HomeMy WebLinkAbout06-07-2021 Council Work Session PacketCITY COUNCIL WORK SESSION AGENDA
CITY OF LINO LAKES
Monday, June 7, 2021
Council Chambers
5:00 P.M.
1. (5:00 pm) Final Report on Recreation and Aquatic Center Feasibility Study by Isaac
Sports Group, Michael Grochala
***Following Agenda Item #1, the Council will convene in a Special Council Meeting to
consider approval of a Special Event Permit.
2. Review 2020 Annual Audit Report, Hannah Lynch
3. Electronic Municipal Payments, Hannah Lynch
4. Liquor License Fees, Julie Bartell
5. Water Treatment Plant Update, Michael Grochala, Rick DeGardner
6. Environmental Board Openings
7. Council Compensation, Sarah Cotton
8. Council Updates on Boards/Commissions, City Council
9. Adjourn
WS – Item 1
WORK SESSION STAFF REPORT
Work Session Item No. 1
Date: June 7, 2021
To: City Council
From: Michael Grochala, Community Development Director
Sarah Cotton, City Administrator
Re: Recreation and Aquatic Center Feasibility Study
Background
In July of 2020, the City was notified the YMCA would not be reopening the Lino Lakes
Facility. In November of 2020, the City retained Isaac Sports Group (ISG) to evaluate
potential facility operating options. Pursuant to a notice provided by the YMCA on January 4,
2021, and in accordance with the development agreement between the YMCA and the City,
the YMCA transferred their property and building to the City on March 1, 2021.
ISG has completed their report and will present their findings to the City Council at the work
session. The report examines programming options, three potential management models, and
multiple fee structures. Financial operating budgets and projections were developed to
evaluate the different options. The report also includes considerations for long term
development and expansion, impact of the COVID-19 pandemic, along with a project
timeline and next steps. Keys to success are also included as a resource to identify key
operating best practices and needs necessary to make the facility a success.
Staff is proposing that the City Council accept the final report at the June 28, 2021 regular
council meeting at which time an opportunity for public comment will be provided.
Requested Council Direction
Staff is requesting City Council direction to place report on the June 28, 2021 regular
agenda to accept the report and provide an opportunity for public comment.
Attachments
1. Lino Lakes Recreation and Community Center Analysis
Lino Lakes Recreation and Community Center Analysis
Facility, Opportunities, Program, Management, Financial, and Strategic
Analysis
June 2, 2021
Page 2 of 73
TABLE OF CONTENTS
Introduction Page 4
Study Methodology Page 5
Strategic Overview Page 7
Evaluation of Current Facility Page 11
Programming Analysis Page 19
Aquatic Programming Page 19
Fitness Programming Page 29
Special Needs and Adaptive Programs Page 31
Sport, Camp, and Youth Programs Page 32
Facility Schedule Analysis Page 34
Membership and User Programs Page 36
Child Watch Program Page 41
Facility Management and Staffing Models Page 42
Management Models and Options Page 42
Staffing Model Page 44
Financial Budgets and Operating Projections Page 47
Future Long Term Recreation Center Development and Expansion Page 52
Potential Impact of COVID-19 Pandemic Page 58
Project Timeline and Next Steps Page 60
Keys to Success and Factors in Failure Page 62
Conclusion Page 70
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APPENDIX INDEX
APPENDIX A: Programming
#A1 Learn to Swim Market Analysis and Comparisons
#A2 Learn to Swim Program Projections
#A2a City Managed Model
#A2b Community Education Partner Model
#A3 Aquatic Facility Scheduling Matrix
APPENDIX B: Membership
#B1 Membership Market Analysis
#B2 Membership Fee Structure, Scenarios, and Projections
APPENDIX C: Budget/Operating Analysis
#C1 Profit and Loss Summaries
#C1a City Managed P & L
#C1b Hybrid Management Model P & L
#C1c P & L Comparison
#C2 City Managed Model Budget Line Item Detail
#C2a Facility Revenue
#C2b Program Revenue
#C2c Operational Expenses
#C2d Program Expenses
#C2e Program Profit Analysis
#C3 Hybrid Management Model Budget Line Item Detail
#C3a Facility Revenue
#C3b Program Revenue
#C3c Operational Expenses
#C3d Program Expenses
#C3e Program Profit Analysis
APPENDIX D: Pools Operational and Mechanical Systems
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INTRODUCTION
The Chain of Lakes YMCA branch in Lino Lakes (the “YMCA”) suspended operations at the start
of the COVID pandemic in spring of 2020. In early fall of 2020 the YMCA made the decision to
close the YMCA permanently and return ownership of the YMCA building to the City of Lino
Lakes (the “City”). On March 1, 2021 the ownership of the building formally reverted to the City.
The closing of the YMCA prompted the City to face hard decisions about the future of the former
YMCA building. Key questions included:
What is the City going to do with this building?
Can the City reopen and manage the old Y as a City Recreation Center?
What private or outside management options may work in managing the building as a
Recreation Center?
What would it cost to re-open?
What changes or improvements are needed?
What will it cost the City to run this facility?
What strategic long term opportunities are there for a Recreation Center?
Should the building be sold or repurposed?
These questions and the info and analysis needed to analyze these questions led the City to seek
outside consulting expertise to answer these questions and develop strategic, tactical, and practical
plans and recommendations for the future of the former YMCA.
The Isaac Sports Group, LLC. was retained in December 2020 to conduct this overall analysis of
the potential and opportunities for the former YMCA building (the “Study”).
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METHODOLOGY
Organization of Study and Report
This ISG Report is organized roughly in the order of progression through the Study. This
progression and Study organization included the following:
Evaluation of the existing YMCA building
Review and analysis of the YMCA Programming and Membership model
Review, analysis, and quantification of City resident program and recreation needs and
opportunities
Development of program model for a City Recreation Center
Analysis and projections of the cost of re-opening the existing building as a new Recreation
Center
Exploration of Recreation Center management options and models
Operating cost and revenue model and projections for the Recreation Center, including
different management models
Development of long term strategic opportunities and options for long term development of
the Recreation Center and its overall site
Development of a work-back timeline from re-opening of the Recreation Center
Study Elements
Key elements of Study research included but were not limited to the following:
Review of the former YMCA
o Onsite inspection of the existing building with YMCA Operation staff and City staff
o Review of YMCA equipment and furniture inventory, including what the YMCA
would be leaving for the City (virtually nothing)
o Study of YMCA operating and program records as well as minutes of the meetings
of the YMCA Steering Committee minutes on their process of re-imaging the
YMCA
o Evaluation of nearby YMCAs impacting the former Lino Lakes YMCA
Market research
o Area demographics
o Research on area and regional public/municipal community Recreation Centers
Facilities, programs, fees, membership models, etc.
Best practice examples
o Research on area and regional private fitness and recreation facilities currently
drawing members and users from the Lino Lakes area
Identification and engagement of potential area user groups and stakeholders
o Meetings and interviews with potential stakeholders and user groups and groups
utilizing the former YMCA
o Identification of area stakeholders and program providers that may be potential
management and/or program partners for the Recreation Center
Detailed assessment of projected needs and costs for re-opening the facility
o Work with City facility management, outside service providers, and equipment
suppliers to develop cost projection
Explore outside management entities and opportunities, including pros and cons
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o Potential of a management contract with the YMCA
o Examples of management by fitness facility chains
o Hybrid options
Operating Budget development
o Detailed review of existing City management, staffing, maintenance, utility and other
budget centers relevant to the operating budget of the Recreation Center
o Comparison to operating budgets of the former YMCA and other comparable
facilities
o Specific analysis of operating costs during the facility closure prior to re-opening
o Ongoing review of budget and backup projections and documents with City
management and staff
Stakeholder engagement to identify opportunities for future development
Presentation of initial findings to City Council work session March 18, 2021
Using the Report
The report is forward looking, providing information to help support the key City Staff driven Next
Steps in the development process. In addition to the analysis in the Study many sections include a
Next Step box to provide suggestions on City next steps building on the Study analysis.
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STRATEGIC OVERVIEW
The theme of the Strategic Overview focuses on several key elements:
1. How can the Recreation Center improve on the former YMCA in terms of providing greater
access for Lino Lakes residents and enhance community programming and access for the
entire community?
2. How can the Recreation Center be differentiated from YMCAs and other community
recreation centers to enhance value to users and draw users and members from outside Lino
Lakes to help support the financial sustainability of the Recreation Center?
a. Can the Recreation Center be a destination facility?
3. How best to position Recreation Center memberships, program, user, and rental fees in the
Lino Lakes community to provide the most equitable and affordable access to residents
while supporting long term financial sustainability?
4. What Recreation Center enhancements and/or expansion and new facilities make the most
sense in terms of community programming and impact and return on investment and long
term financial sustainability?
a. Are there strategic partners or partnerships that can support the Recreation Center
and program enhancements and expansion?
5. How can phasing of facility enhancements and expansion be achieved?
6. What management model makes the most sense in achieving these strategic objectives?
The Strategic Overview has been developed through discussions with City Management and
Leadership, engagement of stakeholders, review of the YMCA programs, budgets, and challenges
that faced the YMCA, and a creative approach to differentiating the Lino Lakes Recreation Center.
These strategic considerations will link the elements of the facility, program, management, and
financial analysis of this Study and Report.
Role in the Community
Perhaps the single most important strategic element we identified was the incorporation of
community programming and access into the existing facility and future expansion and updates.
The YMCA had limited community classes, functions, and community organizational partners and
the ones they had were decreasing, such as some sport classes through Centennial School District
Community Education. Currently the City has limited space and resources for senior programming
and special needs residents are underserved. There is also limited community accessible meeting
and function spaces for use by organizations and outside community programs.
Although the current building has limited function space the potential exists to make this space
more flexible and user friendly and add to increased availability of the small gymnasium and
workout spaces for a wider range of community programming and access.
Communicating this community element will be very important to building membership and use of
the Center and generating support for the long term enhancement and expansion of the Recreation.
We feel it is important to “rebrand” the Recreation Center as the:
“Lino Lakes Recreation and Community Center”
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Throughout the rest of this report we will refer to the Recreation Center as the “Rec & Community
Center” to reinforce this theme or just the “Center.” This name can be tweaked but it will be
important to emphasize both the Recreation and the Community elements of the re-opened Center.
Hopefully a catchy name for the Center can be collectively developed.
Examples and suggestions for the increased role in the community are throughout this report in
facilities, programming and partnerships.
Differentiating Theme(s)
Reviewing the former YMCA programs there were not real unique or specialty programs, facility
features, or other elements that differentiated the Y from other YMCAs or recreation facilities in the
area. Reviewing the needs and opportunities in the area plus shortages of key facilities suggests
differentiating themes for the Rec and Community Center. These themes are discussed in the
Future Long Term Recreation Center Development and Expansion Section of this Report.
Strategic Partnerships
Strategic partnerships will be an important part of both the re-opening and the future expansion of
the Rec and Community Center. Strategic partnerships fall into several categories, all relevant to
the Center. See specific partner details in the Facility Management and Staffing Models section of
this Report. Additional strategic partnerships relevant in long term expansion are discussed in the
Future Long Term Recreation Center Development and Expansion section of this Report.
Program Partner
o Provide programming at the Center under City branding
Specialized expertise and instructors
Specialized equipment partner brings to the programs
Reduce or absorb all of program costs to the City
o Completely manage and run program at Center
Providing all staff and costs for programs
Revenue for City through facility lease or revenue sharing program
o Examples
Outside fitness provider that could run all of the fitness programs at the
Center
Providing management, staffing, equipment, and maintenance
Facility space lease payments and shared user revenue
Capital Partnership
o Provide funding for expansion or enhancement of Center facilities
Most often joint funding of an addition to the Center that would be managed
or leased by the partner as a program partner
o Examples
Development and funding partner for Court Sport Facility and Climbing
Likely partner would manage that facility or portion of its programming
Community/Facility Partner
o Potential partner that has its own facilities that complement the Rec and Community
Center, allowing both the Community partner and the Center to jointly provide
programs at both facilities that cannot be provided by each organization at their own
or the City Rec and Community Center facilities.
o Shared expenses, program management, and revenue/profit
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o Examples
Jointly providing learn to swim program with Centennial School District
Community Ed
See specifics on swim lesson partner program in Aquatics
Programming in the Programming Section of this Report
Key User Groups
o User groups or anchor tenants that would lease spaces at the Center with long term
and volume commitment
Often these anchor tenants provide a key marketing component to increasing
regular facility memberships and program participation
Strategic Long Term Development and Phasing
The immediate priority of the City is to re-open the Center and start up programming, membership,
and community access as soon as is practically and safely possible. The need to open quickly also
reduces the costs of maintaining the Center in its closed dormant state prior to re-opening.
The long term opportunity for expanded and enhanced facility to provide new opportunities and
plan for population, membership, and program growth is an important part of the initial decision
making process of re-opening. The strategic development and phasing for long term growth of the
Center includes the following considerations:
Renewal extension of the existing City property tax levy originally approved to fund the
building of the Center through taxes payable 2022.
Prioritize initial low cost additions, enhancements, and partnerships that can shorten the
ramp up time for Center programs and membership to achieve financial break even more
quickly
o Several program and community partners/user groups have expressed interest in
launching program partnerships coordinated with re-opening
Prioritize these groups for initial discussions of partnership parameters
o Prioritize outdoor enhancements that can be added at limited costs but can accelerate
and grow membership and program elements participation and revenue
Analyze and prioritize long term expansion projects based on several factors:
o Overall cost
o Partnership investment
o Potential impact on Center membership and net revenue
Does any new additions or facility upgrades enhance the overall community
benefits of the Center?
o Overall return on investment
Opportunity for Sport Tourism and economic impact
Impact on business and residential development in Town Center area
adjacent to Rec and Community Center
o Contribution to differentiation of Center and creation of destination components of
Center
Identify efficiency creating elements of bundling additions, enhancements, or renovation of
facilities
o Bundling like or related elements to reduce building costs of each element
independently
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o Create management, maintenance, and operational efficiencies through efficient
design and facility alignment
Page 11 of 73
EVALUATION OF CURRENT FACILITY
The existing YMCA building is typical of YMCAs in the area opened in the early to mid-2000s.
The spaces are relatively small compared to newer larger YMCAs opened in the last ten years, such
as the YMCA in Forest Lake. The overall gross square footage of the existing facility is
approximately 40,000+ sf with a footprint of approximately 32,000 square feet. The YMCA does
have all of the key facility and amenity spaces to support a community Recreation Center. The
YMCA has been very well maintained and the high level analysis of any maintenance issues or
needs did not turn up any significant repair or replacement needs that would add cost to re-opening.
The inspection also did not turn up any significant capital maintenance or replacement needs
projected for the next five to eight years.
Key Recreation Center features include the following:
Aquatics
Lap/Program Pool: Total square feet = 2,966 sf
o 6 x 25 yard lap lanes of 6’ width
Narrow for all but young team swimmers or 2-3 lap lanes
o Depth: 3’6: to 5’
Suitable for community programming
o Temperature: 83-84° F
Suitable for wide range of community programming
Warm for any high intensity training
o Programming Capabilities
Lap lanes for low to mid-intensity fitness swimming
Ideally suited for the youngest age groups on competitive swim teams
(potential for outside user groups)
Swim lessons: Older more advance lesson groups
Good depth and temperature for aquatic and senior fitness programs
Family friendly recreation and aquatic lifestyle activities
Special needs and adaptive PE programming
Lap Pool
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Leisure/Wellness Pool
o Free Form: roughly 70’ x 36’ (total square footage = 2,900 sf)
o Depth: Zero to 5’
o Temperature: 87° F
o Zero/Beach Entry (provides easy wheelchair access also)
o Slide
o Programming (see details and examples in the Aquatic Programming subsection of
the Programming Analysis section of this Report)
Family leisure and recreation
Young child and senior friendly
Therapy/Rehab
Swim Lessons (younger children)
Leisure/Wellness Pool
o Pool Mechanical Systems and Structure
Filter Systems
The Pool mechanical rooms are clean, well maintained, and functional
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Both pools have high rate sand filters. The filters are in good shape
and should not need replacing for another 6-8 years.
New technology in pool filtration systems, water disinfection, and
energy management present options for replacing these filters which
can have a significant impact on reducing water consumption, waste
water to sewer, reduced electrical and natural gas use, and pool
chemical consumption.
o Detailed discussion of new applicable pool mechanical
technology is in Appendix D: Pool Operational and
Mechanical
Current Pool Mechanical Room and Systems
Structural Features
The pool tank is well maintained and not in need of any patching or
re-grouting.
The pool decks are well maintained and are not in need of any
immediate deck replacement.
Fitness and Sport Features
Aerobics Studio spaces: 1,993 sf
o Includes mirrors for classes
Fitness/Cardio/Strength Space; 5,665 sf
o Very open space allowing flexibility as exercise needs evolve
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Fitness/Aerobic Studio
Cardio/Strength Area
Page 15 of 73
Gymnasium: 4,566 sf floor space (4,740 gross sq ft)
o 80’ x 59.25’ including walls
o Small Gym
NOTE: A full size high school basketball court is 84’ x 50’ (Total = 4,200
sf) not including the surrounding safety buffer space
This existing gym supports a smaller size full basketball court
Court lines are marked
Other gym configurations
Volleyball: 1 court (measures 78’ 9” x 49’2.5” for full court and free
zone)
Pickleball Courts: 2 courts can be squeezed into the gym
o Full court is 44’ x 20’ with dimensions of 64’ x 34’ for buffer
area but can be squeezed into 2 spaces in gym measuring 64’ x
29’ each
Current Gymnasium
As indicated in the Strategic Overview adding additional larger gyms is the first priority for future
expansion of the Recreation Center. A detailed discussion of a potential Sport Center including the
enhanced Court Facility and additional amenities is discussed in the Future Long Term Recreation
Center Development and Expansion section of this Report. Potential management partnership and
funding of this Sports Center addition is discussed in the Facility Management and Staffing
Models section.
Multi-Purpose Function Space
Activity/Flex Function and Party Space: 1,479 sf
o Layout and flexibility not well suited to classroom and meeting functions
o Includes small warming/catering kitchenette to support functions
Kid-Zone/Child Watch: 1,343 sf
Small Meeting Room: 240 sf
Current Spaces are limited for any broad expansion of community programming and
meeting/function space. Expanding function/meeting space at the Recreation Center is the
second most important long term priority after court space (See Future Long Term
Recreation Center Development and Expansion section of this of Report).
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Current Facilities
Common Spaces
Locker and Changing Rooms: Total Square Footage = 3,194 sf
o The facility has a good mix of general locker rooms and family changing rooms to
support the facility and near future changes in locker room and changing room
evolution.
o Facility includes a laundry/towel service facility
o No staff locker rooms are in the facility
o Future expansion would need larger locker room space with increased gender
neutral facilities, handicap specific changing rooms, and a small staff locker room
to meet future growth and anticipated ongoing evolution in locker room and
changing room design, codes, and best practices.
Family Changing Room Hallway
Lobby: 1,186 sf
o Includes front desk and access control
o Good space to support size of current size of building and user load
Reception area: 147 sf
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Restrooms: 800 sf
Vending Area: 714 sf
Front Desk and Lobby
Building Support Spaces
Storage Spaces
o Ample storage in most areas for programs and equipment
o Aquatic storage is small to support expansion of aquatic programming
Creative solutions can be explored as aquatic programming expands
Office Spaces
o Admin Offices : 1,456 sf
o Program Offices: 600 sf
o The facility has ample support spaces for building management, administration, and
workspaces for instructors and staff
o Current office, administrative, workspace, and breakroom spaces support the
management/staffing model in both the City Managed and Hybrid Management
models for Recreation Center operation
Office Spaces
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Building Operations and Maintenance
o Building Operations and Maintenance spaces are ample for the current size of the
facility and well located and laid out in the design
Outdoor Spaces
Small fenced in playground accessed through Child Water/Kid Zone in building
Current Playground Area
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PROGRAMMING ANALYSIS
Current programming (up to the pandemic closing) can be classified as traditional YMCA
programming. The programs included basic aquatic programs, standard fitness classes and
programs with inclusion of some relatively new trends, and open facility time for member use.
Quite a few new program and scheduling opportunities exist in a re-envisioned community based
Recreation Center that can provide a wider range of programs, attract new users and members, and
support enhancement and creation of new community wide classes and programs.
This study has identified the following opportunities for expanded programming utilizing the
existing facilities.
Overall Programming Considerations
One of the most important elements of expanded and enhanced programming will be the ability to
run concurrent programming. The pre-COVID YMCA schedule had single programs taking over
specific spaces. Even though the gym and pools are relatively small, their configuration allows for
multiple programs utilizing the spaces concurrently, expanding the availability and range of classes.
Analysis of the schedule also identified the need to a wider range of scheduled times for specific
classes that support wider access to classes when working people and families can more easily
access programs.
Overall, the YMCA programs were limited in supporting several user groups and underserviced
populations across the range of programs. These include:
Senior and Older Adult programs
Intergenerational programs
Special needs and adaptive PE classes and programs
Community programs
Support for underserviced segments of the population, including those unable to afford
membership or programs at the YMCA
AQUATIC PROGRAMMING
Aquatic Fitness
Y aquatic fitness programming is very traditional, focusing on seniors and traditional “aqua
aerobics.” Virtually all classes offered were during the workday, reducing access to aquatic
fitness for working people.
Most of the Y aquatic fitness programs offered focused on low intensity programming, not
taking advantage of the overall benefits of aquatic fitness for cross-training, personal
training, and higher intensity programming.
The current pools support a wider range of aquatic that will appeal to a much wider segment
of the population, including active adults, athletes, and a much wider age and intensity
range. Potential new programs can include:
o Hydro spinning
o In water yoga and balance
o Personal training and cross training
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o Sport Team Cross training
o Aqua Zumba
o Whatever “current fad” dry side program gets converted to the water
o The current facilities would not support deep water exercise or water running
o The revenue projections are based on a very conservative model of:
Classes average a fee of $4/class for residents ($5/class for non-residents)
NOTE: Classes are not included in membership (see discussion in
Membership and User Program section of this Report)
16 classes/week with 8 students/class at $4.00/class for 50 weeks.
NOTE: The Schedule Model for the pools allow time for twice as many
classes per week with space for up to 16 students/class.
o NOTE: The addition and expansion of aquatic fitness program can be phased in as
the Recreation Center program and staff evolve.
Aquatic Fitness Revenue Projections
City Managed and Hybrid Model
(Year 3)
Category Year 3 Revenue
Aquatic Fitness Classes $26,000
Personal Training-Aquatics $7,800
TOTAL REVENUE $33,800
TOTAL EXPENSES $14,520
NET REVENUE $19,280
Profit Margin 57%
Examples of Potential Enhanced Aquatic Fitness and Cross Training
Aqua Zumba Floating Yoga
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Hydro-Spinning High School Sport Team Cross Training
Paddleboard Yoga/Aerobics
Traditional Aquatic Aerobics and Resistance Training
Swim Lesson Programs
The YMCA has a basic swim lesson program. A new and more robust swim lesson program
with new curriculum, lower student to staff ratios (targeting 4:1 compared to YMCA
average of 6:1), and wider range of schedule availability can create a better swim lesson
program for the Recreation Center
The different depths and temperatures in the two pools support a range of lesson students
from the younger parent and tot classes all the way up to adult lessons.
Increase in the offerings of private and semi-private lessons
o These lessons are the fastest category of swim lessons in today’s market
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Swim Lesson Class Fees
A Market Analysis of swim lesson programs in and around Lino Lakes and in the region was
conducted. This Market Analysis included the YMCA of the North Chapter wide swim lesson rates
as well as neighboring community aquatic facility programs. It also looked at private swim schools
and the program fees and structure of the Centennial School District Community Education
program. Since many of the programs have different numbers of classes in each session or different
lengths of class times and billing models we use a pro-rated cost of the lessons per 30minutes of
lesson times. This provides an “apples to apples” comparison regardless of the format.
The Market Analysis is included in Appendix A: Programming #A1
The YMCA group rates were $7.86/30 minutes for YMCA members and $15.57/30 minutes for
non-members. Public facilities such as Shorewood, Brooklyn Center, and Brooklyn Park were in
the range of $10.15 to $11.00 for residents and up to $13.00 for non-residents. The non-resident
premium averaged 10% to 22%. Centennial Community Education rates averaged $9.38/30
minutes. The average student:teacher ratio for these public programs is 6:1.
Local for profit swim schools such as Foss Swim School and Goldfish Swim School usually have a
student:teacher ratio of 4:1 and bill as a monthly membership which provides ongoing 1 lesson per
week. These swim schools average $22.00/30 minutes.
Based on the market research and the opportunities for two water temperature levels at the Rec and
Community Center pools the suggested class fees used in the financial projections are the
following:
Youth Group Lessons: 8 x 30 minute classes per session
Resident: $11.00/hour
Non-Resident $13.00/hour
Adult lessons are based on 6 x 45 minute classes per session but have the same 30/minutes
equivalent.
Residents also have the opportunity to have priority early class registration prior to opening
registration to non-residents.
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Private and Semi-Private and specialty lessons are priced accordingly
Swim Lesson Participation and Revenue Projection
Based on these fees, history of lessons at the YMCA and Community Education the overall swim
lesson revenue projects is as follows:
City Managed Swim Lesson Program Revenue
Lesson
Category
Revenue
Year 1 Year 2 Year 3 *Year 4 Year 5
Youth Group $113,280 $152,928 $175,867 $206,033 $216,335
Adult Group $10,620 $14,337 $16,488 $19,316 $20,281
+Private $21,504 $29,030 $33,385 $39,704 $41,689
Semi-Private $9,120 $12,312 $14,159 $16,633 $17,465
TOTAL
REVENUE $154,524 $208,607 $239,899 $281,686 $295,770
&EXPENSES $69,101 $89,886 $102,042 $117,988 $123,412
NET
REVENUE $85,423 $118,721 $137,857 $163,698 $172,358
Profit Margin 55% 57% 57% 58% 58%
NOTES:
The projections are based on a 60% resident/40% non-resident breakdown
*Projecting a rate increase of 9% in Year 4.
+The YMCA and Community Ed do not offer a wide availability of private lessons and this
projection for the Rec and Community Center is conservative. Private lessons will likely
generate an upside over these conservative projections.
&Expenses include staff, staff training, marketing, supplies, credit card/registration fees,
etc. Instructor wages are average $18/hour to ensure attracting and retaining instructor
staff.
Budget funds are included to support scholarships for those that cannot afford the cost of
lessons
The detail City Managed Lesson Projections are included in Appendix A: Programming
#A2a.
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Swim Lesson Program Partnership with Centennial School District Community Education
Centennial Community Ed runs a well-respected lesson program in the community but the program
is limited by lack of pool space with all of the other uses of the Centennial High School Pool and
the lack of child-friendly warm-water for lessons. The one pool at the high school is kept cooler
(81-82°) based on the use by the high school and club swim teams. The pool also has limited
shallow water space and cannot run lessons during the school day for school security purposes. The
Community Ed program does have a good management and instructor team in place.
The Rec and Community Center has two pools with two different temperatures (84° and 87°) plus
ample shallow water space. The Center also has the ability to offer pre-school and parent/tot
lessons during the school day as well as in the prime after-school hours when the high school pools
is used by the high school swim teams.
Significant synergies, growth and program enhancements can be generated through partnering with
the Centennial School District Community Ed Swim Lesson Program (see Management Options
Section in this Report). Exploratory discussions were held with Community Ed management and
aquatic staff. Community Ed is very interested in further exploring the partnership. There are
several advantages:
Existing trained staff and management would create a faster ramp up and high quality
lessons
Combining programs were reduce “competition” in the market
Community Ed marketing and information brochures and ability to reach families in the
school district and the community would enhance Center and City marketing reach
Although no specific discussions on the structure of this partnership have occurred, the
partnership model could tentatively include the following:
o Community Ed to manage and staff the program
o Community Ed would cover virtually all program expenses
o Resident rates would still apply, for both the City and Centennial School District
residents
o The Center would provide the pool time and related pool operating costs
o City would receive a percentage of gross swim lesson revenue (used 25% in these
projections). This would still give Community Ed the revenue needed to cover their
costs and meet their budget model.
o Community Ed would share in any scholarship costs for students that cannot pay the
full class fee.
This conservative partnership model projects a lower net revenue for the City. These calculations
included in this report can serve as a tool in developing a swim lesson partnership with
Community Ed that would be a net zero impact on the City managed revenue model. There are
other savings that the City Rec and Community Center would realize in a reduction in general
management/administration costs that are not directly shown as swim lesson expenses.
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Following is a summary of the swim lesson program in this Community Ed partnership model.
Community Ed City Partnership Swim Lesson Program Revenue
*Lesson
Category
Revenue
Year 1 Year 2 Year 3 *Year 4 Year 5
Youth Group $142,272 $192,067 $220,877 $259,473 $272,446
Adult Group $13,338 $18,006 $20,707 $24,326 $25,542
+Private $27,296 $36,850 $42,377 $50,234 $52,746
Semi-Private $11,648 $15,725 $18,084 $21,274 $22,338
TOTAL
REVENUE $194,554 $262,648 $302,045 $355,306 $373,071
CITY NET
REVENUE $48,639 $65,662 $75,511 $88,827 $93,268
Variance to
City Managed
Program
$(36,784) $(53,059) $(62,346) $(74,871) $(79,090)
NOTES:
Lesson projects use the same class fees and project an overall increase of 30% in lesson
enrollment in this joint program
The projections are based on a 80% resident/20% non-resident breakdown incorporating
the full Centennial School District and the City of Lino Lakes as residents
*Projecting a rate increase of 9% in Year 4.
*Revenue represents total projected revenue
+City Share used in this calculation is 25% of gross revenue. This is conservative and
hopefully this percentage would be higher
Drawing more participants for swim lessons through the Community Ed partnership should
also help drive additional memberships, but this potential membership increase is not
currently factored into the membership revenue.
The detail Community Education Partnership Lesson Projections are included in Appendix A
Programming #A2b.
Aquatic Therapy and Rehab
The warm water (87° F) and the depths and ease of access in the current Leisure/Wellness
pool is well suited to some levels of Therapy/Rehab treatment and programs:
o Cardio Rehab
o Autism Spectrum (Aquatics is a growing component of programs across the Autism
spectrum)
o Movement
o Arthritic and Pain relief
o Orthopedic rehab
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o And more
These programs are provided by outside therapists or health care providers renting pool
space, usually utilizing the pool during the quieter and less used times during the
work/school day
The initial revenue projection from outside therapist and therapy/rehab service providers is a
very conservative $5,000/year by Year 2.
o This is calculated projecting 100 hours per year (only 2 hours/week for 50 weeks) @
$50/hour rental rate for a portion of the Program/Leisure Pool.
o Space and time in the Program/Leisure Pool schedule can allow five to eight times
more therapy/rehab use in the Pool
Examples of Aquatic Therapy and Rehab
Cardiac Rehab Movement Rehab
Injury Rehab Special Needs Therapy
Aquatic Recreation
The Leisure/Wellness pool has a slide and zero depth that is family friendly and provides
some recreation/leisure amenities to use during open swim
There is a much wider range of aquatic activities that can take place in the lap pool that
attracts a much wider range of ages and users. These include fun activities that support
popular activities in the area and can be taken in and out of the pool.
o Kayak and paddle boarding
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o Inflatable obstacle course for shallow water
o Log rolling
o Water Basketball (the YMCA did have this feature)
o Water Volleyball
Birthday parties
Swim Team/Masters Swimming/Lap Swimming
The lap pool is not suitable for any level of competitive swimming, except for the youngest
age swimmers not utilizing starting blocks
Youth swim team
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o Interviews during the Study with area swim teams did identify a very strong
commitment to rent pool space in the lap pool for use with the team’s youngest entry
level swimmers who prefer the shallow warmer water.
There is potential for a summer recreation entry level swim team at the facility
Lap Swimming
o Increased lap lane availability is factored into the sample pool schedule
We do not anticipate any significant masters swimming program based on the warm water in
the lap pool
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FITNESS PROGRAMMING
As with the aquatic programs, the fitness programs were relatively basic and personal training was
not a significant portion of the overall fitness program. Even before the pandemic driven closer of
the Lino Lakes YMCA the Y was losing fitness oriented members to fitness facilities and programs
that offered more specialized training, more program options and the latest fitness trends appealing
to a wider range of members and participants, often at a lower membership cost. The personal
training options and opportunities are also a significant added benefit for the Rec and Community
Center and can further help differentiate the Center. Expanded, enhanced, and new programs can
include the following:
Higher intensity specialty fitness systems and programs
Increase in senior specific programs
Increased personal training with varying level and package options
Enhanced instructor expertise and quality
Continuing updated programming and equipment and adding new programs
o It is very important to not allow Rec Center fitness programs to get stale or not keep
up with the latest fitness trends.
To achieve these enhanced fitness program goals it is worth exploring using more outside contract
instructors with specialty expertise as well as explore partner program providers that can bring both
expertise and training equipment and systems to the Center. (See Management and Partner Section
of Report). Outside user groups or programs can also lease the exercise studios or workout spaces
for programs not offered by the Rec and Community Center. These can include a wide range of
programs such as martial arts, dance, fit boxing, mindful experience, and much more.
Larger classes can also be held in the current gym. Times when the gym is not fully programmed,
rented, or utilized for open gym the space can be used for a wider range of programs that may be
too big for the dedicated fitness spaces.
Samples of Enhanced and New Fitness Programs at the Center
(Not currently offered or no space, trainers, or equipment to support)
Large Classes in the Gym
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Spinning Specialty Classes
Senior Chair Classes Barre Classes
New Fitness/Strength Trends Martial Arts
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Fitness Program Component Financials
Fitness classes are not included in the membership model used in the financial projections. Not
including basic classes as a membership benefit is designed to keep membership fees low and not
charge members for services and programs they will not use. Class fees are relatively low with a
lower rate for residents than non-residents. The Personal Training component represents a
significant upside potential. This was not a strong program at the YMCA but can be much more
robust at the Recreation Center, particularly with experienced instructors.
Following is the summary of projected Fitness Program revenues and expenses for Year 3.
Fitness Revenue Projections
City Managed Model
(Year 3)
Category Year 3 Revenue
Fitness Classes $67,392
Personal Training-Aquatics $5,980
TOTAL REVENUE $73,372
TOTAL EXPENSES $34,751
NET REVENUE $38,621
Profit Margin 53%
SPECIAL NEEDS AND ADAPTIVE PE PROGRAMS
Special Needs and Adaptive PE Programs were underserved at the YMCA but represent important
community programs for the Recreation and Community Center. These programs include a wide
range of programs, classes, and even competitive programs for both mentally and physically
handicapped of ages, even included veterans programs. These programs also include both aquatic
and dry-side components.
Time and space is allocated in the Schedule Matrices included in this report and referenced in the
Facility Schedule Analysis section as well as in Appendix A: Programming #A3.
Examples of Special Needs and Adaptive PE Programs
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SPORT, CAMP, and YOUTH PROGRAM
Sport Leagues and Programs
The small gym space restricted the extent and capacity of court based sport programs at the former
YMCA. Centennial School District partnered with the YMCA on some introductory sport classes
but this cooperation was winding down prior to the pandemic shutdown. The projections for the
Rec and Community Center do not anticipate any in-house sports leagues. Most of these will
continue to be run by outside groups utilizing school district gyms and facilities.
We anticipate some introductory sport classes for young children and an in-house pickleball
program and league.
If a Sports Center or Court facility is built there will be extensive sport club and league programs,
but these will likely be run through partnerships with any development partner for the Sport Court
Center.
Total in-house sport programs are only projected to generate $9,000 in gross revenue by Year 2
with net revenue of roughly $4,500.
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Youth Summer, Holiday, and Sport Camps
The YMCA did run robust youth camp programs. Interviews with individuals who were part of the
YMCA camp program have expressed confidence that these programs can actually grow, both
inside the Rec and Community Center facility and with programs cross the surrounding park
systems. The potential to bring City Parks and Recreation resources to the camp program will help
open the camp programs up to a larger portion of Lino Lakes youth.
Initial very conservative estimates project gross youth sport camp revenue of $75,000 by Year 2
with net revenue of $34,000. There is significant upsides to the camp program, especially as future
expanded facilities with outdoor sport themed activities that can provide a wider range of
experiences and activities than the former YMCA.
Youth Programs
Youth programs in aquatics and aquatic based recreation will grow at the Rec and Community
Center as previously discussed in Aquatics. The potential also exists to provide more youth based
fitness and activity programs but the limited gym space will continue to limit youth sports
programs. Youth sports and programs will be a significant beneficiary of future development of the
Sports Center and the outdoor sport features.
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FACILITY SCHEDULE ANALYSIS
At first glance it is difficult to imagine the immediate growth of programs and access at the Rec and
Community Center upon re-opening without any additional facility expansion. Detailed review of
the YMCA pre-pandemic program, use, and facility schedules indicated that the scheduling of
facilities and programs did not effectively optimize the use of the different venues in the building,
especially in providing concurrent programs within each venue.
To understand how the variety of programs and schedule demands can be integrated in the existing
ISG has developed a Schedule Model Matrix.
This Matrix lays out a full range of programming across all of the venues within the facility.
Lap Pool
Leisure/Wellness Pool
Cardio/Strength Rooms
Fitness/Exercise Spaces
Gym
Community Meeting/Function Spaces
Child Watch
Programs and time use are broken out by the following general categories:
Aquatics
Fitness
Gym and General Programming/Use
Each category does include times and space available to rent by outside groups
There are six Schedule Matrices to capture the weekly and seasonal variances in programming and
scheduling. These Matrices are:
School Year: Weekdays
School Year: Saturday
School Year: Sunday
Summer: Weekdays
Summer: Saturday
Summer: Sunday
The Schedule Matrix serves several important functions in the programming and analysis of the Rec
and Community Center.
Provides a comprehensive visual of time available for each stakeholder and user
constituencies in the community to understand how and when they can use the Rec and
Community Center
Provides a basis for discussion with potential program or management partners
Provides a quantitative structure to help project Center costs and revenue
o Staffing needed for Center such as lifeguards
o Instructors needed for programs
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o Program time and capacity to calculate program revenue
o Support projections of rental revenues
o Support capacity calculations
o Identify time and space shortfalls in future demand to support projections for long
term facility expansion
Scheduling Principles and Goals
Key principles and goals of stakeholders, user groups, and constituencies:
Maximize availability of some Lap Swim lanes throughout as much of the day as possible
(improving availability of lap lanes compared to former YMCA schedule)
Maximize flexibility for concurrent programming and effective space and time sharing
Adult and child program times that can be accessed by working parents and adults
Mid-day, after-school, evening, and weekend hours available for swim lessons, including
private and semi-private lessons and adult lessons
o Lesson program times in both the Lap and the Leisure/Wellness Pools for different
temperatures
Early morning and evening aquatic fitness class times available in addition to mid-day
lessons for working participants and greater course intensity options accessible to broader
portion of community.
Open after school and evening hours in the leisure pool plus after school availability in
Program pool for youth access and after school programming
Significant time for community open recreation and swim on Saturdays and Sundays,
including opportunity for addition of recreational features to the Main and deep water pools
(see Rectangular Recreation in the Program Section)
Provide school day and after school time availability for non-competitive school district
Create Masters Swimming times before and after work hours and during the lunch hour
Access to the Leisure/Wellness Pool throughout the day for therapy/rehab treatment and
programs
Open Gym space that can be sub-divided to provide for large fitness classes and other
flexible programming
It is important to note that these Schedule Matrices are examples of what can be done. It is unlikely
that the actual schedule will perfectly match these Schedules, but we have programmed these
Matrices based on best practice practices and comparable facility and program schedules, reflecting
times requested by users.
Following is the Schedule Matrix for the School Year weekdays.
The full Schedule Matrix is included in Appendix A: Programming #A3.
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Rec Swim Team/Summer Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 5:00 Cardio
5:30 Masters/ Lap 5:30 Fitness Open
6:00 Triathlon Lanes 6:00 Aquatic Open Classes Gym Meeting
6:30 6:30 Fitness Time Spaces
7:00 7:00 and Flexible Open
7:30 7:30 Personal Scheduling
8:00 Aquatic 8:00 Training Classes &
8:30 Fitness 8:30 More
9:00 Home School 9:00 Swim Senior Pickleball Seniors
9:30 Program 9:30 Lessons Program
10:00 10:00 Home Home
10:30 10:30 School School
11:00 Swim 11:00 Parents and Tots Open Gym
11:30 Lessons 11:30 Water Lessons
12:00 12:00 Aquatic
12:30 12:30 Fitness
1:00 Senior 1:00 Seniors Meeting
1:30 Program 1:30 Srs.Spaces
2:00 2:00 Special Needs Flexible
2:30 2:30 Adaptive PE Scheduling
3:00 After School 3:00 After School After Sch After School Classes &
3:30 Programs 3:30 Programs Programs Programs More
4:00 4:00 Special Needs
4:30 Club Swim Team 4:30
5:00 Outside Rental 5:00 Swim Open Gym
5:30 5:30 Lessons
6:00 6:00 OR
6:30 Aquatic Rec 6:30 Rec Programs
7:00 Programs 7:00 Open Recreation Pickleball
7:30 7:30 Leisure Swim
8:00 Masters/ 8:00 Outside
8:30 Triathlon 8:30 Court
9:00 9:00 Users
9:30 9:30 (Rentals)
10:00 10:00
10:30
Leisure/Wellness Pool
Depth: 0 to 4'6"
Cardio
Fitness
Room
Child
Watch
General Programming/UseFitness & Use Programs
Exercise
Half Gyms
Gym
Lino Lakes Recreation and Community Center
School Year: Weekdays
Stations or Recreation Features
Lap Pool
Depth: 3'6" to 5'
Community
Meeting
Function Space
Sub-Dividable
Warm-Water Spaces
May 17, 2021
Aquatic Programs
25 yards
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MEMBERSHIP and USER PROGRAMS
The issue of membership and user fees has been brought up in virtually all stakeholder and user
engagement meetings, interviews, and input. The key feedback included the following:
The YMCA membership rates were too high
o People leaving the Y or choosing not to join felt that the rates were too high,
especially for those that only wanted to use a portion of the facility
o No senior rates, although many seniors qualified for Silver Sneaker program
subsidies through Medicare Advantage programs or insurance coverage
o Many local public/municipal community recreation centers had much lower rates
than the YMCA
Need options for daily drop-in use, not just membership only
If Lino Lakes is taking over the operation of the Recreation Center Lino Lakes residents
should have a discounted rate
Fitness only commercial facilities have grown in number in Lino Lakes and the surrounding
area providing basic fitness and workout facilities at lower rates.
Membership Market Survey
ISG conducted a market survey of area and regional facility membership and usage fees to provide
a market base to help develop membership/use fee scenarios for the Rec and Community Center.
This market study included public, YMCA of the North, and private facilities. The market study
also differentiated facilities with just fitness and those with comprehensive fitness, gym, and aquatic
facilities. Resident and Non-Resident rates were identified when available at public facilities.
This market study is included in Appendix B: Membership #B1.
Membership Options
Based on stakeholder and constituent input and market research the membership and use scenarios
included both a full facility membership and a fitness only membership option. This two tiered
option creates a fitness membership option that more effectively competes with the private
commercial fitness only facilities in the area as well as an option to for those only looking for the
dry-side fitness facilities and programs. This also provides a cleaner delineation if the fitness
programs and management are outsourced by a private partner.
Membership Benefits
Membership benefits include the following:
Access to open swim, lap lanes, open gym and the cardio and strength workout areas
Discounts on facility rentals, birthday parties, and other special event opportunities
Priority program registrations (along with residents)
The proposed Membership Model used in this study do not include free access to fitness classes.
During the Study we received input recommending lower membership rates without classes
included. Many former YMCA members expressed concerns about paying for programs or classes
in their membership that they would not use. Low rates and pay for programs you use was an
important message.
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In the future a “Premium” membership may be available which would include basic programs.
Membership Categories
A wider range of membership categories are also provided for great flexibility as well as providing
incentives for annual full facility memberships. The following member and user categories are
included:
Adult
Adult Couple (equivalent to 1.5 times a single adult membership)
Senior
Senior Couple (equivalent to 1.5 times a single senior membership)
Child, Youth, Student (all the same)
Family (4 members)
Military Adult
Military Family
Corporate: No revenue factored into budget initially.
Hotel Program to provide access for guests:
Membership Terms
The following membership terms were included:
Monthly
Seasonal
o Based on a three month period
o May be summer membership
o Roughly equal to 2.5 months of the equivalent monthly rate
Annual Lump Sum (in advance)
Most annual membership are equivalent to 11 months of the monthly fee, providing
approximately an 8% discount for the annual rate
The family annual rate is slightly more to further incentivize the annual family membership
Resident versus Non-Resident
The Lino Lakes resident rate is used as the base rate.
Non-Resident rates represent an average of a 20% premium across most membership categories.
If any neighboring community provides financial support for the Rec and Community Center
residents of this community may also qualify for resident rates pending negotiations and level of
support.
Membership Fee Scenarios
To analyze various levels of fees ISG developed three different membership fee scenarios based on
comparison to the current YMCA of the North fees.
ISG developed three different membership and user fee scenarios. These scenarios project resident
rates as a percentage of the current YMCA rates. The three scenarios are the following:
Full Facility Membership (resident)
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o Scenario #1 75% of equivalent YMCA rate
o Scenario #2 60% of equivalent YMCA rate
o Scenario #3 50% of equivalent YMCA rate
Fitness Only Membership (resident)
o Scenario #1 63% of equivalent YMCA rate
o Scenario #2 51% of equivalent YMCA rate
o Scenario #3 42% of equivalent YMCA rate
Following is the Resident Membership Fee Breakdown by category for each scenario with the
comparable YMCA rate.
Rate Scenarios: Full Rec Center Resident Monthly Rates
Membership
Category YMCA Rate
Public Rec
Center
Average*
Scenario #1 Scenario #2 Scenario #3
Adult $71 $36-$40 $53 $42 $35
Adult Couple $121 $60-$71 $86 $63 $53
Senior (65+) NA $34 $30 $26 $20
Senior Couple NA $56-$60 $45 $39 $30
Child/Youth $40-$50 $34 $30 $26 $20
Family $132 $60-$80 $99 $86 $66
Daily Drop-In + NA $6-$10 $6-$8 $5-$7 $5-$7
10-Use Pass+ NA $70-$90 $50-$68 $42-$60 $42-$60
*NOTE: Public Rec Center average range is based on data from the Market Analysis of area and
regional public recreation centers with aquatic facilities. The Market Analysis is found in Appendix
B: Membership #B1.
+NOTE: Daily drop-in rates and 10-use pass rates range from youth to adult.
Daily Drop-in Passes and 10-Visit Passes
The need for drop-in and some type multiple user pass was strongly indicated in ISG’s research and
is typical of most community recreation centers. Drop-ins and multiple use passes only apply to
individuals. They do not apply to families or couples. The categories include adults, seniors, and
youth and includes the military adult category. The Fitness only membership has a daily drop-in fee
but no multiple user pass option.
Punch pass rates also vary by scenario and by full facility or fitness only.
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Membership and Revenue Projections, Including Daily and 10-Visit Passes
Following are the projections of membership numbers and revenue for each scenario in the City
Managed Model. The Membership Units, Members, and Membership Revenue are for combined
overall Rec Center Membership and Fitness Only Memberships. Note that drop-in and punch pass
revenue is highest in Scenario #1 as more users opt for drop-ins instead of membership based on the
higher membership fees.
Membership and Revenue Projections
Category Scenario #1 Scenario #2 Scenario #3
Total Membership Units;
Overall and Fitness Memberships 1,360 1,812 1,977
Total Members 4,737 6,399 7,018
Drop-In Users (per year) 6,775 6,835 6,835
10 Visit Passes 650 650 650
Membership Revenue $1,358,611 $1,567,207 $1,336,223
Drop-In Revenue $46,975 $41,615 $41,615
10 Visit Pass Revenue $40,740 $34,960 $34,960
TOTAL REVENUE $1,446,326 $1,643,782 $1,412,798
Based on comparable market rates ISG projected that the Scenario #2 would be the most effective
balance in maximizing membership while balancing revenue.
Scenario #1 was not enough of a discount to attract YMCA members, especially those that
take advantage of using any Y in the YMCA of the North Chapter. The rates were also
slightly higher than comparable public recreation facilities.
Scenario #3: The added discount of Scenario #3 compared to Scenario #2 was not
significant enough to drive much incremental membership and would generate less overall
revenue
Scenario #2 was the sweet spot in balancing fair and accessible membership fees with
revenue necessary to improve operating net costs/revenue. Scenario #2 revenue projections
are used in the financial budget analysis.
Hybrid Managed Model Membership and Usage Revenue Projections
(Using Year 2 for comparison purposes)
Category Scenario #2
Memberships $1,290,130
Daily Drop In $41,615
Multi-Visit Pass $34,960
TOTAL
REVENUE $1,366,705
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NOTES:
For the purposes of the Hybrid Management Model we focused the analysis on Scenario
#2.
The membership revenue is lower based on a large share of fitness membership revenue is
paid to the Fitness Program Partner, but the overall expense savings still result in a
higher total net revenue for the overall Rec and Community Center.
The full breakdown of daily and multiple user pass rates by scenario and overall annual Year 2
projections is included in Appendix B: Membership #B2.
Membership and Use Scholarships or Need-Based Discounts
Scholarship or need based aid has been factored into the operating budget to enable those that
cannot afford to use the Rec and Community Center and programs to fully access and participate in
the Center and its programs.
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CHILD WATCH PROGRAM
Childwatch Program
An important element of the Membership model as well as the programming at the Rec and
Community Center is the inclusion of a Childwatch program. The Childwatch and Kid Stuff space
is 1,340 square feet in the existing facility. The Childwatch program is designed to provide
childcare for short periods of time (usually up to a maximum of one to two hours) while a parent or
caregiver works out or uses the Center facilities. It is not designed to be a full daycare program.
Use of the Childwatch program is planned to be a benefit of the family membership with the option
to pay a drop in fee for non-family member users. The overall cost of the program is projected to be
approximately $70,000 per year with projected average drop-in fees of $16,000/year.
Example of a Childwatch Space at a Fitness Center
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FACILITY MANAGEMENT and STAFFING MODELS
MANAGEMENT MODELS AND OPTIONS
Center Management Options
The ISG Study explored three Center management options:
1. Total City Managed Facility
2. Total Outsourcing of Management and Operations by outside entity
a. Essentially the same as the former YMCA management model
3. Hybrid Option
a. City manages and operates the facility
b. Outside entities provide management and programming in specific areas
City Managed Model
The City Managed Model is very straight forward and is the model used by most municipal
recreation centers in the area. In this model the City provides all management and operational staff
and pays all operating expenses and maintenance costs. The City also retains all of the revenue.
Some instructors may be independent outside contractors or providers, but for the purposes of this
financial operating analysis all part-time instructors and trainers are assumed to be City employees.
Outsourced Management Model
The full Outsourced Management Model is often used for municipal facilities, especially golf
courses and sometimes ice rinks or large sports complexes. Most outside management groups are
for-profit businesses. In the case of recreation centers where many of the program and use elements
are community service based there is less net operating to support the for-profit management
groups. The City also loses some control over programming and membership models depending on
the structure of the management agreement structure. In analyzing the City goals and objectives
and the financial model, ISG determined that the full Outsourced Management Model was not a
good model for the Center.
Hybrid Management Model
The Hybrid Management Model is designed to take advantage of the City’s expertise in managing
and maintaining facilities while bringing in outside providers or developing program partnerships in
areas where City staff does not have the expertise or experience in house to run specific programs
and management tasks. The Hybrid model also can generate cost reductions in several areas:
Staffing
o Reduce program specific instructors and trainers who are now provided by the
outside entity
o Reduce some facility staffing in the overall operations and program specific support
staff
Program equipment and supplies
o Outside program providers often provide their own equipment which can generate
significant capital and operational cost savings, especially in the category of fitness
programs
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The successful Hybrid model can also help accelerate the ramping up of membership, programming
and revenue generation from opening through Year 2 and Year 3. This acceleration is driven by
several factors:
If program provider relocates their entire program to the Rec and Community Center they
will bring an established membership and participant base to the Center.
The program provider will have an established name and credibility in the market plus an
established marketing platform that can help accelerate the ramp up at the Center.
The Hybrid also shortens the time to develop and train key program staff, especially trainers,
instructors, and coaches.
There are several revenue/fee models associated with outside program providers or management.
Revenue
o Program provider can retain all of the revenue generated by their specific programs
o Program provider can retain a portion of overall facility membership that reasonably
attributed to their programs and the membership they brought from their existing
programs
o The Center and the Provider can develop a revenue sharing plan
Fees paid to the Center
o The provider can pay a direct lease payment to the Center for the space they use for
their programs
o The provider can pay a rights fee for the ability to run the specific program they are
providing
Ultimately most hybrid type partnerships include some combination of these revenue and fee
structures.
In meetings and research ISG identified two areas that would achieve the goals of a hybrid program
partner/manager and enhance the net revenue projections for the Rec and Community Center.
During the course of the Study ISG spoke with several potential providers or partners in these areas
to understand the potential for these partnerships or outside program providers.
Fitness Program Provider and Management
The fitness program at the Rec and Community Center is the prime example of the advantages of an
outside program provider. The advantages include:
An outside provider with an established program would bring a strong existing membership
base to the Rec and Community Center
Experienced trainers and instructors, many with established following in the local market
Wider range of fitness programming, classes, and new trends than offered in the former
YMCA and in most YMCAs and public recreation centers
Faster membership, program, and revenue ramp up upon re-opening
A Fitness Program Provider Partnership could potentially bring the following value and benefits to
the Rec Center.
Close their existing fitness facility and move existing programs and operation to the Rec
Center
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Fitness Provider would provide all necessary fitness, strength, cardio, specialty flooring, and
other program equipment, significantly reducing or virtually eliminating City equipment
costs or lease expenses
Maintain all fitness and exercise equipment
Provide, train, pay, and manage all fitness program staff, instructors, monitors
o Experienced trainers and instructors, many with established following in the local
market
Provide front desk/access control staff to support overall Rec Center front desk staffing
needs
o Reducing City staffing and payroll
An outside provider with an established program would bring a strong existing membership
base to the Rec and Community Center
o Strong likelihood that many Fitness Members would upgrade to full Rec Center
Memberships, driving additional overall membership
Pre-established marketing and social media platforms
The potential financial model with a Fitness Program Provider/Partner could include the following
financial considerations. These would all be part of negotiations with a potential Fitness Program
Partner.
Lease payments to Rec Center
Fitness provider to receive Fitness Memberships
o Potential fitness program revenue sharing with Rec Center
o Fitness provider to receive incentive for Fitness Members upgraded to overall
Memberships
City to share in cost of moving and setting up equipment in Rec Center.
Fitness Partner would provide Lino Lakes resident discounts for programs as well as priority
program registration for residents.
Swim Lesson Program Provider
Partnering with Centennial School District Community Ed in the swim lesson program would be a
successful program partnership benefitting both the Rec Center and Community Ed. The details,
advantages, and financial analysis of this partnership is discussed in Aquatic Programming in the
overall Programming Analysis section of this Report.
STAFFING MODEL
Professional, experienced, and well-trained management, staff, instructors, and trainers are critical
to the success of the Recreation and Community Center (See the Keys to Success and Factors in
Failure section in this Report). During the process of developing this management and staffing
model ISG worked closely with City management and staff to coordinate the development of the
management options and the staffing needed to support each option. The budget projections include
all staff salaries, wages, payroll taxes, employee benefits, training, travel, professional development.
The Staffing Analysis utilizes the following assumptions and information.
Part-time wages assume a future $15/hour minimum wage
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Annual staff wages and salaries assume an annual 4% increase to accommodate cost of
living adjustments and merit and retention raises.
Salary levels fall within the City salary and position guidelines and ranges.
The City Human Resources management have provided the appropriate City calculations of
benefits, payroll taxes and other related additional staffing costs
Increased City staff responsibilities for existing staff are incorporated into the annual City
administration cost allocation included in the operating budget
Key staff positions in the City Managed Model include the following. Positions highlighted in
yellow are positions that may be eliminated or reduced in the Hybrid Management Model with the
use of the Partner management and staff provided. The budget includes the costs of hiring and
starting these positions at appropriate lead times prior to re-opening of the Rec Center.
Full Time Positions
o Facility Director
o Program Manger
o Aquatic Supervisor
o Fitness Supervisor
o Maintenance/Operations Manager
o Membership/Customer Service Manager
o Administrative/Accounting/HR Supervisor
o Front Desk Coordinator
o Custodial and Building Maintenance Staff
Part Time Positions-Operations
o Head Lifeguard
o Lifeguards
o Front Desk/Access Control Staff
o Fitness Attendants
o Custodial/Maintenance Part-time staff
o Child Watch staff
Part Time Positions-Program Staff
o Instructors
o Trainers
o Coaches
Following is summary of overall staff costs for both the City Managed and Hybrid Management
Model assuming both the Fitness Provider partner and a swim lesson partnerships with Centennial
Community Education.
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Summary of Total Recreation and Community Center Staff Costs
Year Three of Operation
Category City Managed
Option
Hybrid
Management
Option
Full-Time Staff $671,974 $545,186
Part-Time Staff (non-program) $504,504 $384,111
Benefits & Payroll Taxes $369,690 $294,897
Other Staff Costs (training, etc.) $9,981 $4,990
Aquatic Program Instructors & Staff $97,144 $12,168
Dry-side Program Instructors & Staff $64,662 $34,772
TOTAL STAFF COSTS $1,717,955 $1,276,124
*TOTAL OPERATING COSTS $2,407,608 $1,922,472
Staff Percent of Total 71% 66%
NOTE: Salary Costs include salaries, wages, employment taxes, and benefits. These costs
were provided by City staff
*NOTE: Total Operating Costs do not include the Long Term Capital Replacement and
Maintenance annual allocation.
The full detail of full-time and part-time staff positions, salary and wages, benefits, and budget
projections are included in the Operational and Program Expenses in the Budget Line Item Detail in
Appendix C: Budget/Operating Analysis #C2 and #C3.
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FINANCIAL BUDGETS and OPERATING PROJECTIONS
The Financial Budget and Operating Projections are based on the following methodology and
assumptions.
Expenses
Utility Expenses factor in a 2.5% annual increase.
o Actual utility costs utilize actual City utility rates and costs.
o Total utility costs are slightly higher than the historic rates at the former YMCA
reflecting escalation and increased use.
Maintenance expenses factor in a 2.5% annual increase except where otherwise noted as
some equipment and maintenance expenses increase as warranties expire and the building
ages.
Staffing expenses project increases of 4% per year based on cost of living and merit and
retention raises.
Lease payments to Rec Center
Budgets include all projected expenses plus a budget expense contingency. Line items
include:
o Credit Card and online registration fees (assumes 100% of all membership and
registration revenue processed by credit cards)
o Marketing, advertising, website, and IT expenses
o Staff training, development, and travel
o Outside services
o Staff outfitting
o Certifications, membership, subscriptions, dues
o Scholarship subsidies or financial aid for City residents unable to afford the
membership or program fees
o Insurance
Annual City Administrative Allocation
o Rec Center share of the following
Allocation to existing City staff responsibilities for Rec Center
Human Resources
Additional in-house administrative, clerical, and accounting services
Marketing
Current City maintenance and grounds keeping staff
Other utilization of existing City support services and staff
o City Administrative Allocation is $150,000 in Year 1
o Future years allocation increases by 5% annually
Revenue
Revenue projections are supported by the back-up worksheets for Membership and Daily
Use included in Appendix B
Swim Lesson projections are supported by the back-up worksheets in Appendix A.
Revenue is also shown for the following areas:
o Vending machines and front desk sale kiosk
o All facility rentals
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No sponsorship or advertising revenue is included in the revenue projections, although the
opportunity will exist for some revenue in these areas.
No grant funds are shown in support of user financial aid, but the opportunity will exist for
some support of the financial aid programs.
Year Zero
Year Zero in the Budget is the period following the City taking control of the facility up to the re-
opening of the Recreation and Community Center. These expenses include the following
Pre-opening expenses
o Staff costs pre-opening
o Marketing
o Cleaning and Building prep
o Re-branding of Recreation Center, including new signage
o Equipment purchases
o Pool start-up
o Other start-up expenses
Building Expenses
o Utilities
o Maintenance and grounds keeping
o Security
o Miscellaneous expenses
Currently all City Year Zero Building expenses are covered by the State of Minnesota leasing of the
building as a COVID vaccination site through June 30.
Long Term Capital Replacement and Maintenance Fund
It is very important that the City budget for projected long term facility capital replacement and
maintenance. The annual maintenance staffing and budget should support best practice annual
maintenance and upkeep, reducing the potential for premature long term replacement and
maintenance. ISG has included an annual budget line item for allocation to a Long Term Capital
Replacement and Maintenance Reserve Fund. This annual allocation to this Fund begins in Year 3
at $60,000 and ramps up to $80,000 in Year 4 and then increases by 3% annually. Total Reserve
Fund accrual over the first twenty years of operation is as follows:
Year Five: $ 292,400
Year Ten: $ 742,997
Year Fifteen: $1,265,362
Year Twenty: $1,870,927
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Annual Profit and Loss Statements
The P & L budget summaries provide a summary of Years Zero to Five for both Management
options. These P & L Statements breakdown the revenue and expenses as follows with detailed
categories within each:
Facility Revenue
Program Revenue
Operational Expenses
Program Expenses
City Administration Allocation
Annual allocation to Long Term Capital Replacement Reserve
The P & L Statements calculate the annual Net Revenue (Deficit) and the percentage Cost Recovery
for both Management options. The Net Revenue (Deficit) calculations calculate the following Net
Revenue scenarios:
Net Operating Expenses
Net Operating Expenses with City Administration Allocation included
Net Operating Expenses with City Admin Allocation plus annual Capital Reserve Fund
allocation
Following is a summary of the Profit and Loss Summary for Year Two.
Year Two P & L Comparison
Budget Category City Managed
Option
Hybrid
Management
Option
Variance
Facility Revenue $1,767,017 $1,561,440 $(205,577)
Program Revenue $406,157 $186,162 $(219,995)
TOTAL REVENUE $2,173,174 $1,747,602 $(425,572)
Operational Expenses $1,952,592 $1,617,475 $335,117
Program Expenses $191,529 $67,550 $123,979
City Admin Share Allocation $157,500 $157,500 $0
*TOTAL EXPENSES $2,301,621 $1,842,525 $459,096
NET REVENUE (DEFICIT) $(128,447) $(94,923) $33,524
Cost Recovery 94% 95%
*NOTE: Total Expenses do not include annual Long Term Reserve Allocation.
Accrued Net Operating Revenue (Deficit)
The P & L Statements also show the accrued Deficit for the Rec Center from Year Zero through
Year Five. The accrued Deficit is where the biggest variance between the City Managed and
Hybrid Management Model exists. The accrued Deficit for the Hybrid Management Model is
significantly less than the City Management Model based on the much lower up front re-opening
costs and the faster ramp up of membership and program revenue.
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Following is a summary of the accrued operating Deficits for each option through the first five
years of Rec Center operation.
Accrued Operating Deficits through Year Five
(With City Administration Allocation but without Capital Reserve Fund Allocation)
Year City Managed Accrued
Deficit
Hybrid Management
Accrued Deficit Variance
Year Zero $515,905 $437,255 $78,650
Year One $1,035,587 $709,945 $325,642
Year Two $1,164,034 $804,868 $359,166
Year Three $1,272,687 $892,465 $380,221
Year Four $1,353,860 $969,878 $383,982
Year Five $1,436,084 $1,055,473 $380,612
Bottom Line
After Year Three, the net deficit variance between the two Management Options level off and are
roughly equivalent. Although the projections show this variance leveling off, we feel that the
potential net operating revenue has a higher upside in the Hybrid Management Model based on
continuing updating of programs and enhanced program opportunities.
These P & L Summaries do not include the potential additional operating revenue and expenses for
future expansions. These are dealt with at a very high level in the Future Long Term Recreation
Center Development and Expansion section of this Report.
The detailed P & L Summary with all revenue and expense categories for both Management
options is included in the next nine pages. These P & L Summaries also include the annual
growth in both Revenue and Expenses.
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A B C G H I J K L
Membership Scenario #2
NOTES:*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Net Operating Revenue (Deficit) Categories Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included
REVENUE Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
FACILITY REVENUE -$ 1,342,698$ 1,767,017$ 1,853,709$ 1,944,063$ 2,039,660$
Educational, Classes, Camps and Clinics Rentals 0 0 0 0 0 0
Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729
Pool Rentals 0 36,412 39,773 40,806 42,082 43,398
Competitive Event Rentals 0 0 0 0 0 0
Special Events & Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065
Therapy, Rehab, Health Use 0 0 0 0 0 0
Memberships & Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655
Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813
Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0
School District and Partners 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0
PROGRAM REVENUE -$ 296,024$ 406,157$ 445,246$ 495,247$ 517,873$
Education and Community Programming 0 5,500 10,500 10,815 11,248 11,698
Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training 0 65,000 70,550 73,372 76,307 79,359
Learn to Swim 0 154,524 208,607 239,899 281,686 295,770
Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124
Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0
TOTAL REVENUE -$ 1,638,722$ 2,173,174$ 2,298,955$ 2,439,310$ 2,557,533$
Projected Revenue Growth Rate 33%6%6%5%
Rec and Community Center Projections
Lino Lakes Recreation and Community Center
Profit & Loss Summary
May 10, 2021
Existing Facility City Managed
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A B C G H I J K L
EXPENSES Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
OPERATIONAL EXPENSES 515,905$ 1,859,962$ 1,952,592$ 2,035,846$ 2,120,662$ 2,221,809$
Utilities 9,000 140,631 144,850 149,195 153,671 158,281
Maintenance 19,000 44,000 45,320 46,680 48,080 56,522
Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687
Staff Wages & Salary & Benefits
Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851
Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216
Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584
Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486
Outside Services 15,000 16,000 11,150 11,335 6,525 6,720
General Office 11,500 88,411 107,184 110,708 114,356 118,206
Insurance 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000
PROGRAM EXPENSES -$ 148,441$ 191,529$ 206,387$ 226,177$ 235,623$
Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179
Aquatic Training, Fitness, and Therapy 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness &Training 0 30,900 33,453 34,751 36,101 37,505
Learn to Swim 0 69,101 89,886 102,042 117,988 123,412
Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394
Program Staff-Miscellaneous 0 0 0 0 0 0
Scholarships & Student Support 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000
TOTAL OPERATING EXPENSES 515,905$ 2,008,403$ 2,144,121$ 2,242,233$ 2,346,839$ 2,457,432$
Projected Expense Growth Rate 7%5%5%5%
CITY SHARED ADMINISTRATIVE EXPENSES -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$
GROSS TOTAL OPERATING EXPENSES 515,905$ 2,158,403$ 2,301,621$ 2,407,608$ 2,520,483$ 2,639,758$
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A B C G H I J K L
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
NET OPERATING REVENUE (DEFICIT)(515,905)$ (369,682)$ 29,053$ 56,722$ 92,471$ 100,102$
Not Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%82%101%103%104%104%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (885,587)$ (856,534)$ (799,812)$ (707,341)$ (607,240)$
NET GROSS OPERATING REVENUE (DEFICIT)(515,905)$ (519,682)$ (128,447)$ (108,653)$ (81,173)$ (82,224)$
Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%76%94%95%97%97%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,164,034)$ (1,272,687)$ (1,353,860)$ (1,436,084)$
NON-OPERATING EXPENSES
Long Term Capital Replacement & Maintenance Reserve 0 0 60,000 70,000 80,000 82,400
Capital Reserve Accumulation Years 1-5 292,400
Years 6-10 84,872 87,418 90,041 92,742 95,524
Years 11-15 98,390 101,342 104,382 107,513 110,739
Years 16-20 114,061 117,483 121,007 124,637 128,377
Capital Accumulation Year 10 742,997
Capital Accumulation Year 15 1,265,362
Capital Accumulation year 20 0 1,870,927
NON-OPERATING EXPENSES -$ -$ 60,000$ 70,000$ 80,000$ 82,400$
GRAND TOTAL ALL EXPENSES (Including Reserve)515,905$ 2,158,403$ 2,361,621$ 2,477,608$ 2,600,483$ 2,722,158$
GRAND TOTAL REVENUE (DEFICIT)(515,905)$ (519,682)$ (188,447)$ (178,653)$ (161,173)$ (164,624)$
COST RECOVERY 0%76%92%93%94%94%
CUMMULATIVE TOTAL GROSS REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,224,034)$ (1,402,687)$ (1,563,860)$ (1,728,484)$
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A B C G H I J K L
Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Net Operating Revenue (Deficit) Categories Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included
REVENUE Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
FACILITY REVENUE -$ 1,336,903$ 1,561,440$ 1,634,173$ 1,709,872$ 1,790,042$
Educational, Classes, Camps and Clinics Rentals 0 0 0 0 0 0
Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729
Pool Rentals 0 36,412 39,773 40,806 42,082 43,398
Competitive Event Rentals 0 0 0 0 0 0
Special Events & Function Space Rentals 0 18,000 24,000 24,720 25,668 26,652
Therapy, Rehab, Health Use 0 0 0 0 0 0
Memberships & Daily Use Fees 0 1,181,491 1,385,017 1,454,268 1,525,932 1,601,904
Retail and Vending Revenue 0 6,000 7,650 7,880 8,116 8,359
Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0
School District and Partners 0 75,000 75,000 75,000 75,000 75,000
Miscellaneous 0 0 0 0 0 0
PROGRAM REVENUE -$ 120,639$ 186,162$ 200,701$ 219,024$ 228,673$
Education and Community Programming 0 7,000 13,000 13,390 13,926 14,483
Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training 0 0 0 0 0 0
Learn to Swim 0 48,639 65,662 75,511 88,827 93,268
Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 0 0 0 0 0
Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0
TOTAL REVENUE -$ 1,457,541$ 1,747,602$ 1,834,874$ 1,928,896$ 2,018,715$
Projected Revenue Growth Rate 20%5%5%5%
Rec and Community Center Projections
Lino Lakes Recreation and Community Center
Profit & Loss Summary
May 10, 2021
Existing Facility Hybrid Management Model
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic
Partnership
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EXPENSES Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
OPERATIONAL EXPENSES 437,255$ 1,532,351$ 1,617,475$ 1,687,915$ 1,761,280$ 1,848,308$
Utilities 9,000 140,631 144,850 149,195 153,671 158,281
Maintenance 19,000 43,000 44,290 45,619 46,987 55,397
Equipment and Supplies 210,514 67,000 72,010 74,170 76,395 78,687
Staff Wages & Salary & Benefits
Full Time Staff 108,958 494,500 519,225 545,186 572,446 601,068
Part Time Staff 13,500 348,400 365,820 384,111 403,317 423,482
Benefits and Payroll Taxes 46,283 267,480 280,854 294,897 309,642 325,124
Staff-Other Costs 2,000 4,750 4,869 4,990 5,115 5,243
Outside Services 11,000 64,831 73,656 77,066 77,643 81,395
General Office 9,500 81,760 94,101 97,071 100,137 103,376
Insurance 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000
PROGRAM EXPENSES -$ 47,880$ 67,550$ 69,182$ 71,384$ 73,676$
Community and Educational Programs 0 3,300 5,700 5,856 6,070 6,293
Aquatic Training, Fitness, and Therapy 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness &Training 0 1,000 1,000 1,000 1,000 1,000
Learn to Swim 0 4,750 4,750 4,750 4,750 4,750
Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 0 0 0 0 0
Program Staff-Miscellaneous 0 0 0 0 0 0
Scholarships & Student Support 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous Expense Contingency 0 3,750 3,000 2,500 2,500 2,500
TOTAL OPERATING EXPENSES 437,255$ 1,580,231$ 1,685,025$ 1,757,097$ 1,832,664$ 1,921,984$
Projected Expense Growth Rate 7%4%4%5%
CITY SHARED ADMINISTRATIVE EXPENSES -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$
GROSS OPERATING EXPENSES 437,255$ 1,730,231$ 1,842,525$ 1,922,472$ 2,006,308$ 2,104,310$
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NET OPERATING REVENUE (DEFICIT)(437,255)$ (122,690)$ 62,577$ 77,777$ 96,232$ 96,731$
Not Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%92%104%104%105%105%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(437,255)$ (559,945)$ (497,368)$ (419,590)$ (323,359)$ (226,628)$
NET GROSS OPERATING REVENUE (DEFICIT)(437,255)$ (272,690)$ (94,923)$ (87,598)$ (77,412)$ (85,595)$
Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%84%95%95%96%96%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(437,255)$ (709,945)$ (804,868)$ (892,465)$ (969,878)$ (1,055,473)$
NON-OPERATING EXPENSES
Long Term Capital Replacement & Maintenance Reserve 0 0 60,000 70,000 80,000 82,400
Capital Reserve Accumulation Years 1-5 292,400
Years 6-10 84,872 87,418 90,041 92,742 95,524
Years 11-15 98,390 101,342 104,382 107,513 110,739
Years 16-20 114,061 117,483 121,007 124,637 128,377
Capital Accumulation Year 10 742,997
Capital Accumulation Year 15 1,265,362
Capital Accumulation year 20 0 1,870,927
NON-OPERATING EXPENSES -$ -$ 60,000$ 70,000$ 80,000$ 82,400$
GRAND TOTAL ALL EXPENSES (Including Reserve)437,255$ 1,730,231$ 1,902,525$ 1,992,472$ 2,086,308$ 2,186,710$
GRAND TOTAL REVENUE (DEFICIT)(437,255)$ (272,690)$ (154,923)$ (157,598)$ (157,412)$ (167,995)$
COST RECOVERY 0%84%92%92%92%92%
CUMMULATIVE TOTAL GROSS REVENUE (DEFICIT)(437,255)$ (709,945)$ (864,868)$ (1,022,465)$ (1,179,878)$ (1,347,873)$
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A B C G H I J K L M N O P Q R
Membership Scenario #2
NOTES:*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Net Operating Revenue (Deficit) Categories Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included
REVENUE Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
FACILITY REVENUE -$ 1,342,698$ 1,767,017$ 1,853,709$ 1,944,063$ 2,039,660$ -$ 1,336,903$ 1,561,440$ 1,634,173$ 1,709,872$ 1,790,042$
Educational, Classes, Camps and Clinics Rentals 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 -$ 20,000$ 30,000$ 31,500$ 33,075$ 34,729$
Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 -$ 36,412$ 39,773$ 40,806$ 42,082$ 43,398$
Competitive Event Rentals 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
Special Events & Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065 -$ 18,000$ 24,000$ 24,720$ 25,668$ 26,652$
Therapy, Rehab, Health Use 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
Memberships & Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 -$ 1,181,491$ 1,385,017$ 1,454,268$ 1,525,932$ 1,601,904$
Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813 -$ 6,000$ 7,650$ 7,880$ 8,116$ 8,359$
Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
School District and Partners 0 0 0 0 0 0 -$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$
Miscellaneous 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
PROGRAM REVENUE -$ 296,024$ 406,157$ 445,246$ 495,247$ 517,873$ -$ 120,639$ 186,162$ 200,701$ 219,024$ 228,673$
Education and Community Programming 0 5,500 10,500 10,815 11,248 11,698 0 7,000 13,000 13,390 13,926 14,483
Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training 0 65,000 70,550 73,372 76,307 79,359 0 0 0 0 0 0
Learn to Swim 0 154,524 208,607 239,899 281,686 295,770 0 48,639 65,662 75,511 88,827 93,268
Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0
Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124 0 0 0 0 0 0
Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL REVENUE -$ 1,638,722$ 2,173,174$ 2,298,955$ 2,439,310$ 2,557,533$ -$ 1,457,541$ 1,747,602$ 1,834,874$ 1,928,896$ 2,018,715$
Projected Revenue Growth Rate 33%6%6%5%-$ 20%5%5%5%
Variance of Hybrid Model vs. City Managed (181,180)$ (425,572)$ (464,081)$ (510,414)$ (538,819)$
Hybrid Management Model: Rec and Community Center Projections
May 10, 2021
City Managed Rec and Community Center Projections
Lino Lakes Recreation and Community Center
Comparison: City Managed versus Hybrid Management Model
Profit & Loss Summary
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A B C G H I J K L M N O P Q R
EXPENSES Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
OPERATIONAL EXPENSES 515,905$ 1,859,962$ 1,952,592$ 2,035,846$ 2,120,662$ 2,221,809$ 437,255$ 1,532,351$ 1,617,475$ 1,687,915$ 1,761,280$ 1,848,308$
Utilities 9,000 140,631 144,850 149,195 153,671 158,281 9,000 140,631 144,850 149,195 153,671 158,281
Maintenance 19,000 44,000 45,320 46,680 48,080 56,522 19,000 43,000 44,290 45,619 46,987 55,397
Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687 210,514 67,000 72,010 74,170 76,395 78,687
Staff Wages & Salary & Benefits
Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851 108,958 494,500 519,225 545,186 572,446 601,068
Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216 13,500 348,400 365,820 384,111 403,317 423,482
Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584 46,283 267,480 280,854 294,897 309,642 325,124
Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486 2,000 4,750 4,869 4,990 5,115 5,243
Outside Services 15,000 16,000 11,150 11,335 6,525 6,720 11,000 64,831 73,656 77,066 77,643 81,395
General Office 11,500 88,411 107,184 110,708 114,356 118,206 9,500 81,760 94,101 97,071 100,137 103,376
Insurance 5,000 10,000 10,300 10,609 10,927 11,255 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 2,500 10,000 7,500 5,000 5,000 5,000
PROGRAM EXPENSES -$ 148,441$ 191,529$ 206,387$ 226,177$ 235,623$ -$ 47,880$ 67,550$ 69,182$ 71,384$ 73,676$
Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179 0 3,300 5,700 5,856 6,070 6,293
Aquatic Training, Fitness, and Therapy 0 9,000 14,000 14,520 15,061 15,623 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness &Training 0 30,900 33,453 34,751 36,101 37,505 0 1,000 1,000 1,000 1,000 1,000
Learn to Swim 0 69,101 89,886 102,042 117,988 123,412 0 4,750 4,750 4,750 4,750 4,750
Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0
Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394 0 0 0 0 0 0
Program Staff-Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0
Scholarships & Student Support 0 5,000 5,000 5,000 5,000 5,000 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000 0 3,750 3,000 2,500 2,500 2,500
TOTAL OPERATING EXPENSES 515,905$ 2,008,403$ 2,144,121$ 2,242,233$ 2,346,839$ 2,457,432$ 437,255$ 1,580,231$ 1,685,025$ 1,757,097$ 1,832,664$ 1,921,984$
Projected Expense Growth Rate 7%5%5%5%7%4%4%5%
Variance of Hybrid Model vs. City Managed (78,650)$ (428,172)$ (459,097)$ (485,136)$ (514,175)$ (535,448)$
CITY SHARED ADMINISTRATIVE EXPENSES -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$ -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$
GROSS TOTAL OPERATING EXPENSES 515,905$ 2,158,403$ 2,301,621$ 2,407,608$ 2,520,483$ 2,639,758$ 437,255$ 1,730,231$ 1,842,525$ 1,922,472$ 2,006,308$ 2,104,310$
Variance of Hybrid Model vs. City Managed (78,650)$ (428,172)$ (459,097)$ (485,136)$ (514,175)$ (535,448)$
City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections
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A B C G H I J K L M N O P Q R
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
NET OPERATING REVENUE (DEFICIT)(515,905)$ (369,682)$ 29,053$ 56,722$ 92,471$ 100,102$ (437,255)$ (122,690)$ 62,577$ 77,777$ 96,232$ 96,731$
Not Including City Administrative Allocation
Variance of Hybrid Model vs. City Managed 78,650$ 246,992$ 33,524$ 21,055$ 3,761$ (3,371)$
COST RECOVERY (Direct Revenue & Expenses Only)0%82%101%103%104%104%0%92%104%104%105%105%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (885,587)$ (856,534)$ (799,812)$ (707,341)$ (607,240)$ (437,255)$ (559,945)$ (497,368)$ (419,590)$ (323,359)$ (226,628)$
Variance of Hybrid Model vs. City Managed 78,650$ 325,642$ 359,166$ 380,221$ 383,982$ 380,612$
NET GROSS OPERATING REVENUE (DEFICIT)(515,905)$ (519,682)$ (128,447)$ (108,653)$ (81,173)$ (82,224)$ (437,255)$ (272,690)$ (94,923)$ (87,598)$ (77,412)$ (85,595)$
Including City Administrative Allocation
Variance of Hybrid Model vs. City Managed 78,650$ 246,992$ 33,524$ 21,055$ 3,761$ (3,371)$
COST RECOVERY (Direct Revenue & Expenses Only)0%76%94%95%97%97%0%84%95%95%96%96%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,164,034)$ (1,272,687)$ (1,353,860)$ (1,436,084)$ (437,255)$ (709,945)$ (804,868)$ (892,465)$ (969,878)$ (1,055,473)$
Variance of Hybrid Model vs. City Managed 78,650$ 325,642$ 359,166$ 380,221$ 383,982$ 380,612$
NON-OPERATING EXPENSES
Long Term Capital Replacement & Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 0 0 60,000 70,000 80,000 82,400
Capital Reserve Accumulation Years 1-5 292,400 292,400
Years 6-10 84,872 87,418 90,041 92,742 95,524 84,872 87,418 90,041 92,742 95,524
Years 11-15 98,390 101,342 104,382 107,513 110,739 98,390 101,342 104,382 107,513 110,739
Years 16-20 114,061 117,483 121,007 124,637 128,377 114,061 117,483 121,007 124,637 128,377
Capital Accumulation Year 10 742,997 742,997
Capital Accumulation Year 15 1,265,362 1,265,362
Capital Accumulation year 20 0 1,870,927 0 1,870,927
NON-OPERATING EXPENSES -$ -$ 60,000$ 70,000$ 80,000$ 82,400$ -$ -$ 60,000$ 70,000$ 80,000$ 82,400$
GRAND TOTAL ALL EXPENSES (Including Reserve)515,905$ 2,158,403$ 2,361,621$ 2,477,608$ 2,600,483$ 2,722,158$ 437,255$ 1,730,231$ 1,902,525$ 1,992,472$ 2,086,308$ 2,186,710$
GRAND TOTAL REVENUE (DEFICIT)(515,905)$ (519,682)$ (188,447)$ (178,653)$ (161,173)$ (164,624)$ (437,255)$ (272,690)$ (154,923)$ (157,598)$ (157,412)$ (167,995)$
COST RECOVERY 0%76%92%93%94%94%0%84%92%92%92%92%
CUMMULATIVE TOTAL GROSS REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,224,034)$ (1,402,687)$ (1,563,860)$ (1,728,484)$ (437,255)$ (709,945)$ (864,868)$ (1,022,465)$ (1,179,878)$ (1,347,873)$
City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections
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Budget Line Item Detail
Supporting the P & L Summaries the detailed Budget Line Item Detail spreadsheets are included
in Appendix C. These cost and revenue center budget worksheets include pre-opening expenses
prior to the re-opening of the Recreation Center in Year Zero. For budgeting purposes Year One
begins with the re-opening of the facility and subsequent years correspond to the year in operation.
These years to do not correspond to the City Fiscal Year or a calendar year. The budgets can be
updated to correspond with the City Fiscal Year when an opening date is determined.
The budget worksheets also include a comment column providing detailed comments for specific
line items. These worksheets also include color highlights of specific line items identifying the
following:
Items to Review in the Next Steps phase
Potential for reduced costs
Potential for increased costs
Potential for increased revenue
The full budget detail supporting the P & L Summary for the two Management options are
included in Appendix C as follows:
APPENDIX C: Budget/Operating Analysis
#C2 City Managed Model Budget Line Item Detail
#C2a Facility Revenue
#C2b Program Revenue
#C2c Operational Expenses
#C2d Program Expenses
#C2e Program Profit Analysis
#C3 Hybrid Management Model Budget Line Item Detail
#C3a Facility Revenue
#C3b Program Revenue
#C3c Operational Expenses
#C3d Program Expenses
#C3e Program Profit Analysis
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FUTURE LONG TERM RECREATION CENTER
DEVELOPMENT AND EXPANSION
Future Long Term Development and Expansion of the Recreation and Community Center focus on
several key areas. See the Strategic Overview section of this Report for discussion of the
underlying strategy.
Plan for future growth in City and regional population
Plan for future program, membership, and use growth
Address current needs identified
o Court Space
o Community function and meeting space
Provide support for differentiating themes for the Recreation and Community Center
o Outdoor Sports and Activities
o Sport Center (court complex)
The expansion of the Outdoor Sports and Activities and the Sport Center lend themselves to
partnership development, outside investment, and outside program providers.
Outdoor Sport Center
The existing facility has a small playground attached to the building. Space exists on the City
owned site to not only support expansion of the building but to provide for the utilization of
additional space to create outdoor sport activities that are unique to the City and the area. These can
also link to classes and activities inside the current and future Rec and Community Center. An
“Outdoor Sports Center” can include the following:
Expanded child and youth playground
Outdoor fitness course
Ropes course
Trail link to nearby park areas
Dog Park
The Outdoor theme can be connected to indoor activities that teach and support outdoor sport and
lifestyle activities, such as:
Kayak, Paddleboard classes in the lap pool
Climbing Wall/Gym included in expansion of facility
Outdoor recreation activities built into year round youth camps and community classes
The Outdoor Sport and Activity theme can be a cost effective way to enhance the differentiating
elements of the Lino Lakes Recreation and Community Center as well as enhancing the financial
sustainability of the Center and creating unique programming for the City and its residents.
The cost projections vary greatly for each potential component of these outdoor facilities,
depending on design and elements. Costs can be in the $50,000 to $150,000 for outdoor fitness
courses and the compact ropes courses can range from $100,000 and up much higher. The Ropes
Course could link to the climbing wall partner linked to the Sports Center.
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Examples of Potential Outdoor Opportunities
Outdoor Fitness Stations: Can Connect To Trails
Compact Rope Courses and Team Building
(Youth and Adults)
Sand Volleyball Dog Park
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Sport Center Court Complex
The analysis of the existing facility as well as facilities in Lino Lakes and the wider area have
identified a significant lack of good centralized and flexible court sport facilities; including
basketball, volleyball, and pickleball in particular. The local School Districts have a large number
of gyms and courts but they are spread throughout the schools and often are limited use joint
facilities such as school cafeterias and function spaces that double as courts as needed. There is no
facility in the area that can support tournaments and training for these sports as well as provide an
engine for sports tourism and economic impact.
Most importantly, a court sport center can provide the facility framework for outdoor sport facilities
and the addition of critical community fitness facilities at the Rec and Community Center. These
elements all combine a strong revenue stream that can actually create a profit center for the overall
Recommended features include the following:
Recommend 6 x full size basketball courts
o Can accommodate:
10 volleyball courts
Large number of pickleball courts
o Sub-dividable to create sport specific area court spaces
Support amenities for training and tournaments
o Can expand training areas pending increasing capacity needs in overall facility
workout, fitness, and training spaces
o Expanded and enhanced meeting and flexible function spaces that can not only
support events and use in the Court Center but can provide additional flexible
community meeting and function spaces as the community element of the Center
continue to expand
Features supporting the Outdoor Sport Center and overall fitness facilities
o Indoor walking/running track
One of the most requested fitness features that the existing facility lacks is an
indoor walking track
Building a court facility likes this provides the structure for inclusion of a
large second level walking track surrounding the courts.
Adding a walking track to the existing building or as a separate new
facility is cost prohibitive.
Adding the walking track to a new court addition is very cost
effective with the space, height and structure in place as part of the
new Court Sport addition
o Climbing Wall or Gym
A large climbing wall with appropriate height is very costly to build on its
own. Incorporation into a new Court Sport addition provides the height and
structural framework to create a much more cost effective climbing wall
addition than a standalone structure.
Further enhancing the potential for this differentiating element is the potential of a private
investment interest in the north suburbs looking to partner with a community to develop such a
facility.
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Estimated Cost Projections
Estimated Costs of the Sport Center addition (2021 dollars)
o Court complex: $9,000,000 to $12,000,000
Depends on a large number of variables in design, materials, and supporting
spaces
o Indoor Walking Track: $500,000 to $750,000
When combined with Sport Center construction
o Climbing Wall: $500,000 to $750,000
When combined with Sport Center construction
Examples of Sport Center or Court Sport Center
(Basketball, Volleyball, Pickleball)
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Additional Differentiating Features in Sport Center
Elevated Walking Track around Gym
Climbing Wall Incorporated into Sports Center
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Additional Meeting and Function Space
As part of the Sport Center Expansion there is an option to include some additional meeting and
function space for the overall Recreation and Community Center. Additional space can help meet
current and future needs plus community program expansion and enhancements.
Enhancements as part of Additions and Future Upgrades
Page 58 of 73
POTENTIAL IMPACT OF COVID-19 PANDEMIC
The current COVID pandemic has had a very significant and undoubtedly a lasting impact on
aquatic and recreational facilities. The majority of current focus to date is on how to most safely
open existing facilities and how to begin operations and programming in a safe and healthy fashion
during the course of the pandemic. The aquatic and overall recreation and sport industry is also
trying to identify and develop facility, operation, and management long term changes that will be
part of a “New Normal” in the future. The future New Normal may include code updates and
requirements as well as non-code best practices. These New Normal elements will be in design,
operations, and programming elements, touching most aspects of new and existing facilities.
ISG has identified some of the most likely potential accommodations to address, prevent, and
mitigate future health challenges and crises. Keep in mind that these are not yet requirements but
that best practices may suggest some or all of these initiatives. We have tried to take into account
some added budget to support potential additional operating costs. These included the following.
Operational Elements
These are most relevant to the re-opening Lino Lakes Rec and Community Center
Increase staff and outside services costs
o Added custodial staff and time for enhanced cleaning and disinfecting
o Added outside services for potential staff, user, and facility testing and cleaning
o Potential added front desk/access point control and staffing for potential screening
and monitoring
Staff training and safety costs
o Additional staff and management training on handling and management of health
emergencies (beyond current First Aid, CPR, AED) and new standard practices
o Additional Personal Protective Equipment (PPE) for use by staff as needed
System Operations
o Enhanced air handling and HVAC systems, including addition of HEPA filters and
other air quality controls
o Increase requirements for outside replacement air exchange in system
NOTE: Source capture exhaust system discussed in this report would be a
major advantage in this process
o Potential increase in pool water turnover rate (although COVID does not live in
chlorinated water, this may be a broader concession to future health crises)
NOTE: The projected design and costing in the report include all the state of
the art water mechanical and purification systems that currently exist and are
recommended for optimum health conditions.
Develop inside traffic and circulation patterns that encourage social distancing and
eliminating bottle necks
Development of updated emergency action plans to address future contagious health issues
and threats
Change in overall code bather and user capacity load calculations
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Design Elements
These elements are not relevant currently to the Center, but will be in the future for any expansion
or addition.
Potential increase in code space requirements concerning deck, changing rooms, locker
rooms and other common spaces based on lower user capacities/square meter.
Increased design and cost for increased separation or partitioning in common areas,
particularly locker rooms, changing areas, and restrooms
Incorporate more robust and higher capacity HVAC and dehumidification systems
o See operational note above
o Potentially include new UV and Bipolar Ionization air purification systems
o In July he ASHRE (the American Society of Heating, Refrigerating and Air
Conditioning Engineers) Epidemic Task Force has issued new air purification and
HVAC safety recommendations to address the current and minimize future
contagious illness and pathogen circulation in indoor air systems
New products for facility safety and cleanliness are already coming to market. It will be
important to continue to be award of new technologies relevant to existing and new aquatic,
sport, and recreational facilities.
Renovation
Renovation considerations are relevant to the Center as systems replacement or other renovation
take place over the next several years.
Consider upgrading pool water mechanical systems at existing pools earlier than dictated by
projected life expectancy
o Added advantage of achieving operational cost savings and increased efficiency in
addition to the higher levels of water quality and cleanliness
o Relevant to the BAC/Odle analysis and renovation plan
Review current HVAC system to identify potential upgrades and inclusion of air purification
systems
When reviewing potential renovation of locker rooms, changing rooms, and common lobby
space take spacing and partitions into account based on the latest recommendations at the
time of renovation
Page 60 of 73
PROJECT TIMELINE and NEXT STEPS
Re-Opening Timeline
The potential re-opening date for the Recreation and Community Center is still to be determined.
Following is a timeline working back from the re-opening date. This timeline includes key staff
hiring, marketing, program development, development and negotiations with key program and
management partners/providers, physical facility needs, and other action items.
Six Months Prior to Opening
Approval to move forward with re-opening
Identification of and initial discussions with potential program providers/partners or
management entities
o Identify key milestone dates for potential partners
Develop Org Chart for facility management model
Start search for Facility Manager
Five Months Prior to Opening
Hiring of Facility Manager
Negotiations with potential program providers/partners
Initial media campaign
Determine any facility maintenance needs or “sprucing up” options
Four Months Prior to Opening
Finalize program providers/partners or management entities as appropriate
Begin purchasing of equipment, furniture, etc. needed for opening
Hiring of Membership/Customer Service Manager
Develop Membership model and fees
Development of Recreation and Community Center marketing materials
Begin planning for Grand Opening
Three Months Prior to Opening
Launch Membership Campaign
Hiring of Facility Operations/Maintenance Manager
Begin recruiting part-time staff
Develop all necessary Emergency Action Plans, operations, management documents,
procedures and manuals
Two Months Prior to Opening
Hiring all employees (actual employee start dates closer to opening)
Pool fill and start-up
o Allowing time to identify any operational issues
Building full functional
Community Open Houses and Rec Center tours and promotion
o Link to membership drive
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One Month Prior to Opening
Facility and Program Staff training
Rehearsals and dry-runs of all programming and procedures
Can select specific areas of building for pre-opening programming or use as appropriate
o Can pull earlier if building is ready
Potential for soft early opening
Opening
Soft Opening
Grand Opening (usually 3-4 weeks following soft opening)
Factors Affecting Timeline
Any unexpected facility surprises
Timeline in developing partner and program providers
o Any specific key milestones for their programs, marketing, or business
Suitability of actual opening date
o Coordinated with key community/school timelines
o Other considerations
Difficulty in finding staff
Other?
Next Steps
Next Steps will be developed in conjunction with City Leadership and Management. Key decisions
include:
Determination of Membership Model
Determining of Management Model
Ongoing review and refinement of Budget Model
Funding model for pre-opening costs
Funding model for annual operating deficit
Identification of target opening date
Fine tune workback schedule based on target opening date
Page 62 of 73
KEYS TO SUCCESS AND FACTORS IN FAILURE
The common perception of pools is that they always lose money and cannot operate in a reasonable
financially sustainable model within public budgets without excessive costs or subsidies from
public entities, taxpayers, or outside entities. Throughout this Report there have been many
references to best practices, enhanced revenue opportunities, and operational cost savings
opportunities. To further understand how a new Lino Lakes Rec and Community Center can
succeed, it is important to understand the best practices of facilities that succeed and the reasons
behind failed or underperforming pools. This Section of the Report builds on the elements of
previous Sections to present a summary of Keys to Success and Factors in Failure. The Risks of
Failure are general obstacles facing all facilities and are not specific concerns for the City of Lino
Lakes. These factors are broken down into several key areas:
Management
Programming
Design
Financial Management
DEFINITION OF SUCCESS and SUSTAINABILITY
The definition of success and financial sustainability is different for each facility and community,
depending on the public and partner goals of the facility. An important element for the planning
process of a new Lino Lakes Rec and Community Center and understanding what success means to
the City of Lino Lakes and any partners. Throughout this report ISG has identified needs and
opportunities for all the elements of the community and discussed best practices to optimize
programming and the financial model. The financial operating analysis in this report and project
operating deficits and cost recovery. To help define success and related goals and objectives for the
Rec and Community Center it will be important for Lino Lakes Staff and Financial Staff to identify
an acceptable cost recovery target to maintain the Rec and Community Center and successfully
meet budget goals. This City process will need to include balancing cost recovery with City
mission to provide affordable facilities, access, and programs for all residents of Lino Lakes. These
Keys to Success and Factors in Failure include both general and specific elements relevant to the
proposed Rec and Community Center.
MANAGEMENT
The management of the facility is the single most important key element in the success of a Rec and
Community Center. The management must be proactive in its programming and marketing
approach and adopt an entrepreneurial approach to the business of the Rec and Community Center.
The ISG Study assume that the City of Lino Lakes would be managing the Rec and Community
Center but the Keys to Success and Factors in Failure apply to all potential Rec and Community
Center management and operational models.
Lino Lakes Rec and Community Center Facility Manager Position
Keys to Success
Page 63 of 73
In the case of Lino Lakes ISG recommends the Facility Director Position oversee all the
facility programing in the Lino Lakes Rec and Community Center.
Critical to have significant experience in this position in running facilities that have a full
range of programming for both the dry side and the wet side with specific financial and
operating goals and metrics
o Expertise in developing, marketing and executing a wide range of programs
o Experience in developing and managing overall facility budgets
o Network and membership in key facility safety, fitness, and management
professional organizations and regular attendance at conventions and camps to
maintain up to date knowledge of new trends in Rec and Community facility and
program management
o Experience in marketing, sponsorship, advertising as it relates to generating support
for the Rec and Community Center and its programs
o Ability to work closely with the community, civic entities, interest groups, and the
philanthropic community to generate maximum support for the operations and
programming of the Rec and Community Center
o Experience in operating and maintaining a significant Rec and Community facility
The Facility Manager position should ideally begin six to twelve months in advance of the
opening of the center.
o Build new programs
o Expand and enhance existing programs
o Obtain commitments and contracts from users and partners
o Identify thresholds for initial year and beyond for programs and user/partner
agreements
o Launch marketing of the Center programs
o Build staff structure and develop training program for staff prior to opening
o Funding for this is part of the Year Zero or Project Capital expenses
o Develop job descriptions, identify quality candidates, and begin to staff the Center
Risks for Failure
Traditional experience in subsidized community parks and recreation facilities where
marketing and entrepreneurial initiatives are not encouraged or rewarded
Lack of strong programing, facility, and activity experience
Limited business management background
Lack of clear and measureable facility program, use, and revenue goal, objectives, and
metrics
Lack of clear management accountability linked to the goal metrics
Lack of strong community engagement, partnerships and establishment of ongoing
community opportunities
Rec and Community Center Plan
The Feasibility Study includes funding and support for the Facility Manager, with the
Director responsible for all Rec and Community programs and facilities.
o Salary level is robust enough to attract top regional level qualified candidates
Travel budget is included to allow key management to attend conferences and for continuing
professional development
Page 64 of 73
Hires six to nine months in advance
Program Management (Coordinators and Supervisors)
Keys to Success
Very important to have a strong and experienced program management team on board.
Also important to include experience and responsibilities for marketing the programs-it is
not just build it and they will come!!
Adaptability to new programming opportunities and regular evaluation of existing programs
Network and membership in key aquatic safety, fitness, and management professional
organizations and regular attendance at conventions and camps to maintain up to date
knowledge of new trends in Rec and Community facility and program development, trends,
and management
If funding allows these positions should be filled three to four months prior to opening, but
this role is often filled by the overall Facility Director initially. Bringing new program
management on board can be coordinated with the growth and expansion of existing Lino
Lakes programming at the Rec and Community Center
o Allows the coordinators and supervisors to have role in hiring and developing
program staff
Important to have experience in training and certifying part-time instructor, lifeguarding,
Fitness and other program staff
It may be more effective to have specific program coordinators part time linked to key
programs like learn to swim, aquatic fitness, fitness, camps, etc.
o May be head instructor with a an additional stipend for management responsibilities
Risks for Failure
Inexperience in starting up programs or growing programs
Lack of involvement in the Recreational professional world and not remaining current in
trends and developments in programming
Lack of personal hands on experience in actually running and teaching in programs
Lack of quantifiable and subjective goals and accountability in building and marketing the
programs
Lack of funding and support for ongoing professional development and training
Insufficient resources to support programming
Marketing and Membership
Keys to Success
Experience in marketing and promoting all aspects of facility
o Programs
o Membership
o Sponsorship and Advertising
o Supporting and promoting competitive and special events
o Community relations
o Donor relations (usually led by Facility Director)
Experience in Customer Service-understanding the importance of Customer Service
Ability to train part-time front desk and customer service staff
Resources to support marketing efforts
Page 65 of 73
Ability to coordinate with overall City, School District, and other partners’ marketing and
informational platforms and community outreach programs
Entrepreneurial approach to marketing and membership
Establishment and accountability for quantifiable goals
Risks for Failure
Assuming that “If you build it they will come!”
Lack of staff and resources focused on marketing, membership, and customer service
Absence of clearly defined goals for program participation and membership and ongoing
tracking of metrics
Staff inexperience in facility, program, and membership marketing and
sponsorship/advertising solicitation
Rec and Community Center Plan
o Center budget includes the following positions
o Marketing and Membership Coordinator
o Customer Service Coordinator
Marketing and advertising budget for facility and programs included in budget analysis
Facility Maintenance Staff
Keys to Success
Specific maintenance team along with cross training from other City staff positions for Rec
and Community Center
o Full-time positions increase accountability for the successful operation and
maintenance of a facility
o Cross training in a smaller Rec and Community Center offers opportunities to be
sure everything can be maintained and serviced properly when a particular staff
member needs time off or goes on vacation
o Limiting need for outside services with no vested interest in facility
Maintenance team with some Rec facility experience
Certified pool operators to cover both pools throughout the week, weekends and during
when a particular CPO is not available
Regular preventative and pre-emptive maintenance
Dedicated custodial team for Rec and Community Center
Learning from other comparable facilities’ best practices; participation in and investment in
education and latest maintenance trends
Risks for Failure
Over reliance on outsourced services
Lack of Rec and Community specific facility maintenance experience
Cost cutting on maintenance staff and routine preventative maintenance
Failure to develop long term Capital maintenance and replacement reserve fund
Rec and Community Center Plan
Robust in-house maintenance staff
o Maintenance Foreman: Hired 3 months in advance of opening
Page 66 of 73
o Aquatic Certified Pool Operator: Hired 1 month in advance of opening
o Full-time custodial and maintenance staff
Annual budget set aside for long term Capital Maintenance and Replacement Fund
Instructors and Support Staff
Keys to Success
Instructors, teachers, front desk/reception staff, building supervisors and other key staff that
interface with the public should be well trained and compensated.
Important to have training and retention programs to attract and keep well trained fitness,
recreation, learn to swim, aquatic fitness, and other instructors
o Don’t necessarily expect to pay minimum wage!!!
o Collaborate with School District to create programs that attract students or program
graduates to become instructors and other staff
Understanding of their importance to the overall success of the facility
o Understanding and adopting the basics of customer service and communication
o In most cases, these individuals are the most important “face” of the facility that will
interface and engage with the Lino Lakes Rec and Community users and customers
Risks for Failure
Lack of potential staff pool to draw from
High turn-over rate/lack of retention
Inadequate training in their specific jobs and in overall facility procedures and customer
service
o It is very important that all staff understand overall facility goals and operations, not
just their specific area
Lack of understanding of their impact on the success of the overall facility
Rec and Community Center Plan
Budget includes very competitive hourly wages for all part-time positions, especially the key
public facing positions such as fitness, instructors, lifeguards, and front desk staff.
o Provides flexibility in wages to attract staff for difficult day hours, aid recruitment,
and reward retention
Staff development and training funding included in budget
Potential to provide training and certification classes and programs in conjunction with local
school curricula
Overall Management Elements
Keys to Success
Professional outfitting and branding of all staff (in and out of the activity areas)
Clearly defined goals and objectives
o Program participation
o Use
o Revenue
o Expenses
o Accountability
Clearly developed safety, emergency, operational, and maintenance procedures and manuals
Page 67 of 73
o Includes education and rehearsal of all staff in these elements
o Development and incorporation of health crises/pandemic response and procedures
into new emergency and operating procedures and manuals
Regular management and staff meetings
o Program and schedule
Key user group interaction and input
Cleanliness and well maintained common areas
Continuing education and training
Management and Staff accountability
Risks for Failure
Failure to execute all of the above
Rec and Community Center Plan
Budgeting for staff outfitting and recognition
o Includes promotion of staff certifications, memberships, and training in a visible
manner.
Travel and Staff Development budgeting
Incremental marketing budget beyond just existing Parks and Recreation website and
brochures. Utilize social media and new communication platforms to reach all
demographics.
Focus on low income and community segments that do not have access for staffing,
programming opportunities and awareness.
PROGRAMMING
Keys to Success
Full range of programs for the entire community
Introduction of new programs and trends as regular updates of existing program curriculum
Focus on low income or demographics with no Rec experience or access
Development of program partners including school district, community groups, healthcare
providers, and outside program providers as appropriate
Scheduling to allows for all potential program participants and target demographics
o Early morning before work
o During the school day
o Lunch hour specific programs
o After school programs
o After work programs
o Evening after family dinner or “kids are settled”
Progressive programs
o Clear and smooth transitions from one program to the next level
Fitness
Exercise
Learn to Swim
Pre-Team
Masters
Aquatic fitness
Page 68 of 73
Full range of intensities, abilities, and transition programs
Cross training
Therapy/Rehab transitioning to mainstream regular fitness classes
Etc.
Development of program partners
Concurrent programming
o Access to different programs throughout the day
o Program access during prime time
o Programs that serve both youth and adult for optimized family usage
Marketing of programs
Risks for Failure
Weak or poorly trained instructors
Lack of program integration and progression
Inappropriate times for different user groups
Lack of concurrent program scheduling
Lack of responding to the demands or needs of user groups or developing programs that
attract new user groups
Rec and Community Center Plan
Feasibility Study identifies a wide range of new program and recreational opportunities
Potential schedule matrix allocates programs across all facilities to best use the strengths of
each facility
Schedule matrix opens up significant time for use across multiple programs at peak times
during the day
o Classes before, during and after the work and school day for all
o Significantly increase open recreation and family time for pool and facility use
Schedule matrix maximizes opportunity for concurrent programming
FINANCIAL MANAGEMENT
Keys to Success
Business oriented management practices and financial management
Budget development based on facility management and best practices
o Budget tracking to enable analysis of all costs of all specific programs
o Increased visibility of all program related costs and revenue for better program
development and accountability
o Requires tracking revenue, participation, trends, and expenses for each specific
program
Develop program fees, usage fees, and rental rates to best combine goals of City:
o Accessible and affordable to all residents and users
o Help support local youth, adult, and disabled sport and activity programs
o Provide revenue to help offset Rec facility and program operating costs and improve
Cost Recovery
o Investment in programming and staffing that targets underserviced constituencies
and addresses past inequities in programming
Page 69 of 73
Identifying, developing, and optimizing program and facility funding options and potential
o Grants
o Corporate support
o Partnership funding opportunities
o Advertising and Sponsorship
Cash and financial support
Product and services Value-in-Kind (VIK) donations
o Community support
o Private philanthropy as needed
Develop a budgeting plan or reserve fund for long term capital replacement and maintenance
for future repairs, component replacement, and other unexpected financial costs.
Risks for Failure
Failure to build sufficient cash reserve or long term replacement fund or plan for future
equipment replacement or capital facility repair
Failure to develop fee structure appropriate for market and meeting overall facility financial
and program objectives
o Market rates
o Appropriate discounts for residents, members, etc.
o Analysis of revenue needs
Failure to invest sufficiently in key success factors
o Marketing
o Key management positions
o Staff training and development
o Air handling and Water handling technology and system
Rec and Community Center Plan
The initial framework for these Financial Keys to Success have been incorporated in the ISG
Study.
Page 70 of 73
CONCLUSION
The Lino Lakes Recreation and Community Center Analysis identified strong potential and
opportunity for the re-opening of the former YMCA as a Line Lakes Recreation and Community
Center. The new Rec and Community Center can provide expanded community programming as
well as meeting the City resident recreation and fitness needs and creating new opportunities better
than the former YMCA. The Rec Center can provide greater access for residents at more
reasonable membership, use, and program costs than the former YMCA.
The Study also identified key areas of opportunity for future expansion of both the indoor and
outdoor facilities and components of the existing facility.
Following are key conclusions of the Study.
Strategic Opportunities
The Rec Center is well positioned to meet current City needs and growth for the next five to
ten years.
The Rec Center further has the opportunity to expand its facilities and programs, with the
following strategic goals
o Meet long term population and user growth well beyond ten years
o Create unique facilities in the market that make the Rec Center a destination in select
areas to support the long term financial sustainability of the Rec Center
o Develop specific themes related to the creating of the destination facility
Analysis of Existing Facility
The current facility was very well maintained by the YMCA and there are no readily apparent
significant maintenance issues that create an expensive barrier to re-opening.
There are several energy savings upgrades to new technology for the pool mechanical system that
can be made in the next several years to significantly reduce the operating costs of the pools.
Programming Analysis
The programming at the former YMCA was a very traditional YMCA model. A re-opened Rec
Center will have opportunities to enhance and expand programming in several key areas:
Aquatics
o Enhanced swim lesson programs with better student:teacher ratios and more class
scheduling options
o Expanded aquatic fitness programs addressing a wider range of age and intensity
offerings throughout the day and evening
o Increased aquatic therapy and rehab opportunities through outside program providers
o Increased lap swim time
o Greater use of concurrent programming in the pools, making better use of time and
space
Fitness programs
Page 71 of 73
o Expand fitness options with broader range of programs and specialty classes,
including incorporation of highly trained outside instructors
o Use of gym space for larger fitness classes and events
o Future expansion should include an indoor walking track as part of a Sport Court
facility addition
Special Needs and Adaptive PE
o Expand community based aquatic and dry-side special needs and adaptive PE
programming and support services
Sport Programs
o The small gym size will continue to limit the potential for youth and adult team and
league programs
o Increased court space in a multi-court addition is a major need for future expansion
Community Programs
o The potential exists for expanded community programming through the City and
community organizations, utilizing the current meeting space at the Rec Center
o Programs can include:
Senior Programming
Educational and Activity classes
o Expanded community meeting spaces is a strong need for future expansion
Membership Analysis
The Study reviewed several membership scenarios. The best membership model scenario targeted
membership rates for residents at approximately 60% of the equivalent rates for the area YMCAs.
This lower cost results in a larger number of overall members. The membership model also
included daily drop in and multi-visit passes as well as a wide range of membership options. The
membership model also included a 20% premium for non-residents of Lino Lakes.
Facility Management Models
The Study explored three Rec Center management options:
Entirely City managed
Hybrid Management Model
o Outside management and program providers for selected components of the Rec
Center
Fully managed by outside management group
Both the City managed and the Hybrid Model are feasible. The fully outside group management
model would not be feasible or successful in meeting City goals of financially accessible
membership and use models or overall revenue generation.
The Hybrid Model as several key advantages of the City Managed Model.
Much lower start-up costs
Faster ramp-up at opening and initial revenue and membership generation
Existing readymade membership base with existing program following
Wider range of programming options and expertise
The two areas where partner program providers and management would be beneficial are:
Page 72 of 73
Fitness Programming and Management of fitness facility
Swim Lesson program partnership with Centennial School District Community Education
The Hybrid Model will reduce overall operating deficits by approximately $380,000 over the first
five years.
Financial Operating Budget Analysis
ISG used very conservative projections for revenue and expenses in developing the operating
budget projections. The Study detail identifies several areas where expenses can be further reduced
and revenue enhanced.
Even with the conservative nature of the projections the Recreation and Community Center achieve
a cost recovery of 92% of total expenses by Year Three in both management models. Beginning in
Year Three the average annual operating deficit averages between $150,000 for the Hybrid Option
to $170,000 for the City Managed Option. These expenses include an annual City Administrative
Allocation of over $150,000 for City support services. The expenses also include an annual
allocation to a Long Term Capital Replacement and Maintenance Reserve Fund to support projected
future facility maintenance and upkeep. This annual allocation begins at $60,000 in Year Two and
increases to over $80,000 by Year Four. Over the first twenty years of operation the Reserve Fund
accrues over $1,800,000 for Capital maintenance needs.
Future Rec Center Enhancement and Expansion
The Study identified several main areas for strategic Rec Center expansion and enhancement.
These include:
Sports Center
o Court Sport Center with 6 basketball courts that can configure to 10 volleyball
courts, multiple pickle ball courts and be sub-divided for great programming
flexibility
Can also attract sport tournaments and generate economic impact
Can be positive net revenue generator for the Rec Center
Potential for outside investor/managing partner for the project
o Climbing Wall/gym space
o Indoor walking track
Community meeting and function space
o Expansion of meeting and function space to support community programming or
organizational use
Outdoor Components
o Take advantage of available space on site for additional outdoor elements that
support and complement the indoor facilities of the Rec Center
o Outdoor fitness course/stations
o Ropes Course
o Sand volleyball court
o Dog park
Timeline
From the time that re-opening of the Recreation Center is approved and funded it will reasonably
take six months to prepare for re-opening. Key milestones in this timeline are the following:
Page 73 of 73
Hiring management and staff
Developing program providers/management in the Hybrid Option
Prepare the Rec Center for opening
Marketing the new Rec Center
Launch membership campaign
Bring the facility systems to operational status
Train staff
Prepare for opening
Overall, the Lino Lakes Recreation and Community Center can be a significant City asset providing
recreation, fitness, leisure, and community activities to a much wider range of City residents that
ever utilized the former YMCA.
Page 1 of 1
Lino Lakes Recreation and Community Center Analysis
APPENDIX INDEX
APPENDIX A: Programming
#A1 Learn to Swim Market Analysis and Comparisons
#A2 Learn to Swim Program Projections
#A2a City Managed Model
#A2b Community Education Partner Model
#A3 Aquatic Facility Scheduling Matrix
APPENDIX B: Membership
#B1 Membership Market Analysis
#B2 Membership Fee Structure, Scenarios, and Projections
APPENDIX C: Budget/Operating Analysis
#C1 Profit and Loss Summaries
#C1a City Managed P & L
#C1b Hybrid Management Model P & L
#C1c P & L Comparison
#C2 City Managed Model Budget Line Item Detail
#C2a Facility Revenue
#C2b Program Revenue
#C2c Operational Expenses
#C2d Program Expenses
#C2e Program Profit Analysis
#C3 Hybrid Management Model Budget Line Item Detail
#C3a Facility Revenue
#C3b Program Revenue
#C3c Operational Expenses
#C3d Program Expenses
#C3e Program Profit Analysis
APPENDIX D: Pools Operational and Mechanical Systems
APPENDIX A1--Swim Lesson Market Analysis
April 20, 2021
CLASS COST per YEAR SCHEDULE WATER
PROGRAM PROVIDER LOCATION SESSION COST 30 min.RATIO SESSIONS FACILITY TEMP COMMENTS
YMCA of the North Lino Lakes YMCA Group Lessons $39/Family member
or Full member
$6.50 5 or 6
to 1
Year Round Ave. = 84
Ranged
depends
on Y
Standard lesson rates throughout
system
Forest Lakes YMCA 7 x 30 min classes Per YMCA 2020 info
Member $ 55.00 $ 7.86
Non-Member $ 109.00 $ 15.57
Centennial School District Centennial High School 8 x 30 minute lessons $ 75 $ 9.38 5-6 to 1 Year Round 81-82°
Shoreview Rec Center 86°
6 x 40 minute Lessions
Resident $ 81 $ 10.13
Non-Resident $ 89 $ 11.13
Private: 6 x 30min
Resident $ 126 $ 21.00
Non-Resident $ 139 $ 23.17
Brooklyn Center Community Rec Center 84-85°
6 x 30 minute Lessions
Resident $ 60 $ 10.00 No resident discount
Non-Resident $ 60 $ 10.00
Private: 6 x 35min
Resident $ 120 $ 20.00
Non-Resident $ 120 $ 20.00
Brooklyn Park High School Pool 81-82°
6 x 30 minute Lessions Older kids increase to 40 min/lesson
Resident $ 63 $ 10.50
Non-Resident $ 77 $ 12.83
Private: 6 x 35min
Resident $ 133 $ 22.17
Lino Lakes Recreation Center
MARKET COMPARISON OF SWIM LESSON PROGRAMS
1 of 2 6/1/2021
APPENDIX A1--Swim Lesson Market Analysis
CLASS COST per YEAR SCHEDULE WATER
PROGRAM PROVIDER LOCATION SESSION COST 30 min.RATIO SESSIONS FACILITY TEMP COMMENTS
Non-Resident $ 133 $ 22.17
Foss Swim School Blaine, MN: 5+Miles 10-
12 minutes
Year Round Small-warm-
water shallow
pool
90°One of several locations in Twin
Cities
1 Class per week $84/month $ 22.00 Perpetual Monthly Billing
Private Lessons: 1 x 30
minute class/week
$300 $ 75.00
Semi-Private: 1 x 30 min
class/week
$160 $ 40.00
Anoka-Hennepin School District Roosevelt Middle
School, Blaine.
8 x 35 minute lessons $ 80 $ 8.57 6 to 1 Year Round 81-82 Red Cross Lesson Program: average
300 kids in program at any one time.
Year round docusing on weekends in
school year
Gold Fish Swim School National Franchise
First location opened in
MN in Oakdale: 25
miles/26-45 minutes
Year Round Small-warm-
water shallow
pool
90-92°Includes a one-time $25 registration
for an individual or $45 one-time fee
maximum per family. Perpetual
membership program.
National Franchise
locally owned
1 x 30 minute lesson per week,
billed monthly
Lesson-Group
Inludes 1 30 min
lesson/week
$84/month
$78.12 for 2nd child
$72.24 for 3rd child
$21 4 to 1
Lesson-Mini Group $110/month $28 3 to 1 NOTE: Some months will have 5
lessons/month: averages here are
calculated at 4 lessons/month
Lesson-Semi-Private $127/month $32 2 to 1
Lesson-Private $188/month $47 1 to 1
2 of 2 6/1/2021
APPENDIX A2a--Swim Lesson Projections: City Managed Facility
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
A B C D E F G
CITY MANAGED PROGRAM Items to Review Potential for upside growth
May 10, 2021
Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Percent Growth Rate Used in Calculations 35%15%8%5%
Group Lessons-Youth, Children, Tots
Session: 8 x 30 minute classes/session Assume 8 classes/session just for
calculation purposes
Resident 720 972 1,118 1,207 1,268 Estimate at 60% of total lessons
Non-Resident 480 648 745 805 845 Estimate at 40% of total lessons
Member Potential to add this category in
future-driving memberships through
additional discount benefit.
Fee per Session
Resident $ 88 $ 88 $ 88 $ 96 $ 96 NOTE: Fee increase in Year 4.
Non-Resident $ 104 $ 104 $ 104 $ 112 $ 112
Member
Average cost per 30 minutes
Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00
Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00
Member $ - $ - $ - $ - $ -
Youth Group Lesson Subtotal $ 113,280 $ 152,928 $ 175,867 $ 206,033 $ 216,335
Annual Group Lessons-Adult 6 x 45 minute classes per session
Resident 60 81 93 101 106
Non-Resident 40 54 62 67 70
Member
Fee per Session
Resident $ 99 $ 99 $ 99 $ 108 $ 108
Non-Resident $ 117 $ 117 $ 117 $ 126 $ 126
Member
Average cost per 30 minutes
Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00
Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00
Member $ - $ - $ - $ - $ -
Adult Group Lesson Subtotal $ 10,620 $ 14,337 $ 16,488 $ 19,316 $ 20,281
Private Lessons Calculated as 4 x 30 minute private
lessons for session for calculation
purposes. Can also do singles or a
package of 8 lessons. Rates for all
ages.
Resident 96 130 149 161 169
Non-Resident 64 86 99 107 113
Member
Fee per Session (4 x 30 min private lesson)Calculated on 30 minute lessons. Also
offer 60 minute sessions depending
on age and skill level
Resident $ 128 $ 128 $ 128 $ 140 $ 140 Local market private lessons rates are
low for regional and national markets.
Most public facilities are now in $35
to $40 for resident/member private
lessons.
Non-Resident $ 144 $ 144 $ 144 $ 160 $ 160
Member
Average cost per 30 minutes
Resident $ 32.00 $ 32.00 $ 32.00 $ 35.00 $ 35.00
Non-Resident $ 36.00 $ 36.00 $ 36.00 $ 40.00 $ 40.00
Member
Lino Lakes Recreation Center
SWIM LESSON ANNUAL PROJECTIONS: Billing by Class
NOTE: Resident is Lino-Lakes resident. May include surrounding communities or School Districts with added
operational support.
1 of 2
APPENDIX A2a--Swim Lesson Projections: City Managed Facility
6
7
A B C D E F G
Year 1 Year 2 Year 3 Year 4 Year 5 Comments
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
Private Lesson Subtotals $ 21,504 $ 29,030 $ 33,385 $ 39,704 $ 41,689
Semi-Private Lessons Calculated as 4 x 30 minute private
lessons for session for calculation
purposes. Can also do singles or a
package of 8 lessons.
Resident 60 81 93 101 106
Non-Resident 40 54 62 67 70
Member
Fee per Session (4 x 30 min private lesson)
Resident $ 88 $ 88 $ 88 $ 96 $ 96
Non-Resident $ 96 $ 96 $ 96 $ 104 $ 104
Member
Average cost per 30 minutes
Resident $ 22.00 $ 22.00 $ 22.00 $ 24.00 $ 24.00
Non-Resident $ 24.00 $ 24.00 $ 24.00 $ 26.00 $ 26.00
Member
Semi-Private Lesson Subtotals $ 9,120 $ 12,312 $ 14,159 $ 16,633 $ 17,465
Family Lessons & Specily Lessons May offer family and special lesson
groups. Not readily available in the
market but a differentiating program
for the future. Not factored in
initially. Special Needs lessons are
included in group lessons for now.
Resident
Non-Resident
Member
Fee per Session
Resident
Non-Resident
Member
Average cost per 30 minutes
Resident $ - $ - $ - $ - $ -
Non-Resident $ - $ - $ - $ - $ -
Member
Family Lesson Subtotals $ - $ - $ - $ - $ -
TOTAL SWIM LESSON REVENUE $ 154,524 $ 208,607 $ 239,899 $ 281,686 $ 295,770
TOTAL Youth Group Swim Lesson Sessions 1,200 1,620 1,863 2,012 2,113 Including Adults
TOTAL Estimated Unique Students in Youth
Group Lessons
480 648 745 805 845 Each student averages 2.5 sessions
per year
TOTAL Lino Lakes Resident Youth Group
Lessons
720 972 1,118 1,207 1,268
TOTAL Lino Lakes unique students in Youth
Group Lessons
288 389 447 483 507
Analysis of Lino Lakes Market Penetration Percent Population
Lino Lakes Population (2020 Projection)22,500
Percent of population under 10 years of age 18.0%4,050
Percent of population under 18 years of age 28.8%6,480
Number of Unique Lino Lakes students in lessons 447
Percent of Lino Lakes population under 10 years old taking lessons 11.0%
Uses Year Three for Market Penetration
Assume all students under 10 years old which is conservative.
There will be some older kids, but not many.
Percentage is actually lower since there will be some > 9 yrs old
2 of 2
APPENDIX A2b--Learn to Swim Projections Hybrid Management Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
A B C D E F G
CENTENNIAL COMMUNITY ED PARTNERSHIP Items to Review Potential for upside growth
May 10, 2021
Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Percent Growth Rate Used in Calculations 35%15%8%5%
Group Lessons-Youth, Children, Tots
Session: 8 x 30 minute classes/session Assume 8 classes/session just for
calculation purposes
Assume 30% increase in total lessons
when combined with existing
Community Ed Swim lesson program.
Resident 1,248 1,685 1,938 2,093 2,197 Estimate at 80% of total lessons:
Increased % resident when including
residents of Centennial School District.
Non-Resident 312 421 484 523 549 Estimate at 20% of total lessons
Member Potential to add this category in
future-driving memberships through
additional discount benefit.
Fee per Session
Resident $ 88 $ 88 $ 88 $ 96 $ 96 NOTE: Fee increase in Year 4. Rates
are increased from current $75
Community Ed Rate.
Non-Resident $ 104 $ 104 $ 104 $ 112 $ 112
Member
Average cost per 30 minutes
Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00
Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00
Member $ - $ - $ - $ - $ -
Youth Group Lesson Subtotal $ 142,272 $ 192,067 $ 220,877 $ 259,473 $ 272,446
Annual Group Lessons-Adult 6 x 45 minute classes per session
Resident 104 140 161 174 183
Non-Resident 26 35 40 44 46
Member
Fee per Session
Resident $ 99 $ 99 $ 99 $ 108 $ 108
Non-Resident $ 117 $ 117 $ 117 $ 126 $ 126
Member
Average cost per 30 minutes
Resident $ 11.00 $ 11.00 $ 11.00 $ 12.00 $ 12.00
Non-Resident $ 13.00 $ 13.00 $ 13.00 $ 14.00 $ 14.00
Member $ - $ - $ - $ - $ -
Adult Group Lesson Subtotal $ 13,338 $ 18,006 $ 20,707 $ 24,326 $ 25,542
Private Lessons Calculated as 4 x 30 minute private
lessons for session for calculation
purposes. Can also do singles or a
package of 8 lessons. Rates for all
ages.
Resident 166 224 258 278 292
Non-Resident 42 57 65 70 74
Member
Fee per Session (4 x 30 min private lesson)Calculated on 30 minute lessons. Also
offer 60 minute sessions depending
on age and skill level
Lino Lakes Recreation Center
SWIM LESSON ANNUAL PROJECTIONS: Billing by Class
NOTE: Residency in partnership model include both Lino Lakes and Centennial School District residents.
1 of 2
APPENDIX A2b--Learn to Swim Projections Hybrid Management Model
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
A B C D E F G
Resident $ 128 $ 128 $ 128 $ 140 $ 140 Local market private lessons rates are
low for regional and national markets.
Most public facilities are now in $35
to $40 for resident/member private
lessons.
Non-Resident $ 144 $ 144 $ 144 $ 160 $ 160
Member
Average cost per 30 minutes
Resident $ 32.00 $ 32.00 $ 32.00 $ 35.00 $ 35.00
Non-Resident $ 36.00 $ 36.00 $ 36.00 $ 40.00 $ 40.00
Member
Private Lesson Subtotals $ 27,296 $ 36,850 $ 42,377 $ 50,234 $ 52,746
Semi-Private Lessons Calculated as 4 x 30 minute private
lessons for session for calculation
purposes. Can also do singles or a
package of 8 lessons.
Resident 104 140 161 174 183
Non-Resident 26 35 40 44 46
Member
Fee per Session (4 x 30 min private lesson)
Resident $ 88 $ 88 $ 88 $ 96 $ 96
Non-Resident $ 96 $ 96 $ 96 $ 104 $ 104
Member
Average cost per 30 minutes
Resident $ 22.00 $ 22.00 $ 22.00 $ 24.00 $ 24.00
Non-Resident $ 24.00 $ 24.00 $ 24.00 $ 26.00 $ 26.00
Member
Semi-Private Lesson Subtotals $ 11,648 $ 15,725 $ 18,084 $ 21,274 $ 22,338
Family Lessons & Specily Lessons May offer family and special lesson
groups. Not readily available in the
market but a differentiating program
for the future. Not factored in
initially. Special Needs lessons are
included in group lessons for now.
Resident
Non-Resident
Member
Fee per Session
Resident
Non-Resident
Member
Average cost per 30 minutes
Resident $ - $ - $ - $ - $ -
Non-Resident $ - $ - $ - $ - $ -
Member
Family Lesson Subtotals $ - $ - $ - $ - $ -
TOTAL SWIM LESSON REVENUE $ 194,554 $ 262,648 $ 302,045 $ 355,306 $ 373,071
TOTAL Youth Group Swim Lesson Sessions 1,560 2,106 2,422 2,616 2,746 Including Adults
TOTAL Estimated Unique Students in Youth
Group Lessons
624 842 969 1,046 1,099 Each student averages 2.5 sessions
per year
TOTAL Lino Lakes & Centennial Resident
Youth Group Lessons
1,248 1,685 1,938 2,093 2,197
TOTAL Lino Lakes & Centennial unique
students in Youth Group Lessons
499 674 775 837 879
2 of 2
APPENDIX A3--Schedule Matrix
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Rec Swim Team/Summer Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 5:00 Cardio
5:30 Masters/ Lap 5:30 Fitness Open
6:00 Triathlon Lanes 6:00 Aquatic Open Classes Gym Meeting
6:30 6:30 Fitness Time Spaces
7:00 7:00 and Flexible Open
7:30 7:30 Personal Scheduling
8:00 Aquatic 8:00 Training Classes &
8:30 Fitness 8:30 More
9:00 Home School 9:00 Swim Senior Pickleball Seniors
9:30 Program 9:30 Lessons Program
10:00 10:00 Home Home
10:30 10:30 School School
11:00 Swim 11:00 Parents and Tots Open Gym
11:30 Lessons 11:30 Water Lessons
12:00 12:00 Aquatic
12:30 12:30 Fitness
1:00 Senior 1:00 Seniors Meeting
1:30 Program 1:30 Srs.Spaces
2:00 2:00 Special Needs Flexible
2:30 2:30 Adaptive PE Scheduling
3:00 After School 3:00 After School After Sch After School Classes &
3:30 Programs 3:30 Programs Programs Programs More
4:00 4:00 Special Needs
4:30 Club Swim Team 4:30
5:00 Outside Rental 5:00 Swim Open Gym
5:30 5:30 Lessons
6:00 6:00 OR
6:30 Aquatic Rec 6:30 Rec Programs
7:00 Programs 7:00 Open Recreation Pickleball
7:30 7:30 Leisure Swim
8:00 Masters/ 8:00 Outside
8:30 Triathlon 8:30 Court
9:00 9:00 Users
9:30 9:30 (Rentals)
10:00 10:00
10:30
Lino Lakes Recreation and Community Center
School Year: Weekdays
Stations or Recreation Features
Lap Pool
Depth: 3'6" to 5'
Community
Meeting
Function Space
Sub-Dividable
Warm-Water Spaces
May 17, 2021
Aquatic Programs
25 yards
Child
Watch
General Programming/UseFitness & Use Programs
Exercise
Half Gyms
GymLeisure/Wellness Pool
Depth: 0 to 4'6"
Cardio
Fitness
Room
APPENDIX A3--Schedule Matrix
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 Lap 5:00
5:30 Masters/Lanes 5:30
6:00 Triathlon 6:00 Cardio Open Open Meeting
6:30 6:30 Fitness Exercise Gym Spaces
7:00 7:00 Open Time Flexible
7:30 Aquatic 7:30 Aquatic Time Scheduling
8:00 Fitness 8:00 Fitness and Classes Classes Classes
8:30 8:30 Personal
9:00 Swim 9:00 Swim Training Open
9:30 Lessons 9:30 Lessons
10:00 10:00 Court
10:30 10:30 Rentals
11:00 11:00 Senior
11:30 11:30 Programs
12:00 Open 12:00 Open Open
12:30 Recreation 12:30 Recreation Time
1:00 Leisure Swim 1:00 Leisure Classes
1:30 1:30 Swim
2:00 2:00
2:30 2:30
3:00 3:00
3:30 3:30
4:00 4:00 Open Open
4:30 4:30 Exercise Gym
5:00 5:00 Time
5:30 5:30
6:00 6:00
6:30 6:30
7:00 7:00
7:30 7:30
8:00 8:00
8:30 8:30
9:00 9:00
9:30 9:30
10:00 10:00
10:30
Function Space
Stations or Recreation Half Gyms Sub-Dividable
Depth: 3'6" to 5'Depth: 0 to 4'6" Room
Community
25 yards Warm-Water Fitness Spaces Meeting
Lap Pool Leisure/Wellness Pool Cardio Exercise Gym
Child Watch
Lino Lakes Recreation and Community Center
School Year: Saturday
May 17, 2021
Aquatic Programs Fitness & Use Programs General Programming/Use
APPENDIX A3--Schedule Matrix
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 5:00
5:30 5:30
6:00 Lap 6:00 Cardio Open
6:30 Lanes 6:30 Fitness Exercise
7:00 7:00 Rentals Open Time Open Open
7:30 7:30 Time Gym Space
8:00 8:00 and Rentals Rentals
8:30 8:30 Personal Parties Classes
9:00 9:00 Birthday Training Classes Court Birthday
9:30 9:30 and Rentals Parties
10:00 10:00 Other
10:30 10:30 Parties
11:00 11:00
11:30 11:30
12:00 Open 12:00 Open Sport Open
12:30 Recreation 12:30 Recreation Classes
1:00 Leisure 1:00 Leisure
1:30 Swim 1:30 Swim
2:00 2:00 Open
2:30 2:30 Gym
3:00 3:00
3:30 3:30
4:00 4:00 Open
4:30 4:30 Recreation
5:00 5:00 Rentals Court
5:30 5:30 Birthday Rentals
6:00 6:00 Parties
6:30 6:30
7:00 7:00
7:30 7:30
8:00 8:00 Open
8:30 8:30 Recreation
9:00 9:00
9:30 9:30
10:00 10:00
10:30
Stations or Recreation Half Gyms Sub-Dividable
25 yards Warm-Water Fitness Spaces
Depth: 3'6" to 5'Depth: 0 to 4'6" Room
Lino Lakes Recreation and Community Center
School Year: Sunday
CommunityLap Pool
May 17, 2021
Aquatic Programs Fitness & Use Programs General Programming/Use
Child Watch
Leisure/Wellness Pool Cardio Exercise Gym
Meeting
Function Space
APPENDIX A3--Schedule Matrix
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Rec Swim Team/Summer Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 5:00 Cardio
5:30 Master/Lap 5:30 Fitness
6:00 Triathlon Lanes 6:00 Aquatic Open Classes Open
6:30 6:30 Fitness Time Gym
7:00 7:00 Personal Court
7:30 Aquatic Fitness 7:30 Training Rentals
8:00 8:00 Special Needs Camps
8:30 Summer 8:30
9:00 Rec 9:00 Swim Lessons Senior Pickle
9:30 Team 9:30 Program Ball
10:00 Swim 10:00 Camps
10:30 Lessons 10:30
11:00 11:00
11:30 Senior 11:30
12:00 Programs 12:00 Senior
12:30 Aquatic Fitness 12:30 Programs
1:00 Open 1:00 Swim Lessons Seniors Seniors Camps
1:30 Rec 1:30
2:00 Camps 2:00 Classes Camps
2:30 2:30
3:00 3:00
3:30 3:30
4:00 Club Swim Team 4:00 Open
4:30 Outside Rental 4:30 Recreation
5:00 5:00 Open
5:30 5:30 Gym
6:00 Open 6:00 Court
6:30 Recreation 6:30 Rentals
7:00 7:00 Open
7:30 7:30
8:00 Master/8:00
8:30 Triathlon 8:30
9:00 9:00
9:30 9:30
10:00 10:00
10:30
Stations or Recreation Half Gyms Sub-Dividable
Gym
Function Space
25 yards Warm-Water Fitness Spaces
Depth: 3'6" to 5'Depth: 0 to 4'6" Room
Child Watch
Lino Lakes Recreation and Community Center
Summer: Weekdays
CommunityLap Pool
May 17, 2021
Aquatic Programs Fitness & Use Programs General Programming/Use
Meeting
Leisure/Wellness Pool Cardio Exercise
APPENDIX A3--Schedule Matrix
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Rec Swim Team/Summer Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 5:00
5:30 Masters/5:30
6:00 Triathlon Lap 6:00 Cardio Open Open Meeting
6:30 Lanes 6:30 Fitness Time Gym Spaces
7:00 7:00 Aquatic Open Flexible
7:30 7:30 Fitness Time Scheduling
8:00 Summer Rec Swim Team 8:00 and Classes Court Classes
8:30 8:30 Personal Rental
9:00 9:00 Swim Lessons Training Open
9:30 9:30
10:00 Swim Fitness 10:00
10:30 Lessons 10:30
11:00 11:00
11:30 11:30
12:00 Open 12:00 Open Open
12:30 Recreation 12:30 Recreation Time
1:00 Leisure 1:00 Leisure
1:30 Swim 1:30 Swim
2:00 2:00
2:30 2:30
3:00 3:00
3:30 3:30
4:00 4:00
4:30 4:30
5:00 5:00 Court
5:30 5:30 Rental
6:00 6:00
6:30 6:30
7:00 7:00
7:30 7:30
8:00 8:00
8:30 8:30
9:00 9:00
9:30 9:30
10:00 10:00
10:30
Stations or Recreation Half Gyms Sub-Dividable
Gym
Function Space
25 yards Warm-Water Fitness Spaces
Depth: 3'6" to 5'Depth: 0 to 4'6" Room
Child Watch
Lino Lakes Recreation and Community Center
Summer: Saturday
CommunityLap Pool
May 17, 2021
Aquatic Programs Fitness & Use Programs General Programming/Use
Meeting
Leisure/Wellness Pool Cardio Exercise
APPENDIX A3--Schedule Matrix
NOTE: Stations in the warm-water Leisure/Wellness pool can be divided to accommodate different programs
NOTE: Spaces in Gym, workout rooms, and function spaces can be subdivided. Schedule shows options.
Program and Use Color Codes
Masters Swimming/Triathlon Aquatic Therapy/Rehab Community Ed.Summer Camp Open Gym
Swimming Club Team Lap Lanes Personal Training Pickleball Child Watch-Kids Program
Pre-Team Program-Swim Rec Programs/Classes Rec Classes & Programs Senior Program Meeting Space
Open Swim Time: Community Aquatic Special Needs Programs Exercise/Fitness Classes Home School PE Rental/Open Space
Open Recreation Leisure-Swim Aquatic Fitness School District Program Court Rental
Swim Lessons Aquatic Rec Programs/Classes After School Programs Open Exercise Time
Pool Rentals Rec Swim Team/Summer Court Sport Outside Users
1 2 3 4 5 6 1 2 3 4 1 2 1 2
5:00 5:00
5:30 5:30
6:00 Rentals Lap 6:00 Cardio Open
6:30 Lanes 6:30 Fitness Exercise
7:00 7:00 Rentals Open Time Open Open
7:30 7:30 Time Gym Space
8:00 8:00 and Rentals Rentals
8:30 8:30 Personal Parites Classes
9:00 Birthday 9:00 Birthday Training Birthday
9:30 Parties 9:30 Parties Parties
10:00 and 10:00 and
10:30 Other 10:30 Other
11:00 Parties 11:00 Parties
11:30 11:30
12:00 Open 12:00 Open Open
12:30 Recreation 12:30 Recreation
1:00 Leisure 1:00 Leisure
1:30 Swim 1:30 Swim
2:00 2:00
2:30 2:30
3:00 3:00
3:30 3:30
4:00 Open 4:00 Open
4:30 Recreation 4:30 Recretion
5:00 Rentals 5:00 Rentals
5:30 Birthday 5:30 Birthday
6:00 Parties 6:00 Parties
6:30 6:30
7:00 7:00
7:30 7:30
8:00 8:00
8:30 8:30
9:00 9:00
9:30 9:30
10:00 10:00
10:30
Stations or Recreation Half Gyms Sub-Dividable
Gym
Function Space
25 yards Warm-Water Fitness Spaces
Depth: 3'6" to 5'Depth: 0 to 4'6" Room
Child Watch
Lino Lakes Recreation and Community Center
Summer: Sunday
CommunityLap Pool
May 17, 2021
Aquatic Programs Fitness & Use Programs General Programming/Use
Meeting
Leisure/Wellness Pool Cardio Exercise
APPENDIX B1--Membership Market Analysis
1
2
3
4
5
6
7
8
9
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
A B C D E F G H I J K L M N U V W X Y Z AA AB
Projections based on Year One City Managed Facility
April 20, 2021
Category of Membership
YMCA of the
North
Shoreview
Rec Center
Maple Grove
Community
Center
Overall Bldg.
Maple Grove
Community
Center
Pool Only
New Brighton
Community
Center
Brooklyn
Center Rec
Center
Lifetime
Fitness (Maple
Grove)
LA Fitness
(Brooklyn
Center)
Egan
Community
Fitness Center
Planet Fitness
(Blaine)
Endurance
Fitness with
some Classes
(Circle {Pines)
Endurance
Fitness
w/o classes
(Circle {Pines)
Anytime
Fitness
(Lino Lakes)Comments
Overall
Building
Fitness
Only
Overall
Building
Fitness
Only
Overall
Building
Fitness
Only
75%60%50%
Resident Average % less than
YMCA Rates
One Time Registration Fee $50
No Resident
Discounts
$30 ?? $ 49 $ 39 $ 10 $ 10 $ 39 Do not anticipate any one-time
or annual registration fee.
Member Benefits 30%
discount off
of classes
Discount on classes
Child Care Facility: Drop In $1/child 6.50$ 6.50$
Resident Fees (if applicable) Approx 18%
to 22%
Discount
Additional municipalities may be
added to resident status based
on support of Rec Center
Drop In
Adult 10.00$ 9.50$ 7.50$ 4.00$ 8$ 7$ $ 7 $ 6 7$ 6$
Senior 8.75$ 4.00$ 6$ 5$ $ 5 $ 5 5$ 5$
Youth 5-12 8.75$ 4.00$ 6$ 5$ $ 5 $ 5 5$ 5$ Combine youth and child
category
Youth 13-15 8.75$ 4.00$ 6$ 5$ $ 5 $ 4 5$ 4$
Military 9.00$ 6.50$ 7$ 6$ $ 6 $ 5 6$ 5$
Family 36.00$ 36.00$ 28.00$ 14$ N/A $ 12 N/A 12$ N/A
Multiple Use Passes
Adult-10 Visit Pass 90.00$ 70.00$ 38.00$ 68$ N/A $ 60 N/A 60$ N/A
Senior-10 Visit Pass 38.00$ 50$ N/A $ 42 N/A 42$ N/A
Youth-10 Visit Pass 38.00$ 50$ N/A $ 42 N/A 42$ N/A
Family N/A N/A N/A N/A N/A N/A
15-visit pass
7-visit pass
Monthly Annual
Billed
Monthly
NA NA Assume average monthly
membership over 12 months
Adult 40.00$ 28.00$ 36.00$ 40.00$ 53$ 45$ $ 42 36$ 35$ 30$
Adult Couple 60.00$ 41.00$ 45.00$ 71.00$ 86$ 73$ $ 63 54$ 53$ 45$
Young Adult -$ -$ -$
Senior 34.00$ 20.00$ 29.00$ 56.00$ 30$ 26$ $ 26 22$ 20$ 17$
Senior Couple 38.00$ 45$ 38$ $ 39 33$ 30$ 26$
Youth <13 34.00$ 18.00$ 30$ 26$ $ 26 22$ 20$ 17$
Youth 13-18 34.00$ 18.00$ 30$ 26$ $ 26 22$ 20$ 17$
Family (4 members)68.00$ 43.00$ 51.00$ 89.00$ 99$ 84$ $ 86 73$ 66$ 56$
Military (Adult)45$ 38$ $ 36 31$ 30$ 26$
Military Family 84$ 71$ $ 73 62$ 56$ 48$
Corporate Explore corporate fitness
partnerships-include $$
placeholder.
Annual Approx 13%
to 15%
annual pre-
pay discount
Average is between equivalent
of 10 to 11 of monthly
payments. Utilizing 11 months
for suggested rates.
Adult 410.00$ 220.00$ 185.00$ 290.00$ 435.00$ 585$ 497$ $ 462 393$ 385$ 327$
Adult Couple 625.00$ 414.00$ 774.00$ 946$ 804$ $ 695 590$ 583$ 495$
Young Adult
Senior 350.00$ 200.00$ 160.00$ 209.00$ 360.00$ 330$ 280$ $ 285 242$ 220$ 187$
Senior Couple 495$ 421$ $ 430 365$ 330$ 280$
Senior Family
Youth <13 200.00$ 160.00$ 186.00$ 330$ 280$ $ 285 242$ 220$ 187$
Youth 13-18 350.00$ 200.00$ 160.00$ 186.00$ 330$ 280$ $ 285 242$ 220$ 187$
Family (4 members)700.00$ 440.00$ 390.00$ 441.00$ 973.00$ 1,090$ 926$ $ 945 803$ 725$ 616$ Family annual is equivalent of 10
months to incentivize
Military (Adult)190.00$ 160.00$ 495$ 420$ $ 395 335$ 330$ 280$
Military Family 380.00$ 340.00$ 924$ 785$ $ 800 680$ 615$ 523$
Corporate-Individual
Scenario #1 Scenario #2 Scenario #3
Lino Lakes Rec Center: Membership Scenarios
LINO LAKES RECREATION CENTER
Regional Market Membership and User Fee Analysis
Market Area Rec/Community Facilities with Aquatics Market Area Fitness Centers: No Aquatics
1 of 3
APPENDIX B1--Membership Market Analysis
6
7
A B C D E F G H I J K L M N U V W X Y Z AA AB
Category of Membership
YMCA of the
North
Shoreview
Rec Center
Maple Grove
Community
Center
Overall Bldg.
Maple Grove
Community
Center
Pool Only
New Brighton
Community
Center
Brooklyn
Center Rec
Center
Lifetime
Fitness (Maple
Grove)
LA Fitness
(Brooklyn
Center)
Egan
Community
Fitness Center
Planet Fitness
(Blaine)
Endurance
Fitness with
some Classes
(Circle {Pines)
Endurance
Fitness
w/o classes
(Circle {Pines)
Anytime
Fitness
(Lino Lakes)CommentsScenario #1 Scenario #2 Scenario #3
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
Corporate Family
Seasonal Membership (3
contiguous months)
3
Consecutive
Months
3 Consecutive
Months
Adult $ 175.00 96.00$ 143$ 122$ 113$ 97$ 95$ 81$
Adult Couple $ 247.00 121.00$ 232$ 197$ 170$ 146$ 143$ 122$
Young Adult -$ -$ -$ -$ -$ -$
Senior $ 145.00 78.00$ 81$ 70$ 70$ 59$ 54$ 46$
Senior Couple 102.00$ 122$ 103$ 105$ 89$ 81$ 70$
Senior Family 81$ 70$ 70$ 59$ 54$ 46$
Youth <13 145.00$ 81$ 70$ 70$ 59$ 54$ 46$
Youth 13-18 145.00$ 267$ 227$ 232$ 197$ 178$ 151$
Family (4 members)267.00$ 138.00$ 122$ 103$ 97$ 84$ 81$ 70$
Military 227$ 192$ 197$ 167$ 151$ 130$
Non-Resident Fees NA 89%69%58%Non-Resident Average % less
than YMCA Rates
Drop In NA
Adult 11.25$ 10.50$ 8.50$ 9$ 8$ $ 8 $ 7 8$ 7$ Ave 2/day
Senior 10.25$ 7$ 6$ $ 6 $ 6 6$ 6$
Youth 5-12 10.25$ 7$ 6$ $ 6 $ 6 6$ 6$ Combine all Youth 18 and under
Youth 13-15 10.25$ 7$ 6$ $ 6 6$
Family (4 members)43.00$ 40.00$ 32.00$ 16$ N/A $ 14 N/A 14$ N/A
Multiple Use Passes X10 NA X 10 X 10 Do not recommend punch
passes. Drive to memberships
Adult 90.00$ 70.00$ 82$ 70$ $ 72 61$ $ 72 61$
Senior 60$ 51$ $ 50 42$ $ 50 42$
Youth 60$ 51$ $ 50 42$ $ 50 42$
Family (4 members)
Monthly NA NA Assume average monthly
membership over 12 months
Adult 71.00$ 49.00$ 69.00$ 23.00$ 45.00$ $23/$10 55.00$ 45.00$ 37.50$ 64$ 54$ $ 50 43$ 42$ 36$
Adult Couple (Dual)121.00$ 69.00$ 81.00$ 103$ 88$ $ 75 64$ 63$ 54$
Senior NA 43.00$ 63.00$ 40.00$ 35.00$ 36$ 31$ $ 31 26$ 24$ 20$
Senior Couple NA 65.00$ 55.00$ 54$ 46$ $ 43 37$ 36$ 30$
Youth 40.00$ 43.00$ 30.00$ 25.00$ 36$ 31$ $ 31 26$ 24$ 20$
Student 50.00$ 43.00$ 30.00$ 25.00$ 36$ 31$ $ 31 26$ 24$ 20$
Family (4 members)132.00$ 81.00$ 101.00$ 80.00$ 65.00$ 120$ 102$ $ 103 88$ 79$ 67$
Military (Adult)54$ 46$ $ 43 37$ 36$ 30$
Military Family 100$ 85$ $ 87 74$ 67$ 57$
Corporate
Annual No Discount Approx 13%
to 15%
annual pre-
pay discount
Adult 852.00$ 525.00$ 260.00$ 210.00$ 490.00$ 450.00$ 704$ 598$ $ 550 468$ 462$ 393$
Adult Couple 1,452.00$ 760.00$ 882.00$ 1,133$ 963$ $ 825 701$ 693$ 589$
Senior NA 425.00$ 220.00$ 185.00$ 403.00$ 396$ 337$ $ 341 290$ 264$ 224$
Senior Couple NA 594$ 505$ $ 473 402$ 396$ 337$
Youth 480.00$ 425.00$ 220.00$ 185.00$ 396$ 337$ $ 341 290$ 264$ 224$
Student 600.00$ 425.00$ 396$ 337$ $ 341 290$ 264$ 224$
Family (4 members)1,584.00$ 880.00$ 540.00$ 440.00$ 1,103.00$ 1,320$ 1,122$ $ 1,133 963$ 869$ 739$
Military (Adult)190.00$ 160.00$ 594$ 505$ $ 473 402$ 396$ 337$
Military Family 380.00$ 340.00$ 1,100$ 935$ $ 957 813$ 737$ 626$
Corporate-Individual NA Explore corporate fitness
partnerships-nothing included
now.
Corporate-Family NA
Seasonal Membership NA 3
Consecutive
Months
Adult $ 225.00 $270/6
months
173$ 146$ 135$ 116$ 113$ 97$
Adult Couple $ 315.00 278$ 238$ 203$ 173$ 170$ 146$
Young Adult
Senior $ 175.00 97$ 84$ 84$ 70$ 65$ 54$
2 of 3
APPENDIX B1--Membership Market Analysis
6
7
A B C D E F G H I J K L M N U V W X Y Z AA AB
Category of Membership
YMCA of the
North
Shoreview
Rec Center
Maple Grove
Community
Center
Overall Bldg.
Maple Grove
Community
Center
Pool Only
New Brighton
Community
Center
Brooklyn
Center Rec
Center
Lifetime
Fitness (Maple
Grove)
LA Fitness
(Brooklyn
Center)
Egan
Community
Fitness Center
Planet Fitness
(Blaine)
Endurance
Fitness with
some Classes
(Circle {Pines)
Endurance
Fitness
w/o classes
(Circle {Pines)
Anytime
Fitness
(Lino Lakes)CommentsScenario #1 Scenario #2 Scenario #3
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
Senior Couple 146$ 124$ 116$ 100$ 97$ 81$
Senior Family
Youth <13 175.00$ 97$ 84$ 84$ 70$ 65$ 54$
Youth 13-18 175.00$ 97$ 84$ 84$ 70$ 65$ 54$
Family (4 members)335.00$ 324$ 275$ 278$ 238$ 213$ 181$
Military (Adult)146$ 124$ 116$ 100$ 97$ 81$
Military Family 270$ 230$ 235$ 200$ 181$ 154$
Hotel/Condo Rental User
Programs
Use Purchases for guests
Rental by Owner guests
3 of 3
APPENDIX B2--Membership Structure and Projections
1
2
3
4
5
6
7
8
9
18
19
20
21
22
23
24
25
27
28
29
30
31
32
33
36
37
38
39
41
42
43
45
46
47
48
49
50
51
53
54
56
58
59
60
61
62
63
A B C D E F G H I J K L M N O P Q R S T U
City Managed Facility
Projections based on Year Two
May 10, 2021
Category of Membership Comments
Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members Total Revenue Rate
# of
Members Total Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue
One Time Registration Fee N/A N/A N/A N/A N/A N/A Do not anticipate any one-time
or annual registration fee.
Member Benefits Discount on classes
Child Care Facility: Drop In
Resident Fees Additional municipalities may
be added to resident status
based on support of Rec Center
Resident Rate Average as
percent of YMCA
membership
75%63%60%51%50%42%
Drop In
Adult 8$ 700 5,600$ 7$ 250 1,750$ $ 7 700 4,900$ $ 6 250 1,500$ 7$ 700 4,900$ 6$ 250 1,500$ Scenario #2: Ave 2/day
Senior 6$ 525 3,150$ 5$ 125 625$ $ 5 525 2,625$ $ 5 125 625$ 5$ 525 2,625$ 5$ 125 625$ Scenario #2: Ave 1.5/day
Child & Youth 6$ 1,750 10,500$ 5$ 300 1,500$ $ 5 1,750 8,750$ $ 5 300 1,500$ 5$ 1,750 8,750$ 5$ 300 1,500$ Scenario #2: Ave 5/day taking
into account summer and
weekends.
Military 7$ 50 350$ 6$ 25 150$ $ 6 50 300$ $ 5 25 125$ 6$ 50 300$ 5$ 25 125$
Family 14$ 100 1,400$ N/A $ 12 100 1,200$ N/A 12$ 100 1,200$ N/A
Multiple Use Passes May choose not to offer multi-
visit cards to push membership
Adult-10 Visit Pass 68$ 150 10,200$ N/A $ 60 150 9,000$ N/A 60$ 150 9,000$ N/A
Senior-10 Visit Pass 50$ 150 7,500$ N/A $ 42 150 6,300$ N/A 42$ 150 6,300$ N/A
Youth-10 Visit Pass 50$ 60 3,000$ N/A $ 42 60 2,520$ N/A 42$ 60 2,520$ N/A
Family N/A N/A N/A N/A N/A N/A
Monthly Assume average monthly
membership over 12 months
Adult 53$ 36 22,896$ 45$ 13 7,020$ $ 42 45 22,680$ 36$ 18 7,776$ 35$ 47 19,740$ 30$ 19 6,840$
Adult Couple 86$ 8 8,256$ 73$ 2 1,752$ $ 63 12 9,072$ 54$ 3 1,944$ 53$ 13 8,268$ 45$ 4 2,160$
Senior 30$ 32 11,520$ 26$ 10 3,120$ $ 26 35 10,920$ 22$ 12 3,168$ 20$ 35 8,400$ 17$ 13 2,652$
Senior Couple 45$ 12 6,480$ 38$ 3 1,368$ $ 39 15 7,020$ 33$ 4 1,584$ 30$ 16 5,760$ 26$ 5 1,560$
Child & Youth 30$ 17 6,120$ 26$ 2 624$ $ 26 19 5,928$ 22$ 2 528$ 20$ 21 5,040$ 17$ 2 408$
Family (4 members)99$ 60 71,280$ 84$ 22 22,176$ $ 86 70 72,240$ 73$ 30 26,280$ 66$ 74 58,608$ 56$ 32 21,504$
Military (Adult)45$ 4 2,160$ 38$ 3 1,368$ $ 36 6 2,592$ 31$ 4 1,488$ 30$ 6 2,160$ 26$ 4 1,248$
Military Family 84$ 2 2,016$ 71$ 1 852$ $ 73 4 3,504$ 62$ 1 744$ 56$ 6 4,032$ 48$ 2 1,152$
Corporate -$ Explore corporate fitness
partnerships-include $$
placeholder.
Annual Annual is approximately 11
months equivalent.
Adult 585$ 60 35,100$ 497$ 24 11,928$ $ 462 75 34,650$ 393$ 32 12,576$ 385$ 79 30,415$ 327$ 34 11,118$
Adult Couple 946$ 22 20,812$ 804$ 10 8,040$ $ 695 30 20,850$ 590$ 14 8,260$ 583$ 32 18,656$ 495$ 15 7,425$
Senior 330$ 50 16,500$ 280$ 16 4,480$ $ 285 60 17,100$ 242$ 20 4,840$ 220$ 64 14,080$ 187$ 22 4,114$
Senior Couple 495$ 16 7,920$ 421$ 6 2,526$ $ 430 24 10,320$ 365$ 8 2,920$ 330$ 25 8,250$ 280$ 9 2,520$
Child & Youth 330$ 25 8,250$ 280$ 2 560$ $ 285 35 9,975$ 242$ 4 968$ 220$ 37 8,140$ 187$ 5 935$
Family (4 members)1,090$ 330 359,700$ 926$ 90 83,340$ $ 945 425 401,625$ 803$ 125 100,375$ 725$ 467 338,575$ 616$ 131 80,696$ Family annual is equivalent of
10 months to incentivize
Military (Adult)495$ 3 1,485$ 420$ 1 420$ $ 395 5 1,975$ 335$ 2 670$ 330$ 6 1,980$ 280$ 3 840$
Military Family 924$ 2 1,848$ 785$ 1 785$ $ 800 3 2,400$ 680$ 1 680$ 615$ 5 3,075$ 523$ 1 523$
Corporate-Individual
Corporate Family
Fitness Only
Scenario #1 Scenario #2 Scenario #3
LINO LAKES RECREATION CENTER
Membership and Usage Projections
Lino Lakes Rec Center: Membership Scenarios
Overall Building Fitness Only Overall Building Fitness Only Overall Building
1 of 4
APPENDIX B2--Membership Structure and Projections
5
6
7
8
9
A B C D E F G H I J K L M N O P Q R S T U
May 10, 2021
Category of Membership Comments
Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members Total Revenue Rate
# of
Members Total Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue
Fitness Only
Scenario #1 Scenario #2 Scenario #3
Lino Lakes Rec Center: Membership Scenarios
Overall Building Fitness Only Overall Building Fitness Only Overall Building
64
65
66
68
69
71
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
98
99
100
101
102
103
104
105
106
107
109
110
111
112
113
114
Seasonal Membership (3
contiguous months)
Adult 143$ 10 1,431$ 122$ 3 365$ 113$ 13 1,474$ 97$ 4 389$ 95$ 14 1,323$ 81$ 5 405$
Adult Couple 232$ 2 464$ 197$ 0 -$ 170$ 4 680$ 146$ 1 146$ 143$ 5 716$ 122$ 2 243$
Senior 81$ 10 810$ 70$ 2 140$ 70$ 13 913$ 59$ 4 238$ 54$ 15 810$ 46$ 5 230$
Senior Couple 122$ 3 365$ 103$ 1 103$ 105$ 5 527$ 89$ 1 89$ 81$ 6 486$ 70$ 2 140$
Child & Youth 81$ 35 2,835$ 70$ 10 702$ 70$ 40 2,808$ 59$ 14 832$ 54$ 44 2,376$ 46$ 15 689$
Family (4 members)267$ 70 18,711$ 227$ 15 3,402$ 232$ 75 17,415$ 197$ 18 3,548$ 178$ 79 14,078$ 151$ 19 2,873$ Family summer memberships.
Military (Adult)122$ 2 243$ 103$ 1 103$ 97$ 3 292$ 84$ 1 84$ 81$ 4 324$ 70$ 2 140$
Military Family 227$ 2 454$ 192$ 1 192$ 197$ 3 591$ 167$ 1 167$ 151$ 4 605$ 130$ 1 130$
Non-Resident Fees Non-Resident Average % less
than YMCA Rates
Non-Resident Rate Average
as percent of YMCA
membership
89%76%69%60%58%50%
Drop In
Adult 9$ 650 5,850$ 8$ 250 2,000$ $ 8 650 5,200$ $ 7 250 1,750$ 8$ 650 5,200$ 7$ 250 1,750$ Ave 2/day
Senior 7$ 400 2,800$ 6$ 100 600$ $ 6 400 2,400$ $ 6 100 600$ 6$ 400 2,400$ 6$ 100 600$
Child & Youth 7$ 1,400 9,800$ 6$ 150 900$ $ 6 1,400 8,400$ $ 6 150 900$ 6$ 1,400 8,400$ 6$ 150 900$ Combine all Youth 18 and under
Youth 13-15 7$ -$ 6$ -$ $ 6 -$ -$ 6$ -$ -$
Family (4 members)16$ -$ N/A $ 14 60 840$ N/A 14$ 60 840$
Multiple Use Passes X10 -$ -$ -$ -$ Do not recommend punch
passes. Drive to memberships
Adult 82$ 120 9,840$ N/A $ 72 120 8,640$ N/A $ 72 120 8,640$ N/A
Senior 60$ 120 7,200$ N/A $ 50 120 6,000$ N/A $ 50 120 6,000$ N/A
Youth 60$ 50 3,000$ N/A $ 50 50 2,500$ N/A $ 50 50 2,500$ N/A
Family (4 members)-$ N/A N/A N/A N/A
Monthly Assume average monthly
membership over 12 months
Adult 64$ 26 19,968$ 54$ 14 9,072$ $ 50 44 26,400$ 43$ 20 10,320$ 42$ 48 24,192$ 36$ 22 9,504$
Adult Couple (Dual)103$ 8 9,888$ 88$ 1 1,056$ $ 75 15 13,500$ 64$ 3 2,304$ 63$ 17 12,852$ 54$ 4 2,592$
Senior 36$ 23 9,936$ 31$ 6 2,232$ $ 31 30 11,160$ 26$ 9 2,808$ 24$ 33 9,504$ 20$ 11 2,640$
Senior Couple 54$ 6 3,888$ 46$ 2 1,104$ $ 43 9 4,644$ 37$ 3 1,332$ 36$ 10 4,320$ 30$ 4 1,440$
Child & Youth 36$ 14 6,048$ 31$ 2 744$ $ 31 16 5,952$ 26$ 2 624$ 24$ 17 4,896$ 20$ 2 480$
Family (4 members)120$ 55 79,200$ 102$ 12 14,688$ $ 103 70 86,520$ 88$ 15 15,840$ 79$ 77 72,996$ 67$ 17 13,668$
Military (Adult)54$ 2 1,296$ 46$ 1 552$ $ 43 2 1,032$ 37$ 1 444$ 36$ 3 1,296$ 30$ 1 360$
Military Family 100$ 2 2,400$ 85$ 1 1,020$ $ 87 2 2,088$ 74$ 1 888$ 67$ 3 2,412$ 57$ 2 1,368$
Corporate -$
Annual
Adult 704$ 43 30,272$ 598$ 18 10,764$ $ 550 68 37,400$ 468$ 22 10,296$ 462$ 71 32,802$ 393$ 23 9,039$
Adult Couple 1,133$ 15 16,995$ 963$ 6 5,778$ $ 825 24 19,800$ 701$ 6 4,206$ 693$ 25 17,325$ 589$ 7 4,123$
Senior 396$ 35 13,860$ 337$ 7 2,359$ $ 341 45 15,345$ 290$ 9 2,610$ 264$ 50 13,200$ 224$ 11 2,464$
Senior Couple 594$ 10 5,940$ 505$ 3 1,515$ $ 473 16 7,568$ 402$ 6 2,412$ 396$ 18 7,128$ 337$ 7 2,359$
Child & Youth 396$ 25 9,900$ 337$ 3 1,011$ $ 341 39 13,299$ 290$ 4 1,160$ 264$ 44 11,616$ 224$ 5 1,120$
Family (4 members)1,320$ 185 244,200$ 1,122$ 60 67,320$ $ 1,133 275 311,575$ 963$ 90 86,670$ 869$ 300 260,700$ 739$ 100 73,900$
Military (Adult)594$ 1 594$ 505$ 1 505$ $ 473 2 946$ 402$ 2 804$ 396$ 3 1,188$ 337$ 3 1,011$
Military Family 1,100$ 1 1,100$ 935$ 1 935$ $ 957 2 1,914$ 813$ 1 813$ 737$ 3 2,211$ 626$ 2 1,252$
Corporate-Individual
Corporate-Family
2 of 4
APPENDIX B2--Membership Structure and Projections
5
6
7
8
9
A B C D E F G H I J K L M N O P Q R S T U
May 10, 2021
Category of Membership Comments
Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members Total Revenue Rate
# of
Members Total Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue
Fitness Only
Scenario #1 Scenario #2 Scenario #3
Lino Lakes Rec Center: Membership Scenarios
Overall Building Fitness Only Overall Building Fitness Only Overall Building
115
116
117
119
120
122
124
125
126
127
128
129
130
131
132
133
134
135
137
138
139
140
141
142
143
144
145
146
147
149
150
151
152
153
154
155
156
157
158
161
162
163
164
165
166
Seasonal Membership
Adult 173$ 9 1,555$ 146$ -$ 135$ 11 1,485$ 116$ 3 348$ 113$ 12 1,361$ 97$ 4 389$
Adult Couple 278$ 2 556$ 238$ -$ 203$ 3 608$ 173$ 4 691$ 170$ 4 680$ 146$ 4 583$
Senior 97$ 8 778$ 84$ -$ 84$ 11 921$ 70$ 4 281$ 65$ 12 778$ 54$ 5 270$
Senior Couple 146$ 2 292$ 124$ -$ 116$ 4 464$ 100$ 1 100$ 97$ 5 486$ 81$ 2 162$
Child & Youth 97$ 36 3,499$ 84$ -$ 84$ 50 4,185$ 70$ 5 351$ 65$ 55 3,564$ 54$ 6 324$
Family (4 members)324$ 33 10,692$ 275$ -$ 278$ 48 13,349$ 238$ 8 1,901$ 213$ 54 11,518$ 181$ 9 1,628$ Family summer memberships
Military (Adult)146$ 2 292$ 124$ 2 248$ 116$ 2 232$ 100$ 2 200$ 97$ 3 292$ 81$ 3 243$
Military Family 270$ 4 1,080$ 230$ 2 459$ 235$ 5 1,175$ 200$ 2 400$ 181$ 6 1,085$ 154$ 3 462$
Hotel/Condo Rental User
Programs
Use Purchases for guests
Rental by Owner guests
TOTAL: REVENUE BY SCENARIO 1,162,074$ 284,252$ 1,308,687$ 335,095$ 1,123,873$ 288,925$
TOTAL: COMBINED REVENUE
ALL TYPES 1,446,326$ 1,643,782$ 1,412,798$
TOTAL: MEMBERSHIP REVENUE
BY CATEGORY 1,081,884$ 276,727$ 1,239,112$ 328,095$ 1,054,298$ 281,925$
TOTAL: MEMBERSHIP REVENUE
COMBINED OVERALL + FITNESS 1,358,611$ 1,567,207$ 1,336,223$
TOTAL: MEMBERSHIP UNITS 1,360 381 1,812 547 1,977 609
Combined 1,741 2,359 2,586
Resident 813 239 1,019 324 1,104 352
Non-resident 547 142 793 223 873 257
Percentage Residents 60%63%56%59%56%58%
Percent by Overall/Fitness 78%22%77%23%76%24%
MEMBERSHIP BREAKDOWN
Adult 184 14%72 19%256 14%99 18%271 14%107 18%
Adult Couple 57 4%19 5%88 5%31 6%96 5%36 6%
Senior 158 12%41 11%194 11%58 11%209 11%67 11%
Senior Couple 49 4%15 4%73 4%23 4%80 4%29 5%
Child/Youth 152 11%19 5%199 11%31 6%218 11%35 6%
Family 733 54%199 52%963 53%286 52%1,051 53%308 51%
Military Adult 14 1%9 2%20 1%12 2%25 1%16 3%
Miilitary Family 13 1%7 2%19 1%7 1%27 1%11 2%
CATEGORY BREAKDOWN
Monthly 307 23%95 25%394 22%128 23%426 22%144 24%
Annual 823 61%249 65%1,128 62%346 63%1,229 62%378 62%
Seasonal 230 17%37 10%290 16%73 13%322 16%87 14%
3 of 4
APPENDIX B2--Membership Structure and Projections
5
6
7
8
9
A B C D E F G H I J K L M N O P Q R S T U
May 10, 2021
Category of Membership Comments
Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members Total Revenue Rate
# of
Members Total Revenue Rate
# of
Members
Total
Revenue Rate
# of
Members
Total
Revenue
Fitness Only
Scenario #1 Scenario #2 Scenario #3
Lino Lakes Rec Center: Membership Scenarios
Overall Building Fitness Only Overall Building Fitness Only Overall Building
167
168
169
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
TOTAL: MEMBERS 3,704 1,033 4,919 1,480 5,387 1,631
Combined 4,737 6,399 7,018
Members/Membeship Unit 2.72 2.71 2.71
TOTAL: DAY/DROP-IN REVENUE 5,575 39,450$ 1,200 7,525$ 5,635 34,615$ 1,200 7,000$ 5,635 34,615$ 1,200 7,000$
Combined 6,775 $ 46,975 6,835 6,835 $ 41,615 6,835 6,835 $ 41,615 1,200
Resident 3,125 700 3,125 700 3,125 700
Non-resident 2,450 500 2,510 500 2,510 500
Percentage Residents 46%58%55%58%55%58%
Percent by Overall/Fitness 82%18%82%18%82%18%
TOTAL: PUNCH CARD REVENUE 650 40,740$ -$ 650 34,960$ 0 -$ 650 34,960$ 0 -$
Combined 650 $ 40,740 650 $ 34,960 650 $ 34,960
Resident 360 360 360
Non-resident 290 290 290
Percentage Residents 55%55%55%
4 of 4
APPENDIX C1a-- P L City Managed Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
21
22
23
24
25
26
27
28
29
30
31
32
35
36
37
38
39
A B C G H I J K L
Membership Scenario #2
NOTES:*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Net Operating Revenue (Deficit) Categories Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included
REVENUE Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
FACILITY REVENUE -$ 1,342,698$ 1,767,017$ 1,853,709$ 1,944,063$ 2,039,660$
Educational, Classes, Camps and Clinics Rentals 0 0 0 0 0 0
Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729
Pool Rentals 0 36,412 39,773 40,806 42,082 43,398
Competitive Event Rentals 0 0 0 0 0 0
Special Events & Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065
Therapy, Rehab, Health Use 0 0 0 0 0 0
Memberships & Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655
Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813
Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0
School District and Partners 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0
PROGRAM REVENUE -$ 296,024$ 406,157$ 445,246$ 495,247$ 517,873$
Education and Community Programming 0 5,500 10,500 10,815 11,248 11,698
Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training 0 65,000 70,550 73,372 76,307 79,359
Learn to Swim 0 154,524 208,607 239,899 281,686 295,770
Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124
Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0
TOTAL REVENUE -$ 1,638,722$ 2,173,174$ 2,298,955$ 2,439,310$ 2,557,533$
Projected Revenue Growth Rate 33%6%6%5%
Rec and Community Center Projections
Lino Lakes Recreation and Community Center
Profit & Loss Summary
May 10, 2021
Existing Facility City Managed
1 of 3
APPENDIX C1a-- P L City Managed Model
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
65
66
67
68
69
70
71
72
73
74
A B C G H I J K L
EXPENSES Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
OPERATIONAL EXPENSES 515,905$ 1,859,962$ 1,952,592$ 2,035,846$ 2,120,662$ 2,221,809$
Utilities 9,000 140,631 144,850 149,195 153,671 158,281
Maintenance 19,000 44,000 45,320 46,680 48,080 56,522
Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687
Staff Wages & Salary & Benefits
Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851
Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216
Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584
Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486
Outside Services 15,000 16,000 11,150 11,335 6,525 6,720
General Office 11,500 88,411 107,184 110,708 114,356 118,206
Insurance 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000
PROGRAM EXPENSES -$ 148,441$ 191,529$ 206,387$ 226,177$ 235,623$
Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179
Aquatic Training, Fitness, and Therapy 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness &Training 0 30,900 33,453 34,751 36,101 37,505
Learn to Swim 0 69,101 89,886 102,042 117,988 123,412
Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394
Program Staff-Miscellaneous 0 0 0 0 0 0
Scholarships & Student Support 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000
TOTAL OPERATING EXPENSES 515,905$ 2,008,403$ 2,144,121$ 2,242,233$ 2,346,839$ 2,457,432$
Projected Expense Growth Rate 7%5%5%5%
CITY SHARED ADMINISTRATIVE EXPENSES -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$
GROSS TOTAL OPERATING EXPENSES 515,905$ 2,158,403$ 2,301,621$ 2,407,608$ 2,520,483$ 2,639,758$
2 of 3
APPENDIX C1a-- P L City Managed Model
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
104
105
106
107
108
A B C G H I J K L
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
NET OPERATING REVENUE (DEFICIT)(515,905)$ (369,682)$ 29,053$ 56,722$ 92,471$ 100,102$
Not Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%82%101%103%104%104%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (885,587)$ (856,534)$ (799,812)$ (707,341)$ (607,240)$
NET GROSS OPERATING REVENUE (DEFICIT)(515,905)$ (519,682)$ (128,447)$ (108,653)$ (81,173)$ (82,224)$
Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%76%94%95%97%97%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,164,034)$ (1,272,687)$ (1,353,860)$ (1,436,084)$
NON-OPERATING EXPENSES
Long Term Capital Replacement & Maintenance Reserve 0 0 60,000 70,000 80,000 82,400
Capital Reserve Accumulation Years 1-5 292,400
Years 6-10 84,872 87,418 90,041 92,742 95,524
Years 11-15 98,390 101,342 104,382 107,513 110,739
Years 16-20 114,061 117,483 121,007 124,637 128,377
Capital Accumulation Year 10 742,997
Capital Accumulation Year 15 1,265,362
Capital Accumulation year 20 0 1,870,927
NON-OPERATING EXPENSES -$ -$ 60,000$ 70,000$ 80,000$ 82,400$
GRAND TOTAL ALL EXPENSES (Including Reserve)515,905$ 2,158,403$ 2,361,621$ 2,477,608$ 2,600,483$ 2,722,158$
GRAND TOTAL REVENUE (DEFICIT)(515,905)$ (519,682)$ (188,447)$ (178,653)$ (161,173)$ (164,624)$
COST RECOVERY 0%76%92%93%94%94%
CUMMULATIVE TOTAL GROSS REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,224,034)$ (1,402,687)$ (1,563,860)$ (1,728,484)$
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APPENDIX C1b--P L Summary Hybrid Model
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A B C G H I J K L
Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Net Operating Revenue (Deficit) Categories Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included
REVENUE Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
FACILITY REVENUE -$ 1,336,903$ 1,561,440$ 1,634,173$ 1,709,872$ 1,790,042$
Educational, Classes, Camps and Clinics Rentals 0 0 0 0 0 0
Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729
Pool Rentals 0 36,412 39,773 40,806 42,082 43,398
Competitive Event Rentals 0 0 0 0 0 0
Special Events & Function Space Rentals 0 18,000 24,000 24,720 25,668 26,652
Therapy, Rehab, Health Use 0 0 0 0 0 0
Memberships & Daily Use Fees 0 1,181,491 1,385,017 1,454,268 1,525,932 1,601,904
Retail and Vending Revenue 0 6,000 7,650 7,880 8,116 8,359
Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0
School District and Partners 0 75,000 75,000 75,000 75,000 75,000
Miscellaneous 0 0 0 0 0 0
PROGRAM REVENUE -$ 120,639$ 186,162$ 200,701$ 219,024$ 228,673$
Education and Community Programming 0 7,000 13,000 13,390 13,926 14,483
Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training 0 0 0 0 0 0
Learn to Swim 0 48,639 65,662 75,511 88,827 93,268
Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 0 0 0 0 0
Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0
TOTAL REVENUE -$ 1,457,541$ 1,747,602$ 1,834,874$ 1,928,896$ 2,018,715$
Projected Revenue Growth Rate 20%5%5%5%
Rec and Community Center Projections
Lino Lakes Recreation and Community Center
Profit & Loss Summary
May 10, 2021
Existing Facility Hybrid Management Model
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic
Partnership
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APPENDIX C1b--P L Summary Hybrid Model
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EXPENSES Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
OPERATIONAL EXPENSES 437,255$ 1,532,351$ 1,617,475$ 1,687,915$ 1,761,280$ 1,848,308$
Utilities 9,000 140,631 144,850 149,195 153,671 158,281
Maintenance 19,000 43,000 44,290 45,619 46,987 55,397
Equipment and Supplies 210,514 67,000 72,010 74,170 76,395 78,687
Staff Wages & Salary & Benefits
Full Time Staff 108,958 494,500 519,225 545,186 572,446 601,068
Part Time Staff 13,500 348,400 365,820 384,111 403,317 423,482
Benefits and Payroll Taxes 46,283 267,480 280,854 294,897 309,642 325,124
Staff-Other Costs 2,000 4,750 4,869 4,990 5,115 5,243
Outside Services 11,000 64,831 73,656 77,066 77,643 81,395
General Office 9,500 81,760 94,101 97,071 100,137 103,376
Insurance 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000
PROGRAM EXPENSES -$ 47,880$ 67,550$ 69,182$ 71,384$ 73,676$
Community and Educational Programs 0 3,300 5,700 5,856 6,070 6,293
Aquatic Training, Fitness, and Therapy 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness &Training 0 1,000 1,000 1,000 1,000 1,000
Learn to Swim 0 4,750 4,750 4,750 4,750 4,750
Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs 0 0 0 0 0 0
Sport Team Programs 0 0 0 0 0 0
Program Staff-Miscellaneous 0 0 0 0 0 0
Scholarships & Student Support 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous Expense Contingency 0 3,750 3,000 2,500 2,500 2,500
TOTAL OPERATING EXPENSES 437,255$ 1,580,231$ 1,685,025$ 1,757,097$ 1,832,664$ 1,921,984$
Projected Expense Growth Rate 7%4%4%5%
CITY SHARED ADMINISTRATIVE EXPENSES -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$
GROSS OPERATING EXPENSES 437,255$ 1,730,231$ 1,842,525$ 1,922,472$ 2,006,308$ 2,104,310$
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APPENDIX C1b--P L Summary Hybrid Model
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A B C G H I J K L
NET OPERATING REVENUE (DEFICIT)(437,255)$ (122,690)$ 62,577$ 77,777$ 96,232$ 96,731$
Not Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%92%104%104%105%105%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(437,255)$ (559,945)$ (497,368)$ (419,590)$ (323,359)$ (226,628)$
NET GROSS OPERATING REVENUE (DEFICIT)(437,255)$ (272,690)$ (94,923)$ (87,598)$ (77,412)$ (85,595)$
Including City Administrative Allocation
COST RECOVERY (Direct Revenue & Expenses Only)0%84%95%95%96%96%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(437,255)$ (709,945)$ (804,868)$ (892,465)$ (969,878)$ (1,055,473)$
NON-OPERATING EXPENSES
Long Term Capital Replacement & Maintenance Reserve 0 0 60,000 70,000 80,000 82,400
Capital Reserve Accumulation Years 1-5 292,400
Years 6-10 84,872 87,418 90,041 92,742 95,524
Years 11-15 98,390 101,342 104,382 107,513 110,739
Years 16-20 114,061 117,483 121,007 124,637 128,377
Capital Accumulation Year 10 742,997
Capital Accumulation Year 15 1,265,362
Capital Accumulation year 20 0 1,870,927
NON-OPERATING EXPENSES -$ -$ 60,000$ 70,000$ 80,000$ 82,400$
GRAND TOTAL ALL EXPENSES (Including Reserve)437,255$ 1,730,231$ 1,902,525$ 1,992,472$ 2,086,308$ 2,186,710$
GRAND TOTAL REVENUE (DEFICIT)(437,255)$ (272,690)$ (154,923)$ (157,598)$ (157,412)$ (167,995)$
COST RECOVERY 0%84%92%92%92%92%
CUMMULATIVE TOTAL GROSS REVENUE (DEFICIT)(437,255)$ (709,945)$ (864,868)$ (1,022,465)$ (1,179,878)$ (1,347,873)$
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APPENDIX C1c--P L Comparison by Mangaement Model
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A B C G H I J K L M N O P Q R
Membership Scenario #2
NOTES:*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Net Operating Revenue (Deficit) Categories Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included Net Operating Revenue With City Admin Alloca. Incl.With Reserve Included
REVENUE Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
FACILITY REVENUE -$ 1,342,698$ 1,767,017$ 1,853,709$ 1,944,063$ 2,039,660$ -$ 1,336,903$ 1,561,440$ 1,634,173$ 1,709,872$ 1,790,042$
Educational, Classes, Camps and Clinics Rentals 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
Gym/Court Rentals 0 20,000 30,000 31,500 33,075 34,729 -$ 20,000$ 30,000$ 31,500$ 33,075$ 34,729$
Pool Rentals 0 36,412 39,773 40,806 42,082 43,398 -$ 36,412$ 39,773$ 40,806$ 42,082$ 43,398$
Competitive Event Rentals 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
Special Events & Function Space Rentals 0 21,000 28,000 28,840 29,911 31,065 -$ 18,000$ 24,000$ 24,720$ 25,668$ 26,652$
Therapy, Rehab, Health Use 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
Memberships & Daily Use Fees 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655 -$ 1,181,491$ 1,385,017$ 1,454,268$ 1,525,932$ 1,601,904$
Retail and Vending Revenue 0 5,000 7,150 7,365 7,585 7,813 -$ 6,000$ 7,650$ 7,880$ 8,116$ 8,359$
Facility Sponsorships/Advertising/Contributions 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
School District and Partners 0 0 0 0 0 0 -$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$
Miscellaneous 0 0 0 0 0 0 -$ -$ -$ -$ -$ -$
PROGRAM REVENUE -$ 296,024$ 406,157$ 445,246$ 495,247$ 517,873$ -$ 120,639$ 186,162$ 200,701$ 219,024$ 228,673$
Education and Community Programming 0 5,500 10,500 10,815 11,248 11,698 0 7,000 13,000 13,390 13,926 14,483
Aquatic Training, Fitness and Therapy 0 20,000 32,500 33,800 35,152 36,558 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training 0 65,000 70,550 73,372 76,307 79,359 0 0 0 0 0 0
Learn to Swim 0 154,524 208,607 239,899 281,686 295,770 0 48,639 65,662 75,511 88,827 93,268
Camps and Clinics 0 45,000 75,000 78,000 81,120 84,365 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0
Sport Team Programs 0 6,000 9,000 9,360 9,734 10,124 0 0 0 0 0 0
Program Sponsorships/Advertising/Contributions 0 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL REVENUE -$ 1,638,722$ 2,173,174$ 2,298,955$ 2,439,310$ 2,557,533$ -$ 1,457,541$ 1,747,602$ 1,834,874$ 1,928,896$ 2,018,715$
Projected Revenue Growth Rate 33%6%6%5%-$ 20%5%5%5%
Variance of Hybrid Model vs. City Managed (181,180)$ (425,572)$ (464,081)$ (510,414)$ (538,819)$
Hybrid Management Model: Rec and Community Center Projections
May 10, 2021
City Managed Rec and Community Center Projections
Lino Lakes Recreation and Community Center
Comparison: City Managed versus Hybrid Management Model
Profit & Loss Summary
1 of 3
APPENDIX C1c--P L Comparison by Mangaement Model
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EXPENSES Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
OPERATIONAL EXPENSES 515,905$ 1,859,962$ 1,952,592$ 2,035,846$ 2,120,662$ 2,221,809$ 437,255$ 1,532,351$ 1,617,475$ 1,687,915$ 1,761,280$ 1,848,308$
Utilities 9,000 140,631 144,850 149,195 153,671 158,281 9,000 140,631 144,850 149,195 153,671 158,281
Maintenance 19,000 44,000 45,320 46,680 48,080 56,522 19,000 43,000 44,290 45,619 46,987 55,397
Equipment and Supplies 239,514 139,000 144,010 146,170 148,395 150,687 210,514 67,000 72,010 74,170 76,395 78,687
Staff Wages & Salary & Benefits
Full Time Staff 137,708 609,500 639,975 671,974 705,572 740,851 108,958 494,500 519,225 545,186 572,446 601,068
Part Time Staff 15,500 457,600 480,480 504,504 529,729 556,216 13,500 348,400 365,820 384,111 403,317 423,482
Benefits and Payroll Taxes 58,183 335,320 352,086 369,690 388,175 407,584 46,283 267,480 280,854 294,897 309,642 325,124
Staff-Other Costs 3,000 9,500 9,738 9,981 10,230 10,486 2,000 4,750 4,869 4,990 5,115 5,243
Outside Services 15,000 16,000 11,150 11,335 6,525 6,720 11,000 64,831 73,656 77,066 77,643 81,395
General Office 11,500 88,411 107,184 110,708 114,356 118,206 9,500 81,760 94,101 97,071 100,137 103,376
Insurance 5,000 10,000 10,300 10,609 10,927 11,255 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 2,500 10,000 7,500 5,000 5,000 5,000
PROGRAM EXPENSES -$ 148,441$ 191,529$ 206,387$ 226,177$ 235,623$ -$ 47,880$ 67,550$ 69,182$ 71,384$ 73,676$
Community and Educational Programs 0 2,700 4,700 4,826 4,999 5,179 0 3,300 5,700 5,856 6,070 6,293
Aquatic Training, Fitness, and Therapy 0 9,000 14,000 14,520 15,061 15,623 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness &Training 0 30,900 33,453 34,751 36,101 37,505 0 1,000 1,000 1,000 1,000 1,000
Learn to Swim 0 69,101 89,886 102,042 117,988 123,412 0 4,750 4,750 4,750 4,750 4,750
Camps and Clinics 0 21,080 34,100 35,556 37,003 38,509 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs 0 0 0 0 0 0 0 0 0 0 0 0
Sport Team Programs 0 3,160 4,390 4,692 5,025 5,394 0 0 0 0 0 0
Program Staff-Miscellaneous 0 0 0 0 0 0 0 0 0 0 0 0
Scholarships & Student Support 0 5,000 5,000 5,000 5,000 5,000 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous Expense Contingency 0 7,500 6,000 5,000 5,000 5,000 0 3,750 3,000 2,500 2,500 2,500
TOTAL OPERATING EXPENSES 515,905$ 2,008,403$ 2,144,121$ 2,242,233$ 2,346,839$ 2,457,432$ 437,255$ 1,580,231$ 1,685,025$ 1,757,097$ 1,832,664$ 1,921,984$
Projected Expense Growth Rate 7%5%5%5%7%4%4%5%
Variance of Hybrid Model vs. City Managed (78,650)$ (428,172)$ (459,097)$ (485,136)$ (514,175)$ (535,448)$
CITY SHARED ADMINISTRATIVE EXPENSES -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$ -$ 150,000$ 157,500$ 165,375$ 173,644$ 182,326$
GROSS TOTAL OPERATING EXPENSES 515,905$ 2,158,403$ 2,301,621$ 2,407,608$ 2,520,483$ 2,639,758$ 437,255$ 1,730,231$ 1,842,525$ 1,922,472$ 2,006,308$ 2,104,310$
Variance of Hybrid Model vs. City Managed (78,650)$ (428,172)$ (459,097)$ (485,136)$ (514,175)$ (535,448)$
City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections
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APPENDIX C1c--P L Comparison by Mangaement Model
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A B C G H I J K L M N O P Q R
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5
NET OPERATING REVENUE (DEFICIT)(515,905)$ (369,682)$ 29,053$ 56,722$ 92,471$ 100,102$ (437,255)$ (122,690)$ 62,577$ 77,777$ 96,232$ 96,731$
Not Including City Administrative Allocation
Variance of Hybrid Model vs. City Managed 78,650$ 246,992$ 33,524$ 21,055$ 3,761$ (3,371)$
COST RECOVERY (Direct Revenue & Expenses Only)0%82%101%103%104%104%0%92%104%104%105%105%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (885,587)$ (856,534)$ (799,812)$ (707,341)$ (607,240)$ (437,255)$ (559,945)$ (497,368)$ (419,590)$ (323,359)$ (226,628)$
Variance of Hybrid Model vs. City Managed 78,650$ 325,642$ 359,166$ 380,221$ 383,982$ 380,612$
NET GROSS OPERATING REVENUE (DEFICIT)(515,905)$ (519,682)$ (128,447)$ (108,653)$ (81,173)$ (82,224)$ (437,255)$ (272,690)$ (94,923)$ (87,598)$ (77,412)$ (85,595)$
Including City Administrative Allocation
Variance of Hybrid Model vs. City Managed 78,650$ 246,992$ 33,524$ 21,055$ 3,761$ (3,371)$
COST RECOVERY (Direct Revenue & Expenses Only)0%76%94%95%97%97%0%84%95%95%96%96%
CUMMULATIVE OPERATING NET REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,164,034)$ (1,272,687)$ (1,353,860)$ (1,436,084)$ (437,255)$ (709,945)$ (804,868)$ (892,465)$ (969,878)$ (1,055,473)$
Variance of Hybrid Model vs. City Managed 78,650$ 325,642$ 359,166$ 380,221$ 383,982$ 380,612$
NON-OPERATING EXPENSES
Long Term Capital Replacement & Maintenance Reserve 0 0 60,000 70,000 80,000 82,400 0 0 60,000 70,000 80,000 82,400
Capital Reserve Accumulation Years 1-5 292,400 292,400
Years 6-10 84,872 87,418 90,041 92,742 95,524 84,872 87,418 90,041 92,742 95,524
Years 11-15 98,390 101,342 104,382 107,513 110,739 98,390 101,342 104,382 107,513 110,739
Years 16-20 114,061 117,483 121,007 124,637 128,377 114,061 117,483 121,007 124,637 128,377
Capital Accumulation Year 10 742,997 742,997
Capital Accumulation Year 15 1,265,362 1,265,362
Capital Accumulation year 20 0 1,870,927 0 1,870,927
NON-OPERATING EXPENSES -$ -$ 60,000$ 70,000$ 80,000$ 82,400$ -$ -$ 60,000$ 70,000$ 80,000$ 82,400$
GRAND TOTAL ALL EXPENSES (Including Reserve)515,905$ 2,158,403$ 2,361,621$ 2,477,608$ 2,600,483$ 2,722,158$ 437,255$ 1,730,231$ 1,902,525$ 1,992,472$ 2,086,308$ 2,186,710$
GRAND TOTAL REVENUE (DEFICIT)(515,905)$ (519,682)$ (188,447)$ (178,653)$ (161,173)$ (164,624)$ (437,255)$ (272,690)$ (154,923)$ (157,598)$ (157,412)$ (167,995)$
COST RECOVERY 0%76%92%93%94%94%0%84%92%92%92%92%
CUMMULATIVE TOTAL GROSS REVENUE (DEFICIT)(515,905)$ (1,035,587)$ (1,224,034)$ (1,402,687)$ (1,563,860)$ (1,728,484)$ (437,255)$ (709,945)$ (864,868)$ (1,022,465)$ (1,179,878)$ (1,347,873)$
City Managed Rec and Community Center Projections Hybrid Management Model: Rec and Community Center Projections
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APPENDIX C2a--Facility Revenue City Managed Model
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A B G H I J K L M
OPTION Existing Facility City Managed Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Facility Revenue
Issues to Review
Potential for Increased Revenue
Potential for Pre-Opening Revenue
Potential for Loss of Revenue
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Educational, Class, Camp and Clinic Rentals
Youth Camps 0 0 0 0 0 Any outside groups renting space for camp programs. In
house camps/clinics are in program revenue
Sport Camps Outside sport group camp rentals
Recreational and Educational Classes and
Programming by outside providers
0 0 0 Kayak, canoe, martial arts, dance for example:
Outsourced programming-could bring in house as developed
Community/Youth organizations Outside organizations renting space for programs.
EDUC, REC, CLASS, CAMP RENTALS 0 0 0 0 0 0
Gym/Court Space Rentals
Hourly Gym Rentals = $60/full court/hour;
$35/half court/hour.
Basketball Programs
AAU Program
Centennial Basketball Assoc.
General Rental 20,000 30,000 31,500 33,075 34,729 10 hours/week @ $60/hour for 50 weeks in Year 2.
Volleyball
Pickle ball
Other Sport Program
Non-sport Rentals
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
Category
May 10, 2021
Rec and Community Center Projections
1 of 5 6/1/2021
APPENDIX C2a--Facility Revenue City Managed Model
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Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
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GYM/COURT RENTALS SUBTOTAL 0 20,000 30,000 31,500 33,075 34,729
Pool Rentals Rental revenue based on Schedule Matrix time allocated. Local
Club team has expressed immediate interest in renting lane
space.
Tentative Lane Rental Rates: 25 yard-$12.50/lane/hour
Club Team Lane Rental
Great Wolf Swim Club 30,912 32,148 32,952 33,941 34,959 Club has expressed interest in renting as soon as facility opens.
Rent approximately 14 hours/week for 4 lanes at $12/lane/hour
for 46 weeks/year.
Other Groups/Clubs 0 0 0 0
25 Yd. Pool Rentals (Non-competitive)0 0 0 0
Program/Leisure Pool Rentals 2,500 2,625 2,704 2,785 2,868 Lesson Program or Community Ed Aquatic Programs
Therapy/Rehab 3,000 5,000 5,150 5,356 5,570 Rental rate for space in Program/Leisure Pool @ $50/hour. Year
2 = 100 hours per year, roughly 2 hours/week. Very conservative.
Likely to be able to get some advance commitments.
POOL RENTALS SUBTOTAL 0 36,412 39,773 40,806 42,082 43,398
Competitive Event Rentals Not Applicable in existing facility
COMPETITIVE EVENTS REVENUE
SUBTOTAL
0 0 0 0 0 0
Special Rentals and Functions
Birthday Parties and other parties 16,000 20,000 20,600 21,424 22,281 Average Fee of $200 for party-anticipate 100/year initially.-covers
wide range of party functions.
Meeting/Function Spaces 2,000 4,000 4,120 4,244 4,371 Potential for rentals of meeting spaces. Approximate meeting
space rental of $50/hour plus set up fee. Year 2 estimate is 80
hours per year; roughly 1.6 hours/week.
Fitness Studios or Workout space rentals 3,000 4,000 4,120 4,244 4,413 Potential for outside organizations and programs to rent workout
spaces and studio spaces when available. Includes outside
program providers of classes such as martial arts, outside fitness
classes, dance groups, etc.
Other rentals
SPECIAL EVENTS, FUNCTIONS, RENTALS 0 21,000 28,000 28,840 29,911 31,065
Therapy, Rehab and Health Care Programming Outsourced rental to health care provider/partner
Therapy time rental 0 0 0 0 0 Showing in Pool rental
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
76
77
78
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
Corporate health care programs
THERAPY, REHAB, HEALTH SUBTOTAL 0 0 0 0 0 0
Public Memberships/Daily Usage See Membership Worksheet. Utilized Membership Scenario #2.
Plan on advance membership drive in Year Zero to help offset
Year Zero costs. Launch approximately 3 months prior to
opening.
Daily Admission 39,534 41,615 43,696 45,881 48,175 See membership worksheet for breakdown of passes
Residents 0 0 0 Anticipate high start up for drop-in admissions in Year 1 as people
try out the "new" Rec Center.
Non-residents 0 0 0
12-Punch Pass 29,716 34,960 36,708 37,809 39,700
Residents 0 0 0 0
Non-residents 0 0 0 0
Membership Fees See Membership/Use Market analysis and projection worksheet.
Want to review our assumptions, rates, and calculations.
Potential for pre-opening advance membership sales. Year 1 is
75% of Year 2 projections based on membership model. Growth
Year 2 to 3 is 5% and Year 3 on at 3%. Used Scenario #2.
Overall Facility Membership 929,334 1,239,112 1,301,068 1,366,121 1,434,427 Anticipate membership fee increase in Year 4 or sooner.
Fitness Only Membership 246,071 328,095 344,500 361,725 379,811
Residents Anticipate attracting more residents compared to Y but losing
some non-residents who may continue at Forest Lake Y.
Non-residents We have the breakdown of the Y members by resident to
compare.
Child Watch Membership Add-On 12,750 15,000 15,750 16,223 16,709 100 drop-ins per week at 50 weeks @$3/drop-in. Will revisit the
business plan for this based on area facilities and develop a
membership add on option. Market range is $1 to $6.50 for drop
in.
Corporate Membership Programs Explore Opportunities-May depend on accessibility of location to
businesses.
Combined Group/Organizational
membership partnerships
Hotel Guest Membership Program 2,880 3,312 3,478 3,651 3,834 Explore Opportunities with Hampton Inn. Project average of 40
day passes/month @ $6/pass for the Hotel. May be drop in
passes purchased by the hotel. May link to some sponsorship
program.
3 of 5 6/1/2021
APPENDIX C2a--Facility Revenue City Managed Model
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16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
MEMBERSHIP/DAILY USAGE SUBTOTAL 0 1,260,286 1,662,094 1,745,199 1,831,409 1,922,655
Retail and Vending:
Vending Machine Revenue 1,000 1,150 1,185 1,220 1,257 Vending machines at facility-share of proceeds to facility revenue-
focus on healthy vending systems (see examples)
Food concession No food concession in current facility.
Pro shop/Kiosk sales at front desk 4,000 6,000 6,180 6,365 6,556 Swim/workout accessories, bottled water/sports drinks, energy
bars, and other items sold as a service to members through front
desk kiosk. Line items shows net profit. No added staff to
support. Average $500/month profit in Year 2.
RETAIL & VENDING SUBTOTAL 0 5,000 7,150 7,365 7,585 7,813
Retail Lease Revenue No outside lease revenue in current facility.
Food Concessions
Other outsourced sales or space lease
RETAIL LEASE REVENUE SUBTOTAL 0 0 0 0 0 0
Facility Sponsorships and Contributions
Includes cost relieving in-kind donations (VIK)
Sponsorships 0 0 0 0 0 We have not included any "soft" dollars. Potential exists for
some sponsorship revenue within City guidelines and policies.
Advertising 0 0 0 0 0
Annual Fundraising
Partnerships Opportunity for corporate health programs/program funding and
other partnerships
Grant Support Potential program for membership scholarships or financial aid to
support financial aid to those that cannot afford the full cost of
membership or programs. Nothing factored in but potential
exists.
SPONSORSHIP/CONTRIBUTIONS
SUBTOTAL
0 0 0 0 0 0
Municipal, School District and Other Partnerships To be developed.
School District Annual Use
Neighboring Municipalities Operating subsidy in exchange of resident rates, etc.
Health Care Provider
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APPENDIX C2a--Facility Revenue City Managed Model
15
16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
136
137
138
139
140
141
142
143
144
145
146
147
Other
0 0 0 0 0 0 No partnership or rental use included in this business model
Miscellaneous Income
Other
MISCELLANEOUS INCOME 0 0 0 0 0 0
GRAND TOTAL-FACILITY REVENUE 0 1,342,698 1,767,017 1,853,709 1,944,063 2,039,660
SCHOOL DISTRICT & OTHER
5 of 5 6/1/2021
APPENDIX C2b--Program Revenue City Managed Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
A B G H I J K L M
OPTION Existing Facility City Managed Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Program Revenue
Revenue from In-house programs Issues to Review
Potential for Pre-Opening Revenue Potential for Increased Revenue
Potential for Loss of Revenue
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Education and Community Programming
Lifesaving/Water Safety/Instructor
Courses and Certification.
0 0 0 Facility not ideal for lifeguard training but could be joint program
with Community Ed using this facility and function room and high
school for deep water certification.
First Aid/CPR/AED 1,500 2,500 2,575 2,678 2,785 Provide classes for outside groups also.
Community Classes 2,000 4,000 4,120 4,285 4,456 Examples: Computer, Art, Nutrition, Etc.
Sport/Rec Intro Classes 2,000 4,000 4,120 4,285 4,456
Miscellaneous 0 0 0 0
Classes and other programs linked to
Health care providers
0 0 0 0 0
COMMUNITY AND EDUCATIONAL
PROGRAMMING SUBTOTAL
0 5,500 10,500 10,815 11,248 11,698
Aquatics Training, Fitness and Therapy Programs
Aquatic Fitness Classes 15,000 25,000 26,000 27,040 28,122
Personal Training-Aquatics 5,000 7,500 7,800 8,112 8,436 Personal training and cross training are rapidly increasing in
aquatics. This is upside potential.
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
Category
ISG Projections
May 10, 2021
1 of 4 6/1/2021
APPENDIX C2b--Program Revenue City Managed Model
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15
16
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
Senior Programs-independent of
membership
0 0 0 0 0 Significant opportunities with senior living centers and supported
by facility meeting space. May want to engage organizations at
next step in the development process.
Aquatic Therapy/Rehab Outsources-showing in facility revenue as rental income
AQUATIC FITNESS SUBTOTAL 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training Programs
Dry-Land Fitness Classes 60,000 64,800 67,392 70,088 72,891
Personal Training-Dry-side 5,000 5,750 5,980 6,219 6,468 Personal Training is trending higher today. Upside potential.
Senior Programs-independent of
membership
Significant opportunities with senior living centers and supported
by facility meeting space. May want to engage organizations at
next step in the development process. Nothing factored in at this
point. Can also be outsourced as rental space for senior living
centers or other community senior programs.
DRY-SIDE FITNESS SUBTOTAL 0 65,000 70,550 73,372 76,307 79,359
Learn to Swim Program Includes all group lessons, kids and adults, private and semi-
private lessons, swim lessons for triathletes, or private stroke
lessons, etc.
See Market Analysis and Projection worksheets
Can explore partnership with School District existing Community
Ed program or explore potential outside provider partnership.
Registration Fees-Swim Lesson Program 154,524 208,607 239,899 281,686 295,770 Assumes in-house program.
Group Lessons 0 0 0
Private Lessons 0 0 0 Private Lessons are trending up
Semi-Private Lessons 0 0 0
Other Revenue (Grants, Sponsorships)Grant programs supporting community and disadvantaged learn
to swim programs, scholarships and community programs.
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APPENDIX C2b--Program Revenue City Managed Model
14
15
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
School or Community Ed Partnership
Program
Potential for swim lesson partnership with school district-would
require some outside grant funding and transportation. Nothing
included at this point in time. Example: Swim lessons for all 2nd
graders.
LEARN TO SWIM PROGRAM SUBTOTAL 0 154,524 208,607 239,899 281,686 295,770
Camp and Clinic Programs
Kids summer day camps/all sport
activities
45,000 75,000 78,000 81,120 84,365
Dive in Movies 0 0 0
Sport Specific Camps 0 0 0
Other Programs
CAMP/CLINIC PROGRAMS SUBTOTAL 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs
USA Swimming In House Club 0 0 0 0 0 No in-house team. Outside clubs renting time.
Summer Rec Swim Team 0 0 0 0 0 XX kids @$XXX/summer 6 week season in summer league.
Explore Option-No revenue initially planned. Should explore in
Year 2.
Masters Masters projected as outside group renting pool space. May
consider an in-house masters or adult organized lap swimming
program at some point in time.
AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0
Any in-house programs
Sport & Team Programs and Classes To be determined
Youth Team Programs Most likely to be outside programs, renting some space
Adult Team Programs
Pickle Ball 4,000 6,000 6,240 6,490 6,749 In-House Program: Small scale with current size of gym. If
program grows the Rec Center may consider renting outside court
spac for its program demand.
Introductory Sport Classes 2,000 3,000 3,120 3,245 3,375 May coordinate with Community Ed.
Other
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APPENDIX C2b--Program Revenue City Managed Model
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
88
89
90
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
SPORT TEAM PROGRAM SUBTOTAL 0 6,000 9,000 9,360 9,734 10,124
Program Specific Sponsorships and Contributions No "Soft" revenue factored in at this point, but anticipate some
revenue, especially in grant support for outreach and program
user subsidies and scholarships.
Sponsorships In support of Specific Programs
Advertising In support of Specific Programs
Annual Fundraising Annual Fundraising in support of specific programs.
Partnerships Opportunity for corporate health programs/program funding and
other partnerships
Grant Support Scholarship Programs and other grant support for programs
SPONSORSHIP/CONTRIBUTIONS
SUBTOTAL
0 0 0 0 0 0
Miscellaneous Income
Other
MISCELLANEOUS INCOME 0 0 0 0 0 0
GRAND TOTAL-PROGRAM REVENUE 0 296,024 406,157 445,246 495,247 517,873
4 of 4 6/1/2021
APPENDIX C2c--Operational Expenses City Managed Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
50
51
52
53
54
A B G H I J K L M
OPTION Existing Facility City Managed Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with some programs possibly outsourced.
Operational Expenses
Factored in potential future $15/hour state minimum
wage.
Issues to Review Annual Utility and Misc. Expenses increases at 3%
Potential for Increased Costs Salary and Wages increase at 5% annually
Potential to Reduce Costs Specific Pre-Opening One Time Costs
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Utilities
25 yard lap pool
(75' x 36') 2,700 Square Feet
Based on 104,000 Gallons-3'5" deep to 5'' deep.
6 hour turnover rate. Flow Rate = 288 GPM. These
estimates are for the existing sand filters and equipment as
is.
Electric 6,000 6,180 6,365 6,556 6,753 Just pool water circulation
Water/Sewer 3,500 3,605 3,713 3,825 3,939 Does not include initial pool fill.
Gas (Heat/Cool)6,000 6,180 6,365 6,556 6,753 Just Pool
Chemicals 0 0 0 0 In Equipment and Supplies
UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool
Maintenance
Program/Leisure Pool (60' x 36')
2,160 Square Feet
Based on 29,000 Gallons-Zero depth to 4' deep. 6
hour turnover rate. Flow Rate = 241. These estimates are
for the existing Sand Filters.
Electric 5,000 5,150 5,305 5,464 5,628 Just the pool water circulation
Water/Sewer 3,000 3,090 3,183 3,278 3,377 Does not include initial pool fill.
Gas (Heat/Cool)4,000 4,120 4,244 4,371 4,502 Just the pool
Chemicals 0 0 0 0 In Equipment and Supplies
UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool
Maintenance.
Pool Room Space Pool Room Space: 8,859 sq. ft. @ $3.25/sq. ft. =$28,792
Electric 16,000 16,480 16,974 17,484 18,008 All Pool Room Space included.
Water/Sewer 792 816 840 865 891
Gas (Heat/Cool)14,000 14,420 14,853 15,298 15,757
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
Category
ISG Projections
May 10, 2021
1 of 8 6/1/2021
APPENDIX C2c--Operational Expenses City Managed Model
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
86
87
88
89
90
91
98
99
100
101
102
103
Common and Support Spaces 11,661 sf @$3.00/sf = $34,983
Electric 20,000 20,600 21,218 21,855 22,510 Includes Locker rooms, Lobby, Offices, etc.
Water/Sewer 3,983 4,102 4,226 4,352 4,483
Gas (Heat/Cool)15,500 15,965 16,444 16,937 17,445
Gym Space 4,566 sf @$2.50/sf = $11,415
Electric 5,500 5,665 5,835 6,010 6,190
Water/Sewer 415 427 440 453 467
Gas (Heat/Cool)5,500 5,665 5,835 6,010 6,190
Fitness Center Spaces Includes all fitness workout and supporting spaces. 7,658 sf
@ $3.00/square foot. = $22,974
Electric 15,000 15,450 15,914 16,391 16,883
Water/Sewer 474 488 503 518 533
Gas (Heat/Cool)11,250 11,588 11,935 12,293 12,662
0 0 0 0
0 0 0 0
Building Mechanicals and Operations 1,887 sq. ft.-average cost approx. $2.50 = $4,717
Electric 2,000 2,060 2,122 2,185 2,251
Water/Sewer 717 739 761 783 807
Gas (Heat/Cool)2,000 2,060 2,122 2,185 2,251
0 0 0 0
0 0 0 0
UTILITIES SUBTOTAL 9,000 140,631 144,850 149,195 153,671 158,281 Approximately $3.35/sf. Current Y is $3.30/sf. Year Zero
is total of estimated monthly costs while closed: roughly $
3,139/month assuming 4 months prior to full opening with
expenses for 3 months of use as COVID Vaccination center
factored out. This cost may increase as other costs are
factored in. Expenses through June 30, 2021 are covered
by State of Minnesota for use as COVID Vaccine site.
Lower energy use in warmer months when closed.
Maintenance Some of these services can be outside contracted services
Pool Maintenance 0 0 0 Anticipate Maintenance costs increasing as equipment ages
S&E Pool Mechanical 4,000 4,120 4,244 4,371 4,502
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APPENDIX C2c--Operational Expenses City Managed Model
14
15
16
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
104
105
107
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
132
133
134
135
136
137
UV System Maintenance and Bulb
Replacement
0 0 0
25 yard Lap Pool 5,000 5,150 5,305 5,464 5,628
Program Pool 3,000 3,090 3,183 3,278 3,377
Building Repairs & Maintenance 10,000 10,300 10,609 10,927 11,255
Building Grounds, Maint, Plowing 20,000 20,600 21,218 21,855 22,510 Provided by City Maintenance team, but additional costs
factored into Rec Center Budget
Replacement and Maintenance
Accrual Fund
Showing in gross expenses below.
Equipment Repairs 2,000 2,060 2,122 2,185 2,251 Includes fitness equipment-Could be different in a Lease
situation
Pre-Opening: Pool 6,000
Pre-Opening: Cleaning 6,000 First Floor cleaned by State as part of Vaccination Center
rental.
Pre-Opening: Maintenance 3,000 Contingency
Pool Refill-Water and chemicals 4,000 7,000 Both Pools-On a 5-year drain and fill cycle
MAINTENANCE SUBTOTAL 19,000 44,000 45,320 46,680 48,080 56,522
Equipment & Supplies Includes start up supplies and any equipment not included
in Capital Costs and FF&E (Furniture, Fixtures, &
Equipment). Specific program equipment showing in
Program Expenses.
Office Supplies 3,000 3,090 3,183 3,278 3,377
First Aid/Safety 2,000 2,060 2,122 2,185 2,251
Maintenance/Repair/Materials 3,000 3,090 3,183 3,278 3,377
Custodial Supplies 30,000 30,900 31,827 32,782 33,765 YMCA was on the high side on this. Anticipate some
savings with overall City purchase contracts.
Pool Chemicals 0 0 0 0
Lap Pool 5,000 5,150 5,305 5,464 5,628
Program/Leisure Pool 2,000 2,060 2,122 2,185 2,251
Pre-Opening Re-branded Building
Signage
16,000
Pre-Opening Pool Equipment 26,149
Pool Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual
replacements
Pre-Opening Sport Equipment 7,940 Includes equipment needed for opening and then annual
replacements. Includes Gym Equipment
Sport Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual
replacements. Includes Gym Equipment
Pre-Opening Fitness Equipment
Purchases
50,000 $15,000 in equipment already purchased. Already
purchased from Y by City.
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APPENDIX C2c--Operational Expenses City Managed Model
14
15
16
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
Fitness Equipment Purchases 0 3,000 3,090 3,183 3,278
Fitness Equipment Leasing 9,000 72,000 72,000 72,000 72,000 72,000 Assumes Leasing majority of equipment at average of
$6,000/month. Start 6 weeks prior to opening.
Move and Set up Fitness Equipment,
Flooring, etc.
Recreational Supplies 2,000 2,060 2,122 2,185 2,251
Uniforms 3,000 3,090 3,183 3,278 3,377 May be offset by equipment/apparel sponsorships
Printing & Postage 1,000 1,030 1,061 1,093 1,126
Pre-Opening General Supplies and
Equipment
48,000 Includes Start Up for Camp Equipment, Child Watch/Kids
Stuff Equipment
General Supplies and Equipment 0 5,000 5,150 5,305 5,464 5,628
Pre-Opening Building General
Supplies, Equipment and FF&E
Contingency
65,425 Includes Start Up for Custodial Equipment, Copier, Printers,
Camp Equipment, Child Watch/Kids Stuff Equipment
Building General Supplies,
Equipment and FF&E Contingency
5,000 5,150 5,305 5,464 5,628
Pre-Opening Management Program
Equipment
17,000 Includes Card Access/Membership System Management
Equipment and Software
Management Program Equipment 2,000 2,060 2,122 2,185 2,251 Updates, maintenance, and upgrades to systems
EQUIPMENT & SUPPLIES SUBTOTAL 239,514 139,000 144,010 146,170 148,395 150,687
Staff Costs: Salaries & Wages Year Zero includes staffing needed prior to opening of
facility and not included in project capital costs and
training of part-time staff. Using 5% annual escalation to
account for COLA and step increases.
Full-Time Staff Need to review proper job title hierarchy with the City
structure. City HR Director reviewing positions, grades,
and titles.
Facility Director 37,500 90,000 94,500 99,225 104,186 109,396 1.0 FTE Start position 5 months prior to opening. Review
based on market rate and City grade levels.
Program Manager 16,250 65,000 68,250 71,663 75,246 79,008 1/0 FTE Start position 3 months prior to opening.
Aquatic Supervisor 15,000 60,000 63,000 66,150 69,458 72,930 1.0 FTE May not be needed if working with Lease
Agreement-Start 3 months prior to opening.
Membership/Customer Service
Manager
13,750 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3 months prior to opening.
Front Desk Coordinator 3,333 40,000 42,000 44,100 46,305 48,620 1.0 FTE Start 1 months prior to opening. May just be part-
time
4 of 8 6/1/2021
APPENDIX C2c--Operational Expenses City Managed Model
14
15
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
Fitness Supervisor 13,750 55,000 57,750 60,638 63,669 66,853 May not need if working with Lease Agreement-Start 3
months prior to opening.
Maintenance/Operations Manager 19,250 77,000 80,850 84,893 89,137 93,594 1.0 FTE Start 3 months prior to opening.
Administrative, Accounting, HR 9,500 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3-4 months prior to opening. -Reviewing with
City HR and operations to determine need or add on costs
for existing City Staff. Is this covered in the City Admin
share costs?
Custodial & Bldg. Maint. Staff 9,375 112,500 118,125 124,031 130,233 136,744 2.5 FTE Start 1 Months prior to opening following deep
cleaning. Should this be in part-time? What should the
base annual salary/rate by for these positions? We used
$45,000 in this model.
FULL-TIME STAFF SUBTOTAL 137,708 609,500 639,975 671,974 705,572 740,851
Part-Time Staff Currently using 4% as annual escalation. All Part-Time
positions are <30 hours/week. Assuming $15 minimum
hourly wage in near future.
Front Desk/Access Control 3,000 78,000 81,900 85,995 90,295 94,809 2.5 FTE, 100 hrs./week @ $15.00/hr. - $78,000
Fitness Attendants 2,000 78,000 81,900 85,995 90,295 94,809 2.5 FTE, 100 hrs./week @ $15.00/hr. - $78,000
Gym Monitors 2,000 31,200 32,760 34,398 36,118 37,924 1 FTE, 40 hrs./week @ $15.00/ hr.- $31,200. Includes safety
monitor and manage proper use of equipment ("lifeguard"
for the weight and workout spaces)
Head Lifeguard 2,000 18,720 19,656 20,639 21,671 22,754 .5 FTE, 20 hrs./week @ $18.00/hr. - $18,720. Should be
CPO certified.
Lifeguards 2,000 93,600 98,280 103,194 108,354 113,771 3 FTE, 120 hrs./week @ $15.00/hr.- $93,600
Custodial/Maintenance Part-Time 2,500 95,680 100,464 105,487 110,762 116,300 2 FTE for part-time custodial @$23/hour. Is this an hourly
wage in line with current City custodial part-time staff?
Child watch 2,000 62,400 65,520 68,796 72,236 75,848 2 FTE, 80 hrs./week @ $15.00/hr.- $62,400. Revenue does
not come close to supporting costs of program, but it is an
important membership benefit/service. Year Zero is
training.
Program Instructors and Staff In program Expenses
Camp Staff In program Expenses
Other
Clerical/Administrative Support In Full Time Staff
5 of 8 6/1/2021
APPENDIX C2c--Operational Expenses City Managed Model
14
15
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
187
188
189
190
191
192
193
194
195
197
198
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
Event Staff costs All extraordinary event staff costs are paid separately by
event renter/host or included in event expenses as a pass
through.
PART-TIME STAFF SUBTOTAL 15,500 457,600 480,480 504,504 529,729 556,216
Staff Benefits and Payroll Taxes Confirm benefit & payroll tax calculations. HR reviewing.
Full Time
Benefits & Payroll Taxes 55,083 243,800 255,990 268,790 282,229 296,340 Roughly average 40%-will need to calculate exactly.
Part Time
Benefits & Payroll Taxes 3,100 91,520 96,096 100,901 105,946 111,243 Calculated at 20% to cover FICA, PERA, Workers Comp, etc.
BENEFITS & PAYROLL TAXES
SUBTOTAL 58,183 335,320 352,086 369,690 388,175 407,584
STAFF SALARIES, WAGES & BENEFITS
GRAND TOTAL
211,391 1,402,420 1,472,541 1,546,168 1,623,476 1,704,650
Staff Costs: Other NOTE: Outside services linked to funding, fundraising,
design, etc. included in capital costs, not operating
budget.
Staff Development and Training 2,000 2,500 2,563 2,627 2,692 2,760 Can be managed by management staff
Conferences 2,000 2,050 2,101 2,154 2,208
Staff Certifications & Licenses 500 2,000 2,050 2,101 2,154 2,208
Staff Travel 2,000 2,050 2,101 2,154 2,208
Dues/Subscriptions 500 1,000 1,025 1,051 1,077 1,104
STAFF COSTS-OTHER 3,000 9,500 9,738 9,981 10,230 10,486
Outside (contract) Services
Accounting Services Included in Full Time Staff
PR/Media Initially combined with Marketing.
6 of 8 6/1/2021
APPENDIX C2c--Operational Expenses City Managed Model
14
15
16
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
Marketing 10,000 10,000 5,000 5,000 Includes consultant fees. Can reduce after Year One and
phase out.
Building Rebranding Development 4,000 Consulting on branding of Rec/Community Center. Can be
combined with marketing and PR services also.
IT/Computer Support Included in City Admin Cost/Services Allocation line item.
Human Resources Handle in-house
Testing Services TBD
Custodial Outsourcing Currently showing in staff costs
Maintenance Outsourcing Currently showing in staff costs
Landscape Maintenance In Maintenance
Operations/Mgmt. Consultant N/A
Other
Trash Service 1,000 6,000 6,150 6,335 6,525 6,720
Contract Services 0 0 0 TBD
OUTSIDE SERVICES SUBTOTAL 15,000 16,000 11,150 11,335 6,525 6,720
General Office Costs
Phone/Media Service 0 3,000 3,100 3,200 3,300 3,400
Technology/IT Support 3,000 3,100 3,200 3,300 3,400
Scholarship and Membership
Financial Aid
15,000 20,000 20,000 20,000 20,000 Allocation to support financial aid for residents not able to
afford full cost of facility use and programs. Likely part of
this expense can be offset by grant funding. At this point
no grant support or other charitable support of financial aid
is factored in to budget.
Postage 1,500 1,500 1,500 1,500 1,500 1,500 General marketing mailing
Marketing and Promo Materials 10,000 7,500 5,000 5,000 5,000 5,000 Marketing support for overall facility. Includes brochure,
post cards, and other collateral materials. Additional
marketing funds are also included in specific programs
under program expenses. Important to incorporate into
advance marketing. Some program specific marketing is
listed in Program Expenses line items for the specific
program.
Advertising 0 3,000 3,000 3,000 3,000 3,000
Fees-Registration/CC/On-Line 50,411 66,484 69,808 73,256 76,906 Calculated at 4% of 100% of membership revenue using on-
line registration and credit card processing. Program
Registration & CC Fees show in Program Expenses. This is
Maximum projected expenses and some savings are likely.
Bank Charges Are there any other bank charges
7 of 8 6/1/2021
APPENDIX C2c--Operational Expenses City Managed Model
14
15
16
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
Legal Fees 5,000 5,000 5,000 5,000 5,000 Budgeted retainer.
GENERAL OFFICE SUBTOTAL 11,500 88,411 107,184 110,708 114,356 118,206
Insurance
Insurance:5,000 10,000 10,300 10,609 10,927 11,255
Insurance: Property
Insurance: Liability
Insurance: Other
INSURANCE SUBTOTAL 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous
Other Expenses
Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 Contingency decreases as history provides better budgeting
info.
MISCELLANEOUS SUBTOTAL 2,500 10,000 7,500 5,000 5,000 5,000
TOTAL-OPERATING EXPENSES 515,905 1,859,962 1,952,592 2,035,846 2,120,662 2,221,809
GROSS OPERATING EXPENSES-Additional Support long term capital replacement, maintenance, and
growth. Target is $440,000 by Year 10 and $1,000,000 by
Year 20.
Facility Reserve How do you want to show or account for this.
Initial Funding of Reserve
Annual Reserve Replacement
Funding
-$ -$ 60,000$ 70,000$ 80,000$ 82,400$ Capital Replacement and Maintenance Reserve Fund. See
cumulative calculations in P & L Statement. After Year 3
reserve increases by 3% annually.
City Charge Backs (Administrative Overhead)
City Support/Admin Charge Backs 150,000 157,500 165,375 173,644 182,326 The share of City Overhead charged to Rec Center.
Increasing 5%/year per City.
Additional Gross Operating Expenses 0 150,000 217,500 235,375 253,644 264,726
TOTAL GROSS EXPENSES 515,905 2,009,962 2,170,092 2,271,221 2,374,306 2,486,535
8 of 8 6/1/2021
APPENDIX C2d:--Program Expenses City Managed Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
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A B G H I J K L M
OPTION Existing Facility City Managed Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Program Expenses
Program related expenses not included in annual operating pool staff and expenses
Potential for Increased Costs
Potential to Reduce Costs
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Community Educational Programming
Program Director 0 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses.
Instructors 1,650 3,150 3,245 3,374 3,509 Hourly-Instructor fees increase at rate equal
to increase in program gross revenue-
Instructor wages average 30% of gross
program fees.
Payroll Expenses/benefits/taxes 0 330 630 649 675 702 Assume part-time instructors. Calculated at
20% of wages to cover PERA, FICA,
Workman's comp, etc.
Travel, Staff Development Staff development and Training in
Operational Expenses.
Marketing and Promo Materials
Other Program Expenses 500 500 500 500 500
Postage
Fees-Registration/CC/On-Line 220 420 433 450 468 Showing in Operational Expenses-Bank
Charges
Lino Lakes Recreation and Community Center
Category
Financial Forecast Pre-Opening Year Through Year 5
ISG Projections
Program Expenses increase by 3% after Year
2.
May 10, 2021
1 of 5 6/1/2021
APPENDIX C2d:--Program Expenses City Managed Model
15
16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
27
28
29
30
31
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
COMMUNITY EDUCATIONAL
SUBTOTAL
0 2,700 4,700 4,826 4,999 5,179
Aquatic Training, Fitness and Therapy Programs
Fitness Program Director 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses.
Instructors for Classes 6,000 9,750 10,140 10,546 10,967 Hourly Wages calculated as 30% of class fee
revenue
Payroll Expenses/benefits/taxes 1,200 1,950 2,028 2,109 2,193 Assume part-time instructors
Travel, Staff Development Staff development and Training
Marketing and Promo Materials
Other Program Expenses 1,000 1,000 1,000 1,000 1,000
Postage
Fees-Registration/CC/On-Line 800 1,300 1,352 1,406 1,462 Showing in Operational Expenses-Bank
Charges
AQUATIC FITNESS SUBTOTAL 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness
Fitness Program Director Program management and supervision in full-
time staff in Operational Expenses.
Instructors 21,000 22,680 23,587 24,531 25,512 Hourly Wages calculated as 35% of class fee
revenue
Personal Training Instructors 1,750 2,013 2,093 2,177 2,264 Hourly Wages calculated as 35% of class fee
revenue. Personal Training is growing.
Payroll Expenses/benefits/taxes 0 4,550 4,939 5,136 5,341 5,555 Assume part-time instructors: Both City
employees and independent contractors.
Travel, Staff Development Staff development and Training
Marketing and Promo Materials
Other Program Expenses 1,000 1,000 1,000 1,000 1,000
Postage
Fees-Registration/CC/On-Line 2,600 2,822 2,935 3,052 3,174
DRY-SIDE FITNESS SUBTOTAL 0 30,900 33,453 34,751 36,101 37,505
2 of 5 6/1/2021
APPENDIX C2d:--Program Expenses City Managed Model
15
16
17
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
Learn to Swim Program Costs
Learn to Swim Program Director 0 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses. May want
to have dedictated program director based
on size of program. May be lead instructor.
Learn to Swim Instructors 43,267 58,410 67,172 78,872 82,816 Hourly, $18/hr.-Year 0 is training. Instructors
= approximately 28% of gross lesson
revenue.
Payroll Expenses/benefits/taxes 0 8,653 11,682 13,434 15,774 16,563 Assume part-time instructors
Travel, Staff Development 1,000 1,000 1,000 1,000 1,000 Staff development and Training
Marketing and Promo Materials 1,000 1,000 1,000 1,000 1,000
Other Program Expenses 1,500 1,950 2,340 2,574 2,703
Postage
Fees-Registration/CC/On-Line 6,181 8,344 9,596 11,267 11,831 Showing in Operational Expenses-Bank
Charges
Scholarships 7,500 7,500 7,500 7,500 7,500
LEARN TO SWIM PROGRAM SUBTOTAL 0 69,101 89,886 102,042 117,988 123,412
Camp and Clinic Programs
Camp Director 0 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses.
All Camp Staff 14,400 24,000 24,960 25,958 26,997 Wages calculated at 32% of gross revenue
Payroll Expenses/benefits/taxes 0 2,880 4,800 4,992 5,192 5,399
Marketing and Promo Materials May include some advertising and direct mail
campaign
Other Program Expenses
Postage
Fees-Registration/CC/On-Line 1,800 3,000 3,120 3,245 3,375 Showing in Operational Expenses-Bank
Charges
3 of 5 6/1/2021
APPENDIX C2d:--Program Expenses City Managed Model
15
16
17
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
155
156
157
Other Camp Expenses 2,000 2,300 2,484 2,608 2,739 Outfitting/Specific Equipment/Audio visual,
etc.
CAMP and CLINIC SUBTOTAL 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs
US Masters Swimming Team Exploring as in-house or outsourced rental
program.
Coach Travel and Entertainment
Other Swim Team Expenses
Fees-Registration/CC/On-Line
Marketing and Promo Materials
Payroll Expenses/benefits/taxes
Masters Team Subtotal 0 0 0 0 0 0
Summer Recreation Swim Team Potential for summer rec team as program
grows-nothing factored in at this point.
Coaches Payroll 0 0 0 0 0 Part time coaches-wage based on XX% of
total team revenue.
Coach Travel and Entertainment
Other Swim Team Expenses 0 0 0 0
Fees-Registration/CC/On-Line Showing in Operational Expenses-Bank
Charges
Marketing and Promo Materials
Payroll Expenses/benefits/taxes 0 0 0 0 0 0 No benefits
Summer Rec Team Subtotal 0 0 0 0 0 0
AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0
Sport Team Programs
4 of 5 6/1/2021
APPENDIX C2d:--Program Expenses City Managed Model
15
16
17
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
158
159
160
161
162
163
164
165
166
167
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
Coaches/Instructors Payroll 1,800 2,700 2,808 2,920 3,037 Part time coaches-wage based on 30% of
total team revenue.
Coach Travel and Entertainment
Other Sport Program Expenses 1,000 1,150 1,323 1,521 1,749
Fees-Registration/CC/On-Line Showing in Operational Expenses-Bank
Charges
Marketing and Promo Materials In overall marketing
Payroll Expenses/benefits/taxes 0 360 540 562 584 607 No benefits
SPORT TEAMS SUBTOTAL 0 3,160 4,390 4,692 5,025 5,394
Scholarship and Student Support
Expenses related to all programs 5,000 5,000 5,000 5,000 5,000 All Programs except learn to swim which has
its own financial aid budget.
SCHOLARSHIP & SUPPORT SUBTOTAL 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous
Expense Contingency 7,500 6,000 5,000 5,000 5,000 Expense Contingency. ISG like to include a
miscellaneous contingency. Contingency
decreases each year as history better guides
budgeting.
MISCELLANEOUS SUBTOTAL 0 7,500 6,000 5,000 5,000 5,000
TOTAL-PROGRAM EXPENSES 0 148,441 191,529 206,387 226,177 235,623
Program Staff Wages & Benefits Subtotal 0 105,680 144,003 157,436 174,549 182,478
5 of 5 6/1/2021
APPENDIX C2e--Program Net Revenue City Managed Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
A B G H I J K M
OPTION Existing Facility City Managed Membership Scenario #2
NOTES:
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Net Program Revenue
Issues to Review
Potential for Increased Revenue
Potential for Loss of Revenue
Year 1`Year 2 Year 3 Year 4 Year 5 Comments
PROGRAM EXPENSES 148,441 191,529 206,387 226,177 235,623
PROGRAM INCOME 296,024 406,157 445,246 495,247 517,873
NET PROGRAM REVENUE (DEFICIT)147,583 214,628 238,859 269,070 282,251 Year 2
PROGRAM BREAKDOWN
Community Education Programming
Expenses 2,700 4,700 4,826 4,999 5,179
Revenue 5,500 10,500 10,815 11,248 11,698
Net Revenue (Deficit)2,800 5,800 5,989 6,249 6,519
Profit Margin 51%55%55%56%56%
Aquatic Fitness and Training Programs
Expenses 9,000 14,000 14,520 15,061 15,623
Revenue 20,000 32,500 33,800 35,152 36,558
Net Revenue (Deficit)11,000 18,500 19,280 20,091 20,935
Profit Margin 55%57%57%57%57%
Dry-Side Fitness and Therapy Programs
Category
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
ISG Projections
May 10, 2021
1 of 2 6/1/2021
APPENDIX C2e--Program Net Revenue City Managed Model
14
15
16
A B G H I J K M
Year 1`Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
73
74
75
76
77
Expenses 30,900 33,453 34,751 36,101 37,505
Revenue 65,000 70,550 73,372 76,307 79,359
Net Revenue (Deficit)34,100 37,097 38,621 40,206 41,854
Profit Margin 52%53%53%53%53%
Learn to Swim Programs
Expenses 69,101 89,886 102,042 117,988 123,412 Includes funding of scholarships
Revenue 154,524 208,607 239,899 281,686 295,770 Includes grant for scholarships
Net Revenue (Deficit)85,423 118,721 137,857 163,698 172,358
Profit Margin 55%57%57%58%58%
Camp and Clinic Programs
Expenses 21,080 34,100 35,556 37,003 38,509
Revenue 45,000 75,000 78,000 81,120 84,365
Net Revenue (Deficit)23,920 40,900 42,444 44,117 45,856
Profit Margin 53%55%54%54%54%
Summer Rec Swim Team
Expenses 0 0 0 0 0
Revenue 0 0 0 0 0
Net Revenue (Deficit)0 0 0 0 0
Profit Margin #DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
Sport/Team Programs
Expenses 3,160 4,390 4,692 5,025 5,394
Revenue 6,000 9,000 9,360 9,734 10,124
Net Revenue (Deficit)2,840 4,610 4,668 4,709 4,730
Profit Margin 47%51%50%48%47%
2 of 2 6/1/2021
APPENDIX C3a Facility Revenue Hybrid Management Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
A B G H I J K L M
OPTION Existing Facility Hybrid Management Model Membership Scenario #2
NOTES:
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Facility Revenue
Issues to Review
Partnership: Decreased Revenue Potential for Increased Revenue
Partnership: Decreased Expenses Potential for Pre-Opening Revenue
Partnership: Increased Revenue Potential for Loss of Revenue
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Educational, Class, Camp and Clinic Rentals
Youth Camps 0 0 0 0 0 Any outside groups renting space for camp programs. In
house camps/clinics are in program revenue
Sport Camps Outside sport group camp rentals
Recreational and Educational Classes and
Programming by outside providers
0 0 0 Kayak, canoe, martial arts, dance for example:
Outsourced programming-could bring in house as developed
Community/Youth organizations Outside organizations renting space for programs.
EDUC, REC, CLASS, CAMP RENTALS 0 0 0 0 0 0
Gym/Court Space Rentals
Hourly Gym Rentals = $60/full court/hour;
$35/half court/hour.
Basketball Programs
AAU Program
Centennial Basketball Assoc.
General Rental 20,000 30,000 31,500 33,075 34,729 10 hours/week @ $60/hour for 50 weeks in Year 2.
Volleyball
Pickleball
Other Sport Program
Non-sport Rentals
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
Category
May 10, 2021
Rec and Community Center Projections
1 of 6 6/1/2021
APPENDIX C3a Facility Revenue Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
63
64
65
66
67
68
69
70
71
GYM/COURT RENTALS SUBTOTAL 0 20,000 30,000 31,500 33,075 34,729
Pool Rentals Rental revenue based on Schedule Matrix time allocated. Local
Club team has expressed immediate interest in renting lane
space.
Tentative Lane Rental Rates: 25 yard-$12.50/lane/hour
Club Team Lane Rental
Great Wolf Swim Club 30,912 32,148 32,952 33,941 34,959 Club has expressed interest in renting as soon as facility opens.
Rent approximately 14 hours/week for 4 lanes at $12/lane/hour
for 46 weeks/year.
Other Groups/Clubs 0 0 0 0
25 Yd Pool Rentals (Non-competitive)0 0 0 0
Program/Leisure Pool Rentals 2,500 2,625 2,704 2,785 2,868 Lesson Program or Community Ed Aquatic Programs other than
the swim lesson program.
Therapy/Rehab 3,000 5,000 5,150 5,356 5,570 Rental rate for space in Program/Leisure Pool @ $50/hour. Year
2 = 100 hours per year, roughly 2 hours/week. Very conservative.
Likely to be able to get some advance commitments.
POOL RENTALS SUBTOTAL 0 36,412 39,773 40,806 42,082 43,398
Competitive Event Rentals Not Applicable in existing facility
COMPETITIVE EVENTS REVENUE
SUBTOTAL
0 0 0 0 0 0
Special Rentals and Functions
Birthday Parties and other parties 16,000 20,000 20,600 21,424 22,281 Average Fee of $200 for party-anticipate 100/year initially.-covers
wide range of party functions.
Meeting/Function Spaces 2,000 4,000 4,120 4,244 4,371 Potential for rentals of meeting spaces. Approximate meeting
space rental of $50/hour plus set up fee. Year 2 estimate is 80
hours per year; roughly 1.6 hours/week.
Fitness Studios or Workout space rentals 0 0 0 0 0 Control and outside rental of fitness spaces will be controlled by
Fitness Partner except in mutually agreed upon one-off
opportunities. Revenue zeroed out. Potential for outside
organizations and programs to rent workout spaces and studio
spaces when available. Includes outside program providers of
classes such as martial arts, outside fitness classes, dance groups,
etc.
Other rentals
2 of 6 6/1/2021
APPENDIX C3a Facility Revenue Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
72
73
74
75
76
77
78
79
85
86
87
88
89
90
91
92
93
94
95
96
97
SPECIAL EVENTS, FUNCTIONS, RENTALS 0 18,000 24,000 24,720 25,668 26,652
Therapy, Rehab and Health Care Programming Outsourced rental to health care provider/partner
Therapy time rental 0 0 0 0 0 Showing in Pool rental
Corporate health care programs
THERAPY, REHAB, HEALTH SUBTOTAL 0 0 0 0 0 0
Public Memberships/Daily Usage See Membership Worksheet
Plan on advance membership drive in Year Zero to help offset
Year Zero costs. Launch approximately 3 months prior to
opening.
Daily Admission 39,534 41,615 43,696 45,881 48,175 See membership worksheet for breakdown of passes. Do not
anticipate any change in daily admission passes.
Residents 0 0 0 Anticipate high start up for drop-in admissions in Year 1 as people
try out the "new" Rec Center.
Non-residents 0 0 0
12-Punch Pass 29,716 34,960 36,708 37,809 39,700 Punch passes are not offered for fitness only. Do not anticipate
any drop in this revenue.
Residents 0 0 0 0
Non-residents 0 0 0 0
Membership Fees See Membership/Use Market analysis and projection worksheet.
Want to review our assumptions, rates, and calculations.
Potential for pre-opening advance membership sales. Year 1 is
75% of Year 2 projections based on membership model. Growth
Year 2 to 3 is 5% and Year 3 on at 3%.
Overall Facility Membership 1,096,610 1,290,130 1,354,636 1,422,368 1,493,486 Year 1 increases to 85% of Year 2 based on Fitness Partner
existing members. Also anticipate additional incremental growth
of membership in Year 2 by 5% based on Fitness Partner.
Anticipate membership fee increase in Year 4 or sooner.
FITNESS PARTNER ASSUMPTIONS: Membership in Year 1
accelerated. Anticipate some share of overall membership driven
by Fitness Partner. Also anticipate Fitness partner will enhance
value of membership-attracting increased membership overall
(particularly considering the membership they were able to pull
from YMCA).
3 of 6 6/1/2021
APPENDIX C3a Facility Revenue Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
Fitness Only Membership 0 0 0 0 0 Fitness partner would accelerate year one membership, bringing
in their existing membership immediately. FITNESS
PARTNER ASSUMPTIONS: Fitness Partner would bring over half
the anticipated total membership units to the Rec Center from
their existing membership, accelerating membership revenue in
Year 1. Fitness Partner would retain the equivalent membership
revenue of all members they bring to the Rec Center. Rec Center
& Fitness Partner would have revenue sharing for new fitness
members as well as incentive to Fitness Partner for upgrades of
Fitness members to Overall Facility memberships. To be
negotiated as part of Joint Use Agreement (JUA).
Residents Anticipate attracting more residents compared to Y but losing
some non-residents who may continue at Forest Lake Y.
Non-residents We have the breakdown of the Y members by resident to
compare.
Child Watch Membership Add-On 12,750 15,000 15,750 16,223 16,709 100 drop-ins per week at 50 weeks @$3/drop-in. Will revisit the
business plan for this based on area facilities and develop a
membership add on option. Market range is $1 to $6.50 for drop
in. May consider including Child Watch as part of Family
Membership.
Corporate Membership Programs Explore Opportunities-May depend on accessibility of location to
businesses.
Combined Group/Organizational
membership partnerships
Hotel Guest Membership Program 2,880 3,312 3,478 3,651 3,834 Explore Opportunities with Hampton Inn. Project average of 40
day passes/month @ $6/pass for the Hotel. May be drop in
passes purchased by the hotel. May link to some sponsorship
program.
MEMBERSHIP/DAILY USAGE SUBTOTAL 0 1,181,491 1,385,017 1,454,268 1,525,932 1,601,904
Retail and Vending:
Vending Machine Revenue 1,000 1,150 1,185 1,220 1,257 Vending machines at facility-share of proceeds to facility revenue-
focus on healthy vending systems (see examples)
Food concession No food concession in current facility.
Pro shop/Kiosk sales at front desk 5,000 6,500 6,695 6,896 7,103 Swim/workout accessories, bottled water/sports drinks, energy
bars, and other items sold as a service to members through front
desk kiosk. Line items shows net profit. No added staff to
support. Average $500/month profit in Year 2.
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
RETAIL & VENDING SUBTOTAL 0 6,000 7,650 7,880 8,116 8,359
Retail Lease Revenue No outside lease revenue in current facility. Does not include
Fitness Partner lease. See this in Partnership revenue center.
Food Concessions
Other outsourced sales or space lease
RETAIL LEASE REVENUE SUBTOTAL 0 0 0 0 0 0
Facility Sponsorships and Contributions
Includes cost relieving in-kind donations (VIK)
Sponsorships 0 0 0 0 0 We have not included any "soft" dollars. Potential exists for
some sponsorship revenue within City guidelines and policies.
Advertising 0 0 0 0 0 Fitness Partner may bring some sponsorships to the
program/facility.
Annual Fundraising
Partnerships Opportunity for corporate health programs/program funding and
other partnerships
Grant Support Potential program for membership scholarships or financial aid to
support financial aid to those that cannot afford the full cost of
membership or programs. Nothing factored in but potential
exists.
SPONSORSHIP/CONTRIBUTIONS
SUBTOTAL
0 0 0 0 0 0
Municipal, School District and Other Partnerships To be developed.
School District Annual Use Potential Operating subsidy in exchange of resident rates, etc.
Neighboring Municipalities Potential Operating subsidy in exchange of resident rates, etc.
Health Care Provider
Fitness Partner Lease Payments 75,000 75,000 75,000 75,000 75,000 Lease of Fitness spaces: Will be factored in with membership and
program revenue sharing program to be determined.
Considerably below market rate, but good to have some lease
payment guaranteed as part of overall JUA.
Other Other potential program partners as facility evolves and grows.
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
Rec and Community Center Projections
144
145
146
147
148
149
150
151
152
0 75,000 75,000 75,000 75,000 75,000 No partnership or rental use included in this business model
Miscellaneous Income
Other
MISCELLANEOUS INCOME 0 0 0 0 0 0
GRAND TOTAL-FACILITY REVENUE 0 1,336,903 1,561,440 1,634,173 1,709,872 1,790,042
SCHOOL DISTRICT & OTHER PARTNERSHIPS
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APPENDIX C3b--Program Revenue Hybrid Management Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
A B G H I J K L M
OPTION Existing Facility Hybrid Management Model Membership Scenario #2
NOTES:
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Program Revenue Potential for Pre-Opening Revenue
Partnership: Decreased Revenue Issues to Review
Partnership: Decreased Expenses Potential for Increased Revenue
Partnership: Increased Revenue Potential for Loss of Revenue Revenue from In-house programs
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Education and Community Programming
Lifesaving/Water Safety/Instructor
Courses and Certification.
1,500 2,500 2,575 2,678 2,785 Facility not ideal for lifeguard training but could be joint program
with Community Ed using this facility and function room and high
school pool for deep water certification. Adds another program
for Rec Center.
First Aid/CPR/AED 1,500 2,500 2,575 2,678 2,785 Provide classes for outside groups also.
Community Classes 2,000 4,000 4,120 4,285 4,456 Examples: Computer, Art, Nutrition, Etc.
Sport/Rec Intro Classes 2,000 4,000 4,120 4,285 4,456 May also provide space as needed for Community Ed Classes
Miscellaneous 0 0 0 0
Classes and other programs linked to
Health care providers
0 0 0 0 0 Explore health care program partners within City management or
hybrid models.
COMMUNITY AND EDUCATIONAL
PROGRAMMING SUBTOTAL
0 7,000 13,000 13,390 13,926 14,483
Aquatics Training, Fitness and Therapy Programs
Aquatic Fitness Classes 15,000 25,000 26,000 27,040 28,122 Potential for coordination with Fitness Partner dry-side programs
and community Ed to expand reach of aquatic fitness.
Personal Training-Aquatics 5,000 7,500 7,800 8,112 8,436 Personal training and cross training are rapidly increasing in
aquatics. This is upside potential.
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
Category
ISG Projections
May 10, 2021
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
Senior Programs-independent of
membership
0 0 0 0 0 Significant opportunities with senior living centers and supported
by facility meeting space. May want to engage organizations at
next step in the development process. Coordinate as part of
expansion of existing City Senior Programs.
Aquatic Therapy/Rehab Outsources-showing in facility revenue as rental income
AQUATIC FITNESS SUBTOTAL 0 20,000 32,500 33,800 35,152 36,558
Dry-Side Fitness & Training Programs Fitness Partner retains all class and training program revenue.
Dry-Land Fitness Classes 0 0 0 0 0
Personal Training-Dry-side 0 0 0 0 0 Personal Training is trending higher today. Upside potential.
Senior Programs-independent of
membership
Significant opportunities with senior living centers and supported
by facility meeting space. May want to engage organizations at
next step in the development process. Nothing factored in at this
point. Can also be outsourced as rental space for senior living
centers or other community senior programs.
DRY-SIDE FITNESS SUBTOTAL 0 0 0 0 0 0
Learn to Swim Program Includes all group lessons, kids and adults, private and semi-
private lessons, swim lessons for triathletes, or private stroke
lessons, etc.
See Market Analysis and Projection worksheets-Hybrid Program
Partnership.
Projections are for Community Ed swim lesson partnership but
could also develop swim lesson program with another outside
partner.
Registration Fees-Swim Lesson Program 48,639 65,662 75,511 88,827 93,268 Program partnership assumptions: Increase total participants by
30%. Shift to 80% residences as residency includes both Lino
Lakes and Centennial School District. City/Rec Center retains 25%
of gross revenue.
Group Lessons 0 0 0
Private Lessons 0 0 0 Private Lessons are trending up
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APPENDIX C3b--Program Revenue Hybrid Management Model
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
Semi-Private Lessons 0 0 0
Other Revenue (Grants, Sponsorships)Grant programs supporting community and disadvantaged learn
to swim programs, scholarships and community programs.
School or Community Ed Partnership
Program
Potential for swim lesson partnership with school district-would
require some outside grant funding and transportation. Nothing
included at this point in time. Example: Swim lessons for all 2nd
graders.
LEARN TO SWIM PROGRAM SUBTOTAL 0 48,639 65,662 75,511 88,827 93,268
Camp and Clinic Programs
Kids summer day camps/all sport
activities
45,000 75,000 78,000 81,120 84,365
Dive in Movies 0 0 0
Sport Specific Camps 0 0 0
Other Programs
CAMP/CLINIC PROGRAMS SUBTOTAL 0 45,000 75,000 78,000 81,120 84,365
Aquatic Team Programs
USA Swimming In House Club 0 0 0 0 0 No in-house team. Outside clubs renting time.
Summer Rec Swim Team 0 0 0 0 XX kids @$XXX/summer 6 week season in summer league.
Explore Option-No revenue initially planned.
Masters Masters projected as outside group renting pool space. May
consider an in-house masters or adult organized lap swimming
program at some point in time.
AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0
Sport & Team Programs and Classes Any in-house programs to be determined.
Youth Team Programs Most likely to be outside programs, renting some space. No team
programs factored in, but potential exists.
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APPENDIX C3b--Program Revenue Hybrid Management Model
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16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
84
85
86
87
88
89
90
91
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
Adult Team Programs
Pickle Ball 4,000 6,000 6,240 6,490 6,749 In-House Program: Small scale with current size of gym.
Introductory Sport Classes 2,000 3,000 3,120 3,245 3,375 May coordinate with Community Ed.
Other
SPORT TEAM PROGRAM SUBTOTAL 0 6,000 9,000 9,360 9,734 10,124
Program Specific Sponsorships and Contributions No "Soft" revenue factored in at this point, but anticipate some
revenue, especially in grant support for outreach and program
user subsidies and scholarships. Anticipate that Fitness Program
partner may have some sponsorship to bring to the Rec Center.
Sponsorships In support of Specific Programs
Advertising In support of Specific Programs
Annual Fundraising Annual Fundraising in support of specific programs.
Partnerships Opportunity for corporate health programs/program funding and
other partnerships
Grant Support Scholarship Programs and other grant support for programs
SPONSORSHIP/CONTRIBUTIONS
SUBTOTAL
0 0 0 0 0 0
Miscellaneous Income
Other
MISCELLANEOUS INCOME 0 0 0 0 0 0
GRAND TOTAL-PROGRAM REVENUE 0 126,639 195,162 210,061 228,759 238,797
4 of 4 6/1/2021
APPENDIX C3c Operational Expenses Hybrid Management Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
51
52
53
54
A B G H I J K L M
OPTION Existing Facility Hybrid Management Model Membership Scenario #2
NOTES:
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with some programs possibly outsourced.
Operational Expenses
Factored in potential future $15/hour state minimum
wage.
Partnership: Decreased Revenue Issues to Review Annual Utility and Misc. Expenses increases at 3%
Partnership: Decreased Expenses Partnership: Increased Expenses Potential for Increased Costs Salary and Wages increase at 5% annually
Partnership: Increased Revenue Potential to Reduce Costs Specific Pre-Opening One Time Costs
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Utilities
25 yard lap pool
(75' x 36') 2,700 Square Feet
Based on 104,000 Gallons-3'5" deep to 5'' deep.
6 hour turnover rate. Flow Rate = 288 GPM. These
estimates are for the existing sand filters and equipment as
is.
Electric 6,000 6,180 6,365 6,556 6,753 Just pool water circulation
Water/Sewer 3,500 3,605 3,713 3,825 3,939 Does not include initial pool fill.
Gas (Heat/Cool)6,000 6,180 6,365 6,556 6,753 Just Pool
Chemicals 0 0 0 0 In Equipment and Supplies
UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool
Maintenance
Program/Leisure Pool (60' x 36')
2,160 Square Feet
Based on 29,000 Gallons-Zero depth to 4' deep. 6
hour turnover rate. Flow Rate = 241. These estimates are
for the existing Sand Filters.
Electric 5,000 5,150 5,305 5,464 5,628 Just the pool water circulation
Water/Sewer 3,000 3,090 3,183 3,278 3,377 Does not include initial pool fill.
Gas (Heat/Cool)4,000 4,120 4,244 4,371 4,502 Just the pool
Chemicals 0 0 0 0 In Equipment and Supplies
UV Light 0 0 0 0 Annual Maintenance and Bulb Replacement in Pool
Maintenance.
Pool Room Space Pool Room Space: 8,859 sq ft. @ $3.25/sq ft =$28,792
Electric 16,000 16,480 16,974 17,484 18,008 All Pool Room Space included.
Water/Sewer 792 816 840 865 891
Gas (Heat/Cool)14,000 14,420 14,853 15,298 15,757
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
Category
ISG Projections
May 10, 2021
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
87
88
89
90
91
92
99
100
101
102
103
Common and Support Spaces 11,661 sf @$3.00/sf = $34,983
Electric 20,000 20,600 21,218 21,855 22,510 Includes Locker rooms, Lobby, Offices, etc.
Water/Sewer 3,983 4,102 4,226 4,352 4,483
Gas (Heat/Cool)15,500 15,965 16,444 16,937 17,445
Gym Space 4,566 sf @$2.50/sf = $11,415
Electric 5,500 5,665 5,835 6,010 6,190
Water/Sewer 415 427 440 453 467
Gas (Heat/Cool)5,500 5,665 5,835 6,010 6,190
Fitness Center Spaces Includes all fitness workout and supporting spaces. 7,658 sf
@ $3.00/square foot. = $22,974
Electric 15,000 15,450 15,914 16,391 16,883
Water/Sewer 474 488 503 518 533
Gas (Heat/Cool)11,250 11,588 11,935 12,293 12,662
0 0 0 0
0 0 0 0
Building Mechanicals and Operations 1,887 sq ft-average cost approx. $2.50 = $4,717
Electric 2,000 2,060 2,122 2,185 2,251
Water/Sewer 717 739 761 783 807
Gas (Heat/Cool)2,000 2,060 2,122 2,185 2,251
0 0 0 0
0 0 0 0
UTILITIES SUBTOTAL 9,000 140,631 144,850 149,195 153,671 158,281 Approximately $3.35/sf. Current Y is $3.30/sf. Year Zero
is total of estimated monthly costs while closed: roughly $
3,139/month assuming 4 months prior to full opening with
expenses for 3 months of use as COVID Vaccination center
factored out. This cost may increase as other costs are
factored in. Expenses through June 30, 2021 are covered
by State of Minnesota for use as COVID Vaccine site.
Lower energy use in warmer months when closed.
Maintenance Some of these services can be outside contracted services
Pool Maintenance 0 0 0 Anticipate Maintenance costs increasing as equipment ages
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
104
105
106
108
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
133
134
135
136
137
S&E Pool Mechanical 4,000 4,120 4,244 4,371 4,502
UV System Maintenance and Bulb
Replacement
0 0 0
25 yard Lap Pool 5,000 5,150 5,305 5,464 5,628
Program Pool 3,000 3,090 3,183 3,278 3,377
Building Repairs & Maintenance 10,000 10,300 10,609 10,927 11,255
Building Grounds, Maint, Plowing 20,000 20,600 21,218 21,855 22,510 Provided by City Maintenance team, but additional costs
factored into Rec Center Budget
Replacement and Maintenance Accrual
Fund
Showing in gross expenses below.
Equipment Repairs 1,000 1,030 1,061 1,093 1,126 Includes fitness equipment repair. Decrease based on
Fitness Partner maintaining fitness equipment
Pre-Opening: Pool 6,000
Pre-Opening: Cleaning 6,000 First Floor cleaned by State as part of Vaccination Center
rental.
Pre-Opening: Maintenance 3,000 Contingency
Pool Refill-Water and chemicals 4,000 7,000 Both Pools-On a 5-year drain and fill cycle
MAINTENANCE SUBTOTAL 19,000 43,000 44,290 45,619 46,987 55,397
Equipment & Supplies Includes start up supplies and any equipment not included
in Capital Costs and FF&E (Furniture, Fixtures, &
Equipment). Specific program equipment showing in
Program Expenses.
Office Supplies 3,000 3,090 3,183 3,278 3,377
First Aid/Safety 2,000 2,060 2,122 2,185 2,251
Maintenance/Repair/Materials 3,000 3,090 3,183 3,278 3,377
Custodial Supplies 30,000 30,900 31,827 32,782 33,765 YMCA was on the high side on this. Anticipate some savings
with overall City purchase contracts.
Pool Chemicals 0 0 0 0
Lap Pool 5,000 5,150 5,305 5,464 5,628
Program/Leisure Pool 2,000 2,060 2,122 2,185 2,251
Pre-Opening Re-branded Building
Signage
16,000
Pre-Opening Pool Equipment 26,149
Pool Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual
replacements
Pre-Opening Sport Equipment 7,940 Includes equipment needed for opening and then annual
replacements. Includes Gym Equipment
Sport Equipment 2,000 2,060 2,122 2,185 2,251 Includes equipment needed for opening and then annual
replacements. Includes Gym Equipment
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16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
Pre-Opening Fitness Equipment
Purchases
15,000 $15,000 in equipment already purchased. Already
purchased from Y by City. Fitness Partner brings all their
own equipment reducing cost to City.
Fitness Equipment Purchases 0 3,000 3,090 3,183 3,278
Fitness Equipment Leasing 0 0 0 0 0 0 Fitness Partner assumes all expenses for equipment.
Move and Set up Fitness Equipment,
Flooring, etc.
15,000 Moving and set up of Fitness Partner Equipment-shared
costs.
Recreational Supplies 2,000 2,060 2,122 2,185 2,251
Uniforms 3,000 3,090 3,183 3,278 3,377 May be offset by equipment/apparel sponsorships
Printing & Postage 1,000 1,030 1,061 1,093 1,126
Pre-Opening General Supplies and
Equipment
48,000 Includes Start Up for Camp Equipment, Child Watch/Kids
Stuff Equipment
General Supplies and Equipment 0 5,000 5,150 5,305 5,464 5,628
Pre-Opening Building General Supplies,
Equipment and FF&E Contingency
65,425 Includes Start Up for Custodial Equipment, Copier, Printers,
Camp Equipment, Child Watch/Kids Stuff Equipment
Building General Supplies, Equipment
and FF&E Contingency
5,000 5,150 5,305 5,464 5,628
Pre-Opening Management Program
Equipment
17,000 Includes Card Access/Membership System Management
Equipment and Software
Management Program Equipment 2,000 2,060 2,122 2,185 2,251 Updates, maintenance, and upgrades to systems
EQUIPMENT & SUPPLIES SUBTOTAL 210,514 67,000 72,010 74,170 76,395 78,687
Staff Costs: Salaries & Wages Year Zero includes staffing needed prior to opening of
facility and not included in project capital costs and
training of part-time staff. Using 5% annual escalation to
account for COLA and step increases.
Full-Time Staff Need to review proper job title hierarchy with the City
structure. City HR Director reviewing positions, grades,
and titles.
Facility Director 37,500 90,000 94,500 99,225 104,186 109,396 1.0 FTE Start position 5 months prior to opening. Review
based on market rate and City grade levels.
Program Manager 16,250 65,000 68,250 71,663 75,246 79,008 1/0 FTE Start position 3 months prior to opening.
Aquatic Supervisor 0 0 0 0 0 0 This position can be combined with Program Manager
position since Community Ed would provide management of
the Swim Lesson program.
Membership/Customer Service
Manager
13,750 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3 months prior to opening.
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
Front Desk Coordinator 3,333 40,000 42,000 44,100 46,305 48,620 1.0 FTE Start 1 months prior to opening. May just be part-
time. Fitness Partner will provide front desk part-time staff
but City will have the overall front desk supervisory
responsibilities.
Fitness Supervisor 0 0 0 0 0 0 Fitness Partner provides this position.
Maintenance/Operations Manager 19,250 77,000 80,850 84,893 89,137 93,594 1.0 FTE Start 3 months prior to opening. CPO trained and
certified.
Administrative, Accounting, HR 9,500 55,000 57,750 60,638 63,669 66,853 1.0 FTE Start 3-4 months prior to opening. -Reviewing with
City HR and operations to determine need or add on costs
for existing City Staff. Is this covered in the City Admin
share costs? May be able to reduce this position since
Fitness Partner and Community Ed will manage all of their
instructors and staff.
Custodial & Bldg. Maint. Staff 9,375 112,500 118,125 124,031 130,233 136,744 2.5 FTE Start 1 Months prior to opening following deep
cleaning. Should this be in part-time? What should the
base annual salary/rate by for these positions? We used
$45,000 in this model.
FULL-TIME STAFF SUBTOTAL 108,958 494,500 519,225 545,186 572,446 601,068
Part-Time Staff Currently using 4% as annual escalation. All Part-Time
positions are <30 hours/week. Assuming $15 minimum
hourly wage in near future.
Front Desk/Access Control 3,000 46,800 49,140 51,597 54,177 56,886 1.5 FTE, 60 hrs./week @ $15.00/hr. - $46,800
Fitness Attendants 0 0 0 0 0 0 Fitness Partner covers these positions.
Gym Monitors 2,000 31,200 32,760 34,398 36,118 37,924 1 FTE, 40 hrs./week @ $15.00/ hr.- $31,200
Head Lifeguard 2,000 18,720 19,656 20,639 21,671 22,754 .5 FTE, 20 hrs./week @ $18.00/hr. - $18,720. Should be
CPO certified.
Lifeguards 2,000 93,600 98,280 103,194 108,354 113,771 3 FTE, 120 hrs./week @ $15.00/hr.- $93,600
Custodial Part-Time 2,500 95,680 100,464 105,487 110,762 116,300 2 FTE for part-time custodial @$23/hour. Is this an hourly
wage in line with current City custodial part-time staff?
Child watch 2,000 62,400 65,520 68,796 72,236 75,848 2 FTE, 80 hrs./week @ $15.00/hr.- $62,400. Revenue does
not come close to supporting costs of program, but it is an
important membership benefit/service. Year Zero is
training.
Program Instructors and Staff In program Expenses
Camp Staff In program Expenses
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
185
186
187
188
189
190
191
192
193
194
195
196
198
199
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
Other
Clerical/Administrative Support In Full Time Staff
Event Staff costs All extraordinary event staff costs are paid separately by
event renter/host or included in event expenses as a pass
through.
PART-TIME STAFF SUBTOTAL 13,500 348,400 365,820 384,111 403,317 423,482
Staff Benefits and Payroll Taxes Confirm benefit & payroll tax calculations. HR reviewing.
Full Time
Benefits & Payroll Taxes 43,583 197,800 207,690 218,075 228,978 240,427 Roughly average 40%-will need to calculate exactly.
Part Time
Benefits & Payroll Taxes 2,700 69,680 73,164 76,822 80,663 84,696 Calculated at 20% to cover FICA, PERA, Workers Comp, etc.
BENEFITS & PAYROLL TAXES
SUBTOTAL 46,283 267,480 280,854 294,897 309,642 325,124
STAFF SALARIES, WAGES & BENEFITS
GRAND TOTAL
168,741 1,110,380 1,165,899 1,224,194 1,285,404 1,349,674
Staff Costs: Other NOTE: Outside services linked to funding, fundraising,
design, etc. included in capital costs, not operating
budget.
Staff Development and Training 1,000 1,250 1,281 1,313 1,346 1,380 Can be managed by management staff. Program partners
fund staff training. Reducing costs by 50%.
Conferences 1,000 1,025 1,051 1,077 1,104
Staff Certifications & Licenses 500 1,000 1,025 1,051 1,077 1,104
Staff Travel 1,000 1,025 1,051 1,077 1,104
Dues/Subscriptions 500 500 513 525 538 552
STAFF COSTS-OTHER 2,000 4,750 4,869 4,990 5,115 5,243
Outside (contract) Services
6 of 9 6/1/2021
APPENDIX C3c Operational Expenses Hybrid Management Model
15
16
17
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
Accounting Services Included in Full Time Staff
PR/Media Initially combined with Marketing.
Marketing 6,000 4,000 3,000 3,000 Includes consultant fees. Can reduce after Year One and
phase out. Marketing costs reduced based on existing
marketing and new marketing provided by program
partners.
Building Rebranding Development 4,000 Consulting on branding of Rec/Community Center. Can be
combined with marketing and PR services also.
IT/Computer Support Included in City Admin allocated expenses.
Human Resources Anticipate handling in-house. Partners to handle HR for
their staff and instructors.
Testing Services TBD
Custodial Outsourcing Currently showing in staff costs
Maintenance Outsourcing Currently showing in staff costs
Landscape Maintenance In Maintenance
Operations/Mgmt. Consultant N/A
Other
Trash Service 1,000 6,000 6,150 6,335 6,525 6,720
Membership Upgrade Incentive to
Fitness Partner
54,831 64,506 67,732 71,118 74,674 Based on incentive for conversion of Fitness Members to
Overall Members and increased memberships driven to Rec
Center. Would develop specific metrics as part of JUA. This
line item is an initial estimate. Estimated at 5% of Overall
Facility membership revenue.
Contract Services 0 0 0 TBD
OUTSIDE SERVICES SUBTOTAL 11,000 64,831 73,656 77,066 77,643 81,395
General Office Costs
Phone/Media Service 0 3,000 3,100 3,200 3,300 3,400
Technology/IT Support 3,000 3,100 3,200 3,300 3,400
Scholarship and Membership Financial
Aid
15,000 20,000 20,000 20,000 20,000 Allocation to support financial aid for residents not able to
afford full cost of facility use and programs. Likely part of
this expense can be offset by grant funding. At this point no
grant support or other charitable support of financial aid is
factored in to budget. Partners to also include some
scholarship program in programs they run as part of their
commitment.
Postage 1,500 1,500 1,500 1,500 1,500 1,500 General marketing mailing
7 of 9 6/1/2021
APPENDIX C3c Operational Expenses Hybrid Management Model
15
16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
Marketing and Promo Materials 6,000 5,000 4,000 4,000 4,000 4,000 Marketing support for overall facility. Includes brochure,
post cards, and other collateral materials. Additional
marketing funds are also included in specific programs
under program expenses. Important to incorporate into
advance marketing. Some program specific marketing is
listed in Program Expenses line items for the specific
program. Some reduction in this line item based on
marketing materials provided by Program Partners.
Advertising 2,000 2,000 2,000 2,000 2,000 2,000 Slight reduction in expenses more than made up by
Program Partner advertising.
Fees-Registration/CC/On-Line 47,260 55,401 58,171 61,037 64,076 Calculated at 4% of 100% of membership revenue using on-
line registration and credit card processing. Program
Registration & CC Fees show in Program Expenses. This is
Maximum projected expenses and some savings are likely.
May be some decrease depending integration of
membership registration systems.
Bank Charges Are there any other bank charges
Legal Fees 5,000 5,000 5,000 5,000 5,000 Budgeted retainer.
GENERAL OFFICE SUBTOTAL 9,500 81,760 94,101 97,071 100,137 103,376
Insurance
Insurance:5,000 10,000 10,300 10,609 10,927 11,255 City working on getting insurance quote.
Insurance: Property Do you want the insurance broken down by category?
Insurance: Liability
Insurance: Other
INSURANCE SUBTOTAL 5,000 10,000 10,300 10,609 10,927 11,255
Miscellaneous
Other Expenses
Expense Contingency 2,500 10,000 7,500 5,000 5,000 5,000 Contingency decreases as history provides better budgeting
info.
MISCELLANEOUS SUBTOTAL 2,500 10,000 7,500 5,000 5,000 5,000
TOTAL-OPERATING EXPENSES 437,255 1,532,351 1,617,475 1,687,915 1,761,280 1,848,308
8 of 9 6/1/2021
APPENDIX C3c Operational Expenses Hybrid Management Model
15
16
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A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
273
274
275
276
277
278
279
280
281
282
283
284
285
GROSS OPERATING EXPENSES-Additional Support long term capital replacement, maintenance, and
growth. Target is $440,000 by Year 10 and $1,000,000 by
Year 20.
Facility Reserve How do you want to show or account for this.
Initial Funding of Reserve
Annual Reserve Replacement Funding -$ -$ 60,000$ 70,000$ 80,000$ 82,400$ Capital Replacement and Maintenance Reserve Fund. See
cumulative calculations in P & L Statement. After Year 3
reserve increases by 3% annually.
City Charge Backs (Administrative Overhead)
City Support/Admin Charge Backs 150,000 157,500 165,375 173,644 182,326 The share of City Overhead charged to Rec Center.
Increasing 5%/year per City. Potential reduce
administration allocation based on fewer employees a
reduced management load.
Additional Gross Operating Expenses 0 150,000 217,500 235,375 253,644 264,726
TOTAL GROSS EXPENSES 437,255 1,682,351 1,834,975 1,923,290 2,014,924 2,113,034
9 of 9 6/1/2021
APPENDIX C3d Program Expenses Hybrid Management Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
A B G H I J K L M
OPTION Existing Facility Hybrid Management Model Membership Scenario #2
NOTES:
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Program Expenses
Program related expenses not included in annual operating pool staff and expenses
Partnership: Decreased Revenue Issues to Review
Partnership: Decresed Expenses Potential for Increased Costs
Partnership: Increaed Revenue Potential to Reduce Costs
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 Comments
Education and Community Programming
Program Director 0 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses.
Instructors 2,100 3,900 4,017 4,178 4,345 Hourly-Instructor fees increase at rate equal
to increase in program gross revenue-
Instructor wages average 30% of gross
program fees.
Payroll Expenses/benefits/taxes 0 420 780 803 836 869 Assume part-time instructors. Calculated at
20% of wages to cover PERA, FICA,
Workman's comp, etc.
Travel, Staff Development Staff development and Training in
Operational Expenses.
Marketing and Promo Materials
Other Program Expenses 500 500 500 500 500
Postage
Fees-Registration/CC/On-Line 280 520 536 557 579 Showing in Operational Expenses-Bank
Charges
Lino Lakes Recreation and Community Center
Category
Financial Forecast Pre-Opening Year Through Year 5
ISG Projections
Program Expenses increase by 3% after Year
2.
May 10, 2021
1 of 5 6/1/2021
APPENDIX C3d Program Expenses Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
27
28
29
30
31
32
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
COMMUNITY EDUCATIONAL
SUBTOTAL
0 3,300 5,700 5,856 6,070 6,293
Aquatic Training, Fitness and Therapy Programs Will coordinate some aquatic fitness with
Fitness Partner and Aquatic Partner. Savings
TBD
Fitness Program Director 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses.
Instructors-Classes 6,000 9,750 10,140 10,546 10,967 Hourly Wages calculated as 30% of class fee
revenue
Payroll Expenses/benefits/taxes 1,200 1,950 2,028 2,109 2,193 Assume part-time instructors
Travel, Staff Development Staff development and Training
Marketing and Promo Materials
Other Program Expenses 1,000 1,000 1,000 1,000 1,000
Postage
Fees-Registration/CC/On-Line 800 1,300 1,352 1,406 1,462 Showing in Operational Expenses-Bank
Charges
AQUATIC FITNESS SUBTOTAL 0 9,000 14,000 14,520 15,061 15,623
Dry-Side Fitness Fitness Costs and Staff covered by Fitness
Partner.
Fitness Program Director Program management and supervision in full-
time staff in Operational Expenses.
Instructors 0 0 0 0 0 Hourly Wages calculated as 35% of class fee
revenue
Personal Training Instructors 0 0 0 0 0 Hourly Wages calculated as 35% of class fee
revenue. Personal Training is growing.
Payroll Expenses/benefits/taxes 0 0 0 0 0 0 Assume part-time instructors: Both City
employees and independent contractors.
Travel, Staff Development Staff development and Training
Marketing and Promo Materials
Other Program Expenses 1,000 1,000 1,000 1,000 1,000 Miscellaneous Expense
2 of 5 6/1/2021
APPENDIX C3d Program Expenses Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
Postage
Fees-Registration/CC/On-Line 0 0 0 0 0
DRY-SIDE FITNESS SUBTOTAL 0 1,000 1,000 1,000 1,000 1,000
Learn to Swim Program Costs Aquatic Partner to cover all Learn to Swim
Program Expenses and Staff.
Learn to Swim Program Director 0 0 0 0 0
Learn to Swim Instructors Hourly, $18/hr.-Year 0 is training. Instructors
= approximately 28% of gross lesson
revenue.
Payroll Expenses/benefits/taxes 0 0 0 0 0 0 Assume part-time instructors
Travel, Staff Development Staff development and Training
Marketing and Promo Materials 1,000 1,000 1,000 1,000 1,000 Still include some Rec Center marketing and
promo materials.
Other Program Expenses 0 0 0 0 0
Postage
Fees-Registration/CC/On-Line Anticipate registration through Aquatic
Partner.
Scholarships 3,750 3,750 3,750 3,750 3,750 Split between City and Aquatic Partner. This
line item reflects 50% of total budget.
LEARN TO SWIM PROGRAM SUBTOTAL 0 4,750 4,750 4,750 4,750 4,750
Camp and Clinic Programs
Camp Director 0 0 0 0 0 Program management and supervision in full-
time staff in Operational Expenses.
All Camp Staff 14,400 24,000 24,960 25,958 26,997 Wages calculated at 32% of gross revenue
Payroll Expenses/benefits/taxes 0 2,880 4,800 4,992 5,192 5,399
Marketing and Promo Materials May include some advertising and direct mail
campaign
Other Program Expenses
3 of 5 6/1/2021
APPENDIX C3d Program Expenses Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
Postage
Fees-Registration/CC/On-Line 1,800 3,000 3,120 3,245 3,375 Showing in Operational Expenses-Bank
Charges
Other Camp Expenses 2,000 2,300 2,484 2,608 2,739 Outfitting/Specific Equipment/Audio visual,
etc.
CAMP and CLINIC SUBTOTAL 0 21,080 34,100 35,556 37,003 38,509
Aquatic Team Programs
US Masters Swimming Team Exploring as in-house or outsourced rental
program.
Coach Travel and Entertainment
Other Swim Team Expenses
Fees-Registration/CC/On-Line
Marketing and Promo Materials
Payroll Expenses/benefits/taxes
Masters Team Subtotal 0 0 0 0 0 0
Summer Recreation Swim Team Potential for summer rec team as program
grows-nothing factored in at this point.
Coaches Payroll 0 0 0 0 0 Part time coaches-wage based on XX% of
total team revenue.
Coach Travel and Entertainment
Other Swim Team Expenses 0 0 0 0
Fees-Registration/CC/On-Line Showing in Operational Expenses-Bank
Charges
Marketing and Promo Materials
Payroll Expenses/benefits/taxes 0 0 0 0 0 0 No benefits
Summer Rec Team Subtotal 0 0 0 0 0 0
AQUATIC TEAMS SUBTOTAL 0 0 0 0 0 0
4 of 5 6/1/2021
APPENDIX C3d Program Expenses Hybrid Management Model
16
17
18
A B G H I J K L M
Year Zero*Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
156
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
Scholarship and Student Support
Expenses related to all programs 5,000 5,000 5,000 5,000 5,000 All Programs except learn to swim which has
its own financial aid budget.
SCHOLARSHIP & SUPPORT SUBTOTAL 0 5,000 5,000 5,000 5,000 5,000
Miscellaneous
Expense Contingency 3,750 3,000 2,500 2,500 2,500 Expense Contingency. ISG like to include a
miscellaneous contingency. Contingency
decreases each year as history better guides
budgeting. Partnerships reduce expense
contingency. Reduced by 50%.
MISCELLANEOUS SUBTOTAL 0 3,750 3,000 2,500 2,500 2,500
TOTAL-PROGRAM EXPENSES 0 47,880 67,550 69,182 71,384 73,676
Program Staff Wages & Benefits Subtotal 0 27,000 45,180 46,940 48,818 50,771
5 of 5 6/1/2021
APPENDIX C3e--Program Net Revenue Hybrid Management Model
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
A B G H I J K M
OPTION Existing Facility Hybrid Management Model Membership Scenario #2
NOTES:
Hybrid Management/Program model includes a Fitness Program Partner and Centennial Community Ed Swim Lesson/Aquatic Partnership
*Year Zero is the period facility is closed prior to reopening under City or outside management. Includes costs to re-open facility
Initially assumes management by City with many programs outsourced.
Net Program Revenue
Partnership: Decreased Revenue Issues to Review
Partnership: Decresed Expenses Potential for Increased Revenue
Partnership: Increaed Revenue Potential for Loss of Revenue
Year 1 Year 2 Year 3 Year 4 Year 5 Comments
PROGRAM EXPENSES 47,880 67,550 69,182 71,384 73,676
PROGRAM INCOME 126,639 195,162 210,061 228,759 238,797
NET PROGRAM REVENUE (DEFICIT)78,759 127,612 140,879 157,374 165,121
PROGRAM BREAKDOWN
Community Education Programming
Expenses 3,300 5,700 5,856 6,070 6,293
Revenue 7,000 13,000 13,390 13,926 14,483
Net Revenue (Deficit)3,700 7,300 7,534 7,855 8,190
Profit Margin 53%56%56%56%57%
Aquatic Fitness and Training Programs
Expenses 9,000 14,000 14,520 15,061 15,623
Revenue 20,000 32,500 33,800 35,152 36,558
Net Revenue (Deficit)11,000 18,500 19,280 20,091 20,935
Profit Margin 55%57%57%57%57%
Category
Lino Lakes Recreation and Community Center
Financial Forecast Pre-Opening Year Through Year 5
ISG Projections
May 10, 2021
1 of 2 6/1/2021
APPENDIX C3e--Program Net Revenue Hybrid Management Model
15
16
17
A B G H I J K M
Year 1 Year 2 Year 3 Year 4 Year 5 CommentsCategory
ISG Projections
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
74
75
76
77
78
Dry-Side Fitness and Therapy Programs Managed by Outside Fitness Partner
Expenses 1,000 1,000 1,000 1,000 1,000
Revenue 0 0 0 0 0
Net Revenue (Deficit)(1,000)(1,000)(1,000)(1,000)(1,000)
Profit Margin #DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
Learn to Swim Programs
Expenses 4,750 4,750 4,750 4,750 4,750 Includes funding of scholarships
Revenue 48,639 65,662 75,511 88,827 93,268 Includes grant for scholarships
Net Revenue (Deficit)43,889 60,912 70,761 84,077 88,518
Profit Margin 90%93%94%95%95%
Camp and Clinic Programs
Expenses 21,080 34,100 35,556 37,003 38,509
Revenue 45,000 75,000 78,000 81,120 84,365
Net Revenue (Deficit)23,920 40,900 42,444 44,117 45,856
Profit Margin 53%55%54%54%54%
Summer Rec Swim Team
Expenses 0 0 0 0 0
Revenue 0 0 0 0 0
Net Revenue (Deficit)0 0 0 0 0
Profit Margin #DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
2 of 2 6/1/2021
Page 1 of 3
APPENDIX D
POOLS OPERATIONAL and MECHANICAL SYSTEMS
This ISG Study Report for Lino Lakes includes some operational and mechanical considerations
below for the City. Below you will see the operational systems that should be considered at
some point in this entire process.
The state of the art equipment and systems considerations are based on the following criteria:
Energy efficiency
Low annual operation costs
o Savings on electric, natural gas, chemicals, and water
o Less staff operational time
Low long term maintenance
Short payback period for premium equipment costs
Extended lifespan
Minimal water usage
Minimize environmental impact
Minimal impact on programming and pool down time due to regular maintenance
This technology includes:
Regenerative Media Filters:
o Reducing water consumption and waste water by through significantly reduced
need to backwash filters and add for replacement water.
Approximately a 80% to 90% savings in water use related to traditional
backwashing with high rate sand filters
o Reducing electrical, natural gas, and chemical use through 80% to 90% less
replacement water to heat and treat.
o Filters down to particles one micron in size compared to 15 to 30 microns in
traditional high rate sand filters in the existing pool facilities
o Reduces space needed in pool pump room for filter systems by approximately
30%
o Reduces time needed by staff to operate and maintain
o The cost of replacement of the existing Sand Filters is estimated at $85,000 to
$95,000
The estimated operational cost savings of the Regenerative Media Filers
for both pools together is:
Electric: $7,000/year
Water: $5,000/year
Gas: $2000/year
Chemicals $1,000/year
UV water purification system
o The existing YMCA Aquatic Facility is equipped with the UV water purification
system
Page 2 of 3
Variable Frequency Drives (VFDs)
o Controls the pump output power and electrical draw based on filter and
circulation needs and demand
o Reduces pump electrical use by 20% to 25%
o NOTE: Some Utility companies are providing grants or incentive credits for
installing VFDs.
State of the art chemical and pool controllers (linked via web access for off-site
monitoring and smart control)
o Provides more consistent and accurate control of pool systems, chemical levels,
water levels, and temperatures
o Provides direct alerts to pool operators and management of any problems in order
to identify and address problems in a more timely fashion
o The existing Lino Lakes Pool Facilities does have currently good Pool
Controllers, although the Pool Controller technology does improve each year
High efficiency pool heaters
HVAC Technology
LED lighting
o Including zone and intensity controls to manage light levels based on time of day,
usage, and specific event needs
o NOTE: Grants sometimes are available for converting buildings to LED lights.
At this time in the ISG facility analysis, ISG is not recommending any changes to the Aquatic
Facility operating equipment since the existing equipment is in good shape and has been well
cared for. ISG is only recommending that the City understand the various options that would
exist for the Aquatic Facility in the future as the existing equipment grows older, out of date or
falters in any way. The cost savings for new upgraded modern technology is significant,
however, at this time in the process the pay back period would be too long to make it reasonable.
When the systems reach the end of their life cycle, then the pay back would make it reasonable
to consider the new technology options available.
Examples of State of the Art Pool Mechanical Systems
Regenerative Media Filters UV Purification System
(Neptune Benson Defenders)
Page 3 of 3
Variable Frequency Drives Web-based Chemical/Pool Controller
YMCA/Recreation Center Analysis
Report Summary
June 7, 2021
1
The Study Team
•Project Leader:Duane Proell ISG
–Programming, Management and Operations
–Evaluation of Existing YMCA Facility
–Opening and Operating Cost Analysis
•Stu Isaac, President, ISG
–Program Business Model
–Market Research
–Business Development and Revenue Models
2
Study Process and Methodology
•Regular Meetings with City Staff
•Individual interviews with City Council
•Walk through inspection of current YMCA facility
•Review and analysis of YMCA program, operating budget, membership
data and equipment and furnishings
•Review and market analysis of programs, facilities, membership and
program fees at comparable public and private facilities in the area
•Interviews with key stakeholders, potential partners, program
providers, Centennial School District, YMCA “Reimagining” committee,
outside user groups
•Exploration and interviews with service, equipment, and program
providers
•Staffing, Budgeting, and Management Reviews with City Management
3
Goals & Opportunities for the Rec Center
•How can the Rec Center develop expanded community programming
that integrate and enhance existing City and local organization
community programming?
•How can a Lino Lakes Rec Center better serve the residents of Lino Lakes?
•How can the Rec Center differentiate itself from the old Y and other
YMCAs and facilities in the area?
•What can the Rec Center do or provide what the YMCA could not?
•How can the Rec Center create unique or “signature” programs and
enhancements not readily available in the market?
•Support future economic development in Lino Lakes: Enhancing lifestyle
benefits and encouraging local business and residential growth
4
Vision
Lino Lakes Recreation & Community Center
•Provide community classes, activities, and services to augment the recreation, sport,
and leisure activities of the Rec Center
•A facility that is relevant to all Lino Lakes constituencies: A Community Hub
•A community friendly membership model
•Enhanced community classes and programs, linked to existing City programs and
creating new and enhanced programs
–Immediate opportunities
–Future potential for expanded opportunities
•Senior Programming
–Wide range of fitness programs, intensity levels, and classes
–Part-time employment and volunteerism
–Partnerships or joint programs with neighboring senior living centers
–Intergenerational opportunities
•Re-visit potential community partners
–School Districts and Community Education
–Area Health Care providers: Wellness, Fitness, Aquatic Therapy/Rehab, etc.
–Other?9
Programming
6
Rec & Community Center Programming
Immediate Program Initiatives
•Introduction in new and enhanced programming in Fitness and Aquatics
•Expanded senior and older adult programs
–Coordinate with existing City programs
•Optimize schedule options and flexibility: Concurrent Programing
•Expand Special Needs and Adaptive PE/Recreation programs
•Increase cooperative or partnership programming resources
•Programming opportunities in current spaces
Long Term Growth and Expansion
•Sports Center: Court Facility
•“Outdoor” Activity Center
•Expanded Community meeting, function and program space
7
Older Active Adults & Seniors
8
Fitness
9
Aquatics
10
Therapy, Rehab, and Special Needs
Programming
11
Learn to Swim
Water Safety
12
Rec Center Schedule Model
13
Potential Program Outsourcing
•Finding the right program partners
–Identify program providers that captured former YMCA users when Y
closed?
–Providers that offer more robust and diverse program offerings than Y
–Market service area:
•Do they already draw from Lino Lakes population?
•Can they expand the market service area of the existing Y?
–Rates and Fees in line with City membership and use affordability goals
•Can provide resident discount
–Consolidate potential program competition in local market
14
Outsourced Programming-Opportunities
Swim Lesson Program with Centennial School District Community Ed
•Instructor/management/marketing structure in place
–Community Ed to provide instructors and management
•Optimize the swim lesson friendly Rec Center pools
•Existing Student base
•Minimize competition
Fitness Program Provider
•Introduction in new and enhanced programming in Fitness and Aquatics
•Provide all fitness equipment, flooring, etc.
•Provide Instructors, management, and monitoring staff
•Existing membership and user base: Accelerate revenue and growth
•Existing marketing platforms
•Significant upfront and start-up cost savings 15
Membership Model
•Analyzed three resident membership rate scenarios compared to YMCA
rates
–75% of Y rates
–60% of Y rates
–50% of Y rates
•Recommended Resident rates
–60% of equivalent YMCA Membership rates
•Non-resident rates is approximately a 20% premium
–Comparable to area and regional community recreation center facilities
–“Sweet Spot” balancing affordability and revenue generation
•Overall Facility and Fitness Only membership categories
–“I don’t want to pay for what I won’t be using”
•Drop -in day and multiple visit pass use options
•Wider range of membership categories: Seniors, couples, military
•Discount for annual membership (approximately 11 month equivalent)
16
Recommended Membership and User Fees
(Resident Rates-60% of YMCA Rates)
Membership
Category
Monthly
Overall/Fitness
Only
Annual Drop -In Daily 10-Visit Pass
Adult $42/$36 $462/$393 $7 $60
Adult Couple $63/$54 $695/$590 NA NA
Senior $26/$22 $285/$242 $5 $42
Senior Couple $39/$33 $430/$365 NA NA
Youth $26/$22 $285/$242 $5 $5
Family $86/$73 $945/$803 $12 NA
Military Adult $36/$31 $395/$335 $6 $6
Military Family $73/$62 $800/$680 NA NA
17Detailed Membership Market Analysis and Projections in Report Appendix
Management
Opening Costs
Financial Operating Analysis
Options and Opportunities
18
Operating and Financial Goals
•A financially sustainable facility
–Revenue to balance operating expenses
•Minimize costs for re-opening
•Explore management options for optimum efficiency
•Identify funding model for future long term expansion and growth
•Explore opportunities for enhanced financial performance
–Reducing operating and long term expenses
–Enhancing revenue streams
–Partner opportunities
19
Management Models
•City Managed
•Total outsourced management organization
•Hybrid options
20
City Managed Facility
•Key elements
–City provides all management and staff
–City provides all programming and program staff
•Some exceptions for specific outsourced programs
–City responsible for all facility and programming costs but retains all revenue
•Pros
–Ensures control of all elements of Rec & Community Center
–Optimum coordination with other City based community programming
–Total control of all membership and program fees
•Cons
–Need for broad expansion of City employees with program expertise, experience,
and skill sets not currently available within City staff
–Likely to incur higher opening costs
–Likely ramp up model in first two years
–Greater risk for City if facility does not meet initial or ongoing financial goals and
projections 21
Outsourced Total Facility Management
•Key elements
–Turn -Key management team runs all membership, usage, programs, scheduling, and staffing
–Management company pays all staff, utilities, regular cleaning and handles marketing and other
normal operating costs
–May include all annual and long term maintenance and replacement
–May require City paid management fee based on profit model for Management Company
•Pros
–Can be faster start up than City managed facility
–May reduce City start up costs if equipment and other costs included in management contract
–Reduces City annual operating deficit risk
–No significant increase in City staff or expenses
•Cons
–Adds another layer of cost to support profit margin that may add City cost
–City may have less control of membership and usage fees
–May reduce accessibility to community groups and other non-revenue generating City program
goals
–For profit management group may not share City vision and goals
–Requires very detailed agreement and understanding of City requirements 22
Hybrid Management Model
•Key elements
–City manages facility operations, maintenance, cleaning
–City manages membership program and back office financial operations
–Some programs provided internally
–Some programs provided and managed by outside providers
•Partnership model will vary by program
–Key program partners
•Aquatics
•Fitness
•Most instructors and program staff are independent contract employees
–Potential Combination of lease and profit share agreements
•Pros
–Can be fastest start up scenario
–Most of necessary staff is already in place, reducing any challenges in finding staff
–Program providers have established user base: Help jump start programs and revenue
–May reduce City start up costs if equipment and other costs included in management contract
–Programs, access, and fee models can be shaped to meet City goals and objectives
•Cons
–Multiple program providers can require strong management organization
23
Re -Opening and Start-Up Costs
(City Management Option)
•Staffing
–Management
–Operations and Management
–Membership/Customer Service
–Part -time staff hiring and training (Lifeguards, instructors, front desk, etc.)
•Program Development
•Facility Cleaning
•Equipment and Furnishings
•Rebranding and Signage
•Pool Start-Up
•Membership/Access/IT Systems
•Membership Drive and Marketing
24
25
Cost Category Projected Cost Comments
Full-Time Management $195,000 Includes benefits & Taxes. See Timeline
Part -time Staff $19,000 Includes training
Facility Cleaning $6,000 To be researched by City Staff
Equipment
Aquatics $26,000 Lane lines, training,safety, cleaning equip
Fitness Purchase $50,000 Includes equipment already purchased
Fitness Lease $9,000
Gym $8,000
Overall Programming $48,000 Child watch,camps, other
Furniture, office and Building $66,000
Marketing & Membership Drive $11,000 Pre-opening drive-help fund start-up
Start-Up (Pools)$6,000 Budget estimate from area provider
Management/IT/Access Systems $17,000 Membership, Wi-Fi, update security, etc.
Re -Branding and Signage $16,000 Signage, way signs, etc.
Other $38,000 Maintenance,Insurance, Office, etc.
GRAND TOTAL $516,000 Details to be further reviews with Staff
Financial Operating Analysis
(City Management & Hybrid Option)
•Membership and Use Fees scenarios
–Market Analysis, Projections
•Swim Lesson Program
–Market Analysis, Projections
•Facility Revenue
•Program Revenue
•Facility Expenses
–Includes City Administrative Allocation
•Program Expenses
•Profit and Loss Summary
•Long Term Capital Replacement and Maintenance projections
P & L Summaries and all Budget Line Item Detail included in Study Report26
Year 3: City Managed vs. Hybrid Model
27
Budget Category City Managed Hybrid Model
Revenue
Facility Revenue $1,854,000 $1,634,000
Program Revenue $445,000 $201,000
REVENUE SUBTOTAL $2,299,000 $1,835,000
Expenses
Operational Expenses $2,036,000 $1,688,000
Program Expenses $206,000 $69,000
EXPENSES SUBTOTAL $2,242,000 $1,757,000
OPERATING NET REVENUE (DEFICIT)$57,000 $78,000
Cost Recovery 103%104%
City Administrative Allocation $165,000 $165,000
EXPENSE SUBTOTAL with City Admin Allocation $2,407,000 $1,922,000
OVERALL NET REVENUE (Deficit)$(108,000)$(87,000)
Cost Recovery 95%95%
28
29
30
Financial Operating Analysis
Main Sources of Revenue (Year Three)
Revenue Center City Managed Hybrid Model
Membership and Daily Use $1,745,000 $1,454,000
Swim Lessons $240,000 $76,000
Youth Camps $78,000 $78,000
Lease Revenue (Program Partner)$0 $75,000
Dry-side Fitness $73,000 $0
Pool Rentals $41,000 $41,000
Aquatic Fitness $34,000 $31,000
Court/Gym Rentals $32,000 $32,000
Special Events/Functions $28,000 $25,000
Retail Kiosk $7,000 $8,000
Sponsorship &Advertising $0 $0
31
Financial Operating Analysis
Main Cost/Expense Centers (Year Three)
Cost Center City Managed Hybrid Model Includes
Personnel Services: TOTAL $1,557,000 $1,229,000
Full-time Staff $672,000 $545,000 10.5 FTE vs 8.5 FTE
Part-time Staff $505,000 $384,000
Benefits and Other Staff Costs $380,000 $300,000
Other Services and Charges $260,000 246,000 Utilities,
General Office,
Supplies $193,000 $120,000 Maintenance,
Equipment, Supplies
Contractual Services $11,000 77,000
Program Expenses $206,000 $69,000
City Administration Share Allocation $165,000 $165,000
Capital Outlay $70,000 $70,000
32
Long Term Accrued Deficit
33
Cumulative Opening/Operational
Deficit City Managed Hybrid Model Variance
Year Zero $516,000 $437,000 $79,000
Year 1 $886,000 $560,000 $326,000
Year 5 $607,000 $227,000 $380,000
Cumulative Opening/Operational
Deficit (with City Admin.Allocation)City Managed Hybrid Model Variance
*Year Zero (Includes Start-Up Costs)$516,000 $437,000 $79,000
Year 1 $1,036,000 $710,000 $326,000
Year 5 $1,436,000 $1,055,000 $381,000
•Hybrid reduces start up expenses
•Hybrid model accelerates start up with current membership
•Hybrid has greater potential upside for growth
•After Year 5 annual operating deficits continue to reduce slightly from $80,000
down
Capital Outlay
Long Term Replacement & Maintenance Accrual
(Same in both Management Models)
34
Year Accrued Capital Outlay
Year 1 $0
Year 5 $292,000
Year 10 $743,000
Year 15 $1,265,000
Year 20 $1,871,000
Financial Impact of Hybrid Model
•Potential Start-up Cost Savings
–Reducing need for staff hiring and training
–Reduce equipment costs
•Fitness equipment start-up costs could be reduced by $200,000 to $250,000
–Reduce marketing expenses leveraging outside providers existing marketing
•Ramp-up timing
–Higher initial membership levels drawing from programs already in place
–Built in base of former YMCA members and program participants
•Net financial impact
–Less gross revenue for overall facility
–Balanced by significantly lower expenses
–Improved bottom line
–Smaller reduced accrued start up and operating deficit
35
Future & Long Term
Opportunities
36
Goals
•Expand facilities to provide space for enhanced and existing programs
and use
•Provide facilities for new programming
•Expansion to support expansion of community programming
•Create unique “signature” features and amenities to become a
destination
•Identify and develop partners to support expansion
•Identify new spaces and programs with positive financial impact
–Increased revenue supporting overall Rec Center sustainability
–Support increased economic development
•Synergies with existing Rec & Community Center facilities to grow all
programs
•Can future expansion be supported by renewal of existing millage
37
Sports Center
•Court Facilities
–Basketball, volleyball, pickleball, and more
–Recommend 6 x regulation basketball courts (8+
volleyball)
–Leagues, development programs, tournaments
•Indoor walking track
–Costly to retro-fit existing facility
–Very cost effective if combined with expanded court
facility
•Climbing Center
–Climbing wall
–Very cost effective if combined with expanded court
facility
•Partner Opportunities
–Investor interest
–Sports Center management interest
•Financial Analysis: Profit Center with Partners
38
Sport Center (courts)
39
Outdoor Activity Center
•Expanded family friendly play area
•Outdoor fitness stations/course
•Compact ropes/leadership course
•Sand volleyball court(s)
•Dog Park
40
Community Function Space
41
Long Term Expansion Costs
•Sports Center Costs (2021 dollars): 53,000 to 55,000 square feet
–Court Complex: $9,000,000 to $12,000,000
–Indoor walking Track:$500,000 to $750,000
–Climbing Gym:$500,000 to $750,000
•Outdoor Activity Center
–Fitness Stations:$50,000 to $150,000
–Ropes Course:$100,000 and up
–Dog Park:Variable
•Function and Meeting Space:Approximately $450/square foot
42
Timelines
43
Workback Schedule from Re-Opening
•6 Months out from opening
–Approval to move forward with re-opening
–Identification of and initial negotiation with potential program providers/partners or
management group
•Identify key milestone dates for potential partners
–Develop Org Chart for facility based on management model
–Start search for Facility Manager
•5 Months out from opening
–Hiring of Facility Manager (City)
–Negotiations with potential program providers/partners or management group
–Initial media campaign
–Determine any facility maintenance needs or “sprucing up” options
44
Workback Schedule from Re-Opening
•4 Months out from opening
–Finalize program providers/partners or management group as appropriate
–Begin purchasing equipment, furniture, etc.
–Hiring of Membership/Customer Service Manager
–Develop Program Model and tentative schedules
–Develop Membership Model
–Develop of Rec Center marketing materials
–Begin Planning for Grand Opening
•3 Months out from opening
–Launch Membership Campaign
–Hiring of Facility Operations/Maintenance Manager
–Begin recruiting part-time staff
–Develop all necessary Emergency Action Plan, operations, management documents
and procedures 45
Workback Schedule from Re-Opening
•2 Months out from opening
–Hiring all employees (actual start date closer to opening)
–Pool fill and start-up
–Building maintenance and sprucing up
–Building fully functional
–Community Open Houses and Rec Center tours and promotion
•Link to membership drive
•1 Months out from opening
–Facility and program staff training
–Rehearsals and dry-runs of all programming and procedures
–Select initial pre-opening use of specific areas or portions of building as appropriate
–Potential for early soft opening
•Opening
–Soft Opening
–Grand Opening (usually 3-4 weeks following soft opening)46
Factors Affecting Timeline
•Any unexpected facility surprises
•Timeline in developing program partners or management group
•Any specific timelines or milestones for partners
•Suitability of actual opening target date
–Coordinated with key community/school timelines
–Other considerations
–Good and bad times to open
•Any difficulty in finding staff
•Other?
47
Next Steps
•Develop Membership Model
•Development of Management Model
•Ongoing review and refinement of Budget/Business Model
•Funding model for pre-opening costs
•Funding model for annual operating deficit
•Identify target opening date
•Fine tune workback schedule based on target opening date
48
QUESTIONS
and
DISCUSSION
49
WS – Item 2
WORK SESSION STAFF REPORT
Work Session Item No. 2
Date: June 7, 2021
To: City Council
From: Hannah Lynch, Finance Director
Re: 2020 Annual Audit Report
Background
Andy Hering of Redpath and Company will be in attendance to provide an overview of
the City’s 2020 Annual Financial Report, present the auditor’s management analysis and
answer any questions you may have with regard to the financial condition of the City.
The 2020 annual audit was undertaken earlier this year, with field work being completed
in late April/early May. The auditors review all financial transactions and the financial
reports of the City over the previous year for their fairness in presentation and for full
disclosure of all material aspects of the City’s financial condition. This review is
conducted in accordance with generally accepted auditing standards and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. The auditors concluded that the City’s
financial statements for 2020 presented fairly, in all material respects, the financial
position of the City as of December 31, 2020. The auditors also issue their reports on the
City’s legal compliance with certain laws, regulations, contracts, etc., our internal control
structure, and management issues.
It should be noted that the City has received the Certificate of Achievement for
Excellence in Financial Reporting from the Government Finance Officers Association of
the United States and Canada for its 2019 Comprehensive Annual Financial Report. The
city has received this award each year since 1995. We believe that the report issued for
2020 continues to uphold the high standards of reporting excellence that this prestigious
award represents.
The presentation at the work session will be comprehensive and is intended to provide the
opportunity for council members to ask any questions or make comments about the audit
report and the state of city finances. The Council will be asked to accept the 2020
Annual Audit Report at the June 14, 2021, regular City Council meeting.
Requested Council Direction
None
Attachments
2020 Comprehensive Annual Financial Report
2020 Other Audit Reports
Redpath and Company Audit Presentation Slides
COMPREHENSIVE ANNUAL FINANCIAL REPORT
OF THE
CITY OF LINO LAKES, MINNESOTA
FOR THE YEAR ENDED
December 31, 2020
Prepared By: Finance Department
Hannah Lynch, 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 Reporting 7
Organization Chart 8
Principal City Officials 9
Independent Auditor's Report 13
Management's Discussion and Analysis 17
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position Statement 1 31
Statement of Activities Statement 2 32
Fund Financial Statements:
Balance Sheet - Governmental Funds Statement 3 34
Reconciliation of the Balance Sheet of Governmental Funds
To the Statement of Net Position Statement 4 37
Statement of Revenues, Expenditures and Changes in Fund Balance -
Governmental Funds Statement 5 38
Reconciliation of the Statement of Revenues, Expenditures and Changes
In Fund Balance of Governmental Funds to the Statement of Activities Statement 6 40
Statement of Net Position - Proprietary Funds Statement 7 41
Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds Statement 8 42
Statement of Cash Flows - Proprietary Funds Statement 9 43
Notes to Financial Statements 45
Required Supplementary Information:
Budgetary Comparison Schedule - General Fund Statement 10 84
Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 11 90
Schedule of Proportionate Share of Net Pension Liability -
General Employees Retirement Fund Statement 12 91
Schedule of Pension Contributions -
General Employees Retirement Fund Statement 13 92
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 14 93
Schedule of Pension Contributions -
Public Employees Police and Fire Fund Statement 15 94
Schedule of Changes in the Net Pension Liability and Related Ratios -
Lino Lakes Public Safety Department - Fire Division Statement 16 95
Schedule of Contributions -
Lino Lakes Public Safety Department - Fire Division Statement 17 96
Notes to RSI 97
Combining and Individual Nonmajor Fund Financial Statements and Schedules:
Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 104
Combining Statement of Revenues, Expenditures and Changes in Fund Balance -
Nonmajor Governmental Funds Statement 19 105
Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 108
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Special Revenue Funds Statement 21 110
Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 114
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Debt Service Funds Statement 23 116
Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 121
Subcombining Statement of Revenues, Expenditures and Changes in
Fund Balance - Nonmajor Capital Project Funds Statement 25 124
Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures
and Changes in Fund Balance - Budget and Actual Statement 26 127
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
STATISTICAL SECTION (UNAUDITED)
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INTRODUCTORY SECTION
1
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2
600 Town Center Parkway, Lino Lakes, MN 55014
Phone: 651-982-2400 ∙ Fax: 651-982-2499
May 28, 2021
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, 2020.
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, 2020, 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, 2020, are
fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first
component of the financial section of this report.
GAAP require that management provide a narrative introduction, overview and analysis to accompany the
basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino
Lakes’ MD&A can be found immediately following the report of the independent auditors.
3
Profile of the Government
The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County
of Anoka. It covers an area of 33 square miles and has a population of approximately 22,410. The population
has more than doubled from the 1990 census figure of 8,807 and has grown by 33.6% 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 and for overseeing the day-to-day operations 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 inspections), public services (streets, fleet, parks and recreation),
conservation of natural resources (forestry, 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 30. 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 10 and 26, 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. Infrastructure investments made by the City in the late 2000’s and early 2010’s in
anticipation of a strengthening economy, are leading to continued residential, commercial and industrial
growth. Completion of the 35E/CSAH 14 interchange has spurred residential, commercial and industrial
development along this corridor. The City’s largest residential development, the 864 lot Watermark project,
is currently under construction in the northeast quadrant. The City’s largest industrial user, Distribution
Alternatives, expanded into a 402,000 square foot building in 2016. Commercial interest continues to grow
with the expansion of the Main Street Shoppes and the new Otter Crossing development in the northeast
quadrant.
The 35E corridor also gained additional attention through a partnership with Anoka and Washington
County’s, neighboring cities and Connexus Energy, the Minnesota Technology Corridor. Over a 1,000
4
Factors Affecting Financial Condition (Continued)
acres are available along the corridor with strong transportation, fiber and utility infrastructure to serve the
growing data and tech fields.
Citywide development activities continued to increase in 2020. Residential permit activity for new home
construction surpassed 100 for the fifth consecutive year. Overall construction activity exceeded $50
million in new valuation. This trend is expected to continue as national builder, Lennar Homes, continues
construction in Watermark. Additionally, a 200-unit senior living community is planned for construction
in 2021.
Long-term financial planning. The City’s current five-year capital plan identifies street and utility
improvements totaling $60,374,692 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, water and sewer operating funds, and
general fund tax levies. This plan is in the process of being revised to reflect the anticipated activity through
the year 2025. In addition, the city’s five-year financial plan includes funding projections for operations
and operating impacts for a five-year period.
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, 2019. This marks the twenty-fifth 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 2020 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,
Hannah Lynch
Director of Finance
5
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6
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Lino Lakes
Minnesota
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
December 31, 2019
Executive Director/CEO
7
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 8
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2020
Term Expires
Mayor: Rob Rafferty December 31, 2021
Councilmembers: Dale Stoesz December 31, 2021
Tony Cavegn December 31, 2021
Chris Lyden December 31, 2023
Michael Ruhland December 31, 2023
City Administrator: Sarah Cotton Appointed
Directors:
Community Development Michael Grochala Appointed
Finance Hannah Lynch Appointed
Public Safety John Swenson Appointed
Public Services Richard DeGardner Appointed
9
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10
FINANCIAL SECTION
11
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12
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, 2020, 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.
13
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Lino
Lakes, Minnesota, as of December 31, 2020, 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 schedule, 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 fund financial statements and schedules and
statistical section are presented for purposes of additional analysis and are not a required part
of the basic financial statements.
14
The combining and individual fund financial statements and schedules are the responsibility
of management and were derived from and relate directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly
to the underlying accounting and other records used to prepare the basic financial statements
or to the basic financial statements themselves, and other additional procedures in accordance
with auditing standards generally accepted in the United States of America. In our opinion,
the combining and individual fund financial statements and schedules are fairly stated in all
material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections 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 28, 2021, on our consideration of the City of Lino Lakes, Minnesota’s internal control
over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and
compliance and the results of that testing, and not to provide an opinion on 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 28, 2021
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16
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the
City’s financial statements this narrative overview and analysis of the financial activities of
the City for the fiscal year ended December 31, 2020. 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 and deferred outflows of resources of the City exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $123,513,590 (net
position). Of this amount, $34,740,882 (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 $12,422,023.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $32,120,124, an increase of $1,896,595. Of this amount, $8,206,540
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 $7,527,722. Unassigned
fund balance for the general fund was $6,787,498, or 66% of total general fund expenditures
and other financing uses.
Total outstanding debt decreased by $1,769,235 during 2020. General Obligation Bonds and
Certificates of Indebtedness totaling $4,624,235 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.
17
Management’s Discussion and Analysis
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 deferred
outflows of resources, and liabilities and deferred inflows of resources, with the difference
between the two reported as net position. Over time, increases or decreases in net position
may serve as a useful indicator of whether the financial position of the City is improving or
deteriorating.
The Statement of Activities presents information showing how the City’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that
will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but
unused vacation leave).
Both of the government-wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities)
from other functions that are intended to recover all or a significant portion of their costs
through user fees and charges (business-type activities). The governmental activities of the
City include general government, public safety, public services, conservation of natural
resources and community development. The business-type activities of the City include a
water utility and sewer utility.
The government-wide financial statements are statements 1 and 2 of this report.
Fund Financial statements. A fund is a grouping of related accounts that is used to
maintain control over resources that have been segregated for specific activities or objectives.
The City, like other state and local governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the City
can be divided into two categories: governmental funds and proprietary 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
18
Management’s Discussion and Analysis
governmental fund statement of revenues, expenditures and change in fund balance provide a
reconciliation to facilitate this comparison between governmental funds and governmental
activities.
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. Budgetary comparison schedules are presented as
statements 10 and 26.
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.
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 9.
Other information. The combining statements referred to earlier in connection with non-
major governmental funds are presented immediately following the required supplementary
information. Combining and individual fund statements and schedules are presented as
statements 18 through 25.
19
Management’s Discussion and Analysis
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's
financial position. In the case of the City, assets and deferred outflows of resources exceeded
liabilities and deferred inflows of resources by $123,513,590 at the close of the most recent
fiscal year.
The largest portion of the City’s net position ($75,326,505, or 61%) 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
2020 2019 2020 2019 2020 2019
Assets:
Current and other assets $44,476,092 $42,013,231 $16,571,768 $16,667,696 $61,047,860 $58,680,927
Capital assets 55,151,912 49,859,684 43,366,197 36,390,820 98,518,109 86,250,504
Total assets $99,628,004 $91,872,915 $59,937,965 $53,058,516 $159,565,969 $144,931,431
Deferred outflows of resources $1,995,741 $3,084,049 $31,725 $36,994 $2,027,466 $3,121,043
Liabilities:
Long-term liabilities outstanding $30,637,047 $27,963,093 $398,988 $327,294 $31,036,035 $28,290,387
Other liabilities 3,722,743 3,560,168 123,285 74,596 3,846,028 3,634,764
Total liabilities $34,359,790 $31,523,261 $522,273 $401,890 $34,882,063 $31,925,151
Deferred inflows of resources $3,170,706 $4,970,184 $27,076 $65,572 $3,197,782 $5,035,756
Net position:
Net investment in capital assets $31,960,308 $28,433,053 $43,366,197 $36,390,820 $75,326,505 $64,823,873
Restricted 13,446,203 12,390,431 - - 13,446,203 12,390,431
Unrestricted 18,686,738 17,640,035 16,054,144 16,237,228 34,740,882 33,877,263
Total net position $64,093,249 $58,463,519 $59,420,341 $52,628,048 $123,513,590 $111,091,567
Governmental Activities Business-Type Activities Totals
$13,446,203 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
($34,740,882) may be used to meet ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position, both for the government as a whole, as well as for its separate
governmental and business-type activities.
20
Management’s Discussion and Analysis
The City’s net position increased by $12,422,023 during 2020. Key elements of this increase
are as follows:
City of Lino Lakes’ Changes in Net Position
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues:
Charges for services $2,929,965 $3,141,500 $3,144,790 $2,943,723 $6,074,755 $6,085,223
Operating grants and contributions 2,470,024 870,532 42,152 - 2,512,176 870,532
Capital grants and contributions 6,894,207 6,820,419 2,887,266 2,894,794 9,781,473 9,715,213
General revenues:
General property taxes 10,492,131 10,035,681 - - 10,492,131 10,035,681
Tax increment 766,912 671,296 - - 766,912 671,296
Grants and contributions not
restricted to specific programs 47,188 38,926 - - 47,188 38,926
Unrestricted investment earnings 684,384 1,029,944 383,963 523,554 1,068,347 1,553,498
Gain on disposal of capital assets 150,041 68,472 - - 150,041 68,472
Total revenues 24,434,852 22,676,770 6,458,171 6,362,071 30,893,023 29,038,841
Expenses:
General government 4,197,819 2,466,130 - - 4,197,819 2,466,130
Public safety 4,867,134 5,053,511 - - 4,867,134 5,053,511
Public services 4,118,477 5,810,919 - - 4,118,477 5,810,919
Conservation of naturual resources 161,556 183,982 - - 161,556 183,982
Community development 660,660 686,421 - - 660,660 686,421
Interest and fees on long-term debt 733,207 498,587 - - 733,207 498,587
Water - 1,532,282 1,322,811 1,532,282 1,322,811
Sewer - 2,199,865 2,002,711 2,199,865 2,002,711
Total expenses 14,738,853 14,699,550 3,732,147 3,325,522 18,471,000 18,025,072
Increase in net position before transfers 9,695,999 7,977,220 2,726,024 3,036,549 12,422,023 11,013,769
Transfers (4,066,269) (1,311,593) 4,066,269 1,311,593 - -
Change in net position 5,629,730 6,665,627 6,792,293 4,348,142 12,422,023 11,013,769
Net position - January 1 58,463,519 51,797,892 52,628,048 48,279,906 111,091,567 100,077,798
Net position - December 31 $64,093,249 $58,463,519 $59,420,341 $52,628,048 $123,513,590 $111,091,567
Business-Type Activities TotalsGovernmental Activities
Governmental Activities
Governmental activities increased the City’s net position by $5,629,730 during 2020.
Contributions of capital assets from private sources, coronavirus relief grant funds, and
property taxes levied to reduce debt all contributed to the increase in 2020. This increase was
partially offset by transfers out to business-type activities of $4,066,269.
21
Management’s Discussion and Analysis
Below are specific graphs which provide comparisons of the governmental activities
revenues and expenses:
22
Management’s Discussion and Analysis
Business-Type Activities
Business-type activities increased the City’s net position by $6,792,293 during 2020. The
increase was due to contributions of capital assets from private sources and a transfer in from
governmental activities of $4,066,269.
Below are specific graphs which provide comparisons of the business-type activities
revenues and expenses:
23
Management’s Discussion and Analysis
Financial Analysis of the Government's Funds
Governmental Funds. The focus of the City’s governmental funds is to provide information
on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City’s financing requirements. In particular, unassigned fund balance
may serve as a useful measure of a government’s net resources available for spending at the
end of the fiscal year.
At the end of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $32,120,124. Approximately 26% of this total amount ($8,206,540)
constitutes fund balance restricted by external constraints established by creditors, grantors,
contributors, or by state statutory provisions. $417,300 of fund balance is not in a spendable
form, $895,047 has been committed, $18,943,415 has been assigned, and $3,657,822 is
unassigned.
The fund balance of the General Fund increased by $734,527 in 2020, while the City
anticipated the use of $200,000 of the general fund balance. Strong investment earnings and
increased license and permit revenues resulted in favorable General Fund revenues for the
year. Reduced expenditures, primarily for personal services through position vacancies, and
favorable professional and contractual services spending 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 $37,355 to the MSA Construction fund.
The G.O. Improvement Bonds of 2016B fund decreased by $41,983. 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 $9,659,265, all of which is
assigned for financing capital improvements. The fund balance during the current year
increased by $1,351,871 due primarily to strong investment earnings and the issuance of
General Obligation Bonds to fund the construction of Water Tower #3. Construction will be
completed in 2021.
The MSA Construction fund has a total fund balance of $3,083,911, all of which is assigned
to capital improvements for City MSA designated roadways. The fund balance during the
current year decreased by $649,606 primarily due to transfers out for debt service payments
and street and trail improvement projects.
24
Management’s Discussion and Analysis
The 2018 Street Reconstruction fund has a total fund balance of $0. The fund balance
decreased during the year by $1,010,945 due to the completion of the West Shadow Lake
Drive and LaMotte Area Street Reconstruction project.
The combined fund balance of other governmental funds increased by $1,512,731 during
2020. Primary reasons for the increase include West Shadow Lake Drive and LaMotte Area
Street Reconstruction funds available at the end of the project for debt service payments on
the 2018A bonds and increased development activities resulting in increased developer fee
revenues (park dedication, seal coating, surface water management).
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 $30,858,612, of which $5,810,154 is
unrestricted. The increase in net position of $5,331,048 was primarily due to capital
contributions and strong investment earnings, partially offset by a net operating loss and a
transfer to the Pavement Management Fund for watermain system repairs associated with the
2020 Street Rehabilitation project.
The sewer fund has total net position at year-end of $28,561,729 of which $10,243,990 is
unrestricted. The increase in net position of $1,461,245 was primarily due to capital
contributions and strong investments earnings, partially offset by a net operating loss.
Budgetary Highlights
General Fund
There were amendments to the original budget in 2020. The revenue budget was decreased
by $174,758 to total $10,440,412, and the expenditure budget was decreased by $543,258 to
total $9,723,912. Other financing uses were increased $3,500 to total $551,500. Net changes
to the budget resulted in a budgeted surplus of $165,000.
Revenues were $156,727 over budget for the year. General property taxes and fines and
forfeits were $69,382 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 $413,420 primarily due to vacant positions and
favorable professional and contracted service activity. Fuel costs were also much lower than
anticipated due to the decrease in the average fuel price.
25
Management’s Discussion and Analysis
Capital Asset and Debt Administration
Capital assets. The City’s investment in capital assets for its governmental and business-
type activities as of December 31, 2020, amounted to $98,518,109 (net of accumulated
depreciation), an increase of $12,267,605 from the prior year. This investment in capital
assets includes land, wetland credits, construction in progress, buildings, equipment,
vehicles, and infrastructure.
The City completed Phase II of the controls automation upgrade at the Civic Complex,
Woods Edge Park improvements, street and utility improvements in the West Shadow Lake
Drive and LaMotte areas, Pheasant Hills watermain improvements, Cedar Street
Reconstruction improvements. and the build-out of two public safety vehicles. The City has
continued to work to complete trunk utility improvements at 49&J, drainage improvements
in the NE Area of the City, Water Tower #3, and Well House #1 Rehabilitation
improvements. In addition, the City started Birth Street Watermain improvements and 2021
Street Reconstruction.
Developer lead infrastructure improvements at various stages of completion include St Clair
Estates, NorthPointe 6th and 7th Additions, Saddle Club 3rdAddition, Century Farms 7th
Addition, Chavez Estates, Eastside Villas, Watermark 1st, 2nd, and 3rd additions, and Naduea
Acres.
City of Lino Lakes’ Capital Assets
(Net of Depreciation)
2020 2019 2020 2019 2020 2019
Land $3,532,930 $3,532,930 $ - $ - $3,532,930 $3,532,930
Wetland credits 93,876 170,421 - - 93,876 170,421
Construction in progress 8,036,003 10,094,933 10,336,586 6,123,837 18,372,589 16,218,770
Buildings 7,619,238 6,983,477 - - 7,619,238 6,983,477
Office equipment and furniture 312,288 233,176 - - 312,288 233,176
Vehicles 1,961,862 1,842,573 - - 1,961,862 1,842,573
Machinery and shop equipment 1,070,655 1,087,529 257,047 139,603 1,327,702 1,227,132
Other equipment 1,002,034 835,192 - - 1,002,034 835,192
Infrastructure 31,523,026 25,079,453 32,772,564 30,127,380 64,295,590 55,206,833
Total $55,151,912 $49,859,684 $43,366,197 $36,390,820 $98,518,109 $86,250,504
Governmental Activities Business-Type Activities Totals
Additional information on the City’s capital assets can be found in Note 5 to the financial
statements.
26
Management’s Discussion and Analysis
Long-term debt. At the end of the current fiscal year, the City had total bonded debt
outstanding of $24,132,152. Of this amount, $21,341,770 comprises tax supported debt and
$1,805,000 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 $136,950.
City of Lino Lakes’ Outstanding Debt
2020 2019 2020 2019 2020 2019
General obligation bonds $21,478,720 $18,659,485 $ - $ - $21,478,720 $18,659,485
G.O. special assessment bonds 1,805,000 2,855,000 - - 1,805,000 2,855,000
Bond premium 848,432 462,829 - - 848,432 462,829
Total $24,132,152 $21,977,314 $0 $0 $24,132,152 $21,977,314
Business-Type Activities TotalsGovernmental Activities
The City of Lino Lakes’ total bonded debt increased by $1,769,235 during the current fiscal
year. The issuance of General Obligation Bonds and Certificates of Indebtedness totaling
$4,624,235 to finance the construction of Water Tower #3 and capital equipment purchases
combined with the scheduled principal payments of $2,855,000 accounted for this change.
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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BASIC FINANCIAL STATEMENTS
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30
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 1
December 31, 2020
Governmental Business-Type
Activities Activities Total
Assets:
Cash and investments $35,151,477 $15,505,153 $50,656,630
Accrued interest receivable 167,976 - 167,976
Due from other governmental units 76,002 32,485 108,487
Accounts receivable - net 61,140 336,717 397,857
Prepaid items 317,300 117,440 434,740
Internal balances (559,110) 559,110 -
Inventory - 20,863 20,863
Taxes receivable 457,579 - 457,579
Special assessments receivable 8,244,181 - 8,244,181
Net pension asset 559,547 - 559,547
Capital assets - nondepreciable 11,662,809 10,336,586 21,999,395
Capital assets - net of accumulated depreciation 43,489,103 33,029,611 76,518,714
Total assets 99,628,004 59,937,965 159,565,969
Deferred outflows of resources:
Pension related 1,985,052 31,725 2,016,777
OPEB related 10,689 - 10,689
Total deferred outflows of resources 1,995,741 31,725 2,027,466
Liabilities:
Accounts payable and other current liabilities 1,263,656 123,285 1,386,941
Deposits payable 2,172,668 - 2,172,668
Accrued interest payable 286,419 - 286,419
Other post employment benefits:
Due in more than one year 606,506 6,968 613,474
Long-term liabilities:
Due within one year 3,594,132 31,072 3,625,204
Due in more than one year 21,357,275 10,766 21,368,041
Net pension liability:
Due in more than one year 5,079,134 350,182 5,429,316
Total liabilities 34,359,790 522,273 34,882,063
Deferred inflows of resources:
Pension related 2,917,755 27,076 2,944,831
OPEB related 252,951 - 252,951
Total deferred inflows of resources 3,170,706 27,076 3,197,782
Net position:
Net investment in capital assets 31,960,308 43,366,197 75,326,505
Restricted for:
Debt service 10,510,225 - 10,510,225
Tax increment purposes 740,979 - 740,979
Park improvements 1,327,036 - 1,327,036
Other purposes 867,963 - 867,963
Unrestricted 18,686,738 16,054,144 34,740,882
Total net position $64,093,249 $59,420,341 $123,513,590
Primary Government
The accompanying notes are an integral part of these financial statements.
31
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
For The Year Ended December 31, 2020
Program Revenues
Charges For
Functions/Programs Expenses Services
Primary government:
Governmental activities:
General government $4,197,819 $587,888
Public safety 4,867,134 1,235,829
Public services 4,118,477 1,106,248
Conservation of natural resources 161,556 -
Community development 660,660 -
Interest and fees on long-term debt 733,207 -
Total governmental activities 14,738,853 2,929,965
Business-type activities:
Water 1,532,282 1,341,559
Sewer 2,199,865 1,803,231
Total business-type activities 3,732,147 3,144,790
Total primary government $18,471,000 $6,074,755
The accompanying notes are an integral part of these financial statements.
32
Statement 2
Operating Capital
Grants and Grants and Governmental Business-Type
Contributions Contributions Activities Activities Total
$1,625,816 $ - ($1,984,115) $ - ($1,984,115)
482,885 - (3,148,420) - (3,148,420)
274,021 6,894,207 4,155,999 - 4,155,999
71,302 - (90,254) - (90,254)
16,000 - (644,660) - (644,660)
- - (733,207) - (733,207)
2,470,024 6,894,207 (2,444,657) 0 (2,444,657)
42,152 1,516,637 - 1,368,066 1,368,066
- 1,370,629 - 973,995 973,995
42,152 2,887,266 0 2,342,061 2,342,061
$2,512,176 $9,781,473 (2,444,657) 2,342,061 (102,596)
General revenues:
General property taxes 10,492,131 - 10,492,131
Tax increment 766,912 - 766,912
Grants and contributions not
restricted to specific programs 47,188 - 47,188
Unrestricted investment earnings 684,384 383,963 1,068,347
Gain on disposal of capital assets 150,041 - 150,041
Transfers (4,066,269) 4,066,269 -
Total general revenues and transfers 8,074,387 4,450,232 12,524,619
Change in net position 5,629,730 6,792,293 12,422,023
Net position - January 1 58,463,519 52,628,048 111,091,567
Net position - December 31 $64,093,249 $59,420,341 $123,513,590
Program Revenues
Net (Expense) Revenue and
Changes in Net Position
Primary Government
The accompanying notes are an integral part of these financial statements.
33
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2020
333 G.O.
Improvement
General Fund Note of 2009A
Assets
Cash and investments $9,496,886 $ -
Accrued interest receivable 167,976 -
Due from other governmental units 59,417 -
Accounts receivable - net 37,606 -
Prepaid items 315,224 -
Advances to other funds - -
Taxes receivable:
Due from county 290,917 -
Delinquent 131,631 -
Special assessments receivable:
Due from county - -
Delinquent - 280
Deferred 169 2,164,522
Interfund loan receivable - -
Total assets $10,499,826 $2,164,802
Liabilities, Deferred Inflows of Resources, and Fund Balances
Liabilities:
Accounts payable $313,147 $ -
Salaries payable 290,014 -
Due to other governmental units 64,475 -
Advances from other funds - -
Retainage payable - -
Deposits payable 2,172,668 -
Interfund loan payable - -
Total liabilities 2,840,304 0
Deferred inflows of resources:
Unavailable revenue 131,800 2,164,802
Fund balance:
Nonspendable 315,224 -
Restricted - -
Committed 425,000 -
Assigned - -
Unassigned 6,787,498 -
Total fund balance 7,527,722 0
Total liabilities, deferred inflows of $10,499,826 $2,164,802
resources, and fund balance
The accompanying notes are an integral part of these financial statements.
34
Statement 3
342 G.O. Other Total
Improvement 406 Area and 420 MSA Governmental Governmental
Bonds of 2016B Unit Charge Construction Funds Funds
$395,982 $9,996,253 $3,084,523 $12,177,833 $35,151,477
- - - - 167,976
- - - 16,585 76,002
- 18,595 - 4,939 61,140
- - - 2,076 317,300
156,310 - - 683,093 839,403
- - - 35,031 325,948
- - - - 131,631
- 9,986 - 5,729 15,715
- 15,957 - 7,736 23,973
2,994,379 2,161,029 - 884,394 8,204,493
- - - 2,317,533 2,317,533
$3,546,671 $12,201,820 $3,084,523 $16,134,949 $47,632,591
$318 $180,281 $612 $228,677 $723,035
- - - - 290,014
- - - - 64,475
- - - 839,403 839,403
- 185,288 - 844 186,132
- - - - 2,172,668
2,876,643 - - - 2,876,643
2,876,961 365,569 612 1,068,924 7,152,370
2,994,379 2,176,986 - 892,130 8,360,097
- - - 102,076 417,300
- 803,598 - 7,402,942 8,206,540
- - - 470,047 895,047
- 8,855,667 3,083,911 7,003,837 18,943,415
(2,324,669) - - (805,007)3,657,822
(2,324,669)9,659,265 3,083,911 14,173,895 32,120,124
$3,546,671 $12,201,820 $3,084,523 $16,134,949 $47,632,591
The accompanying notes are an integral part of these financial statements.
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36
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4
FUNDS TO THE STATEMENT OF NET POSITION
December 31, 2020
Fund balance - total governmental funds (Statement 3) $32,120,124
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 55,151,912
Net pension asset 559,547
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 131,631
Delinquent special assessments receivable 23,973
Deferred special assessments receivable 8,204,493
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 (23,283,720)
Unamortized bond premiums (859,061)
Unamortized bond discounts 10,629
Accrued interest payable (286,419)
Compensated absences payable (819,255)
Other post employment benefits (606,506)
Net pension liability (5,079,134)
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 1,995,741
Deferred inflows of resources (3,170,706)
Net position of governmental activities (Statement 1) $64,093,249
The accompanying notes are an integral part of these financial statements.
37
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
For The Year Ended December 31, 2020
333 G.O. 342 G.O.
Improvement Improvement
General Fund Note of 2009A Bonds of 2016B
Revenues:
General property taxes $8,342,663 $ - $ -
Tax increment - - -
Licenses and permits 972,450 - -
Special assessments - 37,355 -
Intergovernmental 642,220 - -
Charges for services 248,882 - -
Fines and forfeits 76,811 - -
Investment earnings 122,482 - 3,801
Miscellaneous 191,631 - -
Total revenues 10,597,139 37,355 3,801
Expenditures:
Current:
General government 2,100,186 - -
Public safety 4,722,890 - -
Public services 1,907,420 - -
Conservation of natural resources 160,884 - -
Community development 401,523 - -
Capital outlay:
General government - - -
Public safety 14,199 - -
Public services 4,010 - -
Debt service:
Principal - - 495,000
Interest and fiscal charges - - 11,186
Total expenditures 9,311,112 0 506,186
Revenues over (under) expenditures 1,286,027 37,355 (502,385)
Other financing sources (uses):
Transfers in 380,000 - 460,402
Transfers out (931,500)(37,355) -
Issuance of debt - - -
Premium on issuance of debt - - -
Proceeds from sale of capital assets - - -
Total other financing sources (uses)(551,500)(37,355)460,402
Net change in fund balance 734,527 0 (41,983)
Fund balance - January 1 6,793,195 - (2,282,686)
Fund balance - December 31 $7,527,722 $0 ($2,324,669)
The accompanying notes are an integral part of these financial statements.
38
Statement 5
485 Other Total
406 Area and 420 MSA 2018 Street Governmental Governmental
Unit Charge Construction Reconstruction Funds Funds
$ - $ - $ - $2,122,799 $10,465,462
- - - 766,912 766,912
- - - - 972,450
760,536 - - 189,162 987,053
- - 87,000 1,868,524 2,597,744
338,526 - - 1,022,219 1,609,627
- - - 83,468 160,279
214,257 84,789 - 259,055 684,384
- - - 54,968 246,599
1,313,319 84,789 87,000 6,367,107 18,490,510
- - - 1,312,414 3,412,600
- - - 21,283 4,744,173
155,979 8,912 - 1,011,055 3,083,366
- - - - 160,884
- - - 263,882 665,405
- - - 405,310 405,310
- - - 136,291 150,490
3,988,609 - 438,853 1,400,169 5,831,641
- - - 2,360,000 2,855,000
- - - 618,096 629,282
4,144,588 8,912 438,853 7,528,500 21,938,151
(2,831,269) 75,877 (351,853) (1,161,393) (3,447,641)
15,295 37,355 - 3,229,737 4,122,789
(597,778) (762,838) (659,092) (1,090,690) (4,079,253)
4,330,000 - - 294,235 4,624,235
435,623 - - - 435,623
- - - 240,842 240,842
4,183,140 (725,483) (659,092) 2,674,124 5,344,236
1,351,871 (649,606) (1,010,945) 1,512,731 1,896,595
8,307,394 3,733,517 1,010,945 12,661,164 30,223,529
$9,659,265 $3,083,911 $0 $14,173,895 $32,120,124
The accompanying notes are an integral part of these financial statements.
39
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, 2020
Net change in fund balance - total governmental funds (Statement 5)$1,896,595
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:
Current expenditures capitalized 921,489
Capital outlay 6,387,441
Depreciation (3,114,147)
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 5,298,050
Contributions of infrastructure to business-type activities (4,109,805)
Miscellaneous other differences related to capital assets (90,800)
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 26,669
Change in delinquent special assessments receivable (17,293)
Change in deferred special assessments receivable 306,382
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.
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, including bond premium (5,059,858)
Repayment of principal 2,855,000
Amortization of bond premiums and discounts 50,020
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 (153,945)
Change in compensated absences payable (18,073)
Change in OPEB liability and related deferred outflows and inflows of resources (27,210)
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 ($148,170) differed from pension contributions ($627,385).479,215
Change in net position of governmental activities (Statement 2)$5,629,730
The accompanying notes are an integral part of these financial statements.
40
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET POSITION Statement 7
PROPRIETARY FUNDS
December 31, 2020
601 Water 602 Sewer Total
Assets:
Current assets:
Cash and cash equivalents $5,895,566 $9,609,587 $15,505,153
Due from other governmental units 29,991 2,494 32,485
Accounts receivable - net 138,452 198,265 336,717
Prepaid items 12,839 104,601 117,440
Inventory 20,863 - 20,863
Total current assets 6,097,711 9,914,947 16,012,658
Noncurrent assets:
Interfund loan receivable - 559,110 559,110
Capital assets:
Construction in progress 7,453,016 2,883,570 10,336,586
Equipment 103,896 446,657 550,553
Water and sewer systems 27,940,244 25,908,535 53,848,779
Total capital assets 35,497,156 29,238,762 64,735,918
Less: Allowance for depreciation (10,448,698) (10,921,023) (21,369,721)
Net capital assets 25,048,458 18,317,739 43,366,197
Total assets 31,146,169 28,791,796 59,937,965
Deferred outflows of resources related to pensions 15,756 15,969 31,725
Liabilities:
Current liabilities:
Accounts payable 33,089 17,504 50,593
Salaries payable 10,301 10,301 20,602
Due to other governments 13,301 3,253 16,554
Other accrued liabilities 34,856 680 35,536
Compensated absences payable - current portion 15,536 15,536 31,072
Total current liabilities 107,083 47,274 154,357
Noncurrent liabilities:
Compensated absences payable - noncurrent portion 5,383 5,383 10,766
Other post employment benefits - noncurrent portion 3,484 3,484 6,968
Net pension liability 173,916 176,266 350,182
Total noncurrent liabilities 182,783 185,133 367,916
Total liabilities 289,866 232,407 522,273
Deferred inflows of resources related to pensions 13,447 13,629 27,076
Net position:
Investment in capital assets 25,048,458 18,317,739 43,366,197
Unrestricted 5,810,154 10,243,990 16,054,144
Total net position $30,858,612 $28,561,729 $59,420,341
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
41
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENSES AND Statement 8
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
601 Water 602 Sewer Totals
Operating revenues:
Charges for services $1,225,474 $1,768,044 $2,993,518
Hook-up charges 43,260 35,187 78,447
Water meter sales 72,825 - 72,825
Total operating revenues 1,341,559 1,803,231 3,144,790
Operating expenses:
Personal services 307,712 316,088 623,800
Materials and supplies 290,275 33,244 323,519
Contractual services 210,109 230,420 440,529
MCES sewer charges - 1,035,391 1,035,391
Depreciation 616,893 512,771 1,129,664
Utilities 85,248 47,168 132,416
Other 22,045 24,783 46,828
Total operating expenses 1,532,282 2,199,865 3,732,147
Operating income (loss)(190,723)(396,634)(587,357)
Nonoperating revenues (expenses):
Investment earnings 149,623 234,340 383,963
Intergovernmental revenue 42,152 - 42,152
Total nonoperating revenues (expenses)191,775 234,340 426,115
Income before contributions and transfers 1,052 (162,294)(161,242)
Contributions and transfers:
Capital contributions from private sources 1,516,637 1,370,629 2,887,266
Capital contributions from governmental activities 3,940,716 169,089 4,109,805
Transfer in - 83,821 83,821
Transfer out (127,357) - (127,357)
Total contributions and transfers 5,329,996 1,623,539 6,953,535
Change in net position 5,331,048 1,461,245 6,792,293
Net position - January 1 25,527,564 27,100,484 52,628,048
Net position - December 31 $30,858,612 $28,561,729 $59,420,341
Capital
Contributions Transfers - Net
Amounts reported above $6,997,071 ($43,536)
Amounts reported for business-type activities in the
statement of activities are different because:
Transfer in of capital assets from governmental activities (4,109,805) 4,109,805
Amounts reported on the statement of activities $2,887,266 $4,066,269
CHANGES IN FUND NET POSITION
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
42
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS Statement 9
PROPRIETARY FUNDS
For The Year Ended December 31, 2020
601 Water 602 Sewer Totals
Cash flows from operating activities:
Receipts from customers and users $1,324,219 $1,808,593 $3,132,812
Payment to suppliers (567,189) (1,441,515) (2,008,704)
Payment to employees (289,638) (295,695) (585,333)
Net cash flows provided by operating activities 467,392 71,383 538,775
Cash flows from noncapital financing activities:
Intergovernmental revenue 12,161 - 12,161
Transfers in - 83,821 83,821
Transfers out (127,357) - (127,357)
Net cash flows provided by noncapital financing activities (115,196)83,821 (31,375)
Cash flows from capital and related financing activities:
Acquisition of capital assets (778,045) (329,925) (1,107,970)
Cash flows from investing activities:
Investment earnings 149,623 234,340 383,963
Net increase in cash and cash equivalents (276,226) 59,619 (216,607)
Cash and cash equivalents - January 1 6,171,792 9,549,968 15,721,760
Cash and cash equivalents - December 31 $5,895,566 $9,609,587 $15,505,153
Reconciliation of operating income to net
cash provided by operating activities:
Operating income (loss) ($190,723) ($396,634) ($587,357)
Adjustments to reconcile operating income
(loss) to net cash flows from operating activities:
Depreciation 616,893 512,771 1,129,664
Changes in assets and liabilities:
Decrease (increase) in due from other governmental units - (256)(256)
Decrease (increase) in accounts receivable - net (17,340)5,618 (11,722)
Decrease (increase) in prepaid items 1,195 (81,538) (80,343)
Decrease (increase) in inventory 1,633 - 1,633
Decrease (increase) in deferred outflows of resources 2,741 2,528 5,269
Increase (decrease) in payables 16,376 11,684 28,060
Increase (decrease) in other accrued liabilities 21,284 (655)20,629
Increase (decrease) in compensated absences 1,285 1,285 2,570
Increase (decrease) in other post employment benefits 300 300 600
Increase (decrease) in net pension liability 33,087 35,437 68,524
Increase (decrease) in deferred inflows of resources (19,339) (19,157) (38,496)
Total adjustments 658,115 468,017 1,126,132
Net cash provided by operating activities $467,392 $71,383 $538,775
Noncash investing, capital and financing activities:
Contributions of capital assets $5,457,353 $1,539,718 $6,997,071
Business-Type Activities - Enterprise Funds
The accompanying notes are an integral part of these financial statements.
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44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 and proprietary funds. The emphasis of
governmental and proprietary fund financial statements is on major individual governmental and
enterprise funds, with each displayed as separate columns in the fund financial statements. All
remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
45
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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
imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. 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
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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.
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.
47
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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.
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.
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 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
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.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Within the fund financial statements, the revenue from special assessments is recognized by the City
when it becomes measurable and available to finance expenditures of the current fiscal period. In
practice, current and delinquent special assessments received by the City are recognized as revenue for
the current year. Special assessments are collected by the County and remitted by December 31
(remitted to the City the following January) and are also recognized as revenue for the current year. All
remaining delinquent, deferred and special deferred assessments receivable in governmental funds are
completely offset by deferred inflows of resources.
I. INVENTORY
For governmental funds, the original cost of materials and supplies are recorded as expenditures at the
time of purchase. These funds do not maintain material amounts of inventories.
Inventories of the proprietary funds are stated at cost, which approximates market, using the first-in,
first-out (FIFO) method.
J. PREPAID ITEMS
Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements. Prepaid items are reported using
the consumption method and recorded as expenditures/expenses at the time of consumption.
K. INTERFUND TRANSACTIONS
During the course of operations, numerous transactions occur between individual funds for goods
provided or services rendered. Interfund services provided and used are accounted for as revenues,
expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /
expenses initially made from it that are properly applicable to another fund, are recorded as
expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund
that is reimbursed.
The City provides temporary advances to funds that have insufficient cash balances by means of an
advance from another fund. Such advances are classified as “advances to/from other funds.” Long-
term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as “internal balances.” All other interfund transactions are
reported as transfers.
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
payments and refunds are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
In addition to assets, the statement of financial position reports 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) until that
time. The City has two items that qualify for reporting in this category. Pension related deferred
outflows of resources are reported in the government-wide Statement of Net Position and the
proprietary funds Statement of Net Position. OPEB related deferred outflows of resources are only
reported in the governmental activities column of the government-wide Statement of Net Position as
amounts applicable to business-type activities are immaterial.
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. Pension related deferred inflows of resources are reported in the government-wide
Statement of Net Position and the proprietary funds Statement of Net Position. OPEB related deferred
inflows of resources are only reported in the governmental activities column of the government-wide
Statement of Net Position as amounts applicable to business-type activities are immaterial. 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. The general fund is the only fund
that reports a positive unassigned fund balance amount. In other governmental funds, if
expenditures incurred for specific purposes exceed the amounts that are restricted, committed or
assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that
fund.
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
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
or unassigned resources are available for use, it is the City’s policy to use resources in the following
order: 1) committed 2) assigned and 3) unassigned.
The City formally adopted a fund balances policy for the general fund. The policy establishes an
unassigned fund balance range of 40% - 50% of general fund operating expenditures.
R. USE OF ESTIMATES
The preparation of financial statements in accordance with generally accepted accounting principles
(GAAP) requires management to make estimates that affect amounts reported in the financial statements
during the reporting period. Actual results could differ from such estimates.
Note 2 DEPOSITS AND INVESTMENTS
A. DEPOSITS
In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized
by the City Council, all of which are members of the Federal Reserve System.
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.
Securities pledged as collateral are required to be held in safekeeping by the City or in a financial
institution other than that furnishing the collateral. Minnesota Statue 118A.03 identifies allowable
forms of collateral.
Custodial Credit Risk – the risk that in the event of a bank failure, the City’s deposits may not be
returned to it. The City has no additional deposit policies addressing custodial credit risk.
At December 31, 2020, the bank balance of the City’s deposits with financial institutions was
$5,357,631 and the carrying amount was $4,978,958. All deposits were covered by federal depository
insurance or by collateral pledge and held in the City’s name.
53
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
B. INVESTMENTS
Subject to rating, yield, maturity and issuer requirements as prescribed by statute, Minnesota Statutes
118A.04 and 118A.05 authorize the City to invest in United States securities, state and local securities,
commercial paper, time deposits, high-risk mortgage-backed securities, temporary general obligation
bonds, repurchase agreements, Minnesota joint powers investment trusts and guaranteed investment
contracts.
At December 31, 2020, 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 $19,875,392 $7,390,586 $8,981,633 $3,503,173
Municipal bonds * 13,545,411 4,103,061 4,921,394 4,520,956
Federal Agency Securities AA+ 2,249,988 - 1,750,098 499,890
4M fund Not rated 9,499,944 9,499,944 - -
First American Gov't Obligation fund AAAm 505,997 505,997 - -
Total $45,676,732 $21,499,588 $15,653,125 $8,524,019
* AAA $2,853,030; AA+ $2,464,096 Total investments $45,676,732
AA1 $485,516; AA2 $746,304 Deposits 4,978,958
AA3 $488,021; AA $4,044,333 Petty cash 940
AA- $1,236,968; A+ $616,055 Total cash and investments $50,656,630
A $611,088
Ratings per Moody's or S&P
Investment Maturities (in Years)
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.
The City has the following recurring fair value measurements at December 31, 2020:
Investment Type 12/31/2020 Level 1 Level 2 Level 3
Investments at fair value:
Brokered certificates of deposit $19,875,392 $ - $19,875,392 $ -
Municipal bonds 13,545,411 - 13,545,411 -
Federal Home Loan Mortgage Corp. 2,249,988 - 2,249,988 -
$0 $35,670,791 $0
Investments not categorized:
4M fund 9,499,944 `
First American Gov't Obligation fund 505,997
Total investments $45,676,732
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
54
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 is an external investment pool. The
fund seeks to maintain a constant net asset value (NAV) of $1 per share. The securities held by the 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.
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, 2020, no individual investments exceeded 5% of the
City’s total investment portfolio.
55
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 3 RECEIVABLES
Significant receivable balances not expected to be collected within one year of December 31, 2020 are as
follows:
Property Special
Taxes Assessments
Receivable Receivable Total
Major Funds:
General Fund $53,000 $ - $53,000
G.O. Improvement Note of 2009A - 2,138,400 2,138,400
G.O. Improvement Bonds of 2016B - 2,994,400 2,994,400
Area and Unit Charge - 2,055,000 2,055,000
Nonmajor Funds - 811,900 811,900
Total $53,000 $7,999,700 $8,052,700
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 $131,631 $169 $131,800
G.O. Improvement Note of 2009A - 2,164,802 2,164,802
G.O. Improvement Bonds of 2016B - 2,994,379 2,994,379
Area and Unit Charge - 2,176,986 2,176,986
Nonmajor Funds - 892,130 892,130
Total $131,631 $8,228,466 $8,360,097
56
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 5 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2020 was as follows:
Beginning Ending
Balance Increases Decreases Transfers Balance
Governmental activities:
Capital assets, not being depreciated:
Land $3,532,930 $ - $ - $ - $3,532,930
Wetland credits 170,421 - (76,545) - 93,876
Construction in progress 10,094,933 6,257,268 (4,206,393) (4,109,805) 8,036,003
Total capital assets, not being depreciated 13,798,284 6,257,268 (4,282,938) (4,109,805) 11,662,809
Capital assets, being depreciated:
Buildings 12,335,828 1,127,365 - - 13,463,193
Office equipment and furniture 713,850 143,325 (27,004) - 830,171
Vehicles 4,617,444 440,743 (147,864) - 4,910,323
Machinery and shop equipment 2,568,859 252,534 (66,813) - 2,754,580
Other equipment 1,555,397 226,733 - - 1,782,130
Infrastructure 88,241,098 8,430,785 (397,991) - 96,273,892
Total capital assets, being depreciated 110,032,476 10,621,485 (639,672)0 120,014,289
Less accumulated depreciation for:
Buildings 5,352,351 491,604 - - 5,843,955
Office equipment and furniture 480,674 51,616 (14,407) - 517,883
Vehicles 2,774,871 316,575 (142,985) - 2,948,461
Machinery and shop equipment 1,481,330 207,249 (4,654)1,683,925
Other equipment 720,205 59,891 - - 780,096
Infrastructure 63,161,645 1,987,212 (397,991) - 64,750,866
Total accumulated depreciation 73,971,076 3,114,147 (560,037)0 76,525,186
Total capital assets being depreciated - net 36,061,400 7,507,338 (79,635)0 43,489,103
Governmental activities capital assets - net $49,859,684 $13,764,606 ($4,362,573) ($4,109,805) $55,151,912
Beginning Ending
Balance Increases Decreases Transfers Balance
Business-type activities:
Capital assets, not being depreciated:
Construction in progress $6,123,837 $3,498,369 ($3,324,633) $4,039,013 $10,336,586
Capital assets, being depreciated:
Machinery and shop equipment 392,536 165,016 (6,999)550,553
Water and sewer systems 50,120,778 3,657,209 - 70,792 53,848,779
Total capital assets, being depreciated 50,513,314 3,822,225 (6,999) 70,792 54,399,332
Accumulated depreciation for:
Machinery and shop equipment 252,933 46,848 (6,274) - 293,507
Water and sewer systems 19,993,398 1,082,816 - - 21,076,214
Total accumulated depreciation 20,246,331 1,129,664 (6,274)0 21,369,721
Total capital assets being depreciated - net 30,266,983 2,692,561 (725) 70,792 33,029,611
Business-type activities capital assets - net $36,390,820 $6,190,930 ($3,325,358) $4,109,805 $43,366,197
57
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Depreciation expense was charged to functions/programs of the City as follows:
Governmental activities:
General government $520,292
Public safety 288,272
Public services 2,304,733
Conservation of natural resources 850
Total depreciation expense - governmental activities $3,114,147
Business-type activities:
Water $616,893
Sewer 512,771
Total depreciation expense - business-type activities $1,129,664
58
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020 consisted of the
following:
Final
Issue Maturity Interest Original Payable
Date Date Rate Issue 12/31/2020
Governmental activities:
General Obligation Bonds:
G.O. TIF Bonds, Series 2007A 07/15/07 02/01/24 4.00% - 4.125% $4,215,000 $1,020,000
G.O. Refunding Bonds, Series 2012A 11/15/12 02/01/24 1.00% - 2.00%2,015,000 650,000
G.O. Bonds, Series 2015A 08/01/15 02/01/31 2.00% - 3.00% 3,095,000 2,310,000
EDA Lease Revenue Bonds, Series 2015B 10/01/15 04/01/36 2.00% - 3.00% 4,350,000 3,665,000
G.O. Utility Revenue Bonds, Series 2016A 11/23/16 02/01/27 2.00% 1,420,000 1,015,000
G.O. Tax Abatement Refunding Bonds, Series 2016C 11/23/16 02/01/23 1.00% - 1.50% 1,600,000 870,000
G.O. Bonds, Series 2018A 12/19/18 02/01/34 3.00% - 5.00% 6,915,000 6,825,000
G.O Utility Revenue Bonds, Series 2020A 07/08/20 02/01/35 2.00% - 4.00% 4,330,000 4,330,000
Total General Obligation Bonds 27,940,000 20,685,000
Special Assessment Bonds:
G.O. Improvement Bonds, Series, 2013A 07/15/13 02/01/24 1.25% - 4.00% 615,000 255,000
G.O. Improvement Bonds, Series 2014A 11/20/14 02/01/26 0.40% - 2.30% 2,645,000 1,040,000
G.O. Improvement Refunding Bonds, Series 2016B 11/23/16 02/01/21 0.875% - 1.50% 1,975,000 510,000
Total Special Assessment Bonds 5,235,000 1,805,000
Direct Borrowings:
G.O. Certificates of Indebtedness, Series 2018 02/01/18 12/31/21 1.00%303,900 100,000
G.O. Certificates of Indebtedness, Series 2019 02/01/19 12/31/22 1.00%388,535 262,535
G.O. Capital Note, Series 2016A 04/14/16 02/01/26 2.00%294,525 136,950
G.O. Certificates of Indebtness 2020A 01/01/20 12/31/23 1.00%294,235 294,235
Total Direct Borrowings 1,281,195 793,720
Unamortized bond premiums 1,010,812 859,061
Unamortized bond discounts (38,362) (10,629)
Compensated absences payable N/A 819,255
Total Government Activities $35,428,645 $24,951,407
Business-Type Activities:
Compensated absences payable N/A $41,838
59
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
CHANGES IN LONG-TERM DEBT
The following is a schedule of changes in City indebtedness for the year ended December 31, 2020:
Beginning Ending Due Within
Balance Additions Deletions Balance One Year
Governmental Activities:
General obligation bonds $17,595,000 $4,330,000 $1,240,000 $20,685,000 $1,830,000
Special assessment bonds 2,855,000 - 1,050,000 1,805,000 960,000
Direct borrowings 1,064,485 294,235 565,000 793,720 359,000
Total bonds and notes payable 21,514,485 4,624,235 2,855,000 23,283,720 3,149,000
Unamortized bond premiums 476,139 435,623 52,701 859,061 -
Unamortized bond discounts (13,310) - (2,681) (10,629) -
Compensated absences payable 801,182 491,322 473,249 819,255 445,132
Total governmental activities $22,778,496 $5,551,180 $3,378,269 $24,951,407 $3,594,132
Business-Type Activities:
Compensated absences payable $39,268 $33,331 $30,761 $41,838 $31,072
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.
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.
Certificates of Indebtedness – the certificates were issued to finance capital purchases in accordance with the
City’s Capital Equipment Replacement Schedule and will be repaid from 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.
The City’s agreements related to direct borrowings do not contain any significant events of default or termination
events with finance-related consequences, other than a commitment to pledge future property tax and franchise
fee revenues.
60
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
2021 $2,790,000 $678,447 $359,000 $12,250
2022 2,060,000 602,276 264,360 5,387
2023 2,140,000 537,772 134,885 2,405
2024 1,910,000 472,100 35,475 710
2025 1,445,000 417,895 - -
2026-2030 6,450,000 1,386,009 - -
2031-2035 5,405,000 430,350 - -
2036-2040 290,000 5,800 - -
Total $22,490,000 $4,530,649 $793,720 $20,751
Bonded Debt Direct Borrowings
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.
61
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 2017 - 2023 $670,591 $545,512 $572,788
2007A G.O. TIF Bonds Infrastructure improvements 2008 - 2024 $1,107,421 $261,026 $261,844
2011 - 2020 $ - $116,725 $120,180
2012A G.O. Bonds Infrastructure improvements 2013 - 2024 $670,323 $170,520 $178,080
2013A Improvement Bonds Infrastructure improvements Special assessments 2014 - 2024 $275,700 $71,100 $39,000
2014A Improvement Bonds Infrastructure improvements Special assessments 2015 - 2026 $1,086,924 $401,788 $346
2015A G.O. Bonds Infrastructure improvements Ad valorem taxes 2016 - 2031 $2,624,469 $255,313 $271,228
2015B EDA Lease Revenue Bonds Construction of a fire station Ad valorem taxes 2016 - 2036 $4,785,694 $298,938 $317,297
2016A Capital Note Cable communications equipment Franchise fees 2016 - 2024 $143,880 $36,399 $38,219
2016A Utility Revenue Bonds Water infrastructure improvements 2017 - 2027 $1,087,050 $161,700 $163,100
2016B Improvement Bonds Infrastructure improvements 2017 - 2020 $513,825 $505,868 $460,402
2016C G.O. Tax Abatement Bonds Infrastructure improvements Ad valorem taxes 2017 - 2023 $889,315 $273,770 $308,570
2018A G.O. Bonds Infrastructure improvements 2019-2034 $8,726,767 $367,788 $1,321,860
2020A G.O. Utility Revenue Bonds Infrastructure improvements 2021-2036 $5,253,161 $ - $ -
Trunk utility charges via
transfers
Ad valorem taxes, trunk
utility charges, special
assessments
Tax increment, MSA
funding via transfers
Ad valorem taxes,
special assessments
Special assessments, tax
increment
Trunk utility charges via
transfers
Current Year
2010A Improvement and Utility Revenue Bonds General and water infrastructure
improvements
Special assessments,
trunk utility charges
Revenue Pledged
62
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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% of average salary for each of
the first ten years of service and 1.7% of average salary for each additional year. Under Method 2,
the accrual rate for Coordinated Plan members is 1.7% of average salary for all years of service.
For members hired prior to July 1, 1989 a full annuity is available when age plus years of service
equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal
retirement age is the age for unreduced Social Security benefits capped at 66.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the
postretirement increase is equal to 50% of the cost-of-living adjustment (COLA) announced by the
SSA, with a minimum increase of at least 1% and a maximum of 1.5%. Recipients that have been
receiving the annuity or benefit for at least a full year as of the June 30 before the effective date of
the increase will receive the full increase. For recipients receiving the annuity or benefit for at least
one month but less than a full year as of the June 30 before the effective date of the increase will
receive a reduced prorated increase. For members retiring on January 1, 2024 or later, the increase
will be delayed until normal retirement age (age 65 if hired prior to July 1, 1989, or age 66 for
63
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
individuals hired on or after July 1, 1989). Members retiring under Rule of 90 are exempt from the
delay to normal retirement.
2. PEPFF Benefits
Benefits for the PEPFF members first hired after June 30, 2010 but before July 1, 2014 vest on a
prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for
PEPFF members first hired after June 30, 2014 vest on a prorated basis from 50% after ten years up
to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for
each year of service. For PEPFF 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.
Benefit increases are provided to benefit recipients each January. Beginning in 2019, the
postretirement increase will be fixed at 1%. Recipients that have been receiving the annuity or
benefit for at least 36 months as of the June 30 before the effective date of the increase will receive
the full increase. For recipients receiving the annuity or benefit for at least 25 months but less than
36 months as of the June 30 before the effective date of the increase will receive a reduced prorated
increase.
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 2020 and the City was required to contribute 7.5% for Coordinated Plan members. The City’s
contributions to the GERF for the year ended December 31, 2020 were $206,802. The City’s
contributions were equal to the required contributions as set by state statute.
2. PEPFF Contributions
Police and Fire member’s contribution rates increased from 11.3% of pay to 11.8% and employer
rates increased from 16.95% to 17.70% on January 1, 2020. The City’s contributions to the PEPFF
for the year ended December 31, 2020 were $451,396. The City’s contributions were equal to the
required contributions as set by state statute.
D. PENSION COSTS
1. GERF Pension Costs
At December 31, 2020, the City reported a liability of $2,350,219 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. 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 $72,457. The net pension liability was measured as of June 30, 2020, 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
64
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
received by PERA during the measurement period for employer payroll paid dates from July 1,
2019 through June 30, 2020, relative to the total employer contributions received from all of
PERA’s participating employers. The City’s proportionate share was 0.0392% at the end of the
measurement period and 0.0398% for the beginning of the period.
For the year ended December 31, 2020, the City recognized pension expense of $102,103 for its
proportionate share of the GERF’s pension expense. In addition, the City recognized an additional
$6,306 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, 2020, 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 $21,421 $8,892
Changes in actuarial assumptions - 86,935
Net collective between projected and
actual investment earnings 41,155 -
Changes in proportion 50,094 85,889
Contributions paid to PERA
subsequent to the measurement date 100,249 -
Total $212,919 $181,716
The $100,249 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2021. 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
2021 (177,080)
2022 14,825
2023 36,427
2024 56,782
2025 -
Thereafter -
($69,046)
2. PEPFF Pension Costs
At December 31, 2020, the City reported a liability of $3,079,098 for its proportionate share of the
PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2020 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 proportionate share of the net pension liability was based on
the City’s contributions received by PERA during the measurement period for employer payroll
65
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
paid dates from July 1, 2019 through June 30, 2020, relative to the total employer contributions
received from all of PERA’s participating employers. The City’s proportionate share was 0.2336%
at the end of the measurement period and 0.2547% for the beginning of the period.
The State of Minnesota also contributed $13.5 million to PEPFF during the plan fiscal year ended
June 30, 2020. The contribution consisted of $4.5 million in direct state aid that does meet the
definition of a special funding situation and $9.0 million in fire state aid that does not meet the
definition of a special funding situation. The $4.5 million direct state was paid on October 1, 2019.
Thereafter, by October 1 of each year, the state will pay $9 million to the Police and Fire Fund until
full funding is reached or July 1, 2048, whichever is earlier. The $9 million in fire state aid will
continue until the fund is 90 percent funded, or until the State Patrol Plan (administered by the
Minnesota State Retirement System) is 90 percent funded, whichever occurs later.
As a result, the State of Minnesota is included as a non-employer contributing entity in the PEPFF
Schedule of Employer Allocations and Schedule of Pension Amounts by Employer, Current
Reporting Period Only (pension allocation schedules) for the $4.5 million in direct state aid.
PEPFF employers need to recognize their proportionate share of the State of Minnesota’s pension
expense (and grant revenue) under GASB 68 special funding situation accounting and financial
reporting requirements. For the year ended December 31, 2020, the City recognized pension
expense of $261,457 for its proportionate share of the Police and Fire Plan’s pension expense. In
addition, the City recognized an additional $22,317 as pension expense (and grant revenue) for its
proportionate share of the State of Minnesota’s contribution of $4.5 million to the PEPFF.
The State of Minnesota is not included as a non-employer contributing entity in the Police and Fire
Pension Plan pension allocation schedules for the $9 million in fire state aid. The City also
recognized $21,024 for the year ended December 31, 2020 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 Police and Fire Fund.
At December 31, 2020, 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 $134,107 $129,208
Changes in actuarial assumptions 911,794 1,834,535
Net collective between projected and
actual investment earnings 118,257 -
Changes in proportion 382,320 648,287
Contributions paid to PERA
subsequent to the measurement date 229,475 -
Total $1,775,953 $2,612,030
The $229,475 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net
pension liability in the year ended December 31, 2021. Other amounts reported as deferred
outflows and inflows of resources related to pensions will be recognized in pension expense as
outflows:
66
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Year Ended Pension
December 31, Expense
2021 (276,783)
2022 (826,720)
2023 (40,472)
2024 113,360
2025 (34,937)
Thereafter -
($1,065,552)
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, 2020 actuarial valuation was determined using an individual entry-
age normal actuarial cost method and the following actuarial assumptions:
Inflation 2.50% per year
Active Member Payroll Growth 3.25% per year
Investment Rate of Return 7.50%
Salary increases were based on a service-related table. Mortality rates for active members, retirees,
survivors, and disabilitants for all plans were based on RP 2014 tables for males or females, as appropriate,
with slight adjustments to fit PERA’s experience. Cost of living benefit increases after retirement for
retirees are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF.
Actuarial assumptions used in the June 30, 2020 valuation were based on the results of actuarial experience
studies. The most recent four-year experience study for GERF was completed in 2019. The assumption
changes were adopted by the Board and become effective with the July 1, 2020 actuarial valuation. The most
recent four-year experience study for PEPFF was completed in 2020.
The following changes in actuarial assumptions and plan provisions occurred in 2020:
General Employees Fund
Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
As recommended in the June 30, 2019 experience study, assumed salary increase rates were
decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of
termination and disability were also changed.
The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the 100%
67
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Joint & Survivor option changed from 15% to 30%. The corresponding number of married new
retirees electing the Life annuity option was adjusted accordingly.
Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
Police and Fire Fund
Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
The State Board of Investment, which manages the investments of PERA, prepares an analysis of the
reasonableness on a regular basis of the long-term expected rate of return using a building-block method in
which best-estimate ranges of expected future rates of return are developed for each major asset class. These
ranges are combined to produce an expected long-term rate of return by weighting the expected future rates
of return by the target asset allocation percentages. The target allocation and best estimates of geometric
real rates of return for each major asset class are summarized in the following table:
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic Stocks 35.5% 5.10%
International Stocks 17.5% 5.30%
Bonds (Fixed Income) 20.0% 0.75%
Alternative Assets (Private Markets) 25.0% 5.90%
Cash 2.0% 0.00%
Totals 100%
F. DISCOUNT RATE
The discount rate used to measure the total pension liability in 2020 was 7.5%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members and employers
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.
68
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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%)
Proportionate share of the
GERF net pension liability $3,766,586 $2,350,219 $1,181,830
Proportionate share of the
PEPFF net pension liability $6,137,085 $3,079,098 $549,149
H. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about each pension plan’s fiduciary net position is available in a separately-issued
PERA financial report that includes financial statements and required supplementary information. That
report may be obtained at www.mnpera.org.
I. PENSION EXPENSE
Pension expense recognized by the City for the year ended December 31, 2020 is as follows:
GERF $108,409
PEPFF 283,774
Fire Pension Plan (Note 8)2,592
Total $394,775
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, 2020 (measurement date), the plan
covered 20 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
69
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
$130,846 in fire state aid to the plan for the year ended December 31, 2020. 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, 2020 were $0. The City’s contributions
were equal to the required contributions as set by state statute, if applicable.
D. PENSION COSTS
At December 31, 2020, the City reported a net pension asset of $559,547 for the SVF plan. The net
pension asset was measured as of December 31, 2020. 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, 2019 $270,650 $588,319 ($317,669)
Changes for the year:
Service cost 46,865 - 46,865
Interest on pension liability 19,051 - 19,051
Actuarial experience (gains) / losses (81,734) - (81 ,734)
Projected investment earnings - 35,299 (35,299)
Contributions - employer - - -
Contributions - State of MN - 130,846 (130,846)
Asset (gain) / loss - 60,661 (60,661)
Benefit payouts - - -
PERA administrative fee - (746)746
Net changes (15,818) 226,060 (241,878)
Balance end of year December 31, 2020 $254,832 $814,379 ($559,547)
There were no benefit provision changes during the measurement period.
For the year ended December 31, 2020, the City recognized pension expense of $2,592.
70
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
At December 31, 2020, 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 $ - $69,754
Differences between expected and
actual economic experience 27,904 81,331
Total $27,904 $151,085
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
2021 (27,188)
2022 (23,558)
2023 (43,956)
2024 (28,479)
2025 -
Thereafter -
E. ACTUARIAL ASSUMPTIONS
The total pension liability at December 31, 2020, 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 2020
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.
71
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 $540,430 $559,547 $577,643
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
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.
72
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
3. Description of Significant Investment Policy Changes During the Year
The SBI made no significant changes to their investment policy during fiscal year 2020 for the
Volunteer Firefighter Fund.
I. PENSION PLAN FIDUCIARY NET POSITION
Detailed information about the SVF plan’s fiduciary net position at June 30, 2020 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. The plan does not issue a stand-alone financial
report.
B. BENEFITS PROVIDED
The City is required by State Statute to allow retirees to continue participation in the City’s group health
insurance plan if the individual terminates service with the City through service retirement or disability
retirement. Active employees, who retire from the City when over age 50 and with 20 years of service,
may continue coverage with respect to both themselves and their eligible dependent(s) under the City’s
health benefits program until age 65.
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.
All health care coverage is provided through the City’s group health insurance plans. The retiree is
required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which
they participate. The premium is a blended rate determined on the entire active and retiree population.
Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees
are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to
active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s
plan becomes secondary.
73
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
C. PARTICIPANTS
As of the January 1, 2019 actuarial valuation, participants of the plan consisted of:
Active employees 42
Inactive employees or beneficiaries
currently receiving benefits 4
Total 46
D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY
The City’s total OPEB liability of $613,474 was measured as of December 31, 2020 and was
determined by an actuarial valuation as of January 1, 2019. Changes in the total OPEB liability during
2020 were:
Balance - beginning of year $560,631
Changes for the year:
Service cost 63,577
Interest 12,256
Changes of benefit terms -
Differences between expected and actual experience -
Changes in assumptions -
Benefit payments (22,990)
Net changes 52,843
Balance - end of year $613,474
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, 2019 actuarial valuation was determined using the following
actuarial assumptions and other inputs, applied to all periods included in the measurement, unless
otherwise specified:
Inflation 3.00%
Salary increases 3.00%
Discount rate 2.00%
Investment rate of return 2.00%
Healthcare cost trend rates 7% for 2020, decreasing 1% per year
to an ultimate rate of 3% for 2024 and beyond
Retirees' share of benefit-related costs 100%
The previous actuarial valuation included a liability for benefits provided to the beneficiary of a deceased
employee. As of the most recent actuarial valuation date, the beneficiary was not enrolled in the City’s
plan, but has been assigned a 20% probability of returning to the plan.
74
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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 January 14, 2020, obtained from
www.fmsbonds.com/market-yields.
Mortality rates were based on the SOA RP-2014 Total Dataset Mortality tables with Scale MP-2019.
Based on past experience of the plan, 90% of future retirees are assumed to continue medical coverage
until age 65. 25% of future police/fire retirees are assumed to select spousal coverage. No spousal
coverage is assumed for other future retirees. 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%) or 1% higher (3%)
than the current discount rate:
1% Decrease Discount Rate 1% Increase
1% 2% 3%
Total OPEB liability $647,908 $613,474 $579,420
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 (6%
decreasing to 2%) or 1% higher (8% decreasing to 4%) than the current healthcare cost trend rates:
Healthcare Cost
1% Decrease Trend Rates 1% Increase
(6% decreasing to 2%) (7% decreasing to 3%) (8% decreasing to 4%)
Total OPEB liability $552,251 $613,474 $686,802
H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES
RELATED TO OPEB
For the year ended December 31, 2020, the City recognized $50,800 of OPEB expense. At December
31, 2020, 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 $10,689 $252,951
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CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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
2021 (25,033)
2022 (25,033)
2023 (25,033)
2024 (25,033)
2025 (25,033)
Thereafter (117,097)
($242,262)
Note 10 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
A. DEFICIT FUND BALANCES
The City has deficit fund balances at December 31, 2020 as follows:
Fund Balance
Deficit
Major Funds:
G.O. Improvement Bonds of 2016B ($2,324,669)
Nonmajor Funds:
G.O. Utility Revenue Bonds of 2020A (318)
Tax Increment Financing 1-11 (804,689)
The City intends to fund these deficits through future tax levies, special assessment collections, tax
increments, transfers from other funds, and various other sources.
B. EXPENDITURES IN EXCESS OF BUDGET
The following is a listing of departments within the General Fund that exceeded budget appropriations:
Final
Budget Actual Overage
General government:
Elections $53,950 $54,003 $53
Public safety:
Building inspection 343,560 348,427 4,867
76
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020 is as follows:
Receivable Payable
Short-term advances:
Major Funds:
G.O. Improvement Bonds of 2016B $156,310 $ -
Nonmajor Funds:
Closed Bond Fund 683,093 -
Tax Increment Financing 1-11 - 839,403
$839,403 $839,403
Long-term interfund loans:
Major Funds:
G.O. Improvement Bonds of 2016B $ - $2,876,643
Sewer Fund 559,110 -
Nonmajor Funds:
Building and Facilities 2,317,533 -
$2,876,643 $2,876,643
77
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 12 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2020 are as follows:
Transfer In Transfer Out
Major Funds:
General Fund $380,000 $931,500
G.O. Improvement Note of 2009A - 37,355
G.O. Improvement Bonds of 2016B 460,402 -
Area and Unit Charge 15,295 597,778
MSA Construction 37,355 762,838
2018 Street Construction - 659,092
Water Fund - 127,357
Sewer Fund 83,821 -
Nonmajor governmental funds 3,229,737 1,090,690
Total $4,206,610 $4,206,610
During 2020, 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 debt service and capital project funds, and to allocate financial resources to funds that
received benefit from services provided by another fund. These transfers are routine and consistent with past
practices.
78
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 13 FUND BALANCE
At December 31, 2020, a summary of the governmental fund balance classifications is as follows:
G.O.Other
General Improvement Area and MSA Governmental
Fund Bonds of 2016B Unit Charge Construction Funds Total
Nonspendable:
Prepaid items $315,224 $ - $ - $ - $2,076 $317,300
Corpus of permanent fund - - - - 100,000 100,000
Total nonspendable 315,224 0 0 0 102,076 417,300
Restricted for:
Debt service - - - - 5,003,330 5,003,330
Capital improvements - - 803,598 - 1,327,036 2,130,634
Blue Heron Days - - - - 13,171 13,171
Narcotics and forfeiture funds - - - - 248,347 248,347
K-9 Unit purposes - - - - 22,110 22,110
Tax increment purposes - - - - 740,979 740,979
Environmental purposes - - - - 47,969 47,969
Total restricted 0 0 803,598 0 7,402,942 8,206,540
Committed for:
Future projects 425,000 - - - - 425,000
Economic development - - - - 238,500 238,500
Cable TV purposes - - - - 209,070 209,070
Recreation purposes - - - - 22,477 22,477
Total committed 425,000 0 0 0 470,047 895,047
Assigned for:
Capital improvements - - 8,855,667 3,083,911 7,003,837 18,943,415
Unassigned 6,787,498 (2,324,669) - - (805,007) 3,657,822
Total fund balance $7,527,722 ($2,324,669) $9,659,265 $3,083,911 $14,173,895 $32,120,124
Note 14 PROPERTY UNDER LEASE AGREEMENT
The City entered into an agreement to lease space within its City Hall Complex, which at year end had a cost of
$4,744,742 and a net book value of $1,330,693, to New Creations Child Care and Learning Center, LLC. The lease
expires June 30, 2029, although the City has the option to terminate the lease with no less than 12 months notice any
time after the 61st month of the lease. Approximate future minimum lease payments receivable under the operating
lease are as follows:
Year Ending
December 31, Amount
2021 85,120
2022 87,679
2023 90,329
2024 93,025
2025 95,812
Thereafter 358,210
$810,175
79
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 15 TAX INCREMENT DISTRICTS
The City is the administrating authority for four tax increment districts. The City’s tax increment districts are
subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse
of tax increments could become a liability of the applicable fund. Management has indicated that they are not
aware of any instances of noncompliance which could have a material effect on the financial statements.
The following table reflects values at December 31, 2020:
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 2017
Final year of district 2022 2023 2031 2026
Net tax capacity:
Original $128 $15,869 $21,032 $21,416
Current (payable 2019)* 40,398 243,818 224,749 371,626
Captured - retained $40,270 $227,949 $203,717 $350,210
*Numbers for pay-year 2020 are not available
The City provides tax abatements pursuant to Minnesota Statutes 469.174 to 469.1794 (Tax Increment
Financing) through a pay-as-you-go note program. Tax increment financing (TIF) can be used to encourage
private development, redevelopment, renovation and renewal, growth in low to moderate income housing, and
economic development within the City. TIF captures the increase in tax capacity and property taxes from
development or redevelopment to provide funding for the related project.
TIF District 1-12 has an outstanding pay-as-you-go revenue note. Tax Increment Revenue Note Series 2017 was
issued in the principal sum of $1,200,000. The note is not a general obligation of the City and is payable solely
from available tax increments. Accordingly, the note is not reflected in the financial statements of the City.
Principal payments are due August 1st and February 1st and are equal to 80% of the Tax Increment revenues
collected in the preceding six months. Current year payments on the note totaled $204,186 and the outstanding
balance at December 31, 2020 was $781,637.
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.
80
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
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, 2020.
C. COMMITTED CONTRACTS
At December 31, 2020, the City had commitments of $1,477,019 for uncompleted construction
contracts.
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 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.
81
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2020
Note 18 RECENTLY ISSUED ACCOUNTING STANDARDS
The Governmental Accounting Standards Board (GASB) recently approved the following statements which were
not implemented for these financial statements:
Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning
after June 15, 2021.
Statement No. 91 Conduit Debt Obligations. The provisions of this Statement are effective for reporting
periods beginning after December 15, 2021.
Statement No. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods
beginning after June 15, 2021.
Statement No. 93 Replacement of Interbank Offered Rates. The provisions of this Statement contain
multiple effective dates, the first being for reporting periods beginning after June 15, 2020.
Statement No. 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements.
The provisions of this Statement are effective for reporting periods beginning after June 15, 2022.
Statement No. 96 Subscription – Based Information Technology Arrangements. The provisions of this
Statement are effective for reporting periods beginning after June 15, 2022
The effect these standards may have on future financial statements is not determinable at this time, but it is
expected that Statement No. 87 may have a material impact.
Note 19 SUBSEQUENT EVENTS
On January 4, 2021 the Lino Lakes YMCA notified the City that they are unable to develop a sustainable
operating model that abides by the terms of their Development Agreement. The YMCA’s development
agreement requires that if the YMCA facility is not operated as a recreational facility, the title of the facility will
revert back to the City. This clause resulted in the YMCA’s conveyance of its Lino Lakes facility to the City of
Lino Lakes effective March 1, 2021.
82
REQUIRED SUPPLEMENTARY INFORMATION
83
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
General propery taxes:
Current and delinquent $8,403,756 $8,403,756 $8,342,085 ($61,671)
Penalties and interest 4,000 4,000 578 (3,422)
Total general property taxes 8,407,756 8,407,756 8,342,663 (65,093)
Licenses and permits:
Business 144,233 99,233 94,758 (4,475)
Non-business 788,113 788,113 877,692 89,579
Total licenses and permits 932,346 887,346 972,450 85,104
Intergovernmental:
State:
Police state aid 255,000 263,500 263,430 (70)
OTS grant - - 24,403 24,403
MSA maintenance 255,000 272,000 272,021 21
Other 28,000 18,000 19,864 1,864
County solid waste grant 78,459 59,459 62,502 3,043
Total intergovernmental 616,459 612,959 642,220 29,261
Charges for services:
General government 20,788 20,788 37,457 16,669
Engineering and planning fees 28,999 28,999 33,354 4,355
Public safety 190,800 120,800 114,438 (6,362)
Public services 10,750 10,750 13,633 2,883
Investment management charge to other funds 50,000 50,000 50,000 -
Total charges for services 301,337 231,337 248,882 17,545
Fines and forfeits 116,100 81,100 76,811 (4,289)
Investment earnings 30,000 30,000 122,482 92,482
Miscellaneous:
Gas franchise fees 55,000 55,000 50,142 (4,858)
Building lease revenue 110,090 110,090 110,384 294
Refunds and reimbursements 42,082 20,824 29,501 8,677
Donations 500 500 - (500)
Other 3,500 3,500 1,604 (1,896)
Total miscellaneous 211,172 189,914 191,631 1,717
Total revenues 10,615,170 10,440,412 10,597,139 156,727
See accompanying notes to the required supplementary information.
84
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures:
General government:
Mayor and city council:
Current:
Personal services 49,098 49,098 45,569 3,529
Other services and charges 18,700 18,700 16,703 1,997
Contractual services 23,000 23,000 20,299 2,701
Total mayor and city council 90,798 90,798 82,571 8,227
Elections:
Current:
Personal services 43,250 46,750 46,691 59
Supplies 1,600 1,600 1,104 496
Other services and charges 800 800 483 317
Contractual services - - 1,048 (1,048)
Capital outlay 4,800 4,800 4,677 123
Total elections 50,450 53,950 54,003 (53)
Administration:
Current:
Personal services 509,894 545,894 533,573 12,321
Supplies - - 24 (24)
Other services and charges 25,860 70,860 77,992 (7,132)
Contractual services 10,539 10,539 13,891 (3,352)
Total administration 546,293 627,293 625,480 1,813
Finance:
Current:
Personal services 330,468 272,468 269,674 2,794
Supplies 1,000 1,000 467 533
Other services and charges 240,955 253,955 250,198 3,757
Contractual services 106,167 106,167 109,851 (3,684)
Total finance 678,590 633,590 630,190 3,400
Cable TV:
Current:
Personal services 2,658 2,658 649 2,009
Contractual services - - 620 (620)
Total cable tv 2,658 2,658 1,269 1,389
Legal consultants:
Current:
Contractual services 130,000 130,000 119,360 10,640
Engineering/planning:
Current:
Contractual services 111,160 111,160 110,152 1,008
See accompanying notes to the required supplementary information.
85
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
General government: (continued)
Charter commission:
Current:
Other services and charges 2,500 2,500 148 2,352
Government buildings:
Current:
Personal services 2,511 2,511 2,813 (302)
Supplies 42,400 42,400 45,202 (2,802)
Other services and charges 361,609 361,609 348,626 12,983
Contractual services 71,200 71,200 80,372 (9,172)
Total government buildings 477,720 477,720 477,013 707
Total general government 2,090,169 2,129,669 2,100,186 30,103
Public safety:
Police:
Current:
Personal services 3,882,523 3,698,523 3,648,356 50,167
Supplies 39,125 39,125 33,249 5,876
Other services and charges 142,819 142,819 133,542 9,277
Contractual services 45,713 45,713 44,751 962
Capital outlay 32,317 32,317 14,199 18,118
Total police 4,142,497 3,958,497 3,874,097 84,400
Fire protection:
Current:
Personal services 516,907 440,407 418,996 21,411
Supplies 26,200 26,200 17,710 8,490
Other services and charges 52,980 52,980 41,371 11,609
Contractual services 44,030 44,030 36,488 7,542
Total fire protection 640,117 563,617 514,565 49,052
Building inspection:
Current:
Personal services 334,345 315,269 324,427 (9,158)
Supplies 3,650 3,650 3,701 (51)
Other services and charges 11,240 11,240 9,293 1,947
Contractual services 3,325 13,401 11,006 2,395
Total building inspection 352,560 343,560 348,427 (4,867)
Total public safety 5,135,174 4,865,674 4,737,089 128,585
See accompanying notes to the required supplementary information.
86
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Public services:
Streets:
Current:
Personal services 632,990 632,990 566,310 66,680
Supplies 140,000 125,000 118,259 6,741
Other services and charges 110,600 110,600 95,152 15,448
Contractual services 84,500 84,500 67,907 16,593
Total streets 968,090 953,090 847,628 105,462
Fleet:
Current:
Personal services 131,227 131,227 133,243 (2,016)
Supplies 183,000 183,000 133,108 49,892
Other services and charges 84,273 64,273 58,080 6,193
Contractual services 67,000 47,000 52,027 (5,027)
Capital outlay 5,000 5,000 4,010 990
Total fleet 470,500 430,500 380,468 50,032
Parks:
Current:
Personal services 524,687 489,621 465,633 23,988
Supplies 33,000 23,000 16,204 6,796
Other services and charges 45,550 65,550 58,881 6,669
Contractual services 43,700 43,700 41,461 2,239
Total parks 646,937 621,871 582,179 39,692
Recreation:
Current:
Personal services 155,938 102,093 96,560 5,533
Supplies 2,500 - - -
Other services and charges 16,800 5,050 4,295 755
Contractual services 300 300 300 -
Total recreation 175,538 107,443 101,155 6,288
Total public services 2,261,065 2,112,904 1,911,430 201,474
See accompanying notes to the required supplementary information.
87
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Conservation of natural resources:
Forestry:
Current:
Personal services 37,802 37,802 34,887 2,915
Supplies 2,950 2,950 3,230 (280)
Other services and charges 380 380 229 151
Contractual services 20,000 20,000 20,307 (307)
Total forestry 61,132 61,132 58,653 2,479
Environmental:
Current:
Personal services 51,729 44,732 41,167 3,565
Supplies 1,000 1,000 1,046 (46)
Other services and charges 9,430 9,430 3,882 5,548
Contractual services 1,100 1,100 1,044 56
Total environmental 63,259 56,262 47,139 9,123
Solid waste abatement:
Current:
Personal services 47,439 37,739 34,606 3,133
Supplies 1,100 1,100 628 472
Other services and charges 7,220 7,220 5,298 1,922
Contractual services 22,700 13,400 14,560 (1,160)
Total solid waste abatement 78,459 59,459 55,092 4,367
Total conservation of natural resources 202,850 176,853 160,884 15,969
Community development:
Community development:
Current:
Personal services 220,948 220,948 198,808 22,140
Supplies 100 100 48 52
Other services and charges 7,900 7,900 3,646 4,254
Contractual services 925 925 702 223
Total community development 229,873 229,873 203,204 26,669
Economic development:
Current:
Personal services 21,219 11,219 9,948 1,271
Other services and charges 14,040 21,040 20,519 521
Contractual services 73,225 37,125 36,777 348
Total economic development 108,484 69,384 67,244 2,140
See accompanying notes to the required supplementary information.
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CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 10
BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Expenditures: (continued)
Planning and zoning commission:
Current:
Personal services 110,105 110,105 111,058 (953)
Supplies 200 200 - 200
Other services and charges 16,250 16,250 10,361 5,889
Contractual services 38,000 13,000 9,656 3,344
Total planning and zoning commission 164,555 139,555 131,075 8,480
Total community development 502,912 438,812 401,523 37,289
Other:
Contingency 75,000 - - -
Total expenditures 10,267,170 9,723,912 9,311,112 413,420
Revenues over (under) expenditures 348,000 716,500 1,286,027 570,147
Other financing sources (uses):
Transfers in 380,000 380,000 380,000 -
Transfers out (928,000) (931,500) (931,500) -
Total other financing sources (uses)(548,000) (551,500) (551,500)0
Net change in fund balance ($200,000) $165,000 734,527 $570,147
Fund balance - January 1 6,793,195
Fund balance - December 31 $7,527,722
See accompanying notes to the required supplementary information.
89
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 11
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS
For The Last Ten Years
2020 2019 2018 2017
Total OPEB liability:
Service cost $63,577 $53,789 $16,547 $16,990
Interest 12,256 10,893 21,355 22,542
Changes of benefit terms - - - -
Differences between expected and actual experience - (245,168) - (51,083)
Changes in assumptions - - - -
Benefit payments (22,990)(15,527)(27,798)(31,536)
Net change in total OPEB liability 52,843 (196,013)10,104 (43,087)
Total OPEB liability - beginning 560,631 756,644 746,540 789,627
Total OPEB liability - ending $613,474 $560,631 $756,644 $746,540
Covered-employee payroll $3,496,085 $3,379,110 $3,240,932 $3,499,836
Total OPEB liability as a percentage of covered-employee payroll 17.5%16.6%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.
See accompanying notes to the required supplementary information.
90
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 12
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
GENERAL EMPLOYEES RETIREMENT FUND
For The Last Ten Years
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%
2019 2019 0.0398%2,200,453 68,330 2,268,783 2,814,860 80.6%80.2%
2020 2020 0.0392%2,350,219 72,457 2,422,676 2,797,444 86.6%79.1%
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.
See accompanying notes to the required supplementary information.
91
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 13
SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND
For The Last Ten Years
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%
2019 208,807 208,807 - 2,784,089 7.5%
2020 206,802 206,802 - 2,757,351 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.
See accompanying notes to the required supplementary information.
92
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 14
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY -
PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Last Ten Years
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%
2019 2019 0.2547%2,711,539 2,689,536 100.8%89.3%
2020 2020 0.2336%3,079,098 2,638,619 116.7%87.2%
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.
See accompanying notes to the required supplementary information.
93
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 15
SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND
For The Last Ten Years
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 16.20%
2016 424,970 424,970 - 2,623,271 16.20%
2017 416,665 416,665 - 2,572,006 16.20%
2018 420,821 420,821 - 2,597,660 16.20%
2019 452,731 452,731 - 2,670,979 16.95%
2020 444,711 444,711 - 2,512,491 17.70%
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.
See accompanying notes to the required supplementary information.
94
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 16
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS -
LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Last Ten Years
Fiscal year ending and measurement date December 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017
Total pension liability:
Service cost $46,865 $52,320 $48,182 $47,952
Interest on pension liability 19,051 16,603 8,754 6,191
Changes of benefit terms - - - -
Differences between expected and actual experience (81,734)(22,680)69,760 (11,672)
Changes of assumptions - - - -
Benefit payments, including refunds of employee contributions - - - -
Net change in total pension liability (15,818)46,243 126,696 42,471
Total pension liability - beginning 270,650 224,407 97,711 55,240
Total pension liability - ending (a)$254,832 $270,650 $224,407 $97,711
Plan fiduciary net position:
Contributions - employer $ - $ - $ - $ -
Contributions - State of Minnesota 130,846 121,630 118,144 113,797
Contributions - other - - 64,869 58,800
Net investment income 95,960 78,063 (18,696)9,153
Benefit payments, including refunds of employee contributions - - - -
Administrative expense (746)(694)(702)(572)
Net change in plan fiduciary net position 226,060 198,999 163,615 181,178
Plan fiduciary net position - beginning 588,319 389,320 225,705 44,527
Plan fiduciary net position - ending (b)$814,379 $588,319 $389,320 $225,705
Net pension liability/(asset) - ending (a) - (b)($559,547)($317,669)($164,913)($127,994)
Plan fiduciary net position as a percentage of the total pension liability 320%217%173%231%
Covered payroll N/A N/A N/A N/A
Net pension liability as a percentage of covered employee payroll N/A N/A 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.
Additional years will be reported as they become available.
See accompanying notes to the required supplementary information.
95
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION Statement 17
SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION
For The Last Ten Years
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 - - - N/A N/A
2018 - - - N/A N/A
2019 - - - N/A N/A
2020 - - - 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. available
Additional years will be reported as they become
See accompanying notes to the required supplementary information.
96
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2019
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. The previous actuarial valuation included a liability for benefits provided to the beneficiary of
a deceased employee. As of the most recent actuarial valuation date, the beneficiary was not enrolled in the
City’s plan, but has been assigned a 20% probability of returning to the plan.
Note C PENSION INFORMATION
PERA – General Employees Retirement Fund
2020 Changes in Actuarial Assumptions:
The price inflation assumption was decreased from 2.50% to 2.25%.
The payroll growth assumption was decreased from 3.25% to 3.00%.
As recommended in the June 30, 2019 experience study, assumed salary increase rates were
decreased 0.25% and assumed rates of retirement were changed resulting in more unreduced
(normal) retirements and slightly fewer Rule of 90 and early retirements. Assumed rates of
termination and disability were also changed.
The base mortality tables were changed from RP-2014 tables to Pub-2010 tables, with
adjustments.
The mortality improvement scale was changed from Scale MP-2018 to Scale MP-2019.
The assumed spouse age difference was changed from two years older for females to one year
older.
The assumed number of married male new retirees electing the 100% Joint & Survivor option
changed from 35% to 45%. The assumed number of married female new retirees electing the
100% Joint & Survivor option changed from 15% to 30%. The corresponding number of married
new retirees electing the Life annuity option was adjusted accordingly.
2020 Changes in Plan Provisions:
Augmentation for current privatized members was reduced to 2.0% for the period July 1, 2020
through December 31, 2023 and 0.0% after. Augmentation was eliminated for privatizations
occurring after June 30, 2020.
2019 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
2019 Changes in the Plan Provisions:
The employer supplemental contribution was changed prospectively, decreasing from $31.0
million to $21.0 million per year. The State’s special funding contribution was changed
prospectively, requiring $16.0 million due per year through 2031.
2018 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2015 to MP-2017.
97
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2019
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.
PERA – Public Employees Police and Fire Fund
2020 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2018 to MP-2019.
2019 Changes in Actuarial Assumptions:
The mortality projection scale was changed from MP-2017 to MP-2018.
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% lower than the previous rates.
Assumed rates of retirement were changed, resulting in fewer retirements.
The Combined Service Annuity (CSA) load was 30% for vested and non-vested deferred
members. The CSA has been changed to 33% 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%.
98
CITY OF LINO LAKES, MINNESOTA
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO RSI
December 31, 2019
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.
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100
COMBINING AND INDIVIDUAL NONMAJOR
FUND FINANCIAL STATEMENTS AND SCHEDULES
101
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102
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for specified purposes.
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and payment of,
interest, principal and related costs on general long-term debt.
CAPITAL PROJECT FUNDS
Capital Project Funds account for financial resources to be used for the acquisition or
construction of major capital facilities (other than those financed by Proprietary Funds).
PERMANENT FUNDS
Permanent Funds account for financial resources that are legally restricted to the extent that only
earnings, and not the principal, may be used for purposes that support the City’s programs.
The City maintains one permanent fund – the Environment and Stewardship Fund. This fund
accounts for the use of funds received for environmental maintenance and improvements in the
Foxborough area, as well as funds received for the Preserve area.
103
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET Statement 18
NONMAJOR GOVERNMENTAL FUNDS
December 31, 2020
Permanent
Fund Total
Environment & Nonmajor
Special Debt Capital Stewardship Governmental
Revenue Service Project Fund Funds
Assets
Cash and investments $750,910 $5,003,913 $6,264,591 $158,419 $12,177,833
Due from other governments - - 16,585 - 16,585
Accounts receivable - net 3,084 - 1,855 - 4,939
Prepaid items 2,076 - - - 2,076
Advances to other funds - - 683,093 - 683,093
Taxes receivable:
Due from county - - 35,031 - 35,031
Special assessments receivable:
Due from county - 2,279 3,450 - 5,729
Delinquent - - 7,736 - 7,736
Deferred - 634,133 250,261 - 884,394
Interfund loan receivable - - 2,317,533 - 2,317,533
Total assets $756,070 $5,640,325 $9,580,135 $158,419 $16,134,949
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $319 $3,180 $214,728 $10,450 $228,677
Advances from other funds - - 839,403 - 839,403
Retainage payable - - 844 - 844
Total liabilities 319 3,180 1,054,975 10,450 1,068,924
Deferred inflows of resources:
Unavailable revenue - 634,133 257,997 - 892,130
Fund balance:
Nonspendable 2,076 - - 100,000 102,076
Restricted 283,628 5,003,330 2,068,015 47,969 7,402,942
Committed 470,047 - - - 470,047
Assigned - - 7,003,837 - 7,003,837
Unassigned - (318) (804,689) - (805,007)
Total fund balance 755,751 5,003,012 8,267,163 147,969 14,173,895
Total liabilities, deferred inflows
of resources, and fund balance $756,070 $5,640,325 $9,580,135 $158,419 $16,134,949
104
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 19
CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
For The Year Ended December 31, 2020
Permanent
Fund Total
Environment & Nonmajor
Special Debt Capital Stewardship Governmental
Revenue Service Project Fund Funds
Revenues:
General property taxes $ - $2,122,799 $ - $ - $2,122,799
Tax increment - - 766,912 - 766,912
Special assessments - 119,630 69,532 - 189,162
Intergovernmental 1,619,509 - 249,015 1,868,524
Charges for services 65,831 - 956,388 - 1,022,219
Fines and forfeits 83,468 - - - 83,468
Investment earnings 16,530 75,200 163,576 3,749 259,055
Miscellaneous 7,747 38,219 202 8,800 54,968
Total revenues 1,793,085 2,355,848 2,205,625 12,549 6,367,107
Expenditures:
Current:
General government 1,260,698 - 51,716 - 1,312,414
Public safety 21,283 - - - 21,283
Public services 6,969 - 993,636 10,450 1,011,055
Community development - - 263,882 - 263,882
Capital outlay:
General government 358,811 - 46,499 - 405,310
Public safety 28,272 - 108,019 - 136,291
Public services - - 1,400,169 - 1,400,169
Debt service:
Principal - 2,360,000 - - 2,360,000
Interest and fiscal charges - 618,096 - - 618,096
Total expenditures 1,676,033 2,978,096 2,863,921 10,450 7,528,500
Revenues over (under) expenditures 117,052 (622,248) (658,296)2,099 (1,161,393)
Other financing sources (uses):
Transfers in - 1,437,681 1,792,056 - 3,229,737
Transfers out - - (1,090,690) - (1,090,690)
Issuance of debt - - 294,235 - 294,235
Proceeds from sale of capital assets - - 240,842 - 240,842
Total other financing sources (uses)0 1,437,681 1,236,443 0 2,674,124
Net change in fund balance 117,052 815,433 578,147 2,099 1,512,731
Fund balance - January 1 638,699 4,187,579 7,689,016 145,870 12,661,164
Fund balance - December 31 $755,751 $5,003,012 $8,267,163 $147,969 $14,173,895
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106
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
legally restricted to expenditures for particular purposes. The City maintained the following
nonmajor Special Revenue Funds during the year.
Program Recreation – established to account for various self-supporting recreational
programs.
Economic Development Authority – established to account for the receipt and uses of
funds for economic development purposes.
Cable TV and Communications Fund – established to account for activities relating to
Cable TV and Communications.
Blue Heron Days – established to account for the activities associated with the Blue
Heron Days festival.
Federal Forfeitures - Justice – established to account for activities associated with the
receipt and use of equitable sharing paid from the U.S. Department of Justice Asset
Forfeiture Fund.
State Narcotics Forfeitures – 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.
Federal Forfeitures - Treasury – established to account for activities associated with the
receipt and use of equitable sharing paid from the U.S. Department of Treasury Forfeiture
Fund.
K-9 Unit – accounts for donations received by the City which are restricted for K-9 Unit
purposes.
Coronavirus Relief Funds – accounts for CARES funds received by the City.
107
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR SPECIAL REVENUE FUNDS
December 31, 2020
203 204 Cable
201 Economic TV and
Program Development Communications 205 Blue
Recreation Authority Fund Heron Days
Assets
Cash and investments $19,935 $238,500 $209,070 $12,729
Accounts receivable - net 2,642 - - 442
Prepaid items 1,778 - - 298
Total assets $24,355 $238,500 $209,070 $13,469
Liabilities and Fund Balance
Liabilities:
Accounts payable $100 $ - $ - $ -
Total liabilities 100 - - -
Fund balance:
Nonspendable 1,778 - - 298
Restricted - - - 13,171
Committed 22,477 238,500 209,070 -
Total fund balance 24,255 238,500 209,070 13,469
Total liabilities and fund balance $24,355 $238,500 $209,070 $13,469
108
Statement 20
Total
206 210 Nonmajor
Federal 207 State Federal Special
Forfeitures - Narcotics 208 DUI 209 Other Forfeitures - 211 K-9 Revenue
Justice Forfeitures Forfeitures Forfeitures Treasury Unit Funds
$14,073 $75,698 $68,479 $1,568 $88,529 $22,329 $750,910
- - - - - - 3,084
- - - - - - 2,076
$14,073 $75,698 $68,479 $1,568 $88,529 $22,329 $756,070
$ - $ - $ - $ - $ - $219 $319
- - - - - 219 319
- - - - - - 2,076
14,073 75,698 68,479 1,568 88,529 22,110 283,628
- - - - - - 470,047
14,073 75,698 68,479 1,568 88,529 22,110 755,751
$14,073 $75,698 $68,479 $1,568 $88,529 $22,329 $756,070
109
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, 2020
203 204 Cable
201 Economic TV and
Program Development Communications 205 Blue
Recreation Authority Fund Heron Days
Revenues:
Intergovernmental $ - $ - $ - $ -
Charges for services 1,672 - 64,159 -
Fines and forfeits - - - -
Investment earnings 806 3,786 4,878 515
Miscellaneous - - - 2,000
Total revenues 2,478 3,786 69,037 2,515
Expenditures:
Current:
General government - - - -
Public safety - - - -
Public services 6,508 - - 461
Capital outlay:
General government - - - -
Public safety - - - -
Total expenditures 6,508 0 0 461
Revenues over (under) expenditures (4,030)3,786 69,037 2,054
Fund balance - January 1 28,285 234,714 140,033 11,415
Fund balance - December 31 $24,255 $238,500 $209,070 $13,469
110
Statement 21
Total
206 210 Nonmajor
Federal 207 State Federal 212 Special
Forfeitures - Narcotics 208 DUI 209 Other Forfeitures - 211 K-9 Coronavirus Revenue
Justice Forfeitures Forfeitures Forfeitures Treasury Unit Relief Funds Funds
- $ - $ - $ - $ - $ - $1,619,509 $1,619,509
- - - - - - - 65,831
11,338 59,115 12,550 465 - - - 83,468
286 1,813 1,698 41 2,152 555 - 16,530
- - - - - 5,747 - 7,747
11,624 60,928 14,248 506 2,152 6,302 1,619,509 1,793,085
- - - - - - 1,260,698 1,260,698
1,944 15,013 2,637 502 - 1,187 - 21,283
- - - - - - - 6,969
- - - - - - 358,811 358,811
15,198 - 10,465 - - 2,609 - 28,272
17,142 15,013 13,102 502 0 3,796 1,619,509 1,676,033
(5,518) 45,915 1,146 4 2,152 2,506 0 117,052
19,591 29,783 67,333 1,564 86,377 19,604 - 638,699
$14,073 $75,698 $68,479 $1,568 $88,529 $22,110 $0 $755,751
111
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112
DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment
of, interest, principal and related costs on general long-term debt. The City’s Debt Service Funds
account for four types of bonded indebtedness:
General Debt Bonds – are repaid primarily from property taxes.
Improvement Bonds and Notes – are repaid primarily from special assessments.
Public Facility Lease Revenue Bonds – are repaid primarily from lease revenues received
from the EDA leasing the buildings to the City of Lino Lakes and other tenants.
Revenue Bonds – these bonds were issued to finance various improvements and will be
repaid primarily from pledged revenues derived from the constructed assets.
Capital Note – this note was issued to finance cable communications equipment and will
be repaid from revenues derived from franchise fees.
113
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR DEBT SERVICE FUNDS
December 31, 2020
332 G.O. 336 G.O. 337 G.O.
315 TIF 335 G.O. Improvement Improvement
Certificates Bonds Bonds Bonds Bonds
of Indebtedness of 2007A of 2012A of 2013A of 2014A
Assets
Cash and investments $291,473 $150,014 $214,199 $394,144 $673,531
Special assessments receivable:
Due from county - - - - -
Deferred - - - 197,951 -
Total assets $291,473 $150,014 $214,199 $592,095 $673,531
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $318 $318 $318 $318
Deferred inflows of resources:
Unavailable revenue - - - 197,951 -
Fund balance:
Restricted 291,473 149,696 213,881 393,826 673,213
Unassigned - - - - -
Total fund balance 291,473 149,696 213,881 393,826 673,213
Total liabilities, deferred inflows of
resources, and fund balance $291,473 $150,014 $214,199 $592,095 $673,531
114
Statement 22
339 EDA 341 G.O. 343 G.O. Total
Lease 340 G.O. Utility Tax 345 G.O. Nonmajor
338 G.O. Revenue Capital Revenue Abatement 344 G.O. Utility Revenue Debt
Bonds Bonds Note Bonds Bonds Bonds Bonds Service
of 2015A of 2015B of 2016A of 2016A of 2016C of 2018A of 2020A Funds
$644,885 $321,054 $1,600 $270,474 $410,362 $1,632,177 $ - $5,003,913
- - - - - 2,279 - 2,279
- - - - - 436,182 - 634,133
$644,885 $321,054 $1,600 $270,474 $410,362 $2,070,638 $0 $5,640,325
$318 $318 $ - $318 $318 $318 $318 $3,180
- - - - - 436,182 - 634,133
644,567 320,736 1,600 270,156 410,044 1,634,138 - 5,003,330
- - - - - - (318)(318)
644,567 320,736 1,600 270,156 410,044 1,634,138 (318) 5,003,012
$644,885 $321,054 $1,600 $270,474 $410,362 $2,070,638 $0 $5,640,325
115
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR DEBT SERVICE FUNDS
For The Year Ended December 31, 2020
334 G.O.
332 G.O. Improvement 336 G.O. 337 G.O.
315 TIF and Utility 335 G.O. Improvement Improvement
Certificates of Bonds Bonds Bonds Bonds Bonds
Indebtedness of 2007A of 2010A of 2012A of 2013A of 2014A
Revenues:
General property taxes $572,788 $ - $ - $178,080 $ - $ -
Special assessments - - - - 39,000 346
Investment earnings 9,261 - - 2,369 9,051 14,025
Miscellaneous - - - - - -
Total revenues 582,049 0 0 180,449 48,051 14,371
Expenditures:
Debt service:
Principal 532,000 215,000 115,000 160,000 60,000 380,000
Interest and fiscal charges 13,512 46,844 4,825 11,338 11,918 22,606
Total expenditures 545,512 261,844 119,825 171,338 71,918 402,606
Revenues over (under) expenditures 36,537 (261,844) (119,825)9,111 (23,867) (388,235)
Other financing sources (uses):
Transfers in - 261,844 120,180 - - 132,817
Total other financing sources (uses)0 261,844 120,180 0 0 132,817
Net change in fund balance 36,537 0 355 9,111 (23,867) (255,418)
Fund balance - January 1 254,936 149,696 (355) 204,770 417,693 928,631
Fund balance - December 31 $291,473 $149,696 $0 $213,881 $393,826 $673,213
116
Statement 23
339 EDA 341 G.O. 343 G.O. Total
Lease 340 G.O. Utility Tax Nonmajor
338 G.O. Revenue Capital Revenue Abatement 344 G.O. 345 G.O. Debt
Bonds Bonds Note Bonds Bonds Bonds Bonds Service
of 2015A of 2015B of 2016A of 2016A of 2016C of 2018A of 2020A Funds
$271,228 $317,297 $ - $ - $301,570 $481,836 $ - $2,122,799
- - - - - 80,284 - 119,630
11,608 5,105 406 3,245 5,108 15,022 - 75,200
- - 38,219 - - - - 38,219
282,836 322,402 38,625 3,245 306,678 577,142 0 2,355,848
200,000 175,000 33,000 140,000 260,000 90,000 - 2,360,000
59,498 127,806 5,219 22,018 14,088 278,106 318 618,096
259,498 302,806 38,219 162,018 274,088 368,106 318 2,978,096
23,338 19,596 406 (158,773) 32,590 209,036 (318) (622,248)
- - - 163,100 - 759,740 - 1,437,681
0 0 0 163,100 0 759,740 0 1,437,681
23,338 19,596 406 4,327 32,590 968,776 (318) 815,433
621,229 301,140 1,194 265,829 377,454 665,362 - 4,187,579
$644,567 $320,736 $1,600 $270,156 $410,044 $1,634,138 ($318) $5,003,012
117
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118
CAPITAL PROJECT FUNDS
Capital Project Funds account for the acquisition or construction of major capital facilities other
than those financed by Proprietary Funds. The City maintained the following nonmajor Capital
Project Funds during the year:
Closed Bond Fund – to account for excess funds from matured bond issues.
Building and Facilities – to account for the activities associated with the maintenance and
replacement of municipal buildings and facilities.
Capital Equipment Revolving – to account for proceeds from Equipment Certificates and
funds held to purchase capital equipment.
Office Equipment Revolving – to account for the receipt and use of funds for office
equipment purchases.
Dedicated Parks – to account for the receipts and use of monies collected from park
dedication fees.
Tax Increment Financing Funds – to account for development projects financed with tax
increments.
Pavement Management – 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.
2040 Comp Plan Update – this fund accounts for the financing sources received and
expenditures incurred to update the City’s 2040 Comprehensive Plan.
Cedar Street Reconstruction – this fund accounts for the activities relating to the
construction of roadway improvements on East Cedar Street & Elmcrest Avenue North.
119
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120
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET Statement 24
NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2
December 31, 2020
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Assets
Cash and investments $ - $217,039 $613,188 $58,860 $1,327,880
Due from other governments - - - - -
Accounts receivable - net - 1,855 - - -
Advances to other funds 683,093 - - - -
Taxes receivable:
Due from county - - - - -
Special assessments receivable:
Due from county 1,369 - - - -
Delinquent 4,801 - - - -
Deferred 7,309 - - - -
Interfund loan receivable - 2,317,533 - - -
Total assets $696,572 $2,536,427 $613,188 $58,860 $1,327,880
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $2,500 $32,532 $ - $ -
Advances from other funds - - - - -
Retainage payable - - - - 844
Total liabilities 0 2,500 32,532 0 844
Deferred inflows of resources:
Unavailable revenue 12,110 - - - -
Fund balance:
Restricted - - - - 1,327,036
Assigned 684,462 2,533,927 580,656 58,860 -
Unassigned - - - - -
Total fund balance 684,462 2,533,927 580,656 58,860 1,327,036
Total liabilities, deferred inflows of
resources, and fund balance $696,572 $2,536,427 $613,188 $58,860 $1,327,880
121
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING BALANCE SHEET
NONMAJOR CAPITAL PROJECT FUNDS
December 31, 2020
411 Tax 417 Tax 418 Tax 419 Tax 421
Increment Increment Increment Increment Pavement
Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Management
Assets
Cash and investments $405,626 $201,829 $ - $235,110 $541,085
Due from other governements - - - - -
Accounts receivable - net - - - - -
Advances to other funds - - - - -
Taxes receivable:
Due from county - - 34,970 61 -
Special assessments receivable:
Due from county - - - - -
Delinquent - - - - -
Deferred - - - - -
Interfund loan receivable - - - - -
Total assets $405,626 $201,829 $34,970 $235,171 $541,085
Liabilities, Deferred Inflows of Resources, and Fund Balance
Liabilities:
Accounts payable $ - $ - $256 $101,647 $42,680
Advances from other funds - - 839,403 - -
Contracts payable - - - - -
Total liabilities 0 0 839,659 101,647 42,680
Deferred inflows of resources:
Unavailable revenue - - - - -
Fund balance:
Restricted 405,626 201,829 - 133,524 -
Assigned - - - - 498,405
Unassigned - - (804,689) - -
Total fund balance 405,626 201,829 (804,689) 133,524 498,405
Total liabilities, deferred inflows of
resources, and fund balance $405,626 $201,829 $34,970 $235,171 $541,085
122
Statement 24
Page 2 of 2
Total
422 Surface 424 Surface 425 484 486 Nonmajor
Water 423 Street Water Park and Trail Comp Plan Cedar Street Capital
Management Reconstruction Maintenance Improvements Update Reconstruction Project Funds
$1,550,300 $557,958 $259,489 $269,604 $23,369 $3,254 $6,264,591
- - - - 16,000 585 16,585
- - - - - - 1,855
- - - - - - 683,093
- - - - - - 35,031
1,659 422 - - - - 3,450
2,935 - - - - - 7,736
192,038 50,914 - - - - 250,261
- - - - - - 2,317,533
$1,746,932 $609,294 $259,489 $269,604 $39,369 $3,839 $9,580,135
$4,227 $ - $27,026 $ - $21 $3,839 $214,728
- - - - - - 839,403
- - - - - - 844
4,227 0 27,026 0 21 3,839 1,054,975
194,973 50,914 - - - - 257,997
- - - - - - 2,068,015
1,547,732 558,380 232,463 269,604 39,348 - 7,003,837
- - - - - - (804,689)
1,547,732 558,380 232,463 269,604 39,348 0 8,267,163
$1,746,932 $609,294 $259,489 $269,604 $39,369 $3,839 $9,580,135
123
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCE
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2020
402 Capital 403 Office 405
301 Closed 401 Building Equipment Equipment Dedicated
Bond Fund and Facilities Revolving Revolving Parks
Revenues:
Tax increment $ - $ - $ - $ - $ -
Special assessments 12,620 - - - -
Intergovernmental - - - - -
Charges for services - 204,173 - - 557,500
Investment earnings 15,863 3,636 19,056 1,582 25,046
Miscellaneous - - - - 202
Total revenues 28,483 207,809 19,056 1,582 582,748
Expenditures:
Current:
General government 3,903 34,945 - 12,868 -
Public services - - - - 13,570
Community development - - - - -
Capital outlay:
General government - 46,499 - - -
Public safety - - 104,903 3,116 -
Public services - - 261,688 - 142,468
Total expenditures 3,903 81,444 366,591 15,984 156,038
Revenues over (under) expenditures 24,580 126,365 (347,535) (14,402) 426,710
Other financing sources (uses):
Transfers in - - - 25,000 -
Transfers out (382,789) - - - -
Issuance of debt - - 294,235 - -
Proceeds from sale of capital assets - - 15,365 - -
Total other financing sources (uses) (382,789)0 309,600 25,000 0
Net change in fund balance (358,209) 126,365 (37,935)10,598 426,710
Fund balance - January 1 1,042,671 2,407,562 618,591 48,262 900,326
Fund balance - December 31 $684,462 $2,533,927 $580,656 $58,860 $1,327,036
124
Statement 25
Page 1 of 2
411 Tax 417 Tax 418 Tax 419 Tax 421 422 Surface
Increment Increment Increment Increment Pavement Water 423 Street
Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Management Management Reconstruction
$51,006 $170,339 $290,062 $255,505 $ - $ - $ -
- - - - - 44,478 12,434
- - - - - - -
- - - - 36,630 158,085 -
9,822 5,821 - 3,076 17,674 31,229 14,632
- - - - - - -
60,828 176,160 290,062 258,581 54,304 233,792 27,066
- - - - - - -
- - - - 846,047 9,076 -
52,732 1,590 4,403 205,157 - - -
- - - - - - -
- - - - - - -
- - - - 51,863 24,360 -
52,732 1,590 4,403 205,157 897,910 33,436 0
8,096 174,570 285,659 53,424 (843,606)200,356 27,066
- - - - 870,563 - -
- (170,339) (290,062) - - - (247,500)
- - - - - - -
- - - - - 225,477 -
0 (170,339) (290,062)0 870,563 225,477 (247,500)
8,096 4,231 (4,403)53,424 26,957 425,833 (220,434)
397,530 197,598 (800,286)80,100 471,448 1,121,899 778,814
$405,626 $201,829 ($804,689) $133,524 $498,405 $1,547,732 $558,380
125
CITY OF LINO LAKES, MINNESOTA
SUBCOMBINING STATEMENT OF REVENUES,Statement 25
EXPENDITURES AND CHANGES IN FUND BALANCE Page 2 of 2
NONMAJOR CAPITAL PROJECT FUNDS
For The Year Ended December 31, 2020
Total
424 Surface 425 484 2040 486 Nonmajor
Water Park and Trail Comp Plan Cedar Street Capital
Maintenance Improvements Update Reconstruction Project Funds
Revenues:
Tax increment $ - $ - $ - $ - $766,912
Special assessments - - - - 69,532
Intergovernmental - - 16,000 233,015 249,015
Charges for services - - - - 956,388
Investment earnings 7,001 9,012 126 - 163,576
Miscellaneous - - - - 202
Total revenues 7,001 9,012 16,126 233,015 2,205,625
Expenditures:
Current:
General government - - - - 51,716
Public services 84,556 30,000 10,387 - 993,636
Community development - - - - 263,882
Capital outlay:
General government - - - - 46,499
Public safety - - - - 108,019
Public services - 148,116 - 771,674 1,400,169
Total expenditures 84,556 178,116 10,387 771,674 2,863,921
Revenues over (under) expenditures (77,555) (169,104)5,739 (538,659) (658,296)
Other financing sources (uses):
Transfers in 130,000 115,000 25,000 626,493 1,792,056
Transfers out - - - - (1,090,690)
Issuance of debt - - - - 294,235
Proceeds from sale of capital assets - - - - 240,842
Total other financing sources (uses) 130,000 115,000 25,000 626,493 1,236,443
Net change in fund balance 52,445 (54,104)30,739 87,834 578,147
Fund balance - January 1 180,018 323,708 8,609 (87,834) 7,689,016
Fund balance - December 31 $232,463 $269,604 $39,348 $0 $8,267,163
126
CITY OF LINO LAKES, MINNESOTA
SPECIAL REVENUE FUND - PROGRAM RECREATION Statement 26
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
For The Year Ended December 31, 2020
Budgeted Amounts
2020 Actual
Amounts
Variance with
Final Budget -
Positive
(Negative)
Original Final
Revenues:
Charges for services $77,690 $77,690 $1,672 ($76,018)
Investment earnings - - 806 806
Total revenues 77,690 77,690 2,478 (75,212)
Expenditures:
Public services:
Current:
Personal services 52,653 52,653 1,072 51,581
Supplies 17,170 17,170 4,873 12,297
Contractual services 12,656 12,656 563 12,093
Total expenditures 82,479 82,479 6,508 75,971
Revenues over (under) expenditures (4,789) (4,789) (4,030)759
Other financing sources (uses):
Transfers in 11,500 - - -
Net change in fund balance $6,711 ($4,789) (4,030)$759
Fund balance - January 1 28,285
Fund balance - December 31 $24,255
127
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128
STATISTICAL SECTION (UNAUDITED)
129
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130
This part of the City of Lino Lakes, Minnesota's Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note disclosures
and required supplementary information says about the City's overall financial health.
Table
Number
Financial Trends Tables 1-4
These tables contain trend information to help the reader understand how the City's financial
performance and well-being have changed over time.
Revenue Capacity Tables 5-8
These tables contain information to help the reader assess the City's most significant local
revenue source, the property tax.
Debt Capacity Tables 9-12
These tables present information to help the reader assess the affordability of the City's current
levels of outstanding debt and the City's ability to issue additional debt in the future.
Demographic and Economic Information Tables 13-14
These tables offer demographic and economic indicators to help the reader understand the
environment wihthin which the City's financial activities take place.
Operating Information Tables 15-17
These tables contain service and infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the City provides and the
activities it performs.
STATISTICAL SECTION (UNAUDITED)
Contents
131
CITY OF LINO LAKES, MINNESOTA
NET POSITION BY COMPONENT
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Governmental activities:
Net investment in capital assets $24,600,103 $22,166,342 $22,241,821 $19,540,807
Restricted 11,598,803 11,595,112 11,000,033 8,666,357
Unrestricted 13,463,210 17,639,038 16,849,636 20,527,704
Total governmental activities net position $49,662,116 $51,400,492 $50,091,490 $48,734,868
Business-type activities:
Net investment in capital assets $29,216,866 $28,798,095 $28,423,284 $27,556,022
Unrestricted 11,201,362 12,102,013 12,999,182 13,888,278
Total business-type activities net position $40,418,228 $40,900,108 $41,422,466 $41,444,300
Primary government:
Net investment in capital assets $53,816,969 $50,964,437 $50,665,105 $47,096,829
Restricted 11,598,803 11,595,112 11,000,033 8,666,357
Unrestricted 24,664,572 29,741,051 29,848,818 34,415,982
Total primary government net position $90,080,344 $92,300,600 $91,513,956 $90,179,168
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
2015 2016 2017 2018 2019 2020
$18,230,746 $18,597,344 $22,868,259 $24,640,555 $28,433,053 $31,960,308
8,635,293 13,342,852 11,730,147 10,579,817 12,390,431 13,446,203
13,888,120 10,187,254 12,017,212 16,577,520 17,640,035 18,686,238
$40,754,159 $42,127,450 $46,615,618 $51,797,892 $58,463,519 $64,092,749
$29,127,829 $31,860,610 $31,831,950 $32,709,079 $36,390,820 $43,366,197
14,672,630 13,863,447 14,846,045 15,570,827 16,237,228 16,054,144
$43,800,459 $45,724,057 $46,677,995 $48,279,906 $52,628,048 $59,420,341
$47,358,575 $50,457,954 $54,700,209 $57,349,634 $64,823,873 $75,326,505
8,635,293 13,342,852 11,730,147 10,579,817 12,390,431 13,446,203
28,560,750 24,050,701 26,863,257 32,148,347 33,877,263 34,740,382
$84,554,618 $87,851,507 $93,293,613 $100,077,798 $111,091,567 $123,513,090
133
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Expenses
Governmental activities:
General government $1,990,137 $1,883,961 $1,566,388 $2,036,550
Public safety 4,019,101 4,046,415 3,950,197 4,107,759
Public services 9,329,451 6,795,150 5,376,671 5,880,030
Conservation of natural resources 139,544 184,051 141,204 159,649
Community development 617,747 430,121 404,726 407,448
Interest and fees on long-term debt 927,535 837,755 951,842 618,680
Total governmental activities expenses 17,023,515 14,177,453 12,391,028 13,210,116
Business-type activities:
Water 966,643 949,121 927,800 965,641
Sewer 1,638,063 1,527,637 1,584,395 1,628,258
Total business-type activities expenses 2,604,706 2,476,758 2,512,195 2,593,899
Total primary government expenses $19,628,221 $16,654,211 $14,903,223 $15,804,015
Program revenues
Governmental activities:
Charges for services:
General government $103,687 $129,151 $93,118 $103,072
Public safety 713,985 642,745 697,584 763,470
Public services 593,263 668,128 632,002 621,221
Conservation of natural resources 4,392 19,297 1,347 1,882
Community development 5,138 16,940 28,118 39,395
Operating grants and contributions 593,798 450,179 527,368 840,676
Capital grants and contributions 7,347,613 5,125,693 941,960 335,733
Total governmental activities program revenues 9,361,876 7,052,133 2,921,497 2,705,449
Business-type activities:
Charges for services:
Water 1,090,104 1,371,809 1,208,742 965,425
Sewer 1,494,188 1,505,781 1,516,397 1,564,099
Operating grants and contributions - - - 263,024
Capital grants and contributions 1,462 20,018 883 1,035
Total business-type activities 2,585,754 2,897,608 2,726,022 2,793,583
Total primary government program revenues $11,947,630 $9,949,741 $5,647,519 $5,499,032
134
Table 2
Page 1 of 2
2015 2016 2017 2018 2019 2020
$2,016,351 $2,456,864 $2,395,633 $2,345,386 $2,466,130 $4,197,819
5,135,865 6,567,523 5,166,538 4,749,394 5,053,511 4,867,134
7,971,712 6,228,893 5,492,395 5,384,522 5,810,919 4,118,477
186,111 216,905 200,016 201,590 183,982 161,556
432,268 454,144 459,455 576,794 686,421 660,660
632,876 831,529 518,897 414,607 498,587 733,207
16,375,183 16,755,858 14,232,934 13,672,293 14,699,550 14,738,853
1,394,897 1,367,693 1,245,249 1,332,755 1,322,811 1,532,282
2,089,842 1,850,962 1,901,821 1,964,471 2,002,711 2,199,865
3,484,739 3,218,655 3,147,070 3,297,226 3,325,522 3,732,147
$19,859,922 $19,974,513 $17,380,004 $16,969,519 $18,025,072 $18,471,000
$818,468 $520,231 $550,117 $562,816 $612,237 $587,888
199,498 1,359,426 2,249,152 1,591,658 1,255,363 1,235,829
603,866 865,327 801,633 448,009 1,273,900 1,106,248
- - - - - -
- - - - - -
526,107 722,858 1,106,014 861,429 870,532 2,470,024
1,176,732 5,046,307 4,141,383 5,187,023 6,820,419 6,894,207
3,324,671 8,514,149 8,848,299 8,650,935 10,832,451 12,294,196
1,014,836 1,094,897 1,150,834 1,217,589 1,172,580 1,341,559
1,621,633 1,659,322 1,698,963 1,753,712 1,771,143 1,803,231
263,024 - - - - 42,152
3,035,031 1,543,947 836,029 1,242,032 2,894,794 2,887,266
5,934,524 4,298,166 3,685,826 4,213,333 5,838,517 6,074,208
$9,259,195 $12,812,315 $12,534,125 $12,864,268 $16,670,968 $18,368,404
135
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET POSITION
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2011 2012 2013 2014
Net (expense) revenue:
Governmental activities ($7,661,639) ($7,125,320) ($9,469,531) ($10,504,667)
Business-type activities (18,952) 420,850 213,827 199,684
Total primary government, net (7,680,591) (6,704,470) (9,255,704) (10,304,983)
General revenues and other changes in net position:
Governmental activities:
Property taxes 8,768,805 8,610,709 8,563,595 8,806,886
Unrestricted grants and contributions 4,072 4,941 4,442 4,443
Unrestricted investment earnings 251,250 202,828 (54,204) 265,695
Gain on disposal of capital assets 37,579 4,175 - 1,727
Special item - withdrawal from fire district - - - -
Transfers 66,122 41,043 (353,304)69,294
Total governmental activities 9,127,828 8,863,696 8,160,529 9,148,045
Business-type activities:
Unrestricted investment earnings 126,215 102,073 (44,773) 154,468
Transfers (66,122)(41,043) 353,304 (69,294)
Total business-type activities 60,093 61,030 308,531 85,174
Total primary government $9,187,921 $8,924,726 $8,469,060 $9,233,219
Change in net position:
Governmental activities $1,466,189 $1,738,376 ($1,309,002) ($1,356,622)
Business-type activities 41,141 481,880 522,358 284,858
Total primary government change in net position $1,507,330 $2,220,256 ($786,644) ($1,071,764)
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
2015 2016 2017 2018 2019 2020
($13,050,512) ($8,241,709) ($5,384,635) ($5,021,358) ($3,867,099) ($2,444,657)
2,449,785 1,079,511 538,756 916,107 2,512,995 2,342,061
(10,600,727) (7,162,198) (4,845,879) (4,105,251) (1,354,104) (102,596)
9,243,236 9,343,500 9,753,971 10,229,691 10,706,977 11,259,043
5,363 91,385 181,712 59,508 38,926 47,188
112,961 210,142 207,792 369,485 1,029,944 684,384
17,836 66,255 38,022 17,318 68,472 150,041
- 1,333,166 - - - -
66,834 (914,414)(308,694)(472,370) (1,311,593) (4,066,269)
9,446,230 10,130,034 9,872,803 10,203,632 10,532,726 8,074,387
51,167 107,119 106,488 213,434 523,554 383,963
(66,834)914,414 308,694 472,370 1,311,593 4,066,269
(15,667)1,021,533 415,182 685,804 1,835,147 4,450,232
$9,430,563 $11,151,567 $10,287,985 $10,889,436 $12,367,873 $12,524,619
($3,604,282) $1,888,325 $4,488,168 $5,182,274 $6,665,627 $5,629,730
2,434,118 2,101,044 953,938 1,601,911 4,348,142 6,792,293
($1,170,164) $3,989,369 $5,442,106 $6,784,185 $11,013,769 $12,422,023
137
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2011 2012 2013 2014
General Fund:
Nonspendable $165,079 $180,786 $176,797 $253,471
Committed - - - -
Unassigned 5,440,101 5,053,031 5,209,286 5,053,064
Total general fund $5,605,180 $5,233,817 $5,386,083 $5,306,535
All other governmental funds:
Nonspendable 906,010 823,113 101,710 101,302
Restricted 2,658,010 3,041,524 3,651,550 2,830,526
Committed 110,568 115,196 121,075 152,078
Assigned 10,808,268 15,573,179 15,710,702 18,027,773
Unassigned (3,154,496) (3,262,728) (3,393,547) (375,851)
Total all other governmental funds $11,328,360 $16,290,284 $16,191,490 $20,735,828
Total all funds $16,933,540 $21,524,101 $21,577,573 $26,042,363
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
2015 2016 2017 2018 2019 2020
$220,677 $225,114 $243,317 $286,186 $296,907 $315,224
- - - - 443,900 425,000
5,725,736 6,031,077 6,573,608 6,599,956 6,052,388 6,787,498
$5,946,413 $6,256,191 $6,816,925 $6,886,142 $6,793,195 $7,527,722
101,177 101,220 101,659 101,998 102,842 102,076
2,637,638 6,502,424 5,289,641 9,824,255 6,650,462 8,206,540
163,239 170,950 175,401 182,613 175,485 470,047
15,022,852 15,778,480 14,581,669 19,195,652 19,672,706 18,943,415
(3,815,304) (978,496) (2,909,173) (2,935,459) (3,171,161) (3,129,676)
$14,109,602 $21,574,578 $17,239,197 $26,369,059 $23,430,334 $24,592,402
$20,056,015 $27,830,769 $24,056,122 $33,255,201 $30,223,529 $32,120,124
139
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
Last Ten Fiscal Years
2011 2012 2013 2014
Revenues:
Property taxes $8,655,971 $8,560,340 $8,475,214 $8,612,011
Licenses and permits 322,030 319,172 431,654 407,681
Intergovernmental 1,331,914 5,267,570 500,963 823,025
Special assessments 904,522 816,998 2,130,519 1,278,202
Charges for services 812,604 744,633 717,300 731,640
Fines and forfeits 154,020 155,956 119,079 149,653
Investment earnings 251,244 202,825 (53,466) 265,794
Miscellaneous 460,710 414,088 384,749 767,477
Total revenues 12,893,015 16,481,582 12,706,012 13,035,483
Expenditures:
Current:
General government 1,773,515 1,619,215 1,569,722 1,692,175
Public safety 3,791,329 3,861,265 3,744,957 3,845,732
Public services 3,251,923 4,396,406 3,956,766 4,156,497
Conservation of natural resources 134,122 176,318 134,127 149,292
Community development 624,286 435,154 418,533 402,750
Capital outlay 4,209,593 616,931 291,135 674,488
Debt service:
Principal 2,030,000 2,145,000 2,214,000 3,664,000
Interest and fiscal charges 983,129 831,875 774,172 696,780
Bond issuance costs - 47,054 17,137 -
Total expenditures 16,797,897 14,129,218 13,120,549 15,281,714
Excess (deficiency) of revenues over expenditures (3,904,882) 2,352,364 (414,537) (2,246,231)
Other financing sources (uses):
Proceeds from sale of capital assets 50,953 4,175 16,727 1,727
Insurace recovery - - - -
Issuance of debt 120,000 2,165,000 808,000 3,140,000
Premium on bonds issued - - 6,558 -
Payment to refunded bond escrow agent - - (435,000) -
Loan payable reapportionment (565,000) - - -
Transfers in 2,971,715 1,979,457 1,722,541 2,608,534
Transfers out (2,905,593) (1,910,435) (1,650,817) (2,539,240)
Total other financing sources (uses)(327,925) 2,238,197 468,009 3,211,021
Special item - withdrawal from fire district - - - -
Net change in fund balance ($4,232,807) $4,590,561 $53,472 $964,790
Debt service as a percentage of noncapital expenditures 23.9%22.0%23.3%29.9%
Debt service as a percentage of total expenditures 17.9%21.1%22.8%28.5%
140
Table 4
2015 2016 2017 2018 2019 2020
$8,950,507 $9,369,090 $9,772,741 $10,215,761 $10,685,592 $11,232,374
551,202 895,581 1,447,571 1,260,046 941,569 972,450
679,627 706,944 1,080,953 3,453,300 688,389 2,597,744
703,141 4,400,635 2,283,974 2,005,970 1,935,178 987,053
696,501 1,293,556 1,327,781 1,003,896 1,862,803 1,609,627
127,803 251,653 613,593 137,940 131,936 160,279
112,915 210,142 207,792 369,485 1,029,944 684,384
766,072 417,448 410,640 323,379 265,130 246,599
12,587,768 17,545,049 17,145,045 18,769,777 17,540,541 18,490,510
1,643,966 1,845,667 1,952,669 1,948,909 2,007,741 3,412,600
11,895,482 4,333,080 4,360,517 4,575,957 4,720,122 4,744,173
4,779,696 3,203,837 3,414,412 3,148,058 3,538,624 3,083,366
191,038 201,635 183,392 199,026 207,919 160,884
422,935 425,402 433,144 572,910 680,419 665,405
1,566,057 3,044,615 2,152,848 3,469,208 7,444,939 6,387,441
2,802,511 2,769,525 8,058,525 3,130,600 2,815,075 2,855,000
542,166 816,362 640,029 437,659 562,471 629,282
62,831 98,906 - - - -
23,906,682 16,739,029 21,195,536 17,482,327 21,977,310 21,938,151
(11,318,914)806,020 (4,050,491)1,287,450 (4,436,769) (3,447,641)
54,522 72,182 103,328 49,391 77,986 240,842
- - - - 711,854 -
8,606,250 5,464,000 311,000 7,218,900 388,535 4,624,235
114,960 41,497 - 401,193 - 435,623
- - - - - -
- - - - - -
3,392,971 3,521,180 6,984,443 4,266,440 2,777,663 4,122,789
(3,336,137) (3,241,959) (7,122,927) (4,024,295) (2,550,941) (4,079,253)
8,832,566 5,856,900 275,844 7,911,629 1,405,097 5,344,236
- 1,111,834 - - - -
($2,486,348) $7,774,754 ($3,774,647) $9,199,079 ($3,031,672) $1,896,595
15.0%26.2%45.4%25.5%23.2%23.8%
14.0%21.4%41.0%20.4%15.4%15.9%
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
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
2019 18,920,892 3,294,449 471,895 22,687,236 41.82 2,082,803,803
2020 20,781,383 3,686,997 419,457 24,887,837 39.87 2,294,753,477
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
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
2019 33.875 7.942 41.817 35.984 34.473 5.300 75.757 117.574
2020 31.803 8.067 39.870 34.059 33.078 5.048 72.185 112.055
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
AX Lino Lakes LP $398,754 1 1.60% $ - - -
Biynah MN WI LLC 349,912 2 1.41% - - -
US Home Corporation 243,725 3 0.98% - - -
Target Corporation 239,248 4 0.96% 241,894 1 1.23%
Northern States Power Co 231,476 5 0.93% - - -
Minnegasco Inc 176,296 6 0.71% - - -
Lino Lakes Assisted Living LLC 167,796 7 0.67% - - -
LLAH Limited Partnership 144,733 8 0.58% - - -
Gargaro Properties LLC 123,474 9 0.50% 97,920 7 0.50%
Tomas Commercial Real Estate Holdings LLC 104,240 10 0.42% - - -
Lino Lakes Realty LLC - - 227,648 2 1.15%
Xcel Energy - - 152,398 3 0.77%
Moline Concrete Products - - 140,306 4 0.71%
Kohl's Department Store - - 130,194 5 0.66%
Taylor Corporation - - 111,778 6 0.57%
EOC Lino Lakes LLC - - 96,246 8 0.49%
Marmon/Keystone Corp - - 89,250 9 0.45%
Royal Oaks Realty Inc - - 79,789 10 0.40%
Total $2,179,654 8.76% $1,367,423 6.93%
Source: Anoka County
2020 2011
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
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%
2019 8,193,124 1,862,292 10,055,416 9,981,243 99.3%
2020 8,368,756 2,122,762 10,491,518 10,415,622 99.3%
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
$127,296 $8,614,141 99.5%$45,859 0.5%
78,631 8,174,133 99.4%53,126 0.6%
70,352 8,165,263 99.4%50,365 0.6%
42,365 8,272,351 99.7%23,693 0.3%
26,865 8,657,695 99.7%28,377 0.3%
10,021 9,032,985 99.7%25,443 0.3%
15,974 9,455,662 99.6%36,193 0.4%
33,231 9,762,703 99.9%14,029 0.1%
45,842 10,027,085 99.7%28,331 0.3%
- 10,415,622 99.3%75,896 0.7%
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
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 -
2019 18,952,364 2,855,000 169,950 -
2020 22,190,202 1,805,000 136,950
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 2020 from the Bureau of Economic Analysis Report
148
Table 9
Total Percentage Percentage
Primary of Assessed of Personal Per
Government Market Value Income Capita
$21,506,000 1.19%0.16%1,049
21,121,000 1.29%0.15%1,024
19,280,000 1.27%0.13%925
18,756,000 1.24%0.12%888
24,717,291 1.46%0.15%1,205
27,741,081 1.63%0.17%1,334
19,976,243 1.10%0.12%946
24,452,838 1.25%0.14%1,145
21,977,314 1.03%0.12%994
24,132,152 1.05%(1)1,077
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
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
2019 18,952,364 2,855,000 21,807,364
2020 22,190,202 1,805,000 23,995,202
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)
$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
986 4,772,799 17,034,565 0.80%765
1,071 5,399,895 18,595,307 0.81%830
151
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11
As of December 31, 2020
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable*Debt
Overlapping debt:
Anoka County $61,405,000 6.1%$3,764,510
ISD 12 88,547,738 43.1%38,189,664
ISD 624 324,205,000 3.1%10,028,252
ISD 831 161,160,000 7.1%11,363,427
Metropolitan Council 1,688,625,662 0.6%9,611,081
Anoka County Railroad Authority 20,280,000 6.1%1,243,291
Total overlapping 74,200,225
City of Lino Lakes direct debt 24,132,152 100%24,132,152
Total direct and overlapping debt $98,332,377
*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 2020
Market value $2,384,497,900
Applicable percentage 3%
Debt limit 71,534,937
Debt applicable to limit:
Total bonded debt 24,132,152
Less:
Special assessment bonds (1,805,000)
Tax abatement bonds (870,000)
Tax increment bonds (1,020,000)
Utility revenue bonds (7,220,000)
13,217,152
Legal debt margin $58,317,785
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
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
2019 21,650 65,496,045 13,637,314 51,858,731 20.82% 630
2020 22,410 71,534,937 13,217,152 58,317,785 18.48% 590
Legal Debt Margin Calculation for Fiscal Years 2011 Through 2020
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
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 1,094,205 51,258 6,558 3.9%
2019 21,650 1,131,213 52,250 6,641 3.2%
2020 22,410 Not available Not available 6,654 4.8%
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)
State of Minnesota Corrections 478 1 26.1% 432 1 24.0%
ISD 12 - Centennial Schools 391 2 21.4% 362 2 20.1%
Target Corporation 200 3 10.9% 260 3 14.4%
Molin Concrete Products 130 4 7.1% 120 6 6.7%
Rehbein Transit, Inc.130 5 7.1% 100 8 5.6%
Anoka County Juvenile Center 130 6 7.1%86 9 4.8%
Kohls 123 7 6.7% 121 5 6.7%
Distribution Alternatives 120 8 6.6% - - -
City of Lino Lakes 67 9 3.7% - - -
Northern Wholesale 61 10 3.3% - - -
Curtis 1000 (AdGraphics/Taylor Corp) - - - 130 4 7.2%
YMCA - - - 120 7 6.7%
Nol-Tech Systems, Inc. - - - 70 10 3.9%
Total 1,830 1,801
(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
2020 2011
155
CITY OF LINO LAKES, MINNESOTA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2011 2012 2013 2014
General Government:
Administration 3.50 3.50 3.50 3.50
Seniors - - - -
Finance 3.00 3.00 3.00 3.00
Economic Development 1.00 1.00 - -
Planning 1.00 1.00 1.00 1.00
Community Development 2.00 2.00 2.00 2.00
Building - - - -
Other 0.70 0.70 0.70 0.70
Total General Government 11.20 11.20 10.20 10.20
Public Safety:
Sworn Officers 25.00 25.00 25.00 25.00
Civilians 4.00 3.00 3.00 4.00
Fire - - - 1.00
Building Inspection 2.50 2.50 2.50 2.00
Total Public Safety 31.50 30.50 30.50 32.00
Public Works:
Streets 7.00 7.00 7.00 7.00
Other 1.00 1.00 1.00 1.00
Total Public Works 8.00 8.00 8.00 8.00
Parks, Recreation and Forestry 9.00 9.00 8.70 8.70
Water 2.15 2.15 2.30 2.30
Sewer 2.15 2.15 2.30 2.30
Total 64.00 63.00 62.00 63.50
Source: City Finance Office
Full-Time-Equivalent Employees as of December 31,
156
Table 15
2015 2016 2017 2018 2019 2020
3.50 4.00 4.00 4.00 4.00 4.00
- - - - - -
3.00 3.50 3.50 3.50 3.50 3.10
- - - - - -
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 0.65 0.65 0.65 0.65 0.625
10.20 11.15 11.15 11.15 11.15 10.73
26.00 27.00 27.00 27.00 27.00 27.00
4.00 4.50 4.50 4.00 4.00 4.00
1.00 1.50 1.50 1.50 1.50 1.50
2.00 2.50 2.50 2.50 3.50 3.50
33.00 35.50 35.50 35.00 36.00 36.00
7.00 6.50 6.65 6.65 6.65 6.50
1.00 1.50 1.50 1.50 1.50 1.50
8.00 8.00 8.15 8.15 8.15 8.00
8.70 7.75 7.90 6.90 6.90 5.78
2.30 2.30 2.70 3.20 3.20 3.25
2.30 2.30 2.70 3.20 3.20 3.25
64.50 67.00 68.10 67.60 68.60 67.00
Full-Time-Equivalent Employees as of December 31,
157
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION/PROGRAM
Last Ten Fiscal Years
2011 2012 2013 2014
General Government:
Elections 1 2 1 2
Registered voters 11,705 13,478 12,020 12,610
Number of votes cast 4,314 11,546 1,575 7,854
Voter participation (registered) 36.9% 85.7% 13.1% 62.3%
Public Safety:
Police:
Calls for Service 6,384 6,344 6,210 6,281
Traffic Citations & Warnings 2,604 2,694 2,597 2,296
Part I Crime Rate 1,117 983 918 631
Part II Crime Rate 2,911 2,396 2,144 1,836
Police:
Case Numbers Generated
Avg Response Time (Emergency & Non-Emergency)
Part I Crime Offenses
Part II Crime Offenses
Group A
Group B
Clearance Rate
Fire:
Fire Call Load
Fire Property Loss
Fire Property Saved
Fire Inspections
Inspections:
Building Permits (1) (2) 452 459 490 431
Value of Building Permits $11,192,264 $10,751,626 $17,683,665 $13,535,514
Other Permits
Public Works:
General Maintenance (hours)7,416 6,939 3,994 5,200
Street Mantenance (hours)4,352 5,926 5,740 3,840
Fleet Maintenance (hours)4,214 3,945 4,548 4,746
Snow Plowing/Sanding (hours)1,534 594 1,639 2,141
Culture and Recreation:
Parks
Park Maintenance (hours)9,813 9,739 8,480 8,537
Utilities:
Water Maintenance (hours)3,568 3,585 3,119 3,189
Sanitary Sewer Maintenance (hours)3,557 3,517 3,109 3,178
(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.
(4) Transition to FBI Uniform Crime Reporting NIBRS (National Incident Based Reporting System) in 2019.
January -July 2019 SRS, August-Dec 2019 NIBRS.
Source: Various City Departments
158
Table 16
2015 2016 2017 2018 2019 2020
121214
12,143 13,636 12,624 12,860 13,312 14,964
4,085 11,562 2,165 10,738 3,075 13,505
33.6%84.8%17.1%83.5%23.1%90.2%
6,210 6,210 (3) (3) (3) (3)
2,199 2,199 (3) (3) (3) (3)
1,226 1,091 (3) (3) (3) (3)
2,395 3,635 (3) (3) (3) (3)
16,321 18,199 14,487 13,973 13,214
5:26 minutes 4:42 minutes 5:16 minutes 5:53 minutes 6:41 minutes
224 176 195 93 (4)(4)
746 808 587 304 (4)(4)
266 (4)778
98 (4)217
73%82%69%60%48%
269 316 356 379 371
$694,000 $325,100 $205,200 $246,600 $241,450
$10,511,300 $6,342,100 $1,791,500 $7,548,100 $13,682,450
53 117 107 98 60
654 761 5,422 3,281 1,107 882
$26,570,593 $53,390,619 $50,984,047 $50,990,945 $41,766,531 $51,686,278
880 985 1,023 1,183 1,254
7,839 5,534 6,313 420 7,420 5,407
3,347 4,053 3,765 12,418 4,328 4,317
4,322 4,437 3,986 2,648 3,504 3,390
754 960 928 2,117 2,130 1,232
8,332 9,698 8,576 9,027 9,610 8,113
3,240 3,539 3,278 4,080 3,944 3,645
3,240 3,539 3,278 4,080 3,944 3,645
159
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 2 2 2 2 2 2
Fire Trucks 5 5 5 5 7 7 8 8 8 8
Public Works:
Lights 673 673 673 673 673 815 838 854 859 859
Vehicles 29 29 29 29 29 39 39 39 39 39
City Streets (miles)100.7 100.7 100.7 100.7 100.7 100.7 100.7 106.9 108.2 104.6 (1)
Culture & Recreation:
Parks:
Parks 18 18 18 18 18 17 18 19 19 19
Park Acres 141 141 141 141 141 139.6 147 152 152 152
Asphalt Trails (miles)26 26 26 26 26 29.75 30 30 30 28 (2)
Concrete Trails (miles)- - - - - - - - - 7 (2)
Boardwalk (miles)- - - - - - - - - 0 (2)
Park Shelters 6 6 6 6 6 6 6 7 7 7
Basketball Courts 6 6 6 6 6 6 6 7 7 7
Fishing Pier 1 1 1 1 1 1 - - - -
Skating Rinks 4 4 4 4 4 4 3 3 3 3
Soccer Fields 8 8 8 8 8 6 4 4 4 4
Baseball/Softball Fields 20 20 20 20 20 8 8 8 8 8
Tennis Courts 2 2 2 2 2 2 - - 1 1
Playgrounds 16 16 16 16 16 15 16 17 17 17
Water:
Distribution System (miles)74.7 74.7 74.7 74.7 74.7 85.6 99.4 89.0 89.5 91.8
Water Connections 4,424 4,452 4,484 4,520 4,542 4,649 4,738 4,919 4,990 5,175
Gallons Pumped (millions)492 609 536 536 449 452 494 508 493 547
Number of Fire Hydrants 538 538 538 538 1,024 1,024 1,028 942 937 1,013
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 77.9 77.9 87.0 79.5 80.1 80.1
Sewer Connections 4,567 4,567 4,624 4,685 4,685 4,817 4,976 5,102 5,276 5,439
Storm Sewer:
Pipe (miles)41.4 41.4 41.4 41.4 41.4 53.7 54.1 55.0 55.6 49.86 (1)
Source: Various City Departments
(1) Decrease due to reclassification of ownership.
(2) In 2020, trails were broken out between asphalt trail, concrete sidewalk, and boardwalk.
160
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COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund and the aggregate remaining fund information of the City of Lino
Lakes, Minnesota (the City) for the year ended December 31, 2020. Professional standards
require that we provide you with information about our responsibilities under generally accepted
auditing standards and Government Auditing Standards and the Uniform Guidance, as well as
certain information related to the planned scope and timing of our audit. We have communicated
such information in our letter to you dated January 6, 2021. Professional standards also require
that we communicate to you the following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The
significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies
was not changed during 2020. We noted no transactions entered into by the City during the year
for which there is a lack of authoritative guidance or consensus. All significant transactions have
been recognized in the financial statements in the proper period
Accounting estimates are an integral part of the financial statements prepared by management
and are based on management’s knowledge and experience about past and current events and
assumptions about future events. Certain accounting estimates are particularly sensitive because
of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. The most sensitive estimates
affecting the City’s financial statements were the discount rate used to measure the net pension
liability and management’s estimate relating to the collectability of Legacy at Woods Edge
receivables (see page 3). The discount rate is based on actuarial studies and the collectability of
receivables is based on anticipated development. We evaluated the key factors and assumptions
used to develop these estimates in determining that they are reasonable in relation to the financial
statements taken as a whole.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 2
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. Determining sensitivity is subjective, however, we believe the
disclosures most likely to be considered sensitive are Note 6 – Long-Term Debt, Note 10A –
Deficit Fund Balances and Note 19 – Subsequent Events.
The financial statement disclosures are neutral, consistent and clear.
Difficulties Encountered in Performing the Audit
We encountered no difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are clearly trivial, and communicate them to the
appropriate level of management. There were no uncorrected misstatements that have an effect
on our opinion on the financial statements. There were no corrected misstatements identified
during the audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting,
or auditing matter, whether or not resolved to our satisfaction, that could be significant to the
financial statements or the auditor’s report. We are pleased to report that no such disagreements
arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated May 28, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the City’s financial statements or
a determination of the type of auditor’s opinion that may be expressed on those statements, our
professional standards require the consulting accountant to check with us to determine that the
consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 3
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the City’s auditors.
However, these discussions occurred in the normal course of our professional relationship and
our responses were not a condition to our retention.
Receivables related to the Legacy at Woods Edge Development
At December 31, 2020, the balance of receivables related to the Legacy at Woods Edge
Development was $6,710,425. The receivables are presented in the financial statements as
special assessments receivable ($2,994,379) and interfund loans receivable ($3,716,046).
Collection of these amounts is dependent upon receiving sufficient proceeds from land sales and
tax increment. Management believes all amounts are collectible.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis, the
budgetary comparison information, and the schedules of OPEB and pension information, which
are required supplementary information (RSI) that supplement the basic financial statements.
Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide
any assurance on the RSI.
We were engaged to report on the combining and individual nonmajor fund financial statements
and schedules, which accompany the financial statements but are not RSI. With respect to this
supplementary information, we made certain inquiries of management and evaluated the form,
content, and methods of preparing the information to determine that the information complies
with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and
complete in relation to our audit of the financial statements. We compared and reconciled the
supplementary information to the underlying accounting records used to prepare the financial
statements or to the financial statements themselves.
We were not engaged to report on the introductory or statistical sections, which accompany the
financial statements but are not RSI. Such information has not been subjected to the auditing
procedures applied in the audit of the basic financial statements, and accordingly, we do not
express an opinion or provide any assurance on it.
City of Lino Lakes, Minnesota
Communication With Those Charged With Governance
Page 4
Restriction on Use
This information is intended solely for the information and use of the City Council and
management of the City of Lino Lakes, Minnesota and is not intended to be, and should not be,
used by anyone other than these specified parties.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 28, 2021
55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
MINNESOTA LEGAL COMPLIANCE REPORT
To the Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited, 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, the financial statements of the
governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City of Lino Lakes, Minnesota as of and for the year ended
December 31, 2020, and the related notes to the financial statements, which collectively
comprise the City’s basic financial statements, and have issued our report thereon dated May 28,
2021.
In connection with our audit, nothing came to our attention that caused us to believe that the City
of Lino Lakes, Minnesota failed to comply with the provisions of the contracting and bidding,
deposits and investments, conflicts of interest, public indebtedness, claims and disbursements,
miscellaneous provisions and tax increment financing sections of the Minnesota Legal
Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minnesota
Statute § 6.65, insofar as they relate to accounting matters. However, our audit was not directed
primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed
additional procedures, other matters may have come to our attention regarding the City’s
noncompliance with the above referenced provisions, insofar as they relate to accounting
matters.
The purpose of this report is solely to describe the scope of our testing of compliance and the
results of that testing, and not to provide an opinion on compliance. Accordingly, this
communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 28, 2021
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF EXPENDITURES OF
FEDERAL AWARDS AND
INDEPENDENT AUDITOR’S REPORTS
For The Year Ended December 31, 2020
- This page intentionally left blank -
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page No.
Independent Auditor’s Report on Internal Control over Financial
Reporting and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance with
Government Auditing Standards 1
Independent Auditor’s Report on Compliance for Each
Major Program and on Internal Control over Compliance
and Report on the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Schedule of Findings and Questioned Costs 7
- This page intentionally left blank -
55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS
To The Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the City of Lino Lakes, Minnesota, as of and for the
year ended December 31, 2020, and the related notes to the financial statements, which
collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements, and have
issued our report thereon dated May 28, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of Lino
Lakes, Minnesota’s internal control over financial reporting (internal control) as a basis for
designing audit procedures that are appropriate in the circumstances for the purpose of
expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the City of Lino Lakes, Minnesota’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Lino Lakes,
Minnesota’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or a combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
1
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Lino Lakes, Minnesota’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the financial statements. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the City of Lino Lakes, Minnesota’s internal control or on compliance. This report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the
City of Lino Lakes, Minnesota’s internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 28, 2021
2
55 E 5th Street Suite 1400, St. Paul, MN, 55101 651.426.7000 www.redpathcpas.com
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE AND REPORT ON
THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS REQUIRED BY THE
UNIFORM GUIDANCE
To The Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
Report on Compliance for Each Major Federal Program
We have audited the City of Lino Lakes, Minnesota’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and
material effect on the City of Lino Lakes, Minnesota’s major federal program for the year ended
December 31, 2020. The City of Lino Lakes, Minnesota’s major federal program is identified in
the summary of auditor’s results section of the accompanying schedule of findings and
questioned costs.
Management’s Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for the City of Lino Lakes,
Minnesota‘s major federal program based on our audit of the types of compliance requirements
referred to above. We conducted our audit of compliance in accordance with auditing standards
generally accepted in the United States of America; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United
States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a
major federal program occurred. An audit includes examining, on a test basis, evidence about
the City of Lino Lakes, Minnesota’s compliance with those requirements and performing such
other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each
major federal program. However, our audit does not provide a legal determination of the City of
Lino Lakes, Minnesota’s compliance
3
Opinion on the Major Federal Program
In our opinion, the City of Lino Lakes, Minnesota complied, in all material respects, with the
types of compliance requirements referred to above that could have a direct and material effect
on its major federal program for the year ended December 31, 2020.
Report on Internal Control Over Compliance
Management of the City of Lino Lakes, Minnesota is responsible for establishing and
maintaining effective internal control over compliance with the types of compliance
requirements referred to above. In planning and performing our audit of compliance, we
considered the City of Lino Lakes, Minnesota’s internal control over compliance with the types
of requirements that could have a direct and material effect on a major federal program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and to test and report on
internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance.
Accordingly, we do not express an opinion on the effectiveness of the City of Lino Lakes,
Minnesota’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal
control over compliance that might be material weaknesses or significant deficiencies. We did
not identify any deficiencies in internal control over compliance that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
4
Report on Schedule of Expenditures of Federal Awards Required by the Uniform
Guidance
We have audited the financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Lino
Lakes, Minnesota as of and for the year ended December 31, 2020, and the related notes to the
financial statements, which collectively comprise the City of Lino Lakes, Minnesota’s basic
financial statements. We have issued our report thereon dated May 28, 2021, which contained
unmodified opinions on those financial statements. Our audit was conducted for the purpose of
forming our opinions on the financial statements that collectively comprise the basic financial
statements. The accompanying Schedule of Expenditures of Federal Awards is presented for the
purposes of additional analysis as required by the Uniform Guidance and is not a required part of
the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare
the basic financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic financial statements as a
whole.
Purpose of This Report
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
REDPATH AND COMPANY, LTD.
St. Paul, Minnesota
May 28, 2021
5
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Year Ended December 31, 2020
Federal
Federal Grantor/Pass-Through Grantor CFDA Pass-Through Entity Federal
Program or Cluster Title Number Identifying Number Expenditures
U.S. Department of Treasury
Passed through State of Minnesota Department of Revenue:
COVID-19 - Coronavirus Relief Fund 21.019 None provided 1,608,289$
Passed through Anoka County:
COVID-19 - Coronavirus Relief Fund 21.019 None provided 11,220
Total U.S. Department of Treasury 1,619,509
U.S. Department of Justice
Direct:
Equitable Sharing Fund 21.016 n/a 17,142
Total U.S. Department of Justice 17,142
Total Federal Expenditures 1,636,651$
Notes to the Schedule of Expenditures of Federal Awards:
Note 1 Basis of Presentation and Summary of Significant Accounting Policies
The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of federal award programs
expended by the City of Lino Lakes, Minnesota under programs of the federal government for the year ended
December 31, 2020. The Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations, Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of
Lino Lakes, Minnesota, it is not intended to and does not present the financial positions, or change in financial
position of the City of Lino Lakes, Minnesota. The expenditures on this Schedule are on the modified accrual basis
of accounting. Pass-through entity identifying numbers are presented where available.
Note 2 Indirect Cost Rate
The City of Lino Lakes, Minnesota has not charged any indirect costs to any of the federal programs. Therefore,
the election of the de minimus cost rate is not applicable.
6
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 31, 2020
SECTION I - SUMMARY OF AUDIT RESULTS
Financial Statements
A. Type of auditors’ report issued:Unmodified
B. Internal control over financial reporting:
Material weakness(es) identified? Yes X No
Significant deficiencies identified that are not
considered to be material weaknesses?
Yes X None
reported
C. Noncompliance material to financial statements
noted?
Yes X No
Federal Awards
D. Internal control over major programs:
Material weakness(es) identified? Yes X No
Significant deficiencies identified that are not
considered to be material weaknesses?
Yes X None
reported
E. Type of auditors’ report issued on compliance for
major programs:
Unmodified
F. Any audit findings disclosed that are required to be
reported in accordance with Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit
Requirements for Federal Awards?
Yes X None
reported
G. Identification of major programs:
Name of Federal Program CFDA Number
COVID-19 – Coronavirus Relief Fund 21.019
H. Dollar threshold used to distinguish between Type A
and Type B programs:
$750,000
I. Auditee qualified as a low-risk auditee: Yes X No
7
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended December 31, 2020
SECTION II – FINANCIAL STATEMENT FINDINGS
There were no financial statement findings for 2020.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
There were no federal award findings or questioned costs for 2020.
SECTION IV – PRIOR YEAR FINDINGS
There were no financial statement findings for 2019.
No prior year single audit was performed, therefore, there were no prior year findings.
8
City of Lino Lakes, Minnesota
2020 Audit
June 7, 2021
Andy Hering, CPA
Phone: 651-407-5877
Email: ahering@redpathcpas.com
1
Reports Issued by Auditor
Opinion on the Fair Presentation of the Financial Statements
Report on Minnesota Legal Compliance
Report on Internal Controls over Financial Reporting
Report on Compliance for Each Major Program and on
Internal Control over Compliance –aka the “Single Audit”
Communication to Those Charged with Governance
2
Results
Opinion on the Fair Presentation of the Financial Statements
Unmodified audit opinion
Minnesota Legal Compliance Report
No findings
Report on Internal Controls over Financial Reporting
No findings
Report on Compliance for Each Major Program and on
Internal Control Over Compliance
No findings
Communication With Those Charged with Governance
Standard communications from auditor to governing body
3
Opinion on Financial Statements –Audit Process
December 2020 and January 2021
Planning and preliminary testing
January –March 2021
City staff accumulate data, record year-end accruals, prepare audit
workpapers, and close the books on 2020
April 2021
Auditor receives trial balance and workpapers; audit planning is
finalized
Audit fieldwork began April 26
May 2021
Financial statements are drafted by the auditor, reviewed by finance
staff. Transmittal letter and MD&A are prepared.
Final audit reports issued May 28
4
Opinion on Financial Statements –Audit Process
Audit Fieldwork –auditor performs tests to verify:
Occurrence: recorded transactions and events occurred and pertain
to the City
Completeness: all transactions and events that should have been
recorded have been recorded
Accuracy, Cutoff, Classification: amounts are accurately recorded in
the correct year and in the correct accounts
Data mining techniques
Journal entries
Disbursement register
5
Report on Minnesota Legal Compliance
What did we do?
•Followed the audit guide published by the Office of the State Auditor. The
guide consists of seven sections:
–Depositories of public funds and investments
–Conflicts of interest
–Public indebtedness
–Contracting bid laws
–Claims and disbursements
–Tax increment
–Miscellaneous provisions
How did we do it?
•Select sample of transactions to test for compliance with statutory provisions.
What is the result?
•No legal compliance findings.
6
Report on Internal Controls over Financial Reporting
What did we do?
We gained an understanding of internal controls in place and their
effectiveness in order to design our audit procedures.
How did we do it?
Obtain understanding of controls on each major class of transaction
and account balance.
Select a sample of transactions and perform detailed tests to
determine adherence to controls in place and effectiveness.
What is the result?
No internal control findings.
7
Report on Compliance for Each Major Program and
on Internal Control over Compliance (Single Audit)
•What did we do?
Tested the City’s internal controls related to compliance
Tested the City’s compliance with federal programs
•How did we do it?
Verified the City’s written policies and procedures relating to
compliance were in place and effectively operating
Determined that the City adhered to the compliance requirements in
the OMB Compliance Supplement
•What is the result?
No findings
8
The Single Audit
•Required to be performed when an entity expends $750,000+
of federal dollars
•Major Programs are determined and tested
•City had one major program: Coronavirus Relief Fund
•$1,619,509 was received and expended during 2020
•Depending on the major program, different compliance
requirements are required to be tested
•A Data Collection Form along with the City’s financial
statements are filed with the Federal Audit Clearinghouse
9
The Single Audit
Compliance Requirements tested include:
•Activities allowed or unallowed
•Allowable costs
•Period of performance
10
American Rescue Plan Act
•The American Rescue Plan will deliver $350 billion for eligible
state, local, territorial and Tribal governments
•Included in this amount is $130 billion in Coronavirus State
and Local Fiscal Recovery Funds (CSLFRF)
•Based on initial estimates, the City’s share of the CSLFRF funds
is approximately $2.3 million
•Coverage period: March 3, 2021 –December 31, 2024*
* If contractually obligated by 12/31/24, need to expend by 12/31/26
11
American Rescue Plan Act
Eligible uses include:
•Support public health response
•Address negative economic impacts
•Replace public sector revenue loss
•Premium pay for essential workers
•Water and sewer infrastructure
•Broadband infrastructure
12
Communication to Those Charged with Governance
No new accounting policies or standards for 2020
Accounting estimates in the financial statements
•The discount rate used to measure the net pension liability
•Receivable collections related to Legacy at Woods Edge
No difficulties encountered or disagreements with
management
Corrected and Uncorrected Misstatements
Other Matters
•Legacy at Woods Edge receivables ($6,710,000)
•Property tax collection rate –99.75% for 2020.
13
Summary of Financial Activity
14
Notes:
•$659,000 of excess funds from the 2018 Street Reconstruction project were
transferred to the 2018 bond fund
•Enterprise funds –unrestricted fund balance decreased $183,000 to $16.1M
Change Fund Cash
Debt in Fund Balance Balance
Fund Type Revenue Expenditures Issued Transfers Balance 12/31/2020 12/31/2020
General Fund $10,597,000 $9,311,000 $ - ($551,000)$735,000 $7,528,000 $9,497,000
Special Revenue Funds 1,793,000 1,676,000 - - 117,000 756,000 751,000
Debt Service Funds 2,397,000 3,484,000 - 1,861,000 774,000 2,678,000 5,400,000
Capital Project Funds 3,932,000 7,457,000 5,060,000 (1,267,000)268,000 21,010,000 19,346,000
Permanent Funds 12,000 10,000 - - 2,000 148,000 158,000
Enterprise Funds 10,568,000 3,732,000 - (43,000)6,793,000 59,420,000 15,505,000
Total $29,299,000 $25,670,000 $5,060,000 $ - $8,689,000 $91,540,000 $50,657,000
General Fund Summary
15
Favorable
Final (Unfavorable)
Budget Actual Variance
Revenues $10,440,000 $10,597,000 $157,000
Expenditures 9,724,000 9,311,000 413,000
Revenues over expenditures 716,000 1,286,000 570,000
Other financing sources (uses):
Transfers - net (551,000)(551,000) -
Net change in fund balance $165,000 $735,000 $570,000
General Fund 5 Year History
16
Fund Balance
Interfund Ending as a Percent of
Transfers Increase Fund Expenditures &
Revenues Expenditures (Net)(Decrease)Balance Transfers Out
2020 $10,597,000 $9,311,000 ($551,000)$735,000 $7,528,000 73%
2019 11,231,000 10,637,000 (687,000)(93,000)6,793,000 63%
2018 10,770,000 9,407,000 (1,294,000)69,000 6,886,000 64%
2017 10,245,000 9,244,000 (440,000)561,000 6,817,000 67%
2016 9,417,000 8,904,000 (203,000)310,000 6,256,000 65%
General Fund Monthly Cash Balances
17
Enterprise Funds –Cash Flow
18
2020 2019 2020 2019
Water Water Sewer Sewer
Fund Fund Fund Fund
Cash flows from:
Operating activities $479,000 $517,000 $71,000 $259,000
Investment income 150,000 210,000 234,000 314,000
Transfers (127,000)(227,000)84,000 -
Acquisition of capital assets (778,000)(350,000)(330,000) -
Increase in cash (276,000)150,000 59,000 573,000
Cash - January 1 6,172,000 6,022,000 9,550,000 8,977,000
Cash - December 31 $5,896,000 $6,172,000 $9,609,000 $9,550,000
WS – Item 3
WORK SESSION STAFF REPORT
Work Session Item No. 3
Date: June 7, 2021
To: City Council
From: Hannah Lynch, Finance Director
Re: Electronic Municipal Payments
Background
The city’s financial software has recently expanded their cashless payment system to
include payments for licenses and fees such as land use application fees, sign permit, park
shelter reservation, dog licenses, police report copies, liquor licenses, burning permit,
special event permit, etc. Implementing electronic municipal payments for these licenses
and fees is already included and integrated with the financial software at no additional
cost. The decision that needs to be made is whether the city will cover the credit card
transaction fees or if those will be passed through to the customer.
Credit card payments are currently accepted for utility bills and building permits. The city
pays the credit card fees for utility billing transactions, but passes the fees along to the
customer for building permit transactions.
Utility billing credit card processing is integrated with the financial software. Each card
processed has a $1.00 per transaction fee as well as a fee charged by Visa or Mastercard
which is typically $0.65 or $0.75 per transaction.
Building permit credit card processing is not integrated with the financial software, but is
integrated with the building permit software. The fee passed through to the customer is
3.5% per transaction plus an additional $0.75 if the payment is less than $100.00. There
is also an option to process an eChecking or eSavings payment at a flat fee of $1.00 per
transaction.
Similar to utility billing credit card processing, each card processed for these other
municipal payments would have a $0.50 per transaction fee as well as a fee charged by
Visa or Mastercard which is typically $0.65 or $0.75 per transaction. It should be noted
that Visa and Mastercard dictate that only up to 4% of the transaction can be passed along
to the customer in fees so, in order to fully recoup all fees, credit cards payments could
only be accepted for municipal payments over $30.00. That would leave transactions
such as police and park fees with only the ability to pay by cash or check.
Staff recommends that the city pay the transaction fees for these municipal payments
since the exposure with the fixed fees is minimal. If needed, staff can look at increases to
the fee schedule in the future to recoup some of the transaction fees.
Requested Council Direction
Consider accepting electronic municipal payments with the transaction fees covered by
the city.
Attachments
None
WS – 4
WORK SESSION STAFF REPORT
Work Session Item No. 4
Date: June 7, 2021
To: City Council
From: Julie Bartell, City Clerk
Lisa Hogstad-Osterhues, Deputy City Clerk
Re: Liquor License Fees
Background
The City issues licenses for on-sale intoxicating beverage sales on an annual basis, with
the license period running from July 1 through June 30. City staff is in the process of
receiving renewal applications for the upcoming license period.
City staff has been looking at measures that could provide relief to impacted liquor
license holders for the coming license period. Many cities have approved or are
considering license fee waivers for the year ahead.
Restaurants and bars in the City that hold these licenses have, for the past year, been
impacted by Governor Walz’s emergency mandates related to the COVID 19 virus.
From ordered closure to mandates requiring smaller operations, these establishments
have been economically impacted.
In an effort to provide support to these Lino Lakes’ businesses, the council previously
authorized the refund of four months of license fees as liquor license holders were unable
to be open to the public. At this point, license holders have received a two month refund.
The additional two month credit is approved to be applied on the 2021-2022 renewals.
The City Council is being asked to consider a waiver of an additional 10 months for the
2021-2022 annual license period. The refund would apply only to On-Sale Liquor, On-
Sale Wine, On-Sale Beer, On-Sale Club, On-Sale Taproom and Sunday Sales licenses.
Investigation fees are not included.
Under recent guidance provided on the American Rescue Plan, it is expected that loss of
revenue (such as license fees) will be reimbursable through the Plan.
Attachments
List of Business/License Fees
Requested Council Direction
Staff requests the council’s direction on the waiver of certain liquor license fees for the
upcoming renewal period. If authorized, staff would request action at a future council
meeting.
License Type Business Name Type of License
12 Month Fee for
License
Liquor American Legion On-Sale Club/Sunday $300/$200 $500.00
Liquor The Tavern on Main On-Sale/Sunday $4,500/$200 $4,700.00
Liquor Trapper's Bar & Grill On-Sale/Sunday $4,500/$200 $4,700.00
Liquor Chomonix Golf Course On-Sale/Sunday $4,500/$200 $4,700.00
Liquor Fiesta Cancun On-Sale/Sunday $4,500/$200 $4,700.00
Liquor Don Julio On-Sale/Sunday $4,500/$200 $4,700.00
Liquor El Zocala Grill On-Sale/Sunday $4,500/$200 $4,700.00
Liquor Hammerheart TR On-Sale/Sunday $500/$200 $700.00
Liquor Chili Sushi & Thai Beer/Wine $300/$500 $800.00
Liquor Campanelle On-Sale/Sunday $4,500/$200 $4,700.00
Total 2021 American Rescue Plan Proposed Reimbursement 34900
WS – 5
WORK SESSION STAFF REPORT
Work Session Item No. 5
Date: June 7, 2020
To: City Council
From: Rick DeGardner, Public Services Director
Michael Grochala, Community Development Director
Re: Water Treatment Plant Feasibility Study
Background
The Minnesota Department of Health recently tested the City’s manganese levels in each of the
City’s wells as part of the EPA Unregulated Contaminant Monitoring Rule 4 (UCMR4). The
water quality testing data from MDH indicates that five of the City’s six wells exceed the
maximum recommended manganese level for infants, and three of the wells exceeds the
maximum recommend level for adults and children.
On March 9, 2020, the City Council authorized the preparation of a Water Treatment Plant
feasibility study to evaluate future water treatment options. This study was completed and
presented to the City Council on July 6, 2020. The report recommended construction of a
conventional gravity filtration system with an initial capacity of 6,000 gallons per minute (gpm).
The next steps identified included completion of the utility rate study and a water treatment pilot
study. The Utility Rate Study was completed by Baker Tilly and accepted by the City Council
on May 10, 2021.
Staff is now proposing to move forward with the water treatment pilot study. This study is the
first step to verify the effectiveness of the full scale treatment process. The purpose of the study
is to provide the City with critical information that is required to design and size a water
treatment plant to address the high manganese iron levels in its drinking water. If authorized, the
study would be completed by the end of the year.
WSB has provided a proposal with a not to exceed cost of $26,400. Funding will be provided
from the Trunk Utility Area and Unit Fund.
Requested Council Direction
Staff is requesting City Council direction to place the WSB proposal for consideration at the
June 14, 2021 City Council meeting.
Attachments
1. WSB Pilot Study Proposal
178 E 9TH STREET | SUITE 200 | SAINT PAUL, MN | 55101 | 651.286.8450 | WSBENG.COM June 2, 2021
Mr. Rick DeGardner
Public Services Director
City of Lino Lakes
600 Town Center Parkway
Lino Lakes, MN 55014
Re: Proposal for Water Treatment Plant Pilot Study
City of Lino Lakes, MN
Dear Mr. DeGardner,
WSB & Associates, Inc. (WSB) is pleased to submit this proposal to provide professional
engineering services for completing a Biological Filtration Water Treatment Pilot Study for the City
of Lino Lakes, Minnesota. A water treatment pilot study is conducted as the first step to verify the
effectiveness of a full scale conventional filtration process with biological filtration to reduce
manganese and iron in the City’s well water. The Minnesota Department of Health considers
biological filtration to be an efficient and effective treatment method for treating manganese, iron,
and other contaminants in public drinking water supplies. In addition, a conventional gravity
filtration plant with biological filtration could potentially save the City hundreds of thousands of
dollars in chemical costs in the long-term. The purpose of the pilot study is to provide the City with
critical information that is required to design and size a water treatment plant if the City decides to
proceed with this option to address the high manganese and iron levels in its drinking water.
WSB will perform the following scope of services to assist City staff in completing a biological
filtration water treatment pilot study. WSB owns a skid-mounted biological filtration water
treatment pilot plant and a laboratory trailer that will be mobilized to the City well with the highest
combined level of manganese and iron. The pilot plant equipment will be set-up and calibrated by
WSB staff. WSB staff will also train utility staff to assist in the operation of the pilot plant for the
duration of the study. The primary assistance required by City staff will be backwashing the filter
columns about once every four to seven days, sampling and analyzing water quality samples on
site with a water quality analyzer provided by WSB, and checking that the pilot plant is operating
each day.
Pilot Testing Processes
WSB will prepare a pilot protocol and submit it to the Minnesota Department of Health for their
review and approval prior to starting the pilot study. The pilot study will be conducted to assess
the efficiency and reliability of the treatment processes tested and to select the process
determined best suited for the treatment of the water supply.
Pilot Duration
The estimated time frame for the study is 10 to 16 weeks depending on the amount of time it
requires the filters to become fully acclimated for biological treatment of manganese and iron.
Mr. Rick DeGardner
June 2, 2021
Page 2
Equipment
WSB will mobilize its laboratory trailer and set-up the following skid-mounted pilot equipment at
the well to be piloted:
• Biological contact aerator column with air diffuser
• Biological filter column with granular activated carbon media
• Manganese filter column with greensand media covered by anthracite
• Air compressor for supplying air to the contact aerator column
• An orthophosphate feed system if needed to provide a nutrient for the biological process
• A sodium permanganate feed system for oxidizing manganese prior to the greensand filter if
needed
• Miscellaneous components including a skid support, booster pump, valves, piping, tubing,
sample taps, and appurtenances as necessary for operation of the pilot equipment.
The City will be responsible for ordering and purchasing orthophosphate and sodium
permanganate from its local chemical supplier and provide the necessary storage and
containment for these chemicals.
Manpower and Field Testing
Prior to the start-up of the testing period, WSB staff will be on site for one to two days to set-up
and start-up the equipment and train utility staff to assist in the operation and monitor the pilot
plant for the duration of the pilot study. Utility staff will assist in the operation, monitor the pilot
equipment, and conduct water sampling and field testing as needed for the duration of the pilot
study. WSB will visit the plant about once every one to two weeks to observe and monitor the
pilot study equipment and water quality testing.
Daily on-site monitoring will be provided by utility staff to read and record the pilot plant flow rate
(gpm) and air flow rate (SCFM). Utility staff will also need to monitor the operation of the chemical
feed systems daily. We estimate that these tasks will require approximately 20 to 30 minutes per
day by staff.
Weekly on-site field sampling and analysis will be provided by utility staff for the following water
quality parameters. We estimate that the following on-site analysis will require approximately 1.5
to 2 hours per week by utility staff. The utility will provide all water quality analysis equipment and
reagents that are required to test each of these parameters.
Sampling Point Weekly Field Sampling and
On-Site Analysis Required
Raw water at pilot plant entry point Iron, manganese, ammonia, nitrite, nitrate,
temperature, pH and flow rate (gpm)
Biological contactor aerator column effluent Iron, manganese, ammonia, nitrate, nitrite,
dissolved oxygen, and air flow rate (SCFM)
Biological filter column effluent Iron, manganese, ammonia, nitrate, nitrite,
dissolved oxygen, air flow rate (SCFM), and pH
Manganese filter column effluent Iron, manganese, ammonia, nitrate, nitrite,
dissolved oxygen, and air flow rate (SCFM)
Sampling and analysis by an independent certified laboratory will be coordinated and provided by
the utility bi-monthly (every-other week) intervals for the following water quality parameters. We
estimate that the following sampling will require approximately 1 hour every-other week by Utility
staff. The Utility will pay for the shipping costs for the water sample bottles and all water quality
analysis to be provided by the independent laboratory.
Mr. Rick DeGardner
June 2, 2021
Page 3
Sampling Point Bi-Monthly Sampling
and Independent Laboratory
Analysis Required
Raw water at pilot plant entry point Ammonia, total phosphorus, alkalinity, and total
organic carbon (TOC can be tested monthly)
Biological contactor aerator column effluent Ammonia, total phosphorus, and heterotrophic
plate count
Biological filter column effluent Ammonia, total phosphorus, and heterotrophic
plate count, alkalinity
Manganese filter column effluent Ammonia, total phosphorus, heterotrophic plate
count, iron, and manganese
The biological filter and manganese filter columns will need to be backwashed once every 4 to 7
days, or as needed, by utility staff. We estimate that this task will require about 20 to 30 minutes
every 4 to 7 days.
Pilot Report
Upon completion of the pilot study and receipt of utility’s on-site water quality analysis data and
the independent laboratory’s water quality reports, WSB will provide a comprehensive pilot study
report with a summary of the test results and recommendations. The report will be prepared by a
WSB water process engineer.
Additional Notes:
1. A ¾-inch hose bib connection and hose will need to be installed in the well influent water
line by utilities staff to supply water for the pilot plant.
2. 115V power from the City’s well house will be needed for the pilot plant.
Estimated Fees
WSB will complete the proposed Water Treatment Pilot Study for an hourly, not-to-exceed cost of
$26,400.00. This letter represents our understanding of the Water Treatment Pilot Study. If you
are in agreement with the scope of services and proposed fee, please sign in the appropriate
space below and return one copy to us.
If you have any questions about this proposal, please feel free to call me at (612) 209-0140.
Sincerely,
WSB
Greg F. Johnson, PE
Director of Water/Wastewater
Cc: Michael Grochala, City of Lino Lakes
Justin Williams, City of Lino Lakes
Diane Hankee, PE, WSB
Mr. Rick DeGardner
June 2, 2021
Page 4
ACCEPTED BY:
City of Lino Lakes
Name
WS - 6
WORK SESSION STAFF REPORT
Work Session Item No. 6
STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy Clerk
MEETING DATE: June 7, 2021
TOPIC: Advisory Board Appointment
VOTE REQUIRED: 3/5
BACKGROUND
The Environmental Board has received two resignations. Eric Flower submitted his resignation
in May effective immediately and Wendy Nelson has submitted her resignation effective after
the last meeting in July.
One of the member’s term ends December, 2021 and the other member’s term ends December,
2022.
The council interviewed 5 applicants earlier this year for the Environmental Board. At that
time, there were only two openings.
REQUESTED COUNCIL DIRECTION
Would the council like to continue advertising for board vacancies or fill the current vacancies
with the existing pool of candidates?
Past candidates interviewed in 2021 are:
1. Paula Andrzejewski
3. Kortney Jendro
4. Jonathan Parsons
WS – Item 7
WORK SESSION STAFF REPORT
Work Session Item No. 7
Date: June 7, 2021
To: City Council
From: Sarah Cotton, City Administrator
Re: Council Compensation
Background
Pursuant to M.S. § 415.11, the compensation of the Mayor and Councilmembers shall be
set by ordinance and the change in salary shall take effect after the next succeeding
municipal election.
Staff is recommending that the Council adopt an ordinance that would increase Council
salaries. The Mayor and Councilmembers last received a raise on January 1, 2020. The
salary of the Mayor is currently $10,112 and the salary of each Councilmember is $8,500.
Per City Code Chapter 203, the Council will consider whether a salary adjustment is
warranted every two years.
Staff is recommending a 5.3% increase in the salary of the Mayor and Councilmembers.
The salary of the Mayor would increase to $10,650 and the salary of each
Councilmember would increase to $8,952. This increase is consistent with the total wage
adjustment for City employees from 2020-2021.
The proposed ordinance would become effective January 1, 2022 and would continue to
be reviewed every two years per City Code.
Requested Council Direction
Staff is recommending that an Ordinance adjusting Council Compensation be placed on
the June 14, 2021, Council agenda for consideration of the first reading.
Attachments
Chapter 203: Council Compensation
CHAPTER 203: COUNCIL COMPENSATION
Section
203.01 Compensation of Mayor and Council members
203.02 Worker's compensation
§ 203.01 COMPENSATION OF MAYOR AND COUNCIL MEMBERS.
(1) Salaries. The compensation of the Mayor and each Council member shall be established from time to time by City
Council ordinance pursuant to M.S. § 415.11. Effective January 1, 2020, the salary of the Mayor shall be $10,112, and the
salary of each Council member shall be $8,500. Thereafter, every two years the City Council will consider whether a salary
adjustment is warranted. This salary is intended to cover all meetings that may be attended by the Mayor or Council
members except as expressly provided in this section.
(Ord. 07-97, passed 4-28-1997; Am. Ord. 17-01, passed 9-24-2001; Am. Ord. 10-05, passed 10-24-2005; Am. Res. 06-13,
passed 2-13-2006)
(2) Payment. The salaries established hereby are to be paid monthly.
(3) Economic Development Authority (EDA) meetings. The City Council will be compensated for attendance at EDA
meetings at the rate of $40 per meeting.
(Prior Code, § 203.01) (Am. Ord. 07-97, passed 4-28-1997; Am. Ord. 08-18, passed 11-26-2018; Am. Ord. 17-18, passed
11-26-2018)
§ 203.02 WORKER'S COMPENSATION.
Pursuant to M.S. § 176.011, Subd. 5, as it may be amended from time to time, all of the City Council members shall be
covered by worker's compensation.
(Prior Code, § 203.02) (Am. Ord. 08-18, passed 11-26-2018)