
$227,342
$ -
812,400
736,772
658,875
-
3,405,272
3,457,349
2,986,102
-
100,000
100,000
100,000
-
106,573
93,956
110,471
-
5,927,411
11,611,835
12,537,841
-
-
(558,443)
(1,093,765)
-
22,224
15,824
12,676
-
-
-
-
906,010
-
-
-
2,658,010
-
-
-
110,568
-
-
-
10,808,268
-
-
-
(3,154,496)
$10,600,853
$15,684,469
$15,539,542
$11,328,360
$16,184,994
$21,072,433
$21,166,347
$16,933,540
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.
140
Table 3
2012 2013 2014 2015 2016 2017
180,786 176,797 253,471 220,677 225,114 243,317
5,053,031 5,209,286 5,053,064 5,725,736 6,031,077 6,573,608
$5,233,817 $5,386,083 $5,306,535 $5,946,413 $6,256,191 $6,816,925
823,113
101,710
101,302
101,177
101,220
101,659
3,041,524
3,651,550
2,830,526
2,637,638
6,502,424
5,289,641
115,196
121,075
152,078
163,239
170,950
175,401
15,573,179
15,710,702
18,027,773
15,022,852
15,778,480
14,581,669
(3,262,728)
(3,393,547)
(375,851)
(3,815,304)
(978,496)
(2,909,173)
$16,290,284
$16,191,490
$20,735,828
$14,109,602
$21,574,578
$17,239,197
$21,524,101
$21,577,573
$26,042,363
$20,056,015
$27,830,769
$24,056,122
141
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
Revenues:
Property taxes
Licenses and permits
Intergovernmental
Special assessments
Charges for services
Fines and forfeits
Investment earnings
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
Issuance of debt
Premium on bonds issued
Payment to refunded bond escrow agent
Loan payable reapportionment
Transfers in
Transfers out
Total other financing sources (uses)
Special item - withdrawal from fire district
2008
2009
2010
2011
3,806,389
4,122,352
$9,095,085
$9,561,570
$8,647,488
$8,655,971
802,135
307,714
330,138
322,030
1,004,476
1,259,016
1,176,863
1,331,914
950,188
968,995
851,270
904,522
872,534
778,163
780,044
812,604
133,531
111,807
127,203
154,020
576,071
429,325
225,677
251,244
516,415
513,306
502,992
460,710
13,950,435
13,929,896
12,641,675
12,893,015
2,058,267
1,918,246
1,730,390
1,773,515
3,806,389
4,122,352
3,798,106
3,791,329
6,575,568
3,071,646
2,848,232
3,251,923
183,024
209,466
185,232
134,122
1,113,232
1,005,095
1,098,682
624,286
585,875
501,806
282,938
4,209,593
1,749,000
1,908,000
1,866,000
2,030,000
1,074,052
994,809
1,042,883
983,129
16,797,897
12,852,463
17,145,407
13,731,420
(3,194,972)
198,476
(210,788)
(3,904,882)
13,750
35,700
20,600
50,953
209,000
4,596,000
1,170,000
120,000
-
11,141
10,980
-
-
-
(965,000)
-
-
-
-
(565,000)
4,763,391
1,413,985
1,195,747
2,971,715
(4,796,159)
(1,367,863)
(1,127,625)
(2,905,593)
189,982
4,688,963
304,702
(327,925)
Net change in fund balance ($3,004,990) $4,887,439
Debt service as a percentage of noncapital expenditures 17.0% 21.9%
Debt service as a percentage of total expenditures 16.5% 21.1%
142
$93,914 ($4,232,807)
23.1% 23.9%
22.6% 17.9%
Table 4
2012
2013
2014
2015
2016
2017
3,861,265
3,744,957
3,845,732
11,895,482
$8,560,340
$8,475,214
$8,612,011
$8,950,507
$9,369,090
$9,772,741
319,172
431,654
407,681
551,202
895,581
1,447,571
5,267,570
500,963
823,025
679,627
706,944
1,080,953
816,998
2,130,519
1,278,202
703,141
4,400,635
2,283,974
744,633
717,300
731,640
696,501
1,293,556
1,327,781
155,956
119,079
149,653
127,803
251,653
613,593
202,825
(53,466)
265,794
112,915
210,142
207,792
414,088
384,749
767,477
766,072
417,448
410,640
16,481,582
12,706,012
13,035,483
12,587,768
17,545,049
17,145,045
1,619,215
1,569,722
1,692,175
1,643,966
1,845,667
1,952,669
3,861,265
3,744,957
3,845,732
11,895,482
4,333,080
4,360,517
4,396,406
3,956,766
4,156,497
4,779,696
3,203,837
3,414,412
176,318
134,127
149,292
191,038
201,635
183,392
435,154
418,533
402,750
422,935
425,402
433,144
616,931
291,135
674,488
1,566,057
3,044,615
2,152,848
2,145,000
2,214,000
3,664,000
2,802,511
2,769,525
8,058,525
831,875
774,172
696,780
542,166
816,362
640,029
47,054
17,137
-
62,831
98,906
-
14,129,218
13,120,549
15,281,714
23,906,682
16,739,029
21,195,536
2,352,364
(414,537)
(2,246,231)
(11,318,914)
806,020
(4,050,491)
4,175
16,727
1,727
54,522
72,182
103,328
2,165,000
808,000
3,140,000
8,606,250
5,464,000
311,000
-
6,558
-
114,960
41,497
-
-
(435,000)
-
-
-
-
1,979,457
1,722,541
2,608,534
3,392,971
3,521,180
6,984,443
(1,910,435)
(1,650,817)
(2,539,240)
(3,336,137)
(3,241,959)
(7,122,927)
2,238,197
468,009
3,211,021
8,832,566
5,856,900
275,844
$4,590,561
22.0%
21.1%
$53,472 $964,790 ($2,486,348)
1,111,834
$7,774,754 ($3,774,647)
23.3% 29.9% 15.0% 26.2% 45.4%
22.8% 28.5% 14.0% 21.4% 41.0%
143
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
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
2017
16,480,328
2,767,099
396,378
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
144
Estimated
Total Taxable
Taxable
Assessed
Total Direct
Market
Value
Tax Rate
Value
$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
19,643,805
45.14
1,808,417,118
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
144
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
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
2017
35.105
10.035
45.140
29.097
36.841
5.810
71.748
116.888
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
145
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146
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Nine Years Ago
2017
Source: Anoka County
147
Table 7
2008
Percentage
of Total City
Taxable
Net Tax
Rank Capacity
1 1.26%
3 0.65%
5
8
6
4
2
7
9
10
0.60%
0.45%
0.59%
0.64%
1.20%
0.55%
0.44%
0.43%
6.81%
Percentage
of Total City
Taxable
Taxable
Taxable
Net Tax
Net Tax
Net Tax
Taxpayer
Capacity
Rank
Capacity
Capacity
Target Corporation
$214,636
1
1.09%
$278,554
Northern States Power Co
200,922
2
1.02%
143,459
WI MN AB BIYNAH LLC
196,198
3
1.00%
-
Moline Concrete Products
113,360
4
0.58%
131,936
Gargaro Properties LLC
111,084
5
0.57%
100,390
Taylor Corporation
94,804
6
0.48%
129,568
Kohl's Department Store
87,250
7
0.44%
140,306
Minnegasco Inc
81,806
8
0.42%
-
Marmon/Keystone Corp
78,202
9
0.40%
-
Lino Lakes Assisted Living LLC
73,803
10
0.38%
-
Lino Lakes Realty LLC
-
-
265,694
Legacy Holdings LLC
-
-
122,134
Lino Lakes Business Center LLC
-
-
96,204
F&G Incorporated
-
-
94,476
Total
$1,252,065
6.38%
$1,502,721
Source: Anoka County
147
Table 7
2008
Percentage
of Total City
Taxable
Net Tax
Rank Capacity
1 1.26%
3 0.65%
5
8
6
4
2
7
9
10
0.60%
0.45%
0.59%
0.64%
1.20%
0.55%
0.44%
0.43%
6.81%
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
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%
2017
7,360,431
2,131,424
9,491,855
9,439,688
99.5%
Current year levies and collections include State levy related credits, but do not include tax increment levies and collections.
148
Total Collections to Date
Collections in
Subsequent
Years Amount
Percentage
of
Levy
Outstanding
Delinquent
Taxes
Table 8
Percentage
of Levy
Outstanding
$129,219
$8,711,193
98.2%
$155,763
1.8%
194,540
9,177,296
99.3%
67,042
0.7%
182,890
8,583,329
98.7%
112,085
1.3%
126,993
8,613,838
99.5%
46,162
0.5%
77,752
8,173,254
99.3%
54,005
0.7%
68,948
8,163,859
99.4%
51,769
0.6%
40,447
8,270,433
99.7%
25,611
0.3%
25,712
8,656,542
99.7%
29,530
0.3%
9,770
9,032,734
99.7%
25,694
0.3%
-
9,439,688
99.5%
52,167
0.5%
149
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
General
Fiscal Obligation
Year Bonds
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
2017
14,837,768
Governmental Activities
Special
Assessments
Payable
$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
4,905,000
Business -Type
Activities
Other
Long -Term
Debt
General
Obligation
Revenue
Bonds
$ -
$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
-
233,475
-
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 2017 from the Bureau of Economic Analysis Report
150
Total
Primary
Government
Percentage
of Assessed
Market Value
Percentage
of Personal
Income
Per
Capita
Table 9
$24,079,000
1.19%
3.08%
$1,205
26,407,000
1.24%
3.44%
1,301
24,371,000
1.22%
3.13%
1,206
21,506,000
1.19%
2.59%
1,049
21,121,000
1.29%
2.46%
1,024
19,280,000
1.27%
2.19%
925
18,756,000
1.24%
2.04%
888
24,717,291
1.46%
2.64%
1,205
27,741,081
1.63%
2.84%
1,334
19,976,243
1.10%
(1)
946
151
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
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
2017
14,837,768
4,905,000
19,742,768
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.
152
Per
Capita (Total)
Less: Amounts
Available in Debt
Service Funds
Net
Bonded Debt
Percentage
of Assessed
Market Value
Table 10
Per
Capita (Net)
$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
1,256
8,420,263
17,711,818
1.04%
851
935
5,171,905
14,570,863
0.86%
690
153
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2017
Table 11
City of Lino Lakes direct debt $19,976,243 100% 19,976,243
Total direct and overlapping debt $93,537,255
*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.
154
Estimated
Estimated
Share of
Debt
Percentage
Overlapping
Outstanding
Applicable*
Debt
Overlapping debt:
Anoka County
$110,265,000
6.2%
$6,816,325
ISD 12
95,953,685
44.2%
42,382,122
ISD 624
88,915,000
3.2%
2,808,741
ISD 831
159,565,000
7.2%
11,467,589
Metropolitan Council
1,484,038,432
0.6%
8,469,233
Rice Creek Watershed District
343,818
33.2%
114,215
Anoka County Railroad Authority
24,310,000
6.2%
1,502,787
Total overlapping
73,561,012
City of Lino Lakes direct debt $19,976,243 100% 19,976,243
Total direct and overlapping debt $93,537,255
*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.
154
CITY OF LINO LAKES, MINNESOTA
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2017
Market value $1,808,417,118
Applicable percentage 3%
Debt limit 54,252,514
Debt applicable to limit:
Total bonded debt 19,976,243
Less:
Special assessment bonds (4,905,000)
Tax abatement bonds (1,600,000)
Tax increment bonds (1,625,000)
Utility revenue bonds (1,420,000)
10,426,243
Legal debt margin $43,826,271
Legal Debt Margin Calculation for Fiscal Years 2008 Through 2017
Table 12
155
Net Debt
Net Debt
Legal
Amount of Debt
Applicable
Fiscal
Debt
Applicable to
Debt
Applicable to
to Limit
Year
Population
Limit
Limit
Margin
Debt Limit
Per Capita
2008
19,987
$60,658,830
$3,804,000
$56,854,830
6.27%
$190
2009
20,305
64,036,746
3,642,000
60,394,746
5.69%
179
2010
20,216
60,622,086
3,386,000
57,236,086
5.59%
167
2011
20,505
54,123,645
2,961,000
51,162,645
5.47%
144
2012
20,625
49,213,676
4,591,000
44,622,676
9.33%
223
2013
20,833
45,595,717
4,280,000
41,315,717
9.39%
205
2014
21,129
45,297,635
4,191,000
41,106,635
9.25%
198
2015
20,519
50,830,982
11,941,250
38,889,732
23.49%
582
2016
20,803
50,978,666
10,122,081
40,856,585
19.86%
487
2017
21,117
54,252,514
10,426,243
43,826,271
19.22%
494
155
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)
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
20,803
975,682
2017
21,117
Not available
Table 13
(2)
Per
Capita
(3)
(4)
Personal
School
Unemployment
Income
Enrollment
Rate
$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%
46,901
6,473
3.9%
Not available
6,500
3.1%
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 (audit report).
(4) Information from MN Department of Employment and Economic Development. Anoka County statistics used as local
information is unavailable.
156
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
Employer
Employees
2008
State of Minnesota Corrections
460
ISD 12 - Centennial Schools
391
Target Corporation
260
Curtis 1000 (AdGraphics/Taylor Corp
200
Kohls
123
Molin Concrete Products
120
YMCA
120
Distribution Alternatives
120
Rehbein Transit, Inc.
100
Anoka County Juvenile Center
86
Customer Manufacturing
Synovis Interventional Systems
Summit Fire Protection
Total 1,980
Table 14
2017
2008
Percentage
Percentage
of Total City
of Total City
Rank
Employment�1)
Employees
Rank
Employment(l)
1
23.2%
600
1
33.1%
2
19.7%
-
-
-
3
13.1%
240
3
13.2%
4
10.1%
260
2
-
5
6.2%
160
5
8.8%
6
6.1%
135
6
7.4%
7
6.1%
130
7
7.2%
8
6.1%
-
-
-
9
5.1%
-
-
-
10
4.3%
-
-
-
-
-
160
4
8.8%
-
-
70
8
3.9%
-
-
60
9
3.3%
1,815
(')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 2008 is not available.
Source: City of Lino Lakes Official Statements and employer surveys
157
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,
2008 2009 2010 2011
General Government:
Administration
5.00
5.00
4.00
3.50
Seniors
0.63
0.63
0.63
-
Finance
3.50
3.50
3.00
3.00
Economic Development
1.00
1.00
1.00
1.00
Planning
2.00
2.00
2.00
1.00
Community Development
2.75
2.75
2.25
2.00
Building
1.00
1.00
1.00
-
Other
1.40
1.40
1.40
0.70
Total General Government
17.28
17.28
15.28
11.20
Public Safety:
Sworn Officers
27.00
27.00
27.00
25.00
Civilians
4.75
4.75
4.25
4.00
Fire
-
-
-
-
Building Inspection
4.25
4.25
2.75
2.50
Total Public Safety
36.00
36.00
34.00
31.50
Public Works:
Streets
7.35
7.35
6.85
7.00
Other
1.15
1.15
1.15
1.00
Total Public Works
8.50
8.50
8.00
8.00
Parks, Recreation and Forestry
9.80
9.80
9.30
9.00
Water
2.15
2.15
2.15
2.15
Sewer
2.15
2.15
2.15
2.15
Total
75.88
75.88
70.88
64.00
Source: City Finance Office
158
Table 15
159
Full -Time -Equivalent Employees as of December 31,
2012
2013
2014
2015
2016
2017
3.50
3.50
3.50
3.50
4.00
4.00
3.00
3.00
3.00
3.00
3.50
3.50
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
0.65
0.65
11.20
10.20
10.20
10.20
11.15
11.15
25.00
25.00
25.00
26.00
27.00
27.00
3.00
3.00
4.00
4.00
4.50
4.50
-
-
1.00
1.00
1.50
1.50
2.50
2.50
2.00
2.00
2.50
2.50
30.50
30.50
32.00
33.00
35.50
35.50
7.00
7.00
7.00
7.00
6.50
6.65
1.00
1.00
1.00
1.00
1.50
1.50
8.00
8.00
8.00
8.00
8.00
8.15
9.00
8.70
8.70
8.70
7.75
7.90
2.15
2.30
2.30
2.30
2.30
2.70
2.15
2.30
2.30
2.30
2.30
2.70
63.00
62.00
63.50
64.50
67.00
68.10
159
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
General Government:
Elections
Registered voters
Number of votes cast
Voter participation (registered)
Public Safety:
Police:
Calls for Service
Traffic Citations & Warnings
Part I Crime Rate
Part II Crime Rate
Police:
Case Numbers Generated
Avg Response Time (Emergency & Non -Emergency)
Part I Crime Offenses
Part II Crime Offenses
Clearance Rate
Fire:
Fire Call Load
Fire Property Loss
Fire Property Saved
Fire Inspections
Inspections:
Building Permits (1) (2)
Value of Building Permits
Public Works:
General Maintenance (hours)
Street Mantenance (hours)
Fleet Maintenance (hours)
Snow Plowing/Sanding (hours)
Culture and Recreation:
Parks
Park Maintenance (hours)
Utilities:
Water Maintenance (hours)
Sanitary Sewer Maintenance (hours)
2008 2009 2010 2011
2
1
2
1
12,723
11,805
12,284
11,705
11,051
4,354
8,545
4,314
86.9%
36.9%
69.6%
36.9%
6,871
6,353
6,398
6,384
3,252
3,187
2,743
2,604
1,461
1,075
982
1,117
3,767
3,151
2,911
2,911
5,041
1,535
509
452
$15,852,780
$9,586,160
$11,295,493
$11,192,264
6,129
5,870
4,945
7,416
3,851
3,267
3,099
4,352
5,043
4,782
4,850
4,214
1,353
950
1,638
1,534
11,136
12,406
9,257
9,813
5,716
5,041
3,560
3,568
3,760
3,486
3,531
3,557
(1) 4,337 and 581 repair permits issued in 2008 - 2009, respectively, due to storm damage.
(2) Increase in permits issued - June 2017 storm damage.
(3) The Public Safety Department modified the metrics maintained for business purposes in 2016.
Those changes are reflected in the 2016 and 2017 Operating Indicators.
Source: Various City Departments
160
Table 16
2012
2013
2014
2015
2016
2017
2
1
2
1
2
1
13,478
12,020
12,610
12,143
13,636
12,624
11,546
1,575
7,854
4,085
11,562
2,165
85.7%
13.1%
62.3%
33.6%
84.8%
17.1%
6,344
6,210
6,281
6,210
6,210
(3)
2,694
2,597
2,296
2,199
2,199
(3)
983
918
631
1,226
1,091
(3)
2,396
2,144
1,836
2,395
3,635
(3)
16,321
18,199
5:26 minutes
4:42 minutes
224
176
746
808
73%
82%
269
316
$694,000
$325,100
$10,511,300
$6,342,100
53
117
459
490
431
654
761
5,422
$10,751,626
$17,683,665
$13,535,514
$26,570,593
$53,390,619
$50,984,047
6,939
3,994
5,200
7,839
5,534
6,313
5,926
5,740
3,840
3,347
4,053
3,765
3,945
4,548
4,746
4,322
4,437
3,986
594
1,639
2,141
754
960
928
9,739
8,480
8,537
8,332
9,698
8,576
3,585
3,119
3,189
3,240
3,539
3,278
3,517
3,109
3,178
3,240
3,539
3,278
161
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17
Last Ten Fiscal Years
Source: Various City Departments
162
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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
2
2
2
Fire Trucks
5
5
5
5
5
5
5
7
7
8
Public Works:
Lights
673
673
673
673
673
673
673
673
815
838
Vehicles
29
29
29
29
29
29
29
29
39
39
City Streets (miles)
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
100.7
Culture & Recreation:
Parks:
Parks
18
18
18
18
18
18
18
18
17
18
Park Acres
141
141
141
141
141
141
141
141
139.6
147
Trails (miles)
26
26
26
26
26
26
26
26
29.75
30
Park Shelters
7
7
7
6
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
Skating Rinks
4
4
4
4
4
4
4
4
4
3
Soccer Fields
8
8
8
8
8
8
8
8
6
4
Baseball/Softball Fields
20
20
20
20
20
20
20
20
8
8
Tennis Courts
2
2
2
2
2
2
2
2
2
Playgrounds
16
16
16
16
16
16
16
16
15
16
Water:
Distribution System (miles)
74.7
74.7
74.7
74.7
74.7
74.7
74.7
74.7
85.6
99.4
Water Connections
4,247
4,340
4,382
4,424
4,452
4,484
4,520
4,542
4,649
4,738
Gallons Pumped (millions)
590
589
498
492
609
536
536
449
452
494
Number of Fire Hydrants
538
538
538
538
538
538
538
1024
1024
1028
Water Tower Capacity (millions gallons)
2
2
2
2
2
2
2
2
2
2
Sanitary Sewer:
Collection System (miles)
69.8
69.8
69.8
69.8
69.8
69.8
69.8
77.9
77.9
87.0
Sewer Connections
4,447
4,486
4,530
4,567
4,567
4,624
4,685
4,685
4,817
4,976
Storm Sewer:
Pipe (miles)
41.4
41.4
41.4
41.4
41.4
41.4
41.4
41.4
53.7
54.1
Source: Various City Departments
162
OTHER INFORMATION (UNAUDITED)
163
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF LONG-TERM DEBT
December 31, 2017
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
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
2017A Certificates of Indebtedness
1.00%
3/1/17
12/31/20
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
164
Exhibit 1
165
Payable
2017
Payable
Principal
Original
Prior
January 1,
December 31,
Due in
Issue
Payments
2017
Issued
Payments
2017
2018
$495,000
$327,000
$168,000
$ -
$168,000
$ -
$ -
198,250
65,000
133,250
-
67,000
66,250
66,250
963,000
177,000
786,000
-
193,000
593,000
195,000
469,000
-
469,000
-
155,000
314,000
156,000
311,000
-
-
311,000
-
311,000
102,000
2,460,000
705,000
1,755,000
-
1,755,000
-
-
570,000
500,000
70,000
-
70,000
-
-
2,990,000
2,160,000
830,000
-
405,000
425,000
425,000
4,215,000
2,190,000
2,025,000
-
400,000
1,625,000
190,000
2,015,000
520,000
1,495,000
-
225,000
1,270,000
230,000
3,095,000
-
3,095,000
-
190,000
2,905,000
195,000
4,350,000
-
4,350,000
-
165,000
4,185,000
170,000
1,420,000
-
1,420,000
-
-
1,420,000
130,000
1,600,000
-
1,600,000
-
-
1,600,000
225,000
25,151,250
6,644,000
18,196,250
311,000
3,793,000
14,714,250
2,084,250
5,550,000
3,190,000
2,360,000
-
2,360,000
-
-
1,000,000
575,000
425,000
-
100,000
325,000
105,000
615,000
120,000
495,000
-
60,000
435,000
60,000
2,645,000
105,000
2,540,000
-
370,000
2,170,000
370,000
1,975,000
-
1,975,000
-
-
1,975,000
480,000
11,785,000
3,990,000
7,795,000
0
2,890,000
4,905,000
1,015,000
4,260,000
2,915,000
1,345,000
-
1,345,000
-
-
294,525
30,525
264,000
-
30,525
233,475
31,350
$41,490,775
$13,579,525
$27,600,250
$311,000
$8,058,525
$19,852,725
$3,130,600
165
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2017
Year of
Certificates of
Certificates of
Certificates of
Levy/
Indebtedness
Indebtedness
Indebtedness
Collection
2015A
2015B
2016A
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
-
-
-
$70,258 $641,425 $334,656
166
Exhibit 2
167
G.O.
G.O.
EDA Lease
Tax Abatement
Certificates of
Refunding
G.O.
Revenue
Refunding
Indebtedness
Bonds
Bonds
Bonds
Bonds
2017A
2012A
2015A
2015B
2016C
Total
$113,087
$176,390
$274,378
$319,397
$276,176
$1,610,873
111,395
180,012
270,178
315,722
289,097
1,547,082
111,353
178,080
271,228
317,297
301,570
1,393,744
-
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
-
594,352
-
-
269,863
318,557
-
588,420
-
-
269,798
317,192
-
586,990
-
-
222,364
315,669
-
538,033
-
-
222,626
319,239
-
541,865
-
-
222,758
317,244
-
540,002
-
-
221,708
320,342
-
542,050
-
-
-
317,231
-
317,231
-
-
-
319,200
-
319,200
-
-
-
318,780
-
318,780
-
-
-
317,940
-
317,940
-
-
-
316,680
-
316,680
$335,835
$1,065,281
$3,328,238
$5,724,244
$1,505,464
$13,005,401
167
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2017
$66,913 $610,880 $318,720
168
Certificates of
Certificates of
Certificates of
Indebtedness
Indebtedness
Indebtedness
2015A
2015B
2016A
Bonds payable
$66,250
$593,000
$314,000
Future interest payable
663
17,880
4,720
$66,913
$610,880
$318,720
Payments to maturity:
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
-
-
-
$66,913 $610,880 $318,720
168
Exhibit 3
Page 1 of 2
169
G.O.CIP
G.O.
Certificates of
Refunding
G.O. TIF
Refunding
G.O.
Indebtedness
Bonds
Bonds
Bonds
Bonds
2017A
2006E
2007A
2012A
2015A
$311,000
$425,000
$1,625,000
$1,270,000
$2,905,000
8,842
8,500
249,899
58,092
492,355
$319,842
$433,500
$1,874,899
$1,328,092
$3,397,355
$107,702
$433,500
$252,126
$244,660
$258,262
106,090
-
254,326
242,590
259,312
106,050
-
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
$433,500
$1,328,092
$319,842
$1,874,899
$3,397,355
169
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2017
Future interest payable
1,502,956
G.O. Tax
EDA Lease
G.O. Utility
Abatement
Revenue
Revenue
Refunding
Bonds
Bonds
Bonds
2015B
2016A
2016C
Bonds payable $4,185,000
$1,420,000
$1,600,000
Future interest payable
1,502,956
145,300
68,913
$5,687,956
$1,565,300
$1,668,913
Payments to maturity:
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
-
-
$5,687,956
$1,565,300
$1,668,913
170
Exhibit 3
Page 2 of 2
$325,000
$435,000
$2,170,000
G.O.
G.O. Imp &
G.O.
G.O.
Improvement
Utility Revenue
Improvement
Improvement
Refunding G.O. Capital
Bonds
Bonds
Bonds
Bonds Note
2010A
2013A
2014A
2016B 2016A Total
$325,000
$435,000
$2,170,000
$1,975,000
$233,475
$19,852,725
14,925
59,160
124,502
53,048
19,041
2,828,796
$339,925
$494,160
$2,294,502
$2,028,048
$252,516
$22,681,521
$113,175
$74,460
$399,633
$501,575
$36,020
$3,553,199
110,025
72,900
406,158
506,780
36,217
3,080,513
116,725
71,100
401,788
505,868
36,399
2,863,210
-
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
$339,925
$494,160
$2,294,502
$2,028,048
$252,516
$22,681,521
171
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2017
Coverage
General Liability:
Bodily Injury/Property Damage
Personal Injury/Police Professional Liability
Medical Expense Occurrence Limit
Medical Expense Aggregate
Property Damage ($1,000 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers)
Faithful Performance Blanket Bond
Storage Tank Liability
Rented/Leased Equipment ($1,000 Deductible)
Public Official and Employee Liability ($1,000 Deductible each occurrence)
Automotive:
Bodily Injury and Property Damage
Comprehensive and Collision
Uninsured Motorists
Worker's Compensation
Employer Liability
Umbrella Liability
Crime - Theft Disappearance and Destruction ($1,000 Deductible)
172
Exhibit 4
Amount
$2,000,000
2,000,000
2,500
10,000
37,927,418
500,000
250,000
500,000
1,500,000
2,000,000
Actual Cash Value
200,000
Statutory
1,500,000
1,000,000
250,000
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Tax
Capacity
Rate
35.105
10.035
45.140
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
173
Tax Capacity
Values
2015/2016
$18,440,817
2,755,743
(1,115,822)
(261,525)
$19,819,213
Certified
Levy
$7,018,572
2,039,856
$9,058,428
Exhibit 5
Tax
Capacity
Rate
35.025
10.994
46.019
Tax Capacity
Values
Taxes Levied:
2016/2017
Taxable valuations:
$7,360,431
Total
$19,643,805
Fiscal disparities:
$9,491,855
Distribution
2,792,112
Contribution
(1,168,180)
Less: Captured Tax Increment Value
(293,970)
$20,973,767
Tax
Capacity
Rate
35.105
10.035
45.140
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
173
Tax Capacity
Values
2015/2016
$18,440,817
2,755,743
(1,115,822)
(261,525)
$19,819,213
Certified
Levy
$7,018,572
2,039,856
$9,058,428
Exhibit 5
Tax
Capacity
Rate
35.025
10.994
46.019
Certified
Levy
Taxes Levied:
Revenue
$7,360,431
Bond and Interest
2,131,424
Totals
$9,491,855
Tax
Capacity
Rate
35.105
10.035
45.140
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
173
Tax Capacity
Values
2015/2016
$18,440,817
2,755,743
(1,115,822)
(261,525)
$19,819,213
Certified
Levy
$7,018,572
2,039,856
$9,058,428
Exhibit 5
Tax
Capacity
Rate
35.025
10.994
46.019
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174