HomeMy WebLinkAboutComprehensive Annual Financial Report 12/31/2018
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
DECEMBER 31, 2018
Prepared By: Finance Department
Sarah Cotton, Director of Finance
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CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Letter of Transmittal 3
Certificate of Achievement for Excellence in Financial Reporting9
Organization Chart 10
Principal City Officials 11
Independent Auditor's Report 15
Management's Discussion and Analysis 19
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 33
Statement of Activities Statement 2 34
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 36
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position Statement 4 39
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 5 40
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balance of Governmental Funds to the Statement of Activities Statement 6 42
Statement of Net Position - Proprietary Funds Statement 7 43
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 8 44
Statement of Cash Flows - Proprietary Funds Statement 9 45
Statement of Net Position - Fiduciary Funds Statement 10 46
Notes to Financial Statements 47
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 11 88
Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 12 94
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund Statement 13 95
Schedule of Pension Contributions -
General Employees Retirement Fund Statement 14 96
INTRODUCTORY SECTION
FINANCIAL SECTION
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Schedule of Proportionate Share of Net Pension Liability -
Public Employees Police and Fire Fund Statement 15 97
Schedule of Pension Contributions -
Public Employees Police and Fire Fund Statement 16 98
Schedule of Changes in the Net Pension Liability and Related Ratios -
Lino Lakes Public Safety Department - Fire Division Statement 17 99
Schedule of Contributions -
Lino Lakes Public Safety Department - Fire Division Statement 18 100
Notes to RSI 101
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 19 106
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 20 107
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 21 110
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 22 112
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 23 116
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 24 118
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 25 123
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 26 126
Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual Statement 27 129
Statement of Changes in Assets and Liabilities - Agency Funds Statement 28 130
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference No.
Financial Trends:
Net Position by Component Table 1 132
Changes in Net Position Table 2 134
Fund Balances, Governmental Funds Table 3 138
Changes in Fund Balances, Governmental Funds Table 4 140
Revenue Capacity:
Assessed and Actual Value of Taxable Property Table 5 142
Direct and Overlapping Property Tax Capacity Rates Table 6 143
Principal Property Taxpayers Table 7 145
Property Tax Levies and Collections Table 8 146
Debt Capacity:
Ratios of Outstanding Debt by Type Table 9 148
Ratios of Net General Bonded Debt Table 10 150
Direct and Overlapping Governmental Activities Debt Table 11 152
Legal Debt Margin Information Table 12 153
Demographic and Economic Information:
Demographic and Economic Statistics Table 13 154
Principal Employers Table 14 155
Operating Information:
Full-Time Equivalent City Government Employees By Function/Program Table 15 156
Operating Indicators by Function/Program Table 16 158
Capital Asset Statistics by Function/Program Table 17 160
Schedule of Long-Term Debt Exhibit 1 162
Schedule of Deferred Tax Levies Exhibit 2 164
Debt Service Payments to Maturity Exhibit 3 166
Insurance in Force Exhibit 4 170
Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 171
STATISTICAL SECTION (UNAUDITED)
OTHER INFORMATION (UNAUDITED)
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INTRODUCTORY SECTION
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600 Town Center Parkway, Lino Lakes, MN 55014
Phone: 651-982-2400 ∙ Fax: 651-982-2499
May 24, 2019
Honorable Mayor
Members of the City Council
Citizens of the City of Lino Lakes, Minnesota
Minnesota State law requires that cities over 2,500 population publish within six months of the close of
each fiscal year a complete set of financial statements presented in conformity with generally accepted
accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a
firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that
requirement, we hereby issue the comprehensive annual financial report of the City of Lino Lakes,
Minnesota for the fiscal year ended December 31, 2018.
This report consists of management’s representations concerning the finances of the City of Lino Lakes.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City of Lino Lakes has established a comprehensive internal control framework that is
designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the City of Lino Lakes’ financial statements in conformity with
GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute assurance
that the financial statements will be free from material misstatement. As management, we assert that, to
the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City of Lino Lakes’ financial statements have been audited by Redpath and Company, Ltd., a firm of
licensed certified public accountants. The goal of the independent audit was to provide reasonable
assurance that the financial statements of the City for the fiscal year ended December 31, 2018, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements; assessing the accounting principles used and
significant estimates made by management; and evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering
an unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2018,
are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first
component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino
Lakes’ MD&A can be found immediately following the report of the independent auditors.
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Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the
County of Anoka. It covers an area of 33 square miles and has a population of approximately 21,700. The
population has more than doubled from the 1990 census figure of 8,807 and has grown by 29.2% since
2000. Within the City’s borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to
St. Paul and Minneapolis is provided by I-35W and I-35E.
The City Charter, as amended, establishes a mayor-council form of government and grants the city
council full policy-making and legislative authority to the mayor and four council members. The City
council is responsible, among other things, for passing ordinances, adopting the budget, appointing
committees, and hiring a City administrator. The City administrator has the responsibility of carrying out
the policies and ordinances of the City council, for overseeing the day-to-day operation of the city. The
City council is elected at-large on a non-partisan basis, with council members serving four-year terms and
the mayor serving a two-year term. Elections are held every two years with two council seats and the
mayor being up for election each election cycle.
The City provides a full range of municipal services. These services include: general government, public
safety (police, fire and building inspection), public services (streets, fleet, parks and recreation),
conservation of natural resources (environmental and solid waste abatement), community development,
public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two
enterprise funds, the water and sewer funds.
The annual budget is the foundation for the City of Lino Lakes’ financial planning and control. All
divisions are required to submit appropriations requests to the City administrator for review and
consolidation into a proposed budget. The City administrator is responsible for submitting the proposed
annual budget to the City Council in August of each year. The city council is required to hold a public
hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than
December 28. The budget amounts cannot increase beyond the estimated receipts except to the extent that
actual receipts exceed the estimate. Division directors may make transfers of appropriations within a
department, but transfers of appropriations between departments require council approval. Budget-to-
actual comparisons for the general fund and the recreation program fund, the only funds for which an
annual budget has been adopted, are provided in Statements 11 and 27, respectively.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the City of Lino Lakes operates.
Local economy. The economic development effort established by the City Council in 1993 increased the
commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of
three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the
Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and
distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007
the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive
interchange, was developing at a rapid pace. Super Target and Kohl’s anchor the shopping center
quadrant, while Apollo Business Park brought approximately 1,000 new employees to the area.
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Factors Affecting Financial Condition (Continued)
In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast
quadrant of I-35W and Lake Drive. Called Legacy at Woods Edge, this mixed-use development is
intended to include diverse opportunities for housing, retail and office uses. To date, the development
includes the Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of
Lakes YMCA, a 60-unit workforce housing project, 13,000 square feet of leasable commercial space, an
assisted living facility, and a 112-unit townhome development. The Civic Complex and YMCA provide a
civic and community focus as part of the vision for Town Center. A workforce family housing and
assisted living facility provide diversity in housing to underserved populations within the City.
In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and
completion of public improvements in Legacy at Woods Edge to accommodate planned development and
completed the improvements by 2008. However, it became evident at the end of 2007 that development
was stalling. The recession has had negative impacts on the Legacy development. Both the master
developer and lender defaulted, sending the remaining 22 acres intended for townhomes and commercial
uses into tax forfeit. Development conditions have begun to improve relative to the Legacy property.
During 2013, the assisted living facility purchased an adjoining parcel to expand its current operation.
The 36-room addition was completed in 2014. In addition, the State Legislature approved City-initiated
special legislation which has allowed the City to acquire the tax forfeited property from the State at no
cost except for an administrative fee payable to Anoka County if future sale revenues exceed the value of
the special assessments on the property. The acquisition of this property will allow the City greater
control in marketing the property to potential developers. The solid foundation that was built and strong
interest by developers prior to the recession ensures that better economic times will once again bring the
interest in residential and commercial growth needed to complete the vision. Street, streetscape, water,
sewer, and storm water improvements, as well as a small community park, have been installed within the
development area and assessed to the development. The $11.1 million I-35W Interchange improvement
was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City
has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota
State Aid funds to finance its portion of the project cost.
In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed
to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the
interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through
Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is
being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation
Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011.
The city prepaid the Note with Anoka County in 2017 using MSA funds.
With both major interstate interchanges complete, the City is preparing for development of several
hundred acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension
of Otter Lake Road North east of I-35E and the extension of 21st Avenue west of I-35E, which will leave
the City well poised to accommodate significant future industrial, commercial and residential
development. A McDonald’s restaurant was completed in 2014 at CSAH 14 and Otter Lake Road. In
addition, Metropolitan Transit has constructed a 300 space Park and Ride at I35-E at CSAH 14 and 21st
Avenue.
Development activities continued to increase in 2018. Residential permit activity for new home
construction surpassed 100 for the third consecutive year with 162 issued. This trend is expected to
continue as national builder, Lennar Homes, began construction on the first phase of an 871 lot
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development. Overall construction activity exceeded $52 million in new valuation. Commercial
development continues to show signs of recovery as new construction activities and development
planning emerges. The City approved a concept plan for a 200-unit senior living community, which is
planned for construction in 2019.
Long-term financial planning. The City’s currently adopted five-year financial plan identifies street and
utility improvements totaling $31,853,679 over the five-year period. These improvements are anticipated
to be funded through a number of funding sources, including special assessments, municipal state aid road
funds, the area and unit trunk fund, the stormwater management fund and voter-approved tax levies. The
five-year plan also includes funding projections for operations and operating impacts for the five-year
period. This plan is in the process of being revised to reflect the anticipated activity through the year
2023.
Relevant Financial Policies
The City uses a variety of financial policies to guide its fiscal actions and ensure fiscal stability.
Fund balance policy. The City had adopted a Fund Balance policy which identified the required
designated amounts in the Fund Balance of the General Fund at fiscal year-end and directed the transfer
of any excess revenues to other funds for specific purposes, as identified annually. For the year ended
December 31, 2011 and subsequent years, the City amended its Fund Balance policy to conform to the
requirements of GASB 54. The new policy targets the unassigned fund balance of the general fund in a
range of 40% to 50% of budgeted general fund expenditures and other financial uses. In addition, fund
balances are classified in compliance with GASB 54 according to the hierarchy of usable fund balance
resources. The unassigned general fund balance as of December 31, 2018 was $6,599,956 which is 62%
of general fund budgeted expenditures and other financing uses for the year.
Cash management policies and practices. The City’s policy is to invest all available moneys at
competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and
market risks while maintaining a competitive yield. Funds are invested in certificates of deposit, state and
local securities, and U.S. government agencies. Cash is pooled in one account to provide maximum
return. The City Council reviews the investment policy annually.
The City’s investment policy’s primary objective is safety of principal. Therefore, all deposits were either
insured by Federal depository insurance or were collateralized as required by State Statute. Due to the
weakened economy, a historically low interest rate environment has persisted over the last several years
and has had a dramatic impact on the city’s investment earnings. The average interest income yield on
investments for 2018 was 1.63%. Total investment income also includes positive or negative changes in
the fair value of investments. Changes in fair value of investments during the current year resulted in
unrealized losses of $172,593, or 0.37%, for a total investment yield of 1.26%. The changes in fair value
during the current year, however, do not necessarily represent trends that will continue; nor is it always
possible to realize such amounts, especially in the case of temporary changes in the fair value of
investments the City intends to hold to maturity. It is the City’s practice to purchase and hold investments
to maturity and, accordingly, changes in fair value over the term of the City’s investments are expected to
net to book value.
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Awards and Acknowledgements
The Government Finance Officers Association of the United States and Canada (GFOA) awards the
Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. The
City of Lino Lakes received this award for its comprehensive annual financial report for the year ended
December 31, 2017. This marks the twenty-third consecutive year the City has received this prestigious
award. A governmental unit must publish an easily readable and efficiently organized comprehensive
annual financial report, the contents of which conform to program requirements. This report must satisfy
both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2018 report
to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We
believe our current report continues to conform to the high standards of the Certificate program.
The timely preparation of this report could not have been accomplished without the dedicated services of
the Finance Department, auditors and other city staff. I want to express my appreciation to the Mayor and
City Council for their support for maintaining the highest standard of professionalism in the management
of the financial operation of the City.
Respectfully submitted,
Sarah R. Cotton
Director of Finance
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City of Lino Lakes Organizational Chart
City Council
City Administrator
Administration Finance Community
Development
Public Services Public Safety
City Clerk Accounting Planning Recreation Police Division
Human Resources Utility Billing
Economic
Development
Engineering
Environmental
Services
Government
Buildings
Public Works
Street / Fleet / Utility
Maintenance
Parks
Building Inspections
Fire Division
Senior Citizen
Services
Advisory Board &
Commissions
Network
Administration
Emergency
Management/
Administration
Public Information 10
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2018
Term Expires
Mayor: Jeff Reinert December 31, 2019
Councilmembers: Dale Stoesz December 31, 2021
Rob Rafferty December 31, 2021
Melissa Maher December 31, 2019
Michael Manthey December 31, 2019
City Administrator: Jeff Karlson Appointed
Directors:
Community Development Michael Grochala Appointed
Finance Sarah Cotton Appointed
Public Safety John Swenson Appointed
Public Services Richard DeGardner Appointed
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FINANCIAL SECTION
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55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Lino Lakes, Minnesota, as of and for the year ended December 31, 2018, and the related
notes to the financial statements, which collectively comprise the City of Lino Lakes,
Minnesota’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota,
as of December 31, 2018, and the respective changes in financial position, and, where
applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the budgetary comparison information, and the schedules
of OPEB and pension information, as listed in the table of contents, be presented to supplement
the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management’s
responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements. The
introductory section, combining and individual nonmajor fund financial statements and
schedules, statistical section and other information are presented for purposes of additional
analysis and are not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and schedules are the
responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information
has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional
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procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the combining and individual nonmajor fund financial statements and
schedules are fairly stated in all material respects in relation to the basic financial statements as a
whole.
The introductory section, the statistical section and other information have not been subjected to
the auditing procedures applied in the audit of the basic financial statements and, accordingly,
we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
May 24, 2019, on our consideration of the City of Lino Lakes, Minnesota’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to
describe the scope of our testing of internal control over financial reporting and compliance and
the results of that testing, and not to provide an opinion on the effectiveness of the City of Lino
Lakes, Minnesota’s internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the City of Lino Lakes, Minnesota’s internal control over financial reporting and
compliance.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 24, 2019
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MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the
City’s financial statements this narrative overview and analysis of the financial activities of
the City for the fiscal year ended December 31, 2018. We encourage readers to consider the
information presented here in conjunction with additional information that we have furnished
in our letter of transmittal, which can be found in the introductory section of this report.
Financial Highlights
The assets of the City exceeded its liabilities at the close of the most recent fiscal year by
$100,077,798 (net position). Of this amount, $32,148,347 (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 $6,784,185.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $33,255,201, an increase of $9,199,079. Of this amount, $9,824,255
is restricted by external constraints established by creditors, grantors, contributors, or by state
statutory provisions.
At the end of the current fiscal year, the general fund balance was $6,886,142. Unassigned
fund balance for the general fund was $6,599,956, or 62% of total general fund expenditures
and other financing uses.
Total outstanding debt increased by $4,476,595 during 2018. General Obligation Bonds and
certificates of indebtedness totaling $7,218,900 were issued, while regularly scheduled
principal payments were made during the year.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City’s basic
financial statements. The City’s basic financial statements comprise three components: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the
financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City’s finances, in a manner similar
to a private-sector business.
The Statement of Net Position presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net position. Over time, increases or
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Management’s Discussion and Analysis
decreases in net position may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but
unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of the
City include general government, public safety, public services, conservation of natural
resources and community development. The business-type activities of the City include a
water utility and sewer utility.
The government-wide financial statements are statements 1 and 2 of this report.
Fund Financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on
balances of spendable resources available at the end of the fiscal year. Such information may
be useful in evaluating a government’s near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-wide
financial statements. By doing so, readers may better understand the long-term impact of the
City's near term financial decisions. Both the governmental fund balance sheet and
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
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Management’s Discussion and Analysis
The City maintains six individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund statement of
revenues, expenditures and changes in fund balance for the following major funds:
General Fund
G.O. Improvement Note of 2009A – Debt Service Fund
G.O. Improvement Bonds of 2016B – Debt Service Fund
Area and Unit Charge – Capital Project Fund
MSA Construction – Capital Project Fund
2018 Street Reconstruction – Capital Project Fund
Data from the other governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these nonmajor governmental funds is provided in the form
of combining statements elsewhere in this report.
The City adopts an annual appropriated budget for its General Fund and its Program
Recreation special revenue fund. A budgetary comparison schedule has been provided for
those funds to demonstrate compliance with this budget.
The basic governmental fund financial statements are statements 3 through 6 of this report.
Proprietary funds. The City maintains two enterprise funds as a part of its proprietary fund
type. Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprise funds to
account for its water and sewer utilities.
The proprietary fund statements provide the same type of information as the government-
wide financial statements, only in more detail. The proprietary fund financial statements
provide separate information for the water and sewer funds, which are considered to be major
funds of the City. The basic proprietary fund financial statements are statements 7 through 9
of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held by the City as an
agent for individuals, private organizations, or other governments. Fiduciary funds are not
reflected by the government-wide financial statements because the resources of those funds
are not available to support the City’s own programs.
The basic fiduciary fund statements are Statements 10 and 28.
Notes to the financial statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government–wide and fund financial
statements. The notes to the financial statements can be found following Statement 10.
Other information. The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
21
Management’s Discussion and Analysis
information. Combining and individual fund statements and schedules are presented as
Statements 19 through 27.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $100,077,798 at the close of the most recent
fiscal year.
The largest portion of the City’s net position ($57,349,634, or 57%) reflects its net
investment in capital assets (e.g. land, buildings, equipment, and infrastructure) less any
related debt used to acquire those assets that is still outstanding. The City uses these capital
assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City’s investment in its capital assets is reported net of related debt,
it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Lino Lakes’ Net Position
2018 2017 2018 2017 2018 2017
Assets:
Current and other assets $41,949,582 $32,942,034 $16,003,964 $15,272,668 $57,953,546 $48,214,702
Capital assets 44,102,567 42,611,027 32,709,079 31,831,950 76,811,646 74,442,977
Total assets $86,052,149 $75,553,061 $48,713,043 $47,104,618 $134,765,192 $122,657,679
Deferred outflows of resources $4,305,683 $5,625,220 $61,906 $97,118 $4,367,589 $5,722,338
Liabilities:
Long-term liabilities outstanding $30,443,714 $27,257,669 $312,016 $413,334 $30,755,730 $27,671,003
Other liabilities 1,981,550 894,136 87,787 43,453 2,069,337 937,589
Total liabilities $32,425,264 $28,151,805 $399,803 $456,787 $32,825,067 $28,608,592
Deferred inflows of resources $6,134,676 $6,410,858 $95,240 $66,954 $6,229,916 $6,477,812
Net position:
Net investment in capital assets $24,640,555 $22,868,259 $32,709,079 $31,831,950 $57,349,634 $54,700,209
Restricted 10,579,817 11,730,147 - - 10,579,817 11,730,147
Unrestricted 16,577,520 12,017,212 15,570,827 14,846,045 32,148,347 26,863,257
Total net position $51,797,892 $46,615,618 $48,279,906 $46,677,995 $100,077,798 $93,293,613
Governmental Activities Business-Type Activities Totals
$10,579,817 of the City’s net position represents resources that are subject to external
restrictions on how they may be used. The remaining balance of unrestricted net position
($32,148,347) may be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
22
Management’s Discussion and Analysis
The City’s net position increased by $6,784,185 during 2018. Key elements of this increase
are as follows:
City of Lino Lakes’ Changes in Net Position
2018 2017 2018 2017 2018 2017
Revenues:
Program revenues:
Charges for services $2,602,483 $3,600,902 $2,971,301 $2,849,797 $5,573,784 $6,450,699
Operating grants and contributions 861,429 1,106,014 - - 861,429 1,106,014
Capital grants and contributions 5,187,023 4,141,383 1,242,032 836,029 6,429,055 4,977,412
General revenues:
General property taxes 9,767,468 9,441,819 - - 9,767,468 9,441,819
Tax increment 462,223 312,152 - - 462,223 312,152
Grants and contributions not
restricted to specific programs 59,508 181,712 - - 59,508 181,712
Unrestricted investment earnings 369,485 207,792 213,434 106,488 582,919 314,280
Gain on disposal of capital assets 17,318 38,022 - - 17,318 38,022
Total revenues 19,326,937 19,029,796 4,426,767 3,792,314 23,753,704 22,822,110
Expenses:
General government 2,345,386 2,395,633 - - 2,345,386 2,395,633
Public safety 4,749,394 5,166,538 - - 4,749,394 5,166,538
Public services 5,384,522 5,492,395 - - 5,384,522 5,492,395
Conservation of naturual resources 201,590 200,016 - - 201,590 200,016
Community development 576,794 459,455 - - 576,794 459,455
Interest and fees on long-term debt 414,607 518,897 - - 414,607 518,897
Water - - 1,332,755 1,245,249 1,332,755 1,245,249
Sewer - - 1,964,471 1,901,821 1,964,471 1,901,821
Total expenses 13,672,293 14,232,934 3,297,226 3,147,070 16,969,519 17,380,004
Increase in net position before transfers 5,654,644 4,796,862 1,129,541 645,244 6,784,185 5,442,106
Transfers (472,370) (308,694) 472,370 308,694 - -
Change in net position 5,182,274 4,488,168 1,601,911 953,938 6,784,185 5,442,106
Net position - January 1, as previously reported 46,615,618 42,819,930 46,677,995 45,724,057 93,293,613 88,543,987
Prior period adjustment - (692,480) - - (692,480)
Net position - January 1, as restated 46,615,618 42,127,450 46,677,995 45,724,057 93,293,613 87,851,507
Net position - December 31 $51,797,892 $46,615,618 $48,279,906 $46,677,995 $100,077,798 $93,293,613
Business-Type Activities TotalsGovernmental Activities
Governmental Activities
Governmental activities increased the City’s net position by $5,182,274 during 2018. The
cumulative effect of decreased charges for services, increased capital grants and
contributions, and a decrease in public safety expenses account for the increase in 2018. This
increase was partially offset by transfers out to business-type activities of $472,370.
23
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
Expenses
24
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities increased the City’s net position by $1,601,911 during 2018. The
increase was due to contributions of capital assets from private sources, as well as the City’s
governmental activities, in the amount of $1,956,547, offset by transfers out of $242,145.
Below are specific graphs which provide comparisons of the business-type activities
revenues and expenses:
25
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City’s financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $33,255,201. Approximately 30% of this total amount ($9,824,255)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $388,184 of fund balance is not in a spendable
form, $182,613 has been committed, $19,195,652 has been assigned, and $3,664,497 is
unassigned.
The fund balance of the General Fund increased by $69,217 in 2018, while the City
anticipated the use of $32,288 of the general fund balance. Overall, signs of continued
economic recovery are being seen with increased building and development activities taking
place which resulted in increased license and permit revenues for the year. The City also saw
a significant increase in the number of roofing and siding permits issued during the year due
to a storm causing significant damage throughout the City in June of 2017. Finally, reduced
expenditures, primarily for personal services through vacant positions, and professional and
contractual services helped to increase the year end fund balance.
The G.O. Improvement Note of 2009A fund was established to service the debt issued by
Anoka County as the City’s financial commitment for the I-35E interchange project. The
City prepaid the remaining balance of the note in 2017 using MSA funds. As deferred
special assessments are received, MSA funds will be replenished. The fund began and ended
the year with a fund balance of $0, and transferred $647,371 to the MSA Construction fund.
The G.O. Improvement Bonds of 2016B fund decreased by $217,643. The 2016B series
bonds were issued to refund the 2005A series bonds and fund the Legacy at Woods Edge
improvements. Future tax increment and land sale proceeds are expected to cover debt
service and the interfund loan payable.
The Area and Unit Charge fund has a total fund balance of $8,156,800, all of which is
assigned for financing capital improvements. The fund balance during the current year
increased by $500,645 due to the collection of prepaid special assessments and trunk utility
development fees.
The MSA Construction fund has a total fund balance of $3,919,729, all of which is assigned
to capital improvements for City MSA designated roadways. The fund balance during the
current year increased by $3,076,355 primarily due to an advance of funds for MSA street
projects completed in prior years.
26
Management’s Discussion and Analysis
The 2018 Street Reconstruction fund has a total fund balance of $5,300,079. The fund
balance increased during the year by $5,497,747 due to proceeds from bond issuance
exceeding the expenditures incurred related to the West Shadow Lake Drive and LaMotte
Area Street Reconstruction project.
The combined fund balance of other governmental funds increased by $272,758 during 2018.
Primary reasons for the increase include the closeout of the debt service fund associated with
the 2006E Series G.O. CIP Refunding Bonds, the transfer of $500,000 from the General
Fund for park and trail improvements, and the closeout of the Birch Street turn lane and
utility project, offset by debt service expenditures exceeding revenues.
Proprietary funds. The City’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
The water fund has total net position at year-end of $23,481,908, of which $6,008,956 is
unrestricted. The increase in net position of $860,344 was primarily due to capital
contributions, partially offset by a net operating loss.
The sewer fund has total net position at year-end of $24,797,998 of which $9,561,871 is
unrestricted. The increase in net position of $741,567 was primarily due to capital
contributions, partially offset by a net operating loss and a transfer to the 2018 Street
Reconstruction fund.
Budgetary Highlights
General Fund
The General Fund budget was amended during the year to reflect increased revenues relative
to building and licensing activities and state aid and decreased revenues related to a grant
funded police officer and fines and forfeitures. Changes to expenditure areas include
decreased personal services due to personnel vacancies, changes to professional and
contracted services, variances in supplies, investment in the Civic Complex air conditioning
units 2 & 3, and the final transfer for the park land loan and the comprehensive plan update
budgeted over 3 years (2016-2018). The final amended expenditure budget was $315,569
less than the original adopted budget.
Revenues were $96,898 over budget for the year. General property tax, special assessments,
fines and forfeits, and miscellaneous refunds and reimbursements were $71,231 under
budget; however, this variance was more than offset by greater than anticipated license and
permit revenues, intergovernmental revenue, charges for services, and investment earnings.
Expenditures came in under budget by $5,219 due to many factors including lower than
expected personal service costs from vacant positions and favorable professional and
contracted service activity. Fuel costs were much higher than anticipated due to an increase
in the average fuel price, as well as an increase in the number of snow events. Professional
27
Management’s Discussion and Analysis
and contracted service activity in parks was much higher than anticipated due to costs
associated with council initiated projects that were not originally planned for in 2018.
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-
type activities as of December 31, 2018, amounted to $76,811,646 (net of accumulated
depreciation), an increase of $2,368,669 from the prior year. This investment in capital
assets includes land, wetland credits, construction in progress, buildings, equipment,
vehicles, and infrastructure. The City completed the Birch Street turn lane and utility
improvements, Phase II of the upgrades to the Civic Complex air conditioning system, the
Council Chambers upgrade, and Century Farms North trail improvements. The City has
continued to work to complete the land preparation activities for NorthPointe Park in 2018.
In addition, the City started trunk watermain and trail improvements on Lake Drive, trunk
utility improvements at 49&J, drainage improvements in the NE Area of the City, Water
Tower #3, Phase II of the controls automation upgrade at the Civic Complex, Woods Edge
Park improvements, and street and utility improvements in the West Shadow Lake Drive and
LaMotte areas. Developer lead infrastructure improvements at various stages of completion
include NorthPointe 4th, 5th, 6th and 7th Additions, Saddle Club 3rdAddition, Century Farms
6th and 7th Additions, St Clair Estates, and Chavez Estates.
City of Lino Lakes’ Capital Assets
(Net of Depreciation)
2018 2017 2018 2017 2018 2017
Land $3,320,059 $3,320,059 $ - $ - $3,320,059 $3,320,059
Wetland credits 167,224 162,372 - - 167,224 162,372
Construction in progress 3,595,457 2,482,238 1,623,032 1,507,153 5,218,489 3,989,391
Buildings 6,375,432 6,376,011 - - 6,375,432 6,376,011
Office equipment and furniture 270,711 236,777 - - 270,711 236,777
Vehicles 1,945,189 2,016,355 - - 1,945,189 2,016,355
Machinery and shop equipment 1,126,246 1,133,624 161,538 167,440 1,287,784 1,301,064
Other equipment 330,618 267,096 - - 330,618 267,096
Infrastructure 26,971,631 26,616,495 30,924,509 30,157,357 57,896,140 56,773,852
Total $44,102,567 $42,611,027 $32,709,079 $31,831,950 $76,811,646 $74,442,977
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 5 to the financial
statements.
28
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $24,452,838. Of this amount, $19,848,900 comprises tax supported debt and
$3,890,000 is special assessment debt. All outstanding debt carries the general obligation
backing for which the City is liable in the event of default by the property owners subject to
the specific taxes, special assessments or revenues pledged to the retirement of the debt. In
addition, the City has a note payable to the City of Circle Pines for its share of the cost of
capital equipment to be used by the North Metro Telecommunications Commission in the
operation of a cable communications system in the amount of $202,125.
City of Lino Lakes’ Outstanding Debt
2018 2017 2018 2017 2018 2017
General obligation bonds $20,051,025 $14,947,725 $ - $ - $20,051,025 $14,947,725
G.O. special assessment bonds 3,890,000 4,905,000 - - 3,890,000 4,905,000
Bond premium 511,813 123,518 - - 511,813 123,518
Total $24,452,838 $19,976,243 $0 $0 $24,452,838 $19,976,243
Business-Type Activities TotalsGovernmental Activities
The City of Lino Lakes’ total bonded debt increased by $4,476,595 during the current fiscal
year. The key factors for the change include the issuance of $303,900 of Certificates of
Indebtedness to finance capital equipment purchases, $4,950,000 of General Obligation
Bonds to finance the West Shadow Lake Drive and LaMotte Area street and utility
improvements, and $1,965,000 to finance the Lake Drive water utility improvements.
Principal retired in the amount of $3,130,600 during the year.
Additional information on the City’s long-term debt can be found in Note 6.
Requests for information. This financial report is designed to provide a general overview
of the City’s finances for all those with an interest in the government’s finances. Questions
concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town
Center Parkway, Lino Lakes, Minnesota, 55014.
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30
BASIC FINANCIAL STATEMENTS
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32
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2018
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $34,714,073 $14,999,488 $49,713,561
Accrued interest receivable 124,736 - 124,736
Due from other governmental units 77,256 1,982 79,238
Accounts receivable - net 61,051 366,298 427,349
Prepaid items 288,184 37,188 325,372
Internal balances (559,110) 559,110 -
Inventory - 39,898 39,898
Taxes receivable 198,715 - 198,715
Special assessments receivable 6,654,764 - 6,654,764
Long-term note receivable 225,000 - 225,000
Net pension asset 164,913 - 164,913
Capital assets - nondepreciable 7,082,740 1,623,032 8,705,772
Capital assets - net of accumulated depreciation 37,019,827 31,086,047 68,105,874
Total assets 86,052,149 48,713,043 134,765,192
Deferred outflows of resources related to pensions 4,305,683 61,906 4,367,589
Liabilities:
Accounts payable and other current liabilities 1,834,176 87,787 1,921,963
Accrued interest payable 147,374 - 147,374
Compensated absences payable:
Due within one year 497,161 28,292 525,453
Due in more than one year 316,711 4,586 321,297
Other post employment benefits 748,050 8,594 756,644
Bonds and notes payable:
Due within one year 2,815,075 - 2,815,075
Due in more than one year 21,637,763 - 21,637,763
Net pension liability:
Due in more than one year 4,428,954 270,544 4,699,498
Total liabilities 32,425,264 399,803 32,825,067
Deferred inflows of resources:
Pension related 6,087,516 95,240 6,182,756
OPEB related 47,160 - 47,160
Total deferred inflows of resources 6,134,676 95,240 6,229,916
Net position:
Net investment in capital assets 24,640,555 32,709,079 57,349,634
Restricted for:
Debt service 8,954,265 - 8,954,265
Tax increment purposes 557,211 - 557,211
Park improvements 227,540 - 227,540
Economic development 225,000 - 225,000
Environmental improvements - nonexpendable 100,000 - 100,000
Environmental improvements - expendable 33,853 - 33,853
Other purposes 481,948 - 481,948
Unrestricted 16,577,520 15,570,827 32,148,347
Total net position $51,797,892 $48,279,906 $100,077,798
Primary Government
The accompanying notes are an integral part of these financial statements.
33
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2018
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $2,345,386 $562,816
Public safety 4,749,394 1,591,658
Public services 5,384,522 448,009
Conservation of natural resources 201,590 -
Community development 576,794 -
Interest and fees on long-term debt 414,607 -
Total governmental activities 13,672,293 2,602,483
Business-type activities:
Water 1,332,755 1,217,589
Sewer 1,964,471 1,753,712
Total business-type activities 3,297,226 2,971,301
Total primary government $16,969,519 $5,573,784
The accompanying notes are an integral part of these financial statements.
34
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities Total
$16,688 $ - ($1,765,882)$ - ($1,765,882)
462,856 29,261 (2,665,619) - (2,665,619)
282,392 5,157,762 503,641 - 503,641
99,493 - (102,097) - (102,097)
- - (576,794) - (576,794)
- - (414,607) - (414,607)
861,429 5,187,023 (5,021,358)0 (5,021,358)
- 487,444 - 372,278 372,278
- 754,588 - 543,829 543,829
0 1,242,032 0 916,107 916,107
$861,429 $6,429,055 (5,021,358)916,107 (4,105,251)
General revenues:
General property taxes 9,767,468 - 9,767,468
Tax increment 462,223 - 462,223
Grants and contributions not
restricted to specific programs 59,508 - 59,508
Unrestricted investment earnings 369,485 213,434 582,919
Gain on disposal of capital assets 17,318 - 17,318
Transfers (472,370)472,370 -
Total general revenues and transfers 10,203,632 685,804 10,889,436
Change in net position 5,182,274 1,601,911 6,784,185
Net position - January 1 46,615,618 46,677,995 93,293,613
Net position - December 31 $51,797,892 $48,279,906 $100,077,798
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
35
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2018
333 G.O. 342 G.O.
Improvement Improvement
General Fund Note of 2009A Bonds of 2016B
Assets
Cash and investments $6,669,584 $ - $726,988
Accrued interest receivable 124,736 - -
Due from other governmental units 77,256 - -
Accounts receivable - net 30,894 - -
Prepaid items 286,186 - -
Advances to other funds - - -
Taxes receivable:
Due from county 96,116 - -
Delinquent 69,625 - -
Special assessments receivable:
Due from county - 1,418 -
Delinquent - - -
Deferred 106 2,100,886 2,994,379
Interfund loan receivable - - -
Long-term note receivable - - -
Total assets $7,354,503 $2,102,304 $3,721,367
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $218,936 $ - $450
Salaries payable 132,239 - -
Due to other governmental units 47,455 - -
Advances from other funds - 1,418 -
Contracts payable - - -
Interfund loan payable - - 2,876,643
Total liabilities 398,630 1,418 2,877,093
Deferred inflows of resources:
Unavailable revenue 69,731 2,100,886 2,994,379
Fund balance:
Nonspendable 286,186 - -
Restricted - - -
Committed - - -
Assigned - - -
Unassigned 6,599,956 - (2,150,105)
Total fund balance 6,886,142 0 (2,150,105)
Total liabilities, deferred inflows of $7,354,503 $2,102,304 $3,721,367
resources, and fund balance
The accompanying notes are an integral part of these financial statements.
36
Statement 3
485 Other Total
406 Area and 420 MSA 2018 Street Governmental Governmental
Unit Charge Construction Reconstruction Funds Funds
$8,164,676 $3,921,001 $6,400,371 $8,831,453 $34,714,073
- - - - 124,736
- - - - 77,256
24,575 - - 5,582 61,051
- - - 1,998 288,184
- 1,418 - 1,824 3,242
- - - 19,022 115,138
- - - 13,952 83,577
8,785 - - 32,846 43,049
27,768 - - 14,614 42,382
969,375 - - 504,587 6,569,333
- - - 3,095,946 3,095,946
- - - 225,000 225,000
$9,195,179 $3,922,419 $6,400,371 $12,746,824 $45,442,967
$31,538 $2,690 $83,410 $165,850 $502,874
- - - - 132,239
- - 46 44,933 92,434
- - - 1,824 3,242
9,698 - 1,016,836 80,095 1,106,629
- - - 778,413 3,655,056
41,236 2,690 1,100,292 1,071,115 5,492,474
997,143 - - 533,153 6,695,292
- - - 101,998 388,184
- - 4,788,701 5,035,554 9,824,255
- - - 182,613 182,613
8,156,800 3,919,729 511,378 6,607,745 19,195,652
- - - (785,354)3,664,497
8,156,800 3,919,729 5,300,079 11,142,556 33,255,201
$9,195,179 $3,922,419 $6,400,371 $12,746,824 $45,442,967
The accompanying notes are an integral part of these financial statements.
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38
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2018
Fund balance - total governmental funds (Statement 3) $33,255,201
Net position reported for governmental activities in the Statement of Net Position is
different because:
Certain assets used in governmental activities are not current financial resources and,
therefore, are not reported in the funds.
Capital assets 44,102,567
Net pension asset 164,913
Other long-term assets are not available to pay for current-period expenditures and
therefore, are reported as unavailable revenue in the funds:
Delinquent taxes receivable 83,577
Delinquent special assessments receivable 42,382
Deferred special assessments receivable 6,569,333
Long-term liabilities are not due and payable in the current period and, therefore, are not
reported in the funds. Long-term liabilities at year end consist of:
Bonds and notes payable (23,941,025)
Unamortized bond premiums (527,800)
Unamortized bond discounts 15,987
Accrued interest payable (147,374)
Compensated absences payable (813,872)
Other post employment benefits (748,050)
Net pension liability (4,428,954)
Deferred outflows and inflows of resources related to pensions and OPEB are associated
with long-term liabilities that are not due and payable in the current period, and therefore,
are not reported in the funds. Balances at year end are:
Deferred outflows of resources 4,305,683
Deferred inflows of resources (6,134,676)
Net position of governmental activities (Statement 1)$51,797,892
39
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2018
333 G.O.342 G.O.
Improvement Improvement
General Fund Note of 2009A Bonds of 2016B
Revenues:
General property taxes $8,146,307 $ - $ -
Tax increment - - -
Licenses and permits 1,260,046 - -
Intergovernmental 651,993 - -
Special assessments 1,777 644,846 -
Charges for services 317,122 - -
Fines and forfeits 114,991 - -
Investment earnings 75,880 2,525 6,445
Miscellaneous 201,956 - -
Total revenues 10,770,072 647,371 6,445
Expenditures:
Current:
General government 1,927,378 - -
Public safety 4,536,585 - -
Public services 2,176,523 - -
Conservation of natural resources 199,026 - -
Community development 451,919 - -
Capital outlay:
General government 54,010 - -
Public safety 45,049 - -
Public services 16,853 - -
Debt service:
Principal - - 480,000
Interest and fiscal charges - - 22,225
Total expenditures 9,407,343 0 502,225
Revenues over (under) expenditures 1,362,729 647,371 (495,780)
Other financing sources (uses):
Transfers in - - 278,137
Transfers out (1,293,512)(647,371) -
Issuance of debt - - -
Bond premium - - -
Proceeds from sale of capital assets - - -
Total other financing sources (uses)(1,293,512)(647,371)278,137
Net change in fund balance 69,217 0 (217,643)
Fund balance - January 1 6,816,925 - (1,932,462)
Fund balance - December 31 $6,886,142 $0 ($2,150,105)
The accompanying notes are an integral part of these financial statements.
40
Statement 5
485 Other Total
406 Area and 420 MSA 2018 Street Governmental Governmental
Unit Charge Construction Reconstruction Funds Funds
$ - $ - $ - $1,607,231 $9,753,538
- - - 462,223 462,223
- - - - 1,260,046
- 2,801,307 - - 3,453,300
536,180 - - 823,167 2,005,970
264,957 - - 421,817 1,003,896
- - - 22,949 137,940
114,617 33,143 1,219 135,656 369,485
- - - 121,423 323,379
915,754 2,834,450 1,219 3,594,466 18,769,777
- - - 21,531 1,948,909
- - - 39,372 4,575,957
42,467 2,690 - 926,378 3,148,058
- - - - 199,026
- - - 120,991 572,910
- - - 189,798 243,808
- - - 182,479 227,528
327,393 - 2,006,051 647,575 2,997,872
- - - 2,650,600 3,130,600
- - - 415,434 437,659
369,860 2,690 2,006,051 5,194,158 17,482,327
545,894 2,831,760 (2,004,832) (1,599,692) 1,287,450
38,000 647,371 510,159 2,792,773 4,266,440
(407,022) (402,776) - (1,273,614) (4,024,295)
295,000 - 6,620,000 303,900 7,218,900
28,773 - 372,420 - 401,193
- - - 49,391 49,391
(45,249) 244,595 7,502,579 1,872,450 7,911,629
500,645 3,076,355 5,497,747 272,758 9,199,079
7,656,155 843,374 (197,668) 10,869,798 24,056,122
$8,156,800 $3,919,729 $5,300,079 $11,142,556 $33,255,201
The accompanying notes are an integral part of these financial statements.
41
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 6
EXPENDITURES AND CHANGES IN FUND BALANCE OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2018
Net change in fund balance - total governmental funds (Statement 5)$9,199,079
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement
of Activities the cost of those assets is allocated over their estimated useful lives and
reported as depreciation expense:
Capital outlay 3,469,208
Depreciation (2,940,774)
Various other transactions involving capital assets increase (decrease) net position on
the Statement of Activities, but are not reported in governmental funds because they
do not provide (or use) current financial resources:
Contributions of infrastructure from private sources 1,690,433
Contributions of infrastructure to business-type activities (714,515)
Miscellaneous other differences related to capital assets (12,812)
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds:
Change in delinquent taxes receivable 13,930
Change in delinquent special assessments receivable 24,102
Change in deferred special assessments receivable (1,364,050)
The issuance of long-term debt provides current financial resources to governmental
funds, while repayment of the principal of long-term debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net position. Also, governmental funds report the effects of bond premiums
and discounts when the debt is first issued, whereas amounts are deferred and amortized
over the life of the debt in the Statement of Activities.
Bonds and notes issued (7,218,900)
Bond premium received (401,193)
Repayment of principal 3,130,600
Amortization of bond premiums and discounts 12,898
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in governmental
funds. Expenses reported in the Statement of Activities include the effects of the
changes in these expense accruals as follows:
Change in accrued interest payable 10,154
Change in compensated absences payable (44,964)
Change other post employment benefits liability and related deferred inflows of resources (6,066)
Pension expense in governmental funds is measured by current year employee contributions.
Pension expense in the Statement of Activities is measured by the change in the net pension
liability and related deferred inflows and outflows of resources. This is the amount by which
pension expense ($353,072) differed from pension contributions ($688,216).335,144
Change in net position of governmental activities (Statement 2)$5,182,274
The accompanying notes are an integral part of these financial statements.
42
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 7
PROPRIETARY FUNDS
December 31, 2018
601 Water 602 Sewer Total
Assets:
Current assets:
Cash and cash equivalents $6,022,044 $8,977,444 $14,999,488
Due from other governmental units - 1,982 1,982
Accounts receivable - net 150,405 215,893 366,298
Prepaid items 13,909 23,279 37,188
Inventory 39,898 - 39,898
Total current assets 6,226,256 9,218,598 15,444,854
Noncurrent assets:
Interfund loan receivable - 559,110 559,110
Capital assets:
Construction in progress 818,359 804,673 1,623,032
Equipment 154,909 333,754 488,663
Water and sewer systems 25,796,237 24,042,195 49,838,432
Total capital assets 26,769,505 25,180,622 51,950,127
Less: Allowance for depreciation (9,296,553) (9,944,495) (19,241,048)
Net capital assets 17,472,952 15,236,127 32,709,079
Total assets 23,699,208 25,013,835 48,713,043
Deferred outflows of resources related to pensions 30,953 30,953 61,906
Total assets and deferred outflows 23,730,161 25,044,788 48,774,949
Liabilities:
Current liabilities:
Accounts payable 28,110 33,294 61,404
Salaries payable 4,952 4,952 9,904
Due to other governments 8,453 2,952 11,405
Other accrued liabilities 3,110 1,964 5,074
Compensated absences payable - current portion 14,146 14,146 28,292
Total current liabilities 58,771 57,308 116,079
Noncurrent liabilities:
Compensated absences payable - noncurrent portion 2,293 2,293 4,586
Other post employment benefits 4,297 4,297 8,594
Net pension liability 135,272 135,272 270,544
Total noncurrent liabilities 141,862 141,862 283,724
Total liabilities 200,633 199,170 399,803
Deferred inflows of resources related to pensions 47,620 47,620 95,240
Total liabilities and deferred inflows 248,253 246,790 495,043
Net position:
Investment in capital assets 17,472,952 15,236,127 32,709,079
Unrestricted 6,008,956 9,561,871 15,570,827
Total net position $23,481,908 $24,797,998 $48,279,906
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
43
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2018
601 Water 602 Sewer Totals
Operating revenues:
Charges for services $1,122,136 $1,721,958 $2,844,094
Hook-up charges 40,030 31,754 71,784
Water meter sales 50,518 - 50,518
Other operating revenue 4,905 - 4,905
Total operating revenues 1,217,589 1,753,712 2,971,301
Operating expenses:
Personal services 270,608 275,907 546,515
Materials and supplies 205,025 35,821 240,846
Contractual services 140,187 132,250 272,437
MCES sewer charges - 949,776 949,776
Depreciation 597,571 495,856 1,093,427
Utilities 105,453 45,775 151,228
Other 13,911 29,086 42,997
Total operating expenses 1,332,755 1,964,471 3,297,226
Operating income (loss)(115,166)(210,759)(325,925)
Nonoperating revenues:
Investment earnings 82,783 130,651 213,434
Income (loss) before contributions and transfers (32,383)(80,108)(112,491)
Contributions and transfers:
Capital contributions from private sources 487,444 754,588 1,242,032
Capital contributions from governmental activities 405,283 309,232 714,515
Transfer out - (242,145)(242,145)
Total contributions and transfers 892,727 821,675 1,714,402
Change in net position 860,344 741,567 1,601,911
Net position - January 1 22,621,564 24,056,431 46,677,995
Net position - December 31 $23,481,908 $24,797,998 $48,279,906
Capital
Contributions Transfers - Net
Amounts reported above $1,956,547 ($242,145)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (714,515)714,515
Amounts reported on the statement of activities $1,242,032 $472,370
CHANGES IN FUND NET POSITION
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
44
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS Statement 9
PROPRIETARY FUNDS
For The Year Ended December 31, 2018
601 Water 602 Sewer Totals
Cash flows from operating activities:
Receipts from customers and users $1,224,192 $1,757,400 $2,981,592
Payment to suppliers (461,280) (1,171,306) (1,632,586)
Payment to employees (289,518) (294,817) (584,335)
Net cash flows provided by operating activities 473,394 291,277 764,671
Cash flows from noncapital financing activities:
Receipts from interfund loans - 355,839 355,839
Transfers out - (242,145) (242,145)
Net cash flows provided by
noncapital financing activities - 113,694 113,694
Cash flows from capital and related financing activities:
Acquisition of capital assets (11,479)(2,530) (14,009)
Cash flows from investing activities:
Investment earnings 82,783 130,651 213,434
Net increase in cash and cash equivalents 544,698 533,092 1,077,790
Cash and cash equivalents - January 1 5,477,346 8,444,352 13,921,698
Cash and cash equivalents - December 31 $6,022,044 $8,977,444 $14,999,488
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss)($115,166) ($210,759) ($325,925)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation 597,571 495,856 1,093,427
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units - (368)(368)
Decrease (increase) in accounts receivable - net 6,603 4,056 10,659
Decrease (increase) in prepaid items (4,654)(5,452) (10,106)
Decrease (increase) in inventory (9,530) - (9,530)
Decrease (increase) in deferred outflows of resources 17,606 17,606 35,212
Increase (decrease) in payables 17,659 27,458 45,117
Increase (decrease) in other accrued liabilities (179)(604)(783)
Increase (decrease) in compensated absences (16,839) (16,839) (33,678)
Increase (decrease) in other post employment benefits 57 57 114
Increase (decrease) in net pension liability (33,877) (33,877) (67,754)
Increase (decrease) in deferred inflows of resources 14,143 14,143 28,286
Total adjustments 588,560 502,036 1,090,596
Net cash provided by operating activities $473,394 $291,277 $764,671
Noncash investing, capital and financing activities:
Contributions of capital assets $892,727 $1,063,820 $1,956,547
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
45
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 10
FIDUCIARY FUNDS
December 31, 2018
Assets:
Cash and investments $1,450,303
Liabilities:
Deposits payable $1,450,303
The accompanying notes are an integral part of these financial statements.
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Lino Lakes, Minnesota (the City) is a public corporation formed under Minnesota Statute 410. As
such, the City is under home rule charter regulations and applicable statutory guidelines.
The basic financial statements of the City have been prepared in conformity with U.S. generally accepted
accounting principles as applied to governmental units by the Governmental Accounting Standards Board
(GASB). The following is a summary of significant accounting policies:
A. FINANCIAL REPORTING ENTITY
In accordance with GASB pronouncements and accounting principles generally accepted in the United
States of America, the financial statements of the reporting entity include those of the City (the primary
government) and its component units. The component units discussed below are included in the City’s
reporting entity because of the significance of their operational or financial relationships with the City.
COMPONENT UNITS
In conformity with accounting principles generally accepted in the United States of America, the
financial statements of the component units have been included in the financial report as blended
component units.
The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the
City. However, for financial reporting purposes, the EDA is reported as if it were a part of the
City’s operation because the governing body is substantially the same as the governing body of the
City and a financial benefit or burden relationship exists between the City and the EDA. The EDA
does not issue separate financial statements. The Housing and Development Authority (HRA) of
Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes,
the HRA is reported as if it were part of the City’s operations because the members of the City
Council serve as commission members and a financial benefit or burden relationship exists
between the City and the HRA. The HRA has not yet incurred any financial activity.
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the primary government and its
component units. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business-type activities, which rely to a
significant extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function or
business-type activity are offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or business-type activity. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges
provided by a given function or business-type activity and 2) grants and contributions that are restricted
to meeting the operational or capital requirements of a particular function or business-type activity.
Taxes and other items not included among program revenues are reported instead as general revenues.
The fund financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. The
emphasis of governmental and proprietary fund financial statements is on major individual
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
governmental and enterprise funds, with each displayed as separate columns in the fund financial
statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor
funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and
investment earnings, result from nonexchange transactions or incidental activities.
The City reports the following major governmental funds:
General Fund is the City’s primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
General Obligation Improvement Note of 2009A Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt. The note
was used to finance improvement projects at the I-35E and County Road 14 interchange.
General Obligation Improvement Bonds of 2016B Fund accounts for the accumulation of resources
for, and the payment of, interest, principal and related costs on general long-term debt.
Area and Unit Charge Fund accounts for the collection of water and sewer unit charges to be used
for debt payments and construction of governmental infrastructure.
MSA Construction Fund accounts for the financing of future reconstruction of state aid eligible
streets.
2018 Street Reconstruction Fund accounts for street and utility improvements within the West
Shadow Lake Drive and LaMotte neighborhoods.
The City reports the following major proprietary funds:
The Water Fund accounts for customer water service charges which are used to finance water
system operating expenses.
The Sewer Fund accounts for customer sewer service charges which are used to finance sanitary
sewer system operating expenses.
Additionally, the City reports the following fund type:
Agency funds account for assets held as an agent for individuals, private organizations and other
governmental units. The City’s agency fund accounts for pass-through contractor’s deposits
relating to prospective developments.
C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency
funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of
operations.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the
City considers all revenues, except reimbursement grants, to be available if they are collected within 60
days of the end of the current fiscal period. Reimbursement grants are considered available if they are
collected within one year of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences and claims and judgments, are recorded only when
payment is due.
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to be susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is
received by the City.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are transactions that would be treated as revenues,
expenditures or expenses if they involved external organizations, such as buying goods and services or
payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination
of these charges would distort the direct costs and program revenues reported for the various functions
concerned.
Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the water and sewer enterprise funds are charges to customers for sales and services. Operating
expenses for enterprise funds include the cost of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
D. BUDGETS
Budgets are adopted on a basis consistent with accounting principles generally accepted in the United
States of America. Annual appropriated budgets are adopted for the General Fund and the Program
Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. Budgeted
amounts are reported as originally adopted and as amended by the City Council. Budgeted expenditure
appropriations lapse at year end.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed
by the City because it is at present not considered necessary to assure effective budgetary control or to
facilitate effective cash management.
49
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
E. LEGAL COMPLIANCE – BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1. The City Administrator submits to the City Council a proposed operating budget (including the
General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing
the following January 1. The operating budget includes proposed expenditures and the means
of financing them.
2. Public hearings are conducted to obtain taxpayer comments.
3. The budget is legally enacted through passage of a resolution on a departmental basis and can
expended by each department based upon detailed budget estimates for individual expenditure
accounts.
4. The City Administrator is authorized to transfer appropriations within any department budget.
Additional interdepartmental or interfund appropriations and deletions are or may be
authorized by the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for
the General Fund.
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies
for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent
general obligation bond indenture provisions and net income for operation and capital
maintenance and are not reflected in the financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the department level unless
approved by the City Council. Therefore, the legal level of budgetary control is at the
department level (i.e. administration, community development, public safety, public services,
and other).
9. The City Council may authorize transfers of budgeted amounts between City funds.
F. CASH AND INVESTMENTS
Cash and investment balances from all funds are pooled and invested to the extent available in
authorized investments. Investment income is allocated to individual funds on the basis of the fund's
equity in the cash and investment pool.
Investments are stated at fair value, except for investments in external investment pools that meet
GASB 79 requirements, which are stated at amortized cost. Interest earnings are accrued at year-end.
For purposes of the Statement of Cash Flows, the proprietary funds consider all highly liquid
investments with a maturity of three months or less when purchased to be cash equivalents. All of the
cash and investments allocated to the proprietary fund types have original maturities of 90 days or less.
Therefore, the entire balance in such fund types is considered cash equivalents.
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Permanently restricted cash and investments represents the principal and earnings portion of resources
received that must be retained in a permanent fund. Only earnings from these funds may be used for
purposes that support environmental maintenance and improvements.
G. PROPERTY TAX REVENUE RECOGNITION
The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment
date) of each year for collection in the following year. The County is responsible for billing and
collecting all property taxes for itself, the City, the local School District and other taxing authorities.
Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real
property taxes are payable (by property owners) on May 15 and October 15 of each calendar year.
Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes
are collected by the County and remitted to the City on or before July 15 and December 15 of the same
year. Delinquent collections for November and December are received the following January. The
City has no ability to enforce payment of property taxes by property owners. The County possesses this
authority.
Within the government-wide financial statements, the City recognizes property tax revenue in the
period for which taxes were levied. Uncollectible property taxes are not material and have not been
reported.
Within the governmental fund financial statements, the City recognizes property tax revenue when it
becomes both measurable and available to finance expenditures of the current period. In practice,
current and delinquent taxes and received by the City in July, December, and the following January are
recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to
the City the following January) are classified as due from county. Taxes not collected by the county by
December 31 are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset
by deferred inflows of resources because they are not available to finance current expenditures.
The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal
Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the
taxable valuation of commercial/industrial real property to various taxing authorities within the defined
metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation
growth since 1971.
H. SPECIAL ASSESSMENT REVENUE RECOGNITION
Special assessments are levied against benefited properties for the cost or a portion of the cost of special
assessment improvement projects in accordance with state statutes. These assessments are collectible
by the City over a term of years usually consistent with the term of the related bond issue. Collection of
annual installments (including interest) is handled by the County Auditor in the same manner as
property taxes. Property owners are allowed to (and often do) prepay future installments without
interest or prepayment penalties.
Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that
property until full payment is made or the amount is determined to be excessive by the City Council or
court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit
sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
City in payment of delinquent special assessments. Generally, the City will collect the full amount of
its special assessments not adjusted by City Council or court action. Pursuant to state statutes, a
property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or
seasonal recreational land in which event the property is subject to such sale after five years.
Within the government-wide financial statements, the City recognizes special assessment revenue in the
period that the assessment roll was adopted by the City Council. Uncollectible special assessments are
not material and have not been reported.
Within the fund financial statements, the revenue from special assessments is recognized by the City
when it becomes measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are recognized as revenue for
the current year. Special assessments are collected by the County and remitted by December 31
(remitted to the City the following January) and are also recognized as revenue for the current year. All
remaining delinquent, deferred and special deferred assessments receivable in governmental funds are
completely offset by deferred inflows of resources.
I. INVENTORY
For governmental funds, the original cost of materials and supplies are recorded as expenditures at the
time of purchase. These funds do not maintain material amounts of inventories.
Inventories of the proprietary funds are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method.
J. PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditures/expenses at the time of consumption.
K. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /
expenses initially made from it that are properly applicable to another fund, are recorded as
expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund
that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Such advances are classified as “advances to/from other funds.” Long-
term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as “internal balances.” All other interfund transactions are
reported as transfers.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
L. CAPITAL ASSETS
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads,
sidewalks, street lights, and similar items) are reported in the applicable governmental or business-type
activities columns in the government-wide financial statements. Capital assets are defined by the City
as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of
one year. Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at acquisition value at the date of donation. All
existing City infrastructure has been capitalized regardless of date placed in service.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Major outlays for capital assets and improvements are
capitalized as projects are constructed.
Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities
with accumulated depreciation reflected in the Statement of Net Position. Capital assets are depreciated
using the straight-line method over their estimated useful lives. Since surplus assets are sold for an
immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into
consideration for depreciation purposes. Useful lives vary from 3 to 30 years for buildings, office
furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for
infrastructure.
M. COMPENSATED ABSENCES
It is the City’s policy to permit employees to accumulate earned but unused vacation, PTO (Personal
Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay
allowable as severance is accrued in the government-wide and proprietary fund financial statements.
The current portion is calculated based on historical trends.
N. LONG-TERM OBLIGATIONS
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums
and discounts are amortized over the life of the related debt.
In the fund financial statements, governmental fund types recognize bond premiums and discounts
during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt
issuances are reported as other financing uses.
O. DEFINED BENEFIT PENSION PLANS
For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and
pension expense, information about the fiduciary net position of the Public Employees Retirement
Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been
determined on the same basis as they are reported by PERA, except that PERA’s fiscal year end is June
30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit
53
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
In addition to assets, the statement of financial position will sometimes report a separate section for
deferred outflows of resources. This separate financial statement element represents a consumption of
net position that applies to future periods and so will not be recognized as an outflow of resources
(expense) that time. The City has one item that qualifies for reporting in the category. It is the pension
related deferred outflows of resources reported in the government-wide Statement of Net Position and
the proprietary funds Statement of Net Position.
In addition to liabilities, the statement of financial position reports a separate section for deferred
inflows of resources. This separate financial statement element represents an acquisition of net position
that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue)
until that time. The City has pension and OPEB related deferred inflows of resources reported in the
government-wide Statement of Net Pension and the proprietary funds Statements of Net Position. The
City also has a type of item, which arises only under a modified accrual basis of accounting, that
qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in
the governmental funds balance sheet. The governmental funds report unavailable revenue from the
following sources: property taxes and special assessments not collected within 60 days from year-end.
Q. FUND BALANCE CLASSIFICATIONS
In the fund financial statements, governmental funds report fund balance in classifications that disclose
constraints for which amounts in those funds can be spent. These classifications are as follows:
Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and
corpus of any permanent fund.
Restricted - consists of amounts related to externally imposed constraints established by creditors,
grantors or contributors; or constraints imposed by state statutory provisions.
Committed - consists of internally imposed constraints. These constraints are established by a
resolution approved by the City Council, and committed amounts cannot be used for any other
purpose unless the City Council removes or changes the specified use by resolution.
Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended
use. These constraints are established by the City Council and/or management. The City Council
passed a resolution authorizing the Finance Director to assign fund balances and their intended
uses.
Unassigned - is the residual classification for the general fund and also reflects negative residual
amounts in other funds.
When both restricted and unrestricted resources are available for use, it is the City’s policy to first use
restricted resources, and then use unrestricted resources as they are needed. When committed, assigned
or unassigned resources are available for use, it is the City’s policy to use resources in the following
order: 1) committed 2) assigned and 3) unassigned.
54
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The City formally adopted a fund balances policy for the general fund. The policy establishes an
unassigned fund balance range of 40% - 50% of general fund operating expenditures.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial
statements during the reporting period. Actual results could differ from such estimates.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s
deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral
protect all City deposits. The market value of collateral pledged must equal 110% of deposits not
covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit
risk. At December 31, 2018, the bank balance of the City’s deposits was insured by the FDIC or
covered by pledged collateral held in the City’s name.
Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City
Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral
includes the following:
a) United States government treasury bills, treasury notes, treasury bonds;
b) Issues of United States government agencies and instrumentalities as quoted by a recognized
industry quotation service available to the government entity;
c) General obligation securities of any state or local government with taxing powers which is rated
“A” or better by a national bond rating service, or revenue obligation securities of any state or local
government with taxing powers which is rated “AA” or better by a national bond rating service;
d) General obligation securities of a local government with taxing powers may be pledged as
collateral against funds deposited by that same local government entity;
e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality
accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s
Investors Service, Inc. or Standard & Poor’s Corporation; and
f) Time deposits that are fully insured by the Federal Deposits Insurance Corporation.
At December 31, 2018, the carrying amount of the City’s deposits with financial institutions was
$4,714,688.
55
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
B. INVESTMENTS
Minnesota Statutes authorize the City to invest in the following:
a) Direct obligations or obligations guaranteed by the United States or its agencies, its
instrumentalities, or organizations created by an act of congress, excluding mortgage-backed
securities defined as high risk.
b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and
whose only investments are in securities described in (a) above, general obligation tax-exempt
securities, or repurchase or reverse repurchase agreements.
c) State and local securities as follows:
1) any security which is a general obligation of any state or local government with taxing powers
which is rated “A” or better by a national bond rating service;
2) any security which is a revenue obligation of any state or local government with taxing powers
which is rated “AA” or better by a national bond rating service; and
3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of
the State of Minnesota and is rated “A” or better by a national bond rating agency.
d) Bankers acceptance of United States banks.
e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the
highest quality, and maturing in 270 days or less.
f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve
System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government
securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers;
or, a bank qualified as a depositor.
g) General obligation temporary bonds of the same governmental entity issued under section 429.091,
subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6.
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
At December 31, 2018, the City had the following investments and maturities:
Fair Less
Investment Type Rating Value Than 1 1 - 3 3 - 6
Brokered certificates of deposit Not rated $21,764,879 $5,281,248 $13,223,194 $3,260,437
Municipal bonds * 11,895,760 3,630,158 6,205,751 2,059,851
Federal Home Loan Mortgage Corp. AAA 1,481,550 - - 1,481,550
4M fund Not rated 9,227,709 9,227,709 - -
First American Gov't Obligation fund AAAm 1,478,455 1,478,455 - -
Invesco Gov't & Agency fund AAAm 599,883 599,883 - -
Total $46,448,236 $20,217,453 $19,428,945 $6,801,838
* AAA $1,627,686; AA+ $1,671,406 Total investments $46,448,236
AA $3,908,093; AA- $3,851,826 Deposits 4,714,688
A+ $228,655; A $608,094 Petty cash 940
Total cash and investments $51,163,864
Investment Maturities (in Years)
These amounts are presented in the financial statements as follows:
Cash and investments:
Governmental and business-type (Statement 1) $49,713,561
Fiduciary (Statement 10) 1,450,303
Total $51,163,864
The City categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair
value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are
based on quoted prices in active markets for identical assets. Level 2 investments are valued using
inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or
indirectly. Level 3 investments are valued using inputs that are unobservable.
57
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The City has the following recurring fair value measurements at December 31, 2018:
Investment Type 12/31/2018 Level 1 Level 2 Level 3
Investments at fair value:
Brokered certificates of deposit $21,764,879 $ - $21,764,879 $ -
Municipal bonds 11,895,760 - 11,895,760 -
Federal Home Loan Mortgage Corp. 1,481,550 - 1,481,550 -
$0 $35,142,189 $0
Investments not categorized:
4M fund 9,227,709 `
First American Gov't Obligation fund 1,478,455
Invesco Gov't & Agency fund 599,883
Total investments $46,448,236
Fair Value Measurement Using
The 4M fund is an external investment pool investment which is regulated by Minnesota Statutes and
the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the
position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio
weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value
(NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB
Statement No. 79. The 4M Plus fund requires funds to be deposited for a minimum of 14 calendar
days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest
on the amount withdrawn.
The First American Government Obligation money market fund and the Invesco Government &
Agency money market fund are external investment pools. Each fund seeks to maintain a constant net
asset value (NAV) of $1 per share. The securities held by each fund are valued on the basis of
amortized cost. Shares may be redeemed without penalty on any business day.
C. INVESTMENT RISKS
Custodial Credit Risk – Investments – For investments in securities, custodial credit risk is the risk
that in the event of failure of the counterparty to a transaction, the City will not be able to recover
the value of its investment securities that are in the possession of an outside party. Investments
in investment pools and money markets are not evidenced by securities that exist in physical or
book entry form, and therefore are not subject to custodial credit risk disclosures. The City’s
investment policy requires its brokers be licensed with the appropriate federal and state agencies. A
minimum capital requirement of $5,000,000 and at least five years of operation is mandatory.
Investments in securities are held by the City’s broker-dealers. The securities at each broker-dealer are
insured $500,000 through SIPC. Each broker-dealer has provided additional protection by providing
additional insurance. This insurance is subject to aggregate limits applied to all of the broker-dealer’s
accounts.
Interest Rate Risk – Interest rate risk is the risk that changes in interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. The City’s policy to minimize interest
rate risk includes investing primarily in short-term securities and structuring the investment portfolio so
that securities mature to meet cash requirements for ongoing operations.
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Credit Risk – Credit risk is the risk than an issuer of an investment will not fulfill its obligation to the
holder of the investment. The City’s policy to minimize credit risk includes limiting investing funds to
those allowable under Minnesota Statute 118A, annually appointing all financial institutions where
investments are held, and diversifying the investment portfolio. This is measured by the assignment of
a rating by a nationally recognized statistical rating organization.
Concentration of Credit Risk – Concentration of credit risk is the risk of loss that may be attributed to
the magnitude of a government’s investment in a single issuer. The City places no limit on the amount
it may invest in any one issuer. At December 31, 2018, no individual investments exceeded 5% of the
City’s total investment portfolio.
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2018 are as
follows:
Property Special
Taxes Assessments Notes
Receivable Receivable Receivable Total
Major Funds:
General Fund $43,378 $ - $ - $43,378
G.O. Improvement Note of 2009A - 2,076,882 - 2,076,882
G.O. Improvement Bonds of 2016B - 2,994,379 - 2,994,379
Area and Unit Charge - 884,651 - 884,651
Nonmajor Funds 8,692 435,924 225,000 669,616
Total $52,070 $6,391,836 $225,000 $6,668,906
59
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 4 UNAVAILABLE REVENUE
Governmental funds report deferred inflows of resources in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. At the end of the current fiscal year, the
various components of unavailable revenue reported in the governmental funds are as follows:
Property Special
Taxes Assessments
Receivable Receivable Total
Major Funds:
General Fund $69,625 $106 $69,731
G.O. Improvement Note of 2009A - 2,100,886 2,100,886
G.O. Improvement Bonds of 2016B - 2,994,379 2,994,379
Area and Unit Charge - 997,143 997,143
Nonmajor Funds 13,952 519,201 533,153
Total $83,577 $6,611,715 $6,695,292
60
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2018 was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $3,320,059 $ - $ - $ - $3,320,059
Wetland credits 162,372 13,117 (8,265) - 167,224
Construction in progress 2,482,238 3,653,869 (1,826,135) (714,515) 3,595,457
Total capital assets, not being depreciated 5,964,669 3,666,986 (1,834,400) (714,515) 7,082,740
Capital assets, being depreciated:
Buildings 10,921,748 378,911 - - 11,300,659
Office equipment and furniture 783,626 86,190 (8,266) - 861,550
Vehicles 4,344,818 315,814 (103,778) - 4,556,854
Machinery and shop equipment 2,557,317 235,298 (84,670) - 2,707,945
Other equipment 1,111,410 85,048 - - 1,196,458
Infrastructure 85,882,657 2,306,583 - - 88,189,240
Total capital assets, being depreciated 105,601,576 3,407,844 (196,714)0 108,812,706
Less accumulated depreciation for:
Buildings 4,545,737 379,490 - - 4,925,227
Office equipment and furniture 546,849 52,256 (8,266) - 590,839
Vehicles 2,328,463 352,988 (69,786) - 2,611,665
Machinery and shop equipment 1,423,693 183,067 (25,061) - 1,581,699
Other equipment 844,314 21,526 - - 865,840
Infrastructure 59,266,162 1,951,447 - - 61,217,609
Total accumulated depreciation 68,955,218 2,940,774 (103,113)0 71,792,879
Total capital assets being depreciated - net 36,646,358 467,070 (93,601)0 37,019,827
Governmental activities capital assets - net $42,611,027 $4,134,056 ($1,928,001) ($714,515) $44,102,567
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in progress $1,507,153 $1,242,031 ($1,840,667) $714,515 $1,623,032
Capital assets, being depreciated:
Machinery and shop equipment 474,654 14,009 - - 488,663
Water and sewer systems 47,997,765 1,840,667 - - 49,838,432
Total capital assets, being depreciated 48,472,419 1,854,676 0 0 50,327,095
Accumulated depreciation for:
Machinery and shop equipment 307,215 19,910 - - 327,125
Water and sewer systems 17,840,406 1,073,517 - - 18,913,923
Total accumulated depreciation 18,147,621 1,093,427 0 0 19,241,048
Total capital assets being depreciated - net 30,324,798 761,249 0 0 31,086,047
Business-type activities capital assets - net $31,831,951 $2,003,280 ($1,840,667) $714,515 $32,709,079
61
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $396,284
Public safety 326,006
Public services 2,217,634
Conservation of natural resources 850
Total depreciation expense - governmental activities $2,940,774
Business-type activities:
Water $597,571
Sewer 495,856
Total depreciation expense - business-type activities $1,093,427
62
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 6 LONG-TERM DEBT
The City issues general obligation bonds and certificates of indebtedness to provide funds for the acquisition and
construction of major capital facilities and equipment. City indebtedness at December 31, 2018 consisted of the
following:
Final
Issue Maturity Interest Original Payable
Date Date Rate Issue 12/31/18
Governmental activities:
General Obligation Bonds:
2015B Certificates of Indebtedness 08/25/15 12/31/20 1.50% 963,000 398,000
2016A Certificates of Indebtedness 02/01/16 12/31/19 1.00% 469,000 158,000
2017A Certificates of Indebtedness 03/01/17 12/31/20 1.00% 311,000 209,000
2018A Certificates of Indebtedness 02/01/18 12/31/21 1.00% 303,900 303,900
G.O. TIF Bonds, Series 2007A 07/15/07 02/01/24 4.00% - 4.125% 4,215,000 1,435,000
G.O. Refunding Bonds, Series 2012A 11/15/12 02/01/24 1.00% - 2.00%2,015,000 1,040,000
G.O. Bonds, Series 2015A 08/01/15 02/01/31 2.00% - 3.00% 3,095,000 2,710,000
EDA Lease Revenue Bonds, Series 2015B 10/01/15 04/01/36 2.00% - 3.00% 4,350,000 4,015,000
G.O. Utility Revenue Bonds, Series 2016A 11/23/16 02/01/27 2.00% 1,420,000 1,290,000
G.O. Tax Abatement Refunding Bonds, Series 2016C 11/23/16 02/01/23 1.00% - 1.50% 1,600,000 1,375,000
G.O. Bonds, Series 2018A 12/19/18 02/01/34 3.00% - 5.00% 6,915,000 6,915,000
Total General Obligation Bonds 25,656,900 19,848,900
Special Assessment Bonds:
G.O. Imp & Utility Revenue Bonds, Series 2010A 07/09/10 02/01/20 2.00% - 3.00% 1,000,000 220,000
G.O. Improvement Bonds, Series, 2013A 07/15/13 02/01/24 1.25% - 4.00% 615,000 375,000
G.O. Improvement Bonds, Series 2014A 11/20/14 02/01/26 0.40% - 2.30% 2,645,000 1,800,000
G.O. Improvement Refunding Bonds, Series 2016B 11/23/16 02/01/21 0.875% - 1.50% 1,975,000 1,495,000
Total Special Assessment Bonds 6,235,000 3,890,000
G.O. Capital Note, Series 2016A 04/14/16 02/01/26 2.00% 294,525 202,125
Unamortized bond premiums 575,188 527,800
Unamortized bond discounts (38,362) (15,987)
Compensated absences payable N/A 813,872
Total Government Activities $32,723,251 $25,266,710
Business-Type Activities:
Compensated absences payable N/A $32,878
63
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2018:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:
General obligation bonds $14,714,250 $7,218,900 $2,084,250 $19,848,900 $1,747,900
Special assessment bonds 4,905,000 - 1,015,000 3,890,000 1,035,000
Total bonded debt 19,619,250 7,218,900 3,099,250 23,738,900 2,782,900
Capital note 233,475 - 31,350 202,125 32,175
Unamortized bond premiums 142,182 401,193 15,575 527,800 -
Unamortized bond discounts (18,664) - (2,677) (15,987) -
Compensated absences payable 768,908 634,743 589,779 813,872 497,161
Total governmental activities $20,745,151 $8,254,836 $3,733,277 $25,266,710 $3,312,236
Business-Type Activities:
Compensated absences payable $66,556 $33,311 $66,989 $32,878 $28,292
DESCRIPTIONS OF LONG-TERM DEBT
General Obligation Bonds – The bonds were issued for improvements or projects which benefited the City as a
whole and, therefore, are repaid from ad valorem levies.
Special Assessment Bonds – The bonds were issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However, some
issues are partly financed by ad valorem levies.
Capital Note – This note was issued to fund the cost of the acquisition of capital equipment to be used by the
North Metro Telecommunications Commission in the operation of a cable communications system. The note
will be repaid from franchise fee revenue.
Utility Revenue Bonds – These bonds were issued to finance various improvements in the water fund and will be
repaid primarily from pledged revenues derived from the constructed assets.
64
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
DEBT SERVICE REQUIREMENTS
Future principal and interest payments required to retire long-term debt are as follows:
Years Ending
December 31 Principal Interest Principal Interest
2019 $2,782,900 $543,811 $32,175 $4,042
2020 2,696,000 600,599 33,000 3,399
2021 2,615,000 542,386 33,000 2,739
2022 1,830,000 483,876 33,825 2,079
2023 1,905,000 428,672 34,650 1,403
2024-2028 5,950,000 1,463,166 35,475 710
2029-2033 4,535,000 628,950 - -
2034-2036 1,425,000 61,438 - -
Total $23,738,900 $4,752,898 $202,125 $14,372
Bonded Debt Capital Note
It is not practicable to determine the specific year for payment of long-term compensated absences payable. For
governmental activities, compensated absences are liquidated by the General Fund. For business-type activities,
compensated absences are liquidated by the Water and Sewer Funds.
DEFERRED AD VALOREM TAX LEVIES – BONDED DEBT
All long-term bonded indebtedness is backed by the full faith and credit of the City, including special assessment
and revenue bond issues. General Obligation bond issues are financed by ad valorem tax levies and special
assessment bond issues are partially financed by ad valorem tax levies in addition to special assessments levied
against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax
levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County
Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject
to cancellation when and if the City has provided alternative sources of financing. The City Council is required
to levy any additional taxes found necessary for full payment of principal and interest.
The future scheduled tax levies are not shown as assets in the accompanying financial statements. Future
scheduled tax levies for all bonds outstanding at December 31, 2018 totaled $18,719,815.
65
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
REVENUE PLEDGED
Future revenue pledged for the payment of long-term debt is as follows:
Remaining Principal Pledged
Term of Principal and Interest Revenue
Bond Issue Use of Proceeds Type Pledge and Interest Paid Received
Certificates of Indebtedness Equipment purchases Ad valorem taxes 2016 - 2021 $1,091,430 $537,650 $562,872
2007A G.O. TIF Bonds Infrastructure improvements 2008 - 2023 $1,622,773 $252,126 $252,776
2011 - 2019 $226,750 $113,175 $113,281
2012A G.O. Bonds Infrastructure improvements 2013 - 2023 $1,083,433 $244,660 $193,492
2013A Improvement Bonds Infrastructure improvements Special assessments 2014 - 2023 $419,700 $74,460 $222,639
2014A Improvement Bonds Infrastructure improvements Special assessments 2015 - 2025 $1,894,869 $399,632 $402,403
2015A G.O. Bonds Infrastructure improvements Ad valorem taxes 2016 - 2030 $3,139,093 $258,262 $273,420
2015B EDA Lease Revenue Bonds Construction of a fire station Ad valorem taxes 2016 - 2035 $5,387,068 $300,888 $318,282
2016A Capital Note Cable communications equipment Franchise fees 2016 - 2025 $216,497 $36,019 $37,820
2016A Utility Revenue Bonds Water infrastructure improvements 2017 - 2026 $1,408,200 $157,100 $163,764
2016B Improvement Bonds Infrastructure improvements 2017 - 2020 $1,526,473 $501,575 $278,137
2016C G.O. Tax Abatement Bonds Infrastructure improvements Ad valorem taxes 2017 - 2022 $1,424,763 $244,150 $275,421
2018A G.O. Bonds Infrastructure improvements 2019-2033 $9,267,246 $ - $ - Ad valorem taxes, trunk
utility charges
Tax increment, MSA
funding via transfers
Ad valorem taxes,
special assessments
Special assessments, tax
increment
Trunk utility charges via
transfers
Revenue Pledged Current Year
2010A Improvement and Utility
Revenue Bonds
General and water infrastructure
improvements
Special assessments,
trunk utility charges
66
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 7 DEFINED BENEFIT PENSION PLANS – PERA
A. PLAN DESCRIPTION
The City participates in the following cost-sharing multiple-employer defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined
benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters
353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the
Internal Revenue Code.
1. General Employees Retirement Fund (GERF)
All full-time (with the exception of employees covered by PEPFF) and certain part-time employees
of the City are covered by the General Employees Retirement Fund (GERF). GERF members
belong to the Coordinated Plan. Coordinated Plan members are covered by Social Security.
2. Public Employees Police and Fire Fund (PEPFF)
The PEPFF, originally established for police officers and firefighters not covered by a local relief
association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999,
the PEPFF also covers police officers and firefighters belonging to local relief associations that
elected to merge with and transfer assets and administration to PERA.
B. BENEFITS PROVIDED
PERA provides retirement, disability, and death benefits. Benefit provisions are established by state
statute and can only be modified by the state legislature. Vested, terminated employees who are entitled
to benefits but are not receiving them yet are bound by the provisions in effect at the time they last
terminated their public service.
1. GERF Benefits
Benefits are based on a member’s highest average salary for any five successive years of allowable
service, age, and years of credit at termination of service. Two methods are used to compute
benefits for PERA’s Coordinated members. Members hired prior to July 1, 1989, receive the
higher of Method 1 or Method 2 formulas. Only Method 2 is used for members hired after June 30,
1989. Under Method 1, the accrual rate for Coordinated members is 1.2% for each of the first ten
years and 1.7% for each additional year. Under Method 2, the accrual rate for Coordinated Plan
members is 1.7% for all years of service. The accrual rates for former Minneapolis Employees
Retirement Fund (MERF) members is 2.0% for each of the first 10 years of service and 2.5% for
each additional year. For members hired prior to July 1, 1989 a full annuity is available when age
plus years of service equal 90 and normal retirement age is 65. For members hired on or after July
1, 1989 normal retirement age is the age for unreduced Social Security benefits capped at 66.
Beginning January 1, 2019, benefit recipients will receive a future annual increase equal to 50
percent of the Social Security Cost of Living Adjustment, not less than 1.0 percent and not more
than 1.5 percent. For retirements on or after January 1, 2024, the first benefit increase is delayed
until the retiree reaches Normal Retirement Age (not applicable to Rule of 90 retirees, disability
benefit recipients, or survivors). A benefit recipient who has been receiving a benefit for at least
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
12 full months as of June 30 will receive a full increase. Members receiving benefits for at least
one month but less than 12 full months as of June 30 will receive a pro rata increase.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits
for PEPFF members first hired after June 30, 2014, vest on a prorated bases from 50% after ten
years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average
salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a
full annuity is available when age plus years of service equal at least 90.
Beginning in 2019, the COLA will be fixed at 1 percent. Under funding measurements from 2017,
the 2.5 percent COLA trigger was never expected to occur and was subsequently removed from
law. Post retirement increases are given each year except for annuitants who have been receiving a
benefit for only 31 to 41 months. These annuitants will receive a prorated amount of the increase
on a sliding scale.
C. CONTRIBUTIONS
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution
rates can only be modified by the state legislature.
1. GERF Contributions
Coordinated Plan members were required to contribute 6.5% of their annual covered salary in fiscal
year 2018; the City was required to contribute 7.5% for Coordinated Plan members. The City
contributions to the GERF for the year ended December 31, 2018 were $202,526. The City
contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Legislation increased both employee and employer contribution rates in the Police and Fire Plan.
Employee rates increased from 10.80 percent of pay to 11.30 percent and employer rates increase
from 16.20 percent to 16.95 percent on January 1, 2019. On January 1, 2020 employee rates
increase to 11.80 percent and employer rates increase to 17.70 percent. The City contributions to
the PEPFF for the year ended December 31, 2018 were $420,821. The City contributions were
equal to the required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2018, the City reported a liability of $2,113,632 for its proportionate share of
GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State
of Minnesota’s contribution of $16 million to the fund in 2018. The State of Minnesota is
considered a non-employer contributing entity and the state’s contribution meets the definition of a
special funding situation. The State of Minnesota’s proportionate share of the net pension liability
associated with the City totaled $69,419. The net pension liability was measured as of June 30,
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
2018, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City’s proportion of the net pension liability was based on
the City’s contributions received by PERA during the measurement period for employer payroll
paid dates from July 1, 2017 through June 30, 2018, relative to the total employer contributions
received from all of PERA’s participating employers. At June 30, 2018, the City’s proportionate
share was 0.0381%, which was a decrease of 0.0033% from its proportionate share measured as of
June 30, 2017.
Post-retirement benefit increases were changed from 1.0% per year with a provision to increase to
2.5% upon attainment of 90% funding ratio to 50% of the Social Security Cost of Living
Adjustment, not less than 1.0% and not more than 1.5%, beginning January 1, 2019.
For the year ended December 31, 2018, the City recognized pension expense of $169,283 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$16,188 as pension expense (and grant revenue) for its proportionate share of the State of
Minnesota’s contribution of $16 million to the GERF.
At December 31, 2018, the City reported its proportionate share of the GERF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $55,944 $58,978
Changes in actuarial assumptions 193,160 237,489
Difference between projected and
actual investment earnings - 225,376
Changes in proportion 128,974 222,223
Contributions paid to PERA
subsequent to the measurement date 105,563 -
Total $483,641 $744,066
$105,563 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability during 2019. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as follows:
Year Ended Pension
December 31, Expense
2019 $32,999
2020 (118,211)
2021 (236,660)
2022 (44,116)
2023 -
Thereafter -
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
2. PEPFF Pension Costs
At December 31, 2018, the City reported a liability of $2,585,866 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2018 and the
total pension liability used to calculate the net pension liability was determined by an actuarial
valuation as of that date. The City’s proportion of the net pension liability was based on the City’s
contributions received by PERA during the measurement period for employer payroll paid dates
from July 1, 2017 through June 30, 2018, relative to the total employer contributions received from
all of PERA’s participating employers. At June 30, 2018, the City’s proportion was 0.2426%,
which was a decrease of 0.0144% from its proportion measured as of June 30, 2017. The City also
recognized $21,834 for the year ended December 31, 2018 as revenue (and an offsetting reduction
of net pension liability) for its proportionate share of the State of Minnesota’s on-behalf
contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin
contributing $9 million to the PEPFF each year, starting in fiscal year 2014.
Beginning in January 1, 2019, the COLA will be fixed at 1 percent. Under funding measurements
from 2017, the 2.5 percent COLA trigger was never expected to occur and was subsequently
removed from law.
For the year ended December 31, 2018, the City recognized pension expense of $261,970 for its
proportionate share of the PEPFF’s pension expense.
At December 31, 2018, the City reported its proportionate share of the PEPFF’s deferred outflows
of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual economic experience $104,225 $620,175
Changes in actuarial assumptions 3,167,169 3,806,731
Difference between projected and
actual investment earnings - 560,207
Changes in proportion 307,549 439,714
Contributions paid to PERA
subsequent to the measurement date 227,348 -
Total $3,806,291 $5,426,827
A total of $227,348 reported as deferred outflows of resources related to pensions resulting from
City contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability during 2019. Other amounts reported as deferred outflows and inflows of
resources related to pensions will be recognized in pension expense as outflows:
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Year Ended Pension
December 31, Expense
2019 ($91,934)
2020 (204,554)
2021 (394,691)
2022 (1,060,238)
2023 (96,467)
Thereafter -
The net pension liability will be liquidated by the general, water and sewer funds.
E. ACTUARIAL ASSUMPTIONS
The total pension liability in the June 30, 2018 actuarial valuation was determined using the following
actuarial assumptions:
GERF PEPFF
Inflation 2.50% per year 2.50% per year
Salary Growth 3.25% per year after 26 years of service 3.25% per year after 25 years of service
Investment rate of return 7.50%7.50%
The total pension liability for each of the defined benefit cost-sharing plans was determined by an actuarial
valuation as of June 30, 2018, using the entry age normal actuarial cost method. Inflation is assumed to be
2.50 percent for the General Employees Plan. Salary growth assumptions in the General Employees Plan
decrease in annual increments from 11.25 percent after one year of service, to 3.25 percent after 26 years of
service. In the Police and Fire Plan, salary growth assumptions decrease from 12.25 percent after one year
of service to 3.25 percent after 25 years of service.
Mortality rates for all plans are based on RP-2014 mortality tables. The tables are adjusted slightly to fit
PERA’s experience. Actuarial assumptions for the General Employees Plan are reviewed every four to six
years. The most recent six-year experience study for the General Employees Plan was completed in 2015.
The most recent four-year experience study for the Police and Fire Plan was completed in 2016.
The following changes in actuarial assumptions occurred in 2018:
General Employees Fund
• The mortality projection scale was changed from MP-2015 to MP-2017.
• The assumed benefit increase was changed from 1.0 percent per year through 2044 and 2.50
percent per year thereafter to 1.25 percent per year.
Police and Fire Fund
• The mortality projection scale was changed from MP-2016 to MP-2017.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method in
which best-estimate ranges of expected future rates of return are developed for each major asset class.
These ranges are combined to produce an expected long-term rate of return by weighting the expected future
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
rates of return by the target asset allocation percentages. The target allocation and best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic stocks 36%5.10%
International stocks 17%5.30%
Bonds (fixed income)20%0.75%
Alternative assets (private markets)25%5.90%
Cash 2%0.00%
Totals 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows
used to determine the discount rate assumed that contributions from plan members and employees will
be made at the rate set in Minnesota statutes. Based on that assumption, the fiduciary net position of the
GERF and the PEPFF was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments
was applied to all periods of projected benefit payments to determine the total pension liability.
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s proportionate share of the net pension liability for all plans it
participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what
the City’s proportionate share of the net pension liability would be if it were calculated using a discount
rate 1 percentage point lower or 1 percentage point higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%)
City's proportionate share of the
GERF net pension liability $3,434,922 $2,113,632 $1,022,944
City's proportionate share of the
PEPFF net pension liability $5,544,259 $2,585,866 $139,398
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2018 is as follows:
GERF $185,471
PEPFF 261,970
Fire Pension Plan (Note 8)57,541
Total $504,982
Note 8 DEFINED BENEFIT PENSION PLAN – FIRE DIVISION
A. PLAN DESCRIPTION
The Lino Lakes Public Safety Department – Fire Division participates in the Statewide Volunteer
Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan
administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan
covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting
corporations that have elected to join the plan. At December 31, 2018 (measurement date), the plan
covered 24 active firefighters and zero vested terminated fire fighters whose pension benefits are
deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter
353G.
B. BENEFITS PROVIDED
The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and
survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per
year of service approved by the City of Lino Lakes. Members are eligible for a lump-sum retirement
benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting
schedule that increases from 5 years at 40% through 20 years at 100%.
C. CONTRIBUTIONS
The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as
specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed
$118,144 in fire state aid to the plan for the year ended December 31, 2018. Required employer
contributions are calculated annually based on statutory provisions. The City’s statutorily-required
contributions to the SVF plan for the year ended December 31, 2018 were $0. The City’s contributions
were equal to the required contributions as set by state statute, if applicable. In addition, the City made
voluntary contributions of $64,869 to the plan.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
D. PENSION COSTS
At December 31, 2018, the City reported a net pension asset of $164,913 for the SVF plan. The net
pension asset was measured as of December 31, 2018. The total pension liability used to calculate the
net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula
to specific census data certified by the fire department. The following table presents the changes in net
pension liability during the year.
Plan Net
Total Fiduciary Pension
Pension Net Liability
Liability Position (Asset)
(a)(b)(a-b)
Beginning balance December 31, 2017 $97,711 $225,705 ($127,994)
Changes for the year:
Service cost 48,182 - 48,182
Interest on pension liability 8,754 - 8,754
Actuarial experience (gains) / losses 69,760 - 69,760
Projected investment earnings - 13,542 (13,542)
Contributions - employer - 64,869 (64,869)
Contributions - State of MN - 118,144 (118,144)
Asset (gain) / loss - (32,238)32,238
Benefit payouts - - -
PERA administrative fee - (702)702
Net changes 126,696 163,615 (36,919)
Balance end of year December 31, 2018 $224,407 $389,320 ($164,913)
There were no benefit provision changes during the measurement period.
For the year ended December 31, 2018, the City recognized pension expense of $57,541.
At December 31, 2018, the City reported deferred inflows of resources from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between projected and
actual investment earnings $21,849 $ -
Differences between expected and
actual economic experience 55,808 11,863
Total $77,657 $11,863
74
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized
in pension expense as follows:
Year Ended Pension
December 31, Expense
2019 $13,444
2020 15,185
2021 16,767
2022 20,398
2023 -
Thereafter -
E. ACTUARIAL ASSUMPTIONS
The total pension liability at December 31, 2018, was determined using the entry age normal actuarial
cost method and the following actuarial assumptions:
Retirement eligibility at the later of age 50 or 20 years of service
Investment rate of return of 6.0%
Inflation rate of 3.0%
There were no changes in actuarial assumptions in 2018
F. DISCOUNT RATE
The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows
used to determine the discount rate assumed that contributions to the SVF plan will be made as
specified in statute. Based on that assumption and considering the funding ratio of the plan, the
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total pension
liability.
75
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
G. PENSION LIABILITY SENSITIVITY
The following presents the City’s net pension asset for the SVF plan, calculated using the discount rate
disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were
calculated using a discount rate 1% lower or 1% higher than the current discount rate:
1% Decrease in 1% Increase in
Discount Rate (5.0%) Discount Rate (6.0%) Discount Rate (7.0%)
Net pension asset $146,940 $164,913 $181,913
H. PLAN INVESTMENTS
1. Investment Policy
The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota
Constitution to invest all state funds. Its membership as specified in the Constitution is comprised
of the Governor (who is designated as chair of the Board), State Auditor, Secretary of State and
State Attorney General.
All investments undertaken by the SBI are governed by the prudent person rule and other standards
codified in Minnesota Statutes, Chapter 11A and Chapter 353G.
Within the requirements defined by state law, the SBI, with assistance of the SBI staff and the
Investment Advisory Council, establishes investment policies for all funds under its control. These
investment policies are tailored to the particular needs of each fund and specify investment
objectives, risk tolerance, asset allocation, investment management structure and specific
performance standards. Studies guide the on-going management of the funds and are updated
periodically.
2. Asset Allocation
To match the long-term nature of the pension obligations, the SBI maintains a strategic asset
allocation for the SVF that includes allocations to domestic equity, international equity, bonds and
cash equivalents. The long-term target asset allocation and long-term expected real rate of return is
the following:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic Stocks 35% 5.10%
International Stocks 15% 5.30%
Bonds 45% 0.75%
Cash 5% 0.00%
100%
The 6% long-term expected rate of return on pension plan investments was determined using a
building-block method. Best estimates for expected future real rates of return (expected returns,
net of inflation) were developed for each asset class using both long-term historical returns and
long-term capital market expectations from a number of investment management and consulting
76
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
organizations. The asset class estimates and the target allocations were then combined to produce a
geometric, long-term expected real rate of return for the portfolio. Inflation expectations were
applied to derive the nominal rate of return for the portfolio.
3. Description of Significant Investment Policy Changes During the Year
The SBI made no significant changes to their investment policy during fiscal year 2018 for the
Statewide Volunteer Firefighter Retirement Plan.
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the SVF plan’s fiduciary net position at June 30, 2018 is available in a
separately-issued PERA financial report that includes financial statements and required supplementary
information. That report may be obtained at www.mnpera.org.
Note 9 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB)
A. PLAN DESCRIPTION
In addition to providing the pension benefits described in Notes 7 and 8, the City provides post-
employment health care benefits, as defined in paragraph B, through its group health insurance plan
(the plan). The plan is a single-employer defined benefit OPEB plan administered by the City. The
authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and
299A.465. The benefits, benefit levels, employee contributions and employer contributions are
governed by the City and can be amended by the City through its personnel manual and collective
bargaining agreements with employee groups. No assets are accumulated in a trust that meets the
criteria in paragraph 4 of GASB Statement No. 75.
B. BENEFITS PROVIDED
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Active employees, who retire from the City when over age 50 and with 20 years of service,
may continue coverage with respect to both themselves and their eligible dependent(s) under the City’s
health benefits program until age 65.
The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty
in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal to the
employer portion of health insurance premiums that would have otherwise been paid if the officer or
firefighter was an active employee. During 2018, benefits were provided to one officer killed in the
line of duty.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in
which they participate. The premium is a blended rate determined on the entire active and retiree
population. Since the projected claims costs for retirees exceed the blended premium paid by retirees,
the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those
77
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer
and the City’s plan becomes secondary.
C. PARTICIPANTS
As of the January 1, 2017 actuarial valuation, participants of the plan consisted of:
Active employees 46
Inactive employees or beneficiaries
currently receiving benefits 6
Total 52
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City’s total OPEB liability of $756,644 was measured as of December 31, 2018, and was
determined by an actuarial valuation as of January 1, 2017. Changes in the total OPEB liability during
2018 were:
Balance - beginning of year $746,540
Changes for the year:
Service cost 16,547
Interest 21,355
Changes of benefit terms -
Differences between expected and actual experience -
Changes in assumptions -
Benefit payments (27,798)
Net changes 10,104
Balance - end of year $756,644
The OPEB liability will be liquidated by the general, water and sewer funds.
E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS
The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 3.50%
Salary increases 3.50%
Discount rate 2.85%
Investment rate of return 2.85%
Healthcare cost trend rates 8.00% for 2017, decreasing 1.00% per year to
an ultimate rate of 3.00% for 2022 and beyond
Retirees' share of benefit-related costs 100%
78
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of
return was based on the 20 year AA rated municipal bond rate as of November 22, 2017, obtained from
www.fmsbonds.com/market-yields.
Mortality rates were based on the SOA RP-2014 Total Dataset Mortality tables with Scale MP-2014 and
Improvement Scale BB.
Based on past experience of the plan, 90% of future retirees are assumed to continue medical coverage
until age 65. 50% of police/fire employees are assumed to retire at age 55, the balance at age 65. 50%
of other City employees are assumed to retire at age 62, the balance at age 65.
F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT
RATE
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using a discount rate that is 1% lower (1.85%) or 1% higher
(3.85%) than the current discount rate:
1% Decrease Discount Rate 1% Increase
(1.85%)(2.85%)(3.85%)
Total OPEB liability $841,593 $756,644 $681,860
G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE
COST TREND RATES
The following presents the total OPEB liability of the City, as well as what the City’s total OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1% lower (7%
decreasing to 2%) or 1% higher (9% decreasing to 4%) than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(7% decreasing to 2%) (8% decreasing to 3%) (9% decreasing to 4%)
Total OPEB liability $671,431 $756,644 $855,544
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended December 31, 2018, the City recognized $33,979 of OPEB expense. At December
31, 2018, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected
and actual experience $0 $47,160
79
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in
OPEB expense as follows:
Year Ended OPEB
December 31,Expense
2019 ($3,923)
2020 (3,923)
2021 (3,923)
2022 (3,923)
2023 (3,923)
Thereafter (27,545)
($47,160)
Note 10 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2018 as follows:
Fund Balance
Deficit
Major Funds:
G.O. Improvement Bonds of 2016B ($2,150,105)
Nonmajor Funds:
Tax Increment Financing 1-11 (782,682)
2040 Comp Plan Update (2,672)
The City intends to fund these deficits through future tax levies, special assessment collections, tax
increments, transfers from other funds, and various other sources.
80
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of departments within the General Fund that exceeded budget appropriations:
Final
Budget Actual Overage
General government:
Elections $30,640 $31,311 $671
Cable TV 2,500 2,728 228
Legal consultants 135,000 141,407 6,407
Government buildings 521,323 521,533 210
Public safety:
Building inspection 278,738 286,935 8,197
Public services:
Streets 883,161 888,558 5,397
Fleet 427,452 464,915 37,463
Parks 604,554 619,420 14,866
Recreation 214,486 220,483 5,997
Community development:
Economic development 100,827 104,270 3,443
Planning and zoning commission 134,852 136,816 1,964
Note 11 INTERFUND RECEIVABLES AND PAYABLES
Short-term advances to funds that have insufficient cash balances are classified as advances to/from other funds.
Long-term interfund loans are classified as interfund loan receivable/payable. A summary of interfund
receivables and payables at December 31, 2018 is as follows:
Receivable Payable
Short-term advances:
Major Funds:
G.O. Improvement Note of 2009A $ - $1,418
MSA Construction 1,418 -
Nonmajor Funds:
Closed Bond Fund 1,824 -
2040 Comp Plan Update - 1,824
$3,242 $3,242
Long-term interfund loans:
Major Funds:
G.O. Improvement Bonds of 2016B $ - $2,876,643
Sewer Fund 559,110 -
Nonmajor Funds:
Closed Bond Fund 778,413 -
Building and Facilities 2,317,533 -
Tax Increment Financing 1-11 - 778,413
$3,655,056 $3,655,056
81
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 12 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2018 are as follows:
Transfer In Transfer Out
Major Funds:
General Fund $ - $1,293,512
G.O. Improvement Note of 2009A - 647,371
G.O. Improvement Bonds of 2016B 278,137 -
Area and Unit Charge 38,000 407,022
MSA Construction 647,371 402,776
2018 Street Reconstruction 510,159 -
Sewer Fund - 242,145
Nonmajor governmental funds 2,792,773 1,273,614
Total $4,266,440 $4,266,440
During 2018, transfers were made to provide funding for capital improvement projects and capital outlay in
accordance with the City’s capital improvement plan. Transfers were also made to provide resources for debt
service payments, to close capital project funds and debt service funds, and to allocate financial resources to
funds that received benefit from services provided by another fund. These transfers are routine and consistent
with past practices.
82
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
Note 13 FUND BALANCE
At December 31, 2018, a summary of the governmental fund balance classifications is as follows:
G.O.Other
General Improvement Area and MSA 2018 Street Governmental
Fund Bonds of 2016B Unit Charge Construction Reconstruction Funds Total
Nonspendable:
Prepaid items $286,186 $ - $ - $ - $ - $1,998 $288,184
Corpus of permanent fund - - - - - 100,000 100,000
Total nonspendable 286,186 0 0 0 0 101,998 388,184
Restricted for:
Debt service - - - - - 3,740,709 3,740,709
Capital improvements - - - - 4,788,701 227,540 5,016,241
Economic development - - - - - 225,000 225,000
Blue Heron Days - - - - - 9,695 9,695
Narcotics and forfeiture funds - - - - - 204,357 204,357
K-9 Unit purposes - - - - - 37,189 37,189
Tax increment purposes - - - - - 557,211 557,211
Environmental purposes - - - - - 33,853 33,853
Total restricted 0 0 0 0 4,788,701 5,035,554 9,824,255
Committed for:
Recreation purposes - - - - - 18,497 18,497
Economic development - - - - - 89,541 89,541
Cable TV purposes - - - - - 74,575 74,575
Total committed 0 0 0 0 0 182,613 182,613
Assigned for:
Capital improvements - - 8,156,800 3,919,729 511,378 6,607,745 19,195,652
Unassigned 6,599,956 (2,150,105) - - - (785,354) 3,664,497
Total fund balance $6,886,142 ($2,150,105) $8,156,800 $3,919,729 $5,300,079 $11,142,556 $33,255,201
Note 14 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of
$4,744,742 and a net book value of $1,647,010, to New Creations Child Care and Learning Center, LLC. The lease is
dated July 1, 2014 and continues through June 30, 2019. As of December 31, 2018, future minimum lease payments
receivable in 2019 amount to $39,522. An agreement to extend the lease through June 30, 2029 is expected to be
signed during June 2019.
Note 15 TAX INCREMENT DISTRICTS
The City is the administrating authority for three tax increment districts. The City’s tax increment districts are
subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse
of tax increments could become a liability of the applicable fund. Management has indicated that they are not
aware of any instances of noncompliance which could have a material effect on the financial statements.
83
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
The following table reflects values at December 31, 2018:
TIF 1-5 TIF 1-11 TIF 1-12
Cottage TIF 1-10 Woods Clearwater
Homesteads Panattoni Edge Creek
Authorizing law M.S. 469 M.S. 469 M.S. 469 M.S. 469
Year established 1994 2004 2005 2006
Final year of district 2022 2023 2031 2026
Net tax capacity:
Original $128 $15,869 $25,291 $21,416
Current (payable 2018) 37,375 228,752 159,792 215,294
Captured - retained $37,247 $212,883 $134,501 $193,878
Note 16 COMMITMENTS AND CONTINGENCIES
A. LITIGATION
Existing and pending lawsuits, claims and other actions in which the City is a defendant are either
covered by insurance, of an immaterial amount, or, in the judgment of the City’s management, remotely
recoverable by plaintiffs.
B. FEDERAL AND STATE FUNDS
The City receives financial assistance from federal and state governmental agencies in the form of
grants. The disbursement of funds received under these programs generally requires compliance with
the terms and conditions specified in the grant agreements and is subject to audit by the grantor
agencies. Any disallowed claims resulting from such audits could become a liability of the applicable
fund. However, in the opinion of management, any such disallowed claims will not have a material
effect on any of the financial statements of the individual fund types included herein or on the overall
financial position of the City at December 31, 2018.
C. COMMITTED CONTRACTS
At December 31, 2018, the City had commitments of $4,912,466 for uncompleted construction
contracts. In addition, the City has entered into construction contracts during 2019 totaling $1,790,574.
Note 17 RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors
and omissions, injuries to employees and natural disasters.
Workers compensation coverage is provided through a pooled self-insurance program through the League of
Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject
84
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2018
to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers
Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not
subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of
coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if
any, is considered immaterial and not recorded until received or paid.
Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The
City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed
necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various
amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from
the insurance policies. These amounts are considered immaterial to the financial statements.
The City continues to carry commercial insurance for all other risks of loss, including disability and employee
health insurance.
There were no significant reductions in insurance from the previous year or settlements in excess of insurance
coverage for any of the past three fiscal years.
Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Boards (GASB) recently approved the following statements which
were not implemented for these financial statements:
Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for
reporting periods beginning after June 15, 2018.
Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods
beginning after December 15, 2018.
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning
after December 15, 2019.
Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements. The provisions of this Statement are effective for reporting periods beginning after June 15,
2018.
Statement No. 89 Accounting for Interest Cost Incurred before the End of a Construction Period. The
provisions of this Statement are effective for reporting periods beginning after December 15, 2019.
Statement No. 90 Majority Equity Interests. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2018.
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 84 and Statement No. 87 may have a material impact.
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
General propery taxes:
Current and delinquent $8,205,859 $7,132,701 $7,018,912 ($113,789)
Fiscal disparities - 1,058,158 1,126,142 67,984
Excess tax increments - - 1,253 1,253
Total general property taxes 8,205,859 8,190,859 8,146,307 (44,552)
Licenses and permits:
Business 130,515 149,515 163,235 13,720
Non-business 556,532 1,035,253 1,096,811 61,558
Total licenses and permits 687,047 1,184,768 1,260,046 75,278
Intergovernmental:
State:
Police state aid 224,660 254,660 256,885 2,225
OTS grant 74,546 14,000 14,395 395
MSA maintenance 240,000 260,000 261,197 1,197
Other 19,000 19,000 28,673 9,673
County solid waste grant 87,161 87,161 90,843 3,682
Total intergovernmental 645,367 634,821 651,993 17,172
Special assessments 9,000 4,000 1,777 (2,223)
Charges for services:
General government 15,571 22,071 16,860 (5,211)
Engineering and planning fees 15,000 27,000 37,065 10,065
Public safety 201,200 191,200 193,672 2,472
Public services 16,500 11,000 14,525 3,525
Investment management charge to other funds 50,000 50,000 55,000 5,000
Total charges for services 298,271 301,271 317,122 15,851
Fines and forfeits 134,132 120,600 114,991 (5,609)
Investment earnings 30,000 30,000 75,880 45,880
Miscellaneous:
Gas franchise fees 50,000 50,000 56,422 6,422
Building lease revenue 102,848 102,848 105,133 2,285
Refunds and reimbursements 50,000 50,000 31,153 (18,847)
Donations 5,000 500 500 -
Other 3,507 3,507 8,748 5,241
Total miscellaneous 211,355 206,855 201,956 (4,899)
Total revenues 10,221,031 10,673,174 10,770,072 96,898
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services 41,811 41,811 39,044 2,767
Other services and charges 20,000 17,000 18,629 (1,629)
Contractual services 17,500 17,500 17,433 67
Total mayor and city council 79,311 76,311 75,106 1,205
Elections:
Current:
Personal services 20,640 23,840 23,855 (15)
Supplies 5,400 5,600 6,170 (570)
Other services and charges 1,200 700 282 418
Contractual services - 500 1,004 (504)
Total elections 27,240 30,640 31,311 (671)
Administration:
Current:
Personal services 483,610 464,949 455,995 8,954
Other services and charges 20,360 18,360 23,609 (5,249)
Contractual services 7,959 7,959 4,619 3,340
Total administration 511,929 491,268 484,223 7,045
Finance:
Current:
Personal services 336,633 338,847 336,133 2,714
Supplies 1,000 1,000 776 224
Other services and charges 202,500 195,500 182,542 12,958
Contractual services 102,167 102,167 103,453 (1,286)
Total finance 642,300 637,514 622,904 14,610
Cable TV:
Current:
Personal services 2,500 2,500 2,728 (228)
Legal consultants:
Current:
Contractual services 135,000 135,000 141,407 (6,407)
Engineering/planning:
Current:
Contractual services 111,583 111,583 101,677 9,906
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
General government: (continued)
Charter commission:
Current:
Other services and charges 2,500 1,000 499 501
Government buildings:
Current:
Personal services 2,468 2,468 1,165 1,303
Supplies 40,546 38,546 34,233 4,313
Other services and charges 368,099 358,099 364,904 (6,805)
Contractual services 68,200 68,200 67,221 979
Capital outlay 11,000 54,010 54,010 -
Total government buildings 490,313 521,323 521,533 (210)
Total general government 2,002,676 2,007,139 1,981,388 25,751
Public safety:
Police:
Current:
Personal services 3,622,030 3,529,928 3,522,834 7,094
Supplies 35,825 35,825 26,195 9,630
Other services and charges 116,716 116,716 121,020 (4,304)
Contractual services 42,102 42,102 42,110 (8)
Capital outlay 17,602 17,602 17,596 6
Total police 3,834,275 3,742,173 3,729,755 12,418
Fire protection:
Current:
Personal services 500,003 467,344 439,336 28,008
Supplies 22,261 22,261 20,773 1,488
Other services and charges 47,405 47,405 47,050 355
Contractual services 30,851 30,851 30,332 519
Capital outlay 28,282 28,282 27,453 829
Total fire protection 628,802 596,143 564,944 31,199
Building inspection:
Current:
Personal services 242,670 264,343 277,136 (12,793)
Supplies 1,650 1,800 2,463 (663)
Other services and charges 8,920 9,270 7,271 1,999
Contractual services 3,325 3,325 65 3,260
Total building inspection 256,565 278,738 286,935 (8,197)
Total public safety 4,719,642 4,617,054 4,581,634 35,420
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Public services:
Streets:
Current:
Personal services 585,569 589,161 606,651 (17,490)
Supplies 149,302 119,302 105,513 13,789
Other services and charges 102,600 102,600 85,328 17,272
Contractual services 63,000 62,400 81,368 (18,968)
Capital outlay 9,698 9,698 9,698 -
Total streets 910,169 883,161 888,558 (5,397)
Fleet:
Current:
Personal services 123,552 124,328 129,039 (4,711)
Supplies 165,427 154,927 186,852 (31,925)
Other services and charges 66,042 66,042 74,581 (8,539)
Contractual services 76,000 76,000 68,288 7,712
Capital outlay 7,655 6,155 6,155 -
Total fleet 438,676 427,452 464,915 (37,463)
Parks:
Current:
Personal services 490,689 493,704 452,144 41,560
Supplies 25,500 25,500 20,422 5,078
Other services and charges 40,650 40,650 80,371 (39,721)
Contractual services 43,700 43,700 65,483 (21,783)
Capital outlay 1,000 1,000 1,000 -
Total parks 601,539 604,554 619,420 (14,866)
Recreation:
Current:
Personal services 241,291 195,186 203,979 (8,793)
Supplies 2,500 2,500 83 2,417
Other services and charges 15,800 15,800 16,141 (341)
Contractual services 1,000 1,000 280 720
Total recreation 260,591 214,486 220,483 (5,997)
Total public services 2,210,975 2,129,653 2,193,376 (63,723)
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Conservation of natural resources:
Forestry:
Current:
Personal services 37,153 37,408 37,177 231
Supplies 2,950 2,950 2,859 91
Other services and charges 380 380 354 26
Contractual services 20,000 20,000 20,287 (287)
Total forestry 60,483 60,738 60,677 61
Environmental:
Current:
Personal services 51,413 51,663 47,181 4,482
Supplies 1,000 700 221 479
Other services and charges 8,950 8,450 5,176 3,274
Contractual services 1,100 1,100 931 169
Total environmental 62,463 61,913 53,509 8,404
Solid waste abatement:
Current:
Personal services 54,561 54,776 52,255 2,521
Supplies 1,400 1,400 2,239 (839)
Other services and charges 14,700 14,700 8,659 6,041
Contractual services 16,500 16,500 21,687 (5,187)
Total solid waste abatement 87,161 87,376 84,840 2,536
Total conservation of natural resources 210,107 210,027 199,026 11,001
Community development:
Community development:
Current:
Personal services 203,861 204,110 204,532 (422)
Supplies 100 100 49 51
Other services and charges 7,900 7,900 5,627 2,273
Contractual services 900 900 625 275
Total community development 212,761 213,010 210,833 2,177
Economic development:
Current:
Personal services 21,627 14,627 13,277 1,350
Other services and charges 90,500 85,500 90,298 (4,798)
Contractual services 700 700 695 5
Total economic development 112,827 100,827 104,270 (3,443)
92
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Planning and zoning commission:
Current:
Personal services 104,693 105,402 105,516 (114)
Supplies 200 200 30 170
Other services and charges 16,250 16,250 11,991 4,259
Contractual services 38,000 13,000 19,279 (6,279)
Total planning and zoning commission 159,143 134,852 136,816 (1,964)
Total community development 484,731 448,689 451,919 (3,230)
Other:
Contingency 100,000 - - -
Total expenditures 9,728,131 9,412,562 9,407,343 5,219
Revenues over (under) expenditures 492,900 1,260,612 1,362,729 102,117
Other financing sources (uses):
Transfers out (1,217,900) (1,292,900) (1,293,512)(612)
Total other financing sources (uses)(1,217,900) (1,292,900) (1,293,512)(612)
Net change in fund balance ($725,000) ($32,288) 69,217 $101,505
Fund balance - January 1 6,816,925
Fund balance - December 31 $6,886,142
93
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
For The Year Ended December 31, 2018
2018 2017
Total OPEB liability:
Service cost $16,547 $16,990
Interest 21,355 22,542
Changes of benefit terms - -
Differences between expected and actual experience - (51,083)
Changes in assumptions - -
Benefit payments (27,798)(31,536)
Net change in total OPEB liability 10,104 (43,087)
Total OPEB liability - beginning 746,540 789,627
Total OPEB liability - ending $756,644 $746,540
Covered-employee payroll $3,240,932 $3,499,836
Total OPEB liability as a percentage of covered-employee payroll 23.3%21.3%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2017 and is intended to
show a ten year trend. Additional years will be added as they become available.
94
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2018
City's City's
Proportionate Proportionate Plan
State's Share of the Share of the Fiduciary
Proportionate Net Pension Net Net
Share Liability Pension Position
City's City's (Amount) and the State's Liability as a
Proportionate Proportionate of the Net Proportionate as a Percentage
Share Share (Amount) Pension Share of the Net Percentage of the
Measurement Fiscal Year (Percentage) of of the Net Liability Pension Liability of its Total
Date Ending the Net Pension Pension Associated Associated with Covered Covered Pension
June 30, December 31, Liability Liability (a) with City (b) City (a+b) Payroll (c) Payroll ((a+b)/c) Liability
2015 2015 0.0410%$2,124,883 $ - $2,124,883 $2,407,426 88.3%78.2%
2016 2016 0.0387%3,142,248 41,033 3,183,281 2,401,546 132.6% 68.9%
2017 2017 0.0414%2,642,949 33,230 2,676,179 2,666,880 100.3% 75.9%
2018 2018 0.0381%2,113,632 69,419 2,183,051 2,563,053 85.2%79.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
95
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Year Ended December 31, 2018
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered
December 31,(a)Contribution (b) (a-b)(c)Payroll (b/c)
2015 $182,102 $182,102 $ - $2,428,027 7.5%
2016 193,684 193,684 - 2,582,452 7.5%
2017 192,510 192,510 - 2,566,800 7.5%
2018 202,526 202,526 - 2,700,347 7.5%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
96
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2018
Proportionate Share
Proportionate of the Net Pension Plan Fiduciary
Proportion Share (Amount) Liability as a Net Position as
Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage
Date Ending the Net Pension Pension Covered Covered of the Total
June 30, December 31, Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability
2015 2015 0.2490%$2,829,223 $2,284,973 123.8%86.6%
2016 2016 0.2590%10,394,121 2,495,778 416.5%63.9%
2017 2017 0.2570%3,469,806 2,643,314 131.3%85.4%
2018 2018 0.2426%2,585,866 2,556,951 101.1%88.8%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
97
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Year Ended December 31, 2018
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered
December 31,(a)Contribution (b) (a-b)(c)Payroll (b/c)
2015 $393,551 $393,551 $ - $2,429,327 16.2%
2016 424,970 424,970 - 2,623,271 16.2%
2017 416,665 416,665 - 2,572,006 16.2%
2018 420,821 420,821 - 2,597,660 16.2%
The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to
show a ten year trend. Additional years will be reported as they become available.
98
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2018
Fiscal year ending and measurement date December 31, 2018 December 31, 2017
Total pension liability:
Service cost $48,182 $47,952
Interest on pension liability 8,754 6,191
Changes of benefit terms - -
Differences between expected and actual experience 69,760 (11,672)
Changes of assumptions - -
Benefit payments, including refunds of employee contributions - -
Net change in total pension liability 126,696 42,471
Total pension liability - beginning 97,711 55,240
Total pension liability - ending (a)$224,407 $97,711
Plan fiduciary net position:
Contributions - employer $64,869 $58,800
Contributions - State of Minnesota 118,144 113,797
Net investment income (18,696)9,153
Benefit payments, including refunds of employee contributions - -
Administrative expense (702)(572)
Net change in plan fiduciary net position 163,615 181,178
Plan fiduciary net position - beginning 225,705 44,527
Plan fiduciary net position - ending (b)$389,320 $225,705
Net pension liability/(asset) - ending (a) - (b)($164,913)($127,994)
Plan fiduciary net position as a percentage of the total pension liability 173%231%
Covered payroll N/A N/A
Net pension liability as a percentage of covered employee payroll N/A N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does
not meet the definition of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
99
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 18
SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Year Ended December 31, 2018
Statutorily Contributions in Contribution Contributions as a
Fiscal Year Required Relation to the Deficiency Covered Percentage of
Ending Contribution Statutorily Required (Excess)Payroll Covered-Employee
December 31,(a)Contribution (b)(a-b)(c)Payroll (b/c)
2016 $ - $44,394 ($44,394) N/A N/A
2017 - 58,800 (58,800) N/A N/A
2018 - 64,869 (64,869) N/A N/A
N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does not
meet the defintion of covered payroll.
The City created its own fire department in 2016. Therefore, information prior to 2016 is not available.
100
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2018
Note A LEGAL COMPLIANCE – BUDGETS
The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted
in the United States of America. The legal level of budgetary control is at the department level for the General
Fund.
Note B OPEB INFORMATION
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay
related benefits. There are no factors that affect trends in the amounts reported, such as changes of benefit
terms or assumptions.
Note C PENSION INFORMATION
PERA – General Employees Retirement Fund
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year
thereafter to 1.25% per year.
2017 Changes in Actuarial Assumptions:
The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and
60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for
active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested
deferred member liability.
The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years
to 1.0% per year through 2044 and 2.5% per year thereafter.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was
changed from 7.9% to 7.5%.
Other assumptions were changed pursuant to the experience study dated June 30, 2015. The
assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25%
for payroll growth and 2.50% for inflation.
101
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2018
PERA – Public Employees Police and Fire Fund
2018 Changes in Actuarial Assumptions
The mortality projection scale was changed from MP-2016 to MP-2017.
2017 Changes in Actuarial Assumptions:
The single discount rate was changed from 5.6% to 7.5%.
Assumed salary increases were changed as recommended in the June 30, 2016 experience study.
The net effect is proposed rates that average 0.34 percent lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred
members. The CSA has been changed to 33 percent for vested members and 2 percent for non-
vested members.
The base mortality table for healthy annuitants was changed from the RP-2000 fully generational
table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted
by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-
2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled
mortality table to the mortality tables assumed for healthy retirees.
Assumed termination rates were decreased to 3% for the first three years of service. Rates beyond
the select period of three years were adjusted, resulting in more expected terminations overall.
Assumed percentage of married female members was decreased from 65% to 60%.
Assumed age difference was changed from separate assumptions for male members (wives
assumed to be three years younger) and female members (husbands assumed to be four years
older) to the assumption that males are two years older than females.
The assumed percentage of female members electing Joint and Survivor annuities was increased.
The assumed post-retirement benefit increase rate was changed from 1.00% for all years to 1.00%
per year through 2064 and 2.50% thereafter.
2016 Changes in Actuarial Assumptions:
The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037
and 2.5% per year thereafter to 1.0% per year for all future years.
The assumed investment return was changed from 7.9% to 7.5%. The single discount rate
changed from 7.9% to 5.6%.
The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to
3.25% for payroll growth and 2.50% for inflation.
Single Employer – Fire Division
There are no factors that affect trends in the amounts reported, such as change of benefit terms or
assumptions. With only three years reported in the RSI, there is no additional information to include in the
notes.
102
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS AND SCHEDULES
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
PERMANENT FUNDS
Permanent Funds account for financial resources that are legally restricted to the extent that only
earnings, and not the principal, may be used for purposes that support the City’s programs.
The City maintains one permanent fund – the Environment and Stewardship Fund. This fund
accounts for the use of funds received for environmental maintenance and improvements in the
Foxborough area, as well as funds received for the Preserve area.
105
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET Statement 19
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2018
Permanent
Fund Total
Environment and Nonmajor
Special Debt Capital Stewardship Governmental
Revenue Service Project Fund Funds
Assets
Cash and investments $447,105 $3,729,473 $4,521,022 $133,853 $8,831,453
Accounts receivable - net - - 5,582 - 5,582
Prepaid items 1,998 - - - 1,998
Advances to other funds - - 1,824 - 1,824
Taxes receivable:
Due from county - 18,909 113 - 19,022
Delinquent - 12,096 1,856 - 13,952
Special assessments receivable:
Due from county - 31,047 1,799 - 32,846
Delinquent - 1,273 13,341 - 14,614
Deferred - 252,296 252,291 - 504,587
Interfund loan receivable - - 3,095,946 - 3,095,946
Long-term note receivable 225,000 - - - 225,000
Total assets $674,103 $4,045,094 $7,893,774 $133,853 $12,746,824
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $13,251 $900 $151,699 $ - $165,850
Due to other governments - 37,820 7,113 - 44,933
Advances from other funds - - 1,824 - 1,824
Contracts payable - - 80,095 - 80,095
Interfund loan payable - - 778,413 - 778,413
Total liabilities 13,251 38,720 1,019,144 0 1,071,115
Deferred inflows of resources:
Unavailable revenue - 265,665 267,488 - 533,153
Fund balance:
Nonspendable 1,998 - - 100,000 101,998
Restricted 476,241 3,740,709 784,751 33,853 5,035,554
Committed 182,613 - - - 182,613
Assigned - - 6,607,745 - 6,607,745
Unassigned - - (785,354) - (785,354)
Total fund balance 660,852 3,740,709 6,607,142 133,853 11,142,556
Total liabilities, deferred inflows
of resources, and fund balance $674,103 $4,045,094 $7,893,774 $133,853 $12,746,824
106
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 20
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2018
Permanent
Fund Total
Environment and Nonmajor
Special Debt Capital Stewardship Governmental
Revenue Service Project Fund Funds
Revenues:
General property taxes $ - $1,607,139 $92 $ - $1,607,231
Tax increment - - 462,223 - 462,223
Special assessments - 643,196 179,971 - 823,167
Charges for services 132,137 - 289,680 - 421,817
Fines and forfeits 22,949 - - - 22,949
Investment earnings 7,154 46,694 79,921 1,887 135,656
Miscellaneous 58,384 37,820 16,569 8,650 121,423
Total revenues 220,624 2,334,849 1,028,456 10,537 3,594,466
Expenditures:
Current:
General government - - 21,531 - 21,531
Public safety 37,318 - 2,054 - 39,372
Public services 79,352 - 847,026 - 926,378
Community development 611 - 120,380 - 120,991
Capital outlay:
General government - - 189,798 - 189,798
Public safety 119,378 - 63,101 - 182,479
Public services 67,247 - 580,328 - 647,575
Debt service:
Principal - 2,650,600 - - 2,650,600
Interest and fiscal charges - 412,423 3,011 - 415,434
Total expenditures 303,906 3,063,023 1,827,229 0 5,194,158
Revenues over (under) expenditures (83,282) (728,174) (798,773) 10,537 (1,599,692)
Other financing sources (uses):
Transfers in 612 793,040 1,999,121 - 2,792,773
Transfers out - (547,956) (725,658) - (1,273,614)
Issuance of debt - - 303,900 - 303,900
Proceeds from sale of capital assets 3,631 - 45,760 - 49,391
Total other financing sources (uses)4,243 245,084 1,623,123 0 1,872,450
Net change in fund balance (79,039) (483,090) 824,350 10,537 272,758
Fund balance - January 1 739,891 4,223,799 5,782,792 123,316 10,869,798
Fund balance - December 31 $660,852 $3,740,709 $6,607,142 $133,853 $11,142,556
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SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for particular purposes. The City maintained the following
nonmajor Special Revenue Funds during the year.
Program Recreation – established to account for various self-supporting recreational
programs.
Economic Development Authority – established to account for the receipt and uses of
funds for economic development purposes.
Cable TV Fund – established to account for activities relating to Cable TV.
Blue Heron Days – established to account for the activities associated with the Blue
Heron Days festival.
Federal Narcotics – established to account for activities associated with the receipt and
use of federal narcotics forfeitures.
State Narcotics – established to account for activities associated with the receipt and use
of state narcotics forfeitures
DUI Forfeitures – established to account for activities associated with the receipt and use
of DUI forfeitures.
Other Forfeitures – established to account for activities associated with the receipt and
use of other forfeitures
K-9 Unit – accounts for donations received by the City which are restricted for K-9 Unit
purposes.
109
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2018
203
201 Economic
Program Development
Recreation Authority
Assets
Cash and investments $22,948 $89,541
Prepaid items 1,744 -
Long-term note receivable - 225,000
Total assets $24,692 $314,541
Liabilities and Fund Balance
Liabilities:
Accounts payable $4,451 $ -
Fund balance:
Nonspendable 1,744 -
Restricted - 225,000
Committed 18,497 89,541
Total fund balance 20,241 314,541
Total liabilities and fund balance $24,692 $314,541
110
Statement 21
Total
Nonmajor
Special
204 Cable 205 Blue 206 Federal 207 State 208 DUI 209 Other 211 K-9 Revenue
TV Fund Heron Days Narcotics Narcotics Forfeitures Forfeitures Unit Funds
$77,044 $9,695 $132,310 $23,837 $53,667 $874 $37,189 $447,105
- 254 - - - - - 1,998
- - - - - - - 225,000
$77,044 $9,949 $132,310 $23,837 $53,667 $874 $37,189 $674,103
$2,469 $ - $1,235 $4,911 $ - $185 $ - $13,251
- 254 - - - - - 1,998
- 9,695 131,075 18,926 53,667 689 37,189 476,241
74,575 - - - - - - 182,613
74,575 9,949 131,075 18,926 53,667 689 37,189 660,852
$77,044 $9,949 $132,310 $23,837 $53,667 $874 $37,189 $674,103
111
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR SPECIAL REVENUE FUNDS
For The Year Ended December 31, 2018
203
201 Economic
Program Development
Recreation Authority
Revenues:
Charges for services $68,090 $ -
Fines and forfeits - -
Investment earnings 309 1,289
Miscellaneous 1,557 -
Total revenues 69,956 1,289
Expenditures:
Current:
Public safety - -
Public services 54,379 -
Community development - 611
Capital outlay:
Public safety - -
Public services - -
Total expenditures 54,379 611
Revenues over (under) expenditures 15,577 678
Other financing sources (uses):
Transfers in - 612
Proceeds from sale of capital assets - -
Total other financing sources (uses)0 612
Net change in fund balance 15,577 1,290
Fund balance - January 1 4,664 313,251
Fund balance - December 31 $20,241 $314,541
112
Statement 22
Total
Nonmajor
Special
204 Cable 205 Blue 206 Federal 207 State 208 DUI 209 Other 211 K-9 Revenue
TV Fund Heron Days Narcotics Narcotics Forfeitures Forfeitures Unit Funds
$64,047 $ - $ - $ - $ - $ - $ - $132,137
- - 3,687 5,890 12,032 1,340 - 22,949
1,812 137 2,526 353 723 5 - 7,154
- 19,638 - - - - 37,189 58,384
65,859 19,775 6,213 6,243 12,755 1,345 37,189 220,624
- - 19,303 14,584 2,775 656 - 37,318
7,983 16,990 - - - - - 79,352
- - - - - - - 611
- - 118,104 - 1,274 - - 119,378
67,247 - - - - - - 67,247
75,230 16,990 137,407 14,584 4,049 656 0 303,906
(9,371) 2,785 (131,194) (8,341) 8,706 689 37,189 (83,282)
- - - - - - - 612
- - - 3,631 - - - 3,631
0 0 0 3,631 0 0 0 4,243
(9,371) 2,785 (131,194) (4,710) 8,706 689 37,189 (79,039)
83,946 7,164 262,269 23,636 44,961 - - 739,891
$74,575 $9,949 $131,075 $18,926 $53,667 $689 $37,189 $660,852
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114
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment
of, interest, principal and related costs on general long-term debt. The City’s Debt Service Funds
account for four types of bonded indebtedness:
General Debt Bonds – are repaid primarily from property taxes.
Improvement Bonds and Notes – are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds – are repaid primarily from lease revenues received
from the EDA leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds – these bonds were issued to finance various improvements and will be
repaid primarily from pledged revenues derived from the constructed assets.
Capital Note – this note was issued to finance cable communications equipment and will
be repaid from revenues derived from franchise fees.
115
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2018
334 G.O.
332 G.O. Improvement 336 G.O.
315 TIF and Utility 335 G.O. Improvement
Certificates Bonds Bonds Bonds Bonds
of Indebtedness of 2007A of 2010A of 2012A of 2013A
Assets
Cash and investments $210,223 $149,696 $ - $263,837 $426,587
Taxes receivable:
Due from county 6,634 - - 2,074 -
Delinquent 4,363 - - 1,380 -
Special assessments receivable:
Due from county - - - - 12,303
Delinquent - - - - -
Deferred - - 231 - 252,065
Total assets $221,220 $149,696 $231 $267,291 $690,955
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $ - $ - $ -
Due to other governments - - - - -
Total liabilities 00000
Deferred inflows of resources:
Unavailable revenue 4,363 - 231 1,380 252,065
Fund balance:
Restricted 216,857 149,696 - 265,911 438,890
Total liabilities, deferred inflows of
resources, and fund balance $221,220 $149,696 $231 $267,291 $690,955
116
Statement 23
339 EDA 341 G.O. 343 G.O. Total
337 G.O. Lease 340 G.O. Utility Tax Nonmajor
Improvement 338 G.O. Revenue Capital Revenue Abatement Debt
Bonds Bonds Bonds Note Bonds Bonds Service
of 2014A of 2015A of 2015B of 2016A of 2016A of 2016C Funds
$1,162,052 $593,905 $280,071 $38,410 $261,726 $342,966 $3,729,473
- 3,212 3,739 - - 3,250 18,909
- 1,913 2,226 - - 2,214 12,096
18,744 - - - - - 31,047
1,273 - - - - - 1,273
- - - - - - 252,296
$1,182,069 $599,030 $286,036 $38,410 $261,726 $348,430 $4,045,094
$ - $ - $ - $ - $450 $450 $900
- - - 37,820 - - 37,820
0 0 0 37,820 450 450 38,720
1,273 1,913 2,226 - - 2,214 265,665
1,180,796 597,117 283,810 590 261,276 345,766 3,740,709
$1,182,069 $599,030 $286,036 $38,410 $261,726 $348,430 $4,045,094
117
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2018
334 G.O.
331 G.O. 332 G.O. Improvement
315 CIP TIF and Utility 335 G.O.
Certificates of Bonds Bonds Bonds Bonds
Indebtedness of 2006E of 2007A of 2010A of 2012A
Revenues:
General property taxes $562,872 $1,260 $ - $ - $175,884
Special assessments 91 85 - 247 17,608
Investment earnings 5,320 9,016 - - 2,611
Miscellaneous - - - - -
Total revenues 568,283 10,361 0 247 196,103
Expenditures:
Debt service:
Principal 519,250 425,000 190,000 105,000 230,000
Interest and fiscal charges 18,400 8,900 62,776 8,875 18,460
Total expenditures 537,650 433,900 252,776 113,875 248,460
Revenues over (under) expenditures 30,633 (423,539) (252,776) (113,628) (52,357)
Other financing sources (uses):
Transfers in - - 252,776 113,034 -
Transfers out - (547,956) - - -
Total other financing sources (uses)0 (547,956) 252,776 113,034 0
Net change in fund balance 30,633 (971,495)0 (594) (52,357)
Fund balance - January 1 186,224 971,495 149,696 594 318,268
Fund balance - December 31 $216,857 $0 $149,696 $0 $265,911
118
Statement 24
339 EDA 341 G.O. 343 G.O. Total
336 G.O. 337 G.O. Lease 340 G.O. Utility Tax Nonmajor
Improvement Improvement 338 G.O. Revenue Capital Revenue Abatement Debt
Bonds Bonds Bonds Bonds Note Bonds Bonds Service
of 2013A of 2014A of 2015A of 2015B of 2016A of 2016A of 2016C Funds
$ - $ - $273,420 $318,282 $ - $ - $275,421 $1,607,139
222,639 402,403 34 40 - - 49 643,196
4,658 13,020 4,660 2,708 337 1,507 2,857 46,694
- - - - 37,820 - - 37,820
227,297 415,423 278,114 321,030 38,157 1,507 278,327 2,334,849
60,000 370,000 195,000 170,000 31,350 130,000 225,000 2,650,600
15,160 30,332 63,962 131,538 6,470 27,750 19,800 412,423
75,160 400,332 258,962 301,538 37,820 157,750 244,800 3,063,023
152,137 15,091 19,152 19,492 337 (156,243) 33,527 (728,174)
- 130,224 127,289 5,953 - 163,764 - 793,040
- - - - - - - (547,956)
0 130,224 127,289 5,953 0 163,764 0 245,084
152,137 145,315 146,441 25,445 337 7,521 33,527 (483,090)
286,753 1,035,481 450,676 258,365 253 253,755 312,239 4,223,799
$438,890 $1,180,796 $597,117 $283,810 $590 $261,276 $345,766 $3,740,709
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120
CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds. The City maintained the following nonmajor Capital
Project Funds during the year:
Closed Bond Fund – to account for excess funds from matured bond issues.
Building and Facilities – to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving – to account for proceeds from Equipment Certificates and
funds held to purchase capital equipment.
Office Equipment Revolving – to account for the receipt and use of funds for office
equipment purchases.
Dedicated Parks – to account for the receipts and use of monies collected from park
dedication fees.
Tax Increment Financing Funds – to account for development projects financed with tax
increments.
Street Maintenance – to account for money received from levies, assessments, and
developer charges for future street maintenance projects.
Surface Water Management – to account for the financing of surface water management
and storm water improvements.
Street Reconstruction – to account for the financing of future reconstruction of City
streets.
Surface Water Maintenance – to account for surface water maintenance activities.
Park and Trail Improvements – to account for park and trail improvement activities.
Birch Street / Centerville Road Improvements – this fund accounts for activities relating
to the construction of street improvements and sanitary sewer in conjunction with Fire
House #2.
2040 Comp Plan Update – this fund accounts for the financing sources received and
expenditures incurred to update the City’s 2040 Comprehensive Plan.
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122
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 25
NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2
December 31, 2018
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Assets
Cash and investments $223,139 $197,518 $502,823 $40,998 $254,652
Accounts receivable - net - 5,582 - - -
Advances to other funds 1,824 - - - -
Taxes receivable:
Due from county 113 - - - -
Delinquent 1,856 - - - -
Special assessments receivable:
Due from county - - - - -
Delinquent 7,408 - - - -
Deferred 22,073 - - - -
Interfund loan receivable 778,413 2,317,533 - - -
Total assets $1,034,826 $2,520,633 $502,823 $40,998 $254,652
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $2,500 $ - $ - $5,398
Due to other governments 3,103 - - - -
Advances from other funds - - - - -
Contracts payable - - - - 21,714
Interfund loan payable - - - - -
Total liabilities 3,103 2,500 0 0 27,112
Deferred inflows of resources:
Unavailable revenue 31,337 - - - -
Fund balance:
Restricted - - - - 227,540
Assigned 1,000,386 2,518,133 502,823 40,998 -
Unassigned - - - - -
Total fund balance 1,000,386 2,518,133 502,823 40,998 227,540
Total liabilities, deferred inflows of
resources, and fund balance $1,034,826 $2,520,633 $502,823 $40,998 $254,652
123
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2018
411 Tax 417 Tax 418 Tax 419 Tax
Increment Increment Increment Increment
Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12
Assets
Cash and investments $338,560 $192,815 $ - $82,857
Accounts receivable - net - - - -
Advances to other funds - - - -
Taxes receivable:
Due from county - - - -
Delinquent - - - -
Special assessments receivable:
Due from county - - - -
Delinquent - - - -
Deferred - - - -
Interfund loan receivable - - - -
Total assets $338,560 $192,815 $0 $82,857
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $1,548 $55,732
Due to other governments 405 460 2,721 424
Advances from other funds - - - -
Contracts payable - - - -
Interfund loan payable - - 778,413 -
Total liabilities 405 460 782,682 56,156
Deferred inflows of resources:
Unavailable revenue - - - -
Fund balance:
Restricted 338,155 192,355 - 26,701
Assigned - - - -
Unassigned - - (782,682) -
Total fund balance 338,155 192,355 (782,682)26,701
Total liabilities, deferred inflows of
resources, and fund balance $338,560 $192,815 $0 $82,857
124
Statement 25
Page 2 of 2
Total
421 422 Surface 424 Surface 425 484 2040 Nonmajor
Street Water 423 Street Water Park and Trail Comp Plan Capital
Maintenance Management Reconstruction Maintenance Improvements Update Project Funds
$336,403 $1,004,245 $740,543 $168,189 $438,280 $ - $4,521,022
- - - - - - 5,582
- - - - - - 1,824
- - - - - - 113
- - - - - - 1,856
- 1,799 - - - - 1,799
- 5,933 - - - - 13,341
- 163,296 66,922 - - - 252,291
- - - - - - 3,095,946
$336,403 $1,175,273 $807,465 $168,189 $438,280 $0 $7,893,774
$8,406 $76,358 $ - $909 $ - $848 $151,699
- - - - - - 7,113
- - - - - 1,824 1,824
- - - 58,381 - - 80,095
- - - - - - 778,413
8,406 76,358 0 59,290 0 2,672 1,019,144
- 169,229 66,922 - - - 267,488
- - - - - - 784,751
327,997 929,686 740,543 108,899 438,280 - 6,607,745
- - - - - (2,672) (785,354)
327,997 929,686 740,543 108,899 438,280 (2,672) 6,607,142
$336,403 $1,175,273 $807,465 $168,189 $438,280 $0 $7,893,774
125
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2018
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Revenues:
General property taxes $92 $ - $ - $ - $ -
Tax increment - - - - -
Special assessments 21,654 - - - -
Charges for services - 190,469 - - 89,275
Investment earnings 9,045 3,026 9,069 845 5,613
Miscellaneous - - 14,214 1,129 1,226
Total revenues 30,791 193,495 23,283 1,974 96,114
Expenditures:
Current:
General government 3,804 1,050 - 16,677 -
Public safety - - - 2,054 -
Public services - - - 1,294 -
Community development - - - 1,695 -
Capital outlay:
General government - 181,559 - 8,239 -
Public safety - - 63,101 - -
Public services - - 232,054 - 224,223
Debt service:
Interest and fiscal charges - - - - 3,011
Total expenditures 3,804 182,609 295,155 29,959 227,234
Revenues over (under) expenditures 26,987 10,886 (271,872) (27,985) (131,120)
Other financing sources (uses):
Transfers in 547,956 - - 25,000 50,000
Transfers out (186,967) - - - -
Issuance of debt - - 303,900 - -
Proceeds from sale of capital assets - - 45,760 - -
Total other financing sources (uses)360,989 0 349,660 25,000 50,000
Net change in fund balance 387,976 10,886 77,788 (2,985) (81,120)
Fund balance - January 1 612,410 2,507,247 425,035 43,983 308,660
Fund balance - December 31 $1,000,386 $2,518,133 $502,823 $40,998 $227,540
126
Statement 26
Page 1 of 2
411 Tax 417 Tax 418 Tax 419 Tax 421 422 Surface
Increment Increment Increment Increment Street Water 423 Street
Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Maintenance Management Reconstruction
$ - $ - $ - $ - $ - $ - $ -
44,245 163,085 115,052 139,841 - - -
- - - - - 134,547 23,770
- - - - 9,936 - -
4,455 3,726 - 295 7,407 15,094 10,499
- - - - - - -
48,700 166,811 115,052 140,136 17,343 149,641 34,269
- - - - - - -
- - - - - - -
- - - - 667,488 27,401 -
564 1,047 4,683 112,391 - - -
- - - - - - -
- - - - - - -
- - - - - 94,051 -
- - - - - - -
564 1,047 4,683 112,391 667,488 121,452 0
48,136 165,764 110,369 27,745 (650,145)28,189 34,269
- - - - 717,900 8,265 -
- (163,085) (115,052) - - (87,000) -
- - - - - - -
- - - - - - -
0 (163,085) (115,052)0 717,900 (78,735)0
48,136 2,679 (4,683)27,745 67,755 (50,546)34,269
290,019 189,676 (777,999)(1,044)260,242 980,232 706,274
$338,155 $192,355 ($782,682)$26,701 $327,997 $929,686 $740,543
127
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 26
EXPENDITURES AND CHANGES IN FUND BALANCE Page 2 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2018
Total
424 Surface 425 481 Birch St/ 484 2040 Nonmajor
Water Park and Trail Centerville Rd Comp Plan Capital
Maintenance Improvements Improvements Update Project Funds
Revenues:
General property taxes $ - $ - $ - $ - $92
Tax increment - - - - 462,223
Special assessments - - - - 179,971
Charges for services - - - - 289,680
Investment earnings 2,605 6,280 1,962 - 79,921
Miscellaneous - - - - 16,569
Total revenues 2,605 6,280 1,962 0 1,028,456
Expenditures:
Current:
General government - - - - 21,531
Public safety - - - - 2,054
Public services 119,545 - - 31,298 847,026
Community development - - - - 120,380
Capital outlay:
General government - - - - 189,798
Public safety - - - - 63,101
Public services - 30,000 - - 580,328
Debt service:
Interest and fiscal charges - - - - 3,011
Total expenditures 119,545 30,000 0 31,298 1,827,229
Revenues over (under) expenditures (116,940) (23,720)1,962 (31,298) (798,773)
Other financing sources (uses):
Transfers in 125,000 500,000 - 25,000 1,999,121
Transfers out - (38,000) (135,554) - (725,658)
Issuance of debt - - - - 303,900
Proceeds from sale of capital assets - - - - 45,760
Total other financing sources (uses)125,000 462,000 (135,554)25,000 1,623,123
Net change in fund balance 8,060 438,280 (133,592)(6,298)824,350
Fund balance - January 1 100,839 - 133,592 3,626 5,782,792
Fund balance - December 31 $108,899 $438,280 $0 ($2,672) $6,607,142
128
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION Statement 27
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2018
Budgeted Amounts
2018 Actual
Amounts
Variance
with Final
Budget -
Positive
(Negative)
Original Final
Revenues:
Charges for services $100,610 $100,610 $68,090 ($32,520)
Investment earnings - - 309 309
Miscellaneous - - 1,557 1,557
Total revenues 100,610 100,610 69,956 (30,654)
Expenditures:
Public services:
Current:
Personal services 43,725 43,725 20,764 22,961
Supplies 40,980 40,980 20,545 20,435
Other services and charges - - 350 (350)
Contractual services 16,800 16,800 12,720 4,080
Capital outlay 500 500 - 500
Total expenditures 102,005 102,005 54,379 47,626
Revenues over (under) expenditures (1,395) (1,395) 15,577 16,972
Fund balance - January 1 4,664
Fund balance - December 31 $20,241
129
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 28
AGENCY FUNDS
For The Year Ended December 31, 2018
Balance Balance
January 1,December 31,
2018 Additions Deletions 2018
Assets:
Cash and investments $1,719,511 $268,409 $537,617 $1,450,303
Liabilities:
Deposits payable $1,719,511 $268,409 $537,617 $1,450,303
130
STATISTICAL SECTION (UNAUDITED)
131
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Governmental activities:
Net investment in capital assets $23,400,453 $22,562,217 $24,600,103 $22,166,342
Restricted 9,414,474 8,428,025 11,598,803 11,595,112
Unrestricted 15,926,322 16,738,885 13,463,210 17,639,038
Total governmental activities net position $48,741,249 $47,729,127 $49,662,116 $51,400,492
Business-type activities:
Net investment in capital assets $30,071,840 $29,648,461 $29,216,866 $28,798,095
Unrestricted 10,112,207 10,728,626 11,201,362 12,102,013
Total business-type activities net position $40,184,047 $40,377,087 $40,418,228 $40,900,108
Primary government:
Net investment in capital assets $53,472,293 $52,210,678 $53,816,969 $50,964,437
Restricted 9,414,474 8,428,025 11,598,803 11,595,112
Unrestricted 26,038,529 27,467,511 24,664,572 29,741,051
Total primary government net position $88,925,296 $88,106,214 $90,080,344 $92,300,600
GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability
and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated.
GASB 75 was implemented in 2017. Net position was restated for 2016 to reflect the reporting of the OPEB liability
and OPEB related deferred inflows of resources. Net position for years prior to 2016 was not restated.
132
Table 1
2013 2014 2015 2016 2017 2018
$22,241,821 $19,540,807 $18,230,746 $18,597,344 $22,868,259 $24,640,555
11,000,033 8,666,357 8,635,293 13,342,852 11,730,147 10,579,817
16,849,636 20,527,704 13,888,120 10,187,254 12,017,212 16,577,520
$50,091,490 $48,734,868 $40,754,159 $42,127,450 $46,615,618 $51,797,892
$28,423,284 $27,556,022 $29,127,829 $31,860,610 $31,831,950 $32,709,079
12,999,182 13,888,278 14,672,630 13,863,447 14,846,045 15,570,827
$41,422,466 $41,444,300 $43,800,459 $45,724,057 $46,677,995 $48,279,906
$50,665,105 $47,096,829 $47,358,575 $50,457,954 $54,700,209 $57,349,634
11,000,033 8,666,357 8,635,293 13,342,852 11,730,147 10,579,817
29,848,818 34,415,982 28,560,750 24,050,701 26,863,257 32,148,347
$91,513,956 $90,179,168 $84,554,618 $87,851,507 $93,293,613 $100,077,798
133
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Expenses
Governmental activities:
General government $2,201,439 $1,987,415 $1,990,137 $1,883,961
Public safety 4,299,366 3,971,261 4,019,101 4,046,415
Public services 5,341,113 5,092,970 9,329,451 6,795,150
Conservation of natural resources 215,607 197,571 139,544 184,051
Community development 1,005,997 1,105,254 617,747 430,121
Interest and fees on long-term debt 928,668 1,064,172 927,535 837,755
Total governmental activities expenses 13,992,190 13,418,643 17,023,515 14,177,453
Business-type activities:
Water 1,089,569 1,045,901 966,643 949,121
Sewer 1,432,107 1,466,847 1,638,063 1,527,637
Total business-type activities expenses 2,521,676 2,512,748 2,604,706 2,476,758
Total primary government expenses $16,513,866 $15,931,391 $19,628,221 $16,654,211
Program revenues
Governmental activities:
Charges for services:
General government $101,741 $98,403 $103,687 $129,151
Public safety 725,747 691,005 713,985 642,745
Public services 594,168 605,207 593,263 668,128
Conservation of natural resources 3,858 4,153 4,392 19,297
Community development 8,667 14,148 5,138 16,940
Operating grants and contributions 682,797 617,450 593,798 450,179
Capital grants and contributions 1,357,015 1,388,984 7,347,613 5,125,693
Total governmental activities program revenues 3,473,993 3,419,350 9,361,876 7,052,133
Business-type activities:
Charges for services:
Water 1,365,817 1,087,013 1,090,104 1,371,809
Sewer 1,502,164 1,498,218 1,494,188 1,505,781
Operating grants and contributions 62,710 - - -
Capital grants and contributions 8,769 8,709 1,462 20,018
Total business-type activities 2,939,460 2,593,940 2,585,754 2,897,608
Total primary government program revenues $6,413,453 $6,013,290 $11,947,630 $9,949,741
134
Table 2
Page 1 of 2
2013 2014 2015 2016 2017 2018
$1,566,388 $2,036,550 $2,016,351 $2,456,864 $2,395,633 $2,345,386
3,950,197 4,107,759 5,135,865 6,567,523 5,166,538 4,749,394
5,376,671 5,880,030 7,971,712 6,228,893 5,492,395 5,384,522
141,204 159,649 186,111 216,905 200,016 201,590
404,726 407,448 432,268 454,144 459,455 576,794
951,842 618,680 632,876 831,529 518,897 414,607
12,391,028 13,210,116 16,375,183 16,755,858 14,232,934 13,672,293
927,800 965,641 1,394,897 1,367,693 1,245,249 1,332,755
1,584,395 1,628,258 2,089,842 1,850,962 1,901,821 1,964,471
2,512,195 2,593,899 3,484,739 3,218,655 3,147,070 3,297,226
$14,903,223 $15,804,015 $19,859,922 $19,974,513 $17,380,004 $16,969,519
$93,118 $103,072 $818,468 $520,231 $550,117 $562,816
697,584 763,470 199,498 1,359,426 2,249,152 1,591,658
632,002 621,221 603,866 865,327 801,633 448,009
1,347 1,882 - - - -
28,118 39,395 - - - -
527,368 840,676 526,107 722,858 1,106,014 861,429
941,960 335,733 1,176,732 5,046,307 4,141,383 5,187,023
2,921,497 2,705,449 3,324,671 8,514,149 8,848,299 8,650,935
1,208,742 965,425 1,014,836 1,094,897 1,150,834 1,217,589
1,516,397 1,564,099 1,621,633 1,659,322 1,698,963 1,753,712
- 263,024 263,024 - - -
883 1,035 3,035,031 1,543,947 836,029 1,242,032
2,726,022 2,793,583 5,934,524 4,298,166 3,685,826 4,213,333
$5,647,519 $5,499,032 $9,259,195 $12,812,315 $12,534,125 $12,864,268
135
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2009 2010 2011 2012
Net (expense) revenue:
Governmental activities ($10,518,197) ($9,999,293) ($7,661,639) ($7,125,320)
Business-type activities 417,784 81,192 (18,952) 420,850
Total primary government, net (10,100,413) (9,918,101) (7,680,591) (6,704,470)
General revenues and other changes in net position:
Governmental activities:
Property taxes 9,808,324 8,764,183 8,768,805 8,610,709
Unrestricted grants and contributions 11,321 4,389 4,072 4,941
Unrestricted investment earnings 429,325 225,677 251,250 202,828
Gain on disposal of capital assets 12,644 - 37,579 4,175
Special item - withdrawal from fire district - - - -
Transfers (136,068)(7,078)66,122 41,043
Total governmental activities 10,125,546 8,987,171 9,127,828 8,863,696
Business-type activities:
Unrestricted investment earnings 228,747 104,770 126,215 102,073
Transfers 136,068 7,078 (66,122)(41,043)
Total business-type activities 364,815 111,848 60,093 61,030
Total primary government $10,490,361 $9,099,019 $9,187,921 $8,924,726
Change in net position:
Governmental activities ($392,651) ($1,012,122) $1,466,189 $1,738,376
Business-type activities 782,599 193,040 41,141 481,880
Total primary government change in net position $389,948 ($819,082) $1,507,330 $2,220,256
GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated.
GASB 75 was implemented in 2017. OPEB expense for years prior to 2017 was not restated.
136
Table 2
Page 2 of 2
2013 2014 2015 2016 2017 2018
($9,469,531) ($10,504,667) ($13,050,512) ($8,241,709) ($5,384,635) ($5,021,358)
213,827 199,684 2,449,785 1,079,511 538,756 916,107
(9,255,704) (10,304,983) (10,600,727) (7,162,198) (4,845,879) (4,105,251)
8,563,595 8,806,886 9,243,236 9,343,500 9,753,971 10,229,691
4,442 4,443 5,363 91,385 181,712 59,508
(54,204)265,695 112,961 210,142 207,792 369,485
- 1,727 17,836 66,255 38,022 17,318
- - - 1,333,166 - -
(353,304)69,294 66,834 (914,414)(308,694)(472,370)
8,160,529 9,148,045 9,446,230 10,130,034 9,872,803 10,203,632
(44,773)154,468 51,167 107,119 106,488 213,434
353,304 (69,294)(66,834)914,414 308,694 472,370
308,531 85,174 (15,667)1,021,533 415,182 685,804
$8,469,060 $9,233,219 $9,430,563 $11,151,567 $10,287,985 $10,889,436
($1,309,002) ($1,356,622) ($3,604,282) $1,888,325 $4,488,168 $5,182,274
522,358 284,858 2,434,118 2,101,044 953,938 1,601,911
($786,644) ($1,071,764) ($1,170,164) $3,989,369 $5,442,106 $6,784,185
137
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2009 2010 2011 2012
General Fund:
Reserved $196,568 $181,471 $ - $ -
Unreserved 5,191,396 5,445,334 - -
Nonspendable - - 165,079 180,786
Unassigned - - 5,440,101 5,053,031
Total general fund $5,387,964 $5,626,805 $5,605,180 $5,233,817
All other governmental funds:
Reserved reported in:
Special revenue funds $227,176 $227,342 $ - $ -
Capital projects funds 736,772 658,875 - -
Debt service funds 3,457,349 2,986,102 - -
Permanent funds 100,000 100,000 - -
Unreserved reported in:
Special revenue funds 93,956 110,471 - -
Capital projects funds 11,611,835 12,537,841 - -
Debt service funds (558,443) (1,093,765) - -
Permanent funds 15,824 12,676 - -
Nonspendable - - 906,010 823,113
Restricted - - 2,658,010 3,041,524
Committed - - 110,568 115,196
Assigned - - 10,808,268 15,573,179
Unassigned - - (3,154,496) (3,262,728)
Total all other governmental funds $15,684,469 $15,539,542 $11,328,360 $16,290,284
Total all funds $21,072,433 $21,166,347 $16,933,540 $21,524,101
The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Information
for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time.
138
Table 3
2013 2014 2015 2016 2017 2018
$ - $ - $ - $ - $ - $ -
- - - - - -
176,797 253,471 220,677 225,114 243,317 286,186
5,209,286 5,053,064 5,725,736 6,031,077 6,573,608 6,599,956
$5,386,083 $5,306,535 $5,946,413 $6,256,191 $6,816,925 $6,886,142
$ - $ - $ - $ - $ - $ -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
101,710 101,302 101,177 101,220 101,659 101,998
3,651,550 2,830,526 2,637,638 6,502,424 5,289,641 9,824,255
121,075 152,078 163,239 170,950 175,401 182,613
15,710,702 18,027,773 15,022,852 15,778,480 14,581,669 19,195,652
(3,393,547)(375,851) (3,815,304)(978,496) (2,909,173) (2,935,459)
$16,191,490 $20,735,828 $14,109,602 $21,574,578 $17,239,197 $26,369,059
$21,577,573 $26,042,363 $20,056,015 $27,830,769 $24,056,122 $33,255,201
139
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2009 2010 2011 2012
Revenues:
Property taxes $9,561,570 $8,647,488 $8,655,971 $8,560,340
Licenses and permits 307,714 330,138 322,030 319,172
Intergovernmental 1,259,016 1,176,863 1,331,914 5,267,570
Special assessments 968,995 851,270 904,522 816,998
Charges for services 778,163 780,044 812,604 744,633
Fines and forfeits 111,807 127,203 154,020 155,956
Investment earnings 429,325 225,677 251,244 202,825
Miscellaneous 513,306 502,992 460,710 414,088
Total revenues 13,929,896 12,641,675 12,893,015 16,481,582
Expenditures:
Current:
General government 1,918,246 1,730,390 1,773,515 1,619,215
Public safety 4,122,352 3,798,106 3,791,329 3,861,265
Public services 3,071,646 2,848,232 3,251,923 4,396,406
Conservation of natural resources 209,466 185,232 134,122 176,318
Community development 1,005,095 1,098,682 624,286 435,154
Capital outlay 501,806 282,938 4,209,593 616,931
Debt service:
Principal 1,908,000 1,866,000 2,030,000 2,145,000
Interest and fiscal charges 994,809 1,042,883 983,129 831,875
Bond issuance costs - - - 47,054
Total expenditures 13,731,420 12,852,463 16,797,897 14,129,218
Excess (deficiency) of revenues over expenditures 198,476 (210,788) (3,904,882) 2,352,364
Other financing sources (uses):
Proceeds from sale of capital assets 35,700 20,600 50,953 4,175
Issuance of debt 4,596,000 1,170,000 120,000 2,165,000
Premium on bonds issued 11,141 10,980 - -
Payment to refunded bond escrow agent - (965,000) - -
Loan payable reapportionment - - (565,000) -
Transfers in 1,413,985 1,195,747 2,971,715 1,979,457
Transfers out (1,367,863) (1,127,625) (2,905,593) (1,910,435)
Total other financing sources (uses)4,688,963 304,702 (327,925) 2,238,197
Special item - withdrawal from fire district - - - -
Net change in fund balance $4,887,439 $93,914 ($4,232,807) $4,590,561
Debt service as a percentage of noncapital expenditures 21.9%23.1%23.9%22.0%
Debt service as a percentage of total expenditures 21.1%22.6%17.9%21.1%
140
Table 4
2013 2014 2015 2016 2017 2018
$8,475,214 $8,612,011 $8,950,507 $9,369,090 $9,772,741 $10,215,761
431,654 407,681 551,202 895,581 1,447,571 1,260,046
500,963 823,025 679,627 706,944 1,080,953 3,453,300
2,130,519 1,278,202 703,141 4,400,635 2,283,974 2,005,970
717,300 731,640 696,501 1,293,556 1,327,781 1,003,896
119,079 149,653 127,803 251,653 613,593 137,940
(53,466)265,794 112,915 210,142 207,792 369,485
384,749 767,477 766,072 417,448 410,640 323,379
12,706,012 13,035,483 12,587,768 17,545,049 17,145,045 18,769,777
1,569,722 1,692,175 1,643,966 1,845,667 1,952,669 1,948,909
3,744,957 3,845,732 11,895,482 4,333,080 4,360,517 4,575,957
3,956,766 4,156,497 4,779,696 3,203,837 3,414,412 3,148,058
134,127 149,292 191,038 201,635 183,392 199,026
418,533 402,750 422,935 425,402 433,144 572,910
291,135 674,488 1,566,057 3,044,615 2,152,848 3,469,208
2,214,000 3,664,000 2,802,511 2,769,525 8,058,525 3,130,600
774,172 696,780 542,166 816,362 640,029 437,659
17,137 - 62,831 98,906 - -
13,120,549 15,281,714 23,906,682 16,739,029 21,195,536 17,482,327
(414,537) (2,246,231) (11,318,914)806,020 (4,050,491)1,287,450
16,727 1,727 54,522 72,182 103,328 49,391
808,000 3,140,000 8,606,250 5,464,000 311,000 7,218,900
6,558 - 114,960 41,497 - 401,193
(435,000) - - - - -
- - - - - -
1,722,541 2,608,534 3,392,971 3,521,180 6,984,443 4,266,440
(1,650,817) (2,539,240) (3,336,137) (3,241,959) (7,122,927) (4,024,295)
468,009 3,211,021 8,832,566 5,856,900 275,844 7,911,629
- - - 1,111,834 - -
$53,472 $964,790 ($2,486,348) $7,774,754 ($3,774,647) $9,199,079
23.3%29.9%15.0%26.2%45.4%25.5%
22.8%28.5%14.0%21.4%41.0%20.4%
141
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY Table 5
Last Ten Fiscal Years
Estimated
Commercial/Total Taxable Taxable
Payable Residential Industrial Personal Assessed Total Direct Market
Year Property Property Property Value Tax Rate Value
2009 $18,919,087 $4,002,349 $275,496 $23,196,932 38.73 $2,102,473,000
2010 17,978,917 3,800,004 291,904 22,070,825 37.91 2,001,889,600
2011 16,214,698 3,223,901 303,964 19,742,563 42.04 1,804,121,500
2012 14,743,557 2,945,026 310,870 17,999,453 42.89 1,640,455,854
2013 13,693,905 2,571,769 336,047 16,601,721 46.77 1,519,857,242
2014 13,646,798 2,450,473 341,974 16,439,245 46.68 1,509,921,169
2015 15,455,516 2,536,783 347,316 18,339,615 43.77 1,694,366,064
2016 15,472,329 2,609,482 359,006 18,440,817 46.02 1,699,288,883
2017 16,480,328 2,767,099 396,378 19,643,805 45.14 1,808,417,118
2018 17,879,879 2,966,548 442,867 21,289,294 42.83 1,959,826,108
The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula
to the estimated market value of the property.
Source: Anoka County, Minnesota Assessors' Office
142
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES Table 6
Last Ten Fiscal Years
(rate per $100 of Tax Capacity)
General Centennial Other Total Direct and
Fiscal Basic Obligation Total School District Anoka Taxing Total Overlapping
Year Rate Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate
2009 34.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015
2010 34.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258
2011 37.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966
2012 37.501 5.393 42.894 40.010 41.146 6.691 87.847 130.741
2013 40.964 5.810 46.774 43.681 44.411 6.940 95.032 141.806
2014 39.784 6.899 46.683 46.186 43.239 6.712 96.137 142.820
2015 37.819 5.951 43.770 36.562 38.123 6.021 80.706 124.476
2016 35.025 10.994 46.019 36.426 38.894 6.405 81.725 127.744
2017 35.105 10.035 45.140 29.097 36.841 5.810 71.748 116.888
2018 36.168 6.658 42.826 34.970 35.334 5.658 75.962 118.788
The majority of the City is serviced by School District 12. Rates for debt service are based on each year's requirements.
Source: Anoka County Property Records and Tax Division
City Direct Rate Overlapping Rates
143
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144
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL PROPERTY TAXPAYERS Table 7
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Net Tax Net Tax Net Tax Net Tax
Taxpayer Capacity Rank Capacity Capacity Rank Capacity
Northern States Power Co $215,921 1 1.01% $141,737 6 0.61%
AX Lino Lakes LP 214,854 2 1.01% - - -
Target Corporation 213,550 3 1.00% 254,772 1 1.10%
WI MN AB BIYNAH LLC 197,948 4 0.93% - - -
Minnegasco Inc 122,120 5 0.57% - - -
Moline Concrete Products 113,220 6 0.53% 150,370 4 0.65%
Gargaro Properties LLC 112,006 7 0.53% - - -
Taylor Corporation 95,302 8 0.45% 132,706 8 0.57%
Kohl's Department Store 89,494 9 0.42% 140,438 7 0.61%
Marmon/Keystone Corp 77,612 10 0.36% - - -
Lino Lakes Realty LLC - - 242,114 2 1.04%
Marshall Investment Corp - - 164,371 3 0.71%
Lino Lakes Assisted Living LLC - - 147,060 5 0.63%
Royal Oaks Realty Inc - - 115,350 9 0.50%
F&G Incorporated - - 108,700 10 0.47%
Total $1,452,027 6.81% $1,597,618 6.89%
Source: Anoka County
2018 2009
145
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collected within the
Taxes Levied for the Fiscal Year Fiscal Year of Levy
Percentage
Fiscal Operating Debt Total Tax of
Year Tax Levy Tax Levy Levy Amount Levy
2009 $8,295,172 $949,166 $9,244,338 $8,982,756 97.2%
2010 7,816,232 879,182 8,695,414 8,400,439 96.6%
2011 7,719,240 940,760 8,660,000 8,486,845 98.0%
2012 7,192,818 1,034,441 8,227,259 8,095,502 98.4%
2013 7,190,538 1,025,090 8,215,628 8,094,911 98.5%
2014 7,098,922 1,197,122 8,296,044 8,229,986 99.2%
2015 7,490,578 1,195,494 8,686,072 8,630,830 99.4%
2016 7,018,572 2,039,856 9,058,428 9,022,964 99.6%
2017 7,360,431 2,131,424 9,491,855 9,439,688 99.5%
2018 8,165,859 1,610,873 9,776,732 9,729,472 99.5%
Current year levies and collections include State levy related credits, but do not include tax increment levies and collections.
146
Table 8
Total Collections to Date
Collections in Percentage Outstanding Percentage
Subsequent of Delinquent of Levy
Years Amount Levy Taxes Outstanding
$194,591 $9,177,347 99.3%$66,991 0.7%
183,009 8,583,448 98.7%111,966 1.3%
127,277 8,614,122 99.5%45,878 0.5%
78,564 8,174,066 99.4%53,193 0.6%
70,293 8,165,204 99.4%50,424 0.6%
42,280 8,272,266 99.7%23,778 0.3%
26,955 8,657,785 99.7%28,287 0.3%
9,740 9,032,704 99.7%25,724 0.3%
15,835 9,455,523 99.6%36,332 0.4%
- 9,729,472 99.5%47,260 0.5%
147
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Business-Type
Governmental Activities Activities
General
General Special Other Obligation
Fiscal Obligation Assessments Long-Term Revenue
Year Bonds Payable Debt Bonds
2009 $10,712,000 $10,265,000 $4,260,000 $1,170,000
2010 10,141,000 9,175,000 4,260,000 795,000
2011 9,421,000 7,985,000 3,695,000 405,000
2012 10,331,000 7,095,000 3,695,000 -
2013 9,610,000 5,975,000 3,695,000 -
2014 9,036,000 7,640,000 2,080,000 -
2015 16,377,291 6,620,000 1,720,000 -
2016 18,337,081 7,795,000 1,609,000 -
2017 14,837,768 4,905,000 233,475 -
2018 20,360,713 3,890,000 202,125 -
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for personal income and population data.
(1) Personal income information is not yet available for 2018 from the Bureau of Economic Analysis Report
148
Table 9
Total Percentage Percentage
Primary of Assessed of Personal Per
Government Market Value Income Capita
$26,407,000 1.24%3.44%$1,301
24,371,000 1.22%3.13%1,206
21,506,000 1.19%2.59%1,049
21,121,000 1.29%2.46%1,024
19,280,000 1.27%2.19%925
18,756,000 1.24%2.04%888
24,717,291 1.46%2.64%1,205
27,741,081 1.63%2.84%1,334
19,976,243 1.10%1.94%946
24,452,838 1.25%(1)1,111
149
CITY OF LINO LAKES, MINNESOTA
RATIOS OF NET GENERAL BONDED DEBT
Last Ten Fiscal Years
General Special Total
Fiscal Obligation Assessments Primary
Year Bonds Payable Government
2009 $10,712,000 $10,265,000 $20,977,000
2010 10,141,000 9,175,000 19,316,000
2011 9,421,000 7,985,000 17,406,000
2012 10,331,000 7,095,000 17,426,000
2013 9,610,000 5,975,000 15,585,000
2014 9,036,000 7,640,000 16,676,000
2015 16,377,291 6,620,000 22,997,291
2016 18,337,081 7,795,000 26,132,081
2017 14,837,768 4,905,000 19,742,768
2018 20,360,713 3,890,000 24,250,713
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
See the Demographic and Economic Statistics schedule for population data.
Governmental Activities
150
Table 10
Less: Amounts Percentage
Per Available in Debt Net of Assessed Per
Capita (Total)Service Funds Bonded Debt Market Value Capita (Net)
$1,033 $3,457,349 $17,519,651 0.83%$863
955 2,986,102 16,329,898 0.82%808
849 2,638,129 14,767,871 0.82%720
845 3,035,557 14,390,443 0.88%698
748 3,357,196 12,227,804 0.80%587
789 2,501,738 14,174,262 0.94%671
1,121 2,813,226 20,184,065 1.19%984
1,256 8,420,263 17,711,818 1.04%851
935 5,171,905 14,570,863 0.81%690
1,102 4,456,461 19,794,252 1.01%900
151
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
As of December 31, 2018
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Overlapping debt:
Anoka County $92,260,000 6.1%$5,591,225
ISD 12 90,587,065 43.7%39,541,274
ISD 624 85,805,000 3.0%2,610,748
ISD 831 163,990,000 7.0%11,496,804
Metropolitan Council 1,549,087,966 0.6%8,698,997
Rice Creek Watershed District 305,420 32.5%99,202
Anoka County Railroad Authority 22,995,000 6.1% 1,393,564
Total overlapping 69,431,814
City of Lino Lakes direct debt $24,452,838 100%24,452,838
Total direct and overlapping debt $93,884,652
*For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable
assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule
estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses
of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt
burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer
is a resident, and therefore responsible for repaying the debt, of each overlapping government.
Sources: taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt
outstanding data provided by each governmental unit.
152
CITY OF LINO LAKES, MINNESOTA
LEGAL DEBT MARGIN INFORMATION Table 12
Last Ten Fiscal Years
Legal Debt Margin Calculation for Fiscal Year 2018
Market value $1,959,826,108
Applicable percentage 3%
Debt limit 58,794,783
Debt applicable to limit:
Total bonded debt 24,452,838
Less:
Special assessment bonds (3,890,000)
Tax abatement bonds (1,375,000)
Tax increment bonds (1,435,000)
Utility revenue bonds (3,255,000)
14,497,838
Legal debt margin $44,296,945
Net Debt
Net Debt Legal Amount of Debt Applicable
Fiscal Debt Applicable to Debt Applicable to to Limit
Year Population Limit Limit Margin Debt Limit Per Capita
2009 20,305 $64,036,746 $3,642,000 $60,394,746 5.69% $179
2010 20,216 60,622,086 3,386,000 57,236,086 5.59% 167
2011 20,505 54,123,645 2,961,000 51,162,645 5.47% 144
2012 20,625 49,213,676 4,591,000 44,622,676 9.33% 223
2013 20,833 45,595,717 4,280,000 41,315,717 9.39% 205
2014 21,129 45,297,635 4,191,000 41,106,635 9.25% 198
2015 20,519 50,830,982 11,941,250 38,889,732 23.49% 582
2016 20,803 50,978,666 10,122,081 40,856,585 19.86% 487
2017 21,117 54,252,514 10,426,243 43,826,271 19.22% 494
2018 22,000 58,794,783 14,497,838 44,296,945 24.66% 659
Legal Debt Margin Calculation for Fiscal Years 2009 Through 2018
153
CITY OF LINO LAKES, MINNESOTA
DEMOGRAPHIC AND ECONOMIC STATISTICS Table 13
Last Ten Fiscal Years
(2) (2)
Personal Per
Income Capita (3) (4)
Fiscal (1)(thousands Personal School Unemployment
Year Population of dollars)Income Enrollment Rate
2009 20,305 $768,341 $37,840 6,725 7.8%
2010 20,216 777,912 38,480 6,523 7.1%
2011 20,505 831,170 40,535 6,426 5.9%
2012 20,625 857,753 41,588 6,421 5.6%
2013 20,833 879,903 42,236 6,392 4.5%
2014 21,129 917,252 43,412 6,410 3.4%
2015 20,519 934,764 45,556 6,371 3.3%
2016 20,803 975,682 46,901 6,473 3.9%
2017 21,117 1,028,123 48,687 6,500 3.1%
2018 22,000 Not available Not available 6,707 3.9%
Sources:
(1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census and 2016 which is a city estimate.
(2) Information from Bureau of Economic Analysis Report. Anoka County statistics used as local information is unavailable.
(3) Information from ISD # 12 website (audit report).
(4) Information from MN Department of Employment and Economic Development. Anoka County statistics used as local
information is unavailable.
154
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS Table 14
Current Year and Nine Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank
Employment(1)Employees Rank
Employment(1)
ISD 12 - Centennial Schools 931 1 34.9% - - -
State of Minnesota Corrections 478 2 17.9% 500 1 28.4%
Target Corporation 273 3 10.2% 271 2 15.4%
Molin Concrete Products 240 4 9.0% 179 4 10.2%
Curtis 1000 (AdGraphics/Taylor Corp 200 5 7.5% 190 3 10.8%
Kohls 120 6 4.5% - - -
YMCA 120 7 4.5% - - -
Distribution Alternatives 117 8 4.4% - - -
Rehbein Transit, Inc. 100 9 3.8% 120 7 6.8%
Anoka County Juvenile Center 86 10 3.2% 149 6 8.5%
Customer Manufacturing - - - 60 9 3.4%
Nol-Tech Systems, Inc. - - - 56 10 3.2%
City of Lino Lakes - - - 74 8 4.2%
Synovis Interventional Systems - - - 160 5 9.1%
Total 2,665 1,759
(1)The statistic for total City employment is not available, therefore the percentage represents the percentage of
the top ten listed.
Source: City of Lino Lakes Official Statements and employer surveys
2018 2009
155
CITY OF LINO LAKES, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2009 2010 2011 2012
General Government:
Administration 5.00 4.00 3.50 3.50
Seniors 0.63 0.63 - -
Finance 3.50 3.00 3.00 3.00
Economic Development 1.00 1.00 1.00 1.00
Planning 2.00 2.00 1.00 1.00
Community Development 2.75 2.25 2.00 2.00
Building 1.00 1.00 - -
Other 1.40 1.40 0.70 0.70
Total General Government 17.28 15.28 11.20 11.20
Public Safety:
Sworn Officers 27.00 27.00 25.00 25.00
Civilians 4.75 4.25 4.00 3.00
Fire - - - -
Building Inspection 4.25 2.75 2.50 2.50
Total Public Safety 36.00 34.00 31.50 30.50
Public Works:
Streets 7.35 6.85 7.00 7.00
Other 1.15 1.15 1.00 1.00
Total Public Works 8.50 8.00 8.00 8.00
Parks, Recreation and Forestry 9.80 9.30 9.00 9.00
Water 2.15 2.15 2.15 2.15
Sewer 2.15 2.15 2.15 2.15
Total 75.88 70.88 64.00 63.00
Source: City Finance Office
Full-Time-Equivalent Employees as of December 31,
156
Table 15
2013 2014 2015 2016 2017 2018
3.50 3.50 3.50 4.00 4.00 4.00
- - - - - -
3.00 3.00 3.00 3.50 3.50 3.50
- - - - - -
1.00 1.00 1.00 1.00 1.00 1.00
2.00 2.00 2.00 2.00 2.00 2.00
- - - - - -
0.70 0.70 0.70 0.65 0.65 0.65
10.20 10.20 10.20 11.15 11.15 11.15
25.00 25.00 26.00 27.00 27.00 27.00
3.00 4.00 4.00 4.50 4.50 4.00
- 1.00 1.00 1.50 1.50 1.50
2.50 2.00 2.00 2.50 2.50 2.50
30.50 32.00 33.00 35.50 35.50 35.00
7.00 7.00 7.00 6.50 6.65 6.65
1.00 1.00 1.00 1.50 1.50 1.50
8.00 8.00 8.00 8.00 8.15 8.15
8.70 8.70 8.70 7.75 7.90 6.90
2.30 2.30 2.30 2.30 2.70 3.20
2.30 2.30 2.30 2.30 2.70 3.20
62.00 63.50 64.50 67.00 68.10 67.60
Full-Time-Equivalent Employees as of December 31,
157
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2009 2010 2011 2012
General Government:
Elections 1 2 1 2
Registered voters 11,805 12,284 11,705 13,478
Number of votes cast 4,354 8,545 4,314 11,546
Voter participation (registered)36.9%69.6%36.9%85.7%
Public Safety:
Police:
Calls for Service 6,353 6,398 6,384 6,344
Traffic Citations & Warnings 3,187 2,743 2,604 2,694
Part I Crime Rate 1,075 982 1,117 983
Part II Crime Rate 3,151 2,911 2,911 2,396
Police:
Case Numbers Generated
Avg Response Time (Emergency & Non-Emergency)
Part I Crime Offenses
Part II Crime Offenses
Clearance Rate
Fire:
Fire Call Load
Fire Property Loss
Fire Property Saved
Fire Inspections
Inspections:
Building Permits (1) (2)1,535 509 452 459
Value of Building Permits $9,586,160 $11,295,493 $11,192,264 $10,751,626
Public Works:
General Maintenance (hours)5,870 4,945 7,416 6,939
Street Mantenance (hours)3,267 3,099 4,352 5,926
Fleet Maintenance (hours)4,782 4,850 4,214 3,945
Snow Plowing/Sanding (hours)950 1,638 1,534 594
Culture and Recreation:
Parks
Park Maintenance (hours)12,406 9,257 9,813 9,739
Utilities:
Water Maintenance (hours)5,041 3,560 3,568 3,585
Sanitary Sewer Maintenance (hours)3,486 3,531 3,557 3,517
(1) 4,337 and 581 repair permits issued in 2008 - 2009, respectively, due to storm damage.
(2) Increase in permits issued - June 2017 storm damage.
(3) The Public Safety Department modified the metrics maintained for business purposes in 2016.
Those changes are reflected in the 2016-2018 Operating Indicators.
Source: Various City Departments
158
Table 16
2013 2014 2015 2016 2017 2018
121212
12,020 12,610 12,143 13,636 12,624 12,860
1,575 7,854 4,085 11,562 2,165 10,738
13.1% 62.3% 33.6% 84.8% 17.1% 83.5%
6,210 6,281 6,210 6,210 (3) (3)
2,597 2,296 2,199 2,199 (3) (3)
918 631 1,226 1,091 (3) (3)
2,144 1,836 2,395 3,635 (3) (3)
16,321 18,199 14,487
5:26 minutes 4:42 minutes 5:16 minutes
224 176 195
746 808 587
73% 82% 69%
269 316 356
$694,000 $325,100 $205,200
$10,511,300 $6,342,100 $1,791,500
53 117 107
490 431 654 761 5,422 3,281
$17,683,665 $13,535,514 $26,570,593 $53,390,619 $50,984,047 $50,990,945
3,994 5,200 7,839 5,534 6,313 420
5,740 3,840 3,347 4,053 3,765 12,418
4,548 4,746 4,322 4,437 3,986 2,648
1,639 2,141 754 960 928 2,117
8,480 8,537 8,332 9,698 8,576 9,027
3,119 3,189 3,240 3,539 3,278 4,080
3,109 3,178 3,240 3,539 3,278 4,080
159
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17
Last Ten Fiscal Years
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Public Safety:
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Patrol Units 12 12 12 12 12 12 12 12 12 12
Fire:
Stations 1 1 1 1 1 1 2 2 2 2
Fire Trucks 5 5 5 5 5 5 7 7 8 8
Public Works:
Lights 673 673 673 673 673 673 673 815 838 854
Vehicles 29 29 29 29 29 29 29 39 39 39
City Streets (miles)100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 106.9
Culture & Recreation:
Parks:
Parks 18 18 18 18 18 18 18 17 18 19
Park Acres 141 141 141 141 141 141 141 139.6 147 152
Trails (miles)26 26 26 26 26 26 26 29.75 30 30
Park Shelters 7 7 6 6 6 6 6 6 6 7
Basketball Courts 6 6 6 6 6 6 6 6 6 7
Fishing Pier 1 1 1 1 1 1 1 1 - -
Skating Rinks 4 4 4 4 4 4 4 4 3 3
Soccer Fields 8 8 8 8 8 8 8 6 4 4
Baseball/Softball Fields 20 20 20 20 20 20 20 8 8 8
Tennis Courts 2 2 2 2 2 2 2 2 - -
Playgrounds 16 16 16 16 16 16 16 15 16 17
Water:
Distribution System (miles)74.7 74.7 74.7 74.7 74.7 74.7 74.7 85.6 99.4 89.0
Water Connections 4,340 4,382 4,424 4,452 4,484 4,520 4,542 4,649 4,738 4,919
Gallons Pumped (millions)589 498 492 609 536 536 449 452 494 508
Number of Fire Hydrants 538 538 538 538 538 538 1,024 1,024 1,028 942
Water Tower Capacity (millions gallons) 2 2 2 2 2 2 2 2 2 2
Sanitary Sewer:
Collection System (miles)69.8 69.8 69.8 69.8 69.8 69.8 77.9 77.9 87.0 79.5
Sewer Connections 4,486 4,530 4,567 4,567 4,624 4,685 4,685 4,817 4,976 5,102
Storm Sewer:
Pipe (miles)41.4 41.4 41.4 41.4 41.4 41.4 41.4 53.7 54.1 55.0
Source: Various City Departments
160
OTHER INFORMATION (UNAUDITED)
161
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF LONG-TERM DEBT
December 31, 2018
Final
Interest Issue Maturity
Rates Date Date
Long-term debt:
General Obligation Bonds:
2015A Certificates of Indebtedness 1.00%2/1/15 12/31/18
2015B Certificates of Indebtedness 1.50% 8/25/15 12/31/20
2016A Certificates of Indebtedness 1.00%2/1/16 12/31/19
2017A Certificates of Indebtedness 1.00%3/1/17 12/31/20
2018A Certificates of Indebtedness 1.00%2/1/18 12/31/21
G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/06 2/1/18
G.O. TIF Bonds, Series 2007A 4.00% - 4.125% 7/15/17 2/1/24
G.O. Refunding Bonds, Series 2012A 1.00% - 2.00% 11/15/12 2/1/24
G.O. Bonds, Series 2015A 2.00% - 3.00% 8/1/15 2/1/31
EDA Lease Revenue Bonds, Series 2015B 2.00% - 3.00% 10/1/15 4/1/36
G.O. Utility Revenue Bonds, Series 2016A 2.00% 11/23/16 2/1/27
G.O. Tax Abatement Refunding Bonds, Series 2016C 1.00% - 1.50% 11/23/16 2/1/23
G.O. Bonds, Series 2018A 2.05% - 3.50% 12/19/18 2/1/34
Total General Obligation Bonds
Special Assessment Bonds:
G.O. Imp & Utility Revenue Bonds, Series 2010A 2.00% - 3.00% 7/9/10 2/1/20
G.O. Improvement Bonds, Series, 2013A 1.25% - 4.00% 7/15/13 2/1/24
G.O. Improvement Bonds, Series 2014A 0.40% - 2.30% 11/20/14 2/1/26
G.O. Improvement Refunding Bonds, Series 2016B 0.875% - 1.50% 11/23/16 2/1/21
Total Special Assessment Bonds
G.O. Capital Note, Series 2016A 2.00% 4/14/16 2/1/26
Total long-term debt
162
Exhibit 1
Payable Payable Principal
Original Prior January 1, December 31, Due in
Issue Payments 2018 Issued Payments 2018 2019
$198,250 $132,000 $66,250 $ - $66,250 $ - $ -
963,000 370,000 593,000 - 195,000 398,000 197,000
469,000 155,000 314,000 - 156,000 158,000 158,000
311,000 - 311,000 - 102,000 209,000 104,000
303,900 - - 303,900 - 303,900 103,900
2,990,000 2,565,000 425,000 - 425,000 - -
4,215,000 2,590,000 1,625,000 - 190,000 1,435,000 200,000
2,015,000 745,000 1,270,000 - 230,000 1,040,000 230,000
3,095,000 190,000 2,905,000 - 195,000 2,710,000 200,000
4,350,000 165,000 4,185,000 - 170,000 4,015,000 175,000
1,420,000 - 1,420,000 - 130,000 1,290,000 135,000
1,600,000 - 1,600,000 - 225,000 1,375,000 245,000
6,915,000 - - 6,915,000 - 6,915,000
28,845,150 6,912,000 14,714,250 7,218,900 2,084,250 19,848,900 1,747,900
1,000,000 675,000 325,000 - 105,000 220,000 105,000
615,000 180,000 435,000 - 60,000 375,000 60,000
2,645,000 475,000 2,170,000 - 370,000 1,800,000 380,000
1,975,000 - 1,975,000 - 480,000 1,495,000 490,000
6,235,000 1,330,000 4,905,000 0 1,015,000 3,890,000 1,035,000
294,525 61,050 233,475 - 31,350 202,125 32,175
$35,374,675 $8,303,050 $19,852,725 $7,218,900 $3,130,600 $23,941,025 $2,815,075
2018
163
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2018
Year of Certificates of Certificates of Certificates of Certificates of
Levy/Indebtedness Indebtedness Indebtedness Indebtedness
Collection 2015B 2016A 2017A 2018A
2018/2019 $213,119 $167,559 $111,395 $115,211
2019/2020 214,216 - 111,353 107,100
2020/2021 - - - 106,050
2021/2022 - - - -
2022/2023 - - - -
2023/2024 - - - -
2024/2025 - - - -
2025/2026 - - - -
2026/2027 - - - -
2027/2028 - - - -
2028/2029 - - - -
2029/2030 - - - -
2030/2031 - - - -
2031/2032 - - - -
2032/2033 - - - -
2033/2034 - - - -
2034/2035 - - - -
$427,335 $167,559 $222,748 $328,361
164
Exhibit 2
G.O.
G.O. EDA Lease Tax Abatement
Refunding G.O.Revenue Refunding G.O.
Bonds Bonds Bonds Bonds Bonds
2012A 2015A 2015B 2016C 2018A Total
$180,012 $270,178 $315,722 $289,097 $233,159 $1,895,452
178,080 271,228 317,297 301,571 481,799 1,982,644
175,896 266,923 316,877 313,567 483,899 1,663,212
178,794 267,868 316,299 325,054 485,212 1,573,227
176,109 273,958 320,814 - 485,737 1,256,618
- 274,588 319,764 - 485,474 1,079,826
- 269,863 318,557 - 484,214 1,072,634
- 269,798 317,192 - 482,639 1,069,629
- 222,364 315,669 - 485,527 1,023,560
- 222,626 319,239 - 482,114 1,023,979
- 222,758 317,244 - 480,644 1,020,646
- 221,708 320,342 - 484,109 1,026,159
- - 317,231 - 481,320 798,551
- - 319,200 - 482,908 802,108
- - 318,780 - 478,170 796,950
- - 317,940 - - 317,940
- - 316,680 - - 316,680
$888,891 $3,053,860 $5,404,847 $1,229,289 $6,996,925 $18,719,815
165
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2018
Certificates of Certificates of
Indebtedness Indebtedness
2015B 2016A
Bonds payable $398,000 $158,000
Future interest payable 8,985 1,580
$406,985 $159,580
Payments to maturity:
2019 202,970 159,580
2020 204,015 -
2021 - -
2022 - -
2023 - -
2024 - -
2025 - -
2026 - -
2027 - -
2028 - -
2029 - -
2030 - -
2031 - -
2032 - -
2033 - -
2034 - -
2035 - -
2036 - -
$406,985 $159,580
166
Exhibit 3
Page 1 of 2
G.O.
Certificates of Certificates of G.O. TIF Refunding G.O.
Indebtedness Indebtedness Bonds Bonds Bonds
2017A 2018A 2007A 2012A 2015A
$209,000 $303,900 $1,435,000 $1,040,000 $2,710,000
3,140 8,825 187,773 43,433 429,093
$212,140 $312,725 $1,622,773 $1,083,433 $3,139,093
106,090 109,725 254,326 242,590 259,312
106,050 102,000 261,026 170,520 255,312
- 101,000 267,126 168,560 256,263
- - 272,504 166,400 252,163
- - 282,016 169,001 253,013
- - 285,775 166,362 258,712
- - - - 259,263
- - - - 254,481
- - - - 254,362
- - - - 209,400
- - - - 209,587
- - - - 209,150
- - - - 208,075
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
$212,140 $312,725 $1,622,773 $1,083,433 $3,139,093
167
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY
December 31, 2018
G.O. Tax
EDA Lease G.O. Utility Abatement
Revenue Revenue Refunding G.O.
Bonds Bonds Bonds Bonds
2015B 2016A 2016C 2018A
Bonds payable $4,015,000 $1,290,000 $1,375,000 $6,915,000
Future interest payable 1,372,068 118,200 49,763 2,352,246
$5,387,068 $1,408,200 $1,424,763 $9,267,246
Payments to maturity:
2019 302,437 159,450 261,678 172,690
2020 298,937 161,700 273,770 367,788
2021 299,488 158,900 285,422 631,412
2022 299,012 156,100 296,605 637,537
2023 298,388 158,250 307,288 637,537
2024 302,538 155,350 - 641,413
2025 301,462 152,450 - 642,575
2026 300,237 154,500 - 632,987
2027 298,863 151,500 - 634,112
2028 297,338 - - 633,987
2029 300,587 - - 638,012
2030 298,613 - - 597,187
2031 301,106 - - 606,025
2032 298,062 - - 598,650
2033 298,800 - - 600,094
2034 298,200 - - 595,240
2035 297,200 - - -
2036 295,800 - - -
$5,387,068 $1,408,200 $1,424,763 $9,267,246
168
Exhibit 3
Page 2 of 2
G.O.
G.O. Imp & G.O. G.O. Improvement
Utility Revenue Improvement Improvement Refunding G.O. Capital
Bonds Bonds Bonds Bonds Note
2010A 2013A 2014A 2016B 2016A Total
$220,000 $375,000 $1,800,000 $1,495,000 $202,125 $23,941,025
6,750 44,700 94,869 31,473 14,372 4,767,270
$226,750 $419,700 $1,894,869 $1,526,473 $216,497 $28,708,295
110,025 72,900 406,158 506,780 36,217 3,362,928
116,725 71,100 401,788 505,868 36,399 3,332,998
- 69,000 406,390 513,825 35,739 3,193,125
- 71,500 162,055 - 35,904 2,349,780
- 68,900 159,280 - 36,053 2,369,726
- 66,300 161,151 - 36,185 2,073,786
- - 162,645 - - 1,518,395
- - 35,402 - - 1,377,607
- - - - - 1,338,837
- - - - - 1,140,725
- - - - - 1,148,186
- - - - - 1,104,950
- - - - - 1,115,206
- - - - - 896,712
- - - - - 898,894
- - - - - 893,440
- - - - - 297,200
- - - - - 295,800
$226,750 $419,700 $1,894,869 $1,526,473 $216,497 $28,708,295
169
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE Exhibit 4
December 31, 2018
Amount
General Liability:
Bodily Injury/Property Damage $2,000,000
Personal Injury/Police Professional Liability 2,000,000
Medical Expense Occurrence Limit 2,500
Medical Expense Aggregate 10,000
Property Damage ($1,000 Deductible)
Property:
Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers)39,357,722
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 250,000
Rented/Leased Equipment ($1,000 Deductible)500,000
Public Official and Employee Liability ($1,000 Deductible each occurrence)1,500,000
Automotive:
Bodily Injury and Property Damage 2,000,000
Comprehensive and Collision Actual Cash Value
Uninsured Motorists 200,000
Worker's Compensation Statutory
Employer Liability 1,500,000
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($1,000 Deductible)250,000
Coverage
170
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5
Tax Capacity Tax Capacity
Values Values
2017/2018 2016/2017
Taxable valuations:
Total $21,289,294 $19,643,805
Fiscal disparities:
Distribution 3,014,265 2,792,112
Contribution (1,215,584) (1,168,180)
Less: Captured Tax Increment Value (421,495) (293,970)
$22,666,480 $20,973,767
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $8,165,859 36.168 $7,360,431 35.105
Bond and Interest 1,610,873 6.658 2,131,424 10.035
Totals $9,776,732 42.826 $9,491,855 45.140
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution.
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