HomeMy WebLinkAbout05-28-13 Council Packet Updated May 24, 2013
CITY COUNCIL AGENDA
Tuesday , May 28 , 201 3
***********
City Council Meeting
6:30 p.m.
(Scheduled to be broadcast on Channel 16 )
City Council: Mayor Reinert, C ouncil Members O’Donnell , Roeser, Rafferty & Stoesz
City Administrator: Jeff Karlson
COU N CIL WORK SESSION, 5:30 P.M.
Community Room (not televised)
1. Presentation of 2012 Audit Report
3. Review Regular Agenda
ECONOMIC DEVELOPMENT AUTHORITY, 6:00 P.M.
(See attached agenda)
LIQUOR COMPLIANCE HEARING, 6:1 5 P.M.
Council Chambers (not televised)
CITY COUNCIL MEETING, 6:30 P.M.
Call to Order and Roll Call
Pledge of Allegiance
Open Mike / Public Comment
Setting the Agenda: Addition or deletion of agenda items
1. CONSENT AGENDA
A) Consideration of Expenditures:
i) May 28, 20 13 (Check No. 95627 through 95712 ) in the
amount of $285,865.01 ;
ii) Centennial Fire District (Check No. 5819 through
5833 & 2013004) in the amount of $42,208.59 );
B) Consider approval of May 6, 2013 Work Session Minutes
C) Consider approval of May 13, 2013 Council Meeting Minutes
Council Agenda -2 - May 28, 2013
Updated May 24, 2013
D) Consider Resolution No. 13-63 , Approving Applications
for St. Joseph’s Catholic Church Festival (Temporary On -Sale
Liquor, Cabaret and Exempt Gambling)
E) Consider Resolution No. 13-65, Approving Applications
fo r Lino Lakes Lions Club Pheasant Feed (Temporary On-Sale
Liquor and Exempt Gambling)
F) Resolution No. 13-66, Approving a Consumer Fireworks Sales
Permit for Super Target
G) Consider Resolution No. 13-62, Authorizing issuance of
a special event permit for the Lino Lakes YMCA Farmers Market
H) Consider approval of May 6, 2013 Board of Appeal Minutes
2. FINANCE DEPARTMENT
A) Consider Accepting 2012 Annual Audit Report ,
CliftonLarsonAllen LLP, Al Rolek
B) Consider Resolution No. 13-68 Providing for Issuance and Sale
of Approximately $615 ,000 Taxable General Obligation Improvement
Bonds Series 2013A, Al Rolek
3. ADMINISTRATION DEPARTMENT
A) Liquor Compliance Action
4. P UBLIC SAFETY DEPARTMENT
No report
5. PUBLIC SERVICES DEPARTMENT
No report
6. COMMUNITY DEVE LOPMENT DEPARTMENT
A) Consider Resolution No. 13-58, Approving Development Agreement,
Preserve at Lino Lakes, Katie Larsen
B) Consider Resolution No. 13-60, Approving Development Agreement for
Main Street Shoppes, Katie Larsen
7. UN FINISHED BUSINESS
None
8. NEW BUSINESS
None
Council Agenda -3 - May 28, 2013
Updated May 24, 2013
Adjournment
Community Calendar – A Look Ahead
May 28, 2013 through June 10, 201 3
Wednesday, May 2 9 6:30 pm, Council Chambers Environmental Board
Monday, June 3 5:30 pm, Community Room Council Work Session
Monday, June 3 6:30 pm, Council Chambers Park Board
Thursday, July 6 8:00 am, Community Room EDAC
Monday, July 10 6:30 pm, Council Chambers City Council Meeting
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
MONDAY , MAY 28 , 2013
6:00 P.M.
City Council Chambers
1. Call to Order and Roll Call
2. Consideration of Minutes of March 25 , 2013
3. Consideration of Appointment of Michael Grochala as Secretary of the EDA, Michael
Grochala
4. Resolution No. 13 -05, Approving 2013 Minnesota Laws, CH. 73, Section 10,
Conveyance of Tax Forfeited Land, Michael Grochala
5. Adjourn
EDA MINUTES MARCH 25 , 2013
DRAFT
1
DATE : March 25 , 2013
TIME STARTED : 6:20 p.m.
TIME ENDED : 6:30 p.m.
MEMBERS PRESENT : Commissioners O’Donnell, Roeser,
Reinert, Rafferty , Stoesz
MEMBERS ABSENT : None
OTHERS PRESENT: : Mary Divine
The mee t ing was called to order at 6:20 p.m. by President R oeser .
CONSIDERATION OF THE MINUTES OF MARCH 11 , 2013
EDA Member O’Donnell moved to approve the March 11 , 2013 minutes. EDA Member R einert
secon ded the motion. Motion carried on a unanimous voice vote.
CONSIDERATION OF RESOLUTION NO. 13 -04 APPROVING THE SECOND
AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT AND
SUBORDINGATION AGREEMENT AND FIRST AMENDMENT TO DECLARATION
OF COVENANT AND RESTRICTION.
Mary Divine, Economic Development Coordinator, explaine d that the EDA approved an
amendment to the original Contract for Private Development so that Lino Lakes Housing
Limited Partnership (LLHLP) could acquire the project. She explained that LLHLP is now
trying to refinance to take advantage of favorable inte rest rates. T his process requires the
executi on of the amendments.
EDA Member Rafferty moved to approve Resolution No. 13 -0 4 as presented. EDA Member
Stoesz seconded the motion. Motion carried on a unanimous voice vote.
ADJOURNMENT
There being no fur ther business, EDA member Stoesz moved to adjourn. EDA Member Rafferty
seconded the motion. Motion carried on a unanimous voice vote .
Meeting adjour ned at 6:30 p.m.
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
AGENDA ITEM 3
STAFF ORIG INATOR: Michael Grochala
MEETING DATE: May 28 , 2013
TOPIC: Motion to Appoint Michael Grochala, Community Development
Director as Secretary of the EDA
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting Board consideration to appoint the Community Development Director as
Secretary of the EDA.
BACKGROUND
The EDA is required by state law to appoint a Secretary. This appointment was pre viously
filled by Mary Divine who retired in April. Ms. Divine’s position as Economic Development
Coordinator is not being filled at this time. Community Development Director Grochala is the
staff person who will be coordinating the activit ies of the EDA in Ms. Divine’s absence.
RECOMMENDATION
Staff is recommending appointment of Mr. Grochala as Secretary of the EDA.
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
AGENDA ITEM 4
STAFF ORIG INATOR: Michael Grochala
MEETING DATE: May 28 , 2013
TOPIC: Consi deration of Resolution No. 13 -0 5, Approving 2013 Minnesota
Laws, CH. 73, Section 1 0, Conveyance of Tax Forfeited Land,
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting Board consideration of a resolution to approve the special legislation that
was approved by the State of Minnesota providing for the conveyance of the L egacy property
to the City of Lino Lakes Economic Development Authority.
BACKGROUND
The EDA and City Council authorized the preparation of special legislation to provide for
conveyance of the tax forfeited Legacy property in February of 2013. The legisl ation was
signed into law on May 20, 2013. Both the EDA and County of Anoka must approve the
legislation and file a certificate with the Secretary of State prior to the law taking effect.
RECOMMENDATION
Approve Resolution No. 13 -0 5
ATTACHMENTS
1. Resolu tion No. 13 -0 5
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.13 -05
APPROVING 2013 MINNESOTA LAWS, CH. 73, SECTION 10
RELATING TO CERTAIN TAX FORFEITED PROPERTY
IN THE CITY OF LINO LAKES
BE IT RESOLVED By the Board of Commissioners (the “Boa rd”) of the Lino Lakes
Economic Development Authority, Anoka County, Minnesota (the “Authority”) as follows:
1. It is hereby determined that:
(a) 2013 Minnesota Laws, Chapter 73, Section 10 (the “Special Law”)
authorized conveyance of certain specifie d parcels of tax -forfeited property to the
Authority under certain conditions;
(b) the Special Law is effective upon approval by a majority vote of the
Authority’s Board and a majority vote of the Anoka County Board of Commissioners
(the “County Board”); and filing a certificate with the Minnesota Secretary of State, all
in accordance with Minnesota Statutes, Section 645.021, subds. 2 and 3; and
(c) the Board has determined that is in the best interest of the City and its
residents to approve the Spe cial Law.
2. The Special Law is hereby approved in all respects.
3. Upon receipt of a certified copy of a resolution approving the Special Law by
the County Board, the Secretary is authorized and directed to file with the Secretary of State
both the Ci ty and County Board resolutions along with the appropriate certificate in the form
prescribed by the State attorney general.
4. Authority staff and consultants are authorized and directed to take all actions
necessary to implement the Special Law and bri ng before this Council further proceedings as
necessary (if any) in order to implement the Special Law.
Adopted by the board of commissioners of the Lino Lakes Economic Development Authority
this 28th day of May, 2013.
Dave Roeser
President
ATTEST:
Michael Grochala
Secretary
LIQUOR VIOLATIONS HEARING
STAFF ORIG INATOR: Captain Kent Strege
HEARING DATE: May 28, 2013
TOPIC: Liquor License Violation – Miller’s on Main / Tavern on Main
VOTE REQUIRED: 3/5
B ACKGROUND
On May 7 th , 2012 at 2:31 am an officer stopped at Mil ler’s On Main to check on people still in
the bar. Upon approaching the bar a male fled and was subsequently caught and identified. The
male was jailed for underage consumption and fleeing an officer. Upon further investigation it
was found that an employe e, Lauren Wagner served alcohol to the male suspect who was under
the age of 21. Ms. Wagner was cited for serving alcohol to a minor and pled guilty to the
charge on April 10, 2013.
This is the first license violation at Miller’s on Main in a 12 month per iod.
RECOMMENDATION
In accordance with the Best Practices Grid, a $500 civil penalty is recommended.
ATTACHMEN TS
Best Practices Grid
Section 701.0 1 of the City Code
Minnesota State Statute 340A.501 & 340A.503
Non -Best Practices Grid
License Type 1st Violation 2nd Violation 3rd Violation 4th Violation
On -Sale
Intoxicating
liquor
$500 and 5 days
suspension
$1,000 and 10
days suspension
$2,000 and 15
days suspension Revocation
Off -sale
intoxicating
liquor
$500 and 3 days
suspension
$1,000 and 7
days suspension
$2,000 and 12
days suspension Revocation
On -sale beer
and wine
$500 and 5 days
suspension
$1,000 and 10
days suspension
$2,000 and 15
days suspension Revocation
Off -sale 3.2
malt liquor
$1,000 and 10
days suspension
$1,500 a nd 20
days suspension
$2,000 and 40
days suspension Revocation
Best Practices Grid
License Type 1st Violation 2nd Violation 3rd Violation
On -Sale
Intoxicating
liquor
$500 $1,000 and 5
days suspension
Return to
regular grid and
off Best
Practi ces for one
year
Off -sale
intoxicating
liquor
$500 $1,000 and 3
days suspension
Return to
regular grid and
off Best
Practices for one
year
On -sale beer
and wine $500 $1,000 and 5
days suspension
Return to
regular grid and
off Best
Practices for one
y ear
Off -sale 3.2
malt liquor $1,000 $1,500 and 10
days suspension
Return to
regular grid and
off Best
Practices for one
year
§ 701.01 STATE LIQUOR LICENSING LAW.
(1) Provisions of state law adopted . The provisions of M.S. Ch. 340A, as it may be
amende d from time to time, with reference to definitions of terms, applications for license,
granting of license, conditions of license, restriction on consumption, provision of sales,
conditions of bonds of license, hours of sales and all other matters pertaini ng to the retail
sale, distribution and consumption of intoxicating liquor, are hereby adopted and made a
part of this chapter as if fully set out herein. It is the intention of the City Council that all
future amendments to M.S. Ch. 340A are hereby adopte d by reference or referenced as if
they had been in existence at the time this chapter was adopted.
(2) City may be more restrictive than state law . The Council is authorized by the provisions
of M.S. § 340A.509, as it may be amended from time to time, to impose and has imposed in
this chapter, additional restrictions on the sale and possession of alcoholic beverages within
its limits beyond those contained in M.S. Ch. 340A, as it may be amended from time to
time.
(Prior Code, § 701.01) (Am. Ord. 13 -02, pas sed 10 -28 -2002)
340A.501 RESPONSIBILITY OF LICENSEE.
Every licensee is responsible for the conduct in the licensed establishment and any sale
of alcoholic beverage by any employee authorized to sell alcoholic beverages in the
establishment is the act of t he licensee for the purposes of all provisions of this chapter
except sections 340A.701 , 340A.702 , and 340A.703 .
History:
1985 c 305 art 7 s 1 ; 1987 c 152 art 1 s 1 ; art 2 s 2
340A.503 PERSONS UNDER 21; ILLEGAL ACTS.
Subdivision 1.Consumption.
(a) It is unlawful for any:
(1) retail intoxicatin g liquor or 3.2 percent malt liquor licensee, municipal liquor store,
or bottle club permit holder under section 340A.414 , to permit any person under the age of
21 years to drink alcoholic beverages on the licensed premises or within the municipal
liquor store; or
(2) person under the age of 21 years to consume any alcoholic beverages. If proven by
a preponderance of the evidence, it is an affirmative defense to a v iolation of this clause
that the defendant consumed the alcoholic beverage in the household of the defendant's
parent or guardian and with the consent of the parent or guardian.
(b) An offense under paragraph (a), clause (2), may be prosecuted either in th e
jurisdiction where consumption occurs or the jurisdiction where evidence of consumption is
observed.
(c) As used in this subdivision, "consume" includes the ingestion of an alcoholic
beverage and the physical condition of having ingested an alcoholic bev erage.
Subd. 2.Purchasing.
It is unlawful for any person:
(1) to sell, barter, furnish, or give alcoholic beverages to a person under 21 years of
age;
(2) under the age of 21 years to purchase or attempt to purchase any alcoholic
beverage unless under the supervision of a responsible person over the age of 21 for
training, education, or research purposes. Prior notification of the licensing authority is
required unless the supervised alcohol purchase attempt is for professional research
conducted by postsec ondary educational institutions or state, county, or local health
departments; or
(3) to induce a person under the age of 21 years to purchase or procure any alcoholic
beverage, or to lend or knowingly permit the use of the person's driver's license, permi t,
Minnesota identification card, or other form of identification by a person under the age of
21 years for the purpose of purchasing or attempting to purchase an alcoholic beverage.
If proven by a preponderance of the evidence, it shall be an affirmative defense to a
violation of clause (1) that the defendant is the parent or guardian of the person under 21
years of age and that the defendant gave or furnished the alcoholic beverage to that person
solely for consumption in the defendant's household.
Subd. 3.Possession.
It is unlawful for a person under the age of 21 years to possess any alcoholic beverage
with the intent to consume it at a place other than the household of the person's parent or
guardian. Possession at a place other than the household of th e parent or guardian creates a
rebuttable presumption of intent to consume it at a place other than the household of the
parent or guardian. This presumption may be rebutted by a preponderance of the evidence.
Subd. 4.Entering licensed premises.
(a) It is unlawful for a person under the age of 21 years to enter an establishment
licensed for the sale of alcoholic beverages or any municipal liquor store for the purpose of
purchasing or having served or delivered any alcoholic beverage.
(b) Notwithstanding sec tion 340A.509 , no ordinance enacted by a statutory or home
rule charter city may prohibit a person 18, 19, or 20 years old from entering an
establishment licensed u nder this chapter to:
(1) perform work for the establishment, including the serving of alcoholic beverages,
unless otherwise prohibited by section 340A.412, subd ivision 10 ;
(2) consume meals; and
(3) attend social functions that are held in a portion of the establishment where liquor
is not sold.
Subd. 5.Misrepresentation of age.
It is unlawful for a person under the age of 21 years to claim to be 21 years old o r older
for the purpose of purchasing alcoholic beverages.
Subd. 5a.Attainment of age.
With respect to purchasing, possessing, consuming, selling, furnishing, and serving
alcoholic beverages, a person is not 21 years of age until 8:00 a.m. on the day of th at
person's 21st birthday.
Subd. 6.Proof of age; defense; seizure of false identification.
(a) Proof of age for purchasing or consuming alcoholic beverages may be established
only by one of the following:
(1) a valid driver's license or identification card issued by Minnesota, another state, or
a province of Canada, and including the photograph and date of birth of the licensed
person;
(2) a valid military identification card issued by the United States Department of
Defense;
(3) a valid passport issued by the United States; or
(4) in the case of a foreign national, by a valid passport.
(b) In a prosecution under subdivision 2, clause (1), it is a defense for the defendant to
prove by a preponderance of the evidence that the defendant reasonably and in good faith
relied upon representations of proof of age authorized in paragraph (a) in selling, bartering,
furnishing, or giving the alcoholic beverage.
(c) A licensed retailer or municipal liquor store may seize a form of identification
listed under paragraph (a) if the retailer or municipal liquor store has reasonable grounds to
believe that the form of identification has been altered or falsified or is being used to violate
any law. A retailer or municipal liquor store that seizes a form of identification as
a uthorized under this paragraph must deliver it to a law enforcement agency, within 24
hours of seizing it.
Subd. 7.
[Repealed, 1989 c 351 s 19 ]
History:
1985 c 305 art 7 s 3 ; 1986 c 330 s 6 ; 1986 c 444 ; 1987 c 152 art 1 s 1 ; 1989 c 301 s
13 ,14; 1990 c 602 art 5 s 2 -4; 1991 c 68 s 1 ; 1991 c 249 s 20 ; 1993 c 34 7 s 21 ; 1993 c 350
s 13 ; 1994 c 615 s 21 ; 1995 c 185 s 7 ; 1995 c 186 s 67 ; 1996 c 323 s 4 ; 1996 c 442 s 24 ;
1Sp1997 c 2 s 57 ; 1999 c 202 s 7 ; 2000 c 472 s 3 ; 2005 c 131 s 7
CENTENNIAL FIRE DISTRICTCheck Register - FIRE GLPage: 1
Check Issue Dates: 5/7/2013 - 5/17/2013May 20, 2013 11:12AM
Report Criteria:
Report type: Summary
GLCheckCheckVendorDescriptionCheck
PeriodIssue DateNumberNumberPayeeAmount
05/1305/17/2013581910750ANOKA CO CENTRAL COMMUN800 MHZ RADIO REMOTE SPEA345.50
05/1305/17/2013582030480CENTENNIAL UT ILITIESAPRIL UTILITIES268.08
05/1305/17/2013582131008COMCASTINTERNET STATION 1203.00
05/1305/17/2013582260050FISDAPEMT TEST420.00
05/1305/17/2013582370578GRAING ERVEH MTC PARTS139.99
05/1305/17/20135824120450CITY OF LINO LAKESAPRIL REIMB-FUEL29,462.50
05/1305/17/20135825130205MMKR, INCFIN AL 2012 AUDIT BILLING5,415.00
05/1305/17/20135826140075NSRM AA2012 ANNUAL DUES150.00
05/1305/17/20135827160050PAETECPHONES STATION 2156.98
05/1305/17/20135828160130PERFORMANCE PLUS LLCFEMA-PREPLACEMENT MED T1,225.00
05/1305/17/20135829160493PREMIUM WATE RS, INCBOTTLED H2057.03
05/1305/17/20135830180600CITY OF ROSEVILLEMAY PHONE1,719.50
05/1305/17/20135831220200VERIZON WIRELESSCELL PHONES105.52
05/1305/17/20135832220250VI KING TROPHIES, INCPLAQUES168.33
05/1305/17/20135833240100XCEL ENERGYELECTRIC STATION 2478.54
Grand Totals:40,314.97
M = Manual Check, V = Void Check
CITY COUNCIL WORK SESSION May 6, 2013
DRAFT
1
CITY OF LINO LAKES 1
MINUTES 2
3
DATE : May 6, 2013 4
TIME STARTED : 6:40 p.m. 5
TIME ENDED : 9:15 p.m. 6
MEMBERS PRESENT : Council M ember Stoesz , O’Donnell, 7
Rafferty , Roeser and Mayor Reinert 8
MEMBERS ABSENT : None 9
10
11
Staff members present: City Administrator Jeff Karlson; Community Development 12
Director Michael Grochala; Public Safety Director John Swenson; City Planner Katie 13
Larsen; Cit y Clerk Julie Bartell 14
15
The council held a Board of Appeal meeting previous to the beginning of the work 16
session. 17
18
1 . Local Surface Water Management Plan (EOR, Inc.) – Community Development 19
Director Grochala noted that the city is required to have this pla n in place and to keep it 20
updated along with the Rice Creek Watershed District (RCWD). The city hired EOR, 21
Inc. to complete a draft updated plan that co uld be distributed for review to other 22
jurisdictions . The plan itself provides an assessment of the c ity’s water resources along 23
with establishing goals and policies, implementation actions and processes and costs. 24
The City’s Environmental Board has reviewed the proposed updated plan and 25
recommends approval. 26
27
Brett Emmens, representing EOR, Inc ., expla ined the contents of the report, adding that 28
while plans are laid out in the document , the city will decide what is appropriate and 29
when. Mr. Grochala pointed out actions that are already programmed by the city and 30
areas wh e re other work (funding) is pla nned for the future. 31
32
The mayor asked what has changed from the last update and what is the city agreeing to 33
do by accepting the plan (including in the future)? Mr. Emmens noted that the plan 34
expands the horizon into future years, to keep plans moving f orwarded as well as dealing 35
with currently planned improvements. Mr. Grochala added that the plan lays out for the 36
city how it will address water quality and issues related to it; the plan helps to keep the 37
city consistent with state law. It is a policy document that doesn’t deal necessarily with 38
specific projects. Council Member O’Donnell asked if and how the plan is incorporated 39
into the city’s Five Year Forecast? Mr. Grochala explained that most of the plans are also 40
included in that forecast. 41
42
The m ayor suggested that counc il members review the document and direct any questions 43
to Mr. Grochala. The council concurred that the plan will be considered for release for 44
CITY COUNCIL WORK SESSION May 6, 2013
DRAFT
2
review at the next council meeting unless any council members would l ike to take more 45
time for their review . 46
47
2. Exterior Storage – 7309 Lake Drive – Community Development Director Grochala 48
recalled that a Cease and Desist order was issued to the owner of this property, Pinnacle 49
Point, LLC. The order relates to discontinuing outdoor sto rage of shipping containers on 50
the property as it is not allowed under the city’s zoning ordinance. The council briefly 51
discussed the item at the last regular work session and directed that the order be stayed 52
pending further review and discussion by the council. Mr. Grochala noted that his written 53
report provides a policy review that lays out the purpose and application of the 54
Comprehensive Plan and the city’s zoning regulations that purport to guide and restrict 55
land use to the hig hest and best use . He warns against allowing any extreme departure 56
from the city’s established guidelines. Although the council has recently opened the 57
door by allowing some limited outdoor storage use in this type of zoning district, it would 58
be more detrimental to allow su ch a use permanently. Regarding this specific property, 59
Mr. Grochala explained that the city has received calls from area residents about the 60
storage. He warned that it is a low value type use that will eventually preclude 61
development and keep values l ow. If the council wants to allow outdoor storage, he 62
believes the properties will fill up quickly for just that type of use. 63
64
Mayor Reinert noted a different industrial area where he’s seen bus parking. Mr. 65
Grochala explained that the area mentioned i s within the General Business zoning district 66
and bus parking is allowed as a pre -existing use. He also noted that buses are quite 67
different than shipping containers as is present at this address. 68
69
The mayor suggested that he understands that outdoor st orage isn’t necessarily a desirable 70
use although the council did make an exception for another property. He feels that the 71
city’s role is to deal with buildings and property and not to pick and choose businesses 72
that will receive special consideration. 73
74
The owner of the property noted that when the City of Columbus brought in the horse 75
track, they set up an interim use process, grandfathered in certain uses and allowed others 76
to request special consideration. 77
78
The mayor said he wishes to support busine sses that chose to locate in Lino Lakes and he 79
is open to some uses outside of zoning when it is within reason and is temporary in 80
nature. 81
82
Community Development Director Grochala then explained how outdoor storage came to 83
be allowed as an interim use a t another industrial property. The site in question originally 84
had a non -conforming use that continued but that ended and now something else not 85
allowed has come in and that doesn’t fall under the category of grandfathering. 86
87
The mayor asked council mem bers to offer their standing on the matter. Council 88
Member O’Donnell said that he wants to help the business but understands the issue of 89
CITY COUNCIL WORK SESSION May 6, 2013
DRAFT
3
setting an undesirable precedent. Council Member Stoesz asked if it would be 90
appropriate to allow a “grace period” to see how things work out. Council Member 91
Roeser said he supports businesses a nd doesn’t want to see buildings in the city unused. 92
Council Member Rafferty said that he sees an impacted residential neighborhood where 93
people have invested in their proper ty just as the business owner has ; he’d like to move 94
cautiously where zoning is involved and he reminded the council that the city has 95
received complaints about the use. Mr. Rafferty remarked that the city’s zoning 96
regulations are law and should be change d when that is warranted but not automatically 97
for a single use. 98
99
The mayor suggested that the council has three options for action as he sees it: 1) do 100
nothing; 2) change the zoning ordinance; and 3) find some type of hybrid solution. 101
102
Mr. Grochala a dded that the council would have to change the regulations (ordinance) to 103
allow this use . He noted that he has some concern that this would not be a n interim use 104
and it would continue in years to come. Council Member Roeser suggested that the 105
council co uld review the situation after a designated period to see if the business climate 106
has changed. 107
108
The owner added that he is willing to eliminate some of the things that the city may see as 109
an “eyesore”. The containers are secure storage provided to busin e sses and c learing the 110
containers this year has been somewhat delayed due to the longer than usual winter 111
season. 112
113
The mayor pondered whether the current regulations would actually allow the use 114
depending on the definition of the activities, and Mr. Groc hala noted that if the city were 115
to find that the use is allowed that would have to be all owed as a permanent use. The 116
mayor noted that he doesn’t want to change the city’s regulations (zoning ordinance). 117
Council Roeser added that he sees other non -con forming uses remaining long term 118
because they a re considered grandfathered . Mr. Grochala responded that there are 119
actually only about four of those uses and they will end eventually through attrition. The 120
mayor suggested that a business model, created by this company that allows the use may 121
be an option if the company is given time to work on it. 122
123
The council concurred to stay the Cease and Desist Order for an additional 30 days and 124
directed Community Development Director Grochala to continue to work with this 125
company to see what can be done. 126
127
3) Emergency Management Plan – Public Safety Director Swenson indicated that he 128
had provided the council with a copy of the plan denoting what is being updated, as 129
requested at the last work session. He reviewe d some of the changes and noted that he 130
would like to receive the council’s approval of the updated plan so that he can begin the 131
process of training under the direction s provided within the plan. 132
133
CITY COUNCIL WORK SESSION May 6, 2013
DRAFT
4
The council had reviewed the plan over the past month an d concurred that it should be 134
added to the next regular council meeting agenda for approval. 135
136
4. Off –Sale Liquor Licensing – City Clerk Bartell noted there is some new information 137
in the staff reported provided by Community Development Director Grochal a in response 138
to the council’s direction to look at the possibility of limited off -sale licenses but also 139
provide for an exempt zone(s). Mr. Grochal a noted that he spoke with the c it y a ttorney 140
about how an ordinance could be drafted that would provide for exemptions. His 141
recommendation was to limit additional licenses within the geographic area where the 142
city se es there are enough licenses. The city could even authorize a lesser number of 143
licenses within the zone so if a store was closed that license wou ldn’t be eligible for 144
replacement. Council members expressed concern about regulations that would create an 145
unfair field and noted that the Economic Development Advisory Committee 146
recommend ed no change to the regulations. 147
148
The council concurred that th ey would not consider a change to the current off -sale 149
regulations at this time but will anticipate a review of the situation each year. 150
151
Review Regular Agenda of May 13, 2013 – The council received a brief explanation of 152
each agenda item. There were no changes to the regular Council agenda. 153
154
The meeting was adjourned at 9:15 p.m. 155
156
These minutes were considered, corrected and approved at the regular Council meeting held on 157
May 28, 2013 . 158
159
160
161
162
Julianne Bartell, City Clerk Jeff Reinert , M ayor 163
164
COUNCIL MINUTES May 13, 2013
DRAFT
1
CITY OF LINO LAKES 1
MINUTES 2
3
DATE : May 13, 2013 4
TIME STARTED : 6:30 p.m. 5
TIME ENDED : 7:25 p.m. 6
MEMBERS PRESENT : Council M ember Stoesz , O’Donnell, Rafferty , 7
Roeser , and Mayor Reinert 8
MEMBERS ABSENT : none 9
10
Staff me mbers present: Community Development Director Mi chael Grochala; Chief of Police John 11
Swenson; City Engineer Jason Wedel ; and City Planner Katie Larsen 12
13
PUBLIC COMMENT 14
15
No one wa s present to address the council regarding a matter not on the agenda. 16
17
SETT ING THE AGENDA 18
19
The agenda was approved as presented. 20
21
SPECIAL PRESENTATION 22
23
Centennial Fire Chief Jerry Streich presented Lifesaver Awards to Lino Lakes Police Sergeant Kyle 24
Leibel and Officer Adam Halvorson for their efforts in dealing with an industrial accident. The award 25
recognizes their heroic efforts in saving a human life. 26
27
CONSENT AGENDA 28
29
Council Member Roeser moved to approve t he Consent Agenda, Items 1A through 1G, as presented . 30
Council Member O’Donnell seconded the motion. Motion carried on a unanimous voice vote . 31
32
ITEM ACTION 33
34
City Expenditures, May 13, 2013 35
(Check No. 95546 – 95626 , $319,769.20) Approved 36
37
Centennial Fire District Expenditures 38
(Check No. 5777 -5810 , $75,751.20 ) Approved 39
40
April 22, 2013 Work Session Minutes Approved 41
42
April 22, 2013 Council Meetin g Minutes Approved 43
Resolution No. 13 -43, Peddler’s License for Big Bell 44
Ice Cream, Inc. Approved 45
COUNCIL MINUTES May 13, 2013
DRAFT
2
46
April 22, 2013 Board of Appeal Minutes Approved 47
48
April 22, 2013 Closed Council Session Minutes Approved 49
50
Cont ract for Services, Otter Lake Animal Approved 51
52
FINANCE DEPARTMENT REPORT 53
54
There was no report from the Finance Department. 55
56
ADMINISTRATION DEPARTMENT REPORT 57
58
There was no report from the Administration Department 59
60
PUBLIC SAFETY DEPARTMENT REPORT 61
62
4A) C onsider approval of City of Lino Lakes Emergency Management Plan – Police Chief 63
Swenson explained that the Plan was created in 2007 and has been revised as needed. The Plan 64
before the council now has been reviewed and discussed at the council work session . The Plan does 65
contain some private data so it will not be placed on the city Website; a condensed form is availab le 66
for review and the police department is available to answer questions about the Plan. 67
68
Council Member O’Donnell moved to approve the Li no Lakes Emergency Management Plan as 69
presented. Council Member Roeser seconded the motion. Motion carried on a unanimous voice vote. 70
71
4B) 2013 National Police Week Proclamation – Police Chief Swenson explained the recognition 72
activities that occur duri ng National Police Week. Historically, May 15 was established by President 73
Kennedy to recognize the profession. Chief Swenson then read the proclamation. 74
75
Council Member Roeser moved to approve the Proclamation as presented. Council Member 76
Rafferty s econded the motion. Motion carried on a unanimous voice vote. 77
78
PUBLIC SERVICES DEPARTMENT REPORT 79
80
There was no report from the Public Services Department. 81
82
COMMUNITY DEVELOPMENT DEPARTMENT REPORT 83
84
6A) Lino Lakes Assisted Living 85
86
i. Resolution No. 13 -53, Approving a Variance to Increase the Maximum Right -of -Way 87
Setback for the Lino Lakes Assisted Living Addition at 725 Town Center Parkway 88
89
90
COUNCIL MINUTES May 13, 2013
DRAFT
3
ii. Resolution No. 13 -54, Approving the Planned Unit Development – Final 91
Plan/Final Plat for the Village No. 5, L ino Lakes Assisted Living 92
93
iv. 2 nd Reading and Passage of Ordinance No. 03 -13, Vacating a Drainage 94
and Utility Easement for The Village No. 5 95
96
City Planner Larsen explained that the development contract related to the Lino Lakes Assisted 97
Living project w as stricken from the agenda . The items before the council this evening relate to 98
allowin g a variance to the setback, the final plan/final plat and an related drainage and utility 99
easement vacation. 100
101
Ms. Larsen explained that the variance is requested beca use the proposal does not meet a maximum 102
five foot setback requirement. The app licant is trying to line up the addition with the existing 103
building so staff sees that as an appropriate request. Also an existing water main will require 104
relocation. Lands caping will be required that should help to minimize any depth lost due to the 105
variance. She added that the c ity’s Planning and Zoning Board has recomme nded approval of the 106
resolut ion that includes findings of fact. 107
108
Ms. Larse n then reviewed Resolution No . 13 -54 approving the final plat/final plan for the 109
development. This is a straight forward lot combination to create Village No. 5. The Planning and 110
Zoning Board has recommended approval of the resolution including conditions. 111
112
Regarding Ordinance No . 03 -13, Ms. Larsen explained that the ordinance provides for vacation of a 113
drainage and utility easement. This ordinance received 1 st Reading at the last council meeting. 114
115
Council Member O’Donnell moved to approve Resolution No. 13 -53 as presented. Coun cil Member 116
Roeser seconded the motion. Motion carried on a unanimous voice vote. 117
118
Council Member Roeser moved to approve Resolution No. 13 -54 as presented. Council Member 119
Stoesz seconded the motion. Motion carried on a unanimous voice vote. 120
121
Council Mem ber Rafferty moved to wai ve full reading of Ordinance No. 03 -13 . Council Member 122
Roeser seconded the motion. Motion carried on a unanimous voice vote. 123
124
Council Member O’Donnell moved to approve the 2 nd Reading and passage of Ordinance No. 03 -13 125
as present ed. Council Member Roeser seconded the motion. Motion carried: Yeas, 5; Nays none. 126
127
6B) Preserve at Lino Lakes 128
129
i. Resolution No. 13 -56, Amending Resolution No. 06 -137 entitled “Approving PUD 130
Development Stage Plan/Preliminary Plat and Allocation of MUSA Reserve for the 131
Preserve, passed August 28, 2006 132
133
ii. Resolution No. 13 -57, Approving the Planned Unit Development – Final Plan/Final 134
Plat for Preserve at Lino Lakes 135
COUNCIL MINUTES May 13, 2013
DRAFT
4
136
City Planner Larsen explained that the project is a residential subdivision project that originally came 137
to the city in 2006 proposed by Integra Homes. With the economic downturn, the project was not 138
developed as planned but has not been picked up by a different developer, Schwieters Investments of 139
Lino Lakes, LLC. This is a conservat ion devel opment with 31 lots and six out lots. Resolution No. 140
13 -56 would amend the 2006 resol ution that approved the preliminary PUD to change the language 141
regarding maintenance of rain gardens since it has been determined that the small rain gardens 142
wo uldn’t work well. Mayor Reinert confirmed that the rain garden agreement included a fund set up 143
to cover maintenance costs; what is the status of that fund? Ms. Larsen explained that there was no 144
money in the fund at this point. Mayor Reinert noted the location of the development (off Holly 145
Drive) and lauded the addition of this conservation development. The mayor did ask about the impact 146
of a future development that could cause new residents to drive through this area; he’d like to see that 147
dealt with up front. Staff indicated that a sign would be installed about any new development. 148
149
Council Member Roeser moved to approve Resolution No. 13 -56 as presented. Council Member 150
O’Donnell seconded the motion. Motion carried on a unanimous voice vote. 151
152
City Planner Larsen then explained that Resolution No. 13 -57 relates to the final plan/final plat for the 153
development. She indicated the plans on an overhead projection. She pointed out the amenities 154
(trails, conservation areas). There will eventually be a full conservation management plan associated 155
with the development. The Planning and Zoning Board recommends approval of the resolution which 156
includes many of the expectations and requirement s attached to the approval. Council Member 157
Roeser asked if the city has received any comments from neighbors to the development. Community 158
Development Director Grochala responded that the preliminary approval in 2006 included lots of 159
discussion with the neighborhood. The main issue was about grading and hauling so that will receive 160
staff attention. 161
162
Council Member Roeser moved to approve Resolution No. 13 -57 as presented. Council Member 163
O’Donnell seconded the motion. Motion carried on a unanimous voice vote. 164
165
6C) Main Street Shoppes 166
167
i. Resolution No. 13 -59, A pproving the Preliminary and Final Plat for the Main Street 168
Shoppes 169
170
City Planner Larsen explained that Resolution No. 13 -59 relates to a commercial development at the 171
northeast quadrant of I -35E and Main Street. Basically it is a commercial subdivision for Lot 1, 172
Block 1 proposed for a new restaurant (McDonald ’s ) site. It is also related to the extension of Otter 173
L ake Road planned by the city and the approvals of the plat are cont ingent on that extension. The 174
Planning and Zoning Board recommends appr oval with conditions included. 175
176
Council Member O’Donnell moved to approve Resolution No. 13 -59 as presented. Council Member 177
Roeser seconded the motion. Motion carried on a unanimous voice vote. 178
179
COUNCIL MINUTES May 13, 2013
DRAFT
5
6D) Resolution No. 13 -61, Approving Change Order No. 1 for the Otter Lake Road Street and 180
Utility Improvements - City Engineer Wedel reported that the change order relates to a change in 181
materials for gate valves on the water main. The change was requested by the City Utility Supervisor. 182
The cost of the change was noted and Mr. Wedel said the project total will remain within the 183
engineer’s estimate. 184
185
Council Member Rafferty moved to approve Resolution No. 13 -61 as presented. Council Member 186
Stoesz seconded the motion. Motion carried on a unanimous voice vote. 187
188
6E) Lino Lakes Assisted Living Land Purchase 189
190
i. Resolution No. 13 -50, Approving a Release of Obligations from Contract for 191
Subdivision/Planned Unit Development Agreement with Hartford Development, Inc. 192
193
ii. Resolution No. 13 -51, Approving a Release of Obligations from Petition and Waiver 194
Agreement with Legacy Holdings -LL, LLC 195
196
Community Development Director Grochala explained that Resolution No. 13 -50 and Resolution No. 197
13 -51 are basically clean -up actions. The noted agreements that have been recorded against the 198
property but have been replaced and are no longer needed. 199
200
Council Member O’Donnell moved to approve Resolution No. 13 -50 as presented. Council Member 201
Roeser seconded the motion. Motion carried on a unanimous voice vote. 202
203
Council Member Raff erty moved to approve Resolution No. 13 -51 as presented. Council Member 204
Stoesz seconded the motion. Motion carried on a unanimous voice vote. 205
206
6F) Resolution No. 13 -64, Authorizing Distribution of Local Surface Water Management Plan 207
– Community Develop ment Director Grochala explained that the city is required to have this Plan and 208
to keep it updated. The Plan has been reviewed and it would be appropriate to send the plan on for 209
review by jurisdictions and the Metropolitan Council. Staff is requesting that authority. The mayor 210
asked how long a review is allowed; staff responded that it is a sixty day period. 211
212
Council Member Roeser motion to approve Resolution No. 13 -64 as presented. Council Member 213
Rafferty seconded the motion. Motion carried on a un animous voice vote. 214
215
UNFINISHED BUSINESS 216
217
There was no Unfinished Business. 218
219
NEW BUSINESS 220
221
There was no New Business. 222
223
COMMUNITY EVENTS 224
COUNCIL MINUTES May 13, 2013
DRAFT
6
225
Mayor Reinert made the following announcements. 226
227
Monthly Recycle Day will be held at Lino Park (7850 Lake Drive) on S aturday, May 18, 2013 from 228
10:00 a.m. to 2:00 p.m. See city website for a list of accepted items. 229
230
Mn Outdoor Youth Expo will be held at Wild Wings of Oneka, 9491 152 nd St. N., Hugo will be 231
held May 18 th and 19 th . Adults $5.00, kids 15 and under free. C ontact phone number: (651) 439 -232
4287 . 233
234
Problem Solvers Rummage Sale will be held at Rice Lake Elementary on Saturday, May 18 from 235
8 -4 . Help fund 13 students trip to their international competition in Indiana during June. 236
Concessions, raffle tickets, etc. 237
238
COMMUNITY CALENDAR 239
240
Community Calendar – A Look Ahead 241
May 13 , 201 3 through May 28, 201 3 242
Monday, May 20 5:30 pm, Community Room Budget Priorities Mtg. 243
Tuesday, May 28 5:30 pm, Community Room Council Work Session 244
Tuesday , May 28 6:30 pm, Council Chamb ers City Council Meeting 245
246
ADJOURN 247
248
There being no further business, Council Member Rafferty moved to adjourn at 7:25 p.m. Council 249
Member Stoesz seconded the motion. Motion carried unanimously. 250
251
These minutes were considered and approved at the regular Co uncil Meeting, May 28, 2013. 252
253
254
255
256
Julianne Bartell, City Clerk Jeff Reinert , Mayor 257
258
CITY COUNCIL
AGENDA ITEM 1D
STAFF ORIG INATOR: Lisa Hogstad -Osterhues , Deputy City Clerk
MEETING DATE: May 2 8 , 201 3
TOPIC: Resolution No. 1 3 -63 , Approving an Application
for a Temporary On -Sale Liquor License, a Cabaret
License, and an E xemption for Gambling Permit for
the Annual St. Joseph’s Catholic Church August Festival
VOTE REQUIRED: 3/5
INTRODUCTION
St. Joseph Church is hosting its annual August Festival on Saturday, August 1 0 and Sun day,
August 1 1 , 201 3 .
BACKGROUND
A s part of the festival , food and beverages including strong beer and wine will be served.
Although temporary on -sale liquor licenses are issued by the Minnesota Department of Public
Safety, local approval is required. Staff has verified that St. Joseph’s Church is eligible under
local ordinance for a temporary license.
The Church has also made applicati on to acquire a cabaret license. Bands will be playing live
music in the church parking lot on Saturday from 5:00 p.m. to 11:00 p.m. and Sunday from
1:00 to 5:00 p.m.
The Church has also applied for an Exempt Permit to allow charitable gambling. Non -profit
organizations are allowed under State gambling laws to apply for an exempt permit if they
conduct fewer than five (5) gambling occasions per year. St. Joseph Catholic Church conducts
fewer than five.
St. Joseph’s has completed the necessary applications, has submitted a current certificate of
insurance and has paid the proper fees. The applications and the certificate of insurance are
filed in the office of the City Clerk. Staff conducted a background investigation and found no
reason to deny the licensing requests .
RECOMMENDATION
Approval of Resolution No. 1 3 -63 , Approving an Application for a Temporary On -Sale Liquor
License, a Cabaret License, and an Exemption for Gambling Permit for the Annual St. Joseph’s
Catholic Church August Festival.
CITY OF LINO LAKES
RESOLUTION NO. 1 3 -63
Approving Applications for a Temporary L iquor License, Cabaret License and Lawful
Gambling Permit for the Annual Festival a t St. Joseph’s Catholic Church
WHEREAS , St. Joseph’s Catholic Church has made applicatio n for a temporary on -sale
liquor license, a caba ret license and an exempt lawful gambling permit for their annual Summer
Festival to be held August 1 0 th and 1 1 th , 201 3 ; and
WHEREAS , city staff has reviewed the applications submitted for festival events
(temporary on -sale liquor, exempt gambling and cabaret) for concurrence with city regulations;
and
WHEREAS , the City of Lino Lakes staff has conducted a background investigation of
the applicants; and
WHEREAS, St. Joseph’s Catholic Church has paid the r equired license fees ;
NOW, THEREFORE, BE IT RESOLVED by The City Council of The City o f Lino
Lakes, Minnesota:
That the City Council hereby approves a temporary on -sale liquor license, a cabaret license and
an application for exemption for gambling per mit for the 201 3 St. Joseph’s Catholic Church
Festival.
Adopted by the Council o f the City of Lino Lakes this 28 th day of May , 201 3 .
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly secon ded by Council Member _____ and upon vote being
taken thereon, the following voted in favor thereof:
The following voted against same:
_____________________
Jeff Reinert , Mayor
ATTEST:
___________________________________
Lisa Hogstad -Osterhues , Deputy City Clerk
CITY COUNCIL
AGENDA ITEM 1 E
STAFF ORIG INATOR: Lisa Hogstad -Osterhues , Deputy City Clerk
MEETING DATE: May 28, 2013
TOPIC: Consider Approval of Resolution No. 1 3 -6 5 , Application to
conduct Exempt Lawful Gambling and Temporary On -Sale
Liquor License for Lino Lakes Lions Club
VO TE REQUIRED: 3/5
INTRODUCTION
The Lino Lakes Lions Club is planning its annual fundraising “pheasant feed” to be held on
Saturday, September 1 4 , 201 3 at St. Joseph Catholic Church, 171 Elm Street.
BACKGROUND
The Lion s Club is requesting app roval of a 1 to 4 Day Temporary On -Sale Liquor L icense ,
which is n ecessary to allow the group to mix and dispense liquor that will be served as part of the
dinner. The club is also requesting approval of an application to conduct o ff -site gambling.
Staff has determined that the Lino Lakes Lions Club is eligible for both of these licenses under
city regulations. The Police Department has conducted the required background check on the
applicant and reports no reason to deny the requ est.
A copy of the applications and a copy of the certificate of liquor liability insurance are on file in
the city clerk's office.
RECOMMENDATION
Approve Resolution No. 1 3 -65 , approving a 1 to 4 Day Temporary On -S al e liquor license and a
permit to con duct exempt lawful gambling.
CITY OF LINO LAKES
RESOLUTION NO. 1 3 -65
Resolution Approving Lino Lakes Lions Club
Application For a 1 - 4 Day Te mporary On -Sale Liquor License and Application f or
Exempt Lawful Gambling
WHEREAS , Minnesota Statute s , Chapter 340 A , allows the city counci l to issue a
temporary on -sale liquor license to a non -profit organization in connection with a social event
sponsored by the licensee and held within the city limits; and
WHEREAS, the Lino Lakes Lions Club has submitted an application for a temporary
on -sale liquor license; and
WHEREAS, the Lino La kes Lions Club has also submitted an application to conduct
exempt lawful gambling (raffle and paddlew heels) as part of their event ; and
WHEREAS , t he Lino Lake Lions Club is eligible to conduct lawful gamblin g under the
city’s regulations; and
WHEREAS , the Lino Lakes Lions Club has paid the required fee for these permits , and
WHEREAS , the Alcohol & Gambling Enforcement Division requires that the
applications be approved by the City of Lino Lakes City Counc il before submitting for approval;
NOW, THEREFORE, BE IT RESOLVED by The City Council of The City of Lino Lakes,
Minnesota:
T hat the Lino Lakes City Council hereby approves the request of the Lino Lakes Lions Club for
a temporary on -sale liquor license and approval to conduct exempt lawful gambling at St. Joseph
Catholic Church on September 1 4 , 201 3 .
Adopted by the Council of the City of Lino Lakes this 2 8 th day of May , 201 3 .
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member _____________ and upon vote
being taken thereon, the following voted in favor thereof:
The following voted against same:
___________________________________
Jeff Reinert , Mayor
ATTEST:
___________________________________
Lisa Hogstad -Osterhues, Deputy City Clerk
CITY COUNCIL
AGENDA ITEM 1 F
STAFF ORIG INATOR: Lisa Hogstad -Osterhues, Deputy City Clerk
MEETING DATE: May 28 , 201 3
TOPIC: Resolution No. 1 3 -66 , Approving a Permit for Consumer
Fireworks Sales for Super Target
VOTE REQUIRED: 3/5
INTRODUCTION
Ch apter 1002 of the City Code sets forth the city’s regulations in regard to the sale of consumer
fireworks. The city’s regulations mirror th ose provided by state statute with the addition of
certain terms and conditions for issuance of a local permit.
BAC KGROUND
The City has received an application from Target Corporation requesting a permit to sell
fireworks at their Super Target facility located at 749 Apollo Drive. With the permit
application the City has received verification of the required liabilit y insurance. In turn the
applicant has been provided with a copy of the City’s regulations concerning the sale,
possession and use of consumer fireworks (Section 1002 of the Lino Lakes Code of
Ordinances) as well as a copy of the State’s regulations inclu ding information on what can be
sold.
The application and plans have been reviewed and approved by the Centennial Fire District.
RECOMMENDATION
Staff recommends that the city council approve Resolution No. 1 3 -66 , A uthorizing issuance of
an annual pe rmit for the sale of consumer fireworks to Target Corporation for the Super Target
store at 749 Apollo Drive.
CITY OF LINO LAKES
RESOLUTION NO. 1 3 -66
Approving Issuance of a n A nnual Permit Allowing the Sale of Consumer Fireworks a t
Super Target, 749 Apollo Drive
WHEREAS, the City has received a n application from Target Corporation requesting
permission to sell consumer fireworks at the Super Target st ore at 749 Apollo Drive in the C ity
of Lino Lakes; and
WHEREAS, the city has conducted a background inves tigation o f the applicant , and
WHEREAS, the fire department has revie wed the application and finds the requ est to be
in compliance with applicable fire codes and fire prevention regulations; and
WHEREAS , Target has paid the required license fees and is in compliance with city
ordinance;
Now, Therefore, Be It Resolved by The City Council of The City of Lino L akes:
T hat the City Council hereby approves an annu al permit for sale of consumer fireworks
for the Super Target Store at 749 Apollo Drive , effective upon the date of passage of this
resolution.
Adopted by the Council of the City of Lino Lakes this 28 th M ay of May, 201 3 .
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member _____________ and upon vote
being taken thereon, the following voted in favor thereof:
The fo llowing voted against same:
_____________________
Jeff Reinert, Mayor
ATTEST:
___________________________________
Lisa Hogstad -Osterhues , Deputy City Clerk
CITY COUNCIL
AGENDA ITEM 1G
STAFF ORIG INATOR: Lisa Hogstad -Osterhues , Deputy City Clerk
MEETING DATE: May 2 8 , 201 3
TOPIC: Resolution No. 1 3 -62 , Authorizing issuance
of a Special Event Permit for the Lino Lakes
YMCA Farmers Market
VOTE REQUIRED: 3/5
INTRODUCTION
City Code Chapter 615 are the C ity’s regulations regarding speci al events. The purpose of
the se regulations is to ensure that public events in the C ity are conducted with sufficient
consideration given to public saf ety issu es and to understand the need for city services. The
C ity charges a fee of $50 for special event permits but waives the fee for events sponsored by
non -profit groups.
BACKGROUND
The City has received an application from Sharna Braucks, Executive Direc tor of the Lino
Lakes YMCA , to conduct a Farmer’s Market in the C ity’s Village Green Park. The market
would be open to the public on Thursdays from 3:00 p.m. until 7:00 p.m. from Ju ne 2 0 through
September 1 2, 201 3 with the exception of the 4 th of July we ek . The purpose of the market is to
provide fresh fruits, veget ables and other Minnesota items to the community and promote
healthy eating habits.
The YMCA has submitted detailed plans indicating how the market site would be set up and
maintained during operations, items that would be allowed for sale, site cleanup as well as
parking plans. They have submitted a site plan also containing additional det ails about the
parking and use of the park facility . These plans have been reviewed and approved by staff,
including the police and fire department.
RECOMMENDATION
The Lino Lakes YMCA application for a special event permit meets the requirements of the
city code and has not been found to present any safety concerns. Therefore, staff recommends
that t he council approve Resolution No. 1 3 -62 , Authorizing issuance of a Special Event Permit
for the Lino Lakes YMCA Farmers Market.
CITY OF LINO LAKES
RESOLUTION NO. 1 3 -62
APPROVING A SPECIAL EVENT PERMIT FOR THE LINO LAKES YMCA
FARMERS MARKET
WHEREAS , the Executive Director the Lino Lakes YMCA has submitted an application
for a special event permit; and
WHEREAS , the YMCA wishes to establish a farmers market to be located at the City’s
Village Green Park, near the YMCA facility; and
WHEREAS , the farmers market would be held every Thursday from Ju ne 2 0 to
September 1 2, 201 3 except the week of July 4, between the hours of 3:00 p .m. and 7:00 p.m.;
and
WHEREAS , the YMCA has submitted detailed plans to set up and operate a farmers
market, including adequate parking plans; and
WHEREAS , city staff has reviewed the special event pla ns and have determined that
they meet the require ments of the C ity’s ordinances;
NOW, THEREFORE, BE IT RESOLVED by t he City Council of t he City o f Lino Lakes,
Minnesota:
That the City Council hereby authorizes the issuance of a Special Event Permit to the Lino Lakes
YMCA for Farmers Market to be held Thursdays, from June 20 t hrough September 12, 2013
except for the week of July 4 .
Adopted by the Council o f the City of Lino Lakes this 28 th day of May , 201 3 .
The motion for the adoption of the foregoing resolution was introduced by Council Member
_____________and was duly seconded by Council Member _____________ and upon vote
being taken thereon, the following voted in favor thereof:
The following voted against same:
_____________________
Jeff Reinert , Mayor
ATTEST:
_____________________________
Lisa Hogstad -Osterhues, C ity Cle rk
BOARD OF REVIEW MINUTES May 6, 2013
DRAFT
1
CITY OF LINO LAKES 1
MINUTES 2
BOARD OF APPEAL 3
4
DATE : May 6, 2013 5
TIME STARTED : 5:30 p.m. 6
TIME ENDED : 6:40 p.m. 7
MEMBERS PRESENT : Council M ember Stoesz , Roeser (arrived at 5:40), 8
Rafferty, O’Donnell and Mayor Reinert 9
MEMBERS ABSENT : none 10
11
Staff members present: City Administrator Jeff Karlson ; Community Development Director Michael 12
Grochala ; Public Safety Director John Swenson; City Planner Katie Larsen; City Clerk Julie Bartell 13
14
The council had continued the Board of Appeal meeting on Ap ril 22, 2013 to this date for the purpose 15
of continuing discussion of the following two appeals . In addition to City staff, two representatives of 16
the Anoka County Assessor’s Office were present: Appraiser Peggy Nordrum and Randy DeJong. 17
18
Peter Hitchcoc k, 448 Tanglewood Drive, Shoreview regarding his property in Lino Lakes 19
located at 355 Ash Street and the two acre lot next door – Mr. Hitchcock’s appeal relates to the 20
valuation of his property. There is a large difference between what he paid for this p roperty and the 21
value attached by the county. It was sold as a distressed property and also has some building issues. 22
23
Appraiser Nordrum reported that after review of Mr. Hitchcock’s appeal , she is recommending that 24
the two property valuations be reduce d as follows: 25
26
The reductions that will be in place for taxes payable 2014 are as follows: 27
28
PIN 31 -31 -22 -44 -0006 29
Previous Estimate Market Value = Land $74,700; Buildings $46,600 (Total $121,300) 30
Changed to = Land $63,000; Buildings $7,200 (Total $70,200) 31
32
PIN 31 -31 -22 -44 -0007 33
Previous Estimate Market Value = Land only $83,000 34
Changed to = Land only $63,000 . 35
36
Council Member O’Donnell moved to approve the reductions as indicated. Council Member Rafferty 37
seconded the motion. Motion carried on a unanimous voice vote. 38
39
Paul Johnson, Pine Acres Development Company – Mr. Johnson had explai ned at the initial 40
hearing that he and some partners bought property in Lino Lakes many years ago; he believes it was 41
platted around 1974. At one point he was advised by former City Administrator Randy Schumacher 42
to do an overplat, which he did and had re corded. The property is being charged by the plat even 43
though it can’t be developed anytime soon mainly because it is far away from water and sewer 44
BOARD OF REVIEW MINUTES May 6, 2013
DRAFT
2
infrastructure. At this point the taxes are more than $17,000 per year. He believes that, because the 45
pro perty is really undevelopable for a long time, it isn’t worth anything near the current valuation. 46
47
Community Development Director Grochala had been directed to look at the property and assist Mr. 48
Johnson in a vacation or whatever would be necessary to ref lect the correct value of the property. He 49
explained that he understands that the property in question is not being valued as a whole clear parcel 50
but is difficult to bring it back to that p osition and would also need to include vacation of roadway 51
plans. 52
53
Mr. Johnson recalled that he and his partners bought this property 45 years ago. He distributed a copy 54
of a letter from 1992 from former City Administrator Randy Schumacher to the Anoka County 55
Assessor ’s Office explaining the possibility of future devel opment of the Pine Oaks property and 56
requesting a reevaluation of the property valuation. Mr. Johnson asked tha t the City and County 57
honor the direction of the letter since the property is still quite far from any development plans. 58
59
The council discuss ed the history of the property, including the fact that it was a part of a proposed 60
development (Nature’s Refuge) that didn’t materialize. Mayor Reinert asked if there is any value to 61
the plat t ing that already exists for this property. Mr. Grochala s aid that he can’t see any value at this 62
point. 63
64
Mr. Joh nson noted that he would like to receive tax aba tement on the property . Ms. Nordrum 65
discussed her knowled ge of the history of this property and it’s valuation . She explained the range of 66
values that t he County is looking at and how the properties could be divided. She added that the 67
Board can act as they choose but whatever the action that is taken won’t impact taxes until payable 68
2014. Also there are special assessments involved. 69
70
Mr. Grochala added that Mr. Johnson could petition the city to vacate the streets that were planned 71
long ago. 72
73
Mayor Reinert asked Mr. Johnson if he would accept the division of property offered by the County 74
Appraiser that would offer approximately a one -half reduction i n valuation , and Mr. Johnson 75
responded that he would prefer that the taxes be abated. Mayor Reinert noted that the council should 76
be certain t hat the current plats are unbuildable before lowering the taxes to reflect that. Mr. 77
Grochala responded that the city’s zoning ordinance would call the property unbuildable . He added 78
that it would make sense for the city to see the plats go away . 79
80
The board concurred with the following action: 81
82
A reduction of the estimated market value payable in 2014 on seven parcels owned by Pine Acres 83
Development Company and that staff be directed to provide a list of those seven parcels and the 84
parcels for which the estimated market value was not decreased to Mr. Johnson. 85
86
Council Member Roeser moved to approve the reduc tion as indicated. Council Member O’Donnell 87
seconded the motion. Motion carried on a unanimous voice vote. 88
89
BOARD OF REVIEW MINUTES May 6, 2013
DRAFT
3
90
ADJOURN 91
92
There being no further business, t he meeting was adjourned at 6:40 p.m. 93
94
These minutes were considered and approved at the regular Coun cil Meeting on May 28, 2013 . 95
96
97
98
99
Julianne Bartell, City Clerk Jeff Reinert , Mayor 100
101
CITY COUNCIL
AGENDA ITEM 2A
STAFF ORIGINATOR: Al Rolek
MEETING DATE: May 28 , 201 3
TOPIC: Accept 2012 Annual Audit Report
VOTE REQUIRED: 3/5
BACKGROUND
Rachel Flanders and Chris Knopik of CliftonLarsonAllen, LLC will be in attendance at the meeting
to provide a brief overview of the City’s 20 12 Annual Financial Report, present the auditor’s
management analysis and answer any questions you may have with regard to the financial condition
of the City.
The 2012 annual audit was undertaken earlier this year, with field work being completed in April .
The auditors review all financial transactions and the financial reports of the City over the previous
year for their fairness in presentation and for full disclosure of all material aspects of the C ity’s
financial condition. This review is conducted in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in U.S. Government Auditing
Standards, issued by the Comptroller General of the United States. The auditors concluded that the
City’s financial statements for 20 12 presented fairly, in all material respects, the financial position
of the City as of December 31, 2012 . The auditors also issue their reports on the City’s legal
compliance with certain laws, regulations, contracts, etc., our internal control structure, and
management issues.
It should be noted that the City has received the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers Association of the United States and
Canada for its 2011 Comprehensive Annual Financial Report. This is the six teen th consecutive
year that the city has received this award. We believe that the report issued for 2012 continues to
uphold the standards of reporting excellence that this prestigious award represents.
Following the presentation by Ms . Flanders and M r. Knopik, staff recommends that the City
Council formally, by motion, accept the 2012 Annual Audit Report.
RECOMMENDATION
Approve a motion accepting the 2012 Annual Audit Report.
ATTACHMENTS
201 2 Comprehensive Annual Financial Report
201 2 Other Audit Reports
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2012
Prepared By: Finance Department
Alan Rolek, Director of Finance
Paula Schloer, Accountant
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
I. INTRODUCTORY SECTION
Principal City Officials 1
Organizational Chart 2
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting 8
II. FINANCIAL SECTION
Independent Auditors’ Report 9
Management’s Discussion and Analysis 12
Basic Financial Statements
Statement of Net Position Statement 1 22
Statement of Activities Statement 2 23
Balance Sheet - Governmental Funds Statement 3 25
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position Statement 4 27
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Funds Statement 5 28
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance to the Statement
of Activities Statement 6 30
Statement of Net Position - Proprietary Funds Statement 7 31
Statement of Revenues, Expenses and Changes in Net Position -
Proprietary Funds Statement 8 32
Statement of Cash Flows - Proprietary Funds Statement 9 33
Statement of Net Position - Fiduciary Funds – Agency Funds Statement 10 34
Notes to Financial Statements 35
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual Statement 11 60
Notes to Required Supplementary Information 66
Schedule of Funding Progress for Postemployment Benefit Plan Statement 12 67
Combining Fund Financial Statements
Combining Balance Sheet – Nonmajor Governmental Funds Statement 13 68
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance – Nonmajor Governmental Funds Statement 14 74
Special Revenue Fund – Program Recreation:
Schedule of Revenues, Expenditures and Changes in Fund
Balance – Budget and Actual Statement 15 80
Statement of Changes in Assets and Liabilities – Fiduciary Funds –
Agency Funds Statement 16 81
Supplementary Financial Information
Combined Schedule of Indebtedness Exhibit 1 82
Schedule of Deferred Tax Levies Exhibit 2 84
Debt Service Payments to Maturity - All Bonds Exhibit 3 86
Insurance in Force Exhibit 4 89
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 90
III. STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years Table 1 91
Changes in Net Position - Last Ten Fiscal Years Table 2 92
Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 94
Changes in Fund Balances, Governmental Funds – Last Ten Fiscal Years Table 4 96
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years Table 5 98
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Direct and Overlapping Property Tax Rates -
Last Ten Fiscal Years Table 6 99
Principal Property Taxpayers Table 7 100
Property Tax Levies and Collections – Last Ten Fiscal Years Table 8 101
Ratios of Outstanding Debt by Type Table 9 103
Direct and Overlapping Governmental Activities Debt Table 10 105
Legal Debt Margin Information Table 11 106
Demographic and Economic Statistics Table 12 108
Principal Employers, Current Year and Nine Years Ago Table 13 109
Full-Time Equivalent Employees by Type Table 14 110
Operating Indicators by Function/Program Table 15 112
Capital Asset Statistics by Function/Program Table 16 114
I.
INTRODUCTORY
SECTION
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2012
1
Elected Officials
Term Expires
Mayor:
Jeff Reinert December 31, 2013
Council Members:
Dale Stoesz December 31, 2015
Rob Rafferty December 31, 2013
Jeff O’Donnell December 31, 2013
Dave Roeser December 31, 2015
Appointed Personnel
City Administrator Jeff Karlson
Director of Finance Alan Rolek
Director of Public Safety John Swenson
Director of Community Development Michael Grochala
Director of Public Service Rick DeGardner
2
City of Lino Lakes Organizational Chart
Cable
Parks and Recreation
Economic Development
Planning and Zoning
Fire
Environmental
Commissions
City Clerk
Engineering Attorney Fiscal
Professional Consultants
Parks
Public Works
Recreation
Public Services
Police
Emergency Management
Public Safety
Human Resources
Administrative Services
Administration
Planning
Economic Development
Engineering
Environmental Services
Inspections
Community Development
Accounting
Management Information Systems
Utility Billing
Finance
City Administrator
Honorable Mayor
and
City Council
Citizens
3
May 22, 2013
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Minnesota State law requires that cities over 2,500 popula tion 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 genera lly accepted auditing standards by a firm of licensed
certified public accountants and submit them to the state aud itor. 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, 2012.
This report consists of management ’s representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility fo r the completeness and reliability of all of the
information presented in this report. To provide a r easonable basis for making these representations, management
of the City of Lino Lakes has established a comprehensiv e 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 statemen ts in conformity with GAAP. Because the cost of internal
controls should not outweigh their bene fits, the City’s comprehensive framewo rk of internal controls has been
designed to provide reasonable rather than absolute assu rance that the financial statements will be free from
material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial
report is complete and reliable in all material respects.
The City of Lino Lakes’ financial statements have been audited by CliftonLarsonAllen LLP, a firm of licensed
certified public accountants. The goal of the independent audit was to provide reasonable assurance that the
financial statements of the City for the fiscal year e nded December 31, 2012, 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 presentati on. The independent auditor concluded, based upon the
audit that there was a reasonable basis for rendering an unqua lified opinion that the City’s financial statements for
the fiscal year ended December 31, 2012, are fairly presented in conformity with GAAP. The independent
auditor’s report is presented as the first compone nt of the financial section of this report.
GAAP require that management provide a narrative intr oduction, overview and analysis to accompany the basic
financial statements in the form of Management’s Discu ssion and Analysis (MD&A). This letter of transmittal is
designed to complement MD&A and should be read in c onjunction with it. The City of Lino Lakes’ MD&A can
be found immediately following the re port of the independent auditors.
4
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a grow ing community in the southeast corner of the County of
Anoka. It covers an area of 33 square miles and h as a population of approximately 20,300. The population has
more than doubled from the 1990 census figure of 8,807 and has grown by 21% since 2000. Within the City’s
borders lies the 2,550 acre Rice Creek Chain of Lakes Re gional 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 and fire), public works (streets and fleet), pa rks and recreation, conservation of natural resources
(environmental and solid waste abatement), public impr ovements, providing and maintaining sanitary and storm
sewer, water infrastructure, and two ente rprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lak es’ financial planning and control. All divisions are
required to submit appropriations requests to the City admi nistrator for review and consolidation into a proposed
budget. The City administrator is responsible for s ubmitting the proposed annual budget to the City Council in
August of each year. The city council is required to hol d 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 r eceipts exceed the estimate. Division directors may make
transfers of appropriations within a department, but tr ansfers of appropriations between departments require
council approval. Budget-to-actual comparisons for the general fund and the recreation program fund, the only
funds for which an annual budget has been adopted, are provided in this report be ginning on pages 60 and 80,
respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered from the
broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of th e total tax base to 9% in 2011. Development of three
industrial parks - Apollo Business Park on 35W, Marsha n Industrial Park on Lake Drive, and the Clearwater
Creek Development Center on 35E, provided excelle nt 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 surr ounding the 35W/Lake Drive interchange, was developing
at a rapid pace. SuperTarget and Kohl’s anchor the s hopping center quadrant, while Apollo Business Park brought
approximately 1,000 new employees to the area. Land w as purchased by Anoka County on a third quadrant for
future development of a regional library. Due to economic conditions, the County has pus hed back construction of
the library to 2015.
5
Factors Affecting Financial Condition (Continued)
In 2004, the City entered into an agreement with a mast er 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 th e vision for Town Center. A workforce family housing
and assisted living facility provide diversity in hous ing 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 developmen t. Both the master developer and lender defaulted,
sending the remaining 22 acres intended for townhomes and co mmercial uses into tax forfeit. However, the solid
foundation that was built and strong interest by develope rs prior to the recession ensures that better economic
times will once again bring the interest in residential a nd commercial growth needed to complete the vision.
Street, streetscape, water, sewer, and storm water impr ovements, as well as a small community park, have been
installed within the development area and assessed to the development. This $11.1 million improvement was
financed through the joint efforts of MNDOT, Anoka Count y and the City of Lino Lakes. The City has issued
$4,215,000 in G.O. Tax Increment bonds and will use tax in crement financing and Minnesota State Aid funds to
finance its portion of the project cost. Once construction gains its footing again the City can assess the benefitting
properties. The City continues to look for ways to resurrect the project and strives to be prepared to market the
property when the economy recovers.
Building activity and development continued to be so ft in 2012, reflecting the nationwide market. Building
permits for new homes in 2012 numbered 25, compared to 34 in 2011. This represents about 1/4 of the new home
permits issued in 2007 and is dow n by approximately 87% from 2005.
In anticipation of a strengthening economy, the City t ook the lead on developing the infrastructure needed to
service future growth on the 35E/County Road 14 intercha nge 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 bri dge reconstruction project is being financed through Anoka
County, with the City issuing an initial $4.26 million Genera l Obligation Note to the County. Due to cost savings
in this project the Note was amended to $3.695 million in 2011.
With both major interstate interchanges complete, the C ity is preparing for development of several hundred acres
in the northeast quadrant of 35E/14. Interest in the comme rcial interchange has spurre d planning for an extension
of Otter Lake Road North, which will leave the City well poised to accommodate significant future industrial,
commercial and residential development.
6
Factors Affecting Financial Condition (Continued)
Long-term financial planning. The City’s current five-year financial plan, adopted in January, 2008, identifies
street and utility improvements totaling $23,287,990 ove r the period of 2008 through 2012. 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 stormwat er management fund and vote r-approved tax levies. Also
included in the final year of the plan is a feasibility study for a new public works facility. Scheduled capital
equipment and office equipment needs and the financing fo r those needs are also incl uded in the plan. The five-
year plan also includes funding projections for operati ons and operating impacts for the period of 2008-2012. This
plan is in the process of being revised to refl ect the anticipated activity through the year 2017.
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 polic y which identified the required designated
amounts in the Fund Balance of the General Fund at fi scal year-end and directed the transfer of any excess
revenues to other funds for specific purposes, as identif ied 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 gene ral 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 res ources. The unassigned general fund balance as of December
31, 2012 was $5,053,031, which is 56% 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 la w. Investments are made by minimizing credit and market risks while
maintaining a competitive yield. Funds are invested in certificates of deposit, commercial paper and U.S.
government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the
investment policy annually.
The City’s investment policy’s primary objective is safety of principal. Therefore, all deposits were either insured
by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened
economy, a historically low interest rate environment has persisted over the last several years and has had a
dramatic impact on the city’s investment earnings. The average yield on investments for 2012 was 1.08%.
Investment income includes positive or negative changes in the fair value of investments. 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 temporar y changes in the fair value of investments the City
intends to hold to maturity.
7
Awards and Acknowledgements
The Government Finance Officers Association of the Unite d States and Canada (GFOA) awards the Certificate of
Achievement for excellence in financial reporting to citi es that meet certain criteria. The City of Lino Lakes
received this award for its comprehensive annual financ ial report for the year ended December 31, 2011. This
marks the sixteenth consecutive year the City has received this prestigious award. A governmental unit must
publish an easily readable and efficiently organized compre hensive annual financial repor t, the contents of which
conform to program requirements. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2012 report to
GFOA for consideration of the Certificate of Achievemen t for Excellence in Financia l Reporting. We believe our
current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of the
Finance Department, auditors and other city staff. A sp ecial thank you goes to city accountant, Paula Schloer, for
her efforts in assembling and reviewing information pr esented in this report. I also want to express my
appreciation to the Mayor and City Council for thei r support for maintaining the highest standard of
professionalism in the management of the financial operation of the City.
Respectfully submitted,
Alan J. Rolek
Director of Finance
8
II.
FINANCIAL
SECTION
9 An independent member of Nexia International
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statement s of the governmental activities, the business
type activities, each major fund, and the aggregate remaining fund information of the City of Lino
Lakes, as of and for the year ended December 31, 2012, and the related notes to the financial
statements, which collectively comprise the City’s basic financial statements as listed in the table of
contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards ,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors’ judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Honorable Mayor and
Members of the City Council
City of Lino Lakes
10
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental ac tivities, the business-type activities, each major
fund, and the aggregate remaining fund information of the City of Lino Lakes as of December 31, 2012,
and the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of
America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information, and schedule of funding
progress to postemployment benefit plan, as listed in the table of contents be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial statements,
is required by the Governmental Accounting Standards Board who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational, economic,
or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or prov ide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Lino Lakes’ basic financial statements. The combining fund financial
statements and other supplementary financial information, the introductory section, and statistical
section are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining fund statements and other supplementary financial information are the responsibility of
management and were derived from and relate directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining fund statements and other supplementary financial
information are fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory section and statistical section have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or
provide any assurance on it.
Honorable Mayor and
Members of the City Council
City of Lino Lakes
11
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated May 22,
2013, on our consideration of the City of Lino Lakes' internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the result of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City of Lino Lakes’
internal control over financial reporting and compliance.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
May 22, 2013
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
12
As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes’ financial
statements this narrative overview and analysis of the fi nancial activities of the City of Lino Lakes for the
fiscal year ended December 31, 2012. We encourage reader s to consider the information presented here
in conjunction with additional information that we hav e furnished in our letter of transmittal, which can be
found on pages 3-7 of this report.
FINANCIAL HIGHLIGHTS
The assets of the City of Lino Lak es exceeded its liabilities at the clos e of the most recent fiscal year
by $92,300,600 (net position ). Of this amount $29,741,051 (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 $2,220,256 primarily due to an advance of State Municipal
State Aids funds.
As of the close of the current fiscal year, t he City of Lino Lakes’ gov ernmental funds reported
combined ending fund balance of $21,524,101, an incr ease of $4,590,561 in comparison with the
prior year primarily due to an advanc e of State Municipal State Aids funds. Approximately 8% of this
total amount, or $1,790,303, is available for spending at the City’s discretion (unassigned fund
balance ).
At the end of the current fiscal year, unassigned fund balance for the general fund was $5,053,031, or
56% of total general fund expenditures and other financing uses.
The City’s total bonded debt decreased by $385,000 (2.2%) during the current fiscal period. The City
issued a general obligation bond in the amount $2,015,000 to finance the Birch/Ware and Lake
Dr/Main traffic signal projects. Principal in t he amount of $2,550,000 was retired during the year.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes’ basic
financial statements. The City of Lino Lakes’ basic financial statements comprise three components:
1. Government-wide financial statements
2. Fund financial statements
3. Notes to the financial statements
This report also contains other supplementary info rmation in addition to the basic financial statements
themselves.
Government-wide financial statements The government-wide financial statements are designed to
provide readers with a broad overview of the City of Lino Lakes’ finances, in a manner similar to private-
sector business.
The statement of net position presents information on all of the City of Lino Lakes’ assets and liabilities,
with the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the financial position of the City of Lino Lakes is
improving or deteriorating.
The statement of activities presents information showing how t he City’s net position changed during the
most recent fiscal year. All changes in net positi on 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 so me items that will only result in cash flows in future fiscal periods
(e.g., uncollected taxes and earned but unused compensated absences and OPEB liabilities).
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
13
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Government-wide financial statements (Continued) Both of the government -wide financial statements
distinguish functions of the City of Lino Lak es 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 co sts through user fees and charges (business-type activities ). The
governmental activities of the City of Lino Lak es include general government, public safety, public
services, parks, recreation and forestry, conservati on of natural resources and community development.
The business-type activities of the City of Lino Lakes include a water utility and sewer utility.
The government-wide financial statements can be found on pages 22-24 of this report.
Fund financial statements A fund is a grouping of related accounts that is used to maintain control over
resources that have been segregated for specific activi ties or objectives. The City of Lino Lakes, like
other state and local governments, uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements. A ll of the funds of the City of Lino Lakes can be divided into three
categories: governmental funds, propr ietary 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 stat ements, governmental fund fi nancial statements focus on near-term
inflows and outflows of spendable resources , as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government’s near-term
financing requirements.
Because the focus of governmental funds is na rrower than that of the government-wide financial
statements, it is useful to co mpare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financ ial statements. By doing
so, readers may better understand the long-term im pact of the government’s near-term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a re conciliation to facilitate this comparison between
governmental functions and governmental activities.
The City of Lino Lakes maintains thirty-five indi vidual governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of revenues,
expenditures, and changes in fund balances for the G eneral fund, G.O. Improv ement Bonds 2005A fund,
Improvement Note 2009A fund, Municipal State Aid fund, Area and Unit Charge fund and Traffic Signal
all of which are considered to be major funds. Data from the other twenty-nine governmental funds are
combined into a single, aggregate presentation. Individual fund data for each of these nonmajor
governmental funds is provided in the form of combining statements elsewhere in this report.
The City of Lino Lakes adopts an annual appropriat ed budget for its general and program recreation
special revenue funds. A budgetary comparison stat ement has been provided for these funds to
demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 25 through 30 of this report.
Proprietary funds – The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities.
The proprietary fund statements prov ide the same type of informati on as the government-wide financial
statements, only in more detail. T he proprietary fund financial statement s provide separate information for
the sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The
basic proprietary fund financial statements c an be found on pages 31 through 33 of this report.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
14
OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED)
Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for
individuals, private organizati ons, or other governments.
Notes to the financial statements – The notes provide additional inform ation that is essential to a full
understanding of the data provided in the government-wide and fund financ ial statements. The notes to
the financial statements can be found on pages 35-59 of this report.
Other information – The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 68-81 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. The City of Lino Lakes’ assets exceeded liabilities by $92,300,600 at the close of the most
recent fiscal year, an increase of $2,220,256 from the previous year. This increase is primarily due an
advance in Municipal State Aid (MSA) construction funds. The City received an advance on this funding
source equal to 5 years of the annual allocation to the City.
By far the largest portion of the City of Lino Lakes’ net position (55%) refl ects its net investment in capital
assets (e.g. land, buildings, machinery, equipment, and infrastructure. The City of Lino Lakes uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City of Lino Lakes ’ investment in its capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other sources,
since the capital assets themselves c annot be used to liquidate these liabilities.
Condensed versions of the statements of net posit ion at December 31, 2012 and 2011 are as follows:
201220112012201120122011
Current and Other Assets34,456,692 $ 30,125,796 $ 12,194,619 $ 11,292,527 $ 46,651,311 $ 41,418,323 $
Capital Assets 39,634,563 42,067,496 28,798,095 29,621,802 68,432,658 71,689,298
Total Assets 74,091,255 72,193,292 40,992,714 40,914,329 115,083,969 113,107,621
Noncurrent Liabilities Outstanding 21,875,614 21,845,856 43,410 450,334 21,919,024 22,296,190
Other Liabilities 815,149 685,320 49,196 45,767 864,345 731,087
Total Liabilities 22,690,763 22,531,176 92,606 496,101 22,783,369 23,027,277
Net Position:
Net Investment in Capital Assets 22,166,342 24,600,103 28,798,095 29,216,866 50,964,437 53,816,969
Restricted 11,595,112 11,598,803 - - 11,595,112 11,598,803
Unrestricted 17,639,038 13,463,210 12,102,013 11,201,362 29,741,051 24,664,572
Total Net Position51,400,492 $ 49,662,116 $ 40,900,108 $ 40,418,228 $ 92,300,600 $ 90,080,344 $
Governmental ActivitiesBusiness-Type ActivitiesTotal
Of the remaining balance of the City of Lino Lakes’ net position, restricted net position (13%) are to be
used for debt service requirements and a nonexpendable environmental fund. Unre stricted net position
(32%) may be used to meet the government’s ongoing obligations to citizens and creditors.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
15
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three
categories of net position, both for the government as a whole, as we ll as for its separate governmental
and business-type activities.
Governmental activities Governmental activities increased the City of Lino Lakes’ net position by
$1,738,376. Increases in Capital Grant s and Contributions for Public Services , primarily due to an MSA
advance against future annual allocations, as well as reductions in community development activities,
staffing levels, and interest payments on long-term debt we re directly attributable to the increase in City’s
net position.
Business-type activities Business-type activities increased the City of Lino Lakes’ net position by
$481,880. Revenue from Charges for Services and Inve stment earnings provided directly for this
increase.
Condensed statements of revenues, expenses, and changes in net position highlights are as follows for
the years ended December 31, 2012 and 2011:
201220112012201120122011
REVENUES
Program Revenues:
Charges for Services $ 1,476,261 $ 1,420,465 $ 2,877,590 $ 2,584,292 $ 4,353,851 $ 4,004,757
Operating Grants and Contributions 450,179 593,798 - - 450,179 593 ,798
Capital Grants and Contributions 5,125,693 7,347,613 20,018 1,462 5,145,711 7,349,075
General Revenues:
Property Taxes 8,461,621 8,513,559 - - 8,461,621 8,513,559
Franchise Taxes 95,003 149,118 - - 95,003 1 49,118
Other Taxes 54,085 106,128 - - 54,085 1 06,128
Contributions Not Restricted to
Specific Programs 4,941 4,072 - - 4,941 4,072
Unrestricted Investment Earnings 202,828 251,250 102,073 126,215 304,901 377,465
Gain on Disposal of Capital Assets 4,175 37,579 - - 4,175 37,579
Total Revenues 15,874,786 18,423,582 2,999,681 2,711,969 18,874,467 21,135,551
EXPENSES
General Government 1,883,961 1,990,137 - - 1,883,961 1,990,137
Public Safety 4,046,415 4,019,101 - - 4,046,415 4,019,101
Public Service 5,584,283 8,110,979 - - 5,584,283 8,110,979
Parks, Recreation and Forestry 1,210,867 1,218,472 - - 1,210,867 1,218,472
Conservation of Natural Resources 184,051 139,544 - - 184,051 139 ,544
Community Development 430,121 617,747 - - 430,121 617 ,747
Interest on Long-Term Debt 837,755 927,535 - - 837,755 927 ,535
Water - - 949,121 966,643 949,121 966 ,643
Sewe r - - 1,527,637 1,638,063 1,527,637 1,638,063
Total Expenses 14,177,453 17,023,515 2,476,758 2,604,706 16,654,211 19,628,221
CHANGE IN NET POSITION
BEFORE TRANSFERS 1,697,333 1,400,067 522,923 107,263 2,220,256 1,507,330
Transfers 41,043 66,122 (41,043) (66,122) - -
CHANGE IN NET POSITION 1,738,376 1,466,189 481,880 41,141 2,220,256 1,507,330
Net Position - Beginning of Year 49,662,116 48,195,927 40,418,228 40,377,087 90,080,344 88,573,014
NET POSITION - END OF YEAR 51,400,492 $ 49,662,116 $ 40,900,108 $ 40,418,228 $ 92,300,600 $ 90,080,344 $
Governmental ActivitiesBusiness-Type ActivitiesTotal
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
16
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the government activities ’ direct program revenues
with their expenditures. Any shortfalls in direct re venues are primarily support ed by property tax levy or
general state aid.
Expenses and Program Revenues – Governmental Activities
ExpensesRevenues
General government1,883,961 $ 148,564 $
Public safety4,046,415 $ 814,168 $
Public services5,584,283 $ 5,820,462 $
Parks, recreation and forestry1,210,867 $ 191,832 $
Conservation of Natural Resources184,051 $ 60,167 $
Community development430,121 $ 16,940 $
Interest on long-term debt837,755 $ -$
14,177,453 $ 7,052,133 $
Revenues by Source – Governmental Activities
Charges for services
9%
Operating grants and
contributions
3%
Capital grants and
contributions
32%
Property taxes
53%
Franchise taxes
1%
Unrestricted grants
and contributions
0%
Unrestricted
investment earnings
1%Other
1%
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
17
GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
Below are specific graphs that provide comparisons of the business-type activities’ direct program
revenues with their expenditures. Excess revenues are retained within each fund until such time that
capital replacement is needed.
Expenses and Program Revenues – Business-type Activities
$-
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
WaterSewer
Expenses
Revenues
Revenues by Source – Business-type Activities
Charges for services
95%
Operating grants and
contributions
0%
Capital grants and
contributions
1%
Other
4%
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
18
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with
finance related legal requirements.
Governmental Funds – The focus of the City of Lino Lakes’ governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City of Lino Lakes’ financing require ments. GASB Statement 54, implemented for 2011,
divides fund balances into five categories: Nonspendable, Restricted, Committed, Assigned and
Unassigned. Definitions of these categories can be found in Note 1.O in the Notes to the Financial
Statements. I n particular, unassigned fund balance may serve as a useful m easure of a government’s net
resources available for unrestricted spending at the end of the fiscal year. Approximately 8% of the total
fund balance amount, or $1,790,303, constitutes unassigned fund balance , which is available for
spending at the government’s discreti on. The remainder of fund balance is not available for new spending
because it has already been committed for other purposes . As of the end of the current fiscal year, the
City of Lino Lakes’ governmental funds repor ted combined ending fund balances of $21,524,101, an
increase of $4,590,561, or 27%, from t he previous year. This increase is primarily due to the receipt of an
advance on future MSA allocations.
The general fund is the primary operating fund of the Ci ty of Lino Lakes. At the end of the current fiscal
year, unassigned fund balance of the general fund stood at $5,053,031, wh ile the total fund balance was
$5,233,817. As a measure of the gener al fund’s liquidity, it may be useful to compare unassigned fund
balance and total fund balance to total fund expenditures and financing uses. Unassigned fund balance
represents 56% of total general fund expenditure s and financing uses, while total fund balance
represents 58% of that same amount.
The fund balance of the City of Lino Lakes’ general fund decreased by $371,363 during the current fiscal
year, while the city budget anticipat ed the use of up to $368,183 of the general fund balance. Overall, the
continued soft real estate market again resulted in r educed building activities this year which decreased
permit revenue. Even as signs of economic recovery were being seen, the remaining effects of the
recession also had an impact on property tax delinquencie s. In addition, reduced expenditures, primarily
for personal services through vacant positions, and contractual services helped to offset the reduced
revenues. Overall, the general f und’s revenues were within approx imately 1.5% of the amended budget,
while expenditures and transfers were 1.4% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund deficit of ($2,003,261). This fund is related to
the bonds issued for the Legacy Woods Edge improvem ent project. The payment of debt service and
delinquency in the collection of special assessment s dedicated to this issue caused a significant
decrease in this fund. An interfund loan from the C apital Improvements fund has aided in the payment of
debt service for this issue.
The Improvement Note 2009A fund, to service the debt issued to Anok a County as the City’s financial
commitment for the I-35E interchange project, ended the year with a fund balance of $491. This note,
which was originally in the amount of $4,260,000, was reduced in 2011 to the current amount of
$3,695,000 to reflect cost savings duri ng the contruction of this project.
The Municipal State Aid fund, a capital projects fund used to finance reconstruction of state aid eligible
streets, ended the year with a f und balance of $5,037,136. As stated ear lier, this fund received a large
advance from the Minnesota Municipal State Aid equal to the next five annual construction installments.
These funds will be used over the next several year s to pay debt service on the Tax Increment Bonds
2007A and the Improvement Notes 2009A, and for future MSA projects.
The area and unit charge fund has a total f und balance of $3,972,716, of which $496,000 is
nonspendable due to advances to other funds, and $3,476,716 is assigned for financing capital
improvements. The fund balance duri ng the current year increased by $144,080, due in large part to the
partial repayment of an interfund l oan from the Dedicated Parks fund.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
19
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS (CONTINUED)
Governmental Funds (Continued)
The Traffic Signal Fund ended the year with a to tal fund balance of $463,247. The GO Bond 2012A was
issued during the year to finance this improvement. Intergovenmental revenues from Anoka County also
contribute toward the cost of this project. The tota l fund balance is assigned toward the completion of this
project, expected to be done in 2013.
Proprietary funds – The City of Lino Lakes’ proprietary funds provide the same ty pe of information found
in the government-wide financial st atements, but in more detail.
The water fund has total net position at year-end of $18,313,145, of which $4,330,637 are unrestricted.
The increase in net position of $455,348 was primarily due to operating income and investment earnings.
Total net position in the sewer fund at the end of 2012 were $22,586,963, of which $7,771,376 was
unrestricted. While operations for the year result ed in a net loss of ($21,856), net position increased
$26,532 during the current year result ing primarily investment earnings.
The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer Rates
were unchanged in 2012. A review of utility rates, begun in 2012, is scheduled for for completion in 2013.
GENERAL FUND BUDGETARY HIGHLIGHTS
The original budget was amended several times duri ng the year reflecting reductions licences and
permits, public safety charges for services and gas franchise fees, increases in MSA maintenance aid
and fines revenue, and reallocating resources within the original budget.
Revenues were $133,851 under budget for the year. This is due primarily to delinqencies in property tax
collections. Lower building activity due to the rece ssed economy and, therefore, fewer new construction
building permits being issued was also a factor. St ate intergovernmental revenues for police PERA aid
were below budgeted levels for the year due to position vacancies. Other state aids were lower due to the
elimiation of a grant-eligible position, reducing the am ount of grant reimbursments. Public safety charges
for service were over budget due to higher than expected traffic control contracts. A reduction in the gas
franchise fee rate also resulted in reduced revenue.
Expenditures came in under budget by $130,671 due mainly to lower than expected personal services
costs from vacant positions and r educed benefit costs. Energy costs for fuels and electricity were higher
than budgeted amounts, and supplies cost s were generally lower than antic ipated. There were also net
transfers from the general fund of $842,250. This re sulted in a net fund balance decrease of $371,363 for
the fiscal year, slightly more than the planned reduction of $368,183.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
20
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets – The City of Lino Lakes’ investment in c apital assets for its governmental and business-
type activities as of December 31, 2012, is $68,432,658. This investment in capital assets includes land,
buildings, office equipment and furniture, vehicles , machinery and equipment, other capital assets, and
infrastructure. This represents a dec rease in the City of Lino Lakes’ in vestment in capital assets of
approximately 5%. Due to economic conditions, no new infrastructure projects were undertaken by the
City, and therefore, the only additions were from projects in progress. The decrease within the
governmental activities is attributable to the depr eciation of buildings, cons tructed streets, underground
infrastructure and vehicles. Within the business-type activities decreases were also attributable to
depreciation of existing assets of the water and sewer funds.
201220112012201120122011
Land3,275,859 $ 3,275,859 $ -$ -$ 3,275,859 $ 3,275,859 $
Construction in Progress- 211,705 - - - 211,705
Buildings3,324,186 3,542,239 - - 3,324,186 3,542,239
Office Equipment and Furniture450,739 447,690 - - 450,739 447,690
Vehicles1,148,061 1,192,147 - - 1,148,061 1,192,147
Machinery and Shop Equipment392,625 197,507 195,903 204,551 588,528 402,058
Other Equipment205,040 232,546 - - 205,040 232,546
Infrastructure30,838,053 32,967,803 28,602,192 29,417,251 59,440,245 62,385,054
Capital Assets, Net39,634,563 $ 42,067,496 $ 28,798,095 $ 29,621,802 $ 68,432,658 $ 71,689,298 $
Governmental ActivitiesBusi ness-Type ActivitiesTotal
Capital Assets at Year-End
(Net of Accumulated Depreciation)
Additional information on the City’s capital assets can be found in the notes to the financial statements on
pages 35-59.
Long-term debt – At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $17,426,000. Of this amount $10,646,000 comprises ta x supported debt and $6,780,000 is
special assessment debt. Revenue supported debt was co mpletely retired as of the year end. All
outstanding debt carries the general obli gation backing for which the City is liable in the event of default
by the property owners subject to the specific taxes, special a ssessments or revenues pledged to the
retirement of the debt. In addition, t he City carries a note to Anoka County for its share of the cost of the I-
35E/County Road 14 Interchange projec t in the amount of $3,695,000.
201220112012201120122011
G.O. Bonds10,646,000 $ 9,421,000 $ -$ -$ 10,646,000 $ 9,421,000 $
G.O. Special Assessment Bonds6,780,000 7,985,000 - - 6,780,000 7,985,000
G.O. Revenue Bonds- - - 405,000 - 405,000
Total Outstanding Debt17,426,000 $ 17,406,000 $ -$ 405,000 $ 17,426,000 $ 17,811,000 $
Governmental ActivitiesBusiness-Type ActivitiesTotal
Outstanding Debt at Year-End
The City of Lino Lakes’ total bonded debt decreased by $385,000 (2.2%) during the current fiscal year.
The key factors for the change include the issuance of $150,000 in 2012A Equipment Certificates and the
issuance of a general obligation bond in the am ount $2,015,000 to finance the Birch/Ware and Lake
Dr/Main traffic signal projects. Principal in the amount of $2,550,000 was retired during the
year.Additional information on the City’s long-term debt can be found in the notes to the financial
statements on pages 35-59.
CITY OF LINO LAKES, MINNESOTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
DECEMBER 31, 2012
21
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The unemployment rate for the City of Lino Lakes at year-end is 5.6%, which is a decrease from a
rate of 5.9% a year ago. This is slightly higher than the state’s average unemployment rate of 5.4%
and significantly lower than the national average of 7.6% at the end of 2012.
Residential growth in the City has continued to be significantly below the rates of the mid 2000’s due
to the general residential real estate market w eakness, with about one-fourth the number of new
home permits issued in 2012 as in 2007, and less than 87% of new home permits issued in 2005.
This is expected to level off in 2013, with hopes of the beginning of a recovery of the housing market.
This, as well as falling property values of the exis ting tax base, will continue to have an impact on the
City’s tax base for 2013.
Energy costs, while relatively stable in recent months, are expect ed to continue to increase over the
coming months. This will have an impact on the Ci ty’s budget for the coming year and thereafter.
Property tax reforms and State budget deficits have significantly impac ted state aid payments the City
of Lino Lakes receives. Local government aid and market value homestead credit was reduced to
zero for 2003 and 2004-2011. The City is exempt ed from local government aid and the state
legislature has discontinued the market value hom estead credit in favor of a new market value
exclusion, which excludes a portion of residentia l homestead property value from property taxes.
The Federal Reserve Board has continued the federal funds rates at historical lows, currently to
between 0.00% – 0.25%, which is expec ted to result in sizable decreas es in the City’s investment
earnings.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general over view of the City of Lino Lakes’ finances for all of
those with an interest in the government’s finances. Questions concerning any of the information provided
in this report or requests for addi tional financial information should be addressed to the Director of
Finance, City of Lino Lakes, 600 Town Cent er Parkway, Lino Lakes, Minnesota, 55014.
BASIC FINANCIAL STATEMENTS
22
CITY OF LINO LAKES, MINNESOTAStatement 1
STATEMENT OF NET POSITION
December 31, 2012
Governmental
Activities
Business-type
ActivitiesTotal
ASSETS
Cash and investments21,636,723 $ 11,138,355 $ 32,775,078 $
Accrued interest receivable70,428 - 70,428
Accounts receivable149,700 433,525 583,225
Due from other governments101,395 3,156 104,551
Internal Balances (559,110) 559,110 -
Taxes receivable365,172 - 365,172
Special assessment s receivable11,954,743 76 11,954,819
Long-term notes receivable225,000 - 225,000
Prepaid items182,899 21,099 203,998
Inventory- 39,298 39,298
Unamortized bond issue costs219,206 - 219,206
Permanently restricted cash and investments110,536 - 110,536
Capital assets:
Land3,275,859 - 3,275,859
Other capital assets, net of depreciation36,358,704 28,798,095 65,156,799
Total assets74,091,255 40,992,714 115,083,969
LIABILITIES
Accounts payable 184,324 36,946 221,270
Salaries payable214,667 12,250 226,917
Contracts and retainage payable75,553 - 75,553
Accrued interest payable334,040 - 334,040
Due to other governments1,184 - 1,184
Other accrued liabilities5,381 - 5,381
N on-current liabilities:
Due within one yea r 3,037,714 28,400 3,066,114
Due in more than one yea r 18,837,900 15,010 18,852,910
Total liabilities22,690,763 92,606 22,783,369
NET POSITION
N et Investment in Capital Assets 22,166,342 28,798,095 50,964,437
Restricted for:
Debt service - expendable11,484,576 - 11,484,576
Environmental improvements - expendable10,536 - 10,536
Environmental improvements - nonexpendable100,000 - 100,000
Unrestricted17,639,038 12,102,013 29,741,051
Total net position51,400,492 $ 40,900,108 $ 92,300,600 $
The accompanying notes are an integral part of these basic financial statements.
23
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2012
Functions/ProgramsExpenses
Charges for
Services
Operating Grants
and Contributions
Capital
Grants and
Contributions
Governmental activities:
General governmen t 1,883,961 $ 129,151 $ 19,413 $ -$
Public safety 4,046,415 642,745 171,423 -
Public services 5,584,283 476,296 218,473 5,125,693
Parks, recreation and forestry 1,210,867 191,832 - -
Conservation of natural resources 184,051 19,297 40,870 -
Community developmen t 430,121 16,940 - -
Interest on long-term deb t 837,755 - - -
Total governmental activities 14,177,453 1,476,261 450,179 5,125,693
Business-type activities:
Water949,121 1,371,809 - 19,125
Sewer1,527,637 1,505,781 - 893
Total business-type activities2,476,758 2,877,590 - 20,018
Total 16,654,211 $ 4,353,851 $ 450,179 $ 5,145,711 $
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise taxes
Other taxes
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
N et position - beginning
N et position - ending
The accompanying notes are an integral par t of these basic financial statements.
Program Revenues
24
Statement 2
Governmental
Activities
Business-type
Activities Total
(1,735,397)$ -$ (1,735,397)$
(3,232,247) - (3,232,247)
236,179 - 236,179
(1,019,035) - (1,019,035)
(123,884) - (123,884)
(413,181) - (413,181)
(837,755) - (837,755)
(7,125,320) - (7,125,320)
- 441,813 441,813
- (20,963) (20,963)
- 420,850 420,850
(7,125,320) 420,850 (6,704,470)
8,461,621 - 8,461,621
95,003 - 95,003
54,085 - 54,085
4,941 - 4,941
202,828 102,073 304,901
4,175 - 4,175
41,043 (41,043) -
8,863,696 61,030 8,924,726
1,738,376 481,880 2,220,256
49,662,116 40,418,228 90,080,344
51,400,492 $ 40,900,108 $ 92,300,600 $
Net (Expense) Revenue and Changes in Net Position
25
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2012
G.O.Improvement Municipal
ImprovementNoteState
AssetsGeneralBonds 2005A2009AAid
Cash and investments5,054,673 $ 158,742 $ 491 $ 5,037,136 $
Accrued interest receivable 70,428 - - -
Accounts receivable114,793 - - -
Due from other governmental units99,895 - - -
Interfund receivable- - - -
Taxes receivable:
Delinquent259,786 - 680 -
Due from county63,233 - - -
Special assessments receivable:
Delinquent - - - -
Deferred 3,985 5,851,618 4,352,824 -
Due from county - - - -
Long-term notes receivable- - - -
Prepaid items180,786 - - -
Permanently restricted cash and investments- - - -
Advances to other funds- - - -
Total assets5,847,579 $ 6,010,360 $ 4,353,995 $ 5,037,136 $
Liabilities and Fund Balances
Liabilities:
Interfund payable -$ 2,162,003 $ -$ -$
Accounts payable125,564 - - -
Salaries payable214,418 - - -
Contracts and retainage payable 8,825 - - -
Due to other governmental units1,184 - - -
Advances from other funds- - - -
Deferred revenue263,771 5,851,618 4,353,504 -
Total liabilities613,762 8,013,621 4,353,504 -
Fund balances:
Nonspendable180,786 - - -
Restricted- - 491 -
Committed- - - -
Assigned- - - 5,037,136
Unassigned5,053,031 (2,003,261) - -
Total fund balances 5,233,817 (2,003,261) 491 5,037,136
Total liabilities and fund balances5,847,579 $ 6,010,360 $ 4,353,995 $ 5,037,136 $
The accompanying notes are an integral par t of these basic financial statements.
26
Statement 3
Area andOtherTotal
UnitTraffic GovernmentalGovernmental
ChargeSignalFundsFunds
3,466,242 $ 530,087 $ 7,389,352 $ 21,636,723 $
- - - 70,428
23,712 - 11,195 149,700
- - 1,500 101,395
- - 2,366,768 2,366,768
- - 32,758 293,224
- - 8,715 71,948
82,137 - 42,587 124,724
821,426 - 784,478 11,814,331
10,919 - 4,769 15,688
- - 225,000 225,000
- - 2,113 182,899
- 110,536 110,536
496,000 - - 496,000
4,900,436 $ 530,087 $ 10,979,771 $ 37,659,364 $
-$ -$ 763,875 $ 2,925,878 $
24,157 112 34,491 184,324
- - 249 214,667
- 66,728 - 75,553
- - - 1,184
- - 496,000 496,000
903,563 - 865,201 12,237,657
927,720 66,840 2,159,816 16,135,263
496,000 - 327,113 1,003,899
- - 3,041,033 3,041,524
- - 115,196 115,196
3,476,716 463,247 6,596,080 15,573,179
- - (1,259,467) 1,790,303
3,972,716 463,247 8,819,955 21,524,101
4,900,436 $ 530,087 $ 10,979,771 $ 37,659,364 $
27
CITY OF LINO LAKES, MINNESOTAStatement 4
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET POSITION
Total Fund Balances for Governmental Funds21,524,101 $
Total net position reported for governmental activities in the statement of net position
is different because:
Land 3,275,859 $
Buildings, Net of Accumulated Depreciation3,324,186
Office Equipment and Furniture, Net of Accumulated Depreciation450,739
Vehicles, Net of Accumula ted Depreciation1,148,061
Machinery and Shop Equipment, Net of Accumulated Depreciation392,625
Other Equipment, Net of Accumulated Depreciation205,040
Infrastructure, Net of Accumulated Depreciation30,838,053 39,634,563
12,232,276
219,206
(334,040)
Bonds Payable(17,426,000)
Unamortized Premiums(67,373)
Unamortized Discounts25,152
N otes Payable (3,695,000)
Other Post Employment Benefits (77,821)
Compensated Absence Payable(634,572) (21,875,614)
Total Net Position of Governmental Activities51,400,492 $
The accompanying notes are an integral par t of these basic financial statements.
Interest on long-term debt is not accrued in governmental funds, but rather is
recognized as an expenditure when due. Accrued interest for general obligation
bonds is included in the statement of net position.
Long-term liabilities that pertain to gove rnmental funds, incl uding bonds payable,
are not due and payable in the current period and, therefore, are not reported as
fund liabilities. All liabilities - both current and long-term - are reported in the
statement of net position. Balances at year-end are:
December 31, 2012
Capital assets used in governmental funds are not financial resources and,
therefore, are not reported in the funds. Those assets consist of:
Some of the City's property taxes and special assessments will be collected after
year-end, but are not available soon enough to pay for the current period's
expenditures and, therefore, are reported as deferred revenue in the governmental
funds.
Bond issuance costs are reported as expenditures in the governmental funds and are
shown net of accumulated amortization on the statement of net position.
28
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2012
G.O.Improvement Municipal
ImprovementNoteState
Revenue:GeneralBonds 2005A2009AAid
General property taxes7,183,444 $ -$ -$ -$
Tax increments- - - -
Licenses and permits319,172 - - -
Intergovernmental462,023 - - 3,941,961
Special assessments33,358 - 51,724 -
Charges for services309,777 - - -
Fines and forfeits155,956 - - -
Investment earnings38,603 - - 33,554
Refunds 58,416 - - -
Miscellaneous104,819 - - -
Total revenue8,665,568 - 51,724 3,975,515
Expenditures:
Current:
General government1,608,240 - - -
Public safety3,861,265 - - -
Public works1,226,865 - - 8,953
Parks, recreation and forestry868,068 - - -
Conservation of natural resources165,858 - - -
Community development430,102 - - -
Capital outlay:
General government7,616 - - -
Public safety20,417 - - -
Public works- - - -
Conservation of natural resources6,250 - - -
Debt service:
Principal- 330,000 - -
Interest and fiscal charges- 203,648 98,267 -
Bond Issuance Costs- -
Total expenditures8,194,681 533,648 98,267 8,953
Revenue over (under) expenditures470,887 (533,648) (46,543) 3,966,562
Other financing sources (uses):
Transfer in - 159,000 46,543 -
Transfer out(842,250) - - (368,569)
Sale of property- - - -
Issuance of debt- - - -
Total other financing sources (uses)(842,250) 159,000 46,543 (368,569)
Net increase (decrease) in fund balance(371,363) (374,648) - 3,597,993
Fund balance - beginning of yea r 5,605,180 (1,628,613) 491 1,439,143
Fund balance - December 315,233,817 $ (2,003,261)$ 491 $ 5,037,136 $
The accompanying notes are an integral par t of these basic financial statements.
29
Statement 5
Area andOtherTotal
UnitTraffic GovernmentalGovernmental
ChargeSignalFundsFunds
-$ -$ 1,090,202 $ 8,273,646 $
- - 286,694 286,694
- - - 319,172
- 563,586 300,000 5,267,570
379,206 - 352,710 816,998
243,021 - 191,835 744,633
- - - 155,956
55,952 - 74,716 202,825
- - 39,599 98,015
- - 211,254 316,073
678,179 563,586 2,547,010 16,481,582
- - 10,975 1,619,215
- - - 3,861,265
78,483 1,470,891 554,238 3,339,430
- - 188,908 1,056,976
- - 10,460 176,318
- - 5,052 435,154
- - 43,115 50,731
- - 262,367 282,784
- - 277,166 277,166
- - - 6,250
- - 1,815,000 2,145,000
- - 529,960 831,875
- 11,133 35,921 47,054
78,483 1,482,024 3,733,162 14,129,218
599,696 (918,438) (1,186,152) 2,352,364
- - 1,773,914 1,979,457
(455,616) - (244,000) (1,910,435)
- - 4,175 4,175
- 1,558,344 606,656 2,165,000
(455,616) 1,558,344 2,140,745 2,238,197
144,080 639,906 954,593 4,590,561
3,828,636 (176,659) 7,865,362 16,933,540
3,972,716 $ 463,247 $ 8,819,955 $ 21,524,101 $
30
CITY OF LINO LAKES, MINNESOTAStatement 6
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
Net Change in Fund Balances-Total Governmental Funds4,590,561 $
Amounts reported for governmental activities in the statement of activities are different because:
Capital outlays684,293 $
Contributed capital assets(183,726)
Capital contributions to business-type funds(27,979)
Gain on disposal of capital assets4,175
Proceeds from sales of capital assets(19,924)
Depreciation expense(2,889,772) (2,432,933)
Issuance of bonds (2,015,000)
Issuance of equipment certificates(150,000)
Bond discount -
Bond issuance costs47,057
Repayment of bond principal2,145,000
Change in accrued interest expense for general obligation bonds859
Amortization of bond issuance costs(25,914)
Amortization of bond premium21,641
Amortization of bond discount(2,469) 21,174
Deferred revenue - December 31, 201112,643,772
Deferred revenue - December 31, 201212,232,276 (411,496)
(28,930)
Change in Net Position of Governmental Activities 1,738,376 $
The accompanying notes are an integral part of these basic financial statements.
Year Ended December 31, 2012
In the statement of activities, compensated absences and other post employment benefits are
measured by the amounts earned during the year. In the governmental funds, however,
expenditures for these items are measured by the amount of financial resources used (essentially,
the amounts actually paid). During fiscal year 2012, compensated absence payable and other post
employment benefits payable increased.
Governmental funds report capital outlays as expenditures. However, in the statement of activities,
assets are capitalized and the cost is allocated over their estimated useful lives and reported as
depreciation expense.
The governmental funds report bond proceeds as financing sources, while repayment of bond
principal is reported as an expenditure. In the statement of net position, however, issuing debt
increases long-term liabilities and does not affect the statement of activities and repayment of
principal reduces the liability. Also, governmental funds report the effect of issuance costs,
premiums and discounts when debt is first issued, whereas these amounts are deferred and
amortized in the statement of activities. Interest is recognized as an expenditure in the
governmental funds when it is due. In the statement of activities, however, interest expense is
recognized as it accrues, regardless of when it is due. The net effect of these differences in the
treatment of general obligation bonds and related items is as follows:
Delinquent and deferred property taxes and special assessments receivable will be collected
subsequent to year-end, but are not available soon enough to pay for the current period’s
expenditures and, therefore, are deferred in the governmental funds.
31
CITY OF LINO LAKES, MINNESOTAStatement 7
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
December 31, 2012
Total
Wate r Sewer2012
Current assets:
Cash and cash equivalents4,110,341 $ 7,028,014 $ 11,138,355 $
Accounts receivable221,404 212,121 433,525
Due from other governmental units- 3,1563,156
Interfund receivable - 559,110559,110
Due from county - special assessments38 38 76
Prepaid items9,537 11,562 21,099
Total current assets4,341,320 7,814,001 12,155,321
N on-current assets:
Inventory39,298- 39,298
Capital assets being depreciated:
Buildings48,690 - 48,690
Equipment158,633 345,238 503,871
Water and sewer systems19,796,988 21,273,348 41,070,336
Total capital assets20,004,311 21,618,586 41,622,897
Less: allowance for depreciation(6,021,803) (6,802,999) (12,824,802)
N et capital assets13,982,508 14,815,587 28,798,095
Total noncurrent assets14,021,806 14,815,587 28,837,393
Total assets18,363,126 22,629,588 40,992,714
Current liabilities:
Accounts payable22,154 14,792 36,946
Salaries payable6,122 6,128 12,250
Compensated absences payable - current portion14,200 14,200 28,400
Total current liabilities42,476 35,120 77,596
N on-current liabilities:
Compensated absences payable - long term7,505 7,505 15,010
Total liabilities49,981 42,625 92,606
Net Investment in Capital Assets13,982,508 14,815,587 28,798,095
Unrestricted4,330,637 7,771,376 12,102,013
Total net position18,313,145 22,586,963 40,900,108
The accompanying notes are an integral part of these basic financial statements.
Assets
Liabilities
N et position
32
CITY OF LINO LAKES, MINNESOTAStatement 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGE S IN NET POSITION - PROPRIETARY FUNDS
Total
WaterSewer2012
Operating revenue:
Charges for services1,352,003 $ 1,499,589 $ 2,851,592 $
Hook-up charges6,770 5,930 12,700
Water meter sales7,309 - 7,309
Other operating revenue5,727 262 5,989
Total operating revenue1,371,809 1,505,781 2,877,590
Operating expenses:
Personal services168,409 171,616 340,025
Materials and supplies153,665 22,865 176,530
Contractual services90,926 107,989 198,915
MCES sewer charges- 684,933 684,933
Depreciation423,887 438,180 862,067
Utilities90,992 42,555 133,547
Other19,598 59,499 79,097
Total operating expenses947,477 1,527,637 2,475,114
Net income from operations424,332 (21,856) 402,476
Other income (expense):
Investment earnings35,321 66,752 102,073
Special assessments19,125 893 20,018
Bond interest(1,237) - (1,237)
Paying agent fees(407) - (407)
Total other income (expense)52,802 67,645 120,447
Net income before contributions and transfers477,134 45,789 522,923
Capital contributions and transfers:
Capital contributions from primary government12,725 15,254 27,979
Transfer out(34,511) (34,511) (69,022)
Change in Net Position455,348 26,532 481,880
Net Position - January 117,857,797 22,560,431 40,418,228
Net Position - December 3118,313,145 $ 22,586,963 $ 40,900,108 $
The accompanying notes are an integral part of these basic financial statements.
Year Ended December 31, 2012
33
CITY OF LINO LAKES, MINNESOTAStatement 9
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2012
Total
Wate r Sewe r 2012
Cash flows from operating activities:
Cash receipts from customers1,362,424 $ 1,504,661 $ 2,867,085 $
Cash paid to suppliers(363,535) (863,241) (1,226,776)
Cash paid to employees(168,972) (217,740) (386,712)
Net cash flows from operating activities829,917 423,680 1,253,597
Cash flows from noncapital financing activities:
Net transfers(34,511) (34,511) (69,022)
Cash flows from capital and related financing activities:
Principal paid on revenue bonds(405,000) - (405,000)
Collection of special assessments48,466 1,070 49,536
Interest and paying agent fees on revenue bonds(7,340) - (7,340)
Acquisition of capital assets(5,985) (4,394) (10,379)
Net cash flows used by capital and related
financing activities(369,859) (3,324) (373,183)
Cash flows from investing activities:
Interest on investments35,321 66,752 102,073
Net increase in cash and cash equivalents460,868 452,597 913,465
Cash and cash equivalents - January 13,649,473 6,575,417 10,224,890
Cash and cash equivalents - December 314,110,341 $ 7,028,014 $ 11,138,355 $
Reconciliation of operating income to net cash
from operating activities:
Operating income (loss)424,332 $ (21,856)$ 402,476 $
Adjustments to reconcile operating income to
net cash flows from operating activities:
Depreciation423,887 438,180 862,067
Change in assets and liabilities:
Increase in receivables(3,978) (1,120) (5,098)
Increase in prepaid items(897) (630) (1,527)
Increase in inventory(11,865) - (11,865)
Increase (Dec rease) in payables(1,562) 9,106 7,544
Net cash flows from operating activities829,917 $ 423,680 $ 1,253,597 $
The accompanying notes are an integral part of these basic financial statements.
34
CITY OF LINO LAKES, MINNESOTAStatement 10
STATEMENT OF NET POSITION - FIDUCIARY FUNDS - AGENCY FUNDS
December 31, 2012
2012
Assets
Cash and investments 510,181 $
Liabilities
Deposits payable 510,181 $
The accompanying notes are an integral part of these financial statements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
35
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under
home rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally
accepted accounting principles as applie d to governmental units by the Gove rnmental Accounting Standards Board
(GASB). The following is a summary of the significant accounting policies:
A. FINANCIAL REPORTING ENTITY
As required by U.S. generally accep ted accounting principles, the financ ial statements of the reporting
entity include those of the City of Lino Lakes and its component un its. A component unit is a legally
separate entity for which the primary government is fi nancially accountable, or fo r which the exclusion of
the component unit would render the financial statements of the primary government misleading. The
criteria used to determine if th e primary government is financially accountable for a component unit
include whether or not the primary government appoints the voting majority of the potential component
unit’s board, is able to impose its will on the potential component unit, is in a relationship of financial
benefit or burden with the potential component un it, or is fiscally depended upon by the potential
component unit.
COMPONENT UNITS
In conformity with U.S. generally accepted accounting principles, the financial statements of component
units have been included in the fina ncial reporting entity either as blende d component units or as discretely
presented component units.
Blended Component Units
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City.
However, for financial reporting purposes, the EDA is re ported as if it were part of the City's operations
because the members of the City Council serve as commission members. The EDA does not issue separate
financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally
separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of
the City's operations because the members of the City Council serve as commission members. The HRA
has not yet incurred any financial activity.
B. BASIC FINANCIAL STATEMENTS
1. Government-Wide Statements
The government-wide financial statements (i.e., th e statement of net position and the statement of
activities) display information about the primary gove rnment and its component units. These statements
include the financial activities of the overall City gove rnment, except for fiduciary activities. Governmental
activities, which normally are supported by taxes and in tergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges to external parties for
support. As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are charges between the City’s enterprise funds and
various other functions of government . Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
36
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
1. Government-Wide Statements (Continued)
In the government-wide statement of net position, both the governmental and business-type activities
columns: (a) are presented on a consolidated basi s by column; and (b) are reported on a full accrual,
economic resource basis, which recogni zes all long-term assets and receiva bles as well as long-term debt
and obligations. The City’s net position is reported in three parts: (1) net investment in capital assets;
(2) restricted net position; and (3) unrestricted net positi on. The City first utilizes restricted resources to
finance qualifying activities.
The statement of activities demonstrat es the degree to which the direct expenses of each function of the
City’s governmental activities and diffe rent business-type activities are offs et by program revenues. Direct
expenses are those that are clearly identifiable w ith a specific function or activity. Program revenues
include: (1) fees, fines, and charges paid by the reci pients of goods, services, or privileges provided by a
given function or activity; and (2) grants and contributi ons that are restricted to meeting the operational or
capital requirements of a particular function or activity. Revenues that are not classified as program
revenues, including all taxes, are presented as general revenues.
2. Fund Financial Statements
The fund financial statements provide information about the City’s funds, including its fiduciary funds and
blended component unit. Separate statements for each fund categor y (governmental, proprietary, and
fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on
major individual governmental and enterprise funds, with each displa yed 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 charge s for services, result from exchange transactions
associated with the princi pal activity of the fund. Exchange tran sactions are those in which each party
receives and gives up essentially e qual values. Nonoperating revenues, su ch as subsidies and investment
earnings, result from nonexchange trans actions or incidental activities.
The City reports the following major governmental funds:
General Fund
The general fund is the City’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
General Obligation Improvement Bonds 2005A Fund
The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for,
and the payment of, interest, principal a nd related costs on general long-term debt.
Improvement Note 2009A Fund
The improvement note 2009A fund accounts for the accumu lation of resources for, and the payment of,
interest, principal and related costs on general long-term debt.
Municipal State Aid Fund
The Municipal State Aid f und accounts for the collection of assessmen ts on municipal state aid projects.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
37
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
Area and Unit Charge Fund
The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for
debt payments and construction of infrastructure.
Traffic Signal Fund
The traffic signal charge fund accounts for for costs associated with cons truction of traffic signals in the
City.
The City reports the following major proprietary funds:
Water Fund
The water fund accounts for customer water service ch arges that are used to finance water operating
expenses.
Sewer Fund
The sewer fund accounts for customer water service ch arges that are used to finance water operating
expenses.
Additionally, the City reports the following fiduciary funds:
Agency Funds - to account for assets held as an agent for individuals, private organizations, other
governmental units, and/or other funds. The City’s agency f und accounts for pass-through contractor’s
deposits relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government-wide and proprietary fund financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting . Agency funds, which are included in the Fiduciary
Funds, do not have a measurement focus. Revenues are recorded when earne d, and expenses are recorded
when a liability is incurred, regardle ss of the timing of related cash flow s. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. The City considers all reve nues to be available if th ey are collected within 60
days after the end of the current period. Property and othe r taxes, licenses, and interest are all considered to
be susceptible to accrual. Expenditu res are recorded when the related fund liability is incurred, except for
principal and interest on general long-term debt, co mpensated absences, and claims and judgments, which
are recognized as expenditures to the extent that they have matured. Proceeds of general long-term debt
and acquisitions under capital leases are reported as other financing sources.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
38
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED)
Amounts reported as program revenues include: 1. Charge s to customers or applicants for goods, services,
or privleges provided, 2. operating grants and cont ributions, and 3. capital grants and contributions,
including special assessments.
Proprietary funds distinguish operating revenue s and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenue of the
City’s enterprise funds are charges to customers for sales and services. Operating expenses for enterprise
funds include the cost of sales and services, admini strative expenses, and depreciation on capital assets. All
revenues and expenses not meeti ng this definition are reported as nonoperating revenue s and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with U.S. generally accepted acc ounting principles. Annual
appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund.
Budgeted expenditure appropriations lapse at year-end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserv e that portion of the appropriation, is not employed by
the City because it is not presently considered necessary to assure effective budgetary control or to
facilitate effective cash management.
E. LEGAL COMPLIANCE – BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the
following January 1. The operating budget includes pr oposed expenditures and the means of financing
them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can be
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the
City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
6. Legal debt obligation indentures determine the a ppropriation 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 a nd capital maintenance and are not reflected in the
financial statements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
39
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE – BUDGETS (CONTINUED)
7. A capital improvement program is reviewed periodically by the City Council for the Capital Project
Funds. However, appropriations fo r 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 appropria tions 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, pub lic safety, public services, and other).
9. The City Council may authorize transfers of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in investments
authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis
of the fund's equity in the cash and investment pool.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund shown as interfund receivables in the advanc ing fund in the governmental fund
financial statements, and an interfund payable in the fund with the deficit, until adequate resources are
received. These interfund payables are eliminat ed for statement of Net position presentation.
Investments are stated at fair value and interest earnings are accrued at year-end.
For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. All of the cash and
investments allocated to the proprieta ry fund types have original maturitie s of 90 days or less. Therefore,
the entire balance in such fund types is considered cash equivalents.
Permanently restricted cash and inve stments represents the principal portion of resources received that
must be retained in a permanent fund. Only earnings from these funds may be used for purposes that
support environmental maintenance and improvements.
G. PROPERTY TAX CREDITS
Property taxes on homestead property (as defined by St ate Statutes) are partially reduced by property tax
credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property.
The State remits these credits thr ough installments each year. These cred its are recognized as revenue by
the City at the time of collection.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
40
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
H. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certif ies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is re sponsible for billing and collecting
all property taxes for itself, the City, the local School District and other taxi ng 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 befo re July 15 and December 15 of the sa me year. Delinquent collections for
November and December are received the following Janua ry. The City has no ability to enforce payment of
property taxes by property owners. The County possesses this authority.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expe nditures of the current period. In practice, current
and delinquent taxes and State cred its received by the City in July , December and the following January
are recognized as revenue for the curre nt year. Taxes and credits not recei ved at the year-end are classified
as delinquent and due from County ta xes receivable. The portion of deli nquent taxes not collected by the
City in January is fully offset by deferred revenue because it is not available to finance current
expenditures. Deferred revenue in governmental activities is susceptible to full accrual on the government-
wide statements.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Stat ute 473F. This statute provides a m eans of spreading a portion of the
taxable valuation of commercial/indus trial real property to various ta xing authorities within the defined
metropolitan area. The valuation "shared" is a porti on of commercial/industrial property valuation growth
since 1971. Property taxes paid to the City through this formula for 2012 totaled $1,138,360. Receipt of
property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue.
I. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited proper ties for the cost or a porti on of the cost of special
assessment improvement projects in accordance with State Statutes. Thes e assessments are collectible by
the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as property
taxes. Property owners are allowed to (and often do) prepay future installments without interest or
prepayment penalties.
Within the fund financial statements, the revenue from special assessments is recognized by the City when
it becomes measurable and available to finance expend itures 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 Count y and remitted by December 31 (remitted to the City
the following January) and are also recognized as reve nue for the current year. All remaining delinquent,
deferred and special deferre d assessments receivable in governmental funds are completely offset by
deferred revenues. Deferre d revenue in governmental activities is susceptible to full accrual on the
government-wide statements.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
41
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED)
Once a special assessment roll is adopted, the amount a ttributed to each parcel is a lien upon that property
until full payment is made or the amount is determined to be excessive by the City Council or court action.
If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first
proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of
delinquent special assessments. Genera lly, the City will collect the full amount of its special assessments
not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax
forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which
event the property is subject to such sale after five years.
J. INVENTORIES AND PREPAIDS
The original cost of materials and supplies has been recorded as expenditures/expenses at the time of
purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts
of materials and supplies.
Certain payments to vendors reflect costs applicable to future accounting periods and are reported as
prepaid items under the purchases method in both government-wide and fund financial statements.
K. INTERFUND RECEIVABLES/PAYABLES
During the course of operations, numerous transacti ons occur between individual funds for goods provided
or services rendered. The year-end balances are classified as interf und receivables and payables on the
governmental fund balance sheets. The non-current portion of interfund loans are reported as “advances
to/from other funds.” Advances between funds ar e offset by a nonspendabl e fund balance account in
applicable governmental funds to indicate they are not available for appropriation and are not expendable
from available financial resources.
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipmen t, and infrastructure assets (e.g. roads, sidewalks,
street lights, and similar items) are reported in th e applicable governmental or business-type activities
columns in the government-wide fina ncial statements. Capital assets exceeding the City’s capitalization
threshold of $2,500 are recorded at historical cost or es timated historical cost if purchased or constructed.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend
asset lives are not capitalized. Major outlays for capital assets and impr ovements are capitalized as projects
are constructed. All existing City infrastructure has b een capitalized regardless of date placed in service.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with
accumulated depreciation reflected in the Statement of Net position. Capital assets are depreciated using
the straight-line method over their estimated useful lives. Since surplus assets are sold for an immaterial
amount when declared as no longer needed for City purposes, no salvage value is taken into consideration
for depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and
Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure.
Capital assets not being depreciated in clude land and construction in progress.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
42
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
M. COMPENSATED ABSENCES
It is the City's policy to permit employees to accumu late earned but unused vacation, PTO (Personal Time
Off), extended leave and sick pay benefits. All vacati on pay and PTO and the portion of sick pay allowable
as severance pay is accrued in the government-wide a nd proprietary fund financia l statements. The current
portion is calculated based on historical trends.
N. LONG-TERM OBLIGATIONS
In the entity-wide financial statements, long-term de bt and other long-term ob ligations are reported as
liabilities in the applicable govern mental activities. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the straight-line method. Bond issue costs, if material, are
amortized over the term of the related debt using the straight-line method.
In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs
are recognized during the current peri od. The face amount of the debt issu e is reported as other financing
sources. Premiums received on debt issuances are repor ted as other financing s ources while discounts are
reported as other financing uses. Issue costs are reported as debt service expenditures.
O. FUND EQUITY
In the fund financial statements, governmental funds re port fund balances in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable – portions of fund ba lance related to prepaids, inve ntories, long-term receivables,
and corpus on any permanent fund.
Restricted – funds are constrained by external parties (statute, grantors, bond agreements, etc).
Committed – funds are established and modified by a resolution approved by the City Council.
Assigned – consists of internally imposed constraints. These constraints are established by the
City Council and/or management. The City Council also delegates the authority to assign fund
balance to the Finance Director.
Unassigned – is the residual classification for th e General Fund and also reflects negative residual
amounts in other funds.
When an expenditure is incurred for purposes for wh ich both restricted and unrestricted fund balance is
available, it is the City’s policy to use restricted first, then unrestricted fund balance.
When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are
available, it is the City’s policy to use committed first, then assigned, a nd finally unassigned amounts.
The City formally adopted a fund balance policy for the General Fund. The policy establishes an
unassigned fund balance range of 40% - 50% of General Fund opera ting expenditures.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
43
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
O. FUND EQUITY (CONITNUED)
The fund equity balances in the proprietary funds have been classified into two broad categories:
Net position – Net Investment in Capital Assets
Unrestricted Net position
Net position represents the differences between asse ts and liabilities in the government-wide financial
statements. Net position – net investment in capital a ssets consists of capital assets, net of accumulated
depreciation, reduced by the ouststanding balance of any long-term debt used to build or acquire capital
assets. Net position is reported as restricted in government-wide financial statements when there are
limitations on their use thorugh external restrictions impos ed by creditors, grantors, or laws or regulations
of other governments.
P. INTERFUND TRANSACTIONS
Interfund services provided and us ed are accounted for as revenue s, expenditures or expenses.
Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that
are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and
as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions
are reported as transfers.
All Interfund transactions are elim inated except for activ ity between governmental activities and business-
type activities for presentation in the entity-wide statements of Net position and statements of activities.
Note 2 DEPOSITS AND INVESTMENTS
Components of Cash and Investments
Cash and investments at year-end consists of the following:
Deposits3,815,337 $
Investments29,579,638
Cash on Hand820
Total33,395,795 $
Cash and investments are presented in the financial statements as follows:
Cash and Investments - Statement of Net Position32,775,078 $
Permanent restricted Cash and Invest ments - Statement of Net Position110,536
Cash and Investments - Statement of Net Position - Fiduciary Funds510,181
Total33,395,795 $
A. Deposits
The City maintains a cash and investment pool that is available for use by all funds. Each fund type’s
portion of this pool is displayed on the statement of net position and the balance sheet as “Cash and
Investments.” In accordance with Minne sota Statutes, the City maintains deposits at financial institutions
which are authorized by the City Council.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
44
Note 2 DEPOSITS AND I NVESTMENTS (CONTINUED)
A. Deposits (Continued)
Custodial Credit Risk – Custodial credit risk for deposits is the risk that in the event of a bank failure, the
City’s deposits may not be returned to it. The City does not have a specific deposit policy for custodial
credit risk but rather follows Minnesota Statutes for deposits. Minnesota Statutes require that all deposits
be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal
110% of the deposits not covered by insurance or co rporate surety bonds. Authorized collateral include:
U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of
a state or local government rated “A” or better; revenue obligations of a state or local government rated
“AA” or better; irrevocable standby letter of credit i ssued by a Federal Home Loan Bank; and time deposits
insured by a federal agency. Minnesota Statutes require securities pledged as collateral be held in
safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a
commercial bank or other financial institution not owned or controlled by the depository.
The carrying value and bank balan ce of the City’s deposits in ba nks at December 31, 2012 is $3,815,337
and $3,994,899, respectively, and were entirely covered by federal depository insu rance or by surety bonds
and collateral in accordance with Minnesota Statutes.
B. Investments
The City may also invest idle funds as authorized by Minnesota Statutes as follows:
Direct obligations or obligations guaranteed by the United States or its agencies
Shares of investment companies registered unde r the Federal Investment Company Act of 1940 and
received the highest credit rating, is rated in one of the two highest rating cat egories by a statistical
rating agency, and all of the investments have a final maturity of thirteen months or less
General obligations rated “A” or better; revenue obligations rated “AA” or better
General obligations of the Minnesota Housing Finance Agency rated “A” or better
Banker’s acceptances of United States banks eligib le for purchase by the Federal Reserve System
Commercial paper issued by United States banks co rporations or their Canadian subsidiaries, of
highest quality category by a least two nationally recognized rating ag encies, and maturing in 270 days
or less
Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches
of foreign banks or United States insurance companies if similar debt obligations of the issuer or the
collateral pledged by the issuer is in the top two rating categories
Repurchase or reverse purchase agreements and securities lending agreements financial institutions
qualified as a “depository” by the government entity , with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S.
government securities to the Federal Reserve Bank of New York, or certain Minnesota securities
broker-dealers
Investments Held with Broker –
Interest Rate Risk
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an
investment. Generally, the l onger 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 i nvestment portfolio so that securities mature to meet
cash requirements for ongoing ope rations. Information about the sensitivity of the fair values of the City’s
investments to market interest rate risk fluctuations is provided by the following table that shows the
distribution of the City’s investments by maturity:
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
45
Note 2 DEPOSITS AND I NVESTMENTS (CONTINUED)
12 Months13 to 2425 to 60More than
TypeTotalor LessMonthsMonths60 Months
Minnesota Municipal Money
Market Trust Fund1,584,962 $ 1,584,962 $ -$ -$ -$
Federal Agricultural Mortgage Corp.1,000,000 - 1,000,000 - -
Federal Home Loan Bank2,348,975 - - - 2,348,975
Federal Home Loan Mortgage Corp.853,992 - - 353,805 500,187
Federal National Mort gage Assn.1,002,240 - - 300,849 701,391
Negotiable CDs13,713,494 7,483,000 2,726,516 3,503,978 -
Municipal Bonds8,803,714 500,546 1,850,410 4,623,472 1,829,286
Mutual Fund272,261 272,261 - - -
Total29,579,638 $ 9,840,769 $ 5,576,926 $ 8,782,104 $ 5,379,839 $
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. The City’s policy to minimize credit risk includes limiting investing funds to those
allowable under Minnesota St atute 118A, annually appoin ting all financial institutions where investments
are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The following chart summarizes year-end ratings for
the City’s investments as rated by Moody’s Investors Service:
Credit
TypeQuality RatingAmoun t
Minnesota Municipal Money Market Trust FundAa21,584,962 $
Federal Agricultural Mortgage Corp.Aaa/AA+1,000,000
Federal Home Loan Ban k Aaa/AA+2,348,975
Federal Home Loan Mortgage Corp.Aaa/AA+853,992
Federal National Mortgage Assn.Aaa/AA+1,002,240
N egotiable CDs N ot Rated13,713,494
Municipal BondsA-Aaa8,803,714
Mutual Fund N ot Rated272,261
Total 29,579,638 $
The Minnesota Municipal Money Market Fund Trust is a common law trust orga nized in accordance with
the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota
statutes as described on the previous page. Its investments are valued at amortized cost, which
approximates market value in accord ance with Rule 2a-7 of the Inve stment Company Act of 1940. The
amortized cost method of valuation values a security at its cost on the date of purchase and thereafter
assumes a constant amortization to maturity of any discount or premium, regardless of the impact of
fluctuating interest rates on the fair value of instruments.
The Minnesota Municipal Money Market Trust Fund doe s not have its own credit rating. MBIA, Inc., who
administers the Minnesota Municipal Money Market F und Trust holds an organization credit rating of Aa2.
For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City
will not be able to recover the value of its investment or collateral securities that are in the possession of an
outside party. The City’s investment policy doesn’t specifically address custodial credit risk.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
46
Note 2 DEPOSITS AND I NVESTMENTS (CONTINUED)
Concentration of Credit Risk
The City places no limit on the amount that it may inve st in any one issuer. Th e following is a list of
investments which individually comprise more than 5% of the City’s total investments:
TypeAmountPercentage
4M Fund1,584,962 $ 5.36%
Federal Home Loan Bank 2,348,975 7.94%
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2012 was as follows:
BeginningEnding
BalanceIncreasesDecreasesBalance
Governmental Activities:
Capital Assets, Not Being Depreciated:
Land3,275,859 $ -$ -$ 3,275,859 $
Construction in Progress211,705 - (211,705) -
Total Capital Assets, Not Being Depreciated3,487,564 - (211,705) 3,275,859
Capital Assets, Being Depreciated:
Buildings6,530,334 - - 6,530,334
Office Equipment and Furniture1,306,389 74,206 (8,365) 1,372,230
Vehicles2,376,629 162,209 (24,100) 2,514,738
Machinery and Shop Equipment693,565 264,152 (34,122) 923,595
Other Equipment952,448 - - 952,448
Infrastructure77,693,197 183,726 - 77,876,923
Total Capital Assets, Being Depreciated89,552,562 684,293 (66,587) 90,170,268
Accumulated Depreciation for:
Buildings(2,988,095) (218,053) - (3,206,148)
Office Equipment and Furniture(858,699) (71,157) 8,365 (921,491)
Vehicles(1,184,482) (224,668) 42,473 (1,366,677)
Machinery and Shop Equipment(496,058) (34,912) - (530,970)
Other Equipment(719,902) (27,506) - (747,408)
Infrastructure(44,725,394) (2,313,476) - (47,038,870)
Total Accumulated Depreciation(50,972,630) (2,889,772) 50,838 (53,811,564)
Total Capital Assets, Being Depreciated, Net38,579,932 (2,205,479) (15,749) 36,358,704
Governmental Activities Capital Assets, Ne t 42,067,496 $ (2,205,479)$ (227,454)$ 39,634,563 $
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
47
Note 3 CAPITAL ASSETS (CONTINUED)
BeginningEnding
BalanceIncreasesDecreasesBalance
Business-Type Activities:
Capital Assets, Being Depreciated:
Buildings48,690 $ -$ -$ 48,690 $
Machinery and Shop Equipment493,491 10,380 - 503,871
Water and Sewer Lines41,042,356 27,980 - 41,070,336
Total Capital Assets, Being Depreciated41,584,537 38,360 - 41,622,897
Accumulated Depreciation for:
Buildings(48,690) - - (48,690)
Machinery and Shop Equipment(288,940) (19,028) - (307,968)
Water and Sewer Lines(11,625,105) (843,039) - (12,468,144)
Total Accumulated Depreciation(11,962,735) (862,067) - (12,824,802)
Total Capital Assets, Being Depreciated, Net29,621,802 (823,707) - 28,798,095
Business-Type Capital Assets, Ne t 29,621,802 $ (823,707)$ -$ 28,798,095 $
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
48
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2012 is composed of the following:
Final
IssueMaturityInterestOriginal Payable
DateDateRateIssue12/31/2012
Governmental Activities:
General Obligation Bonds:
2010A Equipment Certificates4/1/201012/31/20132.00%-3.00%170,000 60,000 $
2011A Equipment Certificates2/14/1112/31/20141.00%120,000 81,000
2012A Equipment Certificates2/1/1212/31/20141.00%150,000 150,000
G.O. Tax Abatement Bonds, Series 2006C8/15/20062/1/20234.00%-4.30%2,460,000 2,345,000
G.O. Utility Revenue Bonds, Series 2006D8/15/20062/1/20174.00%-4.15%570,000 315,000
G.O. CIP Refunding Bonds, Series 2006E11/1/20062/1/20184.00%2,990,000 2,285,000
G.O. Tax Increment Financing Bonds, Series 2007A7/15/20072/1/20244.00%-4.125%4,215,000 3,395,000
G.O. Refunding Bonds, Series 2012A11/15/20122/1/20241.00%-2.00%2,015,000 2,015,000
Total General Obligation Bonds 13,026,000 10,646,000
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A8/1/20022/1/20133.00%-4.10%645,000 30,000
G.O. Improvement Bonds, Series 2002B8/1/20022/1/20133.20%-5.55%2,110,000 265,000
G.O. Improvement Refunding Bonds, Series 2003A12/1/20032/1/20192.00%-4.25%2,090,000 485,000
G.O. Improvement Bonds, Series 2003B12/1/20032/1/20143.20%-5.60%250,000 65,000
G.O. Improvement Bonds, Series 2005A11/1/20052/1/20214.35%-5.15%5,550,000 3,850,000
G.O. Improvement Refunding Bonds, Series 2005B11/1/20052/1/20153.75%-5.00%3,755,000 1,270,000
G.O. Improvement & Utility Revenue Refunding Bonds,
Series 2010A 7/9/20102/1/20202.00%-3.00%1,000,000 815,000
Total Special Assessment Bonds 15,400,000 6,780,000
Total Bonds 28,426,000 17,426,000
Note Payable - Anoka County - 2009A8/1/20098/1/20244.00%-3.70%4,260,000 3,695,000
Unamortized Bond Discounts (45,490) (25,152)
Unamortized Bond Premiums 202,370 67,373
Compensated Absences Payable N/A634,572
Other Post Employment Benefit Plan N/A77,821
Total Governmental Activities 32,842,880 $ 21,875,614 $
Business-Type Activities:
Revenue Bonds:
Compensated Absences Payable N/A43,410
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
49
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2012:
PayablePayableDue Within
12/31/2011IssuesPayments12/31/2012One Year
Governmental activities:
Bonded debt:
General Obligation 9,421,000 $ 2,165,000 $ 940,000 $ 10,646,000 $ 974,000 $
Special Assessment 7,985,000 - 1,205,000 6,780,000 1,675,000
Unamortized Bond Discounts(27,621) - (2,469) (25,152) -
Unamortized Bond Premiums89,014 - 21,641 67,373 -
Note Payable - Anoka County 3,695,000 - - 3,695,000 -
Compensated Absences Payable 610,655 539,523 515,606 634,572 388,714
Other Post Employment Benefit Plan 72,808 5,013 - 77,821 -
Total Governmental Activities 21,845,856 2,709,536 2,679,778 21,875,614 3,037,714
Business-Type Activities:
Revenue Bonds 405,000 - 405,000 - -
Unamortized Bond Discounts(64) - (64) - -
Compensated Absences Payable 45,398 36,738 38,726 43,410 28,400
Total Business-Type Activities 450,334 36,738 443,662 43,410 28,400
Total 22,296,190 $ 2,746,274 $ 3,123,440 $ 21,919,024 $ 3,066,114 $
All long-term bonded indebtedne ss outstanding at December 31, 2012 is backed by the full faith and credit of the
City, including special assessment bond issues.
Minimum annual principal and interest payments require d to retire long-term debt, not including compensated
absences payable are as follows.
PrincipalInterestTotal
Years Ending December 31,
2013 2,649,000 $ 756,248 $ 3,405,248 $
2014 1,986,000 662,594 2,648,594
2015 2,466,000 583,986 3,049,986
2016 2,100,000 501,220 2,601,220
2017 2,205,000 424,665 2,629,665
2018-2022 8,110,000 1,171,669 9,281,669
2023-2024 1,605,000 109,896 1,714,896
Total 21,121,000 $ 4,210,278 $ 25,331,278 $
Governmental Activities
Description and Restrict ions of Long-Term Debt
General Obligation Bonds – The bonds were issued for im provements or projects which benefited the City as a
whole and are, therefore, repaid from ad valorem levies.
Special Assessment Bonds – These bonds were issued to fi nance 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.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
50
Note 4 CITY INDEBTEDNESS (CONTINUED)
Revenue Bonds – These bonds were issued to finance various improvements in the water fund and will be repaid
primarily from pledged revenues deri ved from the constructed assets.
In November 2012, the City issued General Obligati on Improvement Bonds of $2,015,000 to complete current
refunding of 2003A General Obligation Improvement to taling $435,000 and to fund $1,580,000 of traffic signal
improvements. The $2,015,000 is being funded by special assessments related to the improvement project that the
City has collected. The current refuding resulted in a cash flow savings of $40,347 with a net present value of
$40,100 at a rate of 1.17% . The original bonds had been issued to fund various assessable public projects from
2003 and will be called on in 2013.
Liability for Compensated Absences – This liability represents vested be nefits earned by governmental fund
employees through the end of the year which will be paid or used in future periods. For the governmental activities,
compensated absences and other post em ployment benefit liability are generally liquidated by the general fund. The
liability for Proprietary Fund employees is in cluded in the accrued liabilities of those funds.
Note 5 LEGAL DEBT MARGIN
The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally
from property taxes. The City of Lino Lakes’ legal debt margin for 2012 is computed as follows:
12/31/12
Market value1,640,455,854 $
Applicable percentage3.0%
Debt Limit49,213,676
Amount of debt applicable to debt limit:
Total bonded debt17,426,000
Less: Special assessment bonds(6,780,000)
Tax abatement bonds(2,345,000)
Utility revenue bonds(315,000)
Tax increment financing bonds(3,395,000)
Total debt applicable to debt limit4,591,000
Legal debt margin44,622,676 $
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
51
Note 6 DEFINED BENEFIT PENSION PLANS – STATEWIDE
A. PLAN DESCRIPTION
All full-time and certain part-time employees of the City of Lino Lakes are covered by defined benefit
pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA
administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire
Fund (PEPFF) which are a cost-sharing, multiple-employe r retirement plan. This plan is established and
administered in accordance with Minnesota Statutes , Chapter 353 and 356.
GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are
covered by Social Security and Ba sic Plan members are not. All new members must participate in the
Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute
are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors
upon death of eligible members. Benefits are established by State Statute, and vest after three years of
credited service. The defined retirement benefits are based on a member's highest average salary for any
five successive years of allowabl e service, age, and years of cr edit at termination of service.
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan members. The retiring
member receives the higher of step-rate benefit accr ual formula (Method 1) or a level accrual formula
(Method 2). Under Method 1, the annuity accrual rate for a Basic Plan memb er is 2.2% of average salary
for each of the first 10 years of service and 2.7% fo r each remaining year. The annuity accrual rate for a
Coordinated Plan member is 1.2% of average sala ry for each of the first 10 years and 1.7% for each
remaining year. Under Method 2, th e annuity accrual rate is 2.7% of average salary for Basic Plan
members and 1.7% for Coordinated Plan members fo r each year of service. For PEPFF members, the
annuity accrual rate is 3.0% for each year of service.
For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calcu lated using Method 1, a
full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and
Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social
Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced
retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single-life annuity is a
lifetime annuity that ceases upon the d eath of the retiree, no survivor annu ity is payable. There are also
various types of joint and survivor annuity options available which will be payable over joint lives.
Members may also leave their contributions in the fund upon termination of public service in order to
qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to
members who leave public service, but before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to
active plan participants. Vested, te rminated employees, who are entitled to benefits but are not receiving
them yet, are bound by the provisions in effect at the time they last terminated their public service.
PERA issues a publicly available financial report that includes financial statements and required
supplementary information for GERF and PEPFF. Th at report may be obtained on the internet at
www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103-2088 or by
calling (651) 296-7460 or 1-800-652-9026.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
52
Note 6 DEFINED BENEFIT PENSIO N PLANS – STATEWIDE (CONTINUED)
B. FUNDING POLICY
Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are
established and amended by the state legislature. The City makes annual contributions to the pension plans
equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members
are required to contribute 9.10% a nd 6.25% respectively, of their a nnual covered salary. PEPFF members
were required to contribute 9.6% of their annual covered salary in 2012. The City is required to contribute
the following percentages of annual covered payr oll: 11.78% for Basic Plan members, 7.25% for
Coordinated Plan members, and 14.4% for PEPFF memb ers. The City's contributions to the General
Employees Retirement Fund for the years ende d December 31, 2012, 2011, and 2010 were $164,317,
$187,186, and $177,081, respectively. The City’s contributions to the Public Employees Police & Fire
Fund for the years ended December 31, 2012, 2011, and 2010 were $315,541, $285,356, and $280,046,
respectively. The City’s contributions were equal to the contractually required contributi ons for each year
as set by state statute.
Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES
During 1971, the Metropolitan Waste Cont rol Commission (MWCC) was organized to provide for consolidation of
the sanitary sewer collection, treatme nt and disposal in the seven count y metropolitan area surrounding Minneapolis
and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective
basis. The MWCC merged with th e Metropolitan Council during 1994 to fo rm Metropolitan Council Wastewater
Services (MCWS) and is now called the Metropolitan C ouncil Environmental Services (MCES). The MCES bills
the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of
recognizing these charges as an expense of the sewer u tility operation in the year fo r which they are billed.
Note 8 STEWARDSHIP COMP LIANCE AND ACCOUNTABILITY
A. Deficit Fund Balances
The City has deficit fund balances at December 31, 2012 as follows:
Fund Balance
Deficit
Dedicated Parks(495,592)$
Tax Increment Financing 1-11(763,593)
G.O. Improvement Bonds 2005A (2,003,261)
Improvement Bonds of 2012A(282)
The City intends to fund these deficits through future tax levies, special assessment levies, tax increments,
transfers from other funds, and various other sources.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
53
Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY (CONTINUED)
B. Expenditures in Excess of Budget
The following is a listing of expenditure categories that exceed budget appropriations for non-major funds:
Budge t ActualExcess
Program Recreation Special Revenue Fund:
Supplies48,815 $ 108,631 $ (59,816)$
Note 9 CONTINGENCIES
Tax Increment Districts – The City’s tax increment districts are subject to review by the State of Minnesota Office
of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the
applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could
have a material effect on the financial statements.
Federal and State Funds – The City receives financial assistance from fe deral and state governmental agencies in the
form of grants. The disbursement of funds received unde r these programs generally requires compliance with the
terms and conditions specified in the grant agreements and is subject to audit by the gran tor agencies. Any
disallowed claims resulting from such a udits 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 type s included herein or on the overall fina ncial position of the City at December
31, 2012.
Litigation – The City, in connection with the normal conduct of its affairs, is involved in various claims, judgments,
and litigation. As of December 31, 2012 any potential affect this may have on the City is not estimable, however it
is not expected to have a material effect on the financial statements of the City.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are finan ced by ad valorem tax levies and special assessment bond
issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be fina nced 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 s ources of financing. The City Council is required to levy
any additional taxes found necessary for fu ll payment of principal and interest.
These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31,
2012.
Future scheduled tax levies for all bonds out standing at December 31, 2012 totaled $16,527,862.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
54
Note 11 FUND BALANCE
At December 31, 2012, the City had various fund balances re stricted, committed, or assigned through legal
restriction and City Council authorization. Major fund balance appropr iations at December 31, 2012 are shown on
the various balance sheets as segregations of the fund balance. The fund balances are as follows:
TotalNonspendableRestricte dCommittedAssignedUnassigned
General Fund:5,053,031 $ -$ -$ -$ -$ 5,053,031 $
Prepaid items180,786 180,786 - - - -
Total General Fun d 5,233,817 180,786 - - - 5,053,031
G.O. Improvement Bonds 2005A:
Deficit Fund Balance(2,003,261) - - - - (2,003,261)
Improvement Bonds 2009F:
Debt Service491 - 491 - - -
Municipal State Aid:
Construction Projects5,037,136 - - - 5,037,136 -
Traffic Control:
Construction Projects463,247 - - - 463,247 -
Area and Unit Charge:
Advances to Other Funds496,000 496,000 - - - -
Construction Projects3,476,716 - - - 3,476,716 -
Total Area and Unit Charge3,972,716 496,000 - - 3,476,716 -
Nonmajor Governmental Funds:
Prepaid items2,113 2,113 - - - -
Long-term Loan Receivable225,000 225,000 - - - -
Corpus of Permanent Fund100,000 100,000 - - - -
Program Recreation115,196 - - 115,196 - -
Environmental Improvements10,536 - 10,536 - - -
Debt Service3,030,497 - 3,030,497 - - -
Construction Projects6,596,080 - - - 6,596,080 -
Deficit Fund Balance(1,259,467) - - - - (1,259,467)
Total Nonmajor Funds8,819,955 327,113 3,041,033 115,196 6,596,080 (1,259,467)
Total Fund Balances21,524,101 $ 1,003,899 $ 3,041,524 $ 115,196 $ 15,573,179 $ 1,790,303 $
Note 12 SHARE IN GAS FRANCHISE PROFITS
The City receives a share of the gro ss billing for natural gas sales by a ne ighboring City, whic h provides service
within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2012 was
$46,178.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds
and at December 31, 2012 are as follows:
ReceivablePayable
Governmental Activity:
G.O. Improvement Bonds 2005A-$ 2,162,003 $
Other Nonmajor Governmental Funds2,366,768 763,875
Business-Type Activity:
Sewer Fund559,110 -
2,925,878 $ 2,925,878 $
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
55
Note 13 INTERFUND RECEIVABLE AND PAYABLES (CONTINUED)
Interfund receivable and payable ba lances not expected to be repaid within one year are reported as advances to and
from other fund and at December 31, 2012 are as follows:
ReceivablePayable
Governmental Activity:
Area and Unit Charge496,000 $ -$
Other Nonmajor Governmental Funds- 496,000
496,000 $ 496,000 $
The purpose of the advance from the Area and Unit Charge F und is to temporarily finance projects in the Dedicated
Parks Fund.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2012 are as follows:
Transfer InTransfer Ou t
Governmental Activity:
General Fund-$ (842,250)$
G.O. Improvement Note 2009A159,000 -
Improvement Bonds of 2009F46,543 -
Area and Unit Charge- (455,616)
Municipal State Aid - (368,569)
Other Nonmajor Governmental Funds1,773,914 (244,000)
Total Governmental Activity1,979,457 (1,910,435)
Business-Type Activity:
Water Fund- (34,511)
Sewer Fund- (34,511)
Total Business-Type Activity- (69,022)
Total1,979,457 $ (1,979,457)$
Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the
transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open
and close funds.
Note 15 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and dest ruction 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.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
56
Note 15 RISK MANAGEMENT (CONTINUED)
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City
pays an annual premium to the LMCIT. The City is subject to supplemental a ssessments if deemed necessary by the
LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City
retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies.
These amounts are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and employee
health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 16 CONDUIT DEBT OBLIGATIONS
The City has issued Industrial Development Revenue B onds and Commercial Revenue Notes to provide financial
assistance to private-sector entities fo r the acquisition and construction of i ndustrial and commercial facilities which
are deemed to be in the public interest. The bonds are secu red by the property financed and are payable solely from
payments on the underlying mortgage loans. Upon repaym ent of the bonds, ownership of the acquired facilities
transfers to the private sect or entity served by the bond issue. The City is not obligated in any manner for the
repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements. As of December 31, 2012, one series of Indus trial Revenue Bonds was outst anding with an aggregate
remaining principal balance of $655,000, and one series of Commercial Revenue Notes was outstanding with an
aggregate remaining principal balance of $2,386,656.
Note 17 LEASE COMMITMENT
The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space with in the City Hall
complex to the Independent School District No. 12 (ISD 12). The lease term was renewed as of July 1, 2009 and
continued through June 30, 2011 and require d payments of $110 per square foot over the lease term for a total of
$300,000. Effective February 14, 2011, the lease was fu rther renewed through June 30, 2012 and required two
payments of $60,000 semi annually. This lease was not renewed when it was expired on June 30, 2012.
The prorated carrying value of the building being leased is as follows:
Building929,970 $
Less: Accumulated Depreciation(402,987)
N et526,983 $
Note 18 JOINT VENTURES
Fire
The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino
Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but
not limited to, fire prevention, firefi ghting and rescue service. Each memb er city is entitled to appoint two
commissioners to the District’s Board.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
57
Note 18 JOINT VENTURES (CONTINUED)
Fire (Continued)
Each calendar year, participating cities are to pay the Di strict its share of the total operating and capital budget in
accordance with a funding formula contai ned in Section VII of the joint pow ers agreement. The funding formula
takes into account each city’s average number of calls, population, and total market value.
During 2012, the City of Lino Lakes’ contributions to the District were as follows:
Operating542,779 $
Capital86,627
Total629,406 $
Separate financial statements of th e District can be obtained by contacting the Centennial Fire District.
The audited condensed financial statem ents of the District as of Decembe r 31, 2011 (the most recent information
available) are as follows:
Total Assets1,524,597 $
Total Liabilities109,106
Total Net Position1,415,491
Total Operating Revenue923,222
Total Operating Expenses818,638
Anoka County
The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid
Highway 14 (Main Street) and I-35E Interchange County Project.
Note 19 OTHER POSTEMPL OYMENT BENEFIT PLAN
At December 31, 2008, the City adopted Governmental Accounti ng Standards Board (GASB) Statement No. 45,
Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions . The City
engaged an actuary to determine the City’s liability for postemployment healthcare benefits other than pensions as
of January 1, 2011.
A. Plan Description
The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active
employees, who retire from the City when over age 50 and with 20 years of service, may continue
coverage with respect to both themselves and their e ligible dependent(s) under the City’s health benefits
program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium
cost. As of December 31, 2012 there were approximately 49 active participants a nd 7 retired participants
receiving benefits from the City’s health plans.
B. Funding Policy
The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2012, the City contributed
$24,597 to the plan.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
58
Note 19 OTHER POSTEMPLOYME NT BENEFIT PLAN (CONTINUED)
C. Annual OPEB Cost and Net OPEB Obligation
The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and amortize any un -funded actuarial liabilities ove r a period not to exceed
thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the
amount actually paid from the plan, and changes in the City’s net OPEB obligation.
Annual Required Contribution29,449 $
Interest on Net OPEB Obligation1,456
Adjustment to Annual Required Contribution(1,295)
Annual OPEB Cost (Expense)29,610
Contributions Made(24,597)
Increase in Net OPEB Obligation5,013
N et OPEB Obligation- Beginning of Year72,808
N et OPEB Obligation- End of Yea r 77,821 $
The City’s annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2012:
Percentage
FiscalAnnualof Annual N et
YearOPEBOPEB CostOPEB
EndedCostContributedObligation
12/31/201040,404 $ 51.1%63,287 $
12/31/201127,917 65.9%72,808
12/31/201229,610 65.2%77,821
D. Funded Status and Funding Progress
As of January 1, 2011, the most recent actuarial valuation date, the City’s unfunded actuarial accrued
liability (UAAL) was $474,770. The annual payroll for active employees covered by the plan in the
actuarial valuation was $4,953,560 for a ratio of UAAL to covered payroll of 9.6%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the fu ture. Examples include
assumptions about future employ ment, mortality, and healthcare co st trends. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presen ted as required supplementary information following
the notes to the financial statements, presents multiyear trend information about wh ether the actuarial value
of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits.
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2012
59
Note 19 OTHER POSTEMPLOYME NT BENEFIT PLAN (CONTINUED)
E. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of
each valuation and the historical pa ttern of sharing of benefit cost s between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed to
reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The
actuarial assumptions included a 2% inflation rate, a 2% investment rate of return (net of administrative
expenses), which is a blended rate of the expected long-term investment returns on plan assets and on the
employer’s own investments calculated based on the f unded level of the plan at the valuation date. The
initial healthcare trend rate was 0%, increasing to an ultimate rate of 4% after three years. The UAAL is
being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization
period at December 31, 2012 was not to exceed 30 years.
REQUIRED SUPPLEMENTARY INFORMATION
60
CITY OF LINO LAKES, MINNESOTAStatement 11
GENERAL FUND Page 1 of 6
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Variance with
Final Budget
OriginalFinalPositive
Budge t BudgetActual(Negative)
Revenue:
General property taxes:
Current and delinquen t 7,332,818 $ 6,302,618 $ 6,187,579 $ (115,039)$
Fiscal disparities- 1,030,200 995,230 (34,970)
Excess tax increments- - 635 635
Total general property taxes7,332,818 7,332,818 7,183,444 (149,374)
Licenses and permits:
Business82,400 88,900 88,921 21
N on-business334,500 237,500 230,251 (7,249)
Total licenses and permits416,900 326,400 319,172 (7,228)
Intergovernmental:
State:
Market Value Credi t - - 4,594 4,594
Police state aid185,000 185,000 163,311 (21,689)
MSA maintenance200,000 218,000 218,473 473
Other 54,051 54,051 15,478 (38,573)
County/Regional:
Solid waste35,000 35,000 40,870 5,870
Other4,000 30,000 19,297 (10,703)
Total intergovernmental478,051 522,051 462,023 (60,028)
Special Assessments:
Penalties and Interes t 10,000 10,000 33,358 23,358
Charges for services:
General governmen t 18,400 18,400 19,244 844
Planning/engineering8,000 8,000 6,409 (1,591)
Fees retained from collection fo r
other governments - SAC/surcharge1,000 1,000 973 (27)
Administrative charge - other funds50,000 50,000 50,000 -
Aerial map charge - other funds3,000 10,000 10,530 530
Public safety221,500 171,500 222,621 51,121
Total charges for services301,900 258,900 309,777 50,877
Fines and forfeits135,000 155,000 155,956 956
Investment earnings40,000 40,000 38,603 (1,397)
Refunds20,000 40,000 58,416 18,416
Miscellaneous:
Gas franchise fees110,000 55,000 46,178 (8,822)
Cable TV48,750 48,750 48,824 74
Donations5,000 5,000 2,910 (2,090)
Other1,000 5,500 6,907 1,407
Total miscellaneous164,750 114,250 104,819 (9,431)
Total Revenue8,899,419 8,799,419 8,665,568 (133,851)
Year Ended December 31, 2012
2012
61
CITY OF LINO LAKES, MINNESOTAStatement 11
GENERAL FUND Page 2 of 6
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2012
Variance with
Final Budget
OriginalFinalPositive
Budge t BudgetActual(Negative)
Expenditures:
General government:
Mayor and council:
Current:
Personal services40,566 $ 40,566 $ 32,011 $ 8,555 $
Other services and charges30,500 25,500 17,151 8,349
Contractual Services14,752 14,752 14,962 (210)
Total mayor and council85,818 80,818 64,124 16,694
Elections:
Current:
Personal services17,620 17,620 17,367 253
Supplies650 650 776 (126)
Other services and charges4,375 1,375 950 425
Contractual Services500 500 97 403
Total elections23,145 20,145 19,190 955
Administration:
Current:
Personal services366,983 366,983 352,377 14,606
Supplies- - 221 (221)
Other services and charges16,500 13,500 17,211 (3,711)
Contractual Services5,210 5,210 5,838 (628)
Capital outlay7,698 7,698 - 7,698
Total administration396,391 393,391 375,647 17,744
Finance:
Current:
Personal services300,547 280,547 286,831 (6,284)
Supplies1,200 1,200 317 883
Other services and charges107,325 107,325 103,440 3,885
Contractual Services102,900 98,900 98,481 419
Total finance511,972 487,972 489,069 (1,097)
Cable TV:
Current:
Personal services2,165 2,165 1,615 550
Supplies50 50 - 50
Capital outlay500 500 369 131
Total cable TV2,715 2,715 1,984 731
Consultants:
Current:
Legal140,000 150,000 137,273 12,727
2012
62
CITY OF LINO LAKES, MINNESOTAStatement 11
GENERAL FUND Page 3 of 6
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2012
Variance with
Final Budget
OriginalFinalPositive
Budge t BudgetActual(Negative)
General government (continued):
Engineering/planning:
Current:
Contractual services106,400 $ 86,400 $ 83,390 $ 3,010 $
Capital outlay8,500 8,500 7,247 1,253
Total engineering/planning114,900 94,900 90,637 4,263
Charter commission:
Current:
Other services and charges1,500 1,500 1,486 14
General government buildings:
Current:
Personal services3,683 3,683 4,396 (713)
Supplies28,000 43,000 43,597 (597)
Other services and charges304,880 321,880 323,374 (1,494)
Contractual services65,692 65,692 65,079 613
Total general government buildings402,255 434,255 436,446 (2,191)
Total general governmen t 1,678,696 1,665,696 1,615,856 49,840
Public safety:
Police:
Current:
Personal services2,952,323 2,924,823 2,977,037 (52,214)
Supplies34,600 34,600 25,638 8,962
Other services and charges81,098 88,598 86,218 2,380
Contractual services36,772 36,772 31,946 4,826
Capital outlay28,800 20,800 20,417 383
Total police3,133,593 3,105,593 3,141,256 (35,663)
Fire protection:
Current:
Contractual services542,779 542,779 542,779 -
Building inspection:
Current:
Personal services197,633 197,633 194,971 2,662
Supplies1,070 1,070 279 791
Other services and charges12,420 3,420 2,282 1,138
Contractual services1,000 1,000 115 885
Total building inspection212,123 203,123 197,647 5,476
Total public safety3,888,495 3,851,495 3,881,682 (30,187)
2012
63
CITY OF LINO LAKES, MINNESOTAStatement 11
GENERAL FUND Page 4 of 6
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Variance with
Final Budget
OriginalFinalPositive
Budge t BudgetActual(Negative)
Public works:
Streets:
Current:
Personal services536,270 $ 536,270 $ 526,718 $ 9,552 $
Supplies118,500 109,500 84,815 24,685
Other services and charges102,060 102,060 101,406 654
Contractual services172,275 162,275 122,385 39,890
Total streets929,105 910,105 835,324 74,781
Fleet:
Current:
Personal services97,654 97,654 98,694 (1,040)
Supplies224,000 224,000 245,384 (21,384)
Other services and charges54,880 47,880 45,553 2,327
Contractual services2,700 2,700 1,910 790
Total flee t 379,234 372,234 391,541 (19,307)
Total public works1,308,339 1,282,339 1,226,865 55,474
Parks and recreation:
Parks:
Current:
Personal services459,080.00 459,080.00 466,407.00 (7,327.00)
Supplies26,500 26,500 31,652 (5,152)
Other services and charges51,920 59,420 60,125 (705)
Contractual services35,850 35,850 33,267 2,583
Total parks573,350 580,850 591,451 (10,601)
Recreation:
Current:
Personal services268,280 268,280 259,431 8,849
Supplies2,500 2,500 3,065 (565)
Other services and charges16,600 16,600 13,559 3,041
Contractual services800 800 562 238
Total recreation288,180 288,180 276,617 11,563
Total parks and recreation861,530 869,030 868,068 962
2012
Year Ended December 31, 2012
64
CITY OF LINO LAKES, MINNESOTAStatement 11
GENERAL FUND Page 5 of 6
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2012
Variance with
Final Budget
OriginalFinalPositive
Budge t BudgetActual(Negative)
Conservation of natural resources:
Forestry:
Current:
Personal services33,292 $ 33,292 $ 32,942 $ 350 $
Supplies1,250 1,250 47 1,203
Other services and charges400 400 341 59
Contractual services5,500 5,500 3,190 2,310
Capital outlay5,000 5,000 6,250 (1,250)
Total forestry45,442 45,442 42,770 2,672
Environmental:
Current:
Personal services50,325 63,325 61,912 1,413
Supplies1,400 1,400 1,197 203
Other services and charges8,750 8,750 5,141 3,609
Contractual services1,450 1,450 2,160 (710)
Total environmental61,925 74,925 70,410 4,515
Solid waste abatement:
Current:
Personal services28,926 28,926 29,689 (763)
Supplies- - 321 (321)
Other services and charges550 550 361 189
Contractual services6,000 12,000 28,557 (16,557)
Total solid waste abatemen t 35,476 41,476 58,928 (17,452)
Total conservation of natural resources142,843 161,843 172,108 (10,265)
2012
65
CITY OF LINO LAKES, MINNESOTAStatement 11
GENERAL FUND Page 6 of 6
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2012
Variance with
Final Budget
OriginalFinalPositive
Budge t BudgetActual(Negative)
Community Development:
Community Development:
Current:
Personal services189,653 $ 189,653 $ 190,145 $ (492)$
Supplies100 100 - 100
Other services and charges8,500 8,500 4,877 3,623
Contractual Services1,400 1,400 2,115 (715)
Total community developmen t 199,653 199,653 197,137 2,516
Economic Development:
Current:
Personal services90,008 90,008 89,896 112
Supplies150 150 - 150
Other services and charges44,500 40,500 48,739 (8,239)
Contractual services400 400 570 (170)
Total economic developmen t 135,058 131,058 139,205 (8,147)
Planning and zoning commission:
Current:
Personal services95,138 75,138 73,975 1,163
Supplies250 250 182 68
Other services and charges18,000 13,000 7,719 5,281
Contractual services22,350 22,350 11,884 10,466
Total planning and zoning commission135,738 110,738 93,760 16,978
Total community developmen t 470,449 441,449 430,102 11,347
Other :
Contingency75,000 53,500 - 53,500
Total Expenditures8,425,352 8,325,352 8,194,681 130,671
Revenue over Expenditures474,067 474,067 470,887 (3,180)
Other financing sources (uses):
Transfer out(742,250) (842,250) (842,250) -
N et increase (decrease) in fund balance(268,183)$ (368,183)$ (371,363) (3,180)$
Fund Balance - January 15,605,180
Fund balance - December 315,233,817 $
2012
66
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
Note 1 BUDGETS
Actual in
FinalExcess of
BudgetActualBudget
General Fund:
General government:
Finance:487,972 $ 489,069 $ (1,097)$
General government buildings:434,255 436,446 (2,191)
Public safety
Police3,105,593 3,141,256 (35,663)
Public works:
Fleet372,234 391,541 (19,307)
Parks and recreation:
Parks580,850 591,451 (10,601)
Conservation of natural resources:
Solid waste abatement41,476 58,928 (17,452)
Community development:
Economic Development:131,058 139,205 (8,147)
The General Fund budget is legally adopted on a basis consistent with U.S. Ge nerally Accepted Accounting Principles.
The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded
budget appropriations.
December 31, 2012
67
CITY OF LINO LAKES, MINNESOTAStatement 12
SCHEDULE OF FUNDING PROGRESS FO R POSTEMPLOYMENT BENEFIT PLAN
ActuarialUAAL as a
ActuarialAccrued Percentage
ActuarialValue ofLiabilityUnf unded FundedCoveredof Covered
ValuationAssets(AAL)AALRatioPayrollPayroll
Date(a)(b)(b-a)(a/b)(c)((b-a)/c)
1/1/2008-$ 329,191 $ 329,191 $ - 4,859,980 $ 6.8%
1/1/2011- 474,770 474,770 - 4,953,560 9.6%
December 31, 2012
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted
to expenditures for particular purposes. The City ma intained the following nonmajor Special Revenue Funds
during the year.
Economic Development Authority - established to account for the receipt and uses of funds for
economic purposes.
Program Recreation - established to account for various self-supporting recreational programs.
Debt Service Funds
The Debt Service Funds account for the accumulation of res ources for, and the payment of, interest, principal and
related costs on general long-term debt.
The City’s Debt Service Funds account for four types of bonded indebtedness:
General Debt Bonds - are repaid primarily from property taxes.
Improvement Bonds - are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds - are repaid primarily from lease revenues received from the EDA
leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds - These bonds were issued to finance vari ous improvements and will be repaid
primarily from pledged revenues de rived from the constructed assets.
Capital Project Funds
Capital Project Funds account for the acquisition or c onstruction of major capital facilities other than those
financed by Proprietary Funds and Trust Funds. The C ity maintained the following nonmajor Capital Project
Funds during the year:
Capital Improvement Projects - to account for the proceeds from Equipment Certificates.
Capital Equipment Revolving Fund - to account for funds held to purchase capital equipment.
Closed Bond Fund - to account for excess funds from matured bond issues.
Street Reconstruction - to account for the financing of future reconstruction of City streets.
Sealcoating - to account for money received from assessments and developer deposits for future street
sealcoating projects.
Surface Water Management - to account for the financing of surface water management and storm water
improvements.
Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch
Street and Hodgson Road.
Tax Increment Funds - to account for development projects financed with tax increments.
Nonmajor Governmental Funds (Continued)
Capital Project Funds (Continued)
Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees.
I35E Interschange Fund - to account for activity related to th e I35E/CSAH 14 Interchange Reconstruction
Project.
Office Equipment Revolving Fund - to account for the receipt and use of funds for office equipment
purchases.
Legacy Woods Edge Improvement Fund - the Legacy Woods Edge Improvement fund accounts for
construction costs related to infrastructure improve ments in the Legacy Woods Edge development.
Permanent Funds
Permanent Funds are used to report resources that are lega lly restricted to the extent that only earnings, and not
principal, may be used for purposes that support the City’s programs. The City maintained the following
nonmajor Permanent Fund during the year.
Foxborough Environment Fund - established to account for the use of funds received for environmental
maintenance and improvements in the Foxborough area.
68
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
EconomicSpecialCertificatesImprovementImprovement
DevelopmentProgramRevenueofBonds ofBonds of
AuthorityRecreationSubtotalIndebtedness2002A2002B
Assets
Cash and investments-$ 123,343 $ 123,343 $ 143,490 $ 212,835 $ 342,581 $
Accounts receivable- 953 953 - - -
Due from other governmental units- - - - - -
Interfund receivable- - - - - -
Taxes receivable:
Delinquent- - - 7,686 - -
Due from county- - - 1,991 - -
Special assessments receivable:
Delinquent- - - - - -
Deferre d - - - - 45,497 -
Due from county- - - - 345 -
Long-term notes receivable225,000 - 225,000 - - -
Prepaid items- 2,113 2,113 - - -
Total assets225,000 $ 126,409 $ 351,409 $ 153,167 $ 258,677 $ 342,581 $
Liabilities and Fund Balance (Deficit)
Liabilities:
Interfund payable-$ -$ -$ -$ -$ -$
Accounts payable- 3,472 3,472 - - -
Salaries payable- 249 249 - - -
Contracts and retainage payable- - - - - -
Due to other governments- - - - - -
Advances from other funds- - - - - -
Deferred revenue- 5,379 5,379 7,686 45,497 -
Total liabilities- 9,100 9,100 7,686 45,497 -
Fund balance (deficit):
Nonspendable225,000 2,113 227,113 - - -
Restricte d - - - 145,481 213,180 342,581
Committe d - 115,196 115,196 - - -
Assigned- - - - - -
Unassigne d - - - - - -
Total fund balance (deficit)225,000 117,309 342,309 145,481 213,180 342,581
Total liabilities and fund balance (deficit)225,000 $ 126,409 $ 351,409 $ 153,167 $ 258,677 $ 342,581 $
Special RevenueDebt Service
69
Statement 13
Pa g e 1 of 3
ImprovementTaxUtilityCIP
RefundingImprovementImproveme nt AbatementRevenueRefunding
Bonds ofBonds ofBonds of BondsBondsBonds
2003A2003B2005B2006C2006D2006E
595,880 $ 56,717 $ 405,931 $ 187,264 $ 83,405 $ 814,525 $
- - - - - -
- - - - - -
- - - - - -
- 775 4,602 6,699 - 12,996
- 181 1,157 1,902 - 3,425
4,104 6,183 334 - 5,680 -
102,954 27,971 123,932 - 120,327 -
- - 1,423 - - -
- - - - - -
- - - - - -
702,938 $ 91,827 $ 537,379 $ 195,865 $ 209,412 $ 830,946 $
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
107,058 34,929 128,868 6,699 126,007 12,996
107,058 34,929 128,868 6,699 126,007 12,996
- - - - - -
595,880 56,898 408,511 189,166 83,405 817,950
- - - - - -
- - - - - -
- - - - - -
595,880 56,898 408,511 189,166 83,405 817,950
702,938 $ 91,827 $ 537,379 $ 195,865 $ 209,412 $ 830,946 $
Debt Service (Continued)
70
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
Improvement and
TIFUtility RevenueImpr ovementDebtCapitalCapital
BondsRefunding BondsBonds ofServiceImprovementEquipment
2007A20102012ASubtotalPr ojectsRevolving Fund
Assets
Cash and investments153,628 $ 23,817 $ -$ 3,020,073 $ 592,753 $ 94,997 $
Accounts receivable- - - - 2,028 8,214
Due from other governmental units- - - - - -
Interfund receivable- - - - 1,602,893 -
Taxes receivable:-
Delinquent- - - 32,758 - -
Due from county- - - 8,656 - -
Special assessments receivable:-
Delinquent- 8,158 - 24,459 - -
Deferred- 108,151 - 528,832 - -
Due from county- - - 1,768 - -
Long-term notes receivable- - - - - -
Prepaid items- - - - - -
Total assets153,628 $ 140,126 $ -$ 3,616,546 $ 2,197,674 $ 103,211 $
Liabilitie s and Fund Bala nce (Deficit)
Liabilities:
Interfund payable-$ -$ 282 $ 282 $ -$ -$
Accounts payable- - - - 290 14,917
Salaries payable- - - - - -
Contracts and retainage payable- - - - - -
Due to other governments- - - - - -
Advances from other funds- - - - - -
Deferred revenue- 116,309 - 586,049 - -
Total liabilities- 116,309 282 586,331 290 14,917
Fund balance (deficit):
Nonspendable- - - - - -
Restricted153,628 23,817 - 3,030,497 - -
Committed- - - - - -
Assigned- - - - 2,197,384 88,294
Unassigned- - (282) (282) - -
Total fund balance (deficit)153,628 23,817 (282) 3,030,215 2,197,384 88,294
Total liabilities and fund balance (deficit)153,628 $ 140,126 $ -$ 3,616,546 $ 2,197,674 $ 103,211 $
Debt Service (continue d)Capital Projects
71
Statement 13
Page 2 of 3
Tax
ClosedSurface Birch Street Increment
BondStreetWater Hodgson RoadFinancing
FundReconstructionSealcoatingManagementImprovement1-5
666,071 $ 608,173 $ 477,527 $ 407,977 $ 15,738 $ 99,456 $
- - - - - -
- - - 1,500 - -
763,875 - - - - -
- - - - - -
59 - - - - -
1,172 - - 16,956 - -
1,572 126,021 - 128,053 - -
- - - 3,001 - -
- - - - - -
- - - - - -
1,432,749 $ 734,194 $ 477,527 $ 557,487 $ 15,738 $ 99,456 $
-$ -$ -$ -$ -$ -$
- - 2,880 - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
2,744 126,021 - 145,008 - -
2,744 126,021 2,880 145,008 - -
- - - - - -
- - - - - -
- - - - - -
1,430,005 608,173 474,647 412,479 15,738 99,456
- - - - - -
1,430,005 608,173 474,647 412,479 15,738 99,456
1,432,749 $ 734,194 $ 477,527 $ 557,487 $ 15,738 $ 99,456 $
Capital Projects
72
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2012
TaxTaxOffice
IncrementIncrementEquipmentLegacy Woods
FinancingFinancingDedi catedI35ERevolvingEdge
1-101-11ParksInterchangeFundImprovement
Assets
Cash and investments189,274 $ -$ 408 $ 274,525 $ 264,621 $ 554,416 $
Accounts receivable- - - - - -
Due from other g overnmental units- - - - - -
Interfund receivable- - - - - -
Taxes receivable:
Delinquent- - - - - -
Due from county- - - - - -
Special assessments receivable:
Delinquent- - - - - -
Deferred- - - - - -
Due from county- - - - - -
Long-term notes receivable- - - - - -
Prepaid items- - - - - -
Total assets189,274 $ -$ 408 $ 274,525 $ 264,621 $ 554,416 $
Liabilities and Fund Balance (Deficit)
Liabilities:
Interfund payable-$ 763,593 $ -$ -$ -$ -$
Accounts payable- - - - 12,932 -
Salaries payable- - - - - -
Contracts and retainage payable- - - - - -
Due to other governments- - - - - -
Advances from other funds- - 496,000 - - -
Deferred revenue- - - - - -
Total liabilities- 763,593 496,000 - 12,932 -
Fund balance (deficit):
Nonspendable- - - - - -
Restricted- - - - - -
Committed- - - - - -
Assigned189,274 - - 274,525 251,689 554,416
Unassigned- (763,593) (495,592) - - -
Total fund balance (deficit)189,274 (763,593) (495,592) 274,525 251,689 554,416
Total liabilities and fund balance (deficit)189,274 $ -$ 408 $ 274,525 $ 264,621 $ 554,416 $
Capital Projects (continued)
73
Statement 13
Page 3 of 3
Capital ProjectsPermanent
(Continued)Fund
CapitalFoxborough
ProjectsEnvironmentTotal
SubtotalFund2012
4,245,936 $ 110,536 $ 7,499,888 $
10,242 - 11,195
1,500 - 1,500
2,366,768 - 2,366,768
-
- - 32,758
59 - 8,715
-
18,128 - 42,587
255,646 - 784,478
3,001 - 4,769
- - 225,000
- - 2,113
6,901,280 $ 110,536 $ 10,979,771 $
763,593 $ -$ 763,875 $
31,019 - 34,491
- - 249
- - -
- - -
496,000 - 496,000
273,773 - 865,201
1,564,385 - 2,159,816
- 100,000 327,113
- 10,536 3,041,033
- - 115,196
6,596,080 - 6,596,080
(1,259,185) - (1,259,467)
5,336,895 110,536 8,819,955
6,901,280 $ 110,536 $ 10,979,771 $
74
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2012
EconomicSpecialCertificatesImprovementImprovement
DevelopmentProgramRevenueofBonds ofBonds of
AuthorityRecreationSubtotalIndebtedness2002A2002B
Revenue:
General property taxes-$ -$ -$ 234,680 $ -$ -$
Tax increments- - - - - -
Intergovernmental- - - - - -
Special assessments- - - 347 15,378 114,075
Charges for services- 191,835 191,835 - - -
Investment earnings- 1,445 1,445 1,730 2,031 2,940
Refunds - - - - - -
Miscellaneous- - - - - -
Total revenue- 193,280 193,280 236,757 17,409 117,015
Expenditures:
Current:
General government- - - - - -
Public works- - - - - -
Parks, recreation and forestry- 188,908 188,908 - - -
Conservation of natural resources - - - - - -
Community developmen t - - - - - -
Capital outlay:
General government- - - - - -
Public safety- - - - - -
Public works- - - - - -
Debt service:
Principal- - - 215,000 30,000 250,000
Interest and fiscal charges- - - 9,380 2,521 22,086
Bond Issuance Costs- - - - - -
Total expenditures- 188,908 188,908 224,380 32,521 272,086
Revenue over (under) expenditures- 4,372 4,372 12,377 (15,112) (155,071)
Other financing sources (uses):
Transfer in- - - - - -
Transfer ou t - - - - - -
Sale of property- - - - - -
Issuance of deb t - - - - - -
Total other financing
sources (uses)- - - - - -
Net increase (decrease) in fund balance- 4,372 4,372 12,377 (15,112) (155,071)
Fund balance (deficit) -
Beginning of yea r 225,000 112,937 337,937 133,104 228,292 497,652
Fund balance (deficit) - December 31225,000 $ 117,309 $ 342,309 $ 145,481 $ 213,180 $ 342,581 $
Debt Service Special Revenue
75
Statement 14
Page 1 of 3
ImprovementTaxUtilityCIP
RefundingImprovementImprovement AbatementRevenueRefunding
Bonds ofBonds ofBonds of BondsBondsBonds
2003A2003B2005B2006C2006D2006E
-$ 20,242 $ 134,465 $ 233,473 $ -$ 466,907 $
- - - - - -
- - - - - -
25,886 2,973 64,727 271 16,186 576
- - - - - -
1,506 447 - 608 200 5,543
- - - - - -
- - - - - -
27,392 23,662 199,192 234,352 16,386 473,026
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
60,000 30,000 420,000 85,000 55,000 320,000
20,969 4,389 72,038 101,211 14,714 98,490
3,325 - - - - -
84,294 34,389 492,038 186,211 69,714 418,490
(56,902) (10,727) (292,846) 48,141 (53,328) 54,536
80,538 - 375,078 - 69,022 -
- - - - - -
- - - - - -
425,000 - - - - -
505,538 - 375,078 - 69,022 -
448,636 (10,727) 82,232 48,141 15,694 54,536
147,244 67,625 326,279 141,025 67,711 763,414
595,880 $ 56,898 $ 408,511 $ 189,166 $ 83,405 $ 817,950 $
Debt Service (Continued)
76
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2012
Improvement and
TIFUtility RevenueImprovementDebtCapitalCapital
BondsRefunding BondsBonds ofServiceImprovementEquipment
2007A20102012ASubtotalProjectsRevolving Fund
Revenue:
General property taxes-$ -$ -$ 1,089,767 $ -$ -$
Tax increments- - - - - -
Intergovernmental- - - - - -
Special assessments- 21,648 - 262,067 - -
Charges for services- - - - - -
Investment earnings- 282 658 15,945 9,890 2,210
Refunds - - - - - -
Miscellaneous- - - - 206,462 4,792
Total revenue- 21,930 658 1,367,779 216,352 7,002
Expenditures:
Current:
General government- - - - 2,418 -
Public works- - - - - -
Parks, recreation and forestry- - - - - -
Conservation of natural resources- - - - - -
Community development- - - - - -
Capital outlay:-
General government- - - - - -
Public safety- - - - 32,391 229,976
Public works- - - - - 277,166
Debt service:-
Principal265,000 85,000 - 1,815,000 - -
Interest and fiscal charges142,718 24,085 - 512,601 - -
Bond Issuance Costs- - 32,596 35,921 - -
Total expenditures407,718 109,085 32,596 2,363,522 34,809 507,142
Revenue over (under) expenditures(407,718) (87,155) (31,938) (995,743) 181,543 (500,140)
Other financing sources (uses):
Transfer in407,026 - - 931,664 - 250,000
Transfer out- - - - - -
Sale of property- - - - - 4,175
Issuance of debt- - 31,656 456,656 - 150,000
Total other financing
sources (uses)407,026 - 31,656 1,388,320 - 404,175
Net increase (decrease) in fund balance(692) (87,155) (282) 392,577 181,543 (95,965)
Fund balance (deficit) -
Beginning of yea r 154,320 110,972 - 2,637,638 2,015,841 184,259
Fund balance (deficit) - December 31153,628 $ 23,817 $ (282)$ 3,030,215 $ 2,197,384 $ 88,294 $
Capital Projects Debt Service (Continued)
77
Statement 14
Page 2 of 3
ClosedSurface Birch StreetTax Increment
BondStreetWater Hodgson Road Financing
FundReconstructionSealcoatingManagementImprovement 1-5
435 $ -$ -$ -$ -$ -$
- - - - - 39,366
- - - - - -
3,952 15,116 - 71,575 - -
- - - - - -
13,326 5,854 7,325 3,660 155 697
- - 39,599 - - -
- - - - - -
17,713 20,970 46,924 75,235 155 40,063
8,557 - - - - -
- - 502,767 30,190 - -
- - - - - -
- - - - - -
- - - - - 630
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
8,557 - 502,767 30,190 - 630
9,156 20,970 (455,843) 45,045 155 39,433
- - 467,250 - - -
- - - - - -
- - - - - -
- - - - - -
- - 467,250 - - -
9,156 20,970 11,407 45,045 155 39,433
1,420,849 587,203 463,240 367,434 15,583 60,023
1,430,005 $ 608,173 $ 474,647 $ 412,479 $ 15,738 $ 99,456 $
Capital Projects (Continued)
78
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2012
Office
Tax IncrementTax IncrementEquipment
FinancingFinancingDedicatedI35ERevolving
1-101-11ParksInterchangeFund
Revenue:
General property taxes-$ -$ -$ -$ -$
Tax increments158,448 88,880 - - -
Intergovernmental- - - 300,000 -
Special assessments- - - - -
Charges for services- - - - -
Investment earnings2,293 - 4 2,648 2,712
Refunds - - - - -
Miscellaneous- - - - -
Total revenue160,741 88,880 4 302,648 2,712
Expenditures:
Current:
General government:- - - - -
Public works- - - 21,281 -
Parks, recreation and forestry- - - - -
Conservation of natural resources- - - - -
Community development1,094 3,328 - - -
Capital outlay:
General government- - - - 43,115
Public safety- - - - -
Public works- - - - -
Debt service:
Principal- - - - -
Interest and fiscal charges- - 17,359 - -
Bond Issuance Costs- - - - -
Total expenditures1,094 3,328 17,359 21,281 43,115
Revenue over (under) expenditures159,647 85,552 (17,355) 281,367 (40,403)
Other financing sources (uses):
Transfer in- - 100,000 - 25,000
Transfer out(159,000) (85,000) - - -
Sale of property- - - - -
Issuance of debt- - - - -
Total other financing
sources (uses)(159,000) (85,000) 100,000 - 25,000
Net increase (decrease) in fund balance647 552 82,645 281,367 (15,403)
Fund balance (deficit) -
Beginning of year188,627 (764,145) (578,237) (6,842) 267,092
Fund balance (deficit) - December 31189,274 $ (763,593)$ (495,592)$ 274,525 $ 251,689 $
Capital Projects (Continued)
79
Statement 14
Page 3 of 3
Permanent
Fund
Legacy WoodsCapitalFoxborough
Edge ProjectsEnvironmentTotal
Improvement SubtotalFund2012
-$ 435 $ -$ 1,090,202 $
- 286,694 - 286,694
- 300,000 - 300,000
- 90,643 - 352,710
- - - 191,835
5,437 56,211 1,115 74,716
- 39,599 - 39,599
- 211,254 - 211,254
5,437 984,836 1,115 2,547,010
- 10,975 - 10,975
- 554,238 - 554,238
- - - 188,908
- - 10,460 10,460
- 5,052 - 5,052
-
- 43,115 - 43,115
- 262,367 - 262,367
- 277,166 - 277,166
-
- - - 1,815,000
- 17,359 - 529,960
- - - 35,921
- 1,170,272 10,460 3,733,162
5,437 (185,436) (9,345) (1,186,152)
- 842,250 - 1,773,914
- (244,000) - (244,000)
- 4,175 - 4,175
- 150,000 - 606,656
- 752,425 - 2,140,745
5,437 566,989 (9,345) 954,593
548,979 4,769,906 119,881 7,865,362
554,416 $ 5,336,895 $ 110,536 $ 8,819,955 $
Capital Projects (Continued)
80
CITY OF LINO LAKES, MINNESOTAStatement 15
SPECIAL REVENUE FUND - PROGRAM RECREATION
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2012
Variance with
Final Budget
OriginalFinalPositive
BudgetBudgetActual(Negative)
Revenue:
Charges for services:
Recreation Fees174,150 $ 174,150 $ 191,835 $ 17,685 $
Investment earnings- - 1,445 1,445
Total revenue174,150 174,150 193,280 19,130
Expenditures:
Current:
Personal services66,000 66,000 60,830 5,170
Supplies48,815 48,815 108,631 (59,816)
Other services and charges3,000 3,000 403 2,597
Contractual services30,525 30,525 19,044 11,481
Capital outlay2,000 2,000 - 2,000
Total expenditures150,340 150,340 188,908 (38,568)
Net increase (decrease) in fund balance23,810 $ 23,810 $ 4,372 (19,438)$
Fund balance - January 1112,937
Fund balance - December 31117,309 $
2012
Fiduciary Funds
Agency Fund
Agency Funds are used to account for assets held by the City as an agent for individuals, private
organizations, or other governments. The City main tained the following Agency fund during the year:
Contractor’s Deposits – to account for pass-through costs re lating to prospective developers.
81
CITY OF LINO LAKES, MINNESOTAStatement 16
STATEMENT OF CHANGES IN ASSETS AND LIABIL ITIES - FIDUCIARY FUNDS - AGENCY FUNDS
BalanceBalance
January 1,December 31,
2012AdditionsDeductions2012
Assets
Cash and investments700,980 $ 282,553 $ 473,352 $ 510,181 $
Liabilities
Deposits payable700,980 $ 282,553 $ 473,352 $ 510,181 $
Year Ended December 31, 2012
SUPPLEMENTARY FINANCIAL INFORMATION
82
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2012
Final
InterestMaturity
RatesDatedDate
General Obligation Bonds:
2009A Equipment Certificates3.00%4/1/200912/31/2012
2010A Equipment Certificates2.00%-3.00%4/1/1012/31/2013
2011A Equipment Certificates1.00%2/14/1112/31/2014
2012A Equipment Certificates1.00%2/1/1212/31/2015
G.O. Tax Abatement Bonds, Series 2006C4.00%-4.30%8/15/062/1/23
G.O. Utility Revenue Bonds, Seri es 2006D4.00%-4.15%8/15/062/1/17
G.O. CIP Refunding Bonds, Series 2006E4.00%11/1/062/1/18
G.O. Tax Increment Bonds, Series 2007A4.00%-4.125%7/15/20072/1/2024
G.O. Refunding Bonds, Series 2012A1.00%-2.00%11/15/20122/1/2024
Total General Obligation Bonds
Special Assessment Bonds:
G. O. Improvement Bonds of 2002A3.00%-4.10%8/1/022/1/13
G. O. Improvement Bonds of 2002B3.20%-5.55%8/1/022/1/13
G. O. Improvement Refunding Bonds of 2003A2.00%-4.25%12/1/032/1/19
G. O. Improvement Bonds of 2003B3.20%-5.60%12/1/032/1/14
G. O. Improvement Bonds of 2005A4.35%-5.15%11/1/052/1/21
G. O. Improvement Refunding Bonds of 2005B3.75%-5.00%11/1/052/1/15
G.O. Improvement & Utility Revenue Re funding Bonds, Series 2010A 2.00%-3.00%7/9/102/1/20
Total General Improve ment Bonds with special assessments pledged
Revenue Bonds:
G. O. Water Utility Revenue Ref unding Bonds of 2006F3.55%-3.625%11/1/062/1/12
Total Revenue Bonds
Other Long-Term Debt:
Note Payable - Anoka C ounty - 2009A4.00%-3.70%8/01/098/1/24
Total City indebtedness
83
Exhibit 1
Prior Years PrincipalInterest
OriginalPayablePayableDueDue
IssuePayments1/1/12IssuedPayments12/31/12In 2013In 2013
336,000 218,000 $ 118,000 $ -$ 118,000 $ -$ -$ -$
336,000 218,000 118,000 - 58,000 60,000 60,000 1,800
170,000 - 120,000 - 39,000 81,000 40,000 810
150,000 - - 150,000 - 150,000 49,000 2,875
2,460,000 30,000 2,430,000 - 85,000 2,345,000 125,000 96,320
570,000 200,000 370,000 - 55,000 315,000 60,000 11,723
2,990,000 385,000 2,605,000 - 320,000 2,285,000 355,000 84,300
4,215,000 555,000 3,660,000 - 265,000 3,395,000 285,000 131,026
2,015,000 - - 2,015,000 - 2,015,000 - 13,760
13,242,000 1,606,000 9,421,000 2,165,000 940,000 10,646,000 974,000 342,614
645,000 585,000 60,000 - 30,000 30,000 30,000 615
2,110,000 1,595,000 515,000 - 250,000 265,000 265,000 7,354
2,090,000 1,545,000 545,000 - 60,000 485,000 485,000 9,744
250,000 155,000 95,000 - 30,000 65,000 30,000 2,778
5,550,000 1,370,000 4,180,000 - 330,000 3,850,000 345,000 186,110
3,755,000 2,065,000 1,690,000 - 420,000 1,270,000 425,000 52,875
1,000,000 100,000 900,000 - 85,000 815,000 95,000 21,600
15,400,000 7,315,000 7,985,000 - 1,205,000 6,780,000 1,675,000 281,076
1,740,000 1,335,000 405,000 - 405,000 - - -
1,740,000 1,335,000 405,000 - 405,000 - - -
4,260,000 - 3,695,000 - - 3,695,000 - 132,558
34,642,000 $ 10,256,000 $ 21,506,000 $ 2,165,000 $ 2,550,000 $ 21,121,000 $ 2,649,000 $ 756,248 $
2012
84
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2012
Public
LeaseProjectG. O.G. O.G. O.
Year ofEquipmentEquipmentEquipmentRevenueRefundingImprovementImprovementImprovement
Levy/CertificatesCertificatesCertificatesBondsBondsBondsBondsBonds
Collectionof 2010Aof 2011Aof 2012Aof 1998A1999Cof 2002Aof 2003Bof 2005A
2012/201364,890 $ 42,851 $ 54,469 $ -$ -$ -$ 20,248 $ 569,609 $
2013/2014- 43,481 53,561 - - - 23,781 566,197
2014/2015- - 54,086 - - - - 567,247
2015/2016- - - - - - - 572,497
2016/2017- - - - - - - 571,184
2017/2018- - - - - - - 574,072
2018/2019- - - - - - - 574,907
2019/2020- - - - - - - 579,639
2020/2021- - - - - - - -
2021/2022- - - - - - - -
2022/2023- - - - - - - -
2023/2024- - - - - - - -
64,890 $ 86,332 $ 162,116 $ -$ -$ -$ 44,029 $ 4,575,352 $
85
Exhibit 2
G. O.G. O.G. O.G.O.
Improvemen t TaxCIPG. O.Improvement an d
RefundingAbatemen t RefundingTIF Utility RevenueG.O.
BondsBondsBondsBondsRefunding BondsRefunding Bonds
of 2005B2006C2006E2007A2010A2012ATotal
490,613 $ 245,511 $ 459,060 $ 442,813 $ 123,427 $ 19,818 $ 2,513,491 $
463,050 255,381 443,940 493,843 121,433 101,149 2,464,667
- 264,458 449,820 495,103 124,688 257,620 1,955,402
- 278,140 460,110 500,983 121,537 266,406 1,933,267
- 285,411 464,100 506,023 118,387 259,128 1,945,105
- 297,263 - 268,723 120,488 261,868 1,260,546
- 313,472 - 271,243 117,180 258,849 1,276,802
- 323,316 - 278,593 124,372 182,417 1,305,920
- 337,517 - 285,313 - 179,687 622,830
- 350,447 - 291,403 - 181,949 641,850
- - - 301,855 - 183,899 301,855
- - - 306,127 - 180,330 306,127
953,663 $ 2,950,916 $ 2,277,030 $ 4,442,022 $ 971,512 $ 2,333,120 $ 16,527,862 $
86
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2012
G. O.
G. O.G. O.ImprovementG. O.
EquipmentEquipmentEquipmentImprovementImprovemen t RefundingImprovemen t
CertificatesCertificatesCertificatesBondsBondsBondsBonds
2010A2011A2012Aof 2002Aof 2002B2003A2003B
Bonds payable60,000 $ 81,000 $ 150,000 $ 30,000 $ 265,000 $ 485,000 $ 65,000 $
Future interest payable1,8001,2204,3956157,35473,4843,758
Totals61,800 $ 82,220 $ 154,395 $ 30,615 $ 272,354 $ 558,484 $ 68,758 $
Payments to maturity:
201361,800 $ 40,810 $ 51,875 $ 30,615 $ 272,354 $ 78,438 $ 32,778 $
2014- 41,410 51,010 - - 81,088 35,980
2015- - 51,510 - - 78,488 -
2016- - - - - 80,788 -
2017- - - - - 77,988 -
2018- - - - - 79,994 -
2019- - - - - 81,700 -
2020- - - - - - -
2021- - - - - - -
2022- - - - - - -
2023- - - - - - -
2024- - - - - - -
61,800 $ 82,220 $ 154,395 $ 30,615 $ 272,354 $ 558,484 $ 68,758 $
87
Exhibit 3
G. O.G.O.G.O.G.O.G.O.
G. O.ImprovementTaxUtilityCIPG.O.Improvement and
ImprovementRefundingAbatementRevenueRefundingTIFUtility Revenue
BondsBondsBondsBondsBondsBondsRefunding Bonds
2005A2005B2006C2006D2006E2007A2010A
3,850,000 $ 1,270,000 $ 2,345,000 $ 315,000 $ 2,285,000 $ 3,395,000 $ 815,000 $
949,85295,000639,81233,553284,300767,12998,975
4,799,852 $ 1,365,000 $ 2,984,812 $ 348,553 $ 2,569,300 $ 4,162,129 $ 913,975 $
531,111 $ 477,875 $ 221,320 $ 71,722 $ 439,300 $ 416,026 $ 116,600 $
533,361 456,625 231,020 69,292 430,000 463,426 114,700
529,736 430,500 240,043 66,832 415,600 464,326 117,250
530,236 - 248,381 69,254 420,800 469,526 114,250
534,611 - 260,858 71,453 430,100 473,926 111,250
532,861 - 267,464 - 433,500 252,126 113,175
534,633 - 278,327 - - 254,326 110,025
534,784 - 293,233 - - 261,026 116,725
538,519 - 302,183 - - 267,126 -
- - 315,103 - - 272,504 -
- - 326,880 - - 282,016 -
- - - - - 285,775 -
4,799,852 $ 1,365,000 $ 2,984,812 $ 348,553 $ 2,569,300 $ 4,162,129 $ 913,975 $
88
Exhibit 3
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
December 31, 2012
N ote
Payable -
G.O.Anoka
Refunding BondsCounty -
2012A2009ATotals
Bonds payable2,015,000 $ 3,695,000 $ 21,121,000 $
Future interest payable1,707,0201,169,1405,837,407
Totals3,722,020 $ 4,864,140 $ 26,958,407 $
Payments to maturity:
201318,875 $ 132,558 $ 2,994,057 $
201496,332 132,5582,736,802
2015245,352 495,558 3,135,195
2016253,720 501,158 2,688,113
2017246,789 506,158 2,713,133
2018249,398 510,557 2,439,075
2019246,523 518,408 2,023,942
20201,673,730 520,282 3,399,780
2021171,130 526,092 1,805,050
2022173,285 535,963 1,296,855
2023175,143 484,848 1,268,887
2024171,743 - 457,518
3,722,020 $ 4,864,140 $ 26,958,407 $
CITY OF LINO LAKES, MIN N
89
CITY OF LINO LAKES, MINNESOTAExhibit 4
INSURANCE IN FORCE
December 31, 2012
CoverageAmount
General Liability:
Bodily Injury/Property Damage1,500,000 $
Personal Injury/Police Professional Liability1,500,000
Fire Legal Liability 50,000
Medical Expense Occurrence Limi t 1,000
Medical Expense Aggregate 10,000
Property Damage ($500 Deductible)
Property:
Buildings and Contents (including Mobile and ED P - Electronic Equipment & Valuable Papers)29,726,333
Faithful Performance Blanket Bond500,000
Storage Tank Liability 250,000
Rented/Leased Equipment ($1,000 Deductible)500,000
Public Official and Employee Liability ($1,000 Deductible each occurrence)1,500,000
Automotive:
Bodily injury and property damage1,500,000
Comprehensive and CollisionActual Cash Value
Uninsured motorists 200,000
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible)250,000
90
CITY OF LINO LAKES, MINNESOTAExhibit 5
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES
Tax CapacityTax Capacity
ValuesValues
2011/20122010/2011
Taxable valuations:
Total17,999,453 $ 19,783,539 $
Fiscal disparities:
Distribution2,762,556 2,932,332
Contribution(1,246,881) (1,576,375)
Less: Captured Tax Increment Value(279,219) (251,890)
19,235,909 $ 20,887,606 $
Tax Tax
CertifiedCapacityCertifiedCapacity
LevyRateLevyRate
Taxes Levied:
Revenue7,192,818 $ 37.501 7,719,240 $ 37.425
Bond and Interest1,034,441 5.393 940,760 4.616
Totals8,227,259 $ 42.894 8,660,000 $ 42.041
The tax capacity rate is based on the total certif ied levy net of the fiscal disparity distribution.
III.
STATISTICAL
SECTION
Statistical Section (Unaudited)
This part of the Comprehensive Annual Fina ncial Report presents detailed information as a
context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about overall financial health. The following are the
categories of the various schedules that are included in this section.
Financial Trends Tables 1-4
These schedules contain trend information to help the reader understand how the City’s financial
performance and well-being have changed over time.
Revenue Capacity Tables 5-8
These schedules contain information to help the reader assess the City’s most significant revenue
sources.
Debt Capacity Tables 9-11
These schedules present information to help the reader assess the affordability of the City’s
current levels of outstanding debt and the City’s ability to issue additional debt in the future.
Demographic and Economic Information Tables 12-13
These schedules offer demographic and economic i ndicators to help the reader understand the
environment within which the City’s financial activities take place.
Operating information Tables 14-16
These schedules contain service and infrastructure data to help the reader understand how the
information the City’s financial report relates to the services the City provides and the activities it
performs.
91
CITY OF LINO LAKES, MINNESOTA Table 1
NET POSITION BY COMPONENT,
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2003200420052006200720082009201020112012
Governmental activities
Net Investment in Capital Assets25,993,905 $ 28,807,262 $ 25,460,528 $ 29,549,174 $ 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217 $ 24,600,103 $ 22,166,342 $
Restricted3,568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112
Unrestricted15,668,226 16,249,541 13,577,071 14,516,466 6,339,528 10,790,359 15,926,322 16,738,885 13,463,210 17,639,038
Total governmental activities net position45,230,686 $ 48,101,855 $ 51,088,083 $ 54,770,148 $ 53,453,148 $ 49,133,900 $ 48,741,249 $ 47,729,127 $ 49,662,116 $ 51,400,492 $
Business-type activities
Net Investment in Capital Assets25,537,383 $ 26,713,498 $ 28,342,832 $ 29,485,942 $ 29,836,775 $ 30,372,670 $ 30,071,840 $ 29,648,461 $ 29,216,866 $ 28,798,095 $
Unrestricted3,778,936 4,744,875 5,572,338 6,880,547 8,063,983 9,028,778 10,112,207 10,728,626 11,201,362 12,102,013
Total business-type activities net position29,316,319 $ 31,458,373 $ 33,915,170 $ 36,366,489 $ 37,900,758 $ 39,401,448 $ 40,184,047 $ 40,377,087 $ 40,418,228 $ 40,900,108 $
Primary Government
Net Investment in Capital Assets51,531,288 $ 55,520,760 $ 53,803,360 $ 59,035,116 $ 66,625,928 $ 58,845,535 $ 53,472,293 $ 52,210,678 $ 53,816,969 $ 50,964,437 $
Restricted3,568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 11,595,112
Unrestricted19,447,162 20,994,416 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 27,467,511 24,664,572 29,741,051
Total primary government net position74,547,005 $ 79,560,228 $ 85,003,253 $ 91,136,637 $ 91,353,906 $ 88,535,348 $ 88,925,296 $ 88,106,214 $ 90,080,344 $ 92,300,600 $
Fiscal Year
92
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION,
LAST TEN FISCAL YEARS
(accrual basis of accounting)
Fiscal Year
2003200420052006200720082009
Expenses
Governmental activities:
General Government6,092,587 $ 2,524,387 $ 2,941,279 $ 2,886,825 $ 2,197,672 $ 2,323,358 $ 2,201,439 $
Public Safety2,648,944 2,799,294 3,091,174 3,516,376 3,730,504 4,051,162 4,299,366
Public Services1,162,412 7,254,708 9,187,436 3,871,968 10,580,560 7,608,626 4,027,553
Parks, Recreation and Forestry932,113 1,196,096 799,335 1,162,458 1,357,133 919,948 1,313,560
Conservation of Natural Resources111,946 116,869 150,092 156,592 183,420 184,624 215,607
Community Development859,110 420,874 383,211 691,880 1,122,802 1,114,158 1,005,997
Interest on long-term debt815,681 748,832 797,341 926,021 980,849 1,045,781 928,668
Total governmental activities expenses12,622,793 $ 15,061,060 $ 17,349,868 $ 13,212,120 $ 20,152,940 $ 17,247,657 $ 13,992,190 $
Business-type activities:
Water968,458 $ 914,039 $ 876,592 $ 976,575 $ 1,170,902 $ 1,020,770 $ 1,089,569 $
Sewer1,046,170 1,130,994 1,217,825 1,228,123 1,298,963 1,287,943 1,432,107
Total business-type activities2,014,628 2,045,033 2,094,417 2,204,698 2,469,865 2,308,713 2,521,676
Total primary government expenses14,637,421 $ 17,106,093 $ 19,444,285 $ 15,416,818 $ 22,622,805 $ 19,556,370 $ 16,513,866 $
Program Revenues
Governmental activities:
Charges for services:
General Government102,520 $ 122,861 $ 111,480 $ 88,924 $ 91,646 $ 79,844 $ 101,741 $
Public Safety964,034 1,049,858 998,210 844,514 1,078,995 1,296,418 725,747
Public Works493,312 454,191 434,087 420,741 389,489 413,040 428,174
Parks, Recreation and Forestry250,816 242,857 196,951 188,439 185,803 187,285 165,994
Conservation of Natural Resources5,369 11,763 4,873 6,854 4,559 3,660 3,858
Community Development28,210 28,952 26,985 20,530 15,839 11,623 8,667
Operating grants and contributions633,691 677,079 761,924 643,749 851,791 693,065 682,797
Capital grants and contributions4,536,567 7,515,238 10,128,024 5,963,204 7,189,346 1,094,789 1,357,015
Total governmental activities program revenues7,014,519 $ 10,102,799 $ 12,662,534 $ 8,176,955 $ 9,807,468 $ 3,779,724 $ 3,473,993 $
Business-type activities:
Charges for services:
Water1,064,326 $ 979,075 $ 1,031,175 $ 1,175,172 $ 1,215,763 $ 1,058,493 $ 1,365,817 $
Sewer1,216,589 1,280,652 1,361,759 1,391,702 1,446,112 1,472,093 1,502,164
Operating grants and contributions- - - - - - 62,710
Capital grants and contributions2,719,081 1,589,419 1,733,775 1,535,631 80,750 10,117 8,769
Total business-type activities program revenues4,999,996 3,849,146 4,126,709 4,102,505 2,742,625 2,540,703 2,939,460
Total primary government program revenues12,014,515 $ 13,951,945 $ 16,789,243 $ 12,279,460 $ 12,550,093 $ 6,320,427 $ 6,413,453 $
Net (Expense)/Revenue
Governmental activities(5,608,274)$ (4,958,261)$ (4,687,334)$ (5,035,165)$ (10,345,472)$ (13,467,933)$ (10,518,197)$
Business-type activities2,985,368 1,804,113 2,032,292 1,897,807 272,760 231,990 417,784
Total primary government net expense(2,622,906)$ (3,154,148)$ (2,655,042)$ (3,137,358)$ (10,072,712)$ (13,235,943)$ (10,100,413)$
General Revenues and Other Changes in Net Position
Governmental activities:
Property taxes6,847,470 $ 6,630,279 $ 7,383,415 $ 8,269,944 $ 8,785,280 $ 9,424,697 $ 9,808,324 $
Unrestricted grants and contributions- - - - 256,877 129,607 11,321
Unrestricted investment earnings194,220 221,302 433,387 713,794 864,578 576,071 429,325
Gain on sale of capital assets- 1,280,957 - 33,217 17,424 12,512 12,644
Miscellaneous- - 160,955 - - - -
Transfers(301,355) (303,108) (304,195) (299,725) (895,687) (994,202) (136,068)
Total governmental activities6,740,335 $ 7,829,430 $ 7,673,562 $ 8,717,230 $ 9,028,472 $ 9,148,685 $ 10,125,546 $
Business-type activities:
Unrestricted investment earnings20,866 $ 34,833 $ 120,310 $ 253,787 $ 365,822 $ 274,498 $ 228,747 $
Transfers301,355 303,108 304,195 299,725 895,687 994,202 136,068
Total business-type activities322,221 337,941 424,505 553,512 1,261,509 1,268,700 364,815
Total primary government7,062,556 $ 8,167,371 $ 8,098,067 $ 9,270,742 $ 10,289,981 $ 10,417,385 $ 10,490,361 $
Change in Net Position
Governmental activities1,132,061 $ 2,871,169 $ 2,986,228 $ 3,682,065 $ (1,317,000)$ (4,319,248)$ (392,651)$
Business-type activities3,307,589 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690 782,599
Total primary government change in net position4,439,650 $ 5,013,223 $ 5,443,025 $ 6,133,384 $ 217,269 $ (2,818,558)$ 389,948 $
93
Table 2
201020112012
1,987,415 $ 1,990,137 $ 1,883,961 $
3,971,261 4,019,101 4,046,415
3,968,063 8,110,979 5,584,283
1,124,907 1,218,472 1,210,867
197,571 139,544 184,051
1,105,254 617,747 430,121
1,064,172 927,535 837,755
13,418,643 $ 17,023,515 $ 14,177,453 $
1,045,901 $ 966,643 $ 949,121 $
1,466,847 1,638,063 1,527,637
2,512,748 2,604,706 2,476,758
15,931,391 $ 19,628,221 $ 16,654,211 $
98,403 $ 103,687 $ 129,151 $
691,005 713,985 642,745
427,223 382,287 476,296
177,984 210,976 191,832
4,153 4,392 19,297
14,148 5,138 16,940
617,450 593,798 450,179
1,388,984 7,347,613 5,125,693
3,419,350 $ 9,361,876 $ 7,052,133 $
1,087,013 $ 1,090,104 $ 1,371,809 $
1,498,218 1,494,188 1,505,781
- - -
8,709 1,462 20,018
2,593,940 2,585,754 2,897,608
6,013,290 $ 11,947,630 $ 9,949,741 $
(9,999,293)$ (7,661,639)$ (7,125,320)$
81,192 (18,952) 420,850
(9,918,101)$ (7,680,591)$ (6,704,470)$
8,764,183 $ 8,768,805 $ 8,610,709 $
4,389 4,072 4,941
225,677 251,250 202,828
- 37,579 4,175
- - -
(7,078) 66,122 41,043
8,987,171 $ 9,127,828 $ 8,863,696 $
104,770 $ 126,215 $ 102,073 $
7,078 (66,122) (41,043)
111,848 60,093 61,030
9,099,019 $ 9,187,921 $ 8,924,726 $
(1,012,122)$ 1,466,189 $ 1,738,376 $
193,040 41,141 481,880
(819,082)$ 1,507,330 $ 2,220,256 $
94
CITY OF LINO LAKES, MINNESOTATable 3
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
2003200420052006
General Fund
Reserved133,921 $ 142,492 $ 148,652 $ 153,009 $
Unreserved4,775,969 5,067,973 5,300,156 5,337,225
N onspendable- - - -
Unassigned- - - -
Total general fund4,909,890 $ 5,210,465 $ 5,448,808 $ 5,490,234 $
All Other Governmental Funds
Reserved reported in:
Special Revenue Funds1,759 $ 1,718 $ 1,763 $ 1,813 $
Capital Projects Funds1,946,618 957,112 957,112 957,112
Debt Service Funds2,482,184 2,556,300 7,371,359 3,992,952
Permanent Funds- - 100,000 100,000
Unreserved reported in:
Special Revenue Funds32,704 57,616 74,716 82,385
Capital Projects Funds5,406,014 6,241,408 7,348,375 5,525,508
Debt Service Funds675,409 452,972 - -
Permanent Funds- - 853 5,378
N onspendable- - - -
Restricted- - - -
Committed- - - -
Assigned- - - -
Unassigned- - - -
Total all other governmental funds10,544,688 $ 10,267,126 $ 15,854,178 $ 10,665,148 $
Total all funds15,454,578 $ 15,477,591 $ 21,302,986 $ 16,155,382 $
Fiscal Year
95
Table 3 (Continued)
200720082009201020112012
181,759 $ 190,825 $ 196,568 $ 181,471 $ -$ -$
5,356,272 5,393,316 5,191,396 5,445,334 - -
- - - - 165,079 180,786
- - - - 5,440,101 5,053,031
5,538,031 $ 5,584,141 $ 5,387,964 $ 5,626,805 $ 5,605,180 $ 5,233,817 $
226,921 $ 226,973 $ 227,176 $ 227,342 $ -$ -$
885,825 812,400 736,772 658,875 - -
3,925,402 3,405,272 3,457,349 2,986,102 - -
100,000 100,000 100,000 100,000 - -
100,955 106,573 93,956 110,471 - -
8,395,827 5,927,411 11,611,835 12,537,841 - -
- - (558,443) (1,093,765) - -
17,023 22,224 15,824 12,676 - -
- - - - 906,010 823,113
- - - - 2,658,010 3,041,524
- - - - 110,568 115,196
- - - - 10,808,268 15,573,179
- - - - (3,154,496) (3,262,728)
13,651,953 $ 10,600,853 $ 15,684,469 $ 15,539,542 $ 11,328,360 $ 16,290,284 $
19,189,984 $ 16,184,994 $ 21,072,433 $ 21,166,347 $ 16,933,540 $ 21,524,101 $
Fiscal Year
96
CITY OF LINO LAKES, MINNESOTA Table 4
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
20032004200520062007
Revenues
Property Taxes6,687,516 $ 6,523,938 $ 7,230,287 $ 8,103,263 $ 8,529,846 $
Licenses and Permits766,524 867,909 812,172 581,582 694,435
Intergovernmental2,011,285 2,419,531 1,808,111 1,818,519 6,143,689
Special Assessments2,812,386 1,587,510 1,769,821 2,901,100 1,961,253
Charges for Services658,370 639,565 601,548 687,551 753,698
Fines and Forfeits97,223 106,053 100,980 101,518 139,932
Investment Earnings194,049 221,303 433,385 713,795 864,578
Miscellaneous677,823 782,179 948,009 716,692 889,901
Total revenues13,905,176 13,147,988 13,704,313 15,624,020 19,977,332
Expenditures
Current:
General Government5,808,015 2,261,908 2,701,731 2,614,303 1,953,960
Public Safety2,609,171 2,798,013 3,099,032 3,314,159 3,513,460
Public Works1,770,649 5,126,578 7,071,322 7,755,727 8,446,911
Parks, Recreation and Forestry969,597 954,945 1,111,301 1,076,727 1,103,021
Conservation of Natural Resources114,580 115,631 140,334 143,653 183,346
Community Development- - - 683,036 1,107,328
Capital outlay622,218 515,287 464,553 835,770 2,008,073
Debt Service
Principal1,684,450 1,960,000 2,016,000 2,155,000 1,973,000
Interest and fiscal charges865,638 798,405 838,950 1,011,157 937,895
Bond issuance costs- - - - -
Construction/Acquisition229,321 - - - -
Total expenditures14,673,639 14,530,767 17,443,223 19,589,532 21,226,994
Excess (deficiency) of revenues
over expenditures(768,463) (1,382,779) (3,738,910) (3,965,512) (1,249,662)
Other Financing Sources (Uses)
Sale of Property- 1,280,957 280,269 28,818 54,037
Proceeds from Issuance of Debt2,673,565 1,604,000 9,412,000 6,327,000 4,375,000
Premium on Bonds Issued- - 176,231 450 -
Discount on Bonds Issued- (6,057) - (13,635) (25,798)
Payment to Refunded Bond Escrow Agent- (1,170,000) - (7,225,000) -
Loan Payable Reapportionment- - - - -
Transfer In1,120,223 5,283,306 2,651,469 5,811,452 2,900,249
Transfer Out(1,421,578) (5,586,414) (2,955,664) (6,111,177) (3,019,224)
Total other financing sources (uses)2,372,210 1,405,792 9,564,305 (1,182,092) 4,284,264
Net change in fund balances1,603,747 $ 23,013 $ 5,825,395 $ (5,147,604)$ 3,034,602 $
Debt service as a percentage of
Fiscal Year
97
Table 4 (Continued)
20082009201020112012
9,095,085 $ 9,561,570 $ 8,647,488 $ 8,655,971 $ 8,560,340 $
802,135 307,714 330,138 322,030 319,172
1,004,476 1,259,016 1,176,863 1,331,914 5,267,570
950,188 968,995 851,270 904,522 816,998
872,534 778,163 780,044 812,604 744,633
133,531 111,807 127,203 154,020 155,956
576,071 429,325 225,677 251,244 202,825
516,415 513,306 502,992 460,710 414,088
13,950,435 13,929,896 12,641,675 12,893,015 16,481,582
2,058,267 1,918,246 1,730,390 1,773,515 1,619,215
3,806,389 4,122,352 3,798,106 3,791,329 3,861,265
5,542,308 1,965,640 1,902,411 2,192,732 3,339,430
1,033,260 1,106,006 945,821 1,059,191 1,056,976
183,024 209,466 185,232 134,122 176,318
1,113,232 1,005,095 1,098,682 624,286 435,154
585,875 501,806 282,938 4,209,593 616,931
1,749,000 1,908,000 1,866,000 2,030,000 2,145,000
1,074,052 994,809 1,042,883 983,129 831,875
- - - - 47,054
- - - - -
17,145,407 13,731,420 12,852,463 16,797,897 14,129,218
(3,194,972) 198,476 (210,788) (3,904,882) 2,352,364
13,750 35,700 20,600 50,953 4,175
209,000 4,596,000 1,170,000 120,000 2,165,000
- 11,141 10,980 - -
- - - - -
- - (965,000) - -
- - - (565,000) -
4,763,391 1,413,985 1,195,747 2,971,715 1,979,457
(4,796,159) (1,367,863) (1,127,625) (2,905,593) (1,910,435)
189,982 4,688,963 304,702 (327,925) 2,238,197
(3,004,990)$ 4,887,439 $ 93,914 $ (4,232,807)$ 4,590,561 $
Fiscal Year
98
CITY OF LINO LAKES, MINNESOTATable 5
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Commercial/Total Taxable
PayableResidentialIndustrialPersonalAssessedTotal Direct
YearPropertyPropertyPropertyValueTax Rate
200310,649,345 $ 1,487,554 $ 251,016 $ 12,387,915 $ 47.60 $
200412,252,347 1,982,146 259,194 14,493,687 42.29
200514,055,076 2,290,829 274,956 16,620,861 42.22
200615,825,619 2,740,583 271,665 18,837,867 41.40
200717,605,080 3,047,965 288,290 20,941,335 38.99
200818,382,645 3,431,107 279,102 22,092,854 38.97
200918,919,087 4,002,349 275,496 23,196,932 38.73
201017,978,917 3,800,004 291,904 22,070,825 37.91
201116,214,698 3,223,901 303,964 19,742,563 42.04
201214,743,557 2,945,026 310,870 17,999,453 42.89
Source: Anoka County, Minnesota Assessors' Office
99
CITY OF LINO LAKES, MINNESOTA Table 6
Direct and Overlappin g Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
Fiscal Year Basic Rate
General
Obligation
Debt
Service
Redevelopment
Debt Service
Total
Direct
Centennial
School
District
ISD # 12
Anoka
County
Other
Taxing
Districts
Total
Overlapping
Total Direct
and
Overlapping
Tax Rate
200340.268 $ 7.335 $ 47.603 $ 37.467 $ 37.714 $ 7.050 $ 82.231 $ 129.834 $
200436.302 5.985 42.287 36.649 35.221 6.373 78.243 120.530
200536.838 5.385 42.223 37.486 33.080 6.696 77.262 119.485
200636.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226
200734.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358
200834.560 4.407 38.967 35.258 31.078 6.956 73.292 112.259
200934.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015
201034.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258
201137.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966
201237.501 5.393 42.894 40.010 41.146 6.691 87.847 130.741
Source: Anoka County Property Records and Tax Division
Notes:
The majority of Lino Lakes is served by Independent School District No. 12.
Rates for debt service are based on each year's requirements.
City Direct Rate Overlapping Rates
100
CITY OF LINO LAKES, MINNESOTA Table 7
PRINCIPAL PROPERTY TAXPAYERS,
CURRENT YEAR AND NINE YEARS AGO
PercentagePercentage
of Total of Total
CityCity
TaxableTaxableTaxableTaxable
Net TaxNet TaxNet TaxNet Tax
TaxpayerCapacityRankCapacityCapacityRankCapacity
Target Corporation235,854 $ 11.31%252,988 $ 11.66%
Lino Lakes Realty LLC228,202 21.27- -
Xcel Energy157,305 30.87131,145 30.86
Moline Concrete Products133,691 40.74125,132 40.82
Kohl's Department Store117,218 50.65152,550 21.00
Taylor Corporation108,982 60.6199,752 60.65
Gargaro Properties LLC95,776 70.53- -
Marmon/Keystone Corp88,448 80.4972,296 80.47
CenterPoint Energy64,082 90.3649,316 100.32
SMW Federal Credit Union60,974 100.34- -
Lino Lakes Business Center- -99,752 50.65
Individual- -76,930 70.50
F&G Incorporated- -69,126 90.45
Total1,290,532 $ 7.17%1,128,987 $ 7.38%
Source: Anoka County
20122003
101
CITY OF LINO LAKES, MINNESOTATable 8
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
Collected within the
Taxes Levied for the Fiscal YearFiscal Year of Levy
Percentage
FiscalOperatingDebt Total Taxof
YearTax LevyTax LevyLevyAmountLevy
20035,180,932 $ 943,689 $ 6,124,621 $ 6,062,273 $ 99.0%
20045,623,542 927,078 6,550,620 6,145,419 93.8%
20056,342,211 927,091 7,269,302 6,881,838 94.7%
20067,042,626 934,281 7,976,907 7,594,019 95.2%
20077,558,995 897,333 8,456,328 8,324,180 98.4%
20087,973,236 893,720 8,866,956 8,581,974 96.8%
20098,295,172 949,166 9,244,338 8,982,756 97.2%
20107,816,232 879,182 8,695,414 8,400,439 96.6%
20117,719,240 940,760 8,660,000 8,486,845 98.0%
20127,192,818 1,034,441 8,227,259 8,095,502 98.4%
Notes:
Does not include tax increm ent levies and collections.
Current year levies and co llections include State levy related cr edits (HACA and Market Value Credit).
102
Table 8 (Continued)
Total Collections to Date
Collections inPercentageOutstandingPercentage
Subsequentof Delinquentof Levy
YearsAmountLevyTaxesOutstanding
87,237 $ 6,149,510 $ 100.0%-$ 0.0%
48,424 6,193,843 100.0%356,777 5.4%
56,276 6,938,114 100.0%331,188 4.6%
62,358 7,656,377 96.0%320,530 4.0%
104,065 8,428,245 99.7%28,083 0.3%
132,710 8,714,684 98.3%152,272 1.7%
197,045 9,179,801 99.3%64,537 0.7%
149,450 8,549,889 98.3%145,525 1.7%
66,215 8,553,060 98.8%106,941 1.2%
- 8,095,502 98.4%131,757 1.6%
103
CITY OF LINO LAKES, MINNESOTATable 9
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Business-T yp e
Governmental ActivitiesActivities
General
GeneralS p ecialOtherObli g ationTotal
FiscalObli g ationAssessmentsLon g -TermRevenuePrimar y
YearBondsPa y ableDebtBondsGovernment
20036,030,000 $ 12,840,000 $ -$ 2,970,000 $ 21,840,000 $
20045,764,000 11,580,000 - 2,705,000 20,049,000
20055,335,000 19,405,000 - 2,425,000 27,165,000
20067,177,000 13,940,000 - 4,410,000 25,527,000
200711,569,000 12,520,000 - 1,855,000 25,944,000
200811,184,000 11,365,000 - 1,530,000 24,079,000
200910,712,000 10,265,000 4,260,000 1,170,000 26,407,000
201010,141,000 9,175,000 4,260,000 795,000 24,371,000
20119,421,000 7,985,000 3,695,000 405,000 21,506,000
201210,646,000 6,780,000 3,695,000 - 21,121,000
Notes:
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedulefor personal inco me and population data.
(1) Personal income information is not available afte r 2011 from the Bureau of Economic Analysis Report
104
Table 9 (Continued)
(1)
Less: AmountsPercentage Percentage
Available in DebtNetof Assessed of PersonalPer
Service FundsBonded DebtMarket Value IncomeCapita
2,482,184 $ 19,357,816 $ 1.55 3.13 1,189 $
2,556,300 17,492,700 1.22 2.69 1,071
7,371,359 19,793,641 1.29 2.84 1,379
3,992,952 21,534,048 1.24 2.98 1,293
3,925,402 22,018,598 1.14 2.90 1,307
3,405,272 20,673,728 1.02 2.65 1,205
3,457,349 22,949,651 1.08 3.00 1,301
2,986,102 21,384,898 1.07 2.73 1,206
2,638,129 18,867,871 1.05 2.31 1,049
3,035,557 18,085,443 1.10 N/A 1,025
105
CITY OF LINO LAKES, MINNESOTATable 10
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2012
Estimated
EstimatedShare of
DebtPercentageOverlapping
OutstandingApplicableDebt
Overlapping:
Anoka County 151,019,654 $ 6.6%9,966,378 $
ISD 1271,680,000 47.7%34,209,876
ISD 62412,540,000 3.5%442,172
ISD 83129,930,000 7.7%2,304,231
Metropolitan Council1,724,988,995 0.6%10,345,893
Anoka County Railroad Authority28,380,000 6.6%1,872,907
Total Overlapping 59,141,457
City of Lino Lakes Direct Debt21,121,000 $ 100%21,121,000
Total Direct and Overlapping Debt:80,262,457 $
Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment)
of property subject to taxation in overlapping unit to valuation of property subject to taxation in City.
Sources: Taxable value data used to estimate applicable per centages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of thos e overlapping governments that is borne by the residents and
businesses of the City. This process rec ognizes that, when considering the City's ability to issue and repay long-term debt,
the entire debt burden borne by the resi dents and businesses should be taken into account. Ho wever, this does not imply
that every taxpayer is a resident, and therefore responsib le for repaying the debt, of each overlapping government.
106
CITY OF LINO LAKES, MINNESOTATable 11
Legal Debt Margin Information
Last Ten Fiscal Years
2003200420052006
Debt limit25,024,436 $ 28,616,070 $ 30,698,674 $ 34,686,356 $
Total net debt applicable to limit5,350,000 5,169,000 4,845,000 4,332,000
Legal debt margin19,674,436 $ 23,447,070 $ 25,853,674 $ 30,354,356 $
Total net debt applicable to the limit
as a percentage of debt limi t 21.38%18.06%15.78%12.49%
Fiscal Year
107
Table 11
Legal Debt Margin Calculation for Fiscal Year 2012
Market value1,640,455,854 $
Debt limit (3% of market value)49,213,676
Debt applicable to limit4,591,000
Legal debt margin44,622,676 $
200720082009201020112012
38,556,150 $ 60,658,830 $ 64,036,746 $ 60,622,086 $ 54,123,645 $ 49,213,676 $
4,039,000 3,804,000 3,642,000 3,386,000 2,961,000 4,591,000
34,517,150 $ 56,854,830 $ 60,394,746 $ 57,236,086 $ 51,162,645 $ 44,622,676 $
10.48%6.27%5.69%5.59%5.47%9.33%
Fiscal Year
108
CITY OF LINO LAKES, MINNESOTATable 12
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
(2)
PersonalPer
IncomeCapita(3)(4)
Fiscal(1)(thousands PersonalSchoolUnemployment
YearPopulation of dollars)IncomeEnrollmentRate
200318,368 618,267 $ 33,660 $ 6,992 5.0
200418,725 650,301 34,729 6,956 4.6
200519,698 697,388 35,404 6,934 3.8
200619,736 723,739 36,671 6,986 4.1
200719,851 758,943 38,232 6,846 4.8
200819,987 780,053 39,028 6,768 6.9
200920,305 764,077 37,630 6,725 7.8
201020,216 782,56138,7106,532 7.1
201120,505 817,12439,8506,426 5.9
201220,600 N/A N/A 6,421 5.6
Source:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2012 which is
city estimate
(2) Information from Bureau of Economic Analysis Report - Anoka County statistics used as local
information is unavailable
(3) Information from ISD 12 Website
(4) Information from MN Department of Employmen t and Economic Development - Anoka County statistics
used as local information is unavailable
Note: Information not available is marked N/A
109
CITY OF LINO LAKES, MINNESOTA Table 13
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
EmployerEmployeesRankEmployeesRank
State of Minnesota Corrections460 1 N/A%428 2 N/A%
ISD 12 - Centennial Schools362 2 N/AN/A-N/A
Taylor Corporation160 3 N/A228 4 N/A
Target Corporation150 4 N/A300 3 N/A
Curtis 1000130 5 N/A- -N/A
Molin Concrete Products120 6 N/A125 9 N/A
Anoka County Juvenile Center120 7 N/A2,530 1 N/A
Kohls120 8 N/A160 6 N/A
YMCA120 9 N/A- -N/A
Rehbein Transit, Inc.100 10 N/A140 8 N/A
Synovis Interventional Systems- - - 222 5 N/A
Summit Fire Protection- - - 150 7 N/A
Custom Manufacturing- - - 80 10 N/A
Total1,842 - %4,363 - %
Source: City of Lino Lakes Official Statements/Employer Surveys
Notes:
(1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employ ment
within the City was not available.
Employment
of Total
Percentage Percentage
of Total
Employment
(1)
2003 2012
(1)
110
CITY OF LINO LAKES, MINNESOTATable 14
Full-time-Equivalent Employees by Type
Last Ten Fiscal Years
20032004200520062007
General Government
Administration5.00 5.00 5.00 5.00 5.00
Seniors0.63 0.63 0.63 0.63 0.63
Finance3.50 3.50 3.50 3.50 3.50
Economic Developmen t 1.00 1.00 1.00 1.00 1.00
Planning2.00 2.00 2.00 2.00 2.00
Community Developmen t 2.00 2.00 2.75 2.75 2.75
Engineering- - - - -
Building1.00 1.00 1.00 1.00 1.00
Other0.55 0.55 1.15 1.15 1.40
Total General Governmen t 15.68 15.68 17.03 17.03 17.28
Public Safety
Officers22.00 22.00 25.00 26.00 26.00
Civilians4.00 4.00 4.75 4.75 4.75
Building Inspection4.00 4.00 4.25 4.25 4.25
Total Public Safety30.00 30.00 34.00 35.00 35.00
Public Works
Streets5.85 5.85 6.35 6.85 7.35
Other1.15 1.15 1.15 1.15 1.15
Total Public Works7.00 7.00 7.50 8.00 8.50
Parks, Recreation and Forestry 9.15 9.15 9.05 9.55 9.80
Water 2.15 2.15 2.15 2.15 2.15
Sewer 2.15 2.15 2.15 2.15 2.15
Total 66.13 66.13 71.88 73.88 74.88
Source: City Finance Office
111
Table 14 (Continued)
20082009201020112012
5.00 5.00 4.00 3.50 3.50
0.63 0.63 0.63 - -
3.50 3.50 3.00 3.00 3.00
1.00 1.00 1.00 1.00 1.00
2.00 2.00 2.00 1.00 1.00
2.75 2.75 2.25 2.00 2.00
- - - - -
1.00 1.00 1.00 - -
1.40 1.40 1.40 0.70 0.70
17.28 17.28 15.28 11.20 11.20
27.00 27.00 27.00 25.00 25.00
4.75 4.75 4.25 4.00 3.00
4.25 4.25 2.75 2.50 2.50
36.00 36.00 34.00 31.50 30.50
7.35 7.35 6.85 7.00 7.00
1.15 1.15 1.15 1.00 1.00
8.50 8.50 8.00 8.00 8.00
9.80 9.80 9.30 9.00 9.00
2.15 2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15 2.15
75.88 75.88 70.88 64.00 63.00
112
CITY OF LINO LAKES, MINNESOTATable 15
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Years
Function/Program2003200420052006
General Government
Elections1 2 1 2
Registered voters9,911 11,718 11,035 11,618
N umber of votes cas t 4,650 10,147 5,288 8,284
Voter participation (registered)46.9%86.6%47.9%71.3%
Public Safety
Police:
Calls for Service6,785 6,797 6,973 6,990
Traffic Citations & Warnings2,624 3,319 6,609 5,964
Part I Crimes2,165 1,716 1,375 3,372
Part II Crimes5,074 3,497 3,119 4,890
Inspections:
Building Permits (1)826 835 837 686
Inspections N /A N /A N /A N /A
Value of Building Permits$55,864,076$61,579,910$53,686,592$42,078,007
Public Works
General Maintenance (hours)2,656 3,263 6,014 5,692
Street Maintenance (hours)4,082 3,533 3,106 3,631
Fleet Maintenance (hours)3,780 3,804 4,440 4,460
Snow Plowing/Sanding (hours)1,020 855 1,003 867
Culture and Recreation
Parks:
Park Maintenance (hours)N /A10,210 10,577 10,368
Utilities
Water Maintenance (hours)N /A4,349 3,904 4,387
Sanitary Sewer Maintenance (hours)N /A3,347 4,092 3,347
Source: Various City Departments
Notes:
Information not available is labeled N/A.
(1) 1,565, 4,337 and 581 repair permits issued in 2007 and 2009, respectively, due to storm damage.
Fiscal Year
113
Table 15 (Continued)
200720082009201020112012
1 2 1212
10,908 12,723 11,805 12,284 11,705 13,478
2,337 11,051 4,354 8,545 4,314 11,546
21.4%86.9%36.9%69.6%36.9%85.7%
7,053 6,871 6,353 6,398 6,384 6,344
3,805 3,252 3,187 2,743 2,604 2,694
1,279 1,461 1,075 982 1,117 N /A
3,432 3,767 3,151 2,911 2,911 N /A
2,297 5,041 1,535 509 452 459
N /A N /A N /A N /A N /A N /A
$30,539,559$15,852,7809,586,160 $ 11,295,493 $ 11,295,493 $ 10,751,626 $
6,758 6,129 5,870 4,945 7,416 6,939
2,916 3,851 3,267 3,099 4,352 5,926
4,144 5,043 4,782 4,850 4,214 3,945
1,425 1,353 950 1,638 1,534 594
10,939 11,136 12,406 9,257 9,813 9,739
4,256 5,716 5,041 3,560 3,568 3,585
4,148 3,760 3,486 3,531 3,557 3,517
Fiscal Year
114
CITY OF LINO LAKES, MINNESOTATable 16
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
Last Ten Years
Function/Program20032004200520062007
Public Safety
Police:
Stations11111
Patrol Units910111212
Fire (Joint Powers):
Stations in City 11111
Fire Trucks44455
Public Works
Lights489489559673673
Vehicles2829292929
City Streets (miles)93.894.395.59696.1
Culture and Recreation
Parks:
Parks1919181818
Park Acres142142141141141
Trails (miles)1818192026
Park Shelters45577
Basketball Courts66666
Fishing Pier11111
Skating Rinks44444
Soccer Fields88888
Baseball/Softball Fields1818182020
Tennis Courts22222
Playgrounds1717171616
Water
Distribution System (miles)46.248.250.851.164.7
Water Connections3,5483,7383,9574,0904,112
Gallons Pumped (millions)518474475565595
N umber of Fire Hydrants452490523538538
Water Tower Capacity (millions gallons)22222
Sanitary Sewer
Collection System (miles)59.261.463.563.364.5
Sewer Connections3,7633,9604,1424,2824,428
Storm Sewer
Pipe (miles)31.331.933.134.134.3
Source: Various City Departments
Fiscal Year
115
Table 16 (Continued)
20082009201020112012
11111
1212121212
11111
55555
673673673673673
2929292929
100.71100.71100.71100.71100.71
1818181818
141141141141141
2626262626
77766
66666
11111
44444
88888
2020202020
22222
1616161616
74.774.774.774.774.7
4,2474,3404,3824,4244424
590589498492609
538538538538538
22222
69.869.869.869.869.8
4,4474,4864,5304,5674567
41.441.441.441.441.4
Fiscal Year
An independent member of Nexia International
Honorable Mayor and Members of the City Council
City of Lino Lakes, Minnesota
We have audited the financial statements of the governmental activities, the business ‐type activities, each
major fund, and the aggregate remaining fund information of the City of Lino Lakes (the City) for the year ended
December 31, 2012, and have issued our report thereon dated May 22, 2013. We have previously
communicated to you information about our responsibilities under auditing standards generally accepted in the
United States of America and Government Auditing Standards , as well as certain information related to the
planned scope and timing of our audit. Professional standards also require that we communicate to you the
following information related to our audit.
Significant audit findings
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City are described in Note 1 to the financial statements.
For the year ended December 31, 2012, the financial statements include the impact of adoption of
Governmental Accounting Standards Board statement numbers 62 and 63.
GASBS 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre ‐November 30,
1989 FASB and AICPA Pronouncements , supersedes GASBS 20. GASBS 20 gave governments the choice
to elect to follow only GASB’s authoritative literature, or to follow FASB and AICPA pronouncements that
did not conflict with GASB pronouncements. Upon adoption of GASBS 62, all governmental accounting
guidance is codified into the GASB literature.
GASBS 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net
Position , provides guidance on deferred outflows and inflows of resources. It also renames the residual
amounts from “net assets” to “net position”. These financial statements include the statement of net
position, which reports all assets, deferred outflows of resources, liabilities, deferred inflows of
resources, and net position. Adoption of future GASB standards will include reporting of some items
previously reported as assets and liabilities as deferred outflows and inflows of resources.
We noted no transactions entered into by the City during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Honorable Mayor and Members of the City Council
City of Lino Lakes, Minnesota
Page 2
Qualitative aspects of accounting practices (Continued)
Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management’s knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimates affecting the financial statements were:
Management’s estimate of the useful lives of capital assets is based on authoritative guidance and past
experience. We evaluated the key factors and assumptions used to develop the useful lives of capital
assets in determining that it is reasonable in relation to the financial statements taken as a whole.
Management’s estimate of the allowance for doubtful accounts is based on collection history of
ambulance billings and an analysis of the collectability of individual accounts.
Management’s estimate of the amount of the year ‐end compensated absences payable to employees is
based on historical trends and anticipated leave time activity.
Management’s estimate of the investments at fair value is based on published market values at
December 31, 2012.
Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. There were no particularly sensitive financial statement disclosures.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those
that are clearly trivial, and communicate them to the appropriate level of management. Management did not
identify and we did not notify them of any uncorrected financial statement misstatements.
Disagreements with management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditors’ report. No such disagreements arose during our audit.
Management representations
We have requested certain representations from management that are included in the management
representation letter dated May 22, 2013.
Honorable Mayor and Members of the City Council
City of Lino Lakes, Minnesota
Page 3
Management consultations with other independent accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an
accounting principle to the City’s financial statements or a determination of the type of auditors’ opinion that
may be expressed on those statements, our professional standards require the consulting accountant to check
with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Significant issues discussed with management prior to engagement
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to engagement as the City’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
engagement.
Other audit findings or issues
We have provided a separate letter to you dated May 22, 2013, communicating internal control related matters
identified during the audit.
Audits of group financial statements
We noted no matters related to the group audit that we consider to be significant to the responsibilities of those
charged with governance of the group.
We have provided a separate letter to you dated May 22, 2013, communicating internal control related matters
relevant to the group audit and identified by us or by a component auditor during the audit.
Other information in documents containing audited financial statements
With respect to the required supplementary information (RSI) accompanying the financial statements, we made
certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been
measured and presented in accordance with prescribed guidelines, whether the methods of measurement and
preparation have been changed from the prior period and the reasons for any such changes, and whether there
were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We
compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial
statements, and other knowledge obtained during the audit of the basic financial statements. Because these
limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance
on the RSI.
With respect to the combining fund statements and other supplementary financial information (collectively, the
supplementary information) accompanying the financial statements, on which we were engaged to report in
relation to the financial statements as a whole, we made certain inquiries of management and evaluated the
form, content, and methods of preparing the information to determine that the information complies with
accounting principles generally accepted in the United States of America, the method of preparing it has not
changed from the prior period or the reasons for such changes, and the information is appropriate and complete
in relation to our audit of the financial statements. We compared and reconciled the supplementary information
to the underlying accounting records used to prepare the financial statements or to the financial statements
themselves. We have issued our report thereon dated May 22, 2013.
Honorable Mayor and Members of the City Council
City of Lino Lakes, Minnesota
Page 4
Other information in documents containing audited financial statements (Continued)
Other information is being included in documents containing the audited financial statements and the auditors’
report thereon. Our responsibility for such other information does not extend beyond the financial information
identified in our auditors’ report. We have no responsibility for determining whether such other information is
properly stated and do not have an obligation to perform any procedures to corroborate other information
contained in such documents. As required by professional standards, we read the Introductory Section and
Statistical Information (the other information) in order to identify material inconsistencies between the audited
financial statements and the other information. We did not identify any material inconsistencies between the
other information and the audited financial statements.
* * * * * *
This communication is intended solely for the information and use of the Mayor and City Council and
management of the City and is not intended to be and should not be used by anyone other than these specified
parties.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
May 22, 2013
An independent member of Nexia International
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Lino Lakes, Minnesota
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information
of the City of Lino Lakes, as of and for the year ended December 31, 2012, and the related notes to the
financial statements, which collectively comprise the City of Lino Lakes’ basic financial statements, and
have issued our report thereon dated May 22, 2013.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Lino Lakes'
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Lino
Lakes’ internal control. Accordingly, we do not express an opinion on the effectiveness of the City of
Lino Lakes’ internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Page 1
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Lino Lakes' financial statements
are free from material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards .
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the result of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
May 22, 2013
An independent member of Nexia International
INDEPENDENT AUDITORS’ REPORT ON MINNESOTA LEGAL COMPLIANCE
Honorable Mayor and
Members of the City Council
City of Lino Lakes
Lino Lakes, Minnesota
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standard applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, 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 December 31, 2012 and the related notes
to the financial statements, which collectively compri se the City’s basic financial statements as listed in
the table of contents and have issued our report thereon dated May 22, 2013.
The Minnesota Legal Compliance Audit Guide for Political Subdivisions covers seven categories of
compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public
indebtedness, claims and disbursements, miscell aneous provisions, and tax increment financing.
In connection with our audit, nothing came to our attention that caused us to believe that the City of
Lino Lakes, Minnesota failed to comply with the pr ovisions of the Minnesota Legal Compliance Audit
Guide for Political Subdivisions. However, our audit was not directed primarily toward obtaining
knowledge of such noncompliance. Accordingly, had we performed additional procedures, other
matters may have come to our attention regarding the City of Lino Lakes, Minnesota’s noncompliance
with the above-referenced provisions.
The purpose of this report is solely to describe the scope of our testing of compliance and the results of
that testing, and not to provide an opinion on compliance. Accordingly, this communication is not
suitable for any other purpose.
CliftonLarsonAllen LLP
Minneapolis, Minnesota
May 22, 2013
CITY COUNCIL
AGENDA ITEM 2 B
STAFF ORIGINATOR : Al Rolek
MEETING DATE : May 28, 2013
TOPIC : Consideration of Resolution 13 -68 Providing for the Issuance and
Sale of Approximately $615 ,000 Taxable General Obligation
Improvement Bonds, Series 201 3 A
V OTE REQUIRED : 3/5
INTRODUCTION
The City Council has awarded a bid to construct the Otter Lake Road Extension project. Th is
project require s debt financing to f inance the construction of the improvements.
BACKGROUND
On March 11 of this year the City Council awarded a bid to construct the extension of Otter Lake
Road north of CSAH 14. The owner of the property north of CSAH 14 had petitioned th e City for
the improvements to make it possible to develop his parcel. The cost of the project is to be as sessed
to the benefitting parcels. In order to finance the project the City will need to issue general
obligat ion bonds. Due to elements of the City Charter and federal regulations, the bonds will need
to be issued as taxable, rather than tax -exempt, ins truments.
Our financial advisor, Springsted, Inc. has issued their recommendation for the issuance of
$615 ,000 Taxable General Obligation Improvement Bonds Series 2013A for consideration by the
City Council. Resolution 13 -68 would provide for the issuanc e and sale of this issue. If approved ,
bids would be received on June 24, 2013 , with consideration for award of sale by the City Council
at its meeting the same day. The Series 20 1 3 A issue will be repaid over 10 years from proceeds of
special assessment s levied against benefitted parcels .
RECOMMENDATION
Staff recommendation is for the City Council to approve Resolution 13 -68 providing for the
issuance of $615 ,000 Taxable G eneral Obligation Improvement Bonds Series 201 3 A.
ATTACHMENTS
Springsted’s Reco mmendations for the Issuance of Bonds
Resolution 13 -68
City of Lino Lakes, Minnesota
Recommendations for Issuance of Bonds
$615,000 Taxable General Obligation Improvement Bonds, Series 2013A
The Council has under consideration the issuance of bonds to fund a street improvement project in the City. This
document provides information relative to the proposed issuance.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
May 28, 2013 Council sets sale date and terms
Week of June 17, 2013 Rating conference is conducted and receipt of rating
June 24, 2013, 10:00 a.m. Competitive proposals are received
June 24, 2013, 6:30 p.m. Counc il considers award of the Bonds
Mid July, 2013 Proceeds are received
RATING: An application will be made to Moody’s Investors Service for a rating on the Bonds. The
City’s general obligation debt is currently rated “Aa2” by Moody’s.
THE MARKET: Interest rates for the taxable municipal market are quoted as a spread to U.S. Treasury
Securities. To give you an indication of the relative position of that market, the chart below
tracks the yield of the 10-yea r and 30-year U.S. Treasury over the last five years.
St
u
d
y
N
o
.
:
0
0
0
5
0
2
.
_
_
_
Ma
y
2
3
,
2
0
1
3
Page 2
PURPOSE: Proceeds of the Bonds along with a small cash c ontribution from the City will be used to
finance public improvements related to the Otter Lake Road Extension.
The Bonds are being issued as taxable Bonds . In the opinion of bond counsel, the City
charter provision applicable to the area being assessed does not meet requirements of
federal tax law. Federal regulations permit cities to issue tax exempt bonds secured by
special assessments only if the assessment procedures meet certain criteria. One of those
criteria is that owners of business and non-business property must be required to pay
assessments on an equal basis. The City charter provision that applies in this area permits
owners of certain residential property to “opt out” of being assessed, which does not meet
the “equal basis” requirement. Even though there are no residential properties being
assessed for the specific improvements financed by the Bonds, the assessment procedure
in this area remains questionable without a ruling on this point from the Internal Revenue
Service. In addition, the City has entered into certain agreements with owners of
assessed commercial property, which agreements are permissible under State law but do
not comply with the equal basis requirement under federal tax law.
AUTHORITY: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 429 and
the City’s home rule charter (the “City Charter”).
SECURITY AND
SOURCE OF
PAYMENT:
The Bonds are a general obligation of the City, secured by its full faith and credit and
taxing power. In addition, the City will pledge special assessments against benefited
properties.
Assessments in the principal amount of $532,400 will be filed in the fall of 2013 and
collected over a term of 10 years with level payments of principal and interest. Interest on
the unpaid balance will be charged at a rate of 2.0% over the true interest cost of the
Bonds. For structuring purposes we have assumed a rate of 4.35%.
The City will use funds on hand to make the first interest payment due on
February 1, 2014. Beginning with the August 1, 2014 interest payment, each year’s
collection of assessments will be used to make the interest payment due on August 1 in
the collection year and the principal and interest payment due February 1 in the following
year. Since assessment income is not expected to be sufficient to pay 105% of the debt
service on the Bonds, the annual shortfall not covered by assessments will be paid from
state aid money. The bond resolution will include a tax levy requirement for the Bonds,
however, the City plans on canceling the levy each year and using state aid money to pay
the shortfall.
STRUCTURING
SUMMARY:
Per direction from the City, the Bonds have been structured around the projected
assessment income with a term of 10 years to result in an approximately level annual
shortfall to be paid from state aid money.
SCHEDULES
ATTACHED:
Schedules attached for the Bonds include the sources and uses and debt service
requirements, given the current interest rate environment.
SALE TERMS AND
MARKETING:
Variability of Issue Size : A specific provision in the sale terms permits modifications to the
issue size and/or maturity structure to customize the issue once the price and interest rates
are set on the day of sale.
Prepayment Provisions: Based on the short duration of the Bonds, and to avoid possible
negative pricing impacts, the Bonds will not be subject to redemption prior to their stated
maturities.
Page 3
POST ISSUANCE
COMPLIANCE:
The issuance of the Bonds will result in post-issuance compliance responsibilities with
secondary disclosure requirements. Secondary disclosure requirements result from an
SEC requirement that underwriters provide ongoing disclosure information to investors.
For issues less than $1 million, the City may agree to “limited” disclosure whereby the City
provides certain limited credit related information to investors upon request.
SUPPLEMENTAL
INFORMATION AND
BOND RECORD:
Supplementary information will be available to staff including detailed terms and conditions
of sale, comprehensive structuring schedules and information to assist in meeting post-
issuance compliance responsibilities.
Upon completion of the financing, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
Page 4
$615,000
City of Lino Lakes, Minnesota
Taxable General Obligation Improvement Bonds, Series 2013A
Sources & Uses
Dated 07/15/2013 | Delivered 07/15/2013
Sources Of Funds
Par Amount of Bonds..................................................................................................................................................$615,000.00
Cash Contribution - Trunk Utility..................................................................................................................................26,750.00
Total Sources...........................................................................................................................................................$641,750.00
Uses Of Funds
Deposit to Project Construction Fund..........................................................................................................................605,804.00
Costs of Issuance.......................................................................................................................................................28,225.00
Total Underwriter's Discount (1.200%).....................................................................................................................7,380.00
Rounding Amount........................................................................................................................................................341.00
Total Uses.................................................................................................................................................................$641,750.00
2013 TXBL GO Imp Bonds | SINGLE PURPOSE | 5/22/2013 | 9:59 AM
Page 5
$615,000
City of Lino Lakes, Minnesota
Taxable General Obligation Improvement Bonds, Series 2013A
NET DEBT SERVICE SCHEDULE
DatePrincipalCouponInterestTotal P+I 105% of
Total
AssessmentState Aid
02/01/2014--6,051.506,05 1.506,354.08-6,354.08
02/01/201560,000.000.700%11,115.0071,115.0074,670.7567,484.817,185.94
02/01/201660,000.000.800%10,695.0070,695.0074,229.7567,484.816,744.94
02/01/201760,000.001.100%10,215.0070,215.0073,725.7567,484.806,240.95
02/01/201860,000.001.350%9,555.0069,555.0073,032.7567,484.805,547.95
02/01/201960,000.001.650%8,745.0068,745.0072,182.2567,484.824,697.43
02/01/202060,000.001.900%7,755.0067,755.0071,142.7567,484.823,657.93
02/01/202160,000.002.250%6,615.0066,615.0069,945.7567,484.802,460.95
02/01/202265,000.002.500%5,265.0070,265.0073,778.2567,484.826,293.43
02/01/202365,000.002.700%3,640.0068,640.0072,072.0067,484.814,587.19
02/01/202465,000.002.900%1,885.0066,885.0070,229.2567,484.822,744.43
Total$615,000.00-$81,536.50$696,5 36.50$731,363.33$674,848.11$56,515.22
Dated...................................................................................................................................................................................7/15/2013
Delivery Date.......................................................................................................................................................................7/15/2013
First Coupon Date................................................................................................................................................................2/01/2014
Yield Statistics
Bond Year Dollars...............................................................................................................................................................$3,769.83
Average Life.......................................................................................................................................................................6.130 Years
Average Coupon.................................................................................................................................................................2.1628675%
Net Interest Cost (NIC).........................................................................................................................................................2.3586321%
True Interest Cost (TIC).......................................................................................................................................................2.3583213%
Bond Yield for Arbitrage Purposes.....................................................................................................................................2.1454137%
All Inclusive Cost (AIC)........................................................................................................................................................3.2059357%
IRS Form 8038
Net Interest Cost..................................................................................................................................................................2.1628675%
Weighted Average Maturity.................................................................................................................................................6.130 Years
2013 TXBL GO Imp Bonds | SINGLE PURPOSE | 5/22/2013 | 9:59 AM
Page 6
$532,400
City of Lino Lakes, Minnesota
Taxable General Obligation Improvement Bonds, Series 2013A
Assessments
ASSESSMENT INCOME
DatePrincipalCouponInterestTotal P+I
12/31/2013----
12/31/201438,535.564.350%28,949.2567,484.81
12/31/201546,001.714.350%21,483.1067,484.81
12/31/201648,002.784.350%19,482.0267,484.80
12/31/201750,090.904.350%17,393.9067,484.80
12/31/201852,269.864.350%15,214.9667,484.82
12/31/201954,543.604.350%12,941.2267,484.82
12/31/202056,916.244.350%10,568.5667,484.80
12/31/202159,392.104.350%8,092.7267,484.82
12/31/202261,975.654.350%5,509.1667,484.81
12/31/202364,671.604.350%2,813.2267,484.82
Total$532,400.00-$142,448.11$674,848.11
SIGNIFICANT DATES
Filing Date....................................................................................................................................................................10/01/2013
First Payment Date.......................................................................................................................................................12/31/2014
2013A Assessments | SINGLE PURPOSE | 5/22/2013 | 9:59 AM
RESOLUTION NO. 13 -68
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF TAXABLE GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2013A, IN THE APPROXIMATE PRINCIPAL
AMOUNT OF $615 ,000
BE IT RESOLVED By the City Council of the City of Lino Lakes , Anoka Count y, Minnesota
(the “City ”) as follows:
1 . Authorization . It is hereby determined that:
(a) Certain assessable public improvements , including the Otter Lake Road
Extension in the City (the “Improvements”), have been duly ordered pursuant to the provisio ns of
the home rule charter of the City (the “City Charter”) and Minnesota Statutes, Chapters 429 and
475, as amended (collectively, the “Act”).
(b) The Improvements are located within Area No. 2 (Main Street), as defined in
Section 8.07, subdivision 2 o f the City Charter; therefore, the financing of these Improvements is
primarily governed by the Act rather than the special provisions under Chapter VIII of the City
Charter.
(c ) I t is necessary and expedient to the sound financial management of the affa irs of
the City to issue its Taxable General Obligation Improvement Bonds, Series 201 3 A
(the “Bonds”), in the approximate aggregate principal amount of $615,000 pursuant to the City
Charter and the Act to provide financing for the Improvements.
(d ) The Ci ty is authorized by Section 475.60, s ubdivision 2(6 ) of the Act to negotiate
the sale of the Bond s, it being determined that , on the advice of Kennedy & Graven, Chartered, as
bond counsel, interest on the Bonds cannot be represented to be excluded from gro ss income for
purposes of federal income taxation.
2 . Sale of Bonds . To provide financing for the Improvements , the City w ill therefore issue
and sell the Bonds in the amount of $607,620 . To provide in part the additional interest required to
market the Bonds at this time, additional Bonds will be issued in the amount of $7,380 . The excess of the
purchase price of the Bonds over the sum of $607,620 will be credited to the debt service fund for the
Bonds for the purpose of paying interest first coming due on the additional Bonds. The amounts cited
above are subject to adjustment in accordance with the official Terms of Proposal (the “Terms of
Proposal”). The Bond s will be issued, sold and delivered in accordance with the Terms of Proposal
attached he reto as EXHIBIT A.
3 . Authority of Financial Advisor . Springsted Incorporated is authorized and directed to
negotiate the Bonds on behalf of the City in accordance with the Terms of Proposal. The City Council
will meet at 6:30 P .M . on Monday, June 24 , 2013 , to consider proposals on the Bonds and take any other
appropriate action with respect to the Bond s.
4 . Authority of Bond Counsel . The law firm of Kennedy & Graven, Chartered, as bond
counsel for the City, is authorized to act as bond counsel and t o assist in the preparation and review of
necessary documents, certificates and instruments relating to the Bonds. The officers, employees and
2
424543v1 SJB LN140 -110
agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such
docume nts, certificates, and instruments.
5 . Official Statement . In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with Springsted Incorporated and participate in the
preparation of an off icial statement for the Bonds and to execute and deliver it on behalf of the City upon
its completion.
(The remainder of this pag e is intentionally left blank.)
3
424543v1 SJB LN140 -110
The motion for the adoption of the foregoing resolution was duly seconded by Councilmemb er
_____________, and upon vote being taken thereon the following members voted in favor of the motion:
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
A -1
424543v1 SJB LN140 -110
EXHIBIT A
TERMS OF PROPOSAL
A -2
424543v1 SJB LN140 -110
THE CITY HA S AUTHORIZED SPRINGS TED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RE CEIVED ON THE FOLLOW ING BASIS:
TERMS OF PROPOSAL
$615,000 * CITY OF LINO LAKES, MINNESOTA TAXABLE GENERAL OBLI GATION IMPROVEMENT B ONDS, SERIES 2013A
(B OOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit (“Deposit”) will be received on Monday,
June 24, 2013, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 6:30 P.M.,
Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability o f the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Pro posal is submitted. (a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223 -3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shal l be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal. OR (b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY ®. For purposes of the electronic bidding process, the time as maintained by PARITY ®
shall constitute the official time with respect to all Bids submitted to PARITY ®. Each bidder shall
be solely responsible for making necessary arrangements to access PARITY ® for purposes of
submitting its electronic Bid in a timely manner and in compliance with the requirements of the
Terms of Proposal . Neither the City, its agents nor PARITY ® shall have any duty or obligation to
undertake regi stration to bid for any prospective bidder or to provide or ensure electronic access
to any qualified prospective bidder, and neither the City, its agents nor PARITY ® shall be
responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or
have any liability for any delays or interruptions of or any damages caused by the services of
PARITY ®. The City is using the services of PARITY ® solely as a communication mechanism to
conduct the electronic bidding for the Bonds, and PARITY ® is not an agent of the City. If any provisions of this Terms of Proposal conflict with information provided by PARITY ®, this
Terms of Proposal shall control. Further information about PARITY ®, including any fee charged,
may be obtained from:
* Preliminary; subject to change.
A -3
424543v1 SJB LN140 -110
PARITY ®, 1359 Broadway, 2 nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
DETAILS OF THE BONDS
The Bonds will be dated July 15, 2013, as the date of original issue, and will bear interest
payable on February 1 and August 1 of eac h year, commencing February 1, 2014. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months.
The Bonds will mature February 1 in the years and amounts * as follows:
2015 $60,000
2016 $60,000
2017 $60,000
2018 $60,000
20 19 $60,000
2020 $60,000
2021 $60,000
2022 $65,000
2023 $65,000
2024 $65,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity in mul tiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread is the differential between the pri ce paid to the City for the new issue and the prices at which the securities are initially offered to the investing public. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at
a price of par plus accrued interest to the date of redemption scheduled to conform to the
maturity schedule set forth above. In order to designate term bonds, the proposal must specify
“Years of T erm Maturities” in the spaces provided on the Proposal form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the regist rar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject t o applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
424543v1 SJB LN140 -110 A -4
SECURITY AND PURPOSE
The Bonds will be general obli gations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition, the City will pledge special
assessments against benefited properties. The proceeds will be used to finance v arious
improvements within the City.
TAXABILITY OF INTEREST
The interest to be paid on the Bonds is includable in gross income of the recipient for United
States and State of Minnesota income tax purposes, and is subject to Minnesota Corporate and
bank excise taxes measured by net income.
BIDDING PARAMETERS
Proposals shall be for not less than $607,620 plus accrued interest, if any, on the total principal
amount of the Bonds. No proposal can be withdrawn or amended after the time set for
receiving proposals unless the meeting of the City scheduled for award of the Bonds is
adjourned, recessed, or continued to another date without award of the Bonds having been
made. Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public
for each maturity must be 98.0% or greater. Bonds of the same maturity shall bear a single rate
from the date of the Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of metho d of submission, shall be accompanied by a Deposit in the
amount of $6,150, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit. Any Depo sit made by certified or cashier’s check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City’s
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
for credit to Springsted Incorporated, Account #635 -5007954
Ref: Lino Lakes, MN Series 2013A Good Faith Deposit Contemporaneously with such wire transfer, the bidder shall send an e -mail to
bond_services@springsted.com , including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
an d (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
424543v1 SJB LN140 -110 A -5
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre -approved by the City. Such bond must be
submitted to Springsted I ncorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that und erwriter is required to submit its Deposit to the City in the form of a certified or cashier’s
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time on the next business day following the award. If such Dep osit is not received by that time,
the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no int erest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
in terest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City.
The City's computation of the interest rate of each proposal, in accordance with customary
practice, will be controlling.
The City will reserve the right to: (i ) waive non -substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
t he terms herein.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis,
Minnesota, and of customary closing papers, including a no -litigation certificate. On the date of
settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be
received at the offices of the City or its designee not later than 12:00 Noon, Central Time.
Unless compl iance with the terms of payment for the Bonds has been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by
the City by reason of the purchaser's non -compliance with said terms for payment .
CONTINUING DISCLOSURE
Participating underwriters need not comply with the continuing disclosure requirements of
Rule 15c2 -12 promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934 (the "Rule"), because the offer ing is in a principal amount less than
$1,000,000. The City will enter into a Continuing Disclosure Certificate pursuant to which it will
covenant to provide certain financial information or operating data that is customarily prepared
and is publicly avai lable and notices of certain material events to the limited extent required by
424543v1 SJB LN140 -110 A -6
SEC Rule 15c2 -12(d)(2). The Continuing Disclosure Certificate will be set forth in the Official
Statement.
OFFICIAL STATEMENT
The City has authorized the preparation of an Of ficial Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of
the Official S tatement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000.
The Offici al Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a “Final Official Statement” of the Ci ty with respect
to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded up to 25 copies
of the Official Statement and the addendum or addenda described above. The City designates
the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby
that if its pro posal is accepted by the City (i) it shall accept such designation and (ii) it shall enter
into a contractual relationship with all Participating Underwriters of the Bonds for purposes of
assuring the receipt by each such Participating Underwriter of the F inal Official Statement.
Dated May 28, 2013 BY ORDER OF THE CITY COUNCIL
/s/ Julie Bartell
City Clerk
424543v1 SJB LN140 -110
STATE OF MINNESOTA )
)
COUNTY OF ANOKA )
)
CITY OF LINO LAKES )
I, the undersigned, being the duly qualified and acting City Clerk of the Cit y of Lino Lakes ,
Minnesota (the “City”), hereby certify that I have carefully compared the attached and foregoing extract
of minutes of a regular meeting of the City Council of the City held on Tuesday, May 28 , 2013 , with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar
as they relate to the issuance and sale of the City’s Taxable General Obligation Improvement Bonds,
Series 2013A, in the approximate aggregate principal amount of $615 ,000 .
W ITNESS My hand as City Clerk and the corporate seal of the City this ____ day of
________________, 20 13 .
______________________________________
City Clerk
City of Lino Lakes , Minnesota
(SEAL)
CITY COUNCIL
AGENDA ITEM 6 A
STAFF ORIG INATOR: Katie Larsen, City Planner
MEETING DATE: May 28 , 2013
TOPIC: Consider Resolution No. 13 -58 Approving Development
Agreement, Preserve at Lino Lakes
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is reque sting City Council c onsideration of the Development Agreement for Preserve at
Lino Lakes.
BACKGROUND
The City Council approved the PUD Final Plan/Final Plat for Preserve at Lino Lakes on May 13,
2013 with Resolution No. 13 -57 subject to the condition a D evelopment Agreement is executed
by and between the developer and City. The City Engineer has prepared the Development
Agreement which provides for the submittal of fees and securities to cover City review costs and
ensure completion of the public and pri vate improvements in accor dance with the approved
plans. The City Attorney has reviewed the Title Commitment.
RECOMMENDATION
Staff is recommending approval of Resolution No. 13 -58 .
ATTACHMENTS
1. Resolution No. 13 -58
2. Development Agreement
CITY OF LINO LAKES
RESOLUTION NO. 13 -58
RESOLUTION APPROVING DEVELOPMENT AGREEMENT
FOR PRESERVE AT LINO LAKES
WHEREAS, the City Council approved the PUD Final Plan /Final Plat for Preserve at Lino
Lakes on May 13 , 2013 , and
WHEREAS, the City’s subdivis ion ordinance and conditions of approval require the execut ion
of a development agreement, between the Developer and the City of Lino Lakes.
NOW, THEREFORE BE IT RESOLVED that The City Council of The City of Lino Lakes
hereby approves the Development Cont ract between Schwieters Investments of Lino Lakes, LLC
and the City of Lino Lakes for Preserve at Lino Lakes and authorizes the Mayor and City Clerk
to execute such agreement on behalf of the City.
Adopted by the Lino Lakes City Council this _____ day o f ________________, 2013.
The motion for the adoption of the foregoing resolution was duly seconded by Council Member
_________________and upon vote being taken thereon, the following voted in favor thereof:
The following voted against same :
___________________________
Jeff Reinert, Mayor
ATTEST:
____________________________
Julianne Bartell, City Clerk
DEVELOPMENT CONTRACT
Preserve at Lino Lakes
THIS AGREEMENT made this _____ day of May, 2013, is by and between the
City of Lino Lakes, whose address is 600 Town Cente r Parkway, Lino Lakes, Minnesota, 55014, a
municipal corporation organized under the laws of t he State of Minnesota, hereinafter referred to as
the "City", and Schwieters Investments of Lino Lake s, LLC whose address is 13925 Fenway
Boulevard North, Hugo, MN 55038 hereinafter referre d to as the "Developer".
WHEREAS, the Developer has received preliminary pla t approval from the City
Council for a plat of land within the corporate lim its of the City known as Preserve at Lino Lakes
hereinafter called “Subdivision”, said land is lega lly described to-wit
The Southwest Quarter of the Southeast Quarter of S ection 28, Township 31 , Range 22, Anoka
County, Minnesota, except GEMINI ESTATES and TRAPPE RS CROSSING according to the
recorded plats thereof, Anoka County, Minnesota; al so except that part of said quarter-quarter
described as follows: Commencing at the northwest corner of said quarter-quarter; thence South
89 degrees 29 minutes 30 seconds East along the nor th line thereof 360 feet to the point of
beginning; thence continuing South 89 degrees 29 mi nutes 30 seconds East along said north line
388.48 feet; thence South 22 degrees 30 minutes Wes t 345 feet; thence South 21 degrees 12
minutes East 166.94 feet; thence North 89 degrees 2 9 minutes 30 seconds West 320 feet; thence
North 0 degrees 22 minutes 58 seconds East 475 feet to the point of beginning; and also except
that part of said quarter-quarter described as foll ows: Beginning at the northeast corner of said
quarter-quarter; thence South 0 degrees 33 minutes 07 seconds West along the east line thereof
170.04 feet to Point “A”; thence North 89 degrees 2 9 minutes 30 seconds West 418.54 feet;
thence North 22 degrees 30 minutes East 183.38 feet to the north line of said quarter-quarter;
thence South 89 degrees 29 minutes 30 seconds East along said north line 350 feet to the point of
beginning; and also except that part of said quarte r-quarter described as follows: Beginning at
said Point “A”; thence North 89 degrees 29 minutes 30 seconds West 272.96 feet; thence South
22 degrees 30 minutes West 223.24 feet; thence Sout h 89 degrees 29 minutes 30 seconds East
parallel with the north line of said quarter-quarte r 356.42 feet, more or less, to the east line of
Preserve at Lino Lakes
Development Contract
May, 2013
page 2
said quarter-quarter; thence North 0 degrees 33 min utes 07 seconds East along said east line 207
feet, more or less, to the point of beginning.
AND
That part of the Northwest Quarter of the Northeast Quarter of Section 33, Township 31, Range
22, Anoka County, Minnesota, lying northwest of the west right-of-way line of Holly Drive.
WHEREAS, the Developer requested that the City co nstruct and finance certain
improvements to service the plat; and
WHEREAS, the Developer is to be responsible for the installation and financing of
certain private improvements within the plat; and
WHEREAS, Minnesota Statute 429 provides a method fo r assessing the cost of City
installed improvements to the benefited property.
WHEREAS, the City Subdivision Ordinance and Minne sota Statute 462.358
authorize the City to enter into a performance cont ract secured by cash escrow or other security to
guarantee completion and payment of such improvemen ts following final approval and recording of
final plat; and
NOW, THEREFORE, in consideration of the mutual prom ises of the parties made
herein,
IT IS AGREED BY AND BETWEEN THE PARTIES HERETO: tha t the
I. DEVELOPER IMPROVEMENTS
A. Improvements to be installed by the Developer an d financed by the Developer are
hereinafter referred to as “Developer Improvements”.
B. Improvements to be installed by the City and fin anced by the Developer are
hereinafter referred to as “City Improvements”.
II. DEVELOPER’S PLANS
A. The subject property shall be developed in acco rdance with the following Developer
Plans, original copies of which are on file with th e City Engineer. The Developer
Plans may be prepared after entering this Agreement but must be completed and
approved by the City before commencement of any wor k on the Subject Property. If
the plans vary from the written terms of this Agree ment, the written terms shall
control. The Developer Plans are:
Preserve at Lino Lakes
Development Contract
May, 2013
page 3
Plan C1.01 – Plat
Plan C2.01 – Grading Plan
Plan C3.01 – Erosion Control Plan
Plan C4.01 - Sediment Control Plan
Plan C4.02 – Utility Plan
Plan C4.03 – Tree and Ground Cover Plan
Plan C5.01 – Shrub Plan
Plan C5.02 – Tree Preservation Plan
Plan C5.03 – Lighting Plan
Plan C6.01 – Street Plan & Profile
Plan C6.02 – Street Plan & Profile
Plan C6.03 – Street Plan & Profile
Plan C7.01 – Sanitary Sewer & Watermain Plan & P rofile
Plan C7.02 – Sanitary Sewer & Watermain Plan & P rofile
Plan C7.03 – Sanitary Sewer & Watermain Plan & P rofile
Plan C8.01 – Storm Sewer Plan & Profile
Plan C8.02 – Storm Sewer Plan & Profile
Plan C9.01 – Construction Details
Plan C9.02 – Construction Details
Plan L1.01 – Landscape Plan
B. The Developer Plans shall be approved by the Cit y of Lino Lakes. The Developer
shall secure C.W. Houle, Inc. to install these impr ovements. All Developer
Improvements shall require City inspection and appr oval and, where appropriate,
and the approval of any other governmental agency h aving jurisdiction. The
Developer shall construct and install at the Develo per's expense, the following
improvements according to the following terms and c onditions:
1. Grading Plan
a) A final site grading plan, including certified w etland delineations,
with maximum two-foot contours and cross sections a s necessary
shall be submitted and approved by the City prior t o
commencement of any site grading. The final site g rading plan
shall also be subject to the approval of any other governmental
agency having jurisdiction, including but not limit ed to the Rice
Creek Watershed District (RCWD). No grading shall commence
until all requirements of the RCWD have been satisf ied. No
building permits shall be issued until all site gra ding has been
completed to the satisfaction of the City.
b) The grading plan and all site grading shall be p rovided and
conducted in accordance with the plan as approved b y the City,
NPDES requirements and the RCWD. The Developer sha ll
perform the work in accordance with a Storm Water P ollution
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Prevention Plan (SWPPP) in accordance with Minnesot a Pollution
Control Agency (MPCA) requirements.
c) The Developer shall be responsible for securing all required site
grading and development approvals and permits from all Federal,
State, Regional and Local agencies with jurisdictio n or as
applicable prior to the commencement of site gradin g or
construction.
2. Erosion Control Plan
a) The Developer shall submit an erosion control pl an, detailing all
erosion control measures to be implemented during c onstruction.
Said plan shall be approved by the City prior to th e commencement
of site grading or construction.
b) The Developer shall submit a turf establishment plan which details
topsoil placement, seeding, sodding, mulching, fert ilizing and
watering. Said plan shall be approved by the City prior to the
commencement of site grading or construction.
3. Grading and Erosion Control Construction & Maint enance
a) Prior to the commencement of site grading and er osion control, the
Developer shall complete items II.B.1 and II.B.2 as listed above.
b) The Developer shall grade the site to within 0.2 foot of the grades
shown on the approved grading plan. No deviations w ill be allowed
unless a revised plan is submitted and approved by the City and all
other regulatory agencies.
c) All improvements shall conform to the natural li mitations presented
by the topography and soil of the subdivision in or der to create the
best potential for preventing soil erosion.
d) Erosion and siltation control measures shall be coordinated with the
different stages of development. The Developer sha ll attain an
NPDES Stormwater Permit prior to engaging in any si te grading
activities. All terms and conditions of the NPDES permit must be
adhered to by the Developer throughout construction the duration of
construction of the Subdivision from start to finis h.
e) Where the topsoil is removed, sufficient arable soil shall be set aside
for respreading over the developed area. The topso il shall be
restored to a depth of at least four (4) inches and shall be of a quality
at least equal to the soil quality prior to develop ment. The Developer
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page 5
shall make all necessary adjustments to the curb st ops to bring them
flush with the topsoil prior to occupancy.
f) The Developer shall install four (4) inches of t opsoil on all
boulevards and seed or sod as approved by the City.
g) All disturbed areas shall be sodded or seeded, a s designated per the
approved Developer Plans, immediately upon completi on of grading.
h) The street right-of-way, storm water storage pon ds, and surface
water drainage ways shall be graded prior to commen cement of
utility construction.
i) Drainage swales, ditches, storm water storage po nds and other high
risk erosion areas shall be protected from erosion.
j) All grading must be completed prior to issuance of building permits.
k) All streets shall be protected from erosion depo sits. This should
include a combination of roadside silt fences, road side sod strips,
catch basin rock bale inlet protection, rock constr uction entrances,
straw mulch, and/or street sweeping.
l) The Developer’s engineer shall certify, in writi ng with an as-built
survey, that all grading complies with the approved grading plan
prior to issuance of any building permits.
m) The Developer shall be responsible for ascertain ing that site
geotechnical and groundwater conditions are adequat e and
conforming with the grading and site improvement as proposed.
n) The Developer shall provide financial security a nd/or cash escrow to
assure completion of the grading and restoration, i n the event that the
work is not completed by the Developer.
4. Final street grading, subbase, gravel base, conc rete curb and gutter, and
bituminous base course and wear course.
5. All homeowners association declaration, covenant s, and property and legal
requirements as required in the Agreement shall be submitted to the City
Attorney for review as required by the City’s final plat requirements.
6. Storm sewers when determined to be necessary by the City Engineer,
including all necessary laterals, catch basins, inl ets and other appurtenances
shall be furnished and installed.
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7. Sanitary sewer mains, laterals or extensions, in cluding all necessary building
services and other appurtenances shall be furnished and installed.
8. Water mains, laterals or extensions, including a ll necessary building
services, hydrants, valves and other appurtenances shall be furnished and
installed.
9. The Developer shall place iron monuments at all lot and block corners and at
all other angle points on boundary lines. Iron mon uments shall be placed
after all street and lawn grading has been complete d in order to preserve the
lot markers for future property owners. Lot corner irons on the back
property line shall be installed so that the top of the iron corresponds to the
finished ground elevation in accordance with the ap proved grading plan –
guard stakes shall be appropriately installed to ma rk these irons.
10. The Developer shall promptly clear dirt and deb ris, within public right-of-
ways, and drainage and utility easements, resulting from construction by
the Developer, its purchasers, builders and contrac tors within five (5) days
after notification by the City. The Developer or i ts assigns shall be
responsible for all necessary street and storm sewe r maintenance including
street sweeping, and storm sewer resulting from the accumulation of said
dirt and debris, prior to issuance of any Certifica tes of Occupancy.
Warning signs shall be placed when hazards develop in streets to prevent the
public from traveling on same and directing attenti on to detours. If and
when the streets become impassable, such streets sh all be barricaded and
closed. The Developer shall maintain a smooth, har d driving surface and
adequate drainage on all temporary streets.
11. Street Lighting:
a) Residential street lighting shall be owned by t he City. Such street
lighting system shall be installed, operated, and m aintained by the
electric company. City and electric utility compan y may enter into a
contractual agreement on the rate and maintenance o f the street
lighting system. City shall use escrow funds to pa y for street light
installation.
b) It shall be the responsibility of the Developer to pay for street
lighting operation charges for the initial 15 month s of operation of
the system.
12. The Developer shall dedicate to the City, prior to approval of the final plat,
at no cost to the City, any permanent or temporary easements that may be
necessary for the construction and installation of the Developer
Improvements. All such easements required by the Ci ty shall be in writing,
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page 7
in recordable form, containing such terms and condi tions as the City shall
determine.
13. The Developer shall be responsible for securing all site grading and
development approvals and permits from all appropri ate Federal, State,
Regional and Local jurisdictions prior to the comme ncement of site grading
or construction and prior to the City awarding cons truction contracts for
public utilities.
14. The Developer shall make provision that all gas , telephone, cable TV and
electric utility designs be submitted to the City f or review and approval prior
to construction of the improvements. Following rev iew and approval by the
City, the Developer shall insure that all installat ions comply with applicable
City, County and State design standards and show pr oof of security
arrangements with said utility companies.
15. Cost of Developer Improvements and descri ption are as shown on
Attachment A.
16. Construction of Developer’s Improvements:
a) The construction, installation, materials and eq uipment shall be in
accordance with the Developer Plans and specificati ons approved by
the City.
b) All of the work shall be under and subject to th e inspection and
approval of the City and, where appropriate, any ot her governmental
agency having jurisdiction.
c) Prior to the acceptance of Developer Improvement s by the City, the
Developer shall obtain final plat approval and reco rd the final plat
which will dedicate all permanent easements necessa ry for the
construction and installation of the Developer and City
Improvements as determined by the City.
d) All construction debris and trash shall be properly disposed of at the
Developer expense and in a timely manner as determi ned by the
City.
17. The Developer shall construct and pay for all improvements as described in
the landscaping plan.
18. Record Drawings
a) Upon completion of construction of streets, s anitary sewer,
watermain, storm sewer, facilities, and grading, th e developer shall
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page 8
submit two (2) sets of record Developer Plans, two (2) electronic
copies of record Developer Plans in Anoka County NA D 83
Coordinates compatible with the City’s computer sys tem, including
accurate locations, dimensions, elevations, grades, slopes and all
other pertinent information concerning the compete work.
b) A storm sewer, watermain, and sanitary sewer Excel Spreadsheet
must be submitted, which includes all the as-built data.
15. Faithful Performance of Construction Contract s and Letter of Credit
a) The Developer will fully and faithfully comply w ith all terms and
conditions of any and all contracts entered into by the Developer for
the installation and construction of all Developer Improvements and
hereby guarantees the workmanship and materials for a period of one
year following the City's final acceptance of the D eveloper's
Improvements. Concurrently with the execution here of by the
Developer, the Developer will furnish to, and at al l times thereafter
maintain with the City, a cash deposit, certified c heck, or Irrevocable
Letter of Credit, based on one hundred fifty (150%) percent of the
total estimated cost of Developer's Public Improvem ents. The bank
and form of the Letter of Credit or security shall be subject to the
approval of the City. An Irrevocable Letter of Cre dit shall be for the
exclusive use and benefit of the City of Lino Lakes and shall state
thereon that the same is issued to guarantee and as sure performance
by the Developer of all the terms and conditions of this Development
Contract and construction of all required improveme nts in
accordance with the ordinances and specifications o f the City. The
City reserves the right to draw, in whole or in par t, on any portion of
the Irrevocable Letter of Credit for the purpose of guaranteeing the
terms and conditions of this contract. The Irrevoc able Letter of
Credit shall be automatically extended for addition al periods of one
year from present or future expiration dates.
b) Reduction of Escrow Guarantee.
(1) The Developer may request reduction of the Lett er of Credit,
or cash deposit based on prepayment or the value of the
completed improvements at the time of the requested
reduction. Prior to the final acceptance of the Dev eloper
Improvements the City shall require a Performance B ond or
Cash Escrow to cover the one -year warranty provisi ons of
the agreement. The amount shall be determined by th e City
Engineer.
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III. CITY IMPROVEMENTS
A. The City shall install the following described i mprovements to serve the
Subdivision on the terms and conditions herein set forth:
1. Storm sewer trunks.
2. Sanitary sewer trunks.
3. Water trunks.
B. Construction Procedures
1. All City improvements above shall be instituted, constructed and financed as
follows: The City shall commence proceedings pursu ant to Minnesota
Statute 429 and City Charter providing that such im provements be made and
assessed against the benefited properties. After p reparation of preliminary
Developer Plans and estimates by the City Engineer, an improvement
hearing, if required by law, will be called by the City Council for the
purpose of ordering such City Improvements. After preparation of the final
Developer Plans and specifications by the City Engi neer, bids will be taken
by the City and contract awarded for the installati on of City Improvements
under the City's complete supervision.
C. Security, Levy of Special Assessments and Requir ed Payment Therefore.
1. Prior to the preparation of final Developer Plan s and specifications for the
construction of said City Improvements, the Develop er shall provide to the
City a cash escrow or letter of credit in an amount equal to thirty-five (35%)
percent of the total estimated assessments as estab lished by the City
Engineer. (See Attachment B)
2. Said letter of credit or cash escrow including a ccrued interest thereon, may
be used by the City upon default by Developer in th e payment of special
assessments pursuant hereto, whether accelerated or otherwise. That such
cash escrow or letter of credit shall remain in ful l force and effect throughout
the term of the special assessments, except, the am ount of such escrow or
letter of credit may be reduced, upon the request o f the Developer, at the
City's option, but in no event shall be less than 3 5% of the outstanding
special assessments against all properties within t he Subdivision. The entire
cost of the installation of such City Improvements, including any reasonable
engineering, legal and administrative costs incurre d by the City, shall be
assessed against the benefited properties within th e Subdivision in
accordance with City policy existing the date of th is agreement, in equal
annual principal installments plus interest on the unpaid installments at a
rate not to exceed the maximum allowed by law.
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3. All special assessments levied hereto shall be p ayable to the City Clerk in
semi-annual installments over fifteen (15) years co mmencing on April 15 of
the year after the levy of such assessment and on e ach September 15 and
April 15 thereafter until the entire balance plus a ccrued interest is paid in full
unless paid earlier. In the alternative, the City, at its option, may certify the
entire assessment roll to the Anoka County Auditor for collection with the
Real Estate Taxes. In the event any payment is not made on the dates set out
herein, the City may exercise its rights granted he reunder for such default.
The Developer waives any and all procedural and sub stantive objections to
the installation of the City Improvements and the s pecial assessments,
including but not limited to hearing requirements a nd any claim that the
assessments exceed the benefit to the property. In the event the total of all
City Installed Improvements is less than originally estimated by the City
Engineer in his feasibility report, Developer waive s any appeal rights
otherwise available pursuant to M.S.A. 429.081.
D. Required Payments of Special Assessments by Deve loper.
1. Developer, its heirs, successors or assigns here by agrees that within thirty
(30) days after the issuance of a certificate of oc cupancy for a residence on a
lot located within the Subdivision which is assesse d for the cost of such City
Improvements, the Developer, its heirs, successors or assigns, agrees, at its
own cost and expense, to pay the entire unpaid City Improvement Costs
assessed or to be assessed under this agreement aga inst such property.
2. If a certificate of occupancy is issued before t he special assessments have
been levied, the Developer, its heirs, successors o r assigns shall pay the City
the sum of cash equal to one hundred twenty percent (120%) of the
Engineer's estimate of the special assessments for such City Improvements
that would be levied against the property. Upon su ch payment the City shall
issue a certificate showing the assessments are pai d in full. Notwithstanding
the issuance of said certificate, the Developer sha ll be liable to the City for
any deficiency and the City shall pay the Developer any surplus arising from
the payment based upon such estimate. Developer wi ll be paid interest on
all assessments paid before the levy of such assess ments by the City at the
bond interest rates paid by the City.
E. Acceleration Upon Default.
1. In the event the Developer violates any of the c ovenants, conditions or
agreements herein contained to be performed by the Developer, violates any
ordinance, rule or regulation of the City, County o f Anoka, State of
Minnesota or other governmental entity having juris diction over the plat, or
fails to pay any installment of any special assessm ent levied pursuant hereto,
or any interest thereon, when the same is to be pai d pursuant hereto, the City
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Development Contract
May, 2013
page 11
at its option, in addition to its rights and remedi es hereunder, after ten (10)
days' written notice to the Developer, may declare all of the unpaid special
assessments which are then estimated or levied purs uant to this agreement
due and payable in full, with interest. The City m ay seek recovery of such
special assessments due and payable from the securi ty provided herein. In
the event that such security is insufficient to pay the outstanding amount of
such special assessments plus accrued interest the City may certify such
outstanding special assessments in full to the Coun ty Auditor pursuant to
M.S. 429.061, Subd. 3 for collection the following year. The City, at its
option, may commence legal action against the Devel oper to collect the
entire unpaid balance of the special assessments th en estimated or levied
pursuant hereto, with interest, including reasonabl e attorney's fees, and
Developer shall be liable for such special assessme nts and, if more than one,
such liability shall be joint and several. Also, i f Developer violates any term
or condition of this agreement, or if any payment i s not made by Developer
pursuant to this agreement the City, at its option, may refuse to issue
building permits to any of the property within the plat on which the
assessments have not been paid.
IV. RECORDING AND RELEASE
A. The Developer agrees that the terms of this Deve lopment Contract shall be a
covenant on any and all property included in the Su bdivision. The Developer agrees
that the City shall have the right to record a copy of this Development Contract with
the Anoka County Recorder to give notice to future purchasers and owners. This
shall be recorded against the Subdivision described on Page 1 hereof. City shall
provide to Developer upon payment of all the specia l assessments levied against a
parcel, a release of such parcel from the terms and conditions of this Development
Contract subject to provisions contained in this co ntract.
V. REIMBURSEMENT OF COSTS
A. The Developer agrees to establish a non-interest bearing escrow account with the
City in an amount determined by the City Administra tor or his designee for the
payment of all costs incurred by the City related t o the development of the
Subdivision and the Developer Improvements includin g, but not limited to, the
following (See Attachment B for breakdown of costs):
1. Plat Review Fee
2. Planner Review Fee
3. Administration - 3% Construction Cost
4. Engineering
5. Legal
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6. Publications
7. Park Dedication Fee
8. Street Lighting – Install/Operate
9. Traffic Signing Improvements
10. Boulevard Tree Planting
11. Street - Storm Sewer - Pond Maintenance
12. Sealcoating Fund
13. Aerial Photo Recovery Cost
B. If the above escrow amounts are insufficient, th e Developer shall make such
additional deposits as required by the City. The C ity shall have a right to reimburse
itself from the Escrow upon notice to the Developer , with suitable documentation
supporting charge.
VI. TRUNK UTILITY & SURFACE WATER MANAGEMENT CHARGE S
A. Trunk Sewer Unit Charges. The City has established trunk unit charges to
uniformly distribute the costs of public trunk sani tary sewer infrastructure. Each
individual connection to the sanitary sewer system shall be charged a unit charge
per SAC unit (currently at $2,911 per SAC unit). T he unit charge shall be based
on the procedure outlined in the Metropolitan Envir onmental Services Service
Availability Charge Procedure Manual. Trunk sewer unit charges addressed
under this paragraph are in addition to any SAC cha rges imposed by Metropolitan
Council Environmental Services. An estimate of the total charge and the trunk
utility credit for developer installed trunk oversi zing is specified in Attachment A.
B. Trunk Water Unit Charges. The City has established trunk unit charges to
uniformly distribute the costs of public trunk wate r infrastructure. Each
individual connection to the water system shall be charged a unit charge per SAC
unit (currently at $3,854 per SAC unit). The unit charge shall be based on the
procedure outlined in the Metropolitan Environmenta l Services Service
Availability Charge Procedure Manual. An estimate of the total charge and the
trunk utility credit for developer installed trunk oversizing is specified in
Attachment A.
A credit of $12,281 will be applied against the Tru nk Water Unit Charge for the
dedication of Outlot A to the City for use as a fut ure well site.
C. Surface Water Management Area Charges. The City has established a trunk area
charge to uniformly distribute the costs of public trunk surface water
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Development Contract
May, 2013
page 13
infrastructure and water quality improvements. The Developer shall pay pursuant
to the terms of the development agreement Surface W ater Management Charges,
based on developable acreage, in the amount specifi ed in Attachment A.
VII. BUILDING PERMITS
A. The Developer agrees that building permits may be i ssued upon approval of the
Final Plat by the City Council at which time all re quired Financial Security shall be
in place with the City. The Developer further agre es that City Sewer, Water, Storm
Sewer, and Bituminous Base Construction of the Stre ets, temporary street signs, gas,
electric, and telephone will be completed prior to issuance of building permits.
B. The Developer further agrees that an as-built surve y certifying that all the grading
complies with the grading plan prior to issuance of building permits.
VIII. HOURS OF CONSTRUCTION ACTIVITY
A. All construction activity shall be limited to th e hours as follows:
Monday through Friday 7:00 a.m. to 7:00 p.m.
Saturday 9:00 a.m. to 5:00 p.m.
Sunday and Holidays No working hours allowed
IX. OWNERSHIP OF IMPROVEMENTS
A. Upon completion and City acceptance of the work and construction required by this
agreement, the Public Improvements lying within pub lic rights of way or easements
shall become City property.
X. INSURANCE
A. Developer or all its subcontractors shall take o ut and maintain until one (1) year
after the City has accepted the Developer Improveme nts, public liability and
property damage insurance covering personal injury, including death, and claims for
property damage which may arise out of the Develope r's work or the work of his
subcontractors or by one directly or indirectly emp loyed by any of them. Limits for
bodily injury and death shall be not less than Five Hundred Thousand and no/100
($500,000.00) Dollars for one person and One Millio n and no/100 ($1,000,000.00)
Dollars for each occurrence; limits for property da mage shall be not less then Two
Hundred Thousand and no/100 ($200,000.00) Dollars f or each occurrence; or a
combination single limit policy of One Million and no/100 ($1,000,000.00) Dollars
or more. The City, its employees, its agents and as signs shall be named as an
additional insured on the policy, and the Developer or all its subcontractors shall file
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page 14
with the City a certificate evidencing coverage pri or to the City signing the plat.
The certificate shall provide that the City must be given ten (10) days advance
written notice of the cancellation of the insurance . The certificate may not contain
any disclaimer for failure to give the required not ice.
XI. REIMBURSEMENT OF COSTS FOR DEFENSE
A. The Developer agrees to reimburse the City for a ll costs incurred by the City in
defense of enforcement of this contract, or any por tion thereof, including court costs
and reasonable engineering and attorneys' fees if t he City prevails in such action.
XII. VALIDITY
A. If a portion, section, subsection, sentence, cla use, paragraph or phrase in this
contract is for any reason held to be invalid by a court of competent jurisdiction,
such decision shall not affect or void any of the o ther provisions of the Development
Contract.
XIII. GENERAL
A. Binding Effect
1. The terms and provisions hereof shall be binding upon and insure to the
benefit of the heirs, representatives, successors a nd assigns of the parties
hereto and shall be binding upon all future owners of all or any part of the
Subdivision and shall be deemed covenants running w ith the land.
B. Notices
1. Whenever in this agreement it shall be required or permitted that notice or
demand be given or served by either party to this a greement to or on the
other party, such notice or demand shall be deliver ed personally or mailed by
United States mail to the addresses hereinbefore se t forth on Page 1 by
certified mail (return receipt requested). Such no tice or demand shall be
deemed timely given when delivered personally or wh en deposited in the
mail in accordance with the above. The addresses o f the parties hereto are as
set forth on Page 1 until changed by notice given a s above.
C. Final Plat Approval
The City agrees to give final approval to the plat of the Subdivision upon execution
and delivery of this agreement and all required pet itions, bonds, security, and
documents including the following:
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page 15
1. A revised Conservation Easement, Covenants & Restri ctions (CECR) shall
be submitted to the City in recordable format.
2. Homeowners Association documents shall be submitted to the City in
recordable format including Bylaws and Articles of Incorporation.
3. A Grading Permit application shall be submitted and approved by City
Staff prior to any grading or site work.
4. The Rice Creek Watershed District must review and i ssue a permit for the
project prior to building permits being issued by t he city for any new
construction.
5. A quit claim deed for conveyance of Outlot A to the City in recordable
format shall be submitted by the developer.
6. The “The Preserve Conservation Development; Restora tion and
Management Plan for Conservation Areas” shall be re vised and approved
by City staff.
7. A temporary cul-de-sac easement on Pheasant Run is required.
8. A Pedestrian and Bicycle Trail Easement shall be dr afted by the City,
signed by the developer and recorded by the City.
XIV. VIOLATIONS/BUILDING PERMITS
A. In the event that Developer violates any of the covenants and agreements contained
in this Development Contract and to be performed by the Developer, the City, at its
option, in addition to the rights and remedies as s et out hereunder may refuse to
issue building permits and/or Certificate of Occupa ncies to any property within the
Subdivision until such time as such default has bee n corrected to the satisfaction of
the City.
XV. PARK DEDICATION
A. The Park Dedication fee for this site is calculated as follows:
31 units x $2,500 = $77,500
The Park Dedication fee shall be credited up to a m aximum of $77,500 based on
the cost for the construction of the trail and boar dwalk by the Developer. The cost
estimate for the trail is $13,119.60 and for the bo ardwalk is $147,600.
XVI. PROPERTY TAXES
A. Should the recording of the Final Plat occur aft er July 1, any and all property taxes
on any public property dedicated as a part of this plat shall be the responsibility of
the Developer. Dollars shall be incorporated into the escrow agreement to cover the
cost of said property taxes.
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DEVELOPER CITY OF LINO LAKES
By By_________________
Developer Mayor
ATTEST:
By__________________
Clerk
STATE OF MINNESOTA )
) SS
COUNTY OF ANOKA )
On this day of , 20 . b efore me, a Notary Public within and for said Count y,
personally appeared
(Mayor) and (Clerk), to me known to be respecti vely the Mayor
and Clerk of the City of Lino Lakes, and who execut ed the foregoing instrument and acknowledge
that they executed the same on behalf of said City.
Notary public
STATE OF MINNESOTA )
) SS
COUNTY OF ANOKA )
On this day of , of 20 , before me, a Notary Public within and for
said County, personally appeared (Developer), to me known to be the
, of , a corporation under the laws of the State of Minnes ota, and that
they executed the foregoing instrument and acknowle dged that they/he executed the same on behalf
of said corporation.
Notary Public
5-15-2013 ATTACHMENT A
SUMMARY OF IMPROVEMENT COSTS
DEVELOPER INSTALLED IMPROVEMENTS
PROJECT NAME:Preserve at Lino Lakes NUMBER OF REU's:31
APPLICANT:Schweiters Investments of Lino LakesASSES SED AREA (ac.):10.9
BUDGETDEVELOPERCITYESCROW
ITEMNECESSARY IMPROVEMENTSCOSTNOTEIMP. (X)IMP. (Y)A MOUNT (Z)
1SITE GRADINGEstimatee$46,500
2EROSION CONTROL Estimatee$19,066
3SITE ENGINEERING & SURVEYINGEstimatee$25,000
4LANDSCAPINGEstimatee
A. Screening along north property lineEstimateb$4,000
B. Wetland RestorationEstimatee$91,784
5STREETS
A. Subgrade/Base CourseEstimatee$188,351
B. Wear CourseEstimatee$46,080
C. Boardwalk/retaining wall/fenceEstimatee303,030 $
6STORM SEWER CONST.
A. Trunk Estimatee$0
B. LateralEstimatee$114,710
C. Surface Water Mgmt.$0.074/sfa$35,135
7SANITARY SEWER CONST.
A. Trunk Unit Charge (REU)$2,911/unita$90,241
B. Lateral Estimatee$97,698
C. Trunk CreditEstimatee
8WATERMAIN CONST.
A. Trunk Unit Charge (REU)$3,854/unita$119,474
B. Lateral Estimatee$188,426
C. Trunk CreditEstimatee($12,281)
TOTALS:$1,124,645$232,569$0
See Attachment B for security amounts to be posted
NOTE:
a: Cost by City policy
b: Estimated Cost or Budget by City
c: Previously Assessed
d: Cash Requirement per Agreement with Park Board
e: Provided by Developer
f: Estimate by Feasibility Study
5-15-2013 ATTACHMENT B
CITY FEES
DEVELOPER INSTALLED IMPROVEMENTS
PROJECT NAME:Preserve at Lino LakesNUMBER OF REU's:31
APPLICANT:Schweiters Investments of Lino LakesASSES SED AREA (ac.):10.9
BUDGETDEVELOPERCITYESCROW
ITEMNECESSARY IMPROVEMENTSCOSTNOTEIMP. (X)AMOUNT (Y )AMOUNT (Z)
1PLANNING/REVIEW
A. Plat Review Fee$1,500b $1,500
B. Planner Review Fee$1,500b $1,500
2ADMINISTRATION
A. Legal $1,000a $1,000
B. Administration Fee 3% of const.b $40,700
C. Publications $1,000b $1,000
3ENGINEERING
A. Plan/Plat/Grading Review $5,000b $5,000
B. Construction Services $15,000b $15,000
C. Construction Staking$0b $0
D. City Engineering $12,500b $12,500
4DEVELOPMENT FEES
A. Park Dedication Fee $2500/unitd $77,500
B. Park Dedication Credit ($77,500)
C. Sealcoating Fee$0.30/SFb $17,238
D. Aerial Photo Fee90/unitb $2,790
5BOULEVARD TREE PLANTING$465/treeb $17,205
6DEVLOPMENT SECURITIES
A. Tree Preservation 95/unitb $0
B. Street Lighting - installation$2,500a $10,000
C. Street Lighting - operation$265 $1,060
D. Traffic Signing $500a $2,000
E. Street, Storm Sewer, Pond Maint.b $1,000
SUBTOTAL:$0$0$129,493
Grading Only Escrow Credit $0$14,450
TOTALS:$0$115,043
SECURITY AMOUNTS TO BE POSTED Att. A Att. B Total
X = DEVELOPMENT IMPROVEMENT COSTS X 1.5 (LETTER OF CREDIT)$1,687,000$0$1,687,000
Y = CITY IMPROVEMENT COSTS X 0.35 (LETTER OF CREDIT )$81,400$0$81,400
Z = CITY FEES X 1.0 (CASH ESCROW)$0$115,043$115,043
NOTE:a: Cost by City policy
b: Estimated Cost or Budget by City
c: Previously Assessed
d: Cash Requirement per Agreement with Park Board
e: Provided by Developer
f: Estimate by Feasibility Study
CITY COUNCIL
AGENDA ITEM 6 B
STAFF ORIGINATOR: Katie Larsen, City Planner
MEETING DATE: May 28, 2013
TOPIC: Consider Resolution No. 13 -6 0 , Approving Development
Agreement for Main Street Shopp es
VOTE REQUIRED: 3/5
INTRODUCTION
Staff is requesting City Council consideration of the Development Agreement for Main Street
Shoppes.
BACKGROUND
The City Council approved the Final Plat for Main Street Shoppes on May 13, 2013 with
Resolution No. 13-59 subject to the condition a Development Agreement is executed by and
between the developer and City. The City Engineer has prepared the Development Agreement
which provides for the submittal of fees and securities to cover City review costs and ensure
completion of the public and private improvements in accordance with the approved plans. The
City Attorney has reviewed the Title Commitment.
RECOMMENDATION
Staff is recommending approval of Resolution No. 13-60 .
ATTACHMENTS
1. Resolution No. 13-60
2. Development Agreement
CITY OF LINO LAKES
RESOLUTION NO. 13 -60
RESOLUTION APPROVING DEVELOPMENT AGREEMENT
FOR MAIN STREET SHOPPES
WHEREAS, the City Council approved the Final Plat for Main Street Shoppes on May 13 ,
2013 , and
WHEREAS, the City’s subdivision ordinance and con ditions of approval require the execut ion
of a development agreement between the Developer and the City of Lino Lakes.
NOW, THEREFORE BE IT RESOLVED that The City Council of The City of Lino Lakes
hereby approves the Development Contract between CM Proper ties 14, LLC and the City of
Lino Lakes, for Main Street Shoppes and authorizes the Mayor and City Clerk to execute such
agreement on behalf of the City.
Adopted by the Lino Lakes City Council this _____ day of ________________, 2013.
The motion for th e adoption of the foregoing resolution was duly seconded by Council Member
_________________and upon vote being taken thereon, the following voted in favor thereof:
The following voted against same:
___________________________
Jef f Reinert, Mayor
ATTEST:
____________________________
Julianne Bartell, City Clerk
DEVELOPMENT CONTRACT
Main Street Shoppes
THIS AGREEMENT made this _____ day of May, 2013, is by and between the City of
Lino Lakes, whose address is 600 Town Center Parkwa y, Lino Lakes, Minnesota, 55014, a
municipal corporation organized under the laws of t he State of Minnesota, hereinafter referred to
as the “City,” and CM Properties 14, LLC whose addr ess is 3470 Washington Drive, Suite 102,
Eagan, MN 55122 hereinafter referred to as the “Dev eloper.”
WHEREAS, the Developer has received preliminary pla t approval from the City Council
for a plat of land within the corporate limits of t he City known as Main Street Shoppes
hereinafter called “Subdivision,” said land is lega lly described as follows:
The West Half of the Northeast Quarter of the North east Quarter of Section 24, Township
31, Range 22, Anoka County, Minnesota, including Pa rcels 4B and 5A of Anoka County
Highway Right of Way Plat No. 65, subject to easeme nts of record.
WHEREAS, the Developer is to be responsible for the installation and financing of
certain public and private improvements within the Subdivision; and
WHEREAS, said public and private improvements inclu de grading, drainage, sanitary
sewer, water, storm sewer, and a private access dri veway (the “Improvements”); and
WHEREAS, the City Subdivision Ordinance and Minneso ta Statutes section 462.358
authorize the City to enter into a performance cont ract secured by cash escrow or other security
to guarantee completion and payment of such improve ments following final approval and
recording of final plat.
NOW, THEREFORE, in consideration of the mutual prom ises of the parties made herein,
IT IS AGREED BY AND BETWEEN THE PARTIES HERETO: tha t the
I. DEVELOPER IMPROVEMENTS
A. Improvements to be installed by the Developer and f inanced by the Developer are
hereinafter referred to as “Developer Improvements.”
Main Street Shoppes
Development Contract
May, 2013
page 2
B. The Developer Improvements are categorized as eithe r Public Improvements or
Private Improvements. The new water system lateral s lying within public
easements, but not service lines connected to such laterals, are Public
Improvements. All remaining Improvements are priva te and are hereinafter
referred to as “Private Improvements”.
II. DEVELOPER’S PLANS
A. The subject property shall be developed in accordan ce with the following plans,
original copies of which are on file with the City Engineer. The plans may be
prepared after entering this agreement but must be completed and approved by the
City before commencement of any work on the Subject Property. If the plans
vary from the written terms of this Agreement, the written terms shall control.
The plans are:
Plan C0.1 - Civil Title Sheet
Plan C1.1 - Certificate of Survey
Plan C1.2 - Preliminary Plat
Plan C2.1 - Site Plan
Plan C3.1 - Grading, Drainage, Paving & Erosion Con trol
Plan C3.2 - SWPPP Notes
Plan C4.1 - Utility Plan
Plan C7.1 - Civil Construction Details
Plan C7.2 - Civil Construction Details
Plan C7.3 - Civil Construction Details
B. The plans shall be approved by the City of Lino Lak es. The Developer shall
secure a contractor to install these improvements; said contractor shall be
approved by the City at its absolute discretion. A ll Developer Improvements shall
require City inspection and approval and, where app ropriate, the approval of any
other governmental agency having jurisdiction. The Developer shall construct
and install at the Developer’s expense, the followi ng improvements according to
the following terms and conditions:
1. Grading Plan
a) A final site grading plan, including certified wetl and delineations,
with maximum two-foot contours and cross sections a s necessary
submitted and approved by the City prior to commenc ement of any
site grading. The final site grading plan shall al so be subject to the
approval of any other governmental agency having ju risdiction,
including but not limited to the Rice Creek Watersh ed District
(RCWD). No grading shall commence until all requir ements of
the RCWD have been satisfied. No building permits shall be
issued until all site grading has been completed to the satisfaction
of the City.
Main Street Shoppes
Development Contract
May, 2013
page 3
b) The grading plan and all site grading shall be prov ided and
conducted in accordance with the plan as approved b y the City,
NPDES requirements and the RCWD. The Developer sha ll
perform the work in accordance with a Storm Water P ollution
Prevention Plan (SWPPP) in accordance with Minnesot a Pollution
Control Agency (MPCA) requirements.
c) The Developer shall be responsible for securing all required site
grading and development approvals and permits from all Federal,
State, Regional and Local agencies with jurisdictio n or as
applicable prior to the commencement of site gradin g or
construction.
2. Erosion Control Plan
a) The Developer shall submit an erosion control plan, detailing all
erosion control measures to be implemented during c onstruction.
Said plan shall be approved by the City prior to th e
commencement of site grading or construction.
b) The Developer shall submit a turf establishment pla n which details
topsoil placement, seeding, sodding, mulching, fert ilizing and
watering. Said plan shall be approved by the City prior to the
commencement of site grading or construction.
3. Grading and Erosion Control Construction & Maintena nce
a) Prior to the commencement of site grading and erosi on control, the
Developer shall complete items II.B.1 and II.B.2 as listed above.
b) The Developer shall grade the site to within 0.2 fo ot of the grades
shown on the approved grading plan. No deviations will be
allowed unless a revised plan is submitted and appr oved by the
City and all other regulatory agencies.
c) All development shall conform to the natural limita tions presented
by the topography and soil of the subdivision in or der to create the
best potential for preventing soil erosion.
d) Erosion and siltation control measures shall be coo rdinated with
the different stages of development. The Developer shall attain an
NPDES Stormwater Permit prior to engaging in any si te grading
activities. All terms and conditions of the NPDES permit must be
adhered to by the Developer throughout construction the duration
of construction of the Subdivision from start to fi nish.
Main Street Shoppes
Development Contract
May, 2013
page 4
e) Where the topsoil is removed, sufficient arable soi l shall be set
aside for respreading over the developed area. The topsoil shall be
restored to a depth of at least four (4) inches and shall be of a
quality at least equal to the soil quality prior to development. The
Developer shall make all necessary adjustments to t he curb stops to
bring them flush with the topsoil prior to occupanc y.
f) The Developer shall install four (4) inches of tops oil on all
boulevards and seed or sod as approved by the City.
g) All disturbed areas shall be sodded or seeded, as d esignated per the
approved plans, immediately upon completion of grad ing.
h) The street right-of-way, storm water storage ponds, and surface
water drainage ways shall be graded prior to commen cement of
utility construction.
i) Drainage swales, ditches, storm water storage ponds and other high
risk erosion areas shall be protected from erosion.
j) All remaining grading must be completed prior to is suance of
building permits.
k) All streets shall be protected from erosion deposit s. This should
include a combination of roadside silt fences, road side sod strips,
catch basin rock bale inlet protection, rock constr uction entrances,
straw mulch, and/or street sweeping.
l) The Developer’s engineer shall certify, in writing with an as-built
survey, that all grading complies with the approved grading plan
prior to issuance of any building permits.
m) The Developer shall be responsible for ascertaining that site
geotechnical and groundwater conditions are adequat e and
conforming with the grading and site improvement as proposed.
n) The Developer shall provide financial security and/or cash escrow
to assure completion of the grading and restoration , in the event
that the work is not completed by the Developer.
4. Final private access driveway grading, subbase, gra vel base, concrete curb
and gutter, and bituminous base course and wear cou rse.
5. Storm sewers when determined to be necessary by the City Engineer,
including all necessary laterals, catch basins, inl ets and other
appurtenances shall be furnished and installed.
Main Street Shoppes
Development Contract
May, 2013
page 5
6. Sanitary sewer mains, laterals or extensions, inclu ding all necessary
building services and appurtenances shall be furnis hed and installed.
7. Water mains, laterals or extensions, including all necessary building
services, hydrants, valves and other appurtenances shall be furnished and
installed.
8. The Developer shall place iron monuments at all lot and block corners and
at all other angle points on boundary lines. Iron monuments shall be
placed after all street and lawn grading has been c ompleted in order to
preserve the lot markers for future property owners . Lot corner irons on
the back property line shall be installed so that t he top of the iron
corresponds to the finished ground elevation in acc ordance with the
approved grading plan - guard stakes shall be appro priately installed to
mark these irons.
9. The Developer shall promptly clear dirt and debris within public right-of-
ways and drainage and utility easements resulting f rom construction by the
Developer, its purchasers, builders and contractors within five (5) days
after notification by the City. The Developer or i ts assigns shall be
responsible for all necessary street and storm sewe r maintenance including
street sweeping, and storm sewer resulting from the accumulation of said
dirt and debris, prior to issuance of any Certifica tes of Occupancy.
Warning signs shall be placed when hazards develop in streets to prevent
the public from traveling on same and directing att ention to detours. If
and when the streets become impassable, such street s shall be barricaded
and closed. The Developer shall maintain a smooth, hard driving surface
and adequate drainage on all temporary streets.
10. The Developer shall dedicate to the City, prior to approval of the final
plat, at no cost to the City, any permanent or temp orary easements that
may be necessary for the construction and installat ion of the Developer
Improvements. All such easements required by the C ity shall be in
writing, in recordable form, containing such terms and conditions as the
City shall determine.
11. The Developer shall be responsible for securing all site grading and
development approvals and permits from all appropri ate Federal, State,
Regional and Local jurisdictions prior to the comme ncement of site
grading or construction.
12. The Developer shall make provision that all gas, te lephone, cable TV and
electric utility designs be submitted to the City f or review and approval
prior to construction of the improvements. Followi ng review and approval
by the City, the Developer shall insure that all in stallations comply with
applicable City, County and State design standards and show proof of
security arrangements with said utility companies.
Main Street Shoppes
Development Contract
May, 2013
page 6
13. Cost of Developer Improvements and description are as shown on
Attachment A.
14. Construction of Developer’s Improvements:
a) The construction, installation, materials and equip ment shall be in
accordance with the plans and specifications approv ed by the City
unless superseded by the terms of this Contract.
b) All of the work shall be under and subject to the i nspection and
approval of the City and, where appropriate, any ot her
governmental agency having jurisdiction.
c) Prior to acceptance of Developer Improvements by th e City, the
Developer shall obtain final plat approval and reco rd the final plat
which will dedicate all permanent easements necessa ry for the
construction and installation of the Improvements a s determined by
the City.
d) All construction debris and trash shall be properly disposed of at
the Developer’s expense and in a timely manner as d etermined by
the City.
15. Record Drawings
a) Upon completion of construction of sanitary sewer, watermain,
storm sewer, facilities, and grading, the developer shall submit two
(2) sets of record plans, two (2) electronic copies of record plans in
Anoka County NAD 83 Coordinates compatible with the City’s
computer system, including accurate locations, dime nsions,
elevations, grades, slopes and all other pertinent information
concerning the compete work.
b) Also a storm sewer, watermain, and sanitary sewer E xcel
Spreadsheet must be submitted, which includes all t he as-built
data.
16. Faithful Performance of Construction Contracts and Letter of Credit
a) The Developer will fully and faithfully comply with all terms and
conditions of any and all contracts entered into by the Developer
for the installation and construction of all Develo per Improvements
and hereby guarantees the workmanship and materials for a period
of one year following the City’s final acceptance o f the
Developer’s Improvements. Concurrently with the ex ecution
hereof by the Developer, the Developer will furnish to, and at all
times thereafter maintain with the City, a cash dep osit, certified
Main Street Shoppes
Development Contract
May, 2013
page 7
check, or Irrevocable Letter of Credit, based on on e hundred fifty
(150%) percent of the total estimated cost of the D eveloper’s
Public Improvements and thirty-five (35%) percent o f the total
estimated cost of Developer’s Private Improvements. The bank
and form of the Letter of Credit or security shall be subject to the
approval of the City. An Irrevocable Letter of Cre dit shall be for
the exclusive use and benefit of the City of Lino L akes and shall
state thereon that the same is issued to guarantee and assure
performance by the Developer of all the terms and c onditions of
this Development Contract and construction of all r equired
improvements in accordance with the ordinances and
specifications of the City. The City reserves the right to draw, in
whole or in part, on any portion of the Irrevocable Letter of Credit
for the purpose of guaranteeing the terms and condi tions of this
contract. The Irrevocable Letter of Credit shall b e automatically
extended for additional periods of one year from pr esent or future
expiration dates.
b) Reduction of Escrow Guarantee.
(1) The Developer may request reduction of the Letter o f
Credit, or cash deposit based on prepayment or the value of
the completed improvements at the time of the reque sted
reduction. Prior to the final acceptance of the De veloper’s
Improvements the City shall require a Performance B ond or
Cash Escrow to cover the one year warranty provisio ns of
the agreement. The amount shall be determined by t he City
Engineer.
III. CITY IMPROVEMENTS
A. There are no new City Improvements for this project .
IV. RECORDING AND RELEASE
A. The Developer agrees that the terms of this Develop ment Contract shall be a
covenant on any and all property included in the Su bdivision. The Developer
agrees that the City shall have the right to record a copy of this Development
Contract with the Anoka County Recorder to give not ice to future purchasers and
owners. This Development Contract shall be recorde d against the Subdivision
described on Page 1 hereof. City shall provide to Developer upon completion of
Developer’s private improvements, a release of such parcel from the terms and
conditions of this Development Contract subject to provisions contained in this
contract.
Main Street Shoppes
Development Contract
May, 2013
page 8
V. REIMBURSEMENT OF COSTS
A. The Developer agrees to establish a non-interest be aring escrow account with the
City in an amount determined by the City Administra tor or his designee for the
payment of all costs incurred by the City related t o the development of the
Subdivision and the Developer Improvements includin g, but not limited to, the
following (See Attachment B for breakdown of costs):
1. Plat Review Fee
2. Planner Review Fee
3. Administration - 3% Construction Cost
4. Engineering
5. Legal
6. Publications
7. Park Dedication Fee
8. Street - Storm Sewer - Pond Maintenance
9. Aerial Photo Recovery Cost
B. If the above escrow amounts are insufficient, the D eveloper shall make such
additional reasonable deposits as required by the C ity. The City shall have a right
to reimburse itself from the Escrow upon notice to the Developer, with suitable
documentation supporting charge. The City will fir st draw on the existing Escrow
filed as a requirement of the application for appro val of the preliminary plat for
the Subdivision.
VI. TRUNK UTILITY & SURFACE WATER MANAGEMENT CHARGES
A. Trunk Sewer Unit Charges. The City has established trunk unit charges to
uniformly distribute the costs of public trunk sani tary sewer infrastructure. Each
individual connection to the sanitary sewer system shall be charged a unit charge
per SAC unit (currently at $2,911 per SAC unit). T he unit charge shall be based
on the procedure outlined in the Metropolitan Envir onmental Services Service
Availability Charge Procedure Manual. Trunk sewer unit charges addressed
under this paragraph are in addition to any SAC cha rges imposed by Metropolitan
Council Environmental Services. An estimate of the total charge and the trunk
utility credit for developer installed trunk oversi zing is specified in Attachment A.
Trunk Sewer Unit Charges will be collected with the Site Performance Agreement
for Lot 1 Block 1 of Main Street Shoppes.
Main Street Shoppes
Development Contract
May, 2013
page 9
B. Trunk Water Unit Charges. The City has established trunk unit charges to
uniformly distribute the costs of public trunk wate r infrastructure. Each
individual connection to the water system shall be charged a unit charge per SAC
unit (currently at $3,854 per SAC unit). The unit charge shall be based on the
procedure outlined in the Metropolitan Environmenta l Services Service
Availability Charge Procedure Manual. An estimate of the total charge and the
trunk utility credit for developer installed trunk oversizing is specified in
Attachment A.
Trunk Water Unit Charges will be collected with the Site Performance Agreement
for Lot 1 Block 1 of Main Street Shoppes.
C. Surface Water Management Area Charges. The City ha s established a trunk area
charge to uniformly distribute the costs of public trunk surface water
infrastructure and water quality improvements. The Developer shall pay pursuant
to the terms of the development agreement Surface W ater Management Charges,
based on developable acreage, in the amount specifi ed in Attachment A.
VII. BUILDING PERMITS
A. The Developer agrees that building permits may be i ssued upon approval of the
Final Plat by the City Council at which time all re quired Financial Security shall
be in place with the City. The Developer further a grees that City Sewer, Water,
Storm Sewer, and Bituminous Base Construction of th e Private Access Driveway,
temporary street signs, gas, electric, and telephon e will be completed prior to
issuance of building permits.
B. The Developer further agrees that an as-built surve y certifying that all the grading
complies with the grading plan prior to issuance of building permits.
VIII. HOURS OF CONSTRUCTION ACTIVITY
A. All construction activity shall be limited to the h ours as follows:
Monday through Friday 7:00 a.m. to 7:00 p.m.
Saturday 9:00 a.m. to 5:00 p.m.
Sunday and Holidays No working hours allowed
IX. OWNERSHIP OF IMPROVEMENTS
A. Upon completion and City acceptance of the work and construction required by
this agreement, the Public Improvements lying withi n public rights of way or
easements shall become City property.
X. INSURANCE
A. Developer or all its subcontractors shall take out and maintain, until construction
of the Private Improvements is complete, public lia bility and property damage
Main Street Shoppes
Development Contract
May, 2013
page 10
insurance covering personal injury, including death , and claims for property
damage which may arise out of the Developer’s work or the work of his
subcontractors or by one directly or indirectly emp loyed by any of them. Limits
for bodily injury and death shall be not less than Five Hundred Thousand and
no/100 ($500,000.00) Dollars for one person and One Million and no/100
($1,000,000.00) Dollars for each occurrence; limits for property damage shall be
not less then Two Hundred Thousand and no/100 ($200 ,000.00) Dollars for each
occurrence; or a combination single limit policy of One Million and no/100
($1,000,000.00) Dollars or more. The City, its emp loyees, its agents and assigns
shall be named as an additional insured on the poli cy, and the Developer or all its
subcontractors shall file with the City a certifica te evidencing coverage prior to
the City signing the plat. The certificate shall p rovide that the City must be given
ten (10) days advance written notice of the cancell ation of the insurance. The
certificate may not contain any disclaimer for fail ure to give the required notice.
XI. REIMBURSEMENT OF COSTS FOR DEFENSE
A. The Developer agrees to reimburse the City for all costs incurred by the City in
defense of enforcement of this contract, or any por tion thereof, including court
costs and reasonable engineering and attorneys’ fee s if the City prevails in such
action.
XII. VALIDITY
A. If a portion, section, subsection, sentence, clause , paragraph or phrase in this
contract is for any reason held to be invalid by a court of competent jurisdiction,
such decision shall not affect or void any of the o ther provisions of the
Development Contract.
XIII. GENERAL
A. Binding Effect
1. The terms and provisions hereof shall be binding up on and insure to the
benefit of the heirs, representatives, successors a nd assigns of the parties
hereto and shall be binding upon all future owners of all or any part of the
Subdivision and shall be deemed covenants running w ith the land, unless
released pursuant to Article IV.
B. Notices
1. Whenever in this agreement it shall be required or permitted that notice or
demand be given or served by either party to this a greement to or on the
other party, such notice or demand shall be deliver ed personally or mailed
by United States mail to the addresses hereinbefore set forth on Page 1 by
certified mail (return receipt requested). Such no tice or demand shall be
deemed timely given when delivered personally or wh en deposited in the
Main Street Shoppes
Development Contract
May, 2013
page 11
mail in accordance with the above. The addresses o f the parties hereto are
as set forth on Page 1 until changed by notice give n as above.
C. Final Plat Approval
The City agrees to give final approval to the plat of the Subdivision upon
execution and delivery of this agreement and all re quired petitions, bonds,
security, and documents including the following:
1. A Grading Permit application shall be submitted and approved by City
Staff prior to any grading or site/work.
2. On all plans sheets, preliminary and final plat, th e drainage & utility
easement shall include 10 foot wetland buffer.
3. A thirty-two (32) foot wide drainage & utility ease ment shall be shown on
final plat over the water main installed within the private drive.
4. A Declaration of Access Control for future right in /right out access shall
be drafted by the City and signed by the owner.
5. A Declaration for Maintenance of Stormwater Facilit ies shall be drafted
by the City and signed by the owner and Rice Creek Watershed District.
6. A Reciprocal Access Easement and Maintenance Agreem ent shall be
drafted by the City and signed by the owner.
7. The Rice Creek Watershed District must review and i ssue a permit for the
project prior to building permits being issued by t he city for any new
construction.
XIV. VIOLATIONS/BUILDING PERMITS
A. In the event that Developer violates any of the cov enants and agreements
contained in this Development Contract and to be pe rformed by the Developer,
the City, at its option, in addition to the rights and remedies as set out hereunder
may refuse to issue building permits and/or Certifi cate of Occupancies to any
property within the Subdivision until such time as such default has been corrected
to the satisfaction of the City.
XV. PARK DEDICATION
A. The Park dedication fee for this site is calculated as follows:
1.24 acres x $2,175 = $2,697.00
XVI. PROPERTY TAXES
A. Should the recording of the Final Plat occur after July 1, any and all property
taxes on any public property dedicated as a part of this plat shall be the
responsibility of the Developer. Dollars shall be incorporated into the escrow
agreement to cover the cost of said property taxes.
Main Street Shoppes
Development Contract
May, 2013
page 12
CM PROPERTIES 14, LLC CITY OF LINO LAKES
By By
Chief Manager Mayor
ATTEST:
By
Clerk
STATE OF MINNESOTA )
) SS
COUNTY OF ANOKA )
On this _____ day of ________________, 20__, before me, a Notary Public within and
for said County, personally appeared ____________________ (Mayor) and
__________________ (Clerk), to me known to be respe ctively the Mayor and Clerk of the City
of Lino Lakes, and who executed the foregoing instr ument and acknowledge that they executed
the same on behalf of said City.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF ANOKA )
On this _____ day of ________________, 20__, before me, a Notary Public within and
for said County, personally appeared ____________________ (Developer), to me known to be
the ________________, of __________________, a corp oration under the laws of the State of
Minnesota, and that they executed the foregoing ins trument and acknowledged that they/he
executed the same on behalf of said corporation.
Notary Public
1456712.2
3-7-2013 ATTACHMENT A
SUMMARY OF IMPROVEMENT COSTS
DEVELOPER INSTALLED IMPROVEMENTS
PROJECT NAME:Main Street Shoppes NUMBER OF REU's:0
APPLICANT:MFC Properties CorporationASSESSED AREA (ac.):1.24
BUDGETPRIVATEPUBLICFEE
ITEMNECESSARY IMPROVEMENTSCOSTNOTEIMP. (W)IMP. (X)A MOUNT (Z)
1SITE GRADINGEstimatee$57,902
2EROSION CONTROL Estimatee$27,808
3SITE ENGINEERING & SURVEYINGEstimatee$35,090
4LANDSCAPINGEstimatee$3,038
5STREETS
A. Subgrade/Base CourseEstimatee$12,684
B. Wear CourseEstimatee$4,935
6STORM SEWER CONST.
A. Trunk Estimatee
B. LateralEstimatee$24,997
C. Surface Water Mgmt.$0.112/sfa $6,050
7SANITARY SEWER CONST.
A. Trunk Unit Charge (REU)$2,911/unita $0
B. Lateral Estimatee$21,113
C. Trunk CreditEstimatee
8WATERMAIN CONST.
A. Trunk Unit Charge (REU)$3,854/unita $0
B. Lateral Estimatee$14,618
C. Trunk CreditEstimatee
TOTALS:$202,184$0$6,050
See Attachment B for security amounts to be posted
NOTE:
a: Cost by City policy
b: Estimated Cost or Budget by City
c: Previously Assessed
d: Cash Requirement per Agreement with Park Board
e: Provided by Developer
f: Estimate by Feasibility Study
3-7-2013 ATTACHMENT B
CITY FEES
DEVELOPER INSTALLED IMPROVEMENTS
PROJECT NAME:Main Street Shoppes NUMBER OF REU's:1
APPLICANT:MFC Properties CorporationASSESSED AREA (ac.):1.24
BUDGETPRIVATEPUBLICESCROWFEE
ITEMNECESSARY IMPROVEMENTSCOSTNOTEIMP. (W)IMP. (X)A MOUNT (Y)AMOUNT (Z)
1PLANNING/REVIEW
A. Plat Review Fee$1,500b $1,500
B. Planner Review Fee$1,500b $1,500
2ADMINISTRATION
A. Legal $1,000a $1,000
B. Administration Fee 3% of const.b $6,060
C. Publications $1,000b $1,000
3ENGINEERING
A. Plan/Plat/Grading Review $5,000b $5,000
B. Construction Services $5,000b $5,000
C. Construction Staking$0b $0
D. City Engineering $5,000b $5,000
4DEVELOPMENT FEES
A. Park Dedication Fee $2175/acred $2,697
B. Park Dedication Credit
C. Sealcoating Fee$0.30/SFb
D. Aerial Photo Fee90/unitb $90
5BOULEVARD TREE PLANTING$465/treeb
6DEVLOPMENT SECURITIES
A. Tree Preservation 95/unitb $0
B. Street Lighting - installation$2,500a $0
C. Street Lighting - operation$265 $0
D. Traffic Signing $500a $0
E. Street, Storm Sewer, Pond Maint.b $1,000
SUBTOTAL:$0$0$27,060$2,787
Grading Only Escrow Credit $0$0
TOTALS:$27,060$2,787
SECURITY AMOUNTS TO BE POSTED Att. A Att. B Total
W = PRIVATE IMPROVEMENT COSTS X 0.35 (LETTER OF CRE DIT)$70,000$0$70,000
X = PUBLIC IMPROVEMENT COSTS X 1.5 (LETTER OF CREDI T)$0$0$0
Y = CITY ESCROW COSTS X 1.0 (CASH ESCROW)$0$27,060$27,060
Z = CITY FEES X 1.0 (CASH FEE)$6,050$2,787$8,837
NOTE:a: Cost by City policy
b: Estimated Cost or Budget by City
c: Previously Assessed
d: Cash Requirement per Agreement with Park Board
e: Provided by Developer
f: Estimate by Feasibility Study