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06-06-2022 Council Work Session Packet
CITY COUNCIL WORK SESSION AGENDA CITY OF LINO LAKES Monday, June 6, 2022 Community Room 6:00 P.M. 1. Review 2021 Annual Audit Report, Hannah Lynch 2. Otter Crossing 2nd Addition Preliminary Plat and Tidal Wave Auto Spa Conditional Use Permit, Katie Larsen 3. Otter Lake Animal Care Center Conditional Use Permit, Katie Larsen 4. Communications Intern Position, Meg Sawyer 5. Proposed 2022 Rookery Activity Center Budget, Hannah Lynch 6. Community Service Officer Staffing, John Swenson 7. Council Updates on Boards/Commissions, City Council 8. Adjourn WS – Item 1 WORK SESSION STAFF REPORT Work Session Item No. 1 Date: June 6, 2022 To: City Council From: Hannah Lynch, Finance Director Re: 2021 Annual Audit Report Background Andy Hering of Redpath and Company will be in attendance to provide an overview of the City’s 2021 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 2021 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 2021 presented fairly, in all material respects, the financial position of the City as of December 31, 2021. 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 2020 Annual Comprehensive Financial Report. The city has received this award each year since 1995. We believe that the report issued for 2021 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 2021 Annual Audit Report at the June 13, 2022, regular City Council meeting. Requested Council Direction None Attachments 2021 Annual Comprehensive Financial Report 2021 Other Audit Reports ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED December 31, 2021 Prepared By: Finance Department Hannah Lynch, Director of Finance - This page intentionally left blank - 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 82 Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 11 88 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 12 89 Schedule of Pension Contributions - General Employees Retirement Fund Statement 13 90 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 91 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 15 92 Schedule of Changes in the Net Pension Liability and Related Ratios - Lino Lakes Public Safety Department - Fire Division Statement 16 93 Schedule of Contributions - Lino Lakes Public Safety Department - Fire Division Statement 17 94 Notes to RSI 95 Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 18 102 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 19 103 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 20 106 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 21 108 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 22 112 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 23 114 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 24 119 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 25 122 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference No. Financial Trends: Net Position by Component Table 1 128 Changes in Net Position Table 2 130 Fund Balances, Governmental Funds Table 3 134 Changes in Fund Balances, Governmental Funds Table 4 136 Revenue Capacity: Assessed and Actual Value of Taxable Property Table 5 138 Direct and Overlapping Property Tax Capacity Rates Table 6 139 Principal Property Taxpayers Table 7 141 Property Tax Levies and Collections Table 8 142 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 144 Ratios of Net General Bonded Debt Table 10 146 Direct and Overlapping Governmental Activities Debt Table 11 148 Legal Debt Margin Information Table 12 149 Demographic and Economic Information: Demographic and Economic Statistics Table 13 150 Principal Employers Table 14 151 Operating Information: Full-Time Equivalent City Government Employees By Function/Program Table 15 152 Operating Indicators by Function/Program Table 16 154 Capital Asset Statistics by Function/Program Table 17 156 STATISTICAL SECTION (UNAUDITED) - This page intentionally left blank - INTRODUCTORY SECTION 1 - This page intentionally left blank - 2 600 Town Center Parkway, Lino Lakes, MN 55014 Phone: 651-982-2400 ∙ Fax: 651-982-2499 June 2, 2022 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 annual comprehensive financial report of the City of Lino Lakes, Minnesota for the fiscal year ended December 31, 2021. 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, 2021, 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, 2021, are fairly presented in conformity with GAAP. The independent auditor’s 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 Anoka County. It covers an area of 33 square miles and had a population of 21,399 as of the 2020 census. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 27.4% 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, and providing and maintaining water, sanitary sewer, and storm sewer infrastructure. The annual budget is the foundation for the City of Lino Lakes’ financial planning and control. All departments 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. Department directors may make transfers of appropriations within a department, but transfers of appropriations between departments require council approval. A budget-to- actual comparison for the General Fund, the only fund for which an annual budget has been adopted, is provided in Statement 10. 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. Commercial interest continues to grow with the expansion of the Main Street Shoppes, Otter Crossing, and Belland Farms developments in the northeast quadrant. 4 Factors Affecting Financial Condition (Continued) The 35E corridor also gained additional attention through a partnership with Anoka and Washington Counties, neighboring cities, and Connexus Energy, to establish the Minnesota Technology Corridor. Over 1,000 acres are available along the corridor with strong transportation, fiber and utility infrastructure to serve the growing data and tech fields Overall, the City continued to see substantial development activity in 2021. 263 new residential construction permits were issued. Total building permit valuation was approximately $91 million. These represent both the highest residential permit numbers in over 20 years and the highest new construction valuation on record. Approximately $75 million was related to residential construction. Long-term financial planning. The City’s current five-year capital plan identifies street and utility improvements totaling $62 million 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 2027. 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 annual comprehensive financial report for the year ended December 31, 2020. This marks the twenty-sixth consecutive year the City has received this prestigious award. A governmental unit must publish an easily readable and efficiently organized annual comprehensive 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 2021 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 - This page intentionally left blank - 6 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lino Lakes Minnesota For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 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 &RPPXQLFDWLRQV 8 CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2021 Term Expires Mayor: Rob Rafferty December 31, 2023 Councilmembers: Dale Stoesz December 31, 2025 Tony Cavegn December 31, 2025 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 - This page intentionally left blank - 10 FINANCIAL SECTION 11 - This page intentionally left blank - 12 55 5th Street East, Suite 1400, St. Paul, MN, 55101 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 Audit of the Financial Statements Opinions 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, 2021, 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. In our opinion, the accompanying 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, 2021, 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. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Lino Lakes, Minnesota and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Lino Lakes, Minnesota’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Governmental Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit 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 City of Lino Lakes, Minnesota's internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Lino Lakes, Minnesota's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. 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 is the responsibility of management and, 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. Supplementary 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 combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are 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 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 2, 2022 on our consideration of the City of Lino Lakes, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Lino Lakes, Minnesota 's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Lino Lakes, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota June 2, 2022 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, 2021. 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 $134,843,980 (net position). Of this amount, $38,401,016 (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 $11,330,390. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $33,927,326, an increase of $1,807,202. Of this amount, $8,437,406 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 $8,147,750. Unassigned fund balance for the general fund was $7,719,761, or 68% of total general fund expenditures and other financing uses. Total outstanding debt decreased by $1,300,970 during 2021. General Obligation Bonds totaling $1,815,000 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 Pavement Management – 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. A budgetary comparison schedule is presented as statement 10. 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 $134,843,980 at the close of the most recent fiscal year. The largest portion of the City’s net position ($82,553,714, 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 2021 2020 2021 2020 2021 2020 Assets: Current and other assets $48,102,801 $44,476,092 $16,979,300 $16,571,768 $65,082,101 $61,047,860 Capital assets 61,128,255 55,151,912 43,566,016 43,366,197 104,694,271 98,518,109 Total assets $109,231,056 $99,628,004 $60,545,316 $59,937,965 $169,776,372 $159,565,969 Deferred outflows of resources $4,538,110 $1,995,741 $177,865 $31,725 $4,715,975 $2,027,466 Liabilities: Long-term liabilities outstanding $27,292,908 $30,637,047 $342,614 $398,988 $27,635,522 $31,036,035 Other liabilities 4,881,735 3,722,743 151,737 123,285 5,033,472 3,846,028 Total liabilities $32,174,643 $34,359,790 $494,351 $522,273 $32,668,994 $34,882,063 Deferred inflows of resources $6,742,161 $3,170,706 $237,212 $27,076 $6,979,373 $3,197,782 Net position: Net investment in capital assets $38,987,698 $31,960,308 $43,566,016 $43,366,197 $82,553,714 $75,326,505 Restricted 13,889,250 13,446,203 - - 13,889,250 13,446,203 Unrestricted 21,975,414 18,686,738 16,425,602 16,054,144 38,401,016 34,740,882 Total net position $74,852,362 $64,093,249 $59,991,618 $59,420,341 $134,843,980 $123,513,590 Governmental Activities Business-Type Activities Totals $13,889,250 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 ($38,401,016) 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 $11,330,390 during 2021. Key elements of this increase are as follows: City of Lino Lakes’ Changes in Net Position 2021 2020 2021 2020 2021 2020 Revenues: Program revenues: Charges for services $5,109,267 $2,929,965 $3,575,330 $3,144,790 $8,684,597 $6,074,755 Operating grants and contributions 1,019,752 2,470,024 - 42,152 1,019,752 2,512,176 Capital grants and contributions 7,931,093 6,894,207 752,403 2,887,266 8,683,496 9,781,473 General revenues: General property taxes 11,132,851 10,492,131 - - 11,132,851 10,492,131 Tax increment 873,310 766,912 - - 873,310 766,912 Grants and contributions not restricted to specific programs 6,587 47,188 - - 6,587 47,188 Unrestricted investment earnings (171,260) 684,384 (86,764) 383,963 (258,024) 1,068,347 Gain on disposal of capital assets 387,972 150,041 29,012 - 416,984 150,041 Total revenues 26,289,572 24,434,852 4,269,981 6,458,171 30,559,553 30,893,023 Expenses: General government 2,828,407 4,197,819 - - 2,828,407 4,197,819 Public safety 4,706,881 4,867,134 - - 4,706,881 4,867,134 Public services 6,260,599 4,118,477 - - 6,260,599 4,118,477 Conservation of naturual resources 178,581 161,556 - - 178,581 161,556 Community development 791,930 660,660 - - 791,930 660,660 Interest and fees on long-term debt 654,287 733,207 - - 654,287 733,207 Water - - 1,621,486 1,532,282 1,621,486 1,532,282 Sewer - - 2,186,992 2,199,865 2,186,992 2,199,865 Total expenses 15,420,685 14,738,853 3,808,478 3,732,147 19,229,163 18,471,000 Increase in net position before transfers 10,868,887 9,695,999 461,503 2,726,024 11,330,390 12,422,023 Transfers (109,774) (4,066,269) 109,774 4,066,269 - - Change in net position 10,759,113 5,629,730 571,277 6,792,293 11,330,390 12,422,023 Net position - January 1 64,093,249 58,463,519 59,420,341 52,628,048 123,513,590 111,091,567 Net position - December 31 $74,852,362 $64,093,249 $59,991,618 $59,420,341 $134,843,980 $123,513,590 Business-Type Activities TotalsGovernmental Activities Governmental Activities Governmental activities increased the City’s net position by $10,759,113 during 2021. Contributions of capital assets from private sources, coronavirus relief grant funds, and property taxes levied to reduce debt all contributed to the increase in 2021. 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 $571,277 during 2021. The increase was due to contributions of capital assets from private sources and a transfer in from governmental activities of $109,774. 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 $33,927,326. Approximately 25% of this total amount ($8,437,406) constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. $565,192 of fund balance is not in a spendable form, $602,501 has been committed, $19,533,784 has been assigned, and $4,788,443 is unassigned. The General fund balance increased by $620,028 in 2021, while the City anticipated an increase in fund balance of $485,695 based on its final budget. Increased license and permit revenues and reduced personnel expenditures, primarily for police position vacancies, 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 $141, respectively, and transferred $65,330 to the MSA Construction fund. The G.O. Improvement Bonds of 2016B fund decreased by $145,413. The 2016B series bonds were issued to refund the 2005A series bonds and fund the Legacy at Woods Edge improvements. The bonds matured in 2021 and future tax increment is expected to cover the interfund loan payable. The Area and Unit Charge fund has a total fund balance of $9,659,930, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $665 due Water Tower #3 construction costs and transfers out for debt service payments offsetting special assessment and charges for services revenue. The MSA Construction fund has a total fund balance of $3,134,847, all of which is assigned to capital improvements for City MSA designated roadways. The fund balance during the current year increased by $50,936 primarily due to Municipal State Aid received in excess of transfers out for debt service payments. 24 Management’s Discussion and Analysis The Pavement Management fund has a total fund balance of $972,648, all of which is restricted or assigned to pavement preservation funding to improve the overall condition rating of city streets. The fund balance during the current year increased by $474,243 primarily due to the issuance of G.O. Street Reconstruction Bonds to fund the 2021 Street Reconstruction Project. The combined fund balance of other governmental funds increased by $806,602 during 2021. Primary reasons for the increase include Water Tower #3 funds available at the end of the project for debt service payments on the 2020A G.O. Utility Revenue Bonds and development activities resulting in developer fee revenues (park dedication and 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 $31,458,223, of which $6,063,140 is unrestricted. The increase in net position of $599,611 was primarily due to capital contributions from private sources as a result of residential development. The sewer fund has total net position at year-end of $28,533,395 of which $10,362,462 is unrestricted. The decrease in net position of $28,334 was primarily due to a net operating loss partially offset by capital contribution from private sources as a result of residential development. Budgetary Highlights General Fund There were amendments to the original budget in 2021. The revenue budget was increased by $459,900 to total $11,957,468, and the expenditure budget was decreased by $72,627 to total $10,520,660. Other financing uses were increased $25,000 to total $951,113. Net changes to the budget resulted in a budgeted surplus of $485,695. Revenues were $46,094 under budget for the year. General property taxes and investment earnings were $101,853 under budget; however, this variance was partially offset by greater than anticipated license and permit revenues, charges for services, and gas franchise fees. Expenditures came in under budget by $180,427 primarily due to lower than expected personal services costs mostly driven by vacant positions. 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, 2021, amounted to $104,694,271 (net of accumulated depreciation), an increase of $6,176,162 from the prior year. This investment in capital assets includes land, wetland credits, construction in progress, buildings, equipment, vehicles, and infrastructure. The City was conveyed the former Lino Lakes YMCA building and land after operations ceased due to the COVID-19 pandemic. The City is in the process of reopening the facility as the Rookery Activity Center. Construction of Water Tower #3 and the Well House #1 Rehabilitation improvements were completed. The City has continued to work to complete the 2021 Street Reconstruction Project, trunk utility improvements at 49&J, drainage improvements in the NE Area of the City, and a hard court facility at Tower Park. Developer lead infrastructure improvements at various stages of completion include Watermark 1st, 2nd, and 3rd additions and Naduea Acres 1st and 2nd. City of Lino Lakes’ Capital Assets (Net of Depreciation) 2021 2020 2021 2020 2021 2020 Land $5,675,330 $3,532,930 $ - $ - $5,675,330 $3,532,930 Wetland credits 49,042 93,876 - - 49,042 93,876 Construction in progress 7,861,679 8,036,003 3,239,205 10,336,586 11,100,884 18,372,589 Buildings 10,111,498 7,619,238 - - 10,111,498 7,619,238 Office equipment and furniture 253,393 312,288 - - 253,393 312,288 Vehicles 1,809,364 1,961,862 - - 1,809,364 1,961,862 Machinery and shop equipment 1,125,742 1,070,655 368,489 257,047 1,494,231 1,327,702 Other equipment 1,065,828 1,002,034 - - 1,065,828 1,002,034 Infrastructure 33,176,379 31,523,026 39,958,322 32,772,564 73,134,701 64,295,590 Total $61,128,255 $55,151,912 $43,566,016 $43,366,197 $104,694,271 $98,518,109 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 $22,831,182. Of this amount, $21,986,182 comprises tax supported debt and $845,000 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 $103,950. City of Lino Lakes’ Outstanding Debt 2021 2020 2021 2020 2021 2020 General obligation bonds $21,104,720 $21,478,720 $ - $ - $21,104,720 $21,478,720 G.O. special assessment bonds 845,000 1,805,000 - - 845,000 1,805,000 Bond premium 881,462 848,432 - - 881,462 848,432 Total $22,831,182 $24,132,152 $0 $0 $22,831,182 $24,132,152 Business-Type Activities TotalsGovernmental Activities The City of Lino Lakes’ total bonded debt decreased by $1,300,970 during the current fiscal year. General Obligation Bonds totaling $1,815,000 were issued to finance the 2021 Street Reconstruction Project, while regularly scheduled principal payments were made during the year. Additional information on the City’s long-term debt can be found in Note 6. Requests for information. This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014. 27 - This page intentionally left blank - 28 BASIC FINANCIAL STATEMENTS 29 - This page intentionally left blank - 30 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2021 Governmental Business-Type Activities Activities Total Assets: Cash and investments $38,134,799 $15,871,469 $54,006,268 Accrued interest receivable 140,768 - 140,768 Due from other governmental units 159,898 2,236 162,134 Accounts receivable - net 52,288 400,851 453,139 Prepaid items 465,192 127,557 592,749 Internal balances (559,110) 559,110 - Inventory - 18,077 18,077 Taxes receivable 227,084 - 227,084 Special assessments receivable 8,948,542 - 8,948,542 Net pension asset 533,340 - 533,340 Capital assets - nondepreciable 13,586,051 3,239,205 16,825,256 Capital assets - net of accumulated depreciation 47,542,204 40,326,811 87,869,015 Total assets 109,231,056 60,545,316 169,776,372 Deferred outflows of resources: Pension related 4,445,267 177,865 4,623,132 OPEB related 92,843 - 92,843 Total deferred outflows of resources 4,538,110 177,865 4,715,975 Liabilities: Accounts payable and other current liabilities 1,054,872 151,737 1,206,609 Deposits payable 2,375,417 - 2,375,417 Accrued interest payable 261,299 - 261,299 Unearned revenue 1,190,147 - 1,190,147 Other post employment benefits: Due in more than one year 456,037 46,206 502,243 Long-term liabilities: Due within one year 2,929,787 47,876 2,977,663 Due in more than one year 20,758,941 2,520 20,761,461 Net pension liability: Due in more than one year 3,148,143 246,012 3,394,155 Total liabilities 32,174,643 494,351 32,668,994 Deferred inflows of resources: Pension related 6,291,675 237,212 6,528,887 OPEB related 450,486 - 450,486 Total deferred inflows of resources 6,742,161 237,212 6,979,373 Net position: Net investment in capital assets 38,987,698 43,566,016 82,553,714 Restricted (nonexpendable) for environmental purposes 100,000 - 100,000 Restricted (expendable) for: Debt service 10,721,235 - 10,721,235 Park improvements 1,778,971 - 1,778,971 Tax increment purposes 580,723 - 580,723 Fire Department pension plan 457,288 - 457,288 Other purposes 251,033 - 251,033 Unrestricted 21,975,414 16,425,602 38,401,016 Total net position $74,852,362 $59,991,618 $134,843,980 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, 2021 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $2,828,407 $892,386 Public safety 4,706,881 1,688,606 Public services 6,260,599 2,528,275 Conservation of natural resources 178,581 - Community development 791,930 - Interest and fees on long-term debt 654,287 - Total governmental activities 15,420,685 5,109,267 Business-type activities: Water 1,621,486 1,683,290 Sewer 2,186,992 1,892,040 Total business-type activities 3,808,478 3,575,330 Total primary government $19,229,163 $8,684,597 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 $202,898 $ - ($1,733,123)$ - ($1,733,123) 479,622 - (2,538,653) - (2,538,653) 259,711 7,931,093 4,458,480 - 4,458,480 77,521 - (101,060) - (101,060) - - (791,930) - (791,930) - - (654,287) - (654,287) 1,019,752 7,931,093 (1,360,573)- (1,360,573) - 452,255 - 514,059 514,059 - 300,148 - 5,196 5,196 - 752,403 - 519,255 519,255 $1,019,752 $8,683,496 (1,360,573)519,255 (841,318) General revenues: General property taxes 11,132,851 - 11,132,851 Tax increment 873,310 - 873,310 Grants and contributions not restricted to specific programs 6,587 - 6,587 Unrestricted investment earnings (171,260)(86,764)(258,024) Gain on disposal of capital assets 387,972 29,012 416,984 Transfers (109,774)109,774 - Total general revenues and transfers 12,119,686 52,022 12,171,708 Change in net position 10,759,113 571,277 11,330,390 Net position - January 1 64,093,249 59,420,341 123,513,590 Net position - December 31 $74,852,362 $59,991,618 $134,843,980 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, 2021 333 G.O. 342 G.O. Improvement Improvement General Fund Note of 2009A Bonds of 2016B Assets Cash and investments $10,372,802 $ - $ - Accrued interest receivable 140,768 - - Due from other governmental units 81,921 - - Accounts receivable - net 28,630 - - Prepaid items 356,619 - - Advances to other funds - - - Taxes receivable: Due from county 143,020 - - Delinquent 74,703 - - Special assessments receivable: Due from county - 141 - Delinquent - - - Deferred 199 2,178,311 2,994,379 Interfund loan receivable - - - Total assets $11,198,662 $2,178,452 $2,994,379 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $220,314 $ - $ - Salaries payable 321,085 - - Due to other governmental units 37,736 - - Advances from other funds - - - Retainage payable 14,033 - - Deposits payable 2,375,417 - - Unearned revenue 7,425 - - Interfund loan payable - - 2,470,082 Total liabilities 2,976,010 0 2,470,082 Deferred inflows of resources: Unavailable revenue 74,902 2,178,311 2,994,379 Fund balance: Nonspendable 356,619 - - Restricted - 141 - Committed 71,370 - - Assigned - - - Unassigned 7,719,761 - (2,470,082) Total fund balance 8,147,750 141 (2,470,082) Total liabilities, deferred inflows of $11,198,662 $2,178,452 $2,994,379 resources, and fund balance The accompanying notes are an integral part of these financial statements. 34 Statement 3 421 Other Total 406 Area and 420 MSA Pavement Governmental Governmental Unit Charge Construction Management Funds Funds $9,654,462 $3,104,436 $1,117,417 $13,885,682 $38,134,799 - - - - 140,768 - 47,520 - 30,457 159,898 17,009 - - 6,649 52,288 - - - 108,573 465,192 - - - 457,303 457,303 - - - 9,361 152,381 - - - - 74,703 1,146 - - 259 1,546 10,958 - - 1,387 12,345 2,167,847 - - 1,593,915 8,934,651 - - - 1,910,972 1,910,972 $11,851,422 $3,151,956 $1,117,417 $18,004,558 $50,496,846 $12,687 $17,109 $104,363 $257,633 $612,106 - - - - 321,085 - - - 3,822 41,558 - - - 457,303 457,303 - - 40,406 25,684 80,123 - - - - 2,375,417 - - - 1,182,722 1,190,147 - - - - 2,470,082 12,687 17,109 144,769 1,927,164 7,547,821 2,178,805 - - 1,595,302 9,021,699 - - - 208,573 565,192 - - 586,675 7,850,590 8,437,406 - - - 531,131 602,501 9,659,930 3,134,847 385,973 6,353,034 19,533,784 - - - (461,236) 4,788,443 9,659,930 3,134,847 972,648 14,482,092 33,927,326 $11,851,422 $3,151,956 $1,117,417 $18,004,558 $50,496,846 The accompanying notes are an integral part of these financial statements. 35 - This page intentionally left blank - 36 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4 FUNDS TO THE STATEMENT OF NET POSITION December 31, 2021 Fund balance - total governmental funds (Statement 3) $33,927,326 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 61,128,255 Net pension asset 533,340 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 74,703 Delinquent special assessments receivable 12,345 Deferred special assessments receivable 8,934,651 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 (21,949,720) Unamortized bond premiums (889,410) Unamortized bond discounts 7,948 Accrued interest payable (261,299) Compensated absences payable (857,546) Other post employment benefits (456,037) Net pension liability (3,148,143) Deferred outflows and inflows of resources related to pensions and OPEB are associated with long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. Balances at year end are: Deferred outflows of resources 4,538,110 Deferred inflows of resources (6,742,161) Net position of governmental activities (Statement 1)$74,852,362 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, 2021 333 G.O.342 G.O. Improvement Improvement General Fund Note of 2009A Bonds of 2016B Revenues: General property taxes $9,280,331 $ - $ - Tax increment - - - Licenses and permits 1,400,755 - - Special assessments - 65,680 - Intergovernmental 626,279 - - Charges for services 337,291 - - Fines and forfeits 73,206 - - Investment earnings (50,817)(209)(202) Miscellaneous 244,329 - - Total revenues 11,911,374 65,471 (202) Expenditures: Current: General government 2,074,782 - - Public safety 4,970,207 - - Public services 2,227,570 - - Conservation of natural resources 182,247 - - Community development 481,333 - - Capital outlay: General government 8,873 - - Public safety 3,100 - - Public services 392,121 - - Debt service: Principal - - 510,000 Interest and fiscal charges - - 4,276 Total expenditures 10,340,233 0 514,276 Revenues over (under) expenditures 1,571,141 65,471 (514,478) Other financing sources (uses): Transfers in - - 369,065 Transfers out (951,113)(65,330) - Issuance of debt - - - Premium on issuance of debt - - - Proceeds from sale of capital assets - - - Total other financing sources (uses)(951,113)(65,330)369,065 Net change in fund balance 620,028 141 (145,413) Fund balance - January 1 7,527,722 - (2,324,669) Fund balance - December 31 $8,147,750 $141 ($2,470,082) The accompanying notes are an integral part of these financial statements. 38 Statement 5 421 Other Total 406 Area and 420 MSA Pavement Governmental Governmental Unit Charge Construction Management Funds Funds $ - $ - $ - $1,909,448 $11,189,779 - - - 873,310 873,310 - - - - 1,400,755 1,257,220 - - 274,797 1,597,697 9,251 336,365 - 198,783 1,170,678 1,201,127 - 36,630 1,527,664 3,102,712 - - - 40,153 113,359 (39,599) (16,745) (4,418) (59,270) (171,260) - - - 263,924 508,253 2,427,999 319,620 32,212 5,028,809 19,785,283 - - - 183,097 2,257,879 - - - 57,454 5,027,661 38,150 4,868 238,633 420,382 2,929,603 - - - - 182,247 - - - 340,674 822,007 - - - - 8,873 - - - 252,655 255,755 1,124,710 62,020 2,202,897 1,453,219 5,234,967 - - - 2,639,000 3,149,000 - - 49,097 695,506 748,879 1,162,860 66,888 2,490,627 6,041,987 20,616,871 1,265,139 252,732 (2,458,415) (1,013,178) (831,588) - 65,330 1,034,046 1,771,600 3,240,041 (1,264,474) (267,126) - (369,065) (2,917,108) - - 1,796,110 18,890 1,815,000 - - 102,502 - 102,502 - - - 398,355 398,355 (1,264,474) (201,796) 2,932,658 1,819,780 2,638,790 665 50,936 474,243 806,602 1,807,202 9,659,265 3,083,911 498,405 13,675,490 32,120,124 $9,659,930 $3,134,847 $972,648 $14,482,092 $33,927,326 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, 2021 Net change in fund balance - total governmental funds (Statement 5) $1,807,202 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Capital outlay 5,499,595 Capital outlay not capitalized (909,702) Depreciation (3,448,962) 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 5,278,500 Contributions of infrastructure to business-type activities (432,707) Miscellaneous other differences related to capital assets (10,381) 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 (56,928) Change in delinquent special assessments receivable (11,628) Change in deferred special assessments receivable 730,158 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 (1,917,502) Repayment of principal 3,149,000 Amortization of bond premiums s 69,472 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 25,120 Change in compensated absences payable (38,291) Change in OPEB liability and related deferred outflows and inflows of resources 35,088 Pension expense in governmental funds is measured by current year employee contributions. Pension expense in the Statement of Activities is measured by the change in the net pension liability and related deferred inflows and outflows of resources. This is the amount by which pension expense differed from pension contributions.991,079 Change in net position of governmental activities (Statement 2)$10,759,113 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, 2021 601 Water 602 Sewer Total Assets: Current assets: Cash and cash equivalents $6,131,906 $9,739,563 $15,871,469 Due from other governmental units - 2,236 2,236 Accounts receivable - net 175,683 225,168 400,851 Prepaid items 14,158 113,399 127,557 Inventory 18,077 - 18,077 Total current assets 6,339,824 10,080,366 16,420,190 Noncurrent assets: Interfund loan receivable - 559,110 559,110 Capital assets: Construction in progress 1,741,448 1,497,757 3,239,205 Equipment 148,436 521,307 669,743 Water and sewer systems 34,571,736 27,599,155 62,170,891 Total capital assets 36,461,620 29,618,219 66,079,839 Less: Allowance for depreciation (11,066,537) (11,447,286) (22,513,823) Net capital assets 25,395,083 18,170,933 43,566,016 Total assets 31,734,907 28,810,409 60,545,316 Deferred outflows of resources related to pensions 88,826 89,039 177,865 Liabilities: Current liabilities: Accounts payable 49,852 63,791 113,643 Salaries payable 8,991 8,991 17,982 Due to other governments 13,021 1,412 14,433 Other accrued liabilities 4,999 680 5,679 Compensated absences payable - current portion 23,938 23,938 47,876 Total current liabilities 100,801 98,812 199,613 Noncurrent liabilities: Compensated absences payable - noncurrent portion 1,260 1,260 2,520 Other post employment benefits - noncurrent portion 23,103 23,103 46,206 Net pension liability 121,831 124,181 246,012 Total noncurrent liabilities 146,194 148,544 294,738 Total liabilities 246,995 247,356 494,351 Deferred inflows of resources related to pensions 118,515 118,697 237,212 Net position: Investment in capital assets 25,395,083 18,170,933 43,566,016 Unrestricted 6,063,140 10,362,462 16,425,602 Total net position $31,458,223 $28,533,395 $59,991,618 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, 2021 601 Water 602 Sewer Totals Operating revenues: Charges for services $1,475,211 $1,835,443 $3,310,654 Hook-up charges 68,770 56,597 125,367 Water meter sales 139,309 - 139,309 Total operating revenues 1,683,290 1,892,040 3,575,330 Operating expenses: Personal services 308,976 314,141 623,117 Materials and supplies 309,272 44,591 353,863 Contractual services 246,169 216,601 462,770 MCES sewer charges - 988,487 988,487 Depreciation 625,544 550,018 1,175,562 Utilities 108,849 46,153 155,002 Other 22,676 27,001 49,677 Total operating expenses 1,621,486 2,186,992 3,808,478 Operating income (loss)61,804 (294,952)(233,148) Nonoperating revenues (expenses): Gain on disposal of capital assets 14,506 14,506 29,012 Investment earnings (34,068) (52,696) (86,764) Total nonoperating revenues (expenses)(19,562)(38,190)(57,752) Income (loss) before contributions and transfers 42,242 (333,142)(290,900) Contributions and transfers: Capital contributions from private sources 452,255 300,148 752,403 Capital contributions from governmental activities 428,047 4,660 432,707 Transfer out (322,933) - (322,933) Total contributions and transfers 557,369 304,808 862,177 Change in net position 599,611 (28,334)571,277 Net position - January 1 30,858,612 28,561,729 59,420,341 Net position - December 31 $31,458,223 $28,533,395 $59,991,618 Capital Contributions Transfers - Net Amounts reported above $1,185,110 ($322,933) Amounts reported for business-type activities in the statement of activities are different because: Transfer in of capital assets from governmental activities (432,707)432,707 Amounts reported on the statement of activities $752,403 $109,774 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, 2021 601 Water 602 Sewer Totals Cash flows from operating activities: Receipts from customers and users $1,646,059 $1,865,395 $3,511,454 Payment to suppliers (700,183) (1,288,495) (1,988,678) Payment to employees (305,165) (310,330) (615,495) Net cash flows provided by operating activities 640,711 266,570 907,281 Cash flows from noncapital financing activities: Intergovernmental revenue 29,991 - 29,991 Transfers out (322,933) - (322,933) Net cash flows provided by noncapital financing activities (292,942) - (292,942) Cash flows from capital and related financing activities: Acquisition of capital assets (92,652) (99,189) (191,841) Proceeds from sale of capital assets 15,291 15,291 30,582 Net cash flows provided by capital and related financing activities (77,361) (83,898) (161,259) Cash flows from investing activities: Investment earnings (34,068) (52,696) (86,764) Net increase in cash and cash equivalents 236,340 129,976 366,316 Cash and cash equivalents - January 1 5,895,566 9,609,587 15,505,153 Cash and cash equivalents - December 31 $6,131,906 $9,739,563 $15,871,469 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) $61,804 ($294,952) ($233,148) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 625,544 550,018 1,175,562 Changes in assets and liabilities: Decrease (increase) in due from other governmental units - 258 258 Decrease (increase) in accounts receivable - net (37,231) (26,903) (64,134) Decrease (increase) in prepaid items (1,319) (8,798) (10,117) Decrease (increase) in inventory 2,786 - 2,786 Decrease (increase) in deferred outflows of resources (73,070) (73,070) (146,140) Increase (decrease) in payables 15,173 43,136 58,309 Increase (decrease) in other accrued liabilities (29,857) - (29,857) Increase (decrease) in compensated absences 4,279 4,279 8,558 Increase (decrease) in other post employment benefits 19,619 19,619 39,238 Increase (decrease) in net pension liability (52,085) (52,085) (104,170) Increase (decrease) in deferred inflows of resources 105,068 105,068 210,136 Total adjustments 578,907 561,522 1,140,429 Net cash provided by operating activities $640,711 $266,570 $907,281 Noncash investing, capital and financing activities: Contributions of capital assets $880,302 $304,808 $1,185,110 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 43 - This page intentionally left blank - 44 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021 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. The bonds were used to fund the Legacy at Woods Edge improvements. 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. Pavement Management Fund accounts for money received from levies assessments and developer charges for future street maintenance projects. 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, 2021 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. An annual appropriated budget is adopted for the General 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) 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 be 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, 2021 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, 2021 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. 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021 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 estimated useful life in excess of one year, which have an individual value equal to or greater than the capitalization thresholds for each asset class as follows: Land $10,000 Buildings and building improvements $50,000 Improvements other than buildings (land improvements) $25,000 Machinery and equipment $10,000 Infrastructure and other improvements $100,000 Other assets $10,000 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 5 to 40 years for buildings, office furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for infrastructure and other improvements. 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. 51 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 O. DEFINED BENEFIT PENSION PLANS For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been determined on the same basis as they are reported by PERA, except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets 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 assets 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. 52 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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 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 such banks 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, 2021, the bank balance of the City’s deposits with financial institutions was $13,274,313 and the carrying amount was $13,083,090. All deposits were covered by federal depository insurance or by collateral pledge and held in the City’s name. 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. 53 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 At December 31, 2021, 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 $16,850,059 $5,921,305 $6,115,091 $4,813,663 Municipal bonds *15,117,703 2,319,217 6,775,004 6,023,482 Federal agency securities AA+3,523,362 998,860 742,945 1,781,557 4M fund Not rated 3,949,696 3,949,696 - - First American Gov't Obligation fund AAAm 1,481,418 1,481,418 - - Total $40,922,238 $14,670,496 $13,633,040 $12,618,702 * AAA $1,419,107; AA+ $1,873,555; AA $5,930,620 Total investments $40,922,238 AA- $1,759,771; A+ $310,154; A $247,878; Aaa $808,556 Deposits 13,083,090 Aa1 $1,380,748; Aa2 $541,193; Aa3 $846,121 Petty cash 940 Ratings per Moody's or S&P Total cash and investments $54,006,268 Investment Maturities (in Years) The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchNotey 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, 2021: Investment Type 12/31/2021 Level 1 Level 2 Level 3 Investments at fair value: Brokered certificates of deposit $16,850,059 $ - $16,850,059 $ - Municipal bonds 15,117,703 - 15,117,703 - Federal agency securities 3,523,362 - 3,523,362 - $0 $35,491,124 $0 Investments not categorized: 4M fund 3,949,696 ` First American Gov't Obligation fund 1,481,418 Total investments $40,922,238 Fair Value Measurement Using The 4M fund is an external investment pool investment which is regulated by Minnesota Statutes and the Board of Directors of the League of Minnesota Cities. It is an unrated pool and the fair value of the position in the pool is the same as the value of pool shares. The pool is managed to maintain a portfolio weighted average maturity of no greater than 60 days and seeks to maintain a constant net asset value (NAV) of $1 per share. The pool measures its investments at amortized cost in accordance with GASB Statement No. 79. The 4M Plus fund requires funds to be deposited for a minimum of 14 calendar days. Withdrawals prior to the 14-day restriction period are subject to penalty equal to 7 days interest on the amount withdrawn. The First American Government Obligation money market fund 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. 54 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021, no individual investments exceeded 5% of the City’s total investment portfolio. Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2021 are as follows: Property Special Taxes Assessments Receivable Receivable Total Major Funds: General Fund $29,134 $ - $29,134 G.O. Improvement Note of 2009A - 2,150,712 2,150,712 G.O. Improvement Bonds of 2016B - 2,994,379 2,994,379 Area and Unit Charge - 2,044,809 2,044,809 Nonmajor Funds - 1,515,668 1,515,668 Total $29,134 $8,705,568 $8,734,702 55 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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 $74,703 $199 $74,902 G.O. Improvement Note of 2009A - 2,178,311 2,178,311 G.O. Improvement Bonds of 2016B - 2,994,379 2,994,379 Area and Unit Charge - 2,178,805 2,178,805 Nonmajor Funds - 1,595,302 1,595,302 Total $74,703 $8,946,996 $9,021,699 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2021 was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated: Land $3,532,930 $2,142,400 $ - $ - $5,675,330 Wetland credits 93,876 - (44,834) - 49,042 Construction in progress 8,036,003 4,006,637 (3,748,254) (432,707) 7,861,679 Total capital assets, not being depreciated 11,662,809 6,149,037 (3,793,088) (432,707) 13,586,051 Capital assets, being depreciated: Buildings 13,463,193 3,150,600 - - 16,613,793 Office equipment and furniture 830,171 - - - 830,171 Vehicles 4,910,323 154,862 (341,770) - 4,723,415 Machinery and shop equipment 2,754,580 350,538 (210,895) - 2,894,223 Other equipment 1,782,130 132,037 (39,773) - 1,874,394 Infrastructure 96,273,892 3,775,315 - - 100,049,207 Total capital assets, being depreciated 120,014,289 7,563,352 (592,438)0 126,985,203 Less accumulated depreciation for: Buildings 5,843,955 658,340 - - 6,502,295 Office equipment and furniture 517,883 58,895 - - 576,778 Vehicles 2,948,461 307,360 (341,770) - 2,914,051 Machinery and shop equipment 1,683,925 234,162 (149,606) - 1,768,481 Other equipment 780,096 68,243 (39,773) - 808,566 Infrastructure 64,750,866 2,121,962 - - 66,872,828 Total accumulated depreciation 76,525,186 3,448,962 (531,149)0 79,442,999 Total capital assets being depreciated - net 43,489,103 4,114,390 (61,289)0 47,542,204 Governmental activities capital assets - net $55,151,912 $10,263,427 ($3,854,377) ($432,707) $61,128,255 56 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities: Capital assets, not being depreciated: Construction in progress $10,336,586 $792,024 ($8,322,112) $432,707 $3,239,205 Capital assets, being depreciated: Machinery and shop equipment 550,553 152,220 (33,030) - 669,743 Water and sewer systems 53,848,779 8,322,112 - - 62,170,891 Total capital assets, being depreciated 54,399,332 8,474,332 (33,030)0 62,840,634 Accumulated depreciation for: Machinery and shop equipment 293,507 39,207 (31,460) - 301,254 Water and sewer systems 21,076,214 1,136,355 - - 22,212,569 Total accumulated depreciation 21,369,721 1,175,562 (31,460)0 22,513,823 Total capital assets being depreciated - net 33,029,611 7,298,770 (1,570)0 40,326,811 Business-type activities capital assets - net $43,366,197 $8,090,794 ($8,323,682) $432,707 $43,566,016 Depreciation expense was charged to functions/programs of the City as follows: Governmental activities: General government $587,343 Public safety 302,722 Public services 2,558,047 Conservation of natural resources 850 Total depreciation expense - governmental activities $3,448,962 Business-type activities: Water $625,544 Sewer 550,018 Total depreciation expense - business-type activities $1,175,562 57 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021 consisted of the following: Final Issue Maturity Interest Original Payable Date Date Rate Issue 12/31/2021 Governmental activities: General Obligation Bonds: G.O. TIF Bonds, Series 2007A 07/15/07 02/01/24 4.00% - 4.125% $4,215,000 $790,000 G.O. Refunding Bonds, Series 2012A 11/15/12 02/01/24 1.00% - 2.00% 2,015,000 490,000 G.O. Bonds, Series 2015A 08/01/15 02/01/31 2.00% - 3.00% 3,095,000 2,105,000 EDA Lease Revenue Bonds, Series 2015B 10/01/15 04/01/36 2.00% - 3.00% 4,350,000 3,485,000 G.O. Utility Revenue Bonds, Series 2016A 11/23/16 02/01/27 2.00% 1,420,000 875,000 G.O. Tax Abatement Refunding Bonds, Series 2016C 11/23/16 02/01/23 1.00% - 1.50% 1,600,000 595,000 G.O. Bonds, Series 2018A 12/19/18 02/01/34 3.00% - 5.00% 6,915,000 6,460,000 G.O Utility Revenue Bonds, Series 2020A 07/08/20 02/01/35 2.00% - 4.00% 4,330,000 4,055,000 G.O. Street Reconstruction Bonds, Series 2021A 07/15/21 02/01/32 1.00% - 4.00% 1,815,000 1,815,000 Total General Obligation Bonds 29,755,000 20,670,000 Special Assessment Bonds: G.O. Improvement Bonds, Series, 2013A 07/15/13 02/01/24 1.25% - 4.00% 615,000 195,000 G.O. Improvement Bonds, Series 2014A 11/20/14 02/01/26 0.40% - 2.30% 2,645,000 650,000 Total Special Assessment Bonds 5,235,000 845,000 Direct Borrowings: G.O. Certificates of Indebtedness, Series 2019 02/01/19 12/31/22 1.00%388,535 131,535 G.O. Capital Note, Series 2016A 04/14/16 02/01/26 2.00%294,525 103,950 G.O. Certificates of Indebtness 2020A 01/01/20 12/31/23 1.00%294,235 199,235 Total Direct Borrowings 1,281,195 434,720 Unamortized bond premiums 1,102,333 889,410 Unamortized bond discounts (38,362) (7,948) Compensated absences payable N/A 857,546 Total Government Activities $37,335,166 $23,688,728 Business-Type Activities: Compensated absences payable N/A $50,396 58 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 CHANGES IN LONG-TERM DEBT The following is a schedule of changes in City indebtedness for the year ended December 31, 2021: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities: General obligation bonds $20,685,000 $1,815,000 $1,830,000 $20,670,000 $1,845,000 Special assessment bonds 1,805,000 - 960,000 845,000 215,000 Direct borrowings 793,720 - 359,000 434,720 264,360 Total bonds and notes payable 23,283,720 1,815,000 3,149,000 21,949,720 2,324,360 Unamortized bond premiums 859,061 102,502 72,153 889,410 - Unamortized bond discounts (10,629) - (2,681) (7,948) - Compensated absences payable 819,255 698,028 659,737 857,546 605,427 Total governmental activities $24,951,407 $2,615,530 $3,878,209 $23,688,728 $2,929,787 Business-Type Activities: Compensated absences payable $41,838 $47,398 $38,840 $50,396 $47,876 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 – the 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 – the 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. 59 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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 2022 $2,060,000 $638,513 $264,360 $5,387 2023 2,305,000 570,817 134,885 2,405 2024 2,080,000 501,795 35,475 710 2025 1,615,000 444,190 - - 2026 1,525,000 394,554 - - 2027-2031 7,340,000 1,223,534 - - 2032-2036 4,590,000 282,294 - - Total $21,515,000 $4,055,697 $434,720 $8,501 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. 60 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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 2019- 2023 $335,080 $335,511 $352,286 2007A G.O. TIF Bonds Infrastructure improvements 2008 - 2024 $840,294 $267,126 $267,126 2012A G.O. Bonds Infrastructure improvements 2013 - 2024 $501,763 $168,560 $175,896 2013A Improvement Bonds Infrastructure improvements Special assessments 2014 - 2024 $206,700 $69,000 $39,000 2014A Improvement Bonds Infrastructure improvements Special assessments 2015 - 2026 $680,534 $406,390 $125,601 2015A G.O. Bonds Infrastructure improvements Ad valorem taxes 2016 - 2031 $2,368,206 $256,263 $266,923 2015B EDA Lease Revenue Bonds Construction of a fire station Ad valorem taxes 2016 - 2036 $4,486,206 $299,488 $316,877 2016A Capital Note Cable communications equipment Franchise fees 2016 - 2024 $108,141 $35,739 $37,526 2016A Utility Revenue Bonds Water infrastructure improvements 2017 - 2027 $928,150 $158,900 $158,900 2016C G.O. Tax Abatement Bonds Infrastructure improvements Ad valorem taxes 2017 - 2023 $603,893 $285,423 $313,567 2018A G.O. Bonds Infrastructure improvements 2019-2034 $8,095,356 $631,413 $877,094 2020A G.O. Utility Revenue Bonds Infrastructure improvements 2021-2035 $4,841,100 $412,061 $643,791 2021A G.O. Street Reconstruction Bonds Infrastructure improvements 2021-2032 $2,018,495 $ - $ - Current YearRevenue Pledged Ad valorem taxes Trunk utility charges via transfers Ad valorem taxes, trunk utility charges, special assessments Tax increment, MSA funding via transfers Ad valorem taxes, special assessments Trunk utility charges via transfers 61 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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. 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 individuals hired on or 62 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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. The postretirement increase is 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 2021 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, 2021 were $223,767. The City’s contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Police and Fire members were required to contribute 11.80% of their annual covered salary in fiscal year 2021 and the City was required to contribute 17.70%. The City’s contributions to the PEPFF for the year ended December 31, 2021 were $479,593. 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, 2021, the City reported a liability of $1,669,745 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 $50,998. The net pension liability was measured as of June 30, 2021, 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 63 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 received by PERA during the measurement period for employer payroll paid dates from July 1, 2020 through June 30, 2021, relative to the total employer contributions received from all of PERA’s participating employers. The City’s proportionate share was 0.0391% at the end of the measurement period and 0.0392% for the beginning of the period. For the year ended December 31, 2021, the City recognized pension expense of ($38,656) for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $4,115 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, 2021, 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 $10,245 $51,099 Changes in actuarial assumptions 1,019,512 36,921 Net collective between projected and actual investment earnings - 1,445,728 Changes in proportion 24,720 20,649 Contributions paid to PERA subsequent to the measurement date 113,071 - Total $1,167,548 $1,554,397 The $113,071 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, 2022. 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 2022 ($56,401) 2023 (34,710) 2024 (14,390) 2025 (394,419) 2026 - Thereafter - 2. PEPFF Pension Costs At December 31, 2021, the City reported a liability of $1,724,411 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2021 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 paid dates from July 1, 2020 through June 30, 2021, relative to the total employer contributions 64 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 received from all of PERA’s participating employers. The City’s proportionate share was 0.2234% at the end of the measurement period and 0.2336% for the beginning of the period. The State of Minnesota also contributed $18 million to PEPFF during the plan fiscal year ended June 30, 2021. The contribution consisted of $9 million in direct state aid that meets the definition of a special funding situation and $9 million in supplemental state aid that does not meet the definition of a special funding situation. The direct state aid was paid on October 1, 2020. Thereafter, by October 1 of each year, the state will pay $9 million to the PEPFF until full funding is reached or July 1, 2048, whichever is earlier. The $9 million in supplemental state aid will continue until the fund is 90% funded, or until the State Patrol Plan (administered by the Minnesota State Retirement System) is 90% funded, whichever occurs later. Strong asset returns for the fiscal year ended 2021 will accelerate the phasing out of these state contributions, although we do not anticipate them to be phased out during the fiscal year ending 2022. 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 $9 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, 2021, the City recognized pension expense of ($248,209) for its proportionate share of the Police and Fire Plan’s pension expense. The City recognized an additional $14,122 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $9 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 supplemental state aid. The City also recognized $20,106 for the year ended December 31, 2021 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, 2021, 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 $328,497 $ - Changes in actuarial assumptions 2,534,433 844,495 Net collective between projected and actual investment earnings - 3,287,248 Changes in proportion 289,529 705,260 Contributions paid to PERA subsequent to the measurement date 241,688 - Total $3,394,147 $4,837,003 65 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 The $241,688 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, 2022. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as outflows: Year Ended Pension December 31, Expense 2022 ($1,075,095) 2023 (491,054) 2024 (258,660) 2025 (396,124) 2026 536,389 Thereafter - The net pension liability will be liquidated by the general, water and sewer funds. E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2021 actuarial valuation was determined using an individual entry-age normal actuarial cost method and the following actuarial assumptions: Inflation 2.25% per year Investment Rate of Return 7.50% The long-term investment rate of return is based on a review of inflation and investment return assumptions from a number of national investment consulting firms. The review provided a range of investment return rates deemed to be reasonable by the actuary. An investment return of 6.50% was deemed to be within that range of reasonableness for financial reporting purposes. Salary growth assumptions in the GERF range in annual increments from 10.25% after one year of service to 3.0% after 29 years of service and 6.0% per year thereafter. In the PEPFF, salary growth assumptions range from 11.75% after one year of service to 3.0% after 24 years of service. Mortality rates for GERF were based on the Pub-2010 General Employee Mortality Table. Mortality rates for PEPFF were based on the Pub-2010 Public Safety Employee Mortality tables. The tables are adjusted slightly to fit PERA’s experience. Cost of living benefit increases after retirement are assumed to be 1.25% per year for GERF and 1.0% per year for PEPFF. Actuarial assumptions for GERF are reviewed every four years. 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 and adopted by the Board and became effective with the July 1, 2021 actuarial valuation. 66 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 The following changes in actuarial assumptions and plan provisions occurred in 2021: General Employees Fund Changes in Actuarial Assumptions: The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. Police and Fire Fund Changes in Actuarial Assumptions: The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. The inflation assumption was changed from 2.50% to 2.25%. The payroll growth assumption was changed from 3.25% to 3.00%. The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020. Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, slightly more unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members was changed from 60% to 70%. 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 equity 33.5%5.10% International equity 16.5%5.30% Fixed income 25.0%0.75% Private markets 25.0%5.90% Totals 100% 67 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 F. DISCOUNT RATE The discount rate used to measure the total pension liability in 2021 was 6.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employers will be made at rates set in Minnesota Statutes. Based on these assumptions, the fiduciary net position of the GERF and the PEPFF was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability, 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 one percentage point lower or one percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (5.5%) Discount Rate (6.5%) Discount Rate (7.5%) Proportionate share of the GERF net pension liability $3,405,428 $1,669,745 $245,512 Proportionate share of the PEPFF net pension liability $5,474,714 $1,724,411 ($1,349,908) 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, 2021 is as follows: GERF ($34,541) PEPFF (234,087) Fire Pension Plan (Note 8) 116,950 Total ($151,678) 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, 2021 (measurement date), the plan 68 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 covered 20 active firefighters and one vested terminated fire fighter whose pension benefits are deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 353G. B. BENEFITS PROVIDED The SVF provides 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. Members are eligible for a lump-sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting schedule that increases from 5 years at 40% through 20 years at 100%. C. CONTRIBUTIONS The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota Statutes, and voluntary City contributions. The State of Minnesota contributed $137,872 in fire state aid to the plan for the year ended December 31, 2021. 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, 2021 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, 2021, the City reported a net pension asset of $533,340 for the SVF plan. The net pension asset was measured as of December 31, 2021. 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, 2020 $254,832 $814,379 ($559,547) Changes for the year: Service cost 67,890 - 67,890 Interest on pension liability 19,363 - 19,363 Actuarial experience (gains) / losses 59,354 - 59,354 Projected investment earnings - 48,864 (48,864) Changes in benefit level 100,057 100,057 Contributions - employer - - - Contributions - State of MN - 137,872 (137,872) Asset (gain) / loss - 34,428 (34,428) Benefit payouts - - - PERA administrative fee - (707)707 Net changes 246,664 220,457 26,207 Balance end of year December 31, 2021 $501,496 $1,034,836 ($533,340) During 2021, the benefit level per year of service increased from $5,000 to $7,000. 69 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 For the year ended December 31, 2021, the City recognized pension expense of $116,950. At December 31, 2021, the City reported deferred outflows and inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between projected and actual investment earnings $ - $79,375 Differences between expected and actual economic experience 61,435 58,112 Total $61,435 $137,487 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 2022 ($18,573) 2023 (38,971) 2024 (23,494) 2025 4,986 2026 - Thereafter - E. ACTUARIAL ASSUMPTIONS The total pension liability at December 31, 2021, 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 2021. 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. 70 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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 $498,972 $533,340 $566,169 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. 71 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 3. Description of Significant Investment Policy Changes During the Year The SBI made no significant changes to their investment policy during fiscal year 2021 for the Volunteer Firefighter Fund. I. PENSION PLAN FIDUCIARY NET POSITION Detailed information about the SVF plan’s fiduciary net position as of December 31, 2021 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. 72 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 C. PARTICIPANTS As of the January 1, 2021 actuarial valuation, participants of the plan consisted of: Active employees 60 Inactive employees or beneficiaries currently receiving benefits 3 Total 63 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $502,243 was measured as of December 31, 2021 and was determined by an actuarial valuation as of January 1, 2021. Changes in the total OPEB liability during 2021 were: Balance - beginning of year $613,474 Changes for the year: Service cost 65,484 Interest 13,256 Changes of benefit terms - Differences between expected and actual experience (250,908) Changes in assumptions 93,391 Benefit payments (32,454) Net changes (111,231) Balance - end of year $502,243 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, 2021 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 2.25% Investment rate of return N/A Healthcare cost trend rates 6.25% for 2021, decreasing 0.25% per year to an ultimate rate of 5% for 2026 and beyond Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the 20-year AA rated municipal bond rate as of December 31, 2021, obtained from https://www.spglobal.com/spdji/en/indices/fixed-income/sp-municipal-bond-20-year-high-grade-rate- index/#overview. 73 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Pre-retirement mortality rates were based on the RP-2014 Total Dataset Mortality with Improvement Scale MP-2020. Post-retirement, disability retirement, and survivor retirement mortality rates were based on the RP-2014 White Collar Mortality with Improvement Scale MP-2020. Based on past experience of the plan, 50% of future retirees are assumed to continue medical coverage until age 65. 15% of future pre-Medicare retirees are assumed to select spousal coverage. No spousal coverage is assumed for other future retirees. 25% of police/fire employees are assumed to retire at age 60, the balance at age 65. 20% 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 1.25%2.25%3.25% Total OPEB liability $541,746 $502,243 $463,971 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 (5.25% decreasing to 4%) or 1% higher (7.25% decreasing to 6%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (5.25% decreasing to 4%) (6.25% decreasing to 5%) (7.25% decreasing to 6%) Total OPEB liability $430,547 $502,243 $589,592 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2021, the City recognized $36,604 of OPEB expense. At December 31, 2021, 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 $92,843 $450,486 Differences between expected and actual experience relate almost exclusively to the public safety function, and therefore, have been allocated entirely to governmental activities. 74 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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 2022 ($42,136) 2023 (42,136) 2024 (42,136) 2025 (42,136) 2026 (42,136) Thereafter (146,963) ($357,643) Note 10 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 2021 as follows: Fund Balance Deficit Major Funds: G.O. Improvement Bonds of 2016B ($2,470,082) Nonmajor Funds: Tax Increment Financing 1-11 (413,005) The City intends to fund these deficits through future land sale proceeds and tax increment collections. 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: Engineering/planning $109,760 $114,139 $4,379 75 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021 is as follows: Receivable Payable Short-term advances: Nonmajor Funds: The Rookery Activity Center $ - $35,211 Closed Bond Fund 457,303 - Tax Increment Financing 1-11 - 422,092 $457,303 $457,303 Long-term interfund loans: Major Funds: G.O. Improvement Bonds of 2016B $ - $2,470,082 Sewer Fund 559,110 - Nonmajor Funds: Building and Facilities 1,910,972 - $2,470,082 $2,470,082 Note 12 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2021 are as follows: Transfer In Transfer Out Major Funds: General Fund $ - $951,113 G.O. Improvement Note of 2009A - 65,330 G.O. Improvement Bonds of 2016B 369,065 - Area and Unit Charge - 1,264,474 MSA Construction 65,330 267,126 Pavement Management 1,034,046 - Water Fund - 322,933 Nonmajor governmental funds 1,771,600 369,065 Total $3,240,041 $3,240,041 During 2021, 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 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. 76 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 Note 13 FUND BALANCE At December 31, 2021, a summary of the governmental fund balance classifications is as follows: G.O.G.O.Other General Improvement Improvement Area and MSA Pavement Governmental Fund Note of 2009A Bonds of 2016B Unit Charge Construction Management Funds Total Nonspendable: Prepaid items $356,619 $ - $ - $ - $ - $ - $108,573 $465,192 Corpus of permanent fund - - - - - - 100,000 100,000 Total nonspendable 356,619 0 0 0 0 0 208,573 565,192 Restricted for: Debt service - 141 - - - - 5,239,863 5,240,004 Capital improvements - - - - - 586,675 1,778,971 2,365,646 Blue Heron Days - - - - - - 12,071 12,071 Narcotics & forfeiture funds - - - - - - 188,541 188,541 K-9 Unit purposes - - - - - - 16,232 16,232 Tax increment purposes - - - - - - 580,723 580,723 Environmental purposes - - - - - - 34,189 34,189 Total restricted 0 141 0 0 0 586,675 7,850,590 8,437,406 Committed for: Future projects 55,566 - - - - - - 55,566 Fire turnout gear 15,804 - - - - - - 15,804 Economic development - - - - - - 236,839 236,839 Cable TV and communications purposes - - - - - - 270,160 270,160 Recreation purposes - - - - - - 24,132 24,132 Total committed 71,370 0 0 0 0 0 531,131 602,501 Assigned for: Capital improvements - - - 9,659,930 3,134,847 385,973 6,353,034 19,533,784 Unassigned 7,719,761 - (2,470,082) - - - (461,236) 4,788,443 Total fund balance $8,147,750 $141 ($2,470,082) $9,659,930 $3,134,847 $972,648 $14,482,092 $33,927,326 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 $1,172,535, 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 2022 $90,462 2023 93,196 2024 95,977 2025 98,853 2026 101,822 Thereafter 267,755 $748,065 77 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021: 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 $17,901 $21,416 Current 47,909 267,132 427,289 399,053 Captured - retained $47,781 $251,263 $409,388 $377,637 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 $204,190 and the outstanding balance at December 31, 2021 was $475,800. 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. 78 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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, 2021. C. COMMITTED CONTRACTS At December 31, 2021, the City had commitments of $462,701 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. 79 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2021 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. 92 Omnibus 2020. The provisions of this Statement are effective for reporting periods beginning after June 15, 2021. 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 Statement No. 99 Omnibus 2022. The provisions of this Statement contain multiple effective dates, the first being 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 on the financial position and results of operations of the City. 80 REQUIRED SUPPLEMENTARY INFORMATION 81 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, 2021 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: General propery taxes: Current and delinquent $9,267,367 $9,327,367 $9,268,523 ($58,844) Penalties and interest 4,000 4,000 11,808 7,808 Total general property taxes 9,271,367 9,331,367 9,280,331 (51,036) Licenses and permits: Business 143,959 83,359 83,348 (11) Non-business 799,060 1,310,060 1,317,407 7,347 Total licenses and permits 943,019 1,393,419 1,400,755 7,336 Intergovernmental: State: Police state aid 255,000 246,000 246,117 117 OTS grant - 30,000 29,163 (837) MSA maintenance 270,000 247,000 246,536 (464) Other 28,000 38,000 35,742 (2,258) County solid waste grant 78,523 61,523 68,721 7,198 Total intergovernmental 631,523 622,523 626,279 3,756 Charges for services: General government 22,933 48,933 52,176 3,243 Engineering and planning fees 29,076 34,076 44,385 10,309 Public safety 190,800 160,800 174,492 13,692 Public services 12,250 6,750 16,238 9,488 Investment management charge to other funds 50,000 50,000 50,000 - Total charges for services 305,059 300,559 337,291 36,732 Fines and forfeits 106,100 74,100 73,206 (894) Investment earnings 30,000 - (50,817) (50,817) Miscellaneous: Gas franchise fees 55,000 55,000 67,620 12,620 Building lease revenue 115,000 115,000 114,154 (846) Refunds and reimbursements 35,000 60,000 59,468 (532) Donations 500 500 - (500) Other 5,000 5,000 3,087 (1,913) Total miscellaneous 210,500 235,500 244,329 8,829 Total revenues 11,497,568 11,957,468 11,911,374 (46,094) See accompanying notes to the required supplementary information. 82 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, 2021 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: General government: Mayor and city council: Current: Personal services 47,563 47,563 47,030 533 Other services and charges 18,700 21,200 20,474 726 Contractual services 23,500 23,500 23,421 79 Total mayor and city council 89,763 92,263 90,925 1,338 Elections: Current: Personal services 10,160 10,160 10,075 85 Supplies 500 500 373 127 Other services and charges 2,000 2,000 1,781 219 Contractual services 6,500 4,500 4,215 285 Total elections 19,160 17,160 16,444 716 Administration: Current: Personal services 506,436 519,936 514,889 5,047 Supplies - - 5 (5) Other services and charges 34,860 18,860 18,037 823 Contractual services 10,539 10,539 12,547 (2,008) Total administration 551,835 549,335 545,478 3,857 Finance: Current: Personal services 319,168 319,168 314,625 4,543 Supplies 1,000 1,000 280 720 Other services and charges 255,759 256,759 259,782 (3,023) Contractual services 110,300 92,300 92,107 193 Total finance 686,227 669,227 666,794 2,433 Cable TV: Current: Personal services - - (2)2 Contractual services 2,658 - - - Total cable tv 2,658 0 (2)2 Legal consultants: Current: Contractual services 135,000 125,000 119,890 5,110 Engineering/planning: Current: Contractual services 107,160 107,160 111,129 (3,969) Capital outlay 2,600 2,600 3,010 (410) Total engineering/planning 109,760 109,760 114,139 (4,379) See accompanying notes to the required supplementary information. 83 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, 2021 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) General government: (continued) Charter commission: Current: Other services and charges 2,500 1,000 302 698 Government buildings: Current: Personal services 2,511 2,511 2,510 1 Supplies 42,400 42,400 37,998 4,402 Other services and charges 378,475 387,475 385,290 2,185 Contractual services 71,200 98,200 98,024 176 Capital outlay - 6,000 5,863 137 Total government buildings 494,586 536,586 529,685 6,901 Total general government 2,091,489 2,100,331 2,083,655 16,676 Public safety: Police: Current: Personal services 4,099,954 3,819,954 3,759,351 60,603 Supplies 46,630 46,630 39,164 7,466 Other services and charges 166,524 166,524 162,885 3,639 Contractual services 51,839 51,839 49,119 2,720 Capital outlay 3,100 3,100 3,100 - Total police 4,368,047 4,088,047 4,013,619 74,428 Fire protection: Current: Personal services 535,860 432,860 427,306 5,554 Supplies 26,900 26,900 23,597 3,303 Other services and charges 91,560 75,756 75,495 261 Contractual services 44,565 34,565 32,386 2,179 Total fire protection 698,885 570,081 558,784 11,297 Building inspection: Current: Personal services 359,765 350,605 347,243 3,362 Supplies 2,150 2,150 970 1,180 Other services and charges 11,440 11,440 11,142 298 Contractual services 3,325 41,875 41,549 326 Total building inspection 376,680 406,070 400,904 5,166 Total public safety 5,443,612 5,064,198 4,973,307 90,891 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 4 of 6 For The Year Ended December 31, 2021 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) Public services: Streets: Current: Personal services 626,152 613,152 607,132 6,020 Supplies 151,000 144,500 134,687 9,813 Other services and charges 110,600 95,600 92,460 3,140 Contractual services 103,500 119,000 119,092 (92) Capital outlay 17,500 17,500 18,007 (507) Total streets 1,008,752 989,752 971,378 18,374 Fleet: Current: Personal services 218,294 215,294 212,963 2,331 Supplies 183,000 182,000 180,493 1,507 Other services and charges 85,865 85,865 87,419 (1,554) Contractual services 67,000 52,500 44,820 7,680 Capital outlay 5,000 5,000 4,680 320 Total fleet 559,159 540,659 530,375 10,284 Parks: Current: Personal services 497,044 482,544 477,798 4,746 Supplies 45,000 37,000 34,651 2,349 Other services and charges 50,550 75,550 72,022 3,528 Contractual services 97,700 129,700 129,288 412 Capital outlay - 375,000 369,434 5,566 Total parks 690,294 1,099,794 1,083,193 16,601 Recreation: Current: Other services and charges - 34,745 34,745 - Total recreation 0 34,745 34,745 0 Total public services 2,258,205 2,664,950 2,619,691 45,259 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 5 of 6 For The Year Ended December 31, 2021 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) Conservation of natural resources: Forestry: Current: Personal services 37,775 37,775 37,703 72 Supplies 3,250 3,250 611 2,639 Other services and charges 380 380 373 7 Contractual services 30,000 37,000 36,790 210 Total forestry 71,405 78,405 75,477 2,928 Environmental: Current: Personal services 51,811 43,811 42,250 1,561 Supplies 1,000 1,000 745 255 Other services and charges 9,430 9,430 5,679 3,751 Contractual services 1,100 1,100 - 1,100 Total environmental 63,341 55,341 48,674 6,667 Solid waste abatement: Current: Personal services 47,503 41,003 38,476 2,527 Supplies 1,100 1,100 713 387 Other services and charges 7,220 2,720 2,871 (151) Contractual services 22,700 16,700 16,036 664 Total solid waste abatement 78,523 61,523 58,096 3,427 Total conservation of natural resources 213,269 195,269 182,247 13,022 Community development: Community development: Current: Personal services 226,155 226,155 225,098 1,057 Supplies 100 100 30 70 Other services and charges 7,900 7,900 5,513 2,387 Contractual services 1,025 1,025 702 323 Total community development 235,180 235,180 231,343 3,837 Economic development: Current: Personal services 21,219 27,419 25,775 1,644 Other services and charges 14,040 36,040 33,611 2,429 Contractual services 73,225 54,225 55,899 (1,674) Total economic development 108,484 117,684 115,285 2,399 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 6 of 6 For The Year Ended December 31, 2021 Budgeted Amounts 2021 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) Planning and zoning commission: Current: Personal services 113,598 113,598 113,369 229 Supplies 200 200 159 41 Other services and charges 16,250 16,250 13,446 2,804 Contractual services 38,000 13,000 7,731 5,269 Total planning and zoning commission 168,048 143,048 134,705 8,343 Total community development 511,712 495,912 481,333 14,579 Other: Contingency 75,000 - - - Total expenditures 10,593,287 10,520,660 10,340,233 180,427 Revenues over (under) expenditures 904,281 1,436,808 1,571,141 134,333 Other financing sources (uses): Transfers out (926,113) (951,113) (951,113) - Net change in fund balance ($21,832) $485,695 620,028 $134,333 Fund balance - January 1 7,527,722 Fund balance - December 31 $8,147,750 See accompanying notes to the required supplementary information. 87 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 2021 2020 2019 2018 2017 Total OPEB liability: Service cost $65,484 $63,577 $53,789 $16,547 $16,990 Interest 13,256 12,256 10,893 21,355 22,542 Changes of benefit terms - - - - - Differences between expected and actual experience (250,908) - (245,168) - (51,083) Changes in assumptions 93,391 - - - - Benefit payments (32,454) (22,990) (15,527) (27,798) (31,536) Net change in total OPEB liability (111,231) 52,843 (196,013) 10,104 (43,087) Total OPEB liability - beginning 613,474 560,631 756,644 746,540 789,627 Total OPEB liability - ending $502,243 $613,474 $560,631 $756,644 $746,540 Covered-employee payroll $3,443,877 $3,496,085 $3,379,110 $3,240,932 $3,499,836 Total OPEB liability as a percentage of covered-employee payroll 14.6% 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. 88 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% 2021 2021 0.0391% 1,669,745 50,998 1,720,743 2,812,588 61.2% 87.0% 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. 89 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% 2021 223,767 223,767 - 2,983,557 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. 90 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% 2021 2021 0.2234%1,724,411 2,602,793 66.3%93.7% 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 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% 2021 479,593 479,593 - 2,709,565 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. 92 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: 2021 2020 2019 2018 2017 Total pension liability: Service cost $67,890 $46,865 $52,320 $48,182 $47,952 Interest on pension liability 19,363 19,051 16,603 8,754 6,191 Changes of benefit terms - - - - - Differences between expected and actual experience 59,354 (81,734) (22,680) 69,760 (11,672) Changes of assumptions - - - - - Changes in benefit level 100,057 - - - - Benefit payments - - - - - Net change in total pension liability 246,664 (15,818) 46,243 126,696 42,471 Total pension liability - beginning 254,832 270,650 224,407 97,711 55,240 Total pension liability - ending (a) $501,496 $254,832 $270,650 $224,407 $97,711 Plan fiduciary net position: Contributions - employer $ - $ - $ - $ - $ - Contributions - State of Minnesota 137,872 130,846 121,630 118,144 113,797 Contributions - other - - - 64,869 58,800 Net investment income 83,292 95,960 78,063 (18,696) 9,153 Benefit payments - - - - - Administrative expense (707) (746) (694) (702) (572) Net change in plan fiduciary net position 220,457 226,060 198,999 163,615 181,178 Plan fiduciary net position - beginning 814,379 588,319 389,320 225,705 44,527 Plan fiduciary net position - ending (b) $1,034,836 $814,379 $588,319 $389,320 $225,705 Net pension liability/(asset) - ending (a) - (b) ($533,340) ($559,547) ($317,669) ($164,913) ($127,994) Plan fiduciary net position as a percentage of the total pension liability 206%320%217%173%231% Covered payroll N/A 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 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. 93 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 2021 - - - 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. Additional years will be reported as they become See accompanying notes to the required supplementary information. 94 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021 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. Note C PENSION INFORMATION PERA – General Employees Retirement Fund 2021 Changes in Actuarial Assumptions: The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. The mortality improvement scale was changed from Scale MP-2019 to Scale MP-2020. 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%. 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. 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 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. 95 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021 2018 Changes in Actuarial Assumptions: The mortality projection scale was changed from MP-2015 to MP-2017. The assumed benefit increase was changed from 1.00% per year through 2044 and 2.50% per year thereafter to 1.25% per year. 2017 Changes in Actuarial Assumptions: The Combined Service Annuity (CSA) loads were changed from 0.8% for active members and 60% for vested and non-vested deferred members. The revised CSA loads are now 0.0% for active member liability, 15.0% for vested deferred member liability and 3.0% for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0% per year for all years to 1.0% per year through 2044 and 2.5% per year thereafter. 2016 Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2021 Changes in Actuarial Assumptions: The investment return and single discount rates were changed from 7.50% to 6.50% for financial reporting purposes. The inflation assumption was changed from 2.50% to 2.25%. The payroll growth assumption was changed from 3.25% to 3.00%. The base mortality tables for healthy annuitants, disabled annuitants and employees were changed from RP-2014 tables to Pub-2010 Public Safety Mortality tables. The mortality improvement scale was changed from MP-2019 to MN-2020. Assumed salary increase and retirement rates were modified as recommended in the July 14, 2020 experience study. The changes result in a decrease in gross salary increase rates, slightly more unreduced retirements and fewer assumed early retirements. Assumed rates of withdrawal were changed from select and ultimate rates to service-based rates. The changes result in more assumed terminations. Assumed rates of disability were increased for ages 25-44 and decreased for ages over 49. Overall, proposed rates result in more projected disabilities. Assumed percent married for active female members was changed from 60% to 70%. 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. 96 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2021 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%. 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 During 2021, the benefit level per year of service increased from $5,000 to $7,000. There have been no other factors, such as changes to assumptions, that affect trends in the amounts reported since the Fire Division was created. 97 - This page intentionally left blank - 98 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 99 - This page intentionally left blank - 100 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. 101 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET Statement 18 NONMAJOR GOVERNMENTAL FUNDS December 31, 2021 Permanent Fund Total Environment & Nonmajor Special Debt Capital Stewardship Governmental Revenue Service Project Fund Funds Assets Cash and investments $1,922,627 $5,241,849 $6,578,603 $142,603 $13,885,682 Due from other governmental units 30,457 - - - 30,457 Accounts receivable - net 1,969 - 4,680 - 6,649 Prepaid items 108,573 - - - 108,573 Advances to other funds - - 457,303 - 457,303 Taxes receivable: Due from county - - 9,361 - 9,361 Special assessments receivable: Due from county - 14 245 - 259 Delinquent - - 1,387 - 1,387 Deferred - 569,840 1,024,075 - 1,593,915 Interfund loan receivable - - 1,910,972 - 1,910,972 Total assets $2,063,626 $5,811,703 $9,986,626 $142,603 $18,004,558 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $45,462 $2,000 $201,757 $8,414 $257,633 Due to other governmental units 3,822 - - - 3,822 Advances from other funds 35,211 - 422,092 - 457,303 Retainage payable - - 25,684 - 25,684 Unearned revenue 1,170,814 - 11,908 - 1,182,722 Total liabilities 1,255,309 2,000 661,441 8,414 1,927,164 Deferred inflows of resources: Unavailable revenue - 569,840 1,025,462 - 1,595,302 Fund balance: Nonspendable 108,573 - - 100,000 208,573 Restricted 216,844 5,239,863 2,359,694 34,189 7,850,590 Committed 531,131 - - - 531,131 Assigned - - 6,353,034 - 6,353,034 Unassigned (48,231) - (413,005) - (461,236) Total fund balance 808,317 5,239,863 8,299,723 134,189 14,482,092 Total liabilities, deferred inflows of resources, and fund balance $2,063,626 $5,811,703 $9,986,626 $142,603 $18,004,558 102 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, 2021 Permanent Fund Total Environment & Nonmajor Special Debt Capital Stewardship Governmental Revenue Service Project Fund Funds Revenues: General property taxes $ - $1,909,448 $ - $ - $1,909,448 Tax increment - - 873,310 - 873,310 Special assessments - 96,013 178,784 - 274,797 Intergovernmental 198,783 - - 198,783 Charges for services 63,610 - 1,464,054 - 1,527,664 Fines and forfeits 40,153 - - - 40,153 Investment earnings (4,048) (22,120) (32,336)(766)(59,270) Miscellaneous 18,464 37,526 199,134 8,800 263,924 Total revenues 316,962 2,020,867 2,682,946 8,034 5,028,809 Expenditures: Current: General government 1,481 - 181,616 - 183,097 Public safety 57,454 - - - 57,454 Public services 158,238 - 262,144 - 420,382 Community development - - 318,860 21,814 340,674 Capital outlay: Public safety 47,223 - 205,432 - 252,655 Public services - - 1,453,219 - 1,453,219 Debt service: Principal - 2,639,000 - - 2,639,000 Interest and fiscal charges - 695,506 - - 695,506 Total expenditures 264,396 3,334,506 2,421,271 21,814 6,041,987 Revenues over (under) expenditures 52,566 (1,313,639) 261,675 (13,780) (1,013,178) Other financing sources (uses): Transfers in - 1,531,600 240,000 - 1,771,600 Transfers out - - (369,065) - (369,065) Issuance of debt - 18,890 - - 18,890 Proceeds from sale of capital assets - - 398,355 - 398,355 Total other financing sources (uses)0 1,550,490 269,290 0 1,819,780 Net change in fund balance 52,566 236,851 530,965 (13,780)806,602 Fund balance - January 1 755,751 5,003,012 7,768,758 147,969 13,675,490 Fund balance - December 31 $808,317 $5,239,863 $8,299,723 $134,189 $14,482,092 103 - This page intentionally left blank - 104 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for 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. The Rookery Activity Center – established to account for activities relating to The Rookery Activity Center. 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. American Rescue Plan Act Funds – accounts for American Rescue Plan Act funds received by the City. 105 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS December 31, 2021 202 203 204 Cable 201 The Rookery Economic TV and Program Activity Development Communications 205 Blue Recreation Center Authority Fund Heron Days Assets Cash and investments $24,132 $ - $236,839 $270,160 $12,071 Due from other governmental units - 30,457 - - - Accounts receivable - net - 1,969 - - - Prepaid items - 108,573 - - - Total assets $24,132 $140,999 $236,839 $270,160 $12,071 Liabilities and Fund Balance Liabilities: Accounts payable $ - $41,624 $ - $ - $ - Due to other governmental units - 3,822 - - - Advances from other funds - 35,211 - - - Unearned revenue - - - - - Total liabilities - 80,657 - - - Fund balance: Nonspendable - 108,573 - - - Restricted - - - - 12,071 Committed 24,132 - 236,839 270,160 - Unassigned - (48,231) - - - Total fund balance 24,132 60,342 236,839 270,160 12,071 Total liabilities and fund balance $24,132 $140,999 $236,839 $270,160 $12,071 106 Statement 20 Total 206 210 213 Nonmajor Federal 207 State Federal American Special Forfeitures - Narcotics 208 DUI 209 Other Forfeitures - 211 K-9 Rescue Plan Revenue Justice Forfeitures Forfeitures Forfeitures Treasury Unit Act Funds Funds $33,207 $44,612 $74,827 $1,375 $37,674 $16,916 $1,170,814 $1,922,627 - - - - - - - 30,457 - - - - - - - 1,969 - - - - - - - 108,573 $33,207 $44,612 $74,827 $1,375 $37,674 $16,916 $1,170,814 $2,063,626 $ - $ - $3,154 $ - $ - $684 $ - $45,462 - - - - - - - 3,822 - - - - - - - 35,211 - - - - - - 1,170,814 1,170,814 - - 3,154 - - 684 1,170,814 1,255,309 - - - - - - - 108,573 33,207 44,612 71,673 1,375 37,674 16,232 - 216,844 - - - - - - - 531,131 - - - - - - - (48,231) 33,207 44,612 71,673 1,375 37,674 16,232 0 808,317 $33,207 $44,612 $74,827 $1,375 $37,674 $16,916 $1,170,814 $2,063,626 107 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, 2021 202 203 204 Cable 201 The Rookery Economic TV and Program Activity Development Communications 205 Blue Recreation Center Authority Fund Heron Days Revenues: Intergovernmental $ - $198,783 $ - $ - $ - Charges for services - - - 63,610 - Fines and forfeits - - - - - Investment earnings (123)(3)(1,278)(1,422)(62) Miscellaneous - 14,270 - - 4,194 Total revenues (123)213,050 (1,278)62,188 4,132 Expenditures: Current: General government - - 383 1,098 - Public safety - - - - - Public services - 152,708 - - 5,530 Capital outlay: Public safety - - - - - Total expenditures 0 152,708 383 1,098 5,530 Revenues over (under) expenditures (123)60,342 (1,661)61,090 (1,398) Fund balance - January 1 24,255 - 238,500 209,070 13,469 Fund balance - December 31 $24,132 $60,342 $236,839 $270,160 $12,071 108 Statement 21 Total 206 210 213 Nonmajor Federal 207 State Federal American Special Forfeitures - Narcotics 208 DUI 209 Other Forfeitures - 211 K-9 Rescue Plan Revenue Justice Forfeitures Forfeitures Forfeitures Treasury Unit Act Funds Funds - $ - $ - $ - $ - $ - $ - $198,783 - - - - - - - 63,610 26,081 185 13,887 - - - - 40,153 (171) (289) (398) (8) (184) (110) - (4,048) - - - - - - - 18,464 25,910 (104) 13,489 (8) (184) (110) 0 316,962 - - - - - - - 1,481 6,776 30,982 10,295 185 3,448 5,768 - 57,454 - - - - - - - 158,238 - - - - 47,223 - - 47,223 6,776 30,982 10,295 185 50,671 5,768 0 264,396 19,134 (31,086) 3,194 (193) (50,855) (5,878) 0 52,566 14,073 75,698 68,479 1,568 88,529 22,110 - 755,751 $33,207 $44,612 $71,673 $1,375 $37,674 $16,232 $0 $808,317 109 - This page intentionally left blank - 110 DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. The City’s Debt Service Funds account for four types of bonded indebtedness: General Debt Bonds – are repaid primarily from property taxes. Improvement Bonds and Notes – are repaid primarily from special assessments. Public Facility Lease Revenue Bonds – are repaid primarily from lease revenues received from the EDA leasing the buildings to the City of Lino Lakes and other tenants. Revenue Bonds – these bonds were issued to finance various improvements and will be repaid primarily from pledged revenues derived from the constructed assets. Capital Note – this note was issued to finance cable communications equipment and will be repaid from revenues derived from franchise fees. 111 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR DEBT SERVICE FUNDS December 31, 2021 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 $305,991 $148,378 $220,066 $361,493 $389,813 Special assessments receivable: Due from county - - - - - Deferred - - - 168,849 - Total assets $305,991 $148,378 $220,066 $530,342 $389,813 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $200 $200 $200 $200 Deferred inflows of resources: Unavailable revenue - - - 168,849 - Fund balance: Restricted 305,991 148,178 219,866 361,293 389,613 Total liabilities, deferred inflows of resources, and fund balance $305,991 $148,378 $220,066 $530,342 $389,813 112 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 346 G.O. Debt Bonds Bonds Note Bonds Bonds Bonds Bonds Bonds Service of 2015A of 2015B of 2016A of 2016A of 2016C of 2018A of 2020A of 2021A Funds $652,008 $336,699 $1,595 $268,250 $436,348 $1,871,556 $230,843 $18,809 $5,241,849 - - - - - 14 - - 14 - - - - - 400,991 - - 569,840 $652,008 $336,699 $1,595 $268,250 $436,348 $2,272,561 $230,843 $18,809 $5,811,703 $200 $200 $ - $200 $200 $200 $200 $ - $2,000 - - - - - 400,991 - - 569,840 651,808 336,499 1,595 268,050 436,148 1,871,370 230,643 18,809 5,239,863 $652,008 $336,699 $1,595 $268,250 $436,348 $2,272,561 $230,843 $18,809 $5,811,703 113 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, 2021 332 G.O. 336 G.O. 337 G.O. 315 TIF 335 G.O. Improvement Improvement 338 G.O. Certificates of Bonds Bonds Bonds Bonds Bonds Indebtedness of 2007A of 2012A of 2013A of 2014A of 2015A Revenues: General property taxes $352,286 $ - $175,896 $ - $ - $266,923 Special assessments - - - 39,000 - - Investment earnings (2,258) (818) (651) (1,833) (2,111) (2,720) Miscellaneous - - - - - - Total revenues 350,028 (818) 175,245 37,167 (2,111) 264,203 Expenditures: Debt service: Principal 326,000 230,000 160,000 60,000 390,000 205,000 Interest and fiscal charges 9,510 37,826 9,260 9,700 17,090 51,962 Total expenditures 335,510 267,826 169,260 69,700 407,090 256,962 Revenues over (under) expenditures 14,518 (268,644) 5,985 (32,533) (409,201) 7,241 Other financing sources (uses): Transfers in - 267,126 - - 125,601 - Issuance of debt - - - - - - Total other financing sources (uses) 0 267,126 0 0 125,601 0 Net change in fund balance 14,518 (1,518) 5,985 (32,533) (283,600) 7,241 Fund balance - January 1 291,473 149,696 213,881 393,826 673,213 644,567 Fund balance - December 31 $305,991 $148,178 $219,866 $361,293 $389,613 $651,808 114 Statement 23 339 EDA 341 G.O. 343 G.O.Total Lease 340 G.O. Utility Tax 345 G.O. Nonmajor Revenue Capital Revenue Abatement 344 G.O. Utility Revenue 346 G.O. Debt Bonds Note Bonds Bonds Bonds Bonds Bonds Service of 2015B of 2016A of 2016A of 2016C of 2018A of 2020A of 2021A Funds $316,877 $ - $ - $313,567 $483,899 $ - $ - $1,909,448 - - - - 57,013 - - 96,013 (977) (5) (1,456) (1,391) (7,751) (68) (81) (22,120) - 37,526 - - - - - 37,526 315,900 37,521 (1,456) 312,176 533,161 (68) (81) 2,020,867 180,000 33,000 140,000 275,000 365,000 275,000 - 2,639,000 120,137 4,526 19,550 11,072 267,111 137,762 - 695,506 300,137 37,526 159,550 286,072 632,111 412,762 0 3,334,506 15,763 (5) (161,006) 26,104 (98,950) (412,830) (81) (1,313,639) - - 158,900 - 336,182 643,791 - 1,531,600 - - - - - - 18,890 18,890 0 0 158,900 0 336,182 643,791 18,890 1,550,490 15,763 (5) (2,106) 26,104 237,232 230,961 18,809 236,851 320,736 1,600 270,156 410,044 1,634,138 (318) - 5,003,012 $336,499 $1,595 $268,050 $436,148 $1,871,370 $230,643 $18,809 $5,239,863 115 - This page intentionally left blank - 116 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. 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. Comp Plan Update – this fund accounts for the financing sources received and expenditures incurred to update the City’s Comprehensive Plan. 117 - This page intentionally left blank - 118 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 24 NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2 December 31, 2021 402 Capital 403 Office 405 301 Closed 401 Building Equipment Equipment Dedicated Bond Fund and Facilities Revolving Revolving Parks Assets Cash and investments $231,682 $703,452 $277,132 $49,675 $1,797,135 Accounts receivable - net - - 4,680 - - Advances to other funds 457,303 - - - - Taxes receivable: Due from county - - - - - Special assessments receivable: Due from county - - - - - Delinquent - - - - - Deferred - - - - - Interfund loan receivable - 1,910,972 - - - Total assets $688,985 $2,614,424 $281,812 $49,675 $1,797,135 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $2,500 $30,295 $2,104 $18,164 Advances from other funds - - - - - Retainage payable - - - - - Unearned revenue - 11,908 - - - Total liabilities 0 14,408 30,295 2,104 18,164 Deferred inflows of resources: Unavailable revenue - - - - - Fund balance: Restricted - - - - 1,778,971 Assigned 688,985 2,600,016 251,517 47,571 - Unassigned - - - - - Total fund balance 688,985 2,600,016 251,517 47,571 1,778,971 Total liabilities, deferred inflows of resources, and fund balance $688,985 $2,614,424 $281,812 $49,675 $1,797,135 119 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2021 411 Tax 417 Tax 418 Tax 419 Tax Increment Increment Increment Increment Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Assets Cash and investments $395,352 $1,590 $ - $285,848 Accounts receivable - net - - - - Advances to other funds - - - - Taxes receivable: Due from county - - 9,210 151 Special assessments receivable: Due from county - - - - Delinquent - - - - Deferred - - - - Interfund loan receivable - - - - Total assets $395,352 $1,590 $9,210 $285,999 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $123 $123 $102,095 Advances from other funds - - 422,092 - Contracts payable - - - - Unearned revenue - - - - Total liabilities 0 123 422,215 102,095 Deferred inflows of resources: Unavailable revenue - - - - Fund balance: Restricted 395,352 1,467 - 183,904 Assigned - - - - Unassigned - - (413,005) - Total fund balance 395,352 1,467 (413,005) 183,904 Total liabilities, deferred inflows of resources, and fund balance $395,352 $1,590 $9,210 $285,999 120 Statement 24 Page 2 of 2 Total 422 Surface 424 Surface 425 484 Nonmajor Water 423 Street Water Park and Trail Comp Plan Capital Management Reconstruction Maintenance Improvements Update Project Funds $1,801,144 $567,829 $236,988 $204,942 $25,834 $6,578,603 - - - - - 4,680 - - - - - 457,303 - - - - - 9,361 245 - - - - 245 1,387 - - - - 1,387 982,014 42,061 - - - 1,024,075 - - - - - 1,910,972 $2,784,790 $609,890 $236,988 $204,942 $25,834 $9,986,626 $24,870 $ - $3,682 $10,156 $7,645 $201,757 - - - - - 422,092 25,684 - - - - 25,684 - - - - - 11,908 50,554 0 3,682 10,156 7,645 661,441 983,401 42,061 - - - 1,025,462 - - - - - 2,359,694 1,750,835 567,829 233,306 194,786 18,189 6,353,034 - - - - - (413,005) 1,750,835 567,829 233,306 194,786 18,189 8,299,723 $2,784,790 $609,890 $236,988 $204,942 $25,834 $9,986,626 121 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, 2021 402 Capital 403 Office 405 301 Closed 401 Building Equipment Equipment Dedicated Bond Fund and Facilities Revolving Revolving Parks Revenues: Tax increment $ - $ - $ - $ - $ - Special assessments 14,334 - - - - Charges for services - 209,343 - - 477,470 Investment earnings (5,921) (1,471) (2,348) (346) (7,586) Miscellaneous - - 2,371 - 681 Total revenues 8,413 207,872 23 (346) 470,565 Expenditures: Current: General government 3,890 141,783 - 35,943 - Public services - - - - - Community development - - - - - Capital outlay: Public safety - - 205,432 - - Public services - - 263,850 - 18,630 Total expenditures 3,890 141,783 469,282 35,943 18,630 Revenues over (under) expenditures 4,523 66,089 (469,259) (36,289) 451,935 Other financing sources (uses): Transfers in - - - 25,000 - Transfers out - - - - - Proceeds from sale of capital assets - - 140,120 - - Total other financing sources (uses) 0 0 140,120 25,000 0 Net change in fund balance 4,523 66,089 (329,139) (11,289) 451,935 Fund balance - January 1 684,462 2,533,927 580,656 58,860 1,327,036 Fund balance - December 31 $688,985 $2,600,016 $251,517 $47,571 $1,778,971 122 Statement 25 Page 1 of 2 411 Tax 417 Tax 418 Tax 419 Tax 422 Surface Increment Increment Increment Increment Water 423 Street Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Management Reconstruction $51,352 $170,258 $395,575 $256,125 $ - $ - - - - - 151,974 12,476 - - - - 777,241 - - - - - (8,797) (3,027) - - - - 194,104 - 51,352 170,258 395,575 256,125 1,114,522 9,449 - - - - - - - - - - 83,729 - 61,626 1,555 3,891 205,745 - - - - - - - - - - - - 1,085,925 - 61,626 1,555 3,891 205,745 1,169,654 0 (10,274) 168,703 391,684 50,380 (55,132) 9,449 - - - - - - - (369,065) - - - - - - - - 258,235 - 0 (369,065) 0 0 258,235 0 (10,274) (200,362) 391,684 50,380 203,103 9,449 405,626 201,829 (804,689) 133,524 1,547,732 558,380 $395,352 $1,467 ($413,005) $183,904 $1,750,835 $567,829 123 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, 2021 Total 424 Surface 425 484 2040 Nonmajor Water Park and Trail Comp Plan Capital Maintenance Improvements Update Project Funds Revenues: Tax increment $ - $ - $ - $873,310 Special assessments - - - 178,784 Charges for services - - - 1,464,054 Investment earnings (1,472) (1,252) (116) (32,336) Miscellaneous - 1,978 - 199,134 Total revenues (1,472) 726 (116) 2,682,946 Expenditures: Current: General government - - - 181,616 Public services 127,685 50,730 - 262,144 Community development - - 46,043 318,860 Capital outlay: Public safety - - - 205,432 Public services - 84,814 - 1,453,219 Total expenditures 127,685 135,544 46,043 2,421,271 Revenues over (under) expenditures (129,157) (134,818) (46,159) 261,675 Other financing sources (uses): Transfers in 130,000 60,000 25,000 240,000 Transfers out - - - (369,065) Proceeds from sale of capital assets - - - 398,355 Total other financing sources (uses) 130,000 60,000 25,000 269,290 Net change in fund balance 843 (74,818) (21,159) 530,965 Fund balance - January 1 232,463 269,604 39,348 7,768,758 Fund balance - December 31 $233,306 $194,786 $18,189 $8,299,723 124 STATISTICAL SECTION (UNAUDITED) 125 - This page intentionally left blank - 126 This part of the City of Lino Lakes, Minnesota's Annual Comprehensive 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 127 CITY OF LINO LAKES, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Governmental activities: Net investment in capital assets $22,166,342 $22,241,821 $19,540,807 $18,230,746 Restricted 11,595,112 11,000,033 8,666,357 8,635,293 Unrestricted 17,639,038 16,849,636 20,527,704 13,888,120 Total governmental activities net position $51,400,492 $50,091,490 $48,734,868 $40,754,159 Business-type activities: Net investment in capital assets $28,798,095 $28,423,284 $27,556,022 $29,127,829 Unrestricted 12,102,013 12,999,182 13,888,278 14,672,630 Total business-type activities net position $40,900,108 $41,422,466 $41,444,300 $43,800,459 Primary government: Net investment in capital assets $50,964,437 $50,665,105 $47,096,829 $47,358,575 Restricted 11,595,112 11,000,033 8,666,357 8,635,293 Unrestricted 29,741,051 29,848,818 34,415,982 28,560,750 Total primary government net position $92,300,600 $91,513,956 $90,179,168 $84,554,618 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. 128 Table 1 2016 2017 2018 2019 2020 2021 $18,597,344 $22,868,259 $24,640,555 $28,433,053 $31,960,308 $38,987,698 13,342,852 11,730,147 10,579,817 12,390,431 13,446,203 13,889,250 10,187,254 12,017,212 16,577,520 17,640,035 18,686,238 21,975,414 $42,127,450 $46,615,618 $51,797,892 $58,463,519 $64,092,749 $74,852,362 $31,860,610 $31,831,950 $32,709,079 $36,390,820 $43,366,197 $43,566,016 13,863,447 14,846,045 15,570,827 16,237,228 16,054,144 16,425,602 $45,724,057 $46,677,995 $48,279,906 $52,628,048 $59,420,341 $59,991,618 $50,457,954 $54,700,209 $57,349,634 $64,823,873 $75,326,505 $82,553,714 13,342,852 11,730,147 10,579,817 12,390,431 13,446,203 13,889,250 24,050,701 26,863,257 32,148,347 33,877,263 34,740,382 38,401,016 $87,851,507 $93,293,613 $100,077,798 $111,091,567 $123,513,090 $134,843,980 129 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Expenses Governmental activities: General government $1,883,961 $1,566,388 $2,036,550 $2,016,351 Public safety 4,046,415 3,950,197 4,107,759 5,135,865 Public services 6,795,150 5,376,671 5,880,030 7,971,712 Conservation of natural resources 184,051 141,204 159,649 186,111 Community development 430,121 404,726 407,448 432,268 Interest and fees on long-term debt 837,755 951,842 618,680 632,876 Total governmental activities expenses 14,177,453 12,391,028 13,210,116 16,375,183 Business-type activities: Water 949,121 927,800 965,641 1,394,897 Sewer 1,527,637 1,584,395 1,628,258 2,089,842 Total business-type activities expenses 2,476,758 2,512,195 2,593,899 3,484,739 Total primary government expenses $16,654,211 $14,903,223 $15,804,015 $19,859,922 Program revenues Governmental activities: Charges for services: General government $129,151 $93,118 $103,072 $818,468 Public safety 642,745 697,584 763,470 199,498 Public services 668,128 632,002 621,221 603,866 Conservation of natural resources 19,297 1,347 1,882 - Community development 16,940 28,118 39,395 - Operating grants and contributions 450,179 527,368 840,676 526,107 Capital grants and contributions 5,125,693 941,960 335,733 1,176,732 Total governmental activities program revenues 7,052,133 2,921,497 2,705,449 3,324,671 Business-type activities: Charges for services: Water 1,371,809 1,208,742 965,425 1,014,836 Sewer 1,505,781 1,516,397 1,564,099 1,621,633 Operating grants and contributions - - 263,024 263,024 Capital grants and contributions 20,018 883 1,035 3,035,031 Total business-type activities 2,897,608 2,726,022 2,793,583 5,934,524 Total primary government program revenues $9,949,741 $5,647,519 $5,499,032 $9,259,195 130 Table 2 Page 1 of 2 2016 2017 2018 2019 2020 2021 $2,456,864 $2,395,633 $2,345,386 $2,466,130 $4,197,819 $2,828,407 6,567,523 5,166,538 4,749,394 5,053,511 4,867,134 4,706,881 6,228,893 5,492,395 5,384,522 5,810,919 4,118,477 6,260,599 216,905 200,016 201,590 183,982 161,556 178,581 454,144 459,455 576,794 686,421 660,660 791,930 831,529 518,897 414,607 498,587 733,207 654,287 16,755,858 14,232,934 13,672,293 14,699,550 14,738,853 15,420,685 1,367,693 1,245,249 1,332,755 1,322,811 1,532,282 1,621,486 1,850,962 1,901,821 1,964,471 2,002,711 2,199,865 2,186,992 3,218,655 3,147,070 3,297,226 3,325,522 3,732,147 3,808,478 $19,974,513 $17,380,004 $16,969,519 $18,025,072 $18,471,000 $19,229,163 $520,231 $550,117 $562,816 $612,237 $587,888 $892,386 1,359,426 2,249,152 1,591,658 1,255,363 1,235,829 1,688,606 865,327 801,633 448,009 1,273,900 1,106,248 2,528,275 - - - - - - - - - - - - 722,858 1,106,014 861,429 870,532 2,470,024 1,019,752 5,046,307 4,141,383 5,187,023 6,820,419 6,894,207 7,931,093 8,514,149 8,848,299 8,650,935 10,832,451 12,294,196 14,060,112 1,094,897 1,150,834 1,217,589 1,172,580 1,341,559 1,683,290 1,659,322 1,698,963 1,753,712 1,771,143 1,803,231 1,892,040 - - - - 42,152 - 1,543,947 836,029 1,242,032 2,894,794 2,887,266 752,403 4,298,166 3,685,826 4,213,333 5,838,517 6,074,208 4,327,733 $12,812,315 $12,534,125 $12,864,268 $16,670,968 $18,368,404 $18,387,845 131 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2012 2013 2014 2015 Net (expense) revenue: Governmental activities ($7,125,320) ($9,469,531) ($10,504,667) ($13,050,512) Business-type activities 420,850 213,827 199,684 2,449,785 Total primary government, net (6,704,470) (9,255,704) (10,304,983) (10,600,727) General revenues and other changes in net position: Governmental activities: Property taxes 8,610,709 8,563,595 8,806,886 9,243,236 Unrestricted grants and contributions 4,941 4,442 4,443 5,363 Unrestricted investment earnings 202,828 (54,204) 265,695 112,961 Gain on disposal of capital assets 4,175 - 1,727 17,836 Special item - withdrawal from fire district - - - - Transfers 41,043 (353,304)69,294 66,834 Total governmental activities 8,863,696 8,160,529 9,148,045 9,446,230 Business-type activities: Unrestricted investment earnings 102,073 (44,773) 154,468 51,167 Gain on disposal of capital assets - - - - Transfers (41,043) 353,304 (69,294)(66,834) Total business-type activities 61,030 308,531 85,174 (15,667) Total primary government $8,924,726 $8,469,060 $9,233,219 $9,430,563 Change in net position: Governmental activities $1,738,376 ($1,309,002) ($1,356,622) ($3,604,282) Business-type activities 481,880 522,358 284,858 2,434,118 Total primary government change in net position $2,220,256 ($786,644) ($1,071,764) ($1,170,164) 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. 132 Table 2 Page 2 of 2 2016 2017 2018 2019 2020 2021 ($8,241,709) ($5,384,635) ($5,021,358) ($3,867,099) ($2,444,657) ($1,360,573) 1,079,511 538,756 916,107 2,512,995 2,342,061 519,255 (7,162,198) (4,845,879) (4,105,251) (1,354,104) (102,596) (841,318) 9,343,500 9,753,971 10,229,691 10,706,977 11,259,043 12,006,161 91,385 181,712 59,508 38,926 47,188 6,587 210,142 207,792 369,485 1,029,944 684,384 (171,260) 66,255 38,022 17,318 68,472 150,041 387,972 1,333,166 - - - - - (914,414) (308,694) (472,370) (1,311,593) (4,066,269) (109,774) 10,130,034 9,872,803 10,203,632 10,532,726 8,074,387 12,119,686 107,119 106,488 213,434 523,554 383,963 (86,764) - - - - - 29,012 914,414 308,694 472,370 1,311,593 4,066,269 109,774 1,021,533 415,182 685,804 1,835,147 4,450,232 52,022 $11,151,567 $10,287,985 $10,889,436 $12,367,873 $12,524,619 $12,171,708 $1,888,325 $4,488,168 $5,182,274 $6,665,627 $5,629,730 $10,759,113 2,101,044 953,938 1,601,911 4,348,142 6,792,293 571,277 $3,989,369 $5,442,106 $6,784,185 $11,013,769 $12,422,023 $11,330,390 133 CITY OF LINO LAKES, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2012 2013 2014 2015 General Fund: Nonspendable $180,786 $176,797 $253,471 $220,677 Committed - - - - Unassigned 5,053,031 5,209,286 5,053,064 5,725,736 Total general fund $5,233,817 $5,386,083 $5,306,535 $5,946,413 All other governmental funds: Nonspendable 823,113 101,710 101,302 101,177 Restricted 3,041,524 3,651,550 2,830,526 2,637,638 Committed 115,196 121,075 152,078 163,239 Assigned 15,573,179 15,710,702 18,027,773 15,022,852 Unassigned (3,262,728) (3,393,547) (375,851) (3,815,304) Total all other governmental funds $16,290,284 $16,191,490 $20,735,828 $14,109,602 Total all funds $21,524,101 $21,577,573 $26,042,363 $20,056,015 134 Table 3 2016 2017 2018 2019 2020 2021 $225,114 $243,317 $286,186 $296,907 $315,224 $356,619 - - - 443,900 425,000 71,370 6,031,077 6,573,608 6,599,956 6,052,388 6,787,498 7,719,761 $6,256,191 $6,816,925 $6,886,142 $6,793,195 $7,527,722 $8,147,750 101,220 101,659 101,998 102,842 102,076 208,573 6,502,424 5,289,641 9,824,255 6,650,462 8,206,540 8,437,406 170,950 175,401 182,613 175,485 470,047 531,131 15,778,480 14,581,669 19,195,652 19,672,706 18,943,415 19,533,784 (978,496) (2,909,173) (2,935,459) (3,171,161) (3,129,676) (2,931,318) $21,574,578 $17,239,197 $26,369,059 $23,430,334 $24,592,402 $25,779,576 $27,830,769 $24,056,122 $33,255,201 $30,223,529 $32,120,124 $33,927,326 135 CITY OF LINO LAKES, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years 2012 2013 2014 2015 Revenues: Property taxes $8,560,340 $8,475,214 $8,612,011 $8,950,507 Licenses and permits 319,172 431,654 407,681 551,202 Intergovernmental 5,267,570 500,963 823,025 679,627 Special assessments 816,998 2,130,519 1,278,202 703,141 Charges for services 744,633 717,300 731,640 696,501 Fines and forfeits 155,956 119,079 149,653 127,803 Investment earnings 202,825 (53,466) 265,794 112,915 Miscellaneous 414,088 384,749 767,477 766,072 Total revenues 16,481,582 12,706,012 13,035,483 12,587,768 Expenditures: Current: General government 1,619,215 1,569,722 1,692,175 1,643,966 Public safety 3,861,265 3,744,957 3,845,732 11,895,482 Public services 4,396,406 3,956,766 4,156,497 4,779,696 Conservation of natural resources 176,318 134,127 149,292 191,038 Community development 435,154 418,533 402,750 422,935 Capital outlay 616,931 291,135 674,488 1,566,057 Debt service: Principal 2,145,000 2,214,000 3,664,000 2,802,511 Interest and fiscal charges 831,875 774,172 696,780 542,166 Bond issuance costs 47,054 17,137 - 62,831 Total expenditures 14,129,218 13,120,549 15,281,714 23,906,682 Excess (deficiency) of revenues over expenditures 2,352,364 (414,537) (2,246,231) (11,318,914) Other financing sources (uses): Proceeds from sale of capital assets 4,175 16,727 1,727 54,522 Insurace recovery - - - - Issuance of debt 2,165,000 808,000 3,140,000 8,606,250 Premium on bonds issued - 6,558 - 114,960 Payment to refunded bond escrow agent - (435,000) - - Transfers in 1,979,457 1,722,541 2,608,534 3,392,971 Transfers out (1,910,435) (1,650,817) (2,539,240)(3,336,137) Total other financing sources (uses)2,238,197 468,009 3,211,021 8,832,566 Special item - withdrawal from fire district - - - - Net change in fund balance $4,590,561 $53,472 $964,790 ($2,486,348) Debt service as a percentage of noncapital expenditures 22.0%23.3%29.9%15.0% Debt service as a percentage of total expenditures 21.1%22.8%28.5%14.0% 136 Table 4 2016 2017 2018 2019 2020 2021 $9,369,090 $9,772,741 $10,215,761 $10,685,592 $11,232,374 $12,063,089 895,581 1,447,571 1,260,046 941,569 972,450 1,400,755 706,944 1,080,953 3,453,300 688,389 2,597,744 1,170,678 4,400,635 2,283,974 2,005,970 1,935,178 987,053 1,597,697 1,293,556 1,327,781 1,003,896 1,862,803 1,609,627 3,102,712 251,653 613,593 137,940 131,936 160,279 113,359 210,142 207,792 369,485 1,029,944 684,384 (171,260) 417,448 410,640 323,379 265,130 246,599 508,253 17,545,049 17,145,045 18,769,777 17,540,541 18,490,510 19,785,283 1,845,667 1,952,669 1,948,909 2,007,741 3,412,600 2,257,879 4,333,080 4,360,517 4,575,957 4,720,122 4,744,173 5,027,661 3,203,837 3,414,412 3,148,058 3,538,624 3,083,366 2,929,603 201,635 183,392 199,026 207,919 160,884 182,247 425,402 433,144 572,910 680,419 665,405 822,007 3,044,615 2,152,848 3,469,208 7,444,939 6,387,441 5,499,595 2,769,525 8,058,525 3,130,600 2,815,075 2,855,000 3,149,000 816,362 640,029 437,659 562,471 629,282 699,782 98,906 - - - - 49,097 16,739,029 21,195,536 17,482,327 21,977,310 21,938,151 20,616,871 806,020 (4,050,491)1,287,450 (4,436,769) (3,447,641)(831,588) 72,182 103,328 49,391 77,986 240,842 398,355 - - - 711,854 - - 5,464,000 311,000 7,218,900 388,535 4,624,235 1,815,000 41,497 - 401,193 - 435,623 102,502 - - - - - - 3,521,180 6,984,443 4,266,440 2,777,663 4,122,789 3,240,042 (3,241,959) (7,122,927) (4,024,295) (2,550,941) (4,079,253) (2,917,109) 5,856,900 275,844 7,911,629 1,405,097 5,344,236 2,638,790 1,111,834 - - - - - $7,774,754 ($3,774,647) $9,199,079 ($3,031,672) $1,896,595 $1,807,202 26.2%45.4%25.5%23.2%22.4%24.0% 21.4%41.0%20.4%15.4%15.9%18.7% 137 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 2012 $14,743,557 $2,945,026 $310,870 $17,999,453 42.894 $1,640,455,854 2013 13,693,905 2,571,769 336,047 16,601,721 46.774 1,519,857,242 2014 13,646,798 2,450,473 341,974 16,439,245 46.683 1,509,921,169 2015 15,455,516 2,536,783 347,316 18,339,615 43.770 1,694,366,064 2016 15,472,329 2,609,482 359,006 18,440,817 46.019 1,699,288,883 2017 16,480,328 2,767,099 396,378 19,643,805 45.140 1,808,417,118 2018 17,879,879 2,966,548 442,867 21,289,294 42.826 1,959,826,108 2019 18,920,892 3,294,449 471,895 22,687,236 41.817 2,082,803,803 2020 20,781,383 3,686,997 419,457 24,887,837 39.870 2,294,753,477 2021 22,250,844 3,710,390 530,211 26,491,445 40.109 2,435,156,410 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 138 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 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 2021 33.235 6.874 40.109 31.572 31.567 4.420 67.559 107.668 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 139 - This page intentionally left blank - 140 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 1.51% $ - - Biynah MN WI LLC 349,912 2 1.32% - - US Home Corporation 243,725 3 0.92% - - Target Corporation 239,248 4 0.90% 235,854 1 1.31% Northern States Power Co 231,476 5 0.87% - - Minnegasco Inc 176,296 6 0.67% - - Lino Lakes Assisted Living LLC 167,796 7 0.63% - - LLAH Limited Partnership 144,733 8 0.55% - - Gargaro Properties LLC 123,474 9 0.47% 95,776 7 0.53% Tomas Commercial Real Estate Holdings LLC 104,240 10 0.39% - - Lino Lakes Realty LLC - - 228,202 2 1.27% Xcel Energy - - 157,305 3 0.87% Moline Concrete Products - - 133,691 4 0.74% Kohl's Department Store - - 117,218 5 0.65% Taylor Corporation - - 108,982 6 0.61% EOC Lino Lakes LLC - - 88,448 8 0.49% Marmon/Keystone Corp - - 64,082 9 0.36% Royal Oaks Realty Inc - - 60,974 10 0.34% Total $2,179,654 8.23% $1,290,532 7.17% Source: Anoka County 2021 2012 141 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 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% 2021 9,232,367 1,909,448 11,141,815 11,055,781 99.2% Current year levies and collections include State levy related credits, but do not include tax increment levies and collections. 142 Table 8 Total Collections to Date Collections in Percentage Outstanding Percentage Subsequent of Delinquent of Levy Years Amount Levy Taxes Outstanding $79,992 $8,174,133 99.4%$53,126 0.6% 70,620 8,165,263 99.4%50,365 0.6% 45,415 8,272,351 99.7%23,693 0.3% 27,660 8,657,695 99.7%28,377 0.3% 11,132 9,032,985 99.7%25,443 0.3% 17,747 9,455,662 99.6%36,193 0.4% 38,076 9,762,703 99.9%14,029 0.1% 52,825 10,027,085 99.7%28,331 0.3% 75,671 10,415,622 99.3%75,896 0.7% - 11,055,781 99.2%86,034 0.8% 143 CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities General Special Other Fiscal Obligation Assessments Bonds Long-Term Year Bonds Payable Debt 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 2021 21,882,232 845,000 103,950 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 and 2021 from the Bureau of Economic Analysis Report 144 Table 9 Total Percentage Percentage Primary of Assessed of Personal Per Government Market Value Income Capita $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%1,111 21,977,314 1.03%0.12%999 24,132,152 1.05%(1)1,128 22,831,182 0.94%(1)1,031 145 CITY OF LINO LAKES, MINNESOTA RATIOS OF NET GENERAL BONDED DEBT Last Ten Fiscal Years General Special Total Fiscal Obligation Assessments Bonds Primary Year Bonds Payable Government 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 2021 21,882,232 845,000 22,727,232 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 146 Table 10 Less: Amounts Percentage Per Available in Debt Net of Assessed Per Capita (Total)Service Funds Bonded Debt Market Value Capita (Net) $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%900 991 4,772,799 17,034,565 0.80%774 1,121 5,399,895 18,595,307 0.81%869 1,026 5,241,849 17,485,383 0.72%789 147 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11 As of December 31, 2021 Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable*Debt Overlapping debt: Anoka County $52,995,000 6.1%$3,232,695 ISD 12 81,420,049 43.1%35,092,041 ISD 624 299,000,000 3.1%9,269,000 ISD 831 156,965,000 7.1%11,144,515 Metropolitan Council 8,825,000 0.6%52,950 Anoka County Railroad Authority 187,200,000 0.8% 1,497,600 Total overlapping 60,288,801 City of Lino Lakes direct debt 22,831,182 100% 22,831,182 Total direct and overlapping debt $83,119,983 *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. 148 CITY OF LINO LAKES, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 12 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2021 Market value $2,540,177,800 Applicable percentage 3% Debt limit 76,205,334 Debt applicable to limit: Total bonded debt 22,831,182 Less: Special assessment bonds (845,000) Tax abatement bonds (595,000) Tax increment bonds (790,000) Utility revenue bonds (6,700,000) 13,901,182 Legal debt margin $62,304,152 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 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 2021 22,154 76,205,334 13,901,182 62,304,152 18.24% 627 Legal Debt Margin Calculation for Fiscal Years 2012 Through 2021 149 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 2012 20,625 $14,228,981 $42,333 6,444 5.6% 2013 20,833 14,496,708 42,748 6,399 4.5% 2014 21,129 15,396,593 45,029 6,361 3.4% 2015 20,519 16,139,868 46,885 6,394 3.3% 2016 20,803 16,599,918 47,864 6,388 3.9% 2017 21,117 17,383,717 49,583 6,499 3.1% 2018 22,000 18,152,170 51,277 6,560 3.9% 2019 21,995 18,850,155 52,722 6,576 3.2% 2020 21,399 20,045,489 55,694 6,654 4.8% 2021 22,154 Not available Not available Not available 2.5% Sources: (1) Estimates from Metropolitan Council, except for 2020 which is per the U.S. Census and 2021 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. 150 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 447 1 24.8% 460 1 25.0% ISD 12 - Centennial Schools 391 2 21.7% 362 2 19.7% Target Corporation 200 3 11.1% 150 4 8.1% Molin Concrete Products 130 4 7.2% 120 7 6.5% Rehbein Transit, Inc.130 5 7.2% 120 6 6.5% Anoka County Juvenile Center 130 6 7.2% 100 10 5.4% Kohls 123 7 6.8% 120 8 6.5% Distribution Alternatives 120 8 6.7% - - - City of Lino Lakes 70 9 3.9% - - - Northern Wholesale 61 10 3.4% - - - Curtis 1000 (AdGraphics/Taylor Corp) - - - 160 3 8.7% YMCA - - - 130 5 7.1% Nol-Tech Systems, Inc. - - - 120 9 6.5% Total 1,802 1,842 (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 2021 2012 151 CITY OF LINO LAKES, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years 2012 2013 2014 2015 General Government: Administration 3.50 3.50 3.50 3.50 Finance 3.00 3.00 3.00 3.00 Economic Development 1.00 - - - Planning 1.00 1.00 1.00 1.00 Community Development 2.00 2.00 2.00 2.00 Other 0.70 0.70 0.70 0.70 Total General Government 11.20 10.20 10.20 10.20 Public Safety: Sworn Officers 25.00 25.00 25.00 26.00 Civilians 3.00 3.00 4.00 4.00 Fire - - 1.00 1.00 Building Inspection 2.50 2.50 2.00 2.00 Total Public Safety 30.50 30.50 32.00 33.00 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 8.70 8.70 8.70 Water 2.15 2.30 2.30 2.30 Sewer 2.15 2.30 2.30 2.30 Total 63.00 62.00 63.50 64.50 Source: City Finance Office Full-Time-Equivalent Employees as of December 31, 152 Table 15 2016 2017 2018 2019 2020 2021 4.00 4.00 4.00 4.00 4.00 5.00 3.50 3.50 3.50 3.50 3.10 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 0.65 0.65 0.65 0.65 0.63 0.63 11.15 11.15 11.15 11.15 10.73 11.73 27.00 27.00 27.00 27.00 27.00 28.00 4.50 4.50 4.00 4.00 4.00 5.00 1.50 1.50 1.50 1.50 1.50 1.50 2.50 2.50 2.50 3.50 3.50 3.50 35.50 35.50 35.00 36.00 36.00 38.00 6.50 6.65 6.65 6.65 6.50 6.25 1.50 1.50 1.50 1.50 1.50 2.20 8.00 8.15 8.15 8.15 8.00 8.45 7.75 7.90 6.90 6.90 5.78 5.33 2.30 2.70 3.20 3.20 3.25 3.25 2.30 2.70 3.20 3.20 3.25 3.25 67.00 68.10 67.60 68.60 67.00 70.00 Full-Time-Equivalent Employees as of December 31, 153 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2012 2013 2014 2015 General Government: Elections 2 1 2 1 Registered voters 13,478 12,020 12,610 12,143 Number of votes cast 11,546 1,575 7,854 4,085 Voter participation (registered) 85.7% 13.1% 62.3% 33.6% Public Safety: Police: Calls for Service 6,344 6,210 6,281 6,210 Traffic Citations & Warnings 2,694 2,597 2,296 2,199 Part I Crime Rate 983 918 631 1,226 Part II Crime Rate 2,396 2,144 1,836 2,395 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 459 490 431 654 Value of Building Permits $10,751,626 $17,683,665 $13,535,514 $26,570,593 Other Permits (4) Public Works: General Maintenance (hours) 6,939 3,994 5,200 7,839 Street Mantenance (hours) 5,926 5,740 3,840 3,347 Fleet Maintenance (hours) 3,945 4,548 4,746 4,322 Snow Plowing/Sanding (hours) 594 1,639 2,141 754 Culture and Recreation: Parks Park Maintenance (hours) 9,739 8,480 8,537 8,332 Utilities: Water Maintenance (hours) 3,585 3,119 3,189 3,240 Sanitary Sewer Maintenance (hours) 3,517 3,109 3,178 3,240 (1) Increase in permits issued due to June 2017 storm damage. (2) The Public Safety Department modified the metrics maintained for business purposes in 2016. (3) Transition to FBI Uniform Crime Reporting NIBRS (National Incident Based Reporting System) in 2019. January -July 2019 SRS, August-Dec 2019 NIBRS. (4) Other Permits (plumbing, mechanical, etc.) data included in 2020 and presented retroactively back to 2016. Source: Various City Departments 154 Table 16 2016 2017 2018 2019 2020 2021 212141 13,636 12,624 12,860 13,312 14,964 14,441 11,562 2,165 10,738 3,075 13,505 1,873 84.8% 17.1% 83.5% 23.1% 90.2% 13.0% 6,210 (2) (2) (2) (2) (2) 2,199 (2) (2) (2) (2) (2) 1,091 (2) (2) (2) (2) (2) 3,635 (2) (2) (2) (2) (2) 16,321 18,199 14,487 13,973 13,214 12,138 5:26 minutes 4:42 minutes 5:16 minutes 5:53 minutes 6:41 minutes 6:46 minutes 224 176 195 93 (3) (3) (3) 746 808 587 304 (3) (3) (3) 266 (3) 778 729 98 (3) 217 182 73% 82% 69% 60% 48% 56% 269 316 356 379 371 399 $694,000 $325,100 $205,200 $246,600 $241,450 $148,683 $10,511,300 $6,342,100 $1,791,500 $7,548,100 $13,682,450 $1,251,340 53 117 107 98 60 116 761 5422 (1) 3,281 1,107 882 969 $53,390,619 $50,984,047 $50,990,945 $41,766,531 $51,686,278 $90,354,190 880 985 1,023 1,183 1,254 1,451 5,534 6,313 420 7,420 5,407 6,851 4,053 3,765 12,418 4,328 4,317 4,622 4,437 3,986 2,648 3,504 3,390 3,483 960 928 2,117 2,130 1,232 1,204 9,698 8,576 9,027 9,610 8,113 8,818 3,539 3,278 4,080 3,944 3,645 4,196 3,539 3,278 4,080 3,944 3,645 4,196 155 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17 Last Ten Fiscal Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 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 2 2 2 2 2 2 2 Fire Trucks 5 5 5 7 7 8 8 8 8 8 Public Works: Lights 673 673 673 673 815 838 854 859 859 859 Vehicles 29 29 29 29 39 39 39 39 39 39 City Streets (miles)100.7 100.7 100.7 100.7 100.7 100.7 106.9 108.2 104.6 (1) 106.3 Culture & Recreation: Parks: Parks 18 18 18 18 17 18 19 19 19 19 Park Acres 141 141 141 141 139.6 147 152 152 152 152 Asphalt Trails (miles)26 26 26 26 29.75 30 30 30 28 (2) 29 Concrete Trails (miles)- - - - - - - - 7 (2) 8 Boardwalk (miles)- - - - - - - - 0 (2) - Park Shelters 6 6 6 6 6 6 7 7 7 7 Basketball Courts 6 6 6 6 6 6 7 7 7 7 Fishing Pier 1 1 1 1 1 - - - - - Skating Rinks 4 4 4 4 4 3 3 3 3 3 Soccer Fields 8 8 8 8 6 4 4 4 4 4 Baseball/Softball Fields 20 20 20 20 8 8 8 8 8 8 Tennis Courts 2 2 2 2 2 - - 1 1 1 Playgrounds 16 16 16 16 15 16 17 17 17 17 Water: Distribution System (miles)74.7 74.7 74.7 74.7 85.6 99.4 89.0 89.5 91.8 94.2 Water Connections 4,452 4,484 4,520 4,542 4,649 4,738 4,919 4,990 5,175 5,324 Gallons Pumped (millions)609 536 536 449 452 494 508 493 547 630 Number of Fire Hydrants 538 538 538 1,024 1,024 1,028 942 937 1,013 1,046 Water Tower Capacity (millions gallons) 2 2 2 2 2 2 2 2 2 4 Sanitary Sewer: Collection System (miles)69.8 69.8 69.8 77.9 77.9 87.0 79.5 80.1 80.1 82.8 Sewer Connections 4,567 4,624 4,685 4,685 4,817 4,976 5,102 5,276 5,439 5,650 Storm Sewer: Pipe (miles)41.4 41.4 41.4 41.4 53.7 54.1 55.0 55.6 49.86 (1) 53.5 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. 156 55 5th Street East, Suite 1400, St. Paul, MN, 55101 www.redpathcpas.com 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, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, as well as certain information related to the planned scope and timing or our audit. We have communicated such information in our letter to you dated April 18, 2022. 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 2021. 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 are estimates used to calculate the net pension liability, the pension related deferred outflows and inflows of resources, and pension expense, and management’s estimate relating to the collectability of Legacy at Woods Edge receivables (see page 3). The pension related estimates are based on actuarial studies and the collectability of receivables is based on anticipated development and tax increment collections. We evaluated the key factors and assumptions used to develop the 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 and Note 10A – Deficit Fund Balances. 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. One material misstatement was identified during the audit. Prior to correction, police holiday pay in the amount of $117,527 was understated due to being recorded in 2022 rather than 2021. There were no uncorrected 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 June 2, 2022. 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 City of Lino Lakes, Minnesota Communication With Those Charged With Governance Page 3 that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 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, 2021, the balance of receivables related to the Legacy at Woods Edge Development was $5,464,461. The receivables are presented in the financial statements as special assessments receivable ($2,994,379) and interfund loans receivable ($2,470,082). 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 supplements 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. City of Lino Lakes, Minnesota Communication With Those Charged With Governance Page 4 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 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. 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 June 2, 2022 55 5th Street East, Suite 1400, St. Paul, MN, 55101 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, 2021, 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 June 2, 2022. Report on 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 and therefore, material weaknesses or significant deficiencies may exist that were not identified. We identified a deficiency in internal control, described in the 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 Page 2 accompanying schedule of findings and responses as item 2021-1, that we consider to be a material weakness. Report on 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. City of Lino Lakes Minnesota’s Response to the Finding Government Auditing Standards requires the auditor to perform limited procedures on the City of Lino Lakes, Minnesota’s response to the finding identified in our audit and described in the accompanying schedule of findings and responses. The City of Lino Lakes, Minnesota’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 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 June 2, 2022 City of Lino Lakes, Minnesota Schedule of Findings and Responses For The Year Ended December 31, 2021 2021-1 Financial Statement Corrections Criteria: The City’s internal controls should allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. Condition: Audit procedures detected a material misstatement related to police holiday pay in the amount of $117,527. The holiday pay represents amounts earned in 2021. The payment was appropriately made during January 2022, however, the expense was not accrued back to 2021 prior to correction. Cause: The item was not identified during the year-end close process. Effect: Inadequate controls over the year-end closing process results in an increased risk that financial statement misstatements may occur and not be detected on a timely basis. Recommendation: We recommend staff review its year-end procedures in an attempt to identify and correct any misstatements. Views of Responsible Officials and Corrective Action Plan: We agree with this finding. Staff have implemented procedures to ensure all accruals are appropriately identified and reported going forward. 55 5th Street East, Suite 1400, St. Paul, MN, 55101 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, 2021, 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 June 2, 2022. 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 of Lino Lakes, Minnesota’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 June 2, 2022 City of Lino Lakes, Minnesota 2021 Audit June 6, 2022 Andy Hering, CPA Phone: 651-407-5877 Email: ahering@redpathcpas.com 1 Reports Issued by Auditor Opinion on the Financial Statements Report on Internal Controls over Financial Reporting Report on Minnesota Legal Compliance Communication with Those Charged with Governance A report on compliance over federal expenditures (a single audit) was not required for 2021. 2 Results Opinion on the Fair Presentation of the Financial Statements Unmodified audit opinion Report on Internal Controls over Financial Reporting 1 finding Minnesota Legal Compliance Report No findings Communication With Those Charged with Governance Standard communications from auditor to governing body 3 Opinion on Financial Statements –Audit Process December 2021 and January 2022 Planning and preliminary testing January –March 2022 City staff accumulate data, record year-end accruals, prepare audit workpapers, and close the books on 2021 April 2022 Auditor receives trial balance and workpapers; audit planning is finalized Audit fieldwork began April 25 May 2022 Financial statements are drafted by the auditor, reviewed by finance staff. Transmittal letter and MD&A are prepared. Final audit reports dated June 2 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 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? 1 internal control finding Financial Statement Corrections 6 Report on Minnesota Legal Compliance What did we do? •Followed an 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. 7 Communication to Those Charged with Governance No new accounting policies or standards for 2021 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 ($5,464,000) 8 General Fund Summary 9 Favorable Final (Unfavorable) Budget Actual Variance Revenues $11,957,000 $11,911,000 ($46,000) Expenditures 10,521,000 10,340,000 181,000 Revenues over expenditures 1,436,000 1,571,000 135,000 Other financing sources (uses): Transfers - net (951,000)(951,000) - Net change in fund balance $485,000 $620,000 $135,000 General Fund 5 Year History 10 Fund Balance Interfund Ending as a Percent of Transfers Increase Fund Expenditures & Revenues Expenditures (Net)(Decrease)Balance Transfers Out 2021 $11,911,000 $10,340,000 ($951,000)$620,000 $8,148,000 72% 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% General Fund Monthly Cash Balances 11 1/1/2021 1/31/2021 2/28/2021 3/31/2021 4/30/2021 5/31/2021 6/30/2021 7/31/2021 8/31/2021 9/30/2021 10/31/2021 11/30/2021 12/31/2021 Cash $7,491,000 $5,989,000 $5,559,000 $5,086,000 $4,502,000 $3,943,000 $3,483,000 $7,840,000 $6,982,000 $6,082,000 $5,391,000 $4,507,000 $7,996,000 $0 $400,000 $800,000 $1,200,000 $1,600,000 $2,000,000 $2,400,000 $2,800,000 $3,200,000 $3,600,000 $4,000,000 $4,400,000 $4,800,000 $5,200,000 $5,600,000 $6,000,000 $6,400,000 $6,800,000 $7,200,000 $7,600,000 $8,000,000 General Fund Yearly Cash Balances $4,008,000 Enterprise Funds –Cash Flow 12 2021 2020 2021 2020 Water Water Sewer Sewer Fund Fund Fund Fund Cash flows from: Operating activities $686,000 $479,000 $282,000 $71,000 Investment income (34,000)150,000 (53,000)234,000 Transfers (323,000)(127,000) - 84,000 Acquisition of capital assets (93,000)(778,000)(99,000)(330,000) Increase in cash 236,000 (276,000)130,000 59,000 Cash - January 1 5,896,000 6,172,000 9,609,000 9,550,000 Cash - December 31 $6,132,000 $5,896,000 $9,739,000 $9,609,000 WS – Item 2 WORK SESSION STAFF REPORT Work Session Item No. 2 Date: June 6, 2022 To: City Council From: Katie Larsen Re: Otter Crossing 2nd Addition Preliminary Plat and Tidal Wave Auto Spa Conditional Use Permit Background At the Work Session, staff will present the June 13, 2022 Council staff report. Two (2) separate Land Use Applications were submitted. The first applicant, Tyme Properties, LLC, submitted Otter Crossing 2nd Addition preliminary plat to create two (2) commercial lots. The second applicant, Bowman, submitted a conditional use permit and site plan view for Tidal Wave Auto Spa, a commercial car wash, to be located on Lot 1 of the preliminary plat. Requested Council Direction None, discussion only. Attachments 1. June 13, 2022 Council Staff Report 1 CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: June 13, 2022 TOPIC: Otter Crossing 2nd Addition and Tidal Wave Auto Spa i. Consider Resolution No. 22-55 Approving Preliminary Plat ii. Consider Resolution No. 22-56 Approving Conditional Use Permit iii. Consider Resolution No. 22-57 Approving Site Improvement Performance Agreement VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration of a preliminary plat for Otter Crossing 2nd Addition and a conditional use permit and site improvement performance agreement Tidal Wave Auto Spa. Review Deadline: Complete Application Date: April 8, 2022 60-Day Review Deadline: June 7, 2022 120-Day Review Deadline: August 6, 2022 Environmental Board Meeting: May 4, 2022 Park Board Meeting: NA Planning & Zoning Board Meeting: May 11, 2022 Tentative City Council Work Session: June 6, 2022 Tentative City Council Meeting: June 13, 2022 BACKGROUND Two (2) separate Land Use Applications were submitted. The first applicant, Tyme Properties, LLC, submitted Otter Crossing 2nd Addition preliminary plat to create two (2) commercial lots. The second applicant, Bowman, submitted a conditional use permit and site plan view for Tidal Wave Auto Spa, a commercial car wash, to be located on Lot 1 of the preliminary plat. The Land Use Applications are for the following: 2 • Preliminary Plat o Lots 1-2 and Outlot A, Otter Crossing 2nd Addition • Conditional Use Permit and Site Plan Review o Commercial car wash This staff report is based on the following information: • Otter Crossing 2nd Addition Preliminary Plat & Site Plans prepared by Pioneer Engineering dated April 1, 2022 • Storm Water Management Plan prepared by Pioneer Engineering revised June 22, 2021 • Storm Water Pollution Prevention Plan prepared by Pioneer Engineering dated March 5, 2021 • Concept Plan 5 prepared by Pioneer Engineering dated April 6, 2020 • Tidal Wave Auto Spa Site Development Plans prepared by Bowman dated February 1, 2022 • Stormwater Management Report prepared by Bowman dated March 3, 2022 • Architectural Plans prepared by Reztark dated March 14, 2022 • Landscape Plans prepared by Bowman dated (no date provided) • Photometric Plan prepared Reztark dated February 1, 2022 ANALYSIS Existing Site Conditions The 25 acre site is located in the northwest quadrant of Otter Lake Road and CSAH 14 (Main Street). The site is currently vacant commercial land that is being used for agricultural row crops. The soils range from lean clay to poorly graded sand clay. Hydrologic soil groups consist of a combination of B/D, B, C and B/D. Groundwater was encountered at 3 to 12.5 ft below ground surface. Topography is general flat. Wetlands exist on the site. Zoning and Land Use The parcel is zoned GB, General Business and allows for commercial car washes as a conditional use. Current Zoning GB, General Business Current Land Use Vacant Commercial Future Land Use per CP Commercial Utility Staging Area 1A=2008-2015 Surrounding Zoning and Land Use Direction Zoning Existing Land Use Future Land Use North R-BR Agricultural Commercial 3 Rural Business Reserve South GB General Business Vacant Commercial Commercial East GB General Business Commercial Commercial West GB General Business Vacant Commercial Commercial Subdivision Ordinance Conformity with the Comprehensive Plan and Zoning Code The preliminary plat is consistent with the comprehensive plan for commercial development and zoning code requirements for GB, General Business as detailed below. Blocks and Lots The proposed preliminary plat contains Lots 1-2, Block 1 and Outlot A, Otter Crossing 2nd Addition. The outlot is for future development, stormwater management facilities and private street. Both lots meet minimum lot size (20,000 sf) and lot width (100 ft) requirements. Parcel Size Lot Width Purpose Lot 1, Block 1 1.06 acres 178 ft Commercial Car Wash Lot 2, Block 1 1.24 acres 205 ft Future development Outlot A 23.53 acres NA Future development, SW facilities, private street TOTAL 25.83 acres Since there are no underlying preliminary plat and development plans for Outlot A, it will remain one (1) outlot until time of future development. The outlot will then be preliminary and final platted. This will be similar to the development of Main Street Shoppes to the east of Otter Lake Road. The preliminary plat shall show the delineated wetland and acreage. Streets and Alleys A private street from Otter Lake Road currently exists across the north boundary of Lot 1, Block 1, Otter Crossing 1st Addition. The private street will extend along the north boundary of Lot 1 and 2, Otter Crossing 2nd Addition. A new or amendment to the existing Declaration of Driveway Easement shall be recorded over the private street detailing maintenance responsibilities are the developers. The City is not responsible for maintenance of the private street. 4 Public street improvements such as a southbound right turn lane from Otter Lake Road onto CSAH 14 (Main Street) and pedestrian crossing were completed with Otter Crossing 1st Addition. No other public street improvements are required for the 2nd Addition. The private street is proposed at 32ft wide back to back. This is consistent with the existing private street along Lot 1, Otter Crossing 1st Addition. An additional 60 ft of street right-of-way shall be dedicated along Otter Lake Road to the north lot line of Outlot A. A Declaration of Access Control was recorded with Otter Crossing 1st Addition and remains in place. The Declaration states the private street will have full access to Otter Lake Road, but such full access shall be reduced to right-in, right-out access upon further extension of the Otter Lake Road to the north. Tyme Properties shall submit a revised concept plan/ghost plat the accurately depicts the existing and proposed street and lot layouts. Easements Standard drainage and utility easements at least 10 feet wide have been provided on Lot 1 and Lot 2. No additional easements are required. A drainage and utility easement was recorded over the private street and the stormwater pond facilities on Otter Crossing 1st Addition final plat. Previously recorded highway easements and utility easements along CSAH 14 (Main Street) exist on site. Public Land Dedication The City will collect a cash fee of $2,520 per acre per platted lot in lieu of land dedication for commercial development. These fees will be calculated and collected with the final plat application. Site and Building Plan Review This site and building plan review is only related to proposed Lot 1, Block 1, Otter Crossing 2nd Addition and the Tidal Wave Auto Spa. Future development of Lot 2 shall require a separate land use application. Site Plan Per Bowman’s narrative, “the carwash consists of a single lane tunnel within a 3,500 SF building. Tidal Wave will provide entry through the northeast corner of the site, and customers are then able to take advantage of the free car vacuuming services available onsite through the 28 vacuum spaces. The design allows for at least 12 cars of car stacking for vehicles waiting to 5 enter the tunnel. Payment is processed through a pay station along the northern drive aisle, but the site will also have 2-3 employees assisting with operations on site.” The 28 vacuums are covered by a canopy. A vacuum/vending building and trash enclosure are located on the north end of the site. The car wash utilizes a water reclaim system. A 5 ft wide concrete sidewalk is required along the north lot line of both Lot 1 and Lot 2. The preliminary plat-civil plan sets shows the sidewalk. The car wash plan set shall be revised to include the sidewalk. Overall, the proposed site plan meets ordinance and performance standard requirements unless otherwise noted. Lot Size and Setbacks The front lot line is along CSAH 14 (Main Street) because it is the public street right-of-way. The rear lot line is along the private street. GB Requirements Lot 1, Block 1 OC 2nd Add Min. Lot Size 20,000 sf 46,284 sf Min Lot Width 100 ft 178 ft Setbacks-Street Required Proposed Principal Building-CSAH 14 (arterial) 40 ft 46 ft Parking Lot 15 ft 15 ft Setbacks-Side Lot Line (west) Required Proposed Principal Building 10 ft 50 ft Accessory Building 10 ft 95 ft Parking Lot/Driveway 10 ft 10 & 50 ft Setbacks-Side Lot Line (east) Required Proposed Principal Building 10 ft 127 ft Accessory Building 10 ft 34 ft Parking Lot/Driveway 10 ft 10 ft Setbacks-Rear Lot Line (Private Street) Required Proposed 6 Principal Building 30 ft 80 ft Accessory Building (trash enclosure) 5 ft 36 ft Parking Lot/Driveway 10 ft 52 ft Architectural Plans and Exterior Building Materials The car wash is single story with exterior materials consisting of glass windows, EIFS, concrete block veneer, stone veneer and metal overhead doors. The color palette consists of earth tone tan, white, gray, rust and bronze. The metal roofs on the car wash, vacuum building and canopies are regal blue and shall be standing seam. The ordinance allows for stucco or EIFS on no more than 30% of the primary front building elevation and no more than 60% of any side or rear building elevation. The primary front elevation has 20% EIFS and rear elevation has 0% EIFS and the sides have 23% and 29%. The building has a 3ft high split face block veneer base. The materials and percentages are compliant with performance standards. The car wash building height is 19ft which is less than that maximum 45ft allowed. A trash enclosure and vacuum building are proposed on the north side of the lot. Construction details provided on Sheet A405 indicate a 3ft high split face block base and stucco walls on both buildings. These are the same materials and colors as the main car wash building. The trash enclosure gate is a painted metal swing gate that has 100% opacity. The enclosure is 8ft in height. The trash enclosure and vacuum building meet performance standards. Canopies are proposed over both rows of vacuums. A three (3) ft high split face block veneer base matching the building shall be included on the north and south endcap steel structures of both canopies. The mechanical equipment is located inside the car wash building. The building will be sprinkled for fire suppression. Outdoor Lighting Per Section 1007.043(6)(d), no light source shall exceed 1.0 foot candle onto right of way or 0.4 foot candle onto adjacent property. The Photometric Plan shall be revised to clearly show all lot lines and compliance with the ordinance. Light fixtures on the both the building and 17’6” high light poles are down lit and cutoff as required by city code. Off-Street Parking Requirements Per Section 1007.044(6), an auto wash/commercial car wash requires one (1) space per employee. Per the applicant’s narrative, 2-3 employees may be on site. This would require 7 three (3) parking spaces and one (1) ADA parking space. Sheet C5.0 indicates 28 vacuum spaces and two (2) ADA spaces. The plan shall be revised to provide adequate parking spaces. Grading Plan and Stormwater Management The existing NURP pond with infiltration area that was constructed with Otter Crossing 1st Addition to the west of Lot 2 manages the stormwater from development immediately north and south of the private street. Per the Stormwater Management Report prepared by Bowman dated March 3, 2022 and the RCWD CAPROC dated April 13, 2022, the pond was sized to provide water quality and rate control for this development. Public Utilities The new car wash will be municipally served by an 8” sanitary sewer main and an 8” watermain located along the private street that extend from Otter Lake Road. The utilities will extend along Lot 1 and Lot 2. Tree Preservation and Mitigation Standards The Environmental Coordinator and Environment Board reviewed the tree preservation and landscaping requirements. The following comments are from the May 4, 2022 Environmental Board staff report. A tree survey will not be required for this site, because there are no trees over 6 inch DBH to survey. Preservation and mitigation standards are met. Open Areas Landscape Standards Open area landscape standards call for 1 large tree and 3 large shrubs per 2000 sf. There is 6,082 square feet of open space that requires 3 large trees and 9 large shrubs. Provided on site are 7 large trees and 6 large shrubs. Three (3) additional large shrubs are required to meet open space requirements. Buffer and Screen Standards This project requires a 30 inch high planting screen on the north and south perimeters. Buffer and screen standards have been met. Canopy Cover Canopy cover standards require a minimum of 40% canopy coverage. Vehicular hardscape planned: 33,316 sq. ft. Canopy cover requirement: 13,326 sq. ft. Canopy cover provided: 16,200 sq. ft. Canopy cover requirements have been met. 8 Foundation Landscaping Foundation Landscaping standards apply to building fronts and sides facing public or private streets. Two (2) large trees and 6 large shrubs are required per 100 linear feet of building. These plants should be within 30 feet of the building. The applicable building faces for this project include the north, east, and south building faces. Building Face Required: Provided North (approximately 40 ft.) 1 large tree 1 medium tree 3 large shrubs 6 medium shrubs (eq. to 4 large shrubs) East face/Front (approximately 135 ft.) 3 large trees 3 large trees (2 large, 2 medium) 8 large shrubs 9 medium shrubs (eq. to 6 large shrubs) South (approximately 40 ft.) 1 large tree 1 large tree 3 large shrubs 13 medium shrubs (eq. to 8 large shrubs) The foundation landscape requirements have not been met. To meet requirements, switch the Ivory silk Japanese tree lilac to a larger species (large trees have a mature height of at least 40 ft). Alternatively, another medium tree could be added close to the tree lilac near the north building face. Two (2) large shrubs must be added within 30 feet of the east building face. Alternatively, existing shrubs could be swapped to a larger species (with a mature height of at least 6 ft.). Boulevard Trees Boulevard trees are not required for commercial developments. Sod and Ground Cover Standards All areas not otherwise improved in accordance with the approved site plans shall have a minimum depth of 4 inches of topsoil and be sodded including boulevard areas. Disturbed areas of the site not improved with landscaping will be sodded. Signage A separate sign permit application shall be submitted prior to signage installation. 9 Impervious Surface Coverage The allowed impervious surface coverage in the GB, General Business District is 75%. The proposed impervious surface coverage of Lot 1 is 72%. The proposed post-development impervious surface coverage is compliant. Traffic Study A formal traffic study is not required. The updated 2020 I-35E Corridor AUAR analyzed traffic impacts for commercial development along this entire corridor. The proposed commercial car wash is consistent with AUAR Land Use Scenarios #1 and #2 for commercial development. Otter Lake Road and CSAH 14 (Main Street) are A-Minor Reliever and A- Minor Collector roads, respectively, and have structural capacity to handle the commercial traffic. Alternative Urban Areawide Review (AUAR) The site is within the 2005 I-35E Corridor AUAR environmental review boundary. The AUAR was updated in May 2020. The AUAR identifies this site as commercial in the land use scenarios. The Otter Crossing 2nd Addition preliminary plat and Tidal Wave Auto Spa development are consistent with commercial development. No further environmental assessment is required. Wetlands As part of Otter Crossing 1st Addition, a wetland delineation report was completed by Midwest Natural Resources on September 4, 2019. A WCA Notice of Decision was issued by RCWD on December 9, 2019. Two wetlands were delineated. Wetland A was 2.59 acres and Wetland B is 1.19 acres. Impacts to Wetland A have been completed and mitigated via wetland credits. A drainage & utility easement was dedicated on the final plat over the stormwater pond and remainder of Wetland A. The wetlands are not within the Wetland Management Corridor (WMC) so a WMC wetland buffer was not required. No further wetland impacts are proposed with development of Otter Crossing 2nd Addition. Shoreland District The development is not located in the Shoreland District. Floodplain There is no FEMA floodplain on site. Anoka County Highway Department Anoka County Highway Department reviewed the preliminary plat and had no concerns. The applicant shall obtain the required Anoka County Highway Department permits. 10 Public Safety Comments The Fire Division notes a hydrant shall be located in the northwest corner of the property. The Police Division had no issues that needed to be addressed. They did recommend good quality camera systems be installed. Environmental Board The Environmental Board reviewed the development proposal at their May 4, 2022 meeting. One comment that was made was the consideration of diverting the stormwater to the water recycling process used for the car wash. The applicant provided the following narrative: It is not in the City’s best interest to have the stormwater collected at the reclaim tanks and ultimately discharged into the sanitary sewer system. Each wash cycle uses approximately 75% fresh water and 25% reclaim water meaning that 75% of the stormwater that would be collected in the reclaim system would not even be used. It is not common practice for stormwater to be discharged into sanitary sewer systems. Many municipalities in fact avoid this as it can lead to capacity shortages in the treatment plants costing large sums of money to upgrade the plant. The stormwater for this site is proposed to be discharged at the detention pond to the northwest that is intended for and has capacity for this development. Additionally, the car was tunnels are designed to slope away from the building for the safety of customers and employees on snowy days. Staff does not support diverting the stormwater to the water recycling process. Planning and Zoning Board The Planning & Zoning Board held a public hearing on May 11, 2022. There were no public comments. At the Board’s recommendation, clarifying language requiring annual inspections for the water reuse system and signage were added to the conditional use permit. The Board recommended approval with a 6-0 vote with conditions detailed in Resolution No. 22-55 and Resolution No. 22-56. Agreements Stormwater Maintenance Agreement The stormwater facilities on the site will be privately maintained and a Stormwater Maintenance Declaration will be required. Development Agreement and Final Plat The applicant, Tyme Properties, shall submit a Land Use Application for final plat after preliminary plat approval. A Development Agreement will then be prepared by the City as it relates to the final plat and development. 11 Site Improvement Performance Agreement A Site Improvement Performance Agreement will be prepared by the City as it relates to the Tidal Wave Auto Spa commercial car wash. Findings of Fact Council Resolution No. 22-55 details the findings of fact for the Otter Crossing 2nd Addition preliminary plat. Council Resolution No. 22-56 details the findings of fact for the conditional use permit for the Tidal Wave Auto Spa. RECOMMENDATION Staff and Boards recommend approval of the preliminary plat, conditional use permit, and site improvement performance agreement for Otter Crossing 2nd Addition and Tidal Wave Auto Spa. ATTACHMENTS 1. Otter Crossing 2nd Addition Preliminary Plat 2. Tidal Wave Auto Spa Civil Plan Set 3. Tidal Wave Auto Spa Architectural Plan Set 4. Resolution No. 22-55 5. Resolution No. 22-56 6. Resolution No. 22-57 7. Site Improvement Performance Agreement – To Follow PRELIMINARY PLAT 3.1 c 18OFOTTER CROSSING 2ND ADDITION LINO LAKES, MINNESOTA TYME PROPERTIES LLC 3435 LABORE ROAD SUITE 150 4-1-22 PJC MSN Name Reg. No.Date Revisions Date Designed Drawn 2019 Pioneer Engineering, P.A. Mendota Heights, MN 55120 2422 Enterprise Drive (651) 681-1914 Fax: 681-9488www.pioneereng.com LANDSCAPE ARCHITECTSLAND SURVEYORSLAND PLANNERSCIVIL ENGINEERS 4-1-22 VADNAIS HEIGHTS, MINNESOTA 55110 I hereby certify that this plan was prepared by me or under my direct supervision and that I am a duly Licensed Professional Surveyor under the laws of the State of Minnesota 42299 Peter J. Hawkinson 02-SURV-118283-BASE-PREPLAT.DWG SITE PLANC5.0Bowman Consulting Group, Ltd.www.bowman.com© Bowman Consulting Group, Ltd.910 SE 17th StreetSuite 300Fort Lauderdale, FL 33316Phone: (954) 314-8468LINO LAKES, MNANOKA COUNTYTIDAL WAVE AUTO SPA - LINO LAKES040069-01-015 Drawing: V:\040069 - Tidal Wave Auto Spa\040069-01-015 (ENG) - Lino Lakes, MN\Engineering\Engineering Plans\Sheet Sets\05-040069-01-015-SIT.dwg ;C5.0-Site PlanPlot Date/Time: Mar. 11, 22 - 11:08:39User: JLEENWC OF OTTER LAKE AND MAIN STREET,LINO LAKES, MN 55038AS SHOWN © Bowman Consulting Group, Ltd.ARBPE Firm Registration No. 3548Know what's below.before you dig.Call R 1"=20' 0 2051020 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 1 30 20 21 March 8, 2022AUTO WASH BUILDING (ONE STORY)± 3,500 SFF.F.E. = 917.17'RAMPEQUIPMENT ROOMF.F.E. = 917.50'VACUUM SCREENF.F.E. = 916.56 (M A I N S T R E E T) C . S . A . H . N O . 1 4 29.0'29.0' 24.0' 5.0' 5.0' 9 9 12 30.0' 4.0' 9.0' 19.0'19.0' 10.0' 38.0' 40.0' BUILDING SETBACK 10.0' BUILDING SETBACK 1 2 3 4 4 4 5 5 5 6 6 719 7 719 719 19 7 8 9 10 11 3 3 12 13 14 15 16 17 18 20 21 5 30.0' BUILDING SETBACK 18.0' 18.0' 24.0' 18.0'9.0' 9.0' 24.0' R3.0' R3.0' R3.0' R5.0' R15.0' R6.0' R3.0'R3.0' R10.0' R12.0' 29.0' 13.0' 5.0'5.0' 19.0' 9.0' 5.0' 9.0' 6 6 R10.0' R20.0' R10.0' R3.0' R5.0' R3.0'R3.0' R5.0' R20.0' R3.0' R5.0'R5.0' R3.0' R10.0' 15.0' TRAMP 19719331316MAIN STREETCAR WASH BUILDINGDASHED LINE INDICATED EXTENT OF VACUUM CANOPY ROOFNOTE:LOCATION OF PAY BOOTH, ACCESS GATE, XPS, SIGN TO BE COORDINATED w/CIVILTRASH ENCLOSUREVACUUM/VENDING BUILDINGSIGNAGE (BY OTHERS)GRAY AREA INDICATES SNOW MELTRADIANT HEATED CONCRETE, COORDINATE WITH CIVIL.SEPARATION TANKS. COORDINATE WITH CIVIL.STOP/GO LIGHTDOWNSPOUT TO STORM, TYPICAL OF 11PROPERTY LINESAN.SAN.GAS SERVICESAN.ELEC.WATERCOMM.PAD-MOUNTED UTILITY TRANSFORMER LOCATION, COORDINATE WITH ELETRCIAL DRAWINGS. DRAWN BY:PROJ. NO:ADDRESS:SHEET SIZE:30" x 42"#DATEDESCRIPTIONSHEET TITLE & NUMBERCHECKED BY:PROJECT INFORMATIONCopyright 2021 PROJECT REVISIONSISSUED:REVISED:SEALARCHITECTCLIENTCONSULTANTSTRUCTURALM.E.P.PROJECTCIVILA11BCDEFGHJ234567891011234567891011ABCDEFGHJ12123/14/2022 4:48:56 PMA001ARCHITECTURALSITE PLANMLG21084NW CORNER OF OTTER LAKEAND MAIN STREETLINO LAKES, MN 5503803/14/22TIDAL WAVETHORSON BAKER + ASSOCIATES2055 READING ROAD, SUITE 280CINCINNATI, OH 45202513.579.8200KLH ENGINEERING1538 ALEXANDRIA PIKE, STE 11FORT THOMAS, KY 41075614.603.2662TIDAL WAVE AUTO SPANW CORNER OF OTTER LAKE AND MAIN STREETLINO LAKES, MN 55038NEW POTATO CREEK HOLDINGS, LLC124 E. THOMPSON STREETTOMASTON, GA 30286REZTARK DESIGN STUDIO, LLC601 MAIN STREET, SUITE 200CINCINNATI, OH 45202513.233.3333REZTARK DESIGN STUDIO, LLC(UNDER SEPARATE OWNER CONTRACT)BOWMAN CONSULTING GROUP, LTD954.314.8481IMRAUTO SPA1/16" = 1'-0"A0011AARCHITECTURAL SITE PLANN EXTERIOR MATERIAL LEGEND ST-1MARK MFR FINISH STYLE ITEM NOTES CAST STONE WATERTABLE ECHELON / OLD CASTLE TAN (OAK) SPLITFACE 8"H X 16"L X 4" (NOMINAL) ST-2MARK MFR FINISH STYLE ITEM NOTES SPLITFACE BLOCK VENEER BORAL WHITE - 7 5/8" H X 5 5/8" D X 4'-0" L WITH 45 DEGREE BEVEL AND DRIP ST-3MARK MFR FINISH STYLE ITEM NOTES THIN-SET STONE VENEER CENTURION STONE GRAY, RUST, TAN KENTUCKY LEDGESTONE - MARK MFR FINISH STYLE ITEM NOTES MARK MFR FINISH STYLE ITEM NOTES PT-1MARK MFR FINISH STYLE ITEM NOTES EXTERIOR PAINT SHERWIN WILLIAMS SW 9102 QUINOA ELASTOMERIC LOUVERS & MISC. METAL ITEMS ON EIFS/ STUCCO PROVIDE CUSTOM COLOR EIFS/ STUCCO TO MATCH PT-1 SF-1MARK MFR FINISH STYLE ITEM NOTES STOREFRONT KAWNEER BRONZE SMOOTH STOREFRONT FRAMES GL-1MARK MFR FINISH STYLE ITEM NOTES INSULATED GLAZING KAWNEER CLEAR SMOOTH STOREFRONT GLAZING RF-1MARK MFR FINISH STYLE ITEM NOTES METAL ROOF R-PANELS BERRIDGE REGAL BLUE PRE-FINISHED PRE-FINISHED METAL ROOF & ACCESSORIES PT-2 EXTERIOR PAINT SHERWIN WILLIAMS SW 2735 ROCKWEED METAL ALL HM DOORS AND FRAMES PT-3 EXTERIOR PAINT - - STEEL ALL EXPOSED STRUCTURAL STEEL, TRUSSES, COLUMNS RF-2MARK MFR FINISH STYLE ITEM NOTES METAL ROOF L-PANEL BERRIDGE REGAL BLUE PRE-FINISHED, SMOOTH PRE-FINISHED METAL TRIM, SOFFIT & ACCESSORIES PERFORATED WHERE INDICATED EXTERIOR & INTERIOR FINISHES MARK ITEM FINISH/COLOR DESCRIPTION MODEL/CODE MFR SPLITFACE BLOCK VENEER TAN (OAK) EXTERIOR ELASTOMERIC PAINT QUINOA ALL EIFS/ STUCCO, & LOUVERS ON EIFS/ STUCCO SW 9102 SHERWIN WILLIAMS ROCKWEED ALL HM DOORS AND FRAMES SW 2735MASONRY8"H X 16"L X 4" (NOMINAL)---ECHELON / OLD CASTLE THIN-SET STONE VENEER WHITE (VELLUM)2.5"H X 18"L X 5"D - DEPTH IS CUSTOM, VERIFY IN FIELD PRIOR TO FABRICATION ---BORAL/ CULTURED STONE CAST STONE WATERTABLE GRAY, RUST, TAN KENTUCKY LEDGESTONE ---CENTURION STONE BLACK ALL EXPOSED STRUCTURAL STEEL, TRUSSES, COLUMNSWALLSEXTERIOR PAINT FOR METAL SHERWIN WILLIAMS PRE-FINISHED STEEL (INTERIOR & EXTERIOR) NOTE: ALL FINISHES ARE BASIS OF DESIGN. EQUIVALENT SUBSTITUTIONS PERMITTED UPON OWNER AND ARCHITECT APPROVAL. PRE-FINISHED METAL ROOF & ACCESSORIES REGAL BLUE PRE-FINISHED METAL ROOF PANELS. ---BERRIDGE ROOFSTOREFRONT BRONZE STOREFRONT FRAMES (EXTERIOR INSTALL)US 10B KAWNEER S.F.INSULATED GLAZING CLEAR STOREFRONT GLAZING (EXTERIOR INSTALL)--- MOISTURE RESISTANT PANEL - WALL WHITE WALL PANELS PER ROOM FINISH SCHEDULE #P2400 E.P.I. MOISTURE RESISTANT PANEL - CEILING WHITE CEILING PANELS PER ROOM FINISH SCHEDULE #P1600 COLOR BY OWNER CERAMIC TILE FOR RR WALLS ---CERAMIC TILE --- KAWNEER PRE-FINISHED METAL TRIMS & ACCESSORIES REGAL BLUE PRE-FINISHED SOFFIT, FASCIA, FLASHING, GUTTERS, DOWNSPOUTS TO MATCH ROOF PANELS. D.S. TO MATCH ADJACENT WALL FINISH WHERE INDICATED ---BERRIDGE ST 1 ST 2 ST 3 1 2 3 1 1 1 1 PT PT PT SF GL RF MT CT 1 MR 1 MR 2 INTERIOR PAINT AT RESTROOMS AND OPERATOR BOOTH QUINOA PAINTED CMU IN RESTROOM ABOVE CERAMIC TILE SW 9102 SHERWIN WILLIAMS1APT INSULATED GLAZING SPANDREL STOREFRONT GLAZING (EXTERIOR INSTALL)---KAWNEER1GL KEM 4000 SHERWIN WILLIAMS ROOM FINISH SCHEDULE NAME FLOOR BASE WALLS ELECTRICAL ROOM BROOM FINISHED SLAB ENTRY EQUIPMENT ROOM MECHANICAL ROOM OPERATOR BOOTH RESTROOM CERAMIC TILE NOTES: - ANY MATERIALS NOT CALLED OUT ON THIS SET OF DRAWINGS TO BE SELECTED AND APPROVED BY TIDAL WAVE CORP. - AUXILIARY BUILDINGS: REFER TO APPLICABLE PLANS FOR ADDITIONAL INFORMATION WASH TUNNEL BROOM FINISHED SLAB BROOM FINISHED SLAB BROOM FINISHED SLAB RUSTOLEUM 2 PART EPOXY W/ COLOR FLAKES BROOM FINISHED SLAB CERAMIC TILE SANITARY COVE NONE NONE NONE NONE NONE NONE EXPOSED CMU EXPOSED CMU EXPOSED CMU M.R. PANELS - SEE REMARKS PAINTED CMU SW 9102 SEE REMARKS CEILING M.R. PANELS - SEE REMARKS M.R. PANELS OVER PURLIN PAINTED GYP OVER 6" STL FRAMING PER UL M.R. PANELS OVER PURLIN M.R. PANELS OVER PURLIN M.R. PANELS OVER METAL FRAMING M.R. PANELS OVER PURLINS REMARKS CERAMIC TILE TO RUN FULL HEIGHT AT PLUMBING WALL; 5' HIGH AT OTHER WALLS W/ PAINTED CMU ABOVE SW 9102. TILE SELECTION BY TIDAL WAVE CORP. TILE INSTALLATION TCA W244 OVER CEMENTITIOUS BACKER BOARD. PROVIDE S.S. SCHLUTER TRIMS AT EXPOSED EDGES. 10' A.F.F. CMU INTERIOR WALLS REFER TO M.R. INSTALLATION INSTRUCTIONS FOR PANEL INSTALL ON APPLICABLE WALL SUBSTRATE. REFER TO M.R. INSTALLATION INSTRUCTIONS FOR PANEL INSTALL ON APPLICABLE WALL SUBSTRATE. M.R. PANELS OVER PURLIN 12' A.F.F. CMU INTERIOR WALLS 10' A.F.F. CMU INTERIOR WALLS 10' A.F.F. CMU INTERIOR WALLS ABDEFG HIJKL A.1B.1 D.1E.1G.2 1 2 2.1 3 4 511' - 4"5' - 2"4' - 8"17' - 4"38' - 6"21' - 0"21' - 0" 42' - 0" 13' - 4"13' - 4"13' - 4"13' - 4"13' - 4"13' - 4"13' - 4"13' - 4"13' - 4"13' - 4" 133' - 4" ELECTRICAL ROOM EQUIPMENT ROOM MECHANICAL ROOM RR ENTRY WASH TUNNEL ROOF LINE ABOVE. SHED ROOF LINE ABOVE. DASHED LINE INDICATES EXTENT OF TRENCH 17' - 4"5G A802 9G A802 3D A802 3A A802 1 A803 2 A803 3 A803 4 A803 T/ CONC @ TUNNEL 0' -0" 122.1345 B/ ROOF TRUSS 14' -0" T/ ROOF 19' -9 1/8" TIDAL WAVE SIGNAGE BY OTHERS T/ CONC @ TUNNEL 0' -0" 1 2 2.1 3 4 5 B/ ROOF TRUSS 14' -0" T/ ROOF 19' -9 1/8" TIDAL WAVE SIGNAGE BY OTHERS T/ CONC @ TUNNEL 0' -0" A B D E F G H I J K LA.1 B.1 D.1 E.1 G.2 B/ ROOF TRUSS 14' -0" T/ ROOF 19' -9 1/8" T/ CONC @ TUNNEL 0' -0" ABDEFGHIJKLA.1B.1D.1E.1G.2 B/ ROOF TRUSS 14' -0" T/ ROOF 19' -9 1/8" T/ CONC 0' -0" T/CMU(TRASH) 8' -0" T/ CONC 0' -0" T/CMU(TRASH) 8' -0" T / CONC 0' -0" T/ CONC 0' -0" T/CMU(TRASH) 8' -0" T / CONC 0' -0" T/ CONC 0' -0" B/ROOF TRUSS(VACUUM) 8' -8" T/ CONC 0' -0" B/ROOF TRUSS (VACUUM) 8' -8" T / CONC 0' -0" T/ CONC 0' -0" B/ROOF TRUSS(VACUUM) 8' -8" B/ROOF TRUSS (VACUUM) 8' -8" T / CONC 0' -0" 16' - 6"9' - 2"A420 4A A420 4E 10' - 6" 6"5' - 0"4' - 6"6"3' - 8"6"TRASH ENCLOSURE 4 T100 SLOPE SLOPET101 1 A804 2 A804 3 A804 VACUUM ENCLOSURE 9 VENDING 10 2' - 0"13' - 4"4' - 8"2' - 6"2' - 6" 1' - 0"3' - 0"1' - 0" 20' - 0"9' - 0"87 88 DASHED LINE INDICATES ROOF ABOVE SOLID LINE INDICATES WATER TABLE 5' - 0" 2' - 0"16' - 0"2' - 0"18' - 0"14' - 4" 3' - 0"3' - 0" 9' - 0"6' - 0"9' - 0" 24' - 0" 2' - 4" PREFABRICATED PAY STATION BOOTH. VENEER TO MATCH MAIN CAR WASH BUILDING PAY KIOSK. COORDINATE LOCATION OF PAY KIOSK WITH OWNER CONCRETE ISLAND, SEE CIVIL LINE OF CANOPY ROOF STEEL BUILDING STRUCTURE, PAINT PRIMARY STEEL FRAMES, HORIZONTAL BEAMS, AND WIND BRACES. DO NOT PAINT ROOF PURLINS OR UNDERSIDE OF DECK PAY KIOSK. COORDINATE LOCATION OF PAY KIOSK WITH OWNER SOLID LINE INDICATES STONE VENEER BARRIER GATE CONTROL BOX WITH ACCESS DOOR GROUND SIGN CAMERA CAMERA D.S. D.S. T/ CONC 0' -0" T/COL -VAC CANOPY 10' -0" T/ CONC 0' -0" T/COL -VAC CANOPY 10' -0" T-COL -VAC CANOPY 10' -0" T-CONC 0' -0" T-COL -VAC CANOPY 10' -0" T-CONC 0' -0" 1 CITY OF LINO LAKES RESOLUTION NO. 22-55 APPROVING OTTER CROSSING 2ND ADDITION PRELIMINARY PLAT WHEREAS, the City received a land use application for Otter Crossing 2nd Addition preliminary plat for hereafter referred to as “Development”; and WHEREAS, City staff completed a review of the Development based on the following: • Otter Crossing 2nd Addition Preliminary Plat & Site Plans prepared by Pioneer Engineering dated April 1, 2022 • Storm Water Management Plan prepared by Pioneer Engineering revised June 22, 2021 • Storm Water Pollution Prevention Plan prepared by Pioneer Engineering dated March 5, 2021 • Concept Plan 5 prepared by Pioneer Engineering dated April 6, 2020 • Tidal Wave Auto Spa Site Development Plans prepared by Bowman dated February 1, 2022 • Stormwater Management Report prepared by Bowman dated March 3, 2022 • Architectural Plans prepared by Reztark dated March 14, 2022 • Landscape Plans prepared by Bowman dated (no date provided) • Photometric Plan prepared Reztark dated February 1, 2022; and WHEREAS, a public hearing was held before the Planning & Zoning Board on May 11, 2022 and the Board recommended approval of the Development with a 6-0 vote. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT Per City Code Section 1001.013, Premature Subdivision: (1) General. Any concept plan, preliminary plat or final plat deemed premature pursuant to the following criteria shall be denied by the City Council. (2) Conditions for establishing a premature subdivision. A subdivision may be deemed premature should any of the following conditions not be met. (a) Consistency with the Comprehensive Plan. Including any of the following: 1. Land use plan; 2. Transportation plan; 3. Utility (sewer and water) plans; 4. Local water management plan; 5. Capital improvement plan; and 6. Growth management policies, including MUSA allocation criteria. 2 The Otter Crossing 2nd Addition preliminary plat is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development is also consistent with the local water management plan, capital improvement plans and growth management policies. (b) Consistency with infill policies. A proposed urban subdivision shall meet the city's infill policies: 1. The urban subdivision must be located within the Metropolitan Urban Service Area (MUSA) or the staged growth area as established by the city's Comprehensive Plan; 2. The cost of utilities and street extensions must be covered by one or more of the following: a. An immediate assessment to the proposed subdivision; b. One hundred percent of the street and utility costs are privately financed by the developer; c. The cost of regional and/or oversized trunk utility lines can be financed with available city trunk funds; and d. The cost and timing of the expenditure of city funds are consistent with the city's capital improvement plan. 3. The cost, operation and maintenance of the utility system are consistent with the normal costs as projected by the water and sewer rate study; and 4. The developer payments will offset additional costs of utility installation or future operation and maintenance. The Otter Crossing 2nd Addition preliminary plat is consistent with infill policies. The development is within the current Utility Staging Area 1A=2018-2025. The cost of utility and private street extensions is being privately financed by the developer. The cost, operation and maintenance of the utility system are consistent with the normal costs projected by the water and sanitary system plans. No future utility costs are proposed. (c) Roads or highways to serve the subdivision. A proposed subdivision shall meet the following requirements for level of service (LOS), as defined by the Highway Capacity Manual: 1. If the existing level of service (LOS) outside of the proposed subdivision is A or B, traffic generated by a proposed subdivision will not degrade the level of service more than one grade; 2. If the existing LOS outside of the proposed subdivision is C, traffic generated by a proposed subdivision will not degrade the level of service below C; 3. If the existing LOS outside of the proposed subdivision is D, traffic generated by a proposed subdivision will not degrade the level of service below D; 4. The existing LOS must be D or better for all streets and intersections providing access to the subdivision. If the existing level of service is E or F, the subdivision developer must provide, as part of the proposed project, improvements needed to ensure a level of service D or better; 5. Existing roads and intersections providing access to the subdivision must have the structural capacity to accommodate projected traffic from the proposed subdivision or the developer will pay to correct any structural deficiencies; 6. The traffic generated from a proposed subdivision shall not require city street improvements that are inconsistent with the Lino Lakes capital improvement plan. 3 However, the city may, at its discretion, consider developer-financed improvements to correct any street deficiencies; 7. The LOS requirements in divisions (2)(c)1. to 4. above do not apply to the I-35W/Lake Drive or I-35E/Main St. interchanges. At city discretion, interchange impacts must be evaluated in conjunction with Anoka County and the Minnesota Department of Transportation, and a plan must be prepared to determine improvements needed to resolve deficiencies. This plan must determine traffic generated by the subdivision project, how this traffic contributes to the total traffic, and the time frame of the improvements. The plan also must examine financing options, including project contribution and cost sharing among other jurisdictions and other properties that contribute to traffic at the interchange; and 8. The city does not relinquish any rights of local determination. The Otter Crossing 2nd Addition preliminary plat meets the requirements for level of service (LOS). The I-35E Corridor AUAR analyzed traffic impacts for commercial development of this entire corridor. The proposed commercial car wash is consistent with the AUAR Land Use Scenarios for commercial development. Otter Lake Road and CSAH 14 (Main Street) are A- Minor Arterial Expander and A-Minor Arterial Connector roads, respectively and have structural capacity to handle the traffic volume of the commercial car wash. No street improvements are proposed that are inconsistent with the City’s capital improvement plan. The city does not relinquish any rights of local determination. (d) Water supply. A proposed subdivision shall be deemed to have an adequate water supply when: 1. The city water system has adequate wells, storage or pipe capacity to serve the subdivision; 2. The water utility extension is consistent with the Lino Lakes water plan and offers the opportunity for water main looping to serve the urban subdivision; 3. The extension of water mains will provide adequate water pressure for personal use and fire protection; and 4. The rural subdivision can demonstrate that each of the proposed lots can be provided with a potable water supply. The Otter Crossing 2nd Addition preliminary plat will have an adequate water supply. An 8” watermain along the private street extending from Otter Lake Road will serve the development. The City’s water system has capacity to accommodate the commercial car wash. (e) Waste disposal systems. A proposed subdivision shall be served with adequate waste disposal systems when: 1. The urban sewered subdivision is located inside the city's MUSA or is consistent with the MUSA allocation criteria; 2. The city has sufficient MUSA and pipe capacity to serve the subdivision if developed to its maximum density; 3. The subdivision will result in a sewer extension consistent with Lino Lakes sewer plan and capital improvement plan; 4. A rural subdivision can demonstrate that each lot can be served by an adequate sanitary sewer disposal system; and 5. A rural subdivision with a proposed communal sanitary sewer or water system has an effective long range management and maintenance program with proper financing. 4 The Otter Crossing 2nd Addition preliminary plat will be served with an adequate waste disposal system. The development is within the current Utility Staging Area 1A=2018-2025 and will be served by an 8” sewer main along the private street extending from Otter Lake Road. The sanitary sewer system has capacity to accommodate the commercial car wash. . BE IT FURTHER RESOLVED by the City Council of The City of Lino Lakes hereby establishes that Otter Crossing 2nd Addition is not a premature subdivision; and BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby approves the preliminary plat for Otter Crossing 2nd Addition subject to the following conditions: 1. A new or amended Declaration of Driveway Easement detailing the developer’s maintenance responsibilities of the private street shall be recorded across Lot 1 and Lot 2, Block 1, Otter Crossing 2nd Addition. 2. The applicant shall submit a Land Use Application for final plat after preliminary plat approval. 3. A Development Agreement and securities related to the final plat shall be required. BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby approves that the following comments shall be addressed at the time of final plat submittal: 1. All comments from the City Engineer letter dated May 4, 2022 shall be addressed. 2. Sheet 3.1 Preliminary Plat: a. An additional 60 ft of street right-of-way shall be dedicated along Otter Lake Road to the north lot line of Outlot A. b. Under Wetland A and Wetland B, include wetland areas. c. In the table, change number of lots from 1 to 2. 3. Sheet 1, Concept Plan 5 a. The concept plan shall be revised to accurately depict the proposed private street layout, and future street and lot layouts for Outlot A. Adopted by the Council of the City of Lino Lakes this 13th day of June, 2022. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 1 CITY OF LINO LAKES RESOLUTION NO. 22-56 APPROVING CONDITIONAL USE PERMIT FOR TIDAL WAVE AUTO SPA WHEREAS, the City received a land use application for a conditional use permit for Tidal Wave Auto Spa and hereafter referred to as “Development”; and WHEREAS, the property is zoned GB, General Business and allows for a commercial car wash with a conditional use permit; and WHEREAS, the legal description of the property will be Lot 1, Block 1, Otter Crossing 2nd Addition after recording of the final plat; and WHEREAS, City staff has completed a review of the land use application based on the following plans: • Otter Crossing 2nd Addition Preliminary Plat & Site Plans prepared by Pioneer Engineering dated April 1, 2022 • Storm Water Management Plan prepared by Pioneer Engineering revised June 22, 2021 • Storm Water Pollution Prevention Plan prepared by Pioneer Engineering dated March 5, 2021 • Concept Plan 5 prepared by Pioneer Engineering dated April 6, 2020 • Tidal Wave Auto Spa Site Development Plans prepared by Bowman dated February 1, 2022 • Stormwater Management Report prepared by Bowman dated March 3, 2022 • Architectural Plans prepared by Reztark dated March 14, 2022 • Landscape Plans prepared by Bowman dated (no date provided) • Photometric Plan prepared Reztark dated February 1, 2022; and WHEREAS, a public hearing was held before the Planning & Zoning Board on May 11, 2022 and the Board recommended approval of the conditional use permit with a 6-0 vote. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following findings: FINDINGS OF FACT 1. The proposed development application has been found to be consistent with the policies and recommendations of the Lino Lakes Comprehensive Plan including: a. Land Use Plan. b. Transportation Plan. 2 c. Utility (Sewer and Water) Plans. d. Local Water Management Plan. e. Capital Improvement Plan. f. Policy Plan. g. Natural Environment Plan. The proposed Tidal Wave Auto Spa commercial car wash is consistent with the Land Use, Utility, Local Water Management, Capital Improvement, Policy and Natural Environmental Plans and recommendations of the comprehensive plan as detailed in this staff report. 2. The proposed development application is compatible with present and future land uses of the area. The proposed Tidal Wave Auto Spa commercial car wash is compatible with present and future land uses. The subject site and adjacent parcels are guided and zoned for commercial use. The proposed commercial car wash is consistent with the commercial land uses. 3. The proposed development application conforms to performance standards herein and other applicable City Codes. A Site Plan Review has been completed and the proposed Tidal Wave Auto Spa commercial car wash meets zoning performance standards with conditions listed in the staff report. 4. Traffic generated by a proposed development application is within the capabilities of the City when: a. If the existing level of service (LOS) outside of the proposed subdivision is A or B, traffic generated by a proposed subdivision will not degrade the level of service more than one grade. b. If the existing LOS outside of the proposed subdivision is C, traffic generated by a proposed subdivision will not degrade the level of service below C. c. If the existing LOS outside of the proposed subdivision is D, traffic generated by a proposed subdivision will not degrade the level of service below D. d. The existing LOS must be D or better for all streets and intersections providing access to the subdivision. If the existing level of service is E or F, 3 the subdivision developer must provide, as part of the proposed project, improvements needed to ensure a level of service D or better. e. Existing roads and intersections providing access to the subdivision must have the structural capacity to accommodate projected traffic from the proposed subdivision or the developer will pay to correct any structural deficiencies. f. The traffic generated from a proposed subdivision shall not require City street improvements that are inconsistent with the Lino Lakes Capital Improvement Plan. However, the City may, at its discretion, consider developer-financed improvements to correct any street deficiencies. g. The LOS requirements in paragraphs a. to d. above do not apply to the I- 35W/Lake Drive or I-35E/Main St. interchanges. At City discretion, interchange impacts must be evaluated in conjunction with Anoka County and the Minnesota Dept. of Transportation, and a plan must be prepared to determine improvements needed to resolve deficiencies. This plan must determine traffic generated by the subdivision project, how this traffic contributes to the total traffic, and the time frame of the improvements. The plan also must examine financing options, including project contribution and cost sharing among other jurisdictions and other properties, that contribute to traffic at the interchange. h. The City does not relinquish any rights of local determination. The proposed Tidal Wave Auto Spa commercial car wash does not change the level of service on Otter Lake Road or CSAH 14 (Main Street). The roads are A-Minor Arterial Expander and A-Minor Arterial Connector roads and have structural capacity to handle the traffic volume of the commercial car wash. The City does not relinquish any rights of local determination. 5. The proposed development shall be served with adequate and safe water supply. The proposed Tidal Wave Auto Spa commercial car wash will connect to an adequate and safe municipal water supply. 6. The proposed development shall be served with an adequate and safe sanitary sewer system. The proposed Tidal Wave Auto Spa commercial car wash will be served by an adequate and safe municipal sanitary sewer system. 7. The proposed development shall not result in the premature expenditures of City funds on capital improvements necessary to accommodate the proposed development. No City funds are being expended on this project. 4 8. The proposed development will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property, or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare, or odors. Commercial car washes are an allowed use in the GB, General Business District with an approved conditional use permit. The project will not generate excessive traffic, noise, smoke, fumes, glare or odors. 9. The proposed development will not result in the destruction, loss, or damage of a natural, scenic or historic feature of major importance. There are no natural, scenic or historic features on the existing site. BE IT FURTHER RESOLVED by The City Council of Lino Lakes in addition to the administrative requirements of a conditional use permit, the following specific performance standards of Section 1007.112 (8)(c) must also be met: 1. The site is serviced by municipal sanitary sewer. The site is served by 8” municipal sanitary sewer. 2. The architectural appearance and functional plan of the building and site shall not be so dissimilar to the existing buildings or areas as to cause impairment in property values or constitute a blighting influence. The commercial car wash building and related accessory buildings meet zoning ordinance architectural and building material performance standards for commercial buildings. The car wash is single story with exterior materials consisting of glass windows, EIFS, concrete block veneer, stone veneer and metal overhead doors. The color palette consists of earth tone tan, white, gray, rust and bronze. The standing seam metal roofs on the car wash, vacuum building and canopies are regal blue. The building and site plan are similar to existing commercial buildings in the area. 3. Magazining or stacking space is constructed to accommodate that number of vehicles which can be washed during a maximum thirty (30) minute period and shall be subject to the approval of the City Engineer. The average carwash takes three (3) minutes. This would require stacking space for 10 vehicles. The site plan provides stacking space for 12 vehicles. 4. At the boundaries of a residential district, a strip of not less than five (5) feet shall be landscaped and screened in compliance with §1007.043 (17) of this Ordinance. The proposed commercial car wash is not adjacent to residential districts. 5 5. Parking or car magazine storage space shall be screened from view of abutting residential districts in compliance with §1007.043 (17) of this Ordinance. The proposed commercial car wash is not adjacent to residential districts. 6. The entire area other than occupied by the building or plantings shall be surfaced with material which will control dust and drainage which is subject to the approval of the City Engineer. The entire area other than buildings and plantings is surfaced with standard duty concrete pavement, heavy duty concrete pavement or concrete sidewalk. 7. The entire area shall have a drainage system which is subject to the approval of the City. A grading and drainage plan has been reviewed and approved with conditions by the City Engineer and Rice Creek Watershed District. 8. All lighting shall be hooded and so directed that the light source is not visible from the public right-of-way or from an abutting residence and shall be in compliance with §1007.043 (6) of this Ordinance. All lighting is hooded and downlit. A photometric plan has been reviewed and approved with conditions. 9. Vehicular access points shall be limited, shall create a minimum of conflict with through traffic movement and shall be subject to the approval of the City Engineer. One (1) driveway access is proposed into the site that creates minimal conflict with through traffic movements. The site plans have been reviewed and approved by the City Engineer with conditions. 10. Provisions are made to control and reduce noise. The commercial car wash is oriented north-south towards CSAH 14 (Main Street) and the private street to control and reduce noise onto adjacent properties. BE IT FURTHER RESOLVED by The City Council of the City of Lino Lakes hereby approves the conditional use permit for a commercial car wash for Tidal Wave Auto Spa subject to the following conditions: 1. The City of Lino Lakes agrees to complete an initial inspection of the carwash facility in order to ensure the equipment is installed so that no cross-connections or bypass feature exists that would allow the wash system to function without the use of reclaim water. 2. The property owner, Tidal Wave Auto Spa, will be required to annually hire an independent plumber to ensure the reclaim equipment is being utilized properly 6 and no bypass or cross-connections exist between the fresh water line and the reclaim water lines and report said findings to the City. 3. The City of Lino Lakes agrees to provide water usage records to MCES upon request. 4. Wall signs are not allowed on the trash enclosure or vacuum screen building except for “Employees Only” signs. All other signage shall be in compliance with City Code Chapter 1010. 5. No vehicles shall impede driveway ingress/egress, the sidewalk, or backup into the private street. 6. A Site Improvement Performance Agreement shall be executed. 7. The final plat and Development Agreement for Otter Crossing 2nd Addition shall be recorded with Anoka County by the developer. 8. The conditional use permit shall be recorded with Anoka County by the City after recording of the final plat for Otter Crossing 2nd Addition. BE IT FURTHER RESOLVED by the City Council of the City of Lino Lakes hereby approves the conditional use permit subject to the following requirements being addressed prior to issuance of a building permit: 1. All comments from the City Engineer letter dated May 6, 2022 shall be addressed. 2. All comments from the Environmental Coordinator letter dated May 4, 2022 shall be addressed. 3. Sheet C5.0, Site Plan: a. A 5 ft wide sidewalk shall be shown consistent with civil plan set. b. Curb cut distance shall be a minimum 40ft from adjacent curb cut on the property to the east. c. The trash enclosure shall be rotated to be consistent with Sheet A001. d. The two (2) vacuum bays on the north end of the west row near the exit lane shall be removed to avoid potential conflicts between motor vehicles and the vacuums. e. Identify what dashed lines are along east and west interior lot lines. f. Under Site Information, change BG to GB. g. Under Site Layout, change City of Willmar, MN to City of Lino Lakes, MN. h. Provide adequate parking spaces for three (3) employees. 4. Sheet C6.0, Grading and Drainage Plan: a. Add Grading and Drainage Plan to side title bar. 5. Sheet C6.2, Proposed Drainage Area Map: a. Revise % under Proposed Impervious Area Calculations. 6. Sheet A200, Interior and Exterior Finishes and Sheet A801: a. On the plan sheet, Mark RF-1 shall detail the metal roofs are standing seam with hidden fasteners. Exposed fasteners are not allowed. 7. Sheet A501, Vacuum Canopy: a. A 3 ft high split face block veneer base matching the building shall be included on the north and south endcap steel structures of both canopies. 7 b. Callout boxes for material types and color shall be included similar to Sheet A201. 8. Landscape Plans: a. All plan sheets shall be dated. 9. Sheet E103, Photometric Plan: a. The Photometric Plan shall be revised to clearly show all lot lines and compliance with the ordinance foot candle requirements. Adopted by the Council of the City of Lino Lakes this 13th day of June, 2022. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY OF LINO LAKES RESOLUTION NO. 22-57 RESOLUTION APPROVING SITE IMPROVEMENT PERFORMANCE AGREEMENT WITH TWAS PROPERTIES, LLC WHEREAS, the City has completed review of the site and building plans for Tidal Wave Auto Spa; and WHEREAS, the legal description of the property will be Lot 1, Block 1, Otter Crossing 2nd Addition after recording of the final plat; and WHEREAS, City Code Section 1007.020(5)(d) requires the execution of a site performance agreement prior to issuance of a building permit. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes that the Site Improvement Performance Agreement between the City of Lino Lakes and TWAS Properties, LLC is hereby approved and the Mayor and City Clerk are authorized to execute such agreements on behalf of the City. Adopted by the Council of the City of Lino Lakes this 13th day of June, 2022. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk WS – Item 3 WORK SESSION STAFF REPORT Work Session Item No. 3 Date: June 6, 2022 To: City Council From: Katie Larsen Re: Otter Lake Animal Care Center (6848 Otter Lake Road) Background At the Work Session, staff will present the June 13, 2022 Council staff report. Otter Lake Animal Care Center is located at 6848 Otter Lake Road. The applicant, Dr. Wayne Scanlan, is proposing to construct a 2,850 sf addition to the existing 4,000 sf building and expand the existing parking lot. The existing site is approximately 1.51 acres. Requested Council Direction None, discussion only. Attachments 1. June 13, 2022 Council Staff Report 1 CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: June 13, 2022 TOPIC: Otter Lake Animal Care Center (6848 Otter Lake Road) i. Consider Resolution No. 22-58 Approving Conditional Use Permit Amendment for Veterinary Hospital ii. Consider Resolution No. 22-59 Approving Site Improvement Performance Agreement VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting City Council consideration of a Conditional Use Permit Amendment and Site Improvement Performance Agreement for Otter Lake Animal Care Center (6848 Otter Lake Road). Complete Application Date: April 13, 2022 60-Day Review Deadline: June 12, 2022 Environmental Board Meeting: May 4, 2022 Park Board Meeting: NA Planning & Zoning Board Meeting: May 11, 2022 Tentative City Council Work Session: June 6, 2022 Tentative City Council Meeting: June 13, 2022 BACKGROUND Otter Lake Animal Care Center is located at 6848 Otter Lake Road. The applicant, Dr. Wayne Scanlan, is proposing to construct a 2,850 sf addition to the existing 4,000 sf building and expand the existing parking lot. The existing site is approximately 1.51 acres. The Land Use Application is for the following: • Amendment to Existing Conditional Use Permit for Veterinary Hospitals • Site and Building Plan Review This staff report is based on the followings plan sets: 2 • Plan Set prepared by Planforce dated April 11, 2022 • Certificate of Survey and Easement Sketch & Description prepared by EG Rud & Sons, Inc. revised April 8, 2022 • Wetland Delineation Report prepared by Jacobson Environmental, PLLC dated November 12, 2018 • Hydrology Report prepared by Loucks revised February 21, 2022 • Operations & Maintenance Plan prepared by Loucks dated April 11, 2022 • Geotechnical Evaluation Report prepared by Braun Intertec Corporation dated January 11, 2019 ANALYSIS History Otter Lake Animal Care Center has existed at this location since 1987. A conditional use permit was approved in 1986 for the initial construction of the veterinary clinic and boarding facility. In December 1996, an amendment to the conditional use permit was approved to expand the pole barn structure and allow boarding for up to 100 animals. In September 2019, Council approved this proposed amendment to the conditional use permit for the building addition and parking lot expansion. Construction did not begin within one (1) year after the date of approval and the amended conditional use permit was void. The applicant has resubmitted the conditional use permit application for review. Overall, the proposed 2022 project is the same as the approved 2019 project. Existing Site Conditions The site contains the existing 4,000 sf facility, a parking lot, indoor and outdoor kennels, two (2) small accessory sheds, a fenced area, and open green space with minimal tree coverage. A pond exists on the north side of the site and a small wetland exists on the south side. The Certificate of Survey notes the parcel size is 1.51 acres; however, this includes a portion of CR 84 (Otter Lake Road) street right-of-way. In 1996, CR 84 (Otter Lake Road) was realigned and street right-of-way was to be dedicated via easement along the west lot line. Unfortunately, this easement was not recorded so a separate roadway, drainage, and utility easement shall be recorded against the property. Anoka County GIS shows the estimated acreage as 1.33 acres. Plans have been revised to correctly show the front lot line. A 66 foot wide NSP easement and overhead powerlines bisect the northwest corner of the site. An 8 foot wide trail exists along CR 84 (Otter Lake Road). Per the Geotechnical Report, the area of the proposed addition is currently a green space to the north of the existing building. Current grades range from 910 to 914 EL. The site is generally flat with grades sloping down away from the building. Nine (9) soil borings were drilled ranging from 6 to 21 feet in depth. Ground water was not observed in any of the borings. Soil types consist of SM (silty sands), SC (clayey sands) and CL (low plasticity clays). 3 Zoning and Land Use The property is zoned LI, Light Industrial and allows for Veterinary Hospitals with a conditional use permit. A conditional use permit was approved in 1986 and amended once in 1996 to allow for an addition to the pole barn. Any change involving a structural enlargement of the facility requires an amendment to the conditional use permit. Current Zoning LI, Light Industrial Current Land Use Industrial Future Land Use per CP Industrial Utility Staging Area 1A=2018-2025 Surrounding Zoning and Land Use Direction Zoning Current Land Use Future Land Use North LI, Light Industrial Vacant Industrial Industrial East LI, Light Industrial Vacant Industrial Industrial South LI, Light Industrial Industrial Industrial West PUD (Industrial) I-35W and Industrial Industrial Site and Building Plan Review Site Plan As previously discussed, the certificate of survey notes the parcel size as 1.51 acre, but this includes the Otter Lake Road right-of-way easement. The approximate road right-of-way shown on the survey for this parcel is graphically shown per the Otter Lake Road Realignment Utility and Street Improvement Plans Sheet 12 of 31 revised As-Built on February 7, 2000. This road right-of-way is also consistent with the 1998 Easement Grant signed by Dr. Scanlan that did not get recorded. Anoka County GIS shows the estimated acreage as 1.33 acres. For the purposes of site plan review, this street right-of-way line will be used as the front lot line. An easement will be required to be recorded as part of the conditional use permit. The site plan proposes a 2,850 sf addition to the existing 4,000 sf building with additional parking to the north of the site. A second level mezzanine/office above the addition is also proposed. The existing indoor and outdoor boarding kennels and fenced outdoor area will remain. The boarding of up to 100 animals was approved as part of the 1996 CUP amendment. One accessory shed on the north side will be removed. Overall, the proposed building addition and parking lot meet setback and performance standards except as noted in this staff report. 4 Architectural Plans and Exterior Building Materials Per the architectural plans dated April 11, 2022, the exterior materials of the proposed addition include evening blue and white Hardie plank lap siding, glass/doors, manganese ironspot brick base, gray stone and charcoal gray standing seam metal roof. The existing building has metal siding. The existing west elevation (front façade) will be remodeled to match the new façade with new brick, new Hardie plank lap siding and new standing seam metal roof. The north, south and east existing metal siding elevations will be painted to match the new addition. The exterior materials meet the ordinance requirements of material types, colors and percentages. A second floor mezzanine is proposed for the office and storage space. The architect confirmed with the Building Official that an elevator is not required. The building height is 27ft which is less than the maximum allowed 45 feet. A trash enclosure is proposed to the north of the new addition adjacent to the new parking lot. Construction details provided on Sheet A8.01 indicate a wood fence enclosure. The enclosure is 6’8” in height. The fence and gate colors and material details shall be provided. Off-Street Parking Requirements A 24 foot wide drive aisle and 22 parking spaces are proposed on the north side to provide additional parking for staff and clients. The existing parking lot abutting CR 84 (Otter Lake Road) does not meet the full 15 foot street setback requirement, but is considered legal non- conforming because Otter Lake Road was reconstructed and realigned in 1996. The total number of proposed parking spaces is 37 (15 existing + 22 new). Section 1007.044(6) requires 3 spaces plus at least 1 space for each 200 sf of floor area which equals 37 spaces ((6,750/200) = 33.75+3 = 36.75 = 37). The parking spaces meet required number and dimensions. Grading Plan and Stormwater Management Per the Comprehensive Stormwater Management Plan prepared by Loucks revised February 21, 2022, the existing site consists of 4 different drainage areas: north to an existing pond, south to an existing wetland, west to Otter Lake Road and east to undeveloped land. A majority of the developed portion of the site drains to the constructed north pond. This pond is located on both the subject site and on the adjacent parcel to the north and was designed to handle more than the existing development. The pond will be deepened, regraded, and updated to meet current NURP pond design standards. All new impervious runoff is being directed to this pond. Proposed peak runoff rate and volume will be less than existing. A drainage and utility easement shall be recorded over the north stormwater pond that includes both the subject site and the adjacent property. Public Utilities The existing building is served by a private well and 21” municipal sanitary sewer located along Otter Lake Road. The new addition and existing building will be connected to 16” municipal watermain. 5 Per Sheet C1-2, the existing private well will be removed and capped. Tree Preservation and Mitigation Plan The Environmental Coordinator and Environment Board reviewed the tree preservation and landscaping requirements. The following comments are from the May 4, 2022 Environmental Board staff report. The 11 trees planned for removal are in non-environmentally sensitive portions of the basic use area and will not require mitigation trees to be planted. The ash tree located southwest of the accessible parking spaces should be added to the removal list. With the addition of the tree protection fence detail, the preservation and mitigation standards will be met. Open Areas Landscape Standards Open area landscape standards require 1 large tree and 3 large shrubs per 2,000 sf. There are 7,894 square feet of open space that require 4 large trees and 12 large shrubs. Provided on site are 8 large trees and 12 medium shrubs. Four (4) additional large shrubs are required to meet open space requirements. Buffer and Screen Standards A buffer and/or screen would have been required if the portion of the parking lot west of the building were part of the new construction. As the parking lot is pre-existing, a buffer and screen will not be required. Buffers and screens requirements have been met. Canopy Cover Canopy cover standards require a minimum of 40% canopy coverage. Vehicular hardscape planned: 9,147 sq. ft. Canopy cover requirement: 3,659 sq. ft. Canopy cover provided: 6,325 sq. ft. Canopy cover requirements have been met. Foundation Landscaping Foundation Landscaping standards apply to building fronts and sides facing public or private streets. Two (2) large trees and 6 large shrubs are required per 100 linear feet of building. These plants should be within 30 feet of the building. 6 The applicable building face is the west face, which is approximately 40 ft. One (1) large tree and 3 large shrubs are required. Two (2) medium trees (equivalent to 1 large tree) and 12 medium shrubs (equivalent to 9 large shrubs) are provided. Foundation landscaping requirements have been met. Boulevard Trees Boulevard trees are not required for commercial developments. Sod and Ground Cover The plan indicates 8 inches of topsoil for all unpaved disturbed areas. Sod will be installed around the parking lot, north of the parking access road, and in the disturbed area east of the building addition. The landscape contractor will be providing an irrigation plan to the applicant that provides for proper irrigation of all planted trees, shrubs, and sod. Sod and ground cover standards are met. Signage A Sign Permit Application and sign plans shall be submitted for any wall or ground mount signage. Impervious Surface Coverage The LI, Light Industrial zoning district allows for 75% impervious surface coverage. Per Sheet C2.1, Site Plan, the proposed impervious surface is 0.614 acres or 41% which meets ordinance requirements. Impervious Surface Coverage Total Parcel Size 1.51 acres Existing Impervious 0.304 acres (20%) Proposed Impervious 0.614 acres (41%) Traffic Study A traffic study is not required. CR 84 (Otter Lake Road) is a Major Collector Road and is capable of handling the additional traffic volume proposed by the building addition and parking lot. Public Land Dedication Park land dedication and/or fees are not required. This is an existing lot of record and not being subdivided. 7 Comprehensive Plan Resource Management System The Resource Management System Plan goal of preserving surface water quality is supported by the construction of stormwater management BMP’s such as curb, gutter and NURP pond. Land Use Plan The Comprehensive Plan guides this property for industrial use. The proposed building addition to the Otter Lake Animal Care Center is consistent with industrial land use. Housing Plan The goals and policies of Housing Plan are not negatively impacted by the proposed building addition to the Otter Lake Animal Care Center. Transportation Plan Goals of the Transportation Plan are to ensure that street and roads are as safe as possible and to reduce unnecessary traffic. CR 84 (Otter Lake Road) is a Major Collector Road and is capable of handling the additional traffic volume proposed by the building addition. Sanitary Sewer and Water Supply Plan A 21” sanitary sewer main and 16” watermain along Otter Lake Road provide public utilities to the site. The sanitary sewer and water supply system have capacity for the building addition. Alternative Urban Areawide Review (AUAR) The site is within the 2005 I-35E Corridor AUAR environmental review boundary. The AUAR was updated in April 2020. The AUAR identified this site as industrial in all 3 land use scenarios. The proposed building addition to Otter Lake Animal Care Center is consistent with industrial development. No further environmental assessment is required. Wetlands A Wetland Delineation Report was prepared by Jacobson Environmental PLLC dated November 12, 2018. A WCA Notice of Decision for the wetland delineation was issued by RCWD on May 6, 2019 and is valid for 5 years. The wetland delineation report noted 2 basins on site. Per RCWD, the north basin (0.152 acres) was found to be incidental under WCA and is not a wetland. This basin is used for stormwater management. The south basin (0.080 acres) is a wetland, but no impacts are proposed. The wetland is not in the Wetland Management Corridor; therefore, no conservation easement or buffer is required. A drainage and utility easement extending 10 feet from the delineated boundary will be required over the portion of the south wetland that is located on the subject site. 8 Shoreland District The parcel is not located within the Shoreland District. Floodplain There are no floodplains located on site. Anoka County Highway Department Anoka County Highway Department reviewed the plans and have no comments. Public Safety Comments The Fire Division requires a fire hydrant near the fire department connector on the building. The Police Division provided comments in 2019 regarding security cameras, access and exterior lighting. These comments have been addressed and no additional revisions are required. Environmental Board The Environmental Board reviewed the project on May 4, 2022. Their recommendations are summarized in the attached Environmental Memo dated May 4, 2022. Agreements Storm Water Maintenance Agreement The stormwater pond will be privately maintained and a Stormwater Maintenance Declaration will be required. A joint Storm Water Maintenance Agreement is required between the adjacent property owners because the stormwater pond is located on both parcels. Site Improvement Performance Agreement A Site Improvement Performance Agreement is required. Planning and Zoning Board The Planning & Zoning Board held a public hearing on May 11, 2022. There were no public comments. The Board recommended approval with a 6-0 vote with conditions detailed in Resolution No. 22-58. Findings of Fact Council Resolution No. 22-58 details the Conditional Use Permit Findings of Fact. 9 RECOMMENDATION Staff and Boards recommend approval of the conditional use permit amendment for Otter Lake Animal Care Center. ATTACHMENTS 1. Site Plan, Floor Plans and Color Elevations 2. Resolution No. 22-58 3. Resolution No. 22-59 4. Site Improvement Performance Agreement – To Follow (3)-EXISTING COVERED 2,850 SF BUILDING ADDITION ADA PARKING SIGN TYP-SEE DETAIL TYPICAL ADA PARKING SEE DETAIL CONCRETE SIDEWALK TYP-SEE DETAIL 6 9 11 11 18.0'26.1'18.0'24.0'5.0'18.0'24.0'18.0'8.0'SURMOUNTABLE CURB & GUTTER TYP-SEE DETAIL MATCH EXISTING FENCE CONCRETE SIDEWALK TYP-SEE DETAIL RE-STRIPE EXISTING PARKING LOT TRANSITION TO B612 MATCH EX. CURB R 3' R 3' R 3' R 27' R 1'R 18' R 42' R 18' R 42' R 3' R 3' R 3' R 3' 9.0'9.0'8.0'8.5'1.6'CONCRETE STOOP. SEE ARCHITECTURAL AND/OR STRUCTURAL. MATCH EX. SIDEWALK ADA NO PARKING ACCESS AISLE SIGN-SEE DETAIL 8' TAPER FLAT CURB 8' TAPER CONCRETE STAIRS W/HANDRAIL 2 RISERS. SEE DETAIL EXISTING POND NWL-908.85 HWL-910.27 3' TAPER 3' TAPER CONCRETE PAVEMENT SEE ARCH. FOR TRASH ENCLOSURE SCREENING LIGHT DUTY BITUMINOUS PAVEMENT-SEE DETAIL HEAVY DUTY BITUMINOUS PAVEMENT-SEE DETAIL RAIN GARDIAN-SEE DETAIL RAIN GARDIAN-SEE DETAIL 4.0'5.0'PATCH BITUMINOUS MATCH EXISTING SECTION PER CITY STANDARD DETAIL REPLACE B612 CURB & GUTTER PER CITY STANDARD DETAIL REPLACE BITUMINOUS TRAIL PER CITY STANDARD DETAIL PARKING SETBACK LINE 5.0' CONCRETE STOOP. SEE ARCHITECTURAL AND/OR STRUCTURAL. 50.0 ' STREET ROW PROPOSED POND EASEMENT BUILDING SETBACK LINE 58.0'45.0'CONCRETE MECHANICAL EQUIPMENT PADS LOCATION 5.8' 15.0 '5.0'NO. Print History Date Project Checked Drawn 18615 TRG JJD OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 NO. Description Date Review Date License No. Date I hereby certify that this plan, specification or report was prepared by me or under my direct supervision and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. Jonathan J. Donovan - PE 44613 Project Lead Drawn By Checked By Loucks Project No.18615 JJD TRG VMA 04-11-22 03-02-22 LOUCKS 7200 Hemlock Lane, Suite 300 Maple Grove, MN 55369 763.424.5505 www.loucksinc.com PLANNING CIVIL ENGINEERING LAND SURVEYING LANDSCAPE ARCHITECTURE ENVIRONMENTAL 01 SITE PLAN REVIEW 03-24-22 02 CITY COMMENTS 04-11-22 N SCALE IN FEET 0 20 40 23 CIVIL LEGENDPAVEMENT TYPES NOTE: SEE PAVEMENT SECTIONS ON SHEET C8.1 FOR TYPE AND DEPTH INFORMATION. LIGHT DUTY BITUMINOUS PAVEMENT CONCRETE SIDEWALK HEAVY DUTY BITUMINOUS PAVEMENT PARKING STALLS REQUIRED = 37 STALLS EXISTING BUILDING = 3900 SF PROPOSED BUILDING = 2850 SF TOTAL BUILDING AREA = 6750 SF = 6750 / 200 = 33.75 + 3 STALLS PROPOSED PARKING STALLS PROVIDED = 37 STALLS 35 - 9'X18' STANDARD STALLS 2 - 8'X18' ADA STALLS OFF-STREET PARKING CALCULATIONS PROPOSED ACCESSIBLE PARKING = 2 STALLS REQUIRED ACCESSIBLE PARKING = 2 STALLS** **REQUIRED MINIMUM NUMBER OF ACCESSIBLE SPACES FOR 26 TO 50 STALLS ACCESSIBLE PARKING SITE NOTES 1. ALL PAVING, CONCRETE CURB, GUTTER AND SIDEWALK SHALL BE FURNISHED AND INSTALLED IN ACCORDANCE WITH THE DETAILS SHOWN PER THE DETAIL SHEET(S) AND STATE/LOCAL JURISDICTION REQUIREMENTS. 2. ACCESSIBLE PARKING AND ACCESSIBLE ROUTES SHALL BE PROVIDED PER CURRENT ADA STANDARDS AND LOCAL/STATE REQUIREMENTS. 3. ALL CURB DIMENSIONS SHOWN ARE TO THE FACE OF CURB UNLESS OTHERWISE NOTED. 4. ALL BUILDING DIMENSIONS ARE TO THE OUTSIDE FACE OF WALL UNLESS OTHERWISE NOTED. 5. TYPICAL FULL SIZED PARKING STALL IS 9' X 18' UNLESS OTHERWISE NOTED. 6. ALL CURB RADII SHALL BE 5.0' UNLESS OTHERWISE NOTED. 7. BITUMINOUS IMPREGNATED FIBER BOARD TO BE PLACED AT FULL DEPTH OF CONCRETE ADJACENT TO EXISTING STRUCTURES AND BEHIND CURB ADJACENT TO DRIVEWAYS AND SIDEWALKS. 8. SEE SITE ELECTRICAL PLAN FOR SITE LIGHTING. 9. SEE EXISTING CONDITIONS/EG RUDD SURVEY FOR BUILDING SETBACK LINE. SIGNAGE AND STRIPING NOTES 1. CONTRACTOR SHALL BE RESPONSIBLE FOR ALL SITE SIGNAGE AND STRIPING AS SHOWN ON THIS PLAN. 2. CONTRACTOR SHALL PAINT ALL ACCESSIBLE STALLS, LOGOS AND CROSS HATCH LOADING AISLES WITH WHITE PAVEMENT MARKING PAINT, 4" IN WIDTH. 3. CONTRACTOR SHALL PAINT ANY/ALL DIRECTIONAL TRAFFIC ARROWS, AS SHOWN, IN WHITE PAINT. 4. ALL SIGNAGE SHALL INCLUDE POST, CONCRETE FOOTING AND STEEL CASING WHERE REQUIRED. 5. ALL SIGNAGE NOT PROTECTED BY CURB, LOCATED IN PARKING LOT OR OTHER PAVED AREAS TO BE PLACED IN STEEL CASING, FILLED WITH CONCRETE AND PAINTED YELLOW. REFER TO DETAIL. 6. ANY/ALL STOP SIGNS TO INCLUDE A 24" WIDE PAINTED STOP BAR IN WHITE PAINT, PLACED AT THE STOP SIGN LOCATION, A MINIMUM OF 4' FROM CROSSWALK IF APPLICABLE. ALL STOP BARS SHALL EXTEND FROM DIRECTIONAL TRANSITION BETWEEN LANES TO CURB. 7. ALL SIGNS TO BE PLACED 12" BEHIND BACK OF CURB UNLESS OTHERWISE NOTED. WARNING: THE CONTRACTOR SHALL BE RESPONSIBLE FOR CALLING FOR LOCATIONS OF ALL EXISTING UTILITIES. THEY SHALL COOPERATE WITH ALL UTILITY COMPANIES IN MAINTAINING THEIR SERVICE AND / OR RELOCATION OF LINES. THE CONTRACTOR SHALL CONTACT GOPHER STATE ONE CALL AT 651-454-0002 AT LEAST 48 HOURS IN ADVANCE FOR THE LOCATIONS OF ALL UNDERGROUND WIRES, CABLES, CONDUITS, PIPES, MANHOLES, VALVES OR OTHER BURIED STRUCTURES BEFORE DIGGING. THE CONTRACTOR SHALL REPAIR OR REPLACE THE ABOVE WHEN DAMAGED DURING CONSTRUCTION AT NO COST TO THE OWNER. Gopher State One Call TOTAL PROPERTY AREA:1.51 AC DISTURBED AREA: 0.80 AC EXISTING IMPERVIOUS AREA: 0.304 AC PROPOSED IMPERVIOUS AREA: 0.614 AC SITE DATA CONCRETE PAVEMENT NOTE: EXISTING CONDITIONS INFORMATION SHOWN IS FROM CERTIFICATE OF SURVEY PREPARED BY E. G. RUD & SONS, DATED JULY 1st, 2019. SITE PLAN C2-1 UP A6.00 1 A6.00 3 A6.01 1 A6.01 2 RESTROOM 103 EXAM 107 SURGERY 116 XRAY 119 TREATMENT 115 DOG WAITING 140 CAT WAITING 102 RECEPTION 101 EXAM 106 EXAM 108 CAT WARD 118 ISOLATION 120 STORAGE 117 EXAM 104 EXAM 105 VESTIBULE 100 COMFORT 109 LAB 114 MECH 122 BOARDING RECEPTION 110 CORRIDOR 111 CORRIDOR 113 CLOSET 112 A6.10 3 A6.10 4 A6.105 6 1 A7.00 1 A7.00 2 A7.00 2 A7.00 A6.11 1 A6.114 5 6 A6.11 7 1 A7.10 2 A7.10 3 A7.10 1 A7.11 2 A7.11 A6.00 2 A6.00 4 3 A7.11 A5.10 1 W5 A6.118 10 W5 W5 W5 W6 2 A5.12 3 A5.12 A5.11 1 A5.112 3 1 2 3 4 E D C 1.1 D.9 3.9 B B.1 0 QQ RR 59' - 0 3/4" 8 A8.00 4 A7.11 W5 W5 W5 W6 A8.00 9 RE-PACK EXTG BATT INSUL. (R-20 MIN) PROVIDE 3/4" TREATED PLYWOOD SHEATHING AT LOCATIONS WHERE STEEL SIDING HAS BEEN REMOVED - SEE DEMO PLAN. TYPICAL PROTECT EXTG SIDING EXAM 139 NOTE: PROVIDE ACRYLIC SEALANT AT ALL SLAB CONTROL JOINTS . SEE STRUCT FOR LOCATIONS. D 1' - 10"A6a B6a A6a LOCATE TREATMENT TOWER AROUND COLUMN. D W BREAK 123WAITING 124 GROOMING 125 CONSULTATION 126 KENNELS 127 CORRIDOR 128 VESTIBULE 129 NIC NIC NIC NIC NIC NIC NIC NIC NIC NIC NIC NIC MILLWORK TO REMAIN MODIFY AS REQ'D C1 C2 C2 C2 C2 C2 C2 C4 C2 C2 C2 C3 C3 C3 C3 C2 C5 C5 C3C1 C6 C6 C6 C6 C7 C9 C9C9C9 C10 C11 C12 C13 C16 C16 C16 C18 C27 C27 C41 6' HIGH WOOD SCREENING FENCE. TIE INTO EXISTING SEE 7 & 8 / A8.01 EXAM 130 STORAGE 134 NIC NIC GROOMING 131 CORRIDOR 136 CORRIDOR 137 NICNIC NIC NIC B3a B6a C1 C17 C15 C3 C3 C3 W1 W2 W3 W2 EX EX EX EX EX EX EX EX C41 C20 C20 C20 CAT ROOM 135 C23 C24 C17 C21 C22 C25 C5 A6.00B 1 A6.00B 2 CONCRETE MECHANICAL PAD GENERAL NOTES - CONSTRUCTION 1. THE BUILDING IS OCCUPIED WITH TENANTS. ALL WORK MUST BE DONE IN AN ORDERLY FASHION SO AS NOT TO INCONVENIENCE THE TENANTS IN ANY WAY. LOUD MUSIC, PROFANITY, AND SMOKING IS PROHIBITED ON THE JOB SITE AND IN THE BUILDINGS. SMOKING AREAS WILL BE DESIGNATED BY THE OWNER. 2. ACCESS TO ALL ENTRIES AND EXITS MUST BE MAINTAINED IN AN ORDERLY AND SAFE MANNER. 3. ALL NEW PARTITIONS TO BE TYPE A3a UNLESS OTHERWISE NOTED. 4. PROVIDE IN-WALL BLOCKING FOR INSTALLATION OF FURNITURE AND EQUIPMENT AS REQUIRED, REFER TO FURNITURE PLAN TO REFERENCE LOCATIONS, COORDINATE FINAL LOCATIONS WITH FURNITURE VENDOR. 5. PROVIDE EXHAUST FAN AND FLOOR DRAIN AT ALL NEW RESTROOMS. 6. NEW PARTITIONS TO ALIGHN WITH EDGE OF EXISTING WINDOW FRAME/SILL OR EXISTING WALLS/COLUMNS UNLESS OTHERWISE DIMENSIONED. 7. PLUMBING CONTRACTOR TO PROVIDE DESIGNER WITH CUT SHEETS FOR FINAL APPROVAL OF ALL FIXTURES PRIOR TO ORDERING. 8. ANY EXPOSED SINK PIPES SHALL BE WRAPPED TO MEET ACCESSIBILITY REQUIREMENTS. 9. ALL NEW WATER SUPPLY PIPING TO BE TYPE 'L' WATER PIPING. 10. MECHANICAL CONTRACTOR TO REVIEW ALL THERMOSTAT LOCATIONS WITH DESIGNER PRIOR TO INSTALLATION. 11. REUSE EXISTING BLINDS AT ALL EXTERIOR WINDOWS. PULL UP BLINDS AND WRAP PRIOR TO CONSTRUCTION. REPAIR OR REPLACE ANY BLINDS NOT IN PROPER WORKING ORDER. NEW BLINDS MANUAL BLINDS BY OWNER. 12. ALL EXISTING EXTERIOR DOORS TO BE RE-KEYED. REMOVE ALL DEAD BOLTS AND LATCHES. ANY EXISTING KNOBS TO BE CHANGED TO ADA - COMPLIANT LEVER HARDWARE. ENSURE THAT EXISTING HARDWARE IS IN GOOD WORKING CONDITION, REPAIR AND REPLACE AS NECESSARY. 3/16" = 1'-0" CONSTRUCTION PLAN - LEVEL 011 Ryan Schroeder NO. Print History Date #50047 Signature : Name : Registration : Project Checked Drawn Project Contact : Phone Number :952-541-9969 I hereby certify that this plan was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota. Ryan Schroeder 21303 LAM RAS OTTER LAKE ANIMAL CARE CENTER CONSTRUCTION PLAN - LEVEL 01 A1.11 OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 LEGEND - CONSTRUCTION EXISTING CONSTRUCTION TO REMAIN EXISTING PARTIAL HEIGHT CONSTRUCTION TO REMAIN NEW FULL HEIGHT CONSTRUCTION - REFER TO PARTITION TYPE NEW PARTIAL HEIGHT CONSTRUCTION - REFER TO PARTITION TYPE NEW CONSTRUCTION - REFER TO PARTITION TYPE NEW RATED CONSTRUCTION TO STUCTURE - REFER TO PARTITION TYPE NEW INSULATED CONSTRUCTION - REFER TO PARTITION TYPE PLAN NOTES NO.DESCRIPTION C1 PROVIDE FLOOR DRAIN, LOCATION APPROXIMATE, TO BE COORDINATED IN FIELD WITH DESIGN/BUILD PLUMBING CONTRACTOR. SLOPE SLAB AS REQUIRED. C2 NEW MILLWORK BY OWNER, PROVIDE BLOCKING AS REQUIRED. SEE ELEVATIONS & SECTIONS FOR DETAILED ELEVATIONS. C3 NEW MANUALLY OPERATED ROLLER SHADES BY OWNER C4 NEW FRONT DESK. SEE DETAILS ON SHEET A6.10 C5 PROVIDE WAITING AREA BENCHING, DESIGN TO BE DETERMINED WITH OWNER, DETAILS TO FOLLOW. C6 INSTALL OWNER PROVIDED NEW FOLD DOWN EXAM TABLES IN EXAM ROOMS. PROVIDE (QTY 2) 2X10'S STACK ON END, IN WALL, FOR SUPPORT BLOCKING. COORDINATION LOCATION OF BLOCKING WITH TABLE. C7 STEEL COLUMN - SEE STRUCTURAL PLANS FOR DETAILS. PROVIDE 1 LAYER OF 5/8" TYPE 'X' GYP BD C9 PATCH AND REPAIR NEW OPENING, PROVIDE 5/8" GYP BD ON FRAMING W/ EXP JOINT @ NEW JAMB OPENINGS AS REQUIRED. C10 INFILL EXISTING WINDOW OPENING, SET TO BE DEMOLISHED, TO MATCH EXISTING ADJACENT WALL CONDITION. PATCH AND REPAIR WALL AS REQUIRED. C11 RECOVERY KENNELS BY OWNER C12 SCALE BY OWNER, PROVIDE POWER & DATA PER REQUIREMENTS BY SCALE MANUFACTURER. C13 FURNISH AND INSTALL JANITORIAL MOP SINK & FAUCET W/ HOSE OCNNECTIONS. C15 NEW CORNER GAS FIREPLACE C16 SINK BY DESIGN/BUILD PLUMBING CONTRACTOR - VERIFY SPECIFICATION & USE W/ OWNER C17 NEW PASS-THROUGH WINDOW WITH GLASS SHELVING C18 PROVIDE WATER COOLER, SEE "GENERAL RESTROOM NOTES" FOR DESIGN INTENT SPEC. C20 NEW FOOTING, COLUMN AND FLOOR SURFACE FLUSH WIH EXISTING CONCRETE SUBSTRATE. SEE STRUTURAL. PATCH EXISTING WALLS AS REQUIRED. C21 NEW CONCRETE FLOOR FLUSH WITH EXISTING. PATCH VAPOR BARRIER AS REQUIRED C22 RELOCATE X-RAY MACHINE BY OWNERS CONSULTANT. GC TO RELOCATE UTILITIES AS REQUIRED. VERIFY WITH LAKE SUPERIOR X-RAY C23 INFILL EXISTING DOOR OPENING FLUSH WITH ADJACENT FINISHES. C24 GC TO PROVIDE IN-WALL WASHER AND DRYER BOXES/UTILITIES. RELOCATE WASHER AND DRYER C25 PATCH WALL AND BASE. C27 PROVIDE STAINLESS STEEL SINK W/ HIGH NECK FAUCET. PROVIDE BRADLEY 819-2009 FAUCET MOUNTED EYE WASH STATION. C41 PROVIDE 1" ISOLATION JOINT AT NEW WALL CONNECTION TO EXISTING STRUCTURE NO. Description Date N SITE PLAN REVIEW 03-24-22 SITE PLAN REVIEW - UPDATE 04-11-22 DN A6.00 1 A6.00 3 1 A7.00 1 A7.00 2 A7.00 2 A7.00 1 A7.10 2 A7.10 3 A7.10 1 A7.11 2 A7.11 A6.00 2 A6.00 4 3 A7.11 OPEN OFFICE / LOUNGE 200 - OPEN TO BELOW - W7 W10W10W10 A5.12 1 A3gA3g 42" A3g 42" A3g 1 2 3 4 E D C 1.1 D.9 3.9 B B.1 0 A3g 42" PLENUM SPACE * WALLS SHOWN FROM LEVEL 01 W9 W9 W9 W8 W10 PROVIDE HARD WOOD CAP STAIN - TYPICAL - SEE 3/A5.12 THESE PARTITIONS ARE TO UNDERSIDE OF DECK ABOVE. PROVIDE PLUMBING ROUGH IN FOR FUTURE SHOWER, TOILET & LAV.12' - 0"OFFICE 203 STORAGE 201 W1 W2 W2 W3 OPEN TO BELOW A3a A3b A3b A3a A3a B3a B3a A6.00B 1 A6.00B 2 GENERAL NOTES - CONSTRUCTION 1. THE BUILDING IS OCCUPIED WITH TENANTS. ALL WORK MUST BE DONE IN AN ORDERLY FASHION SO AS NOT TO INCONVENIENCE THE TENANTS IN ANY WAY. LOUD MUSIC, PROFANITY, AND SMOKING IS PROHIBITED ON THE JOB SITE AND IN THE BUILDINGS. SMOKING AREAS WILL BE DESIGNATED BY THE OWNER. 2. ACCESS TO ALL ENTRIES AND EXITS MUST BE MAINTAINED IN AN ORDERLY AND SAFE MANNER. 3. ALL NEW PARTITIONS TO BE TYPE A3a UNLESS OTHERWISE NOTED. 4. PROVIDE IN-WALL BLOCKING FOR INSTALLATION OF FURNITURE AND EQUIPMENT AS REQUIRED, REFER TO FURNITURE PLAN TO REFERENCE LOCATIONS, COORDINATE FINAL LOCATIONS WITH FURNITURE VENDOR. 5. PROVIDE EXHAUST FAN AND FLOOR DRAIN AT ALL NEW RESTROOMS. 6. NEW PARTITIONS TO ALIGHN WITH EDGE OF EXISTING WINDOW FRAME/SILL OR EXISTING WALLS/COLUMNS UNLESS OTHERWISE DIMENSIONED. 7. PLUMBING CONTRACTOR TO PROVIDE DESIGNER WITH CUT SHEETS FOR FINAL APPROVAL OF ALL FIXTURES PRIOR TO ORDERING. 8. ANY EXPOSED SINK PIPES SHALL BE WRAPPED TO MEET ACCESSIBILITY REQUIREMENTS. 9. ALL NEW WATER SUPPLY PIPING TO BE TYPE 'L' WATER PIPING. 10. MECHANICAL CONTRACTOR TO REVIEW ALL THERMOSTAT LOCATIONS WITH DESIGNER PRIOR TO INSTALLATION. 11. REUSE EXISTING BLINDS AT ALL EXTERIOR WINDOWS. PULL UP BLINDS AND WRAP PRIOR TO CONSTRUCTION. REPAIR OR REPLACE ANY BLINDS NOT IN PROPER WORKING ORDER. NEW BLINDS MANUAL BLINDS BY OWNER. 12. ALL EXISTING EXTERIOR DOORS TO BE RE-KEYED. REMOVE ALL DEAD BOLTS AND LATCHES. ANY EXISTING KNOBS TO BE CHANGED TO ADA - COMPLIANT LEVER HARDWARE. ENSURE THAT EXISTING HARDWARE IS IN GOOD WORKING CONDITION, REPAIR AND REPLACE AS NECESSARY. 3/16" = 1'-0" CONSTRUCTION PLAN - LEVEL 021 Ryan Schroeder NO. Print History Date #50047 Signature : Name : Registration : Project Checked Drawn Project Contact : Phone Number :952-541-9969 I hereby certify that this plan was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota. Ryan Schroeder 21303 LAM RAS OTTER LAKE ANIMAL CARE CENTER CONSTRUCTION PLAN - MEZZANINE A1.12 OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 LEGEND - CONSTRUCTION EXISTING CONSTRUCTION TO REMAIN EXISTING PARTIAL HEIGHT CONSTRUCTION TO REMAIN NEW FULL HEIGHT CONSTRUCTION - REFER TO PARTITION TYPE NEW PARTIAL HEIGHT CONSTRUCTION - REFER TO PARTITION TYPE NEW CONSTRUCTION - REFER TO PARTITION TYPE NEW RATED CONSTRUCTION TO STUCTURE - REFER TO PARTITION TYPE NEW INSULATED CONSTRUCTION - REFER TO PARTITION TYPE NO. Description Date N SITE PLAN REVIEW 03-24-22 SITE PLAN REVIEW - UPDATE 04-11-22 LEVEL 01 100' - 0" MEZZANINE 112' - 0" HEADER 107' - 6" T.O. SILL 102' - 8" W7 W5 ROOF LOW POINT 119' - 9 7/8" ROOF HIGH POINT 127' - 10 3/8" VESTIBULE HEADER 118' - 0" W5 W8 W5 W5 W1 C61 C50 C61C57 C51 C52 C53 C53 C54 C62 C62 C63 C50 C57 C65C52 C66 W1 EX EX EX EX C66 C69 LEVEL 01 100' - 0" MEZZANINE 112' - 0" HEADER 107' - 6" T.O. SILL 102' - 8" 8' - 0 7/8" VESTIBULE HEADER 118' - 0" C57 C51 C53 C54 C51 LEVEL 01 100' - 0" ROOF PEAK 127' - 11" MEZZANINE 112' - 0" HEADER 107' - 6" T.O. SILL 102' - 8" 8' - 0 7/8" VESTIBULE HEADER 118' - 0" C53 C51 LEVEL 01 100' - 0" ROOF PEAK 127' - 11" MEZZANINE 112' - 0" HEADER 107' - 6" T.O. SILL 102' - 8" W5W5W5 W9 W9 W9 MEZZ HEADER 115' - 0" VESTIBULE HEADER 118' - 0" C63 C67 C68 C67 C50 C62 C51 C53 C50 C64 EXEX EXEX C61 C61 W2 W2 C69 FBR FACEBRICK MFR: ENDICOTT CLAY PRODUCTS PROD: MANGANESE IRONSPOT VELOUR MODULAR CONTACT:METRO BRICK INC. 952-417-0200 STN1 STONE NOTES: MATCH EXISTING STONE ON FRONT ELEVATION LEGEND - EXTERIOR FINISH SD1 SIDING MFR: JAMESHARDIE PROD: HARDIE PLANK LAP SIDING COLOR: ARCTIC WHITE NOTES: STATEMENT COLLECTION TR1 TRIM MFR: JAMESHARDIE PROD: HARDIE TRIM COLOR: LIGHT MIST NOTES: STATEMENT COLLECTION SD2 SIDING MFR: JAMESHARDIE PROD: HARDIE PLANK LAP SIDING COLOR: EVENING BLUE NOTES: STATEMENT COLLECTION AL1 ALUMINUM STOREFRONT MFR: KAWNEER PROD: T451 COLOR: CLEAR ANODIZED WT1 STONE WATERTABLE MFR: CUSTOM CAST STONE PROD: BNDCH-42 COLOR: NATURAL RF1 ROOFING MFR: MBCI PROD: SUPERLOCK CONCEALED FASTENER STANDING SEAM METAL ROOFING COLOR: CHARCOAL GRAY SIZE: 16" LF1 LIGHT FIXTURE MFR: ET2 ALUMILUX LINE PROD: E41343 COLOR: DARK BRONZE PT1 PAINT MFR: SHERWIN WILLIAMS COLOR: TO MATCH FASCIA COLOR RF1 ROOFING MFR: MBCI PROD: SUPERLOCK CONCEALED FASTENER STANDING SEAM METAL ROOFING COLOR: CHARCOAL GRAY SIZE: 16" PT2 PAINT MFR: SHERWIN WILLIAMS COLOR: PAINT TO MATCH SD1 3/16" = 1'-0" EXTERIOR ELEVATION - WEST1 3/16" = 1'-0" EXTERIOR ELEVATION - SOUTH VESTIBULE2 3/16" = 1'-0" EXTERIOR ELEVATION - NORTH VESTIBULE43/16" = 1'-0" EXTERIOR ELEVATION - NORTH3 Ryan Schroeder NO. Print History Date #50047 Signature : Name : Registration : Project Checked Drawn Project Contact : Phone Number :952-541-9969 I hereby certify that this plan was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota. Ryan Schroeder 21303 LAM RAS OTTER LAKE ANIMAL CARE CENTER EXTERIOR ELEVATIONS A6.00 OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 PLAN NOTES NO.DESCRIPTION C50 PRE-FINISHED 6" CONTINUOUS HORIZONTAL LAP SIDING, SD1 C51 PRE-FINISHED 6" CONTINUOUS HORIZONTAL LHP SIDING, C52 FACE BRICK C53 STONE TO MATCH EXISTING C54 NEW PRECAST SILL C57 PRE-FINISHED METAL FASCIA & DRIP, PAINTED TO MATCH ROOF C61 4" H PRE-FINISHED SNOW/ICE SHIELD TO RUN ENTIRE LENGTH OF ROOF. COLOR TO MATCH ROOF C62 ANODIZED ALUMINUM DOORS / WINDOWS C63 EXISTING WINDOW TO REMAIN. PREP AND PAINT C64 EXISTING METAL FACIA. PREP AND PAINT C65 EXISTING HOLLOW METAL DOOR. PREP AND PAINT C66 EXISTING STONE TO REMAIN C67 PREFINISHED METAL ROOFING C68 EXISTING METAL SIDING. PREP AND PAINT WEST ELEVATION MATERIALS TOTAL SF OF WEST FACADE: 1,650 SF. MATERIAL SF % OF FACADE NEW CEMENT SIDING - DARK 210 12.7 GLASS / DOORS 447 27.1 BRICK / PRECAST SILLS 302 18.3 NEW CEMENT SIDING - LIGHT 193 11.7 EXISTING SIDING 297 18.0 STONE 201 12.2 NORTH ELEVATION MATERIALS TOTAL SF OF NORTH FACADE: 1,519 SF. MATERIAL SF % OF FACADE NEW CEMENT SIDING - DARK 340 22.4 GLASS / DOORS 210 13.8 BRICK / PRECAST SILLS 302 19.9 NEW CEMENT SIDING - LIGHT 318 20.9 EXISTING SIDING 249 16.4 STONE 100 6.6 NO. Description Date SITE PLAN REVIEW 03-24-22 SITE PLAN REVIEW - UPDATE 04-11-22 LEVEL 01 100' - 0" MEZZANINE 112' - 0" HEADER 107' - 6" T.O. TREATMENT SILL 103' - 6" C48 C49 C61 C57 C50 C51 C54 C52 C65 C64 C68 W6 W6 C69 LEVEL 01 100' - 0" ROOF PEAK 127' - 11" MEZZANINE 112' - 0" HEADER 107' - 6" T.O. SILL 102' - 8" MEZZ HEADER 115' - 0" CLERESTORY 118' - 6" CLERESTORY HEADER 121' - 6" VESTIBULE HEADER 118' - 0" C51 C53 C62 C68 C63 C64 C67 C62 C50 C57 W10 W10 W10 W10 EX EX EX EX EX W2 W2 FBR FACEBRICK MFR: ENDICOTT CLAY PRODUCTS PROD: MANGANESE IRONSPOT VELOUR MODULAR CONTACT:METRO BRICK INC. 952-417-0200 STN1 STONE NOTES: MATCH EXISTING STONE ON FRONT ELEVATION LEGEND - EXTERIOR FINISH SD1 SIDING MFR: JAMESHARDIE PROD: HARDIE PLANK LAP SIDING COLOR: ARCTIC WHITE NOTES: STATEMENT COLLECTION TR1 TRIM MFR: JAMESHARDIE PROD: HARDIE TRIM COLOR: LIGHT MIST NOTES: STATEMENT COLLECTION SD2 SIDING MFR: JAMESHARDIE PROD: HARDIE PLANK LAP SIDING COLOR: EVENING BLUE NOTES: STATEMENT COLLECTION AL1 ALUMINUM STOREFRONT MFR: KAWNEER PROD: T451 COLOR: CLEAR ANODIZED WT1 STONE WATERTABLE MFR: CUSTOM CAST STONE PROD: BNDCH-42 COLOR: NATURAL RF1 ROOFING MFR: MBCI PROD: SUPERLOCK CONCEALED FASTENER STANDING SEAM METAL ROOFING COLOR: CHARCOAL GRAY SIZE: 16" LF1 LIGHT FIXTURE MFR: ET2 ALUMILUX LINE PROD: E41343 COLOR: DARK BRONZE PT1 PAINT MFR: SHERWIN WILLIAMS COLOR: TO MATCH FASCIA COLOR RF1 ROOFING MFR: MBCI PROD: SUPERLOCK CONCEALED FASTENER STANDING SEAM METAL ROOFING COLOR: CHARCOAL GRAY SIZE: 16" PT2 PAINT MFR: SHERWIN WILLIAMS COLOR: PAINT TO MATCH SD1 3/16" = 1'-0" EXTERIOR ELEVATION - EAST1 3/16" = 1'-0" EXTERIOR ELEVATION - SOUTH2 Ryan Schroeder NO. Print History Date #50047 Signature : Name : Registration : Project Checked Drawn Project Contact : Phone Number :952-541-9969 I hereby certify that this plan was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota. Ryan Schroeder 21303 LAM RAS OTTER LAKE ANIMAL CARE CENTER EXTERIOR ELEVATIONS A6.01 OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 PLAN NOTES NO.DESCRIPTION C48 NEW CRICKET ROOF STRUCTURE TO BE WOOD STRUCTURAL TRUSSES W/ 5/8" O.S.B. SHEATHING.- SEE STRUCTURAL C49 STANDING SEAM ROOF W/ ROOFING FELTS & SLIP SHEET, MFR: TBD, PRODUCT: TBD, TO BE INSTALLED OVER ROOF STRUCTURE. C50 PRE-FINISHED 6" CONTINUOUS HORIZONTAL LAP SIDING, SD1 C51 PRE-FINISHED 6" CONTINUOUS HORIZONTAL LHP SIDING, C52 FACE BRICK C53 STONE TO MATCH EXISTING C54 NEW PRECAST SILL C57 PRE-FINISHED METAL FASCIA & DRIP, PAINTED TO MATCH ROOF C61 4" H PRE-FINISHED SNOW/ICE SHIELD TO RUN ENTIRE LENGTH OF ROOF. COLOR TO MATCH ROOF C62 ANODIZED ALUMINUM DOORS / WINDOWS C63 EXISTING WINDOW TO REMAIN. PREP AND PAINT C65 EXISTING HOLLOW METAL DOOR. PREP AND PAINT C68 EXISTING METAL SIDING. PREP AND PAINT C69 BELTLINE TRIM, TR1 EAST ELEVATION MATERIALS TOTAL SF OF EAST FACADE: 1,625 SF. MATERIAL SF % OF FACADE NEW CEMENT SIDING - DARK 266 16.4 GLASS / DOORS 103 6.3 BRICK / PRECAST SILLS 262 16.1 NEW CEMENT SIDING - LIGHT 393 24.2 EXISTING SIDING 601 37.0 STONE 0 0 SOUTH ELEVATION MATERIALS TOTAL SF OF SOUTH FACADE: 1,395 SF. MATERIAL SF % OF FACADE NEW CEMENT SIDING - DARK 38 2.7 GLASS / DOORS 153 11.0 BRICK / PRECAST SILLS 0 0 NEW CEMENT SIDING - LIGHT 371 26.6 EXISTING SIDING 765 54.8 STONE 68 4.9 NO. Description Date SITE PLAN REVIEW 03-24-22 SITE PLAN REVIEW - UPDATE 04-11-22 A8.01 5 A8.01 6 9' - 10"1' - 3"7' - 0"1' - 3"9' - 10" A8.01 7 2' - 9"2' - 10"2' - 9"2' - 9"2' - 10"2' - 9"5' - 10"CL1' - 0"CL5"CL 1' - 0"CL5"CONC BOLLARD CONC BOLLARD 11 A8.01 CONC SLAB - SEE STRUCT FREE DRAINING FILL - SEE STRUCT. FROST WALL - SEE STRUCT. 2" RIGID INSULATION DOOR AND FRAME SIDEWALK OR BITUMINOUS - SEE CIVIL SEE FOUNDATION PLAN A8.01 3 SLOPE SEALANT & BACKER ROD OVER 1/2" COMPRESSIBLE JOINT MATERIAL CONC. FOOTING SEE STRUCT. CONC. SLAB - SEE SECTIONS SEALANT, DO NOT OBSTRUCT WEEPS ALUM. CLOSURE BY CURTAIN WALL / STOREFRONT SHIM. BACKER ROD & SEALANT EACH SIDE. 1 1/2" INSUL. #6 BEHIND ALUM. CLOSURE CLIPS AS REQUIRED BY CURTAIN WALL / STOREFRONT POURABLE SEALANT & BACKER ROD 2" RIGID INSUL. CONC. WALL SEE STRUCT 4" REINF. CONC SLAB SEE STRUCT VAPOR BARRIER 6" GRANULAR FILL SEE STRUCT GRID LINES - SEE PLAN SEE STRUCT 6" 3" REINF. CONC WALK SEE CIVIL SLOPE SCHEDULED DOOR & FRAME ALUM. THRESHOLD W/ THERMAL BREAK SET IN WATER CUT-OFF MASTIC REINF. CONC. STOOP SEE STRUCT. 2" RIGID INSUL. CONC. WALL - SEE STRUCTURAL TREATED 2X & 1 1/2" RIGID INSULATION 4" REINF. CONC SLAB SEE STRUCT VAPOR BARRIER 6" GRANULAR FILL SEE STRUCT SILL FLASHING - EXTEND FLASHING 24" BELOW GRADE AND TO THRESHOLD. 4" X 4" TREATED POST 2" X 4" TREATED HORIZONTAL FRAMING @ 24" O.C. 1" X 6" TREATED VERTICALS 1"1"1"1" 8 A8.01 1' - 11 7/8"4" X 4" TREATED POST 2" X 4" TREATED HORIZONTAL FRAMING @ 24" O.C. 1" X 6" TREATED VERTICALS TOP OF FRAMING 6' -8" @ TRASH 6' -0" @ FENCE A8.01 8 T.O. FRAMING 6'-8" FINISH GRADE 0'-0" 8 A8.01 3/4"4' - 0"PIPE FILLED W/ CONCRETE. FORM DOME OF EXPOSED CONCRETE CAP 6" I.D. STEEL PIPE W/ 16"X16"X3/4" STEEL BASE FLANGE - FIELD PAINT SET BOLLARD ASSEMBLY WITH 3/4" THICK NON-SHRINK GROUT LEVELING BED AND 4-1/2" EXPANSION BOLTS FLOOR/SLAB LINE 4' - 0"4' - 0"PIPE FILLED W/ CONCRETE. FORM DOME OF EXPOSED CONCRETE CAP 7'-6" LONG X 6" I.D. STEEL PIPE FILLED W/ CONCRETE GRADE LINE 18" TUBE FORM 6" MIN OF CONC. COVER FORM "WASH" AT EXPOSED CONCRETE SURFACE 4" 1/4" +/- PANEL WIDTH 1" 4" X 4" STEEL POST WITH WELDED TOP CAP BARREL HINGES WELDED TO POST AND GATE FRAME 2 1/2" X 2 1/2" X 1/4" ALL WELDED STEEL ANGLE TRIM FRAME 2"x1/8" STEEL STRAP DIAGONAL BRACING WELDED TO FRAME LOCKABLE GATE LATCH LADDER TYPE SUB-FRAME OF 2 1/2" x 2 1/2" x 1/4" ANGLE AT (3) EQUAL SPACES OF 6'-8" HIGH GATE. 1x6 TREATED PICKETS OVER TREATED 2x BLOCKING 3" REINFORCED CONCRETE SLAB ON GRADE (SEE STRUCT.) REINFORCED CONCRETE FOUNDATION BEYOND FOR STEEL TUBE POST (SEE STRUCT.) SAND BASE THICKNESS VARIES PER SOIL CONDITIONS PAVING 1"3"6' - 8"TOP OF SLAB AT BACK OF ENCLOSURE 1x6 TREATED PICKETS OVER TREATED 2x BLOCKING 4" SQUARE STEEL TUBE POST BEYOND 1x6 VERTICAL WOOD PICKETS ON METAL FRAME. PAINT TO MATCH SD1 1" X 6" TREATED VERTICALS TOP OF FENCE6' - 0"1/2" = 1'-0" TRASH ENCLOSURE PLAN4 3/4" = 1'-0" STOOP DETAIL1 1 1/2" = 1'-0" EXTERIOR SILL2 1 1/2" = 1'-0" THRESHOLD3 3" = 1'-0" WOOD FENCE / SCREEN WALL ENLARGED7 1" = 1'-0" SECTION @ WOOD FENCE / SCREEN WALL8 1/2" = 1'-0" TRASH ENCLOSURE5 1/2" = 1'-0" TRASH ENCLOSURE6 1/2" = 1'-0" BALLARD DETAILS9 1 1/2" = 1'-0" TRASH ENCLOSURE GATE DETAIL10 1/2" = 1'-0" TRASH ENCLOSURE SECTION11 Ryan Schroeder NO. Print History Date #50047 Signature : Name : Registration : Project Checked Drawn Project Contact : Phone Number :952-541-9969 I hereby certify that this plan was prepared by me or under my direct supervision and that I am a duly licensed architect under the laws of the State of Minnesota. P1 BID/ PERMIT 04-07-22 Ryan Schroeder 21303 LAM RAS OTTER LAKE ANIMAL CARE CENTER DETAILS A8.01 OTTER LAKE ANIMAL CARE CENTER 6848 OTTER LAKE RD, HUGO, MN 55038 NO. Description DateNOT USED1/2" = 1'-0" FENCE ELEVATION12 EXTERIOR FINISHES OTTERLAKEANIMALHOSPITAL FBR SD1 STN1 MANGANESE IRONSPOTSTONE - MATCH EXISTING CEMENT SIDING - ARCTIC WHITERF1METAL ROOFING - CHARCOAL GRAY SD2CEMENT SIDING - EVENING BLUE 1 CITY OF LINO LAKES RESOLUTION NO. 22-58 APPROVING CONDITIONAL USE PERMIT AMENDMENT FOR OTTER LAKE ANIMAL CARE CENTER (6848 OTTER LAKE ROAD) WHEREAS, on September 9, 2019 the City Council passed Resolution No. 19-110 approving a conditional use permit amendment for Otter Lake Animal Care Center located at 6848 Otter Lake Road; and WHEREAS, per City Code Section 1007.016(2)(k), if construction has not begun within one (1) year after the date of the conditional use permit, the permit is void; and WHEREAS, construction did not begin within one (1) year; therefore, the conditional use permit and Resolution No. 19-110 are void; and WHEREAS, on April 13, 2022 the City received a complete land use application for a conditional use permit amendment for Otter Lake Animal Care Center located at 6848 Otter Lake Road and hereafter referred to as “Development”; and WHEREAS, the property is zoned LI, Light Industrial and allows for veterinary hospitals with a conditional use permit; and WHEREAS, any change involving a structural enlargement of the facility requires an amendment to the conditional use permit; and WHEREAS, the legal description of the subject property is as follows: That part of the South Half of the Northwest Quarter of the Southwest Quarter of the Southeast Quarter of Section 24, Township 31, Range 22 and the North 65 feet of the Southwest Quarter of the Southwest Quarter of the Southeast Quarter of Section 24, Township 31, Range 22, Anoka County, Minnesota, described as follows: Beginning at a point 33 feet east and 800.77 feet north of the South Quarter corner, Section 24, Township 31, Range 22; thence east a distance of 325 feet; thence south a distance of 203 feet; thence west a distance of 325 feet; thence north a distance of 203 feet, more or less, to the point of beginning, except road, subject to easements of record; and WHEREAS, City staff has completed a review of the land use application based on the following plans: • Plan Set prepared by Planforce dated April 11, 2022 • Certificate of Survey and Easement Sketch & Description prepared by EG Rud & Sons, Inc. revised April 8, 2022 2 • Wetland Delineation Report prepared by Jacobson Environmental, PLLC dated November 12, 2018 • Hydrology Report prepared by Loucks revised February 21, 2022 • Operations & Maintenance Plan prepared by Loucks dated April 11, 2022 • Geotechnical Evaluation Report prepared by Braun Intertec Corporation dated January 11, 2019; and WHEREAS, a public hearing was held before the Planning & Zoning Board on May 11, 2022, and the Board recommended approval of the conditional use permit amendment with a 6-0 vote. NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following findings: FINDINGS OF FACT 1. The proposed development application has been found to be consistent with the policies and recommendations of the Lino Lakes Comprehensive Plan including: a. Land Use Plan. b. Transportation Plan. c. Utility (Sewer and Water) Plans. d. Local Water Management Plan. e. Capital Improvement Plan. f. Policy Plan. g. Natural Environment Plan. The proposed veterinary hospital addition and parking lot expansion are consistent with the Land Use, Utility, Local Water Management, Capital Improvement, Policy and Natural Environmental Plans and recommendations of the comprehensive plan as detailed in this staff report. 2. The proposed development application is compatible with present and future land uses of the area. The proposed veterinary hospital addition and parking lot expansion are compatible with present and future land uses. The subject site and adjacent parcels are guided and zoned for industrial use. A veterinary hospital is consistent the industrial land uses. 3. The proposed development application conforms to performance standards herein and other applicable City Codes. 3 A Site and Building Plan Review has been completed and the proposed veterinary hospital addition and parking lot expansion meet zoning performance standards with conditions listed in this staff report. 4. Traffic generated by a proposed development application is within the capabilities of the City when: a. If the existing level of service (LOS) outside of the proposed subdivision is A or B, traffic generated by a proposed subdivision will not degrade the level of service more than one grade. b. If the existing LOS outside of the proposed subdivision is C, traffic generated by a proposed subdivision will not degrade the level of service below C. c. If the existing LOS outside of the proposed subdivision is D, traffic generated by a proposed subdivision will not degrade the level of service below D. d. The existing LOS must be D or better for all streets and intersections providing access to the subdivision. If the existing level of service is E or F, the subdivision developer must provide, as part of the proposed project, improvements needed to ensure a level of service D or better. e. Existing roads and intersections providing access to the subdivision must have the structural capacity to accommodate projected traffic from the proposed subdivision or the developer will pay to correct any structural deficiencies. f. The traffic generated from a proposed subdivision shall not require City street improvements that are inconsistent with the Lino Lakes Capital Improvement Plan. However, the City may, at its discretion, consider developer-financed improvements to correct any street deficiencies. g. The LOS requirements in paragraphs a. to d. above do not apply to the I- 35W/Lake Drive or I-35E/Main St. interchanges. At City discretion, interchange impacts must be evaluated in conjunction with Anoka County and the Minnesota Dept. of Transportation, and a plan must be prepared to determine improvements needed to resolve deficiencies. This plan must determine traffic generated by the subdivision project, how this traffic contributes to the total traffic, and the time frame of the improvements. The plan also must examine financing options, including project contribution and cost sharing among other jurisdictions and other properties, that contribute to traffic at the interchange. h. The City does not relinquish any rights of local determination. The proposed veterinary hospital addition and parking lot expansion do not change the level of service along CR 84 (Otter Lake Road). The road is a Major Collector Road and is capable of handling the additional traffic volume proposed by the building addition. 4 5. The proposed development shall be served with adequate and safe water supply. The proposed veterinary hospital addition will connect to an adequate and safe municipal water supply. 6. The proposed development shall be served with an adequate and safe sanitary sewer system. The proposed veterinary hospital addition will be served by an adequate and safe municipal sanitary sewer system. 7. The proposed development shall not result in the premature expenditures of City funds on capital improvements necessary to accommodate the proposed development. No City funds are being expended on this project. 8. The proposed development will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons, property, or the general welfare because of excessive production of traffic, noise, smoke, fumes, glare, or odors. The proposed veterinary hospital addition and parking lot expansion are allowed uses within the LI, Light Industrial Districts with an approved conditional use permit. The project will not generate excessive traffic, noise, smoke, fumes, glare or odors. 9. The proposed development will not result in the destruction, loss, or damage of a natural, scenic or historic feature of major importance. There are no natural, scenic or historic features on the existing site. BE IT FURTHER RESOLVED by The City Council of Lino Lakes in addition to the administrative requirements of a conditional use permit, the following specific performance standards of Section 1007.120(9)(f) are also being met: (f) Veterinary Hospitals provided that: 1. All areas in which animals are confined are located indoors and are properly soundproofed from adjacent properties. Per the 1996 CUP Amendment approved on December 16, 1996, the boarding for up to 100 animals is allowed on the site. The 1996 CUP also allows for outdoor kennels. The existing outdoor kennels are located in the rear yard but they are rarely used. The area is screened by an 8 foot wood privacy fence. There are no changes proposed to the indoor or outdoor kennel area or privacy fence. The 1996 CUP is still valid and the outdoor kennel/boarding area may continue to operate but not expand. 5 Currently, animals are boarded in the inside kennel. All walls are insulated for sound. 2. Animal carcasses are properly disposed of in a manner not utilizing on-site garbage facilities or incineration and the carcasses are properly refrigerated during periods prior to disposal. Animal carcasses are frozen until picked up by a cremation service. 3. An indoor animal kennel is permitted as a use accessory to the veterinary hospital provided that: a. The number of animals boarded shall not exceed forty (40). The average number of boarded animals is 20 and does not exceed 40. The 1996 CUP Amendment allows for up to 100 animals to be boarded on site. b. An enclosed indoor or exterior exercise area shall be provided to accommodate the periodic exercising of animals boarded at the kennel. Exterior exercise areas shall be limited to a maximum of twenty-five (25) percent of the gross floor area of the principal use. The existing outdoor run area 2,750 sf (70% of gross floor area) and will not be changed. The outdoor run area after the building addition will remain 2,750 sf. (41% of gross floor area). The outside run area is surrounded by privacy wood fencing. The chain-link fenced area is rarely used for larger animals and training. The existing outdoor exercise area was approved as part of the original and amended conditional use permit and does not require modifications. c. A ventilation system shall be designed so that no odors or organisms will spread between wards or to the outside air and will be capable of completely exchanging internal air at a rate of at least twice per hour. Air temperature must be maintained between 60 and 75 degrees Fahrenheit. Indoor areas have controlled and maintained air quality and temperature controls. d. A room separate from the kennel area shall be provided of sufficient size to adequately separate animals that are sick or injured from healthy animals. Isolation areas are provided for sick or infectious animals. e. Indoor animal kennel floors and walls shall be made of non-porous materials or sealed concrete to make it non-porous. Floors have a non-porous epoxy coating. Wall finish is epoxy paint. 6 f. Animal wastes shall be flushed down an existing sanitary sewer system or enclosed in a container of sufficient construction to eliminate odors and organisms and shall be properly disposed of at least once a day. Animal waste is currently flushed down the City sewer. 4. The appropriate license is obtained from the City and the conditions of Chapter 503 relating to the keeping of animals are satisfactorily met. Existing conditional use permits are on file with the City. Conditions of Chapter 503 have been met. 5. All State Health Department and Minnesota Pollution Control Agency requirements for such facilities are met. Permits/licenses are on record with the State. The applicant shall obtain any necessary permits from other agencies as required. BE IT FURTHER RESOLVED by The City Council of the City of Lino Lakes hereby approves the conditional use permit amendment for veterinary hospitals for Otter Lake Animal Care Center located at 6848 Otter Lake Road subject to the following conditions: 1. The conditions of the original 1986 Conditional Use Permit and amended 1996 Conditional Use Permit are still in effect. 2. Resolution No. 19-110 and Resolution No. 19-111 are void. 3. A Site Improvement Performance Agreement shall be approved by City Council and executed. 4. A Permanent Drainage, Utility and Roadway Easement along CR 84 (Otter Lake Road) shall be recorded. 5. A separate drainage and utility easement extending ten (10) feet from the HWL of the north stormwater pond shall be recorded. 6. A separate drainage and utility easement extending ten (10) feet from the delineated south wetland boundary shall be drafted and be recorded over the portion of the wetland that is located on the subject site. 7. The private well shall be properly removed and capped. 8. A RCWD permit is required. BE IT FURTHER RESOLVED by the City Council of the City of Lino Lakes hereby approves the conditional use permit amendment subject to the following requirements being addressed prior to issuance of a building permit: 1. All comments from the City Engineer letter dated May 4, 2022 shall be addressed. 2. All comments from the Environmental Coordinator letter dated May 4, 2022 shall be addressed. 3. A Permanent Drainage, Utility and Roadway Easement along CR 84 (Otter Lake Road) shall be drafted by the applicant for City review and recorded. 7 4. A separate drainage and utility easement extending ten (10) feet from the HWL of the north stormwater pond shall be drafted by the applicant for City review and recorded. 5. A separate drainage and utility easement extending ten (10) feet from the delineated wetland boundary shall be drafted by the applicant for City review and recorded over the portion of the wetland that is located on the subject site. 6. All plan sheets shall reference Lino Lakes, MN 55038, not Hugo, MN 55038. 7. Sheet C2.1, Site Plan and Sheet A1.11, Construction Plan: a. The location of mechanical equipment pads shall be consistent. Please revise plans accordingly. 8. Sheet A8.01, Details: a. The fence and gate color and material details shall be provided. 9. Sheet E6.1, Photometric Plan: a. The property line along CR 84 (Otter Lake Road) shall be properly identified. b. Foot candles shall not exceed 1.0 as measured along the street property line. 10. Sheet E6.2, Site Lighting Details: a. All light source luminaires shall contain a cut-off which cuts off the light at an angle of 90 degrees or less. i. Fixture W1 shall be revised. Adopted by the Council of the City of Lino Lakes this 13th day of June, 2022. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY OF LINO LAKES RESOLUTION NO. 22-59 APPROVING A SITE IMPROVEMENT PERFORMANCE AGREEMENT WITH OTTER LAKE ANIMAL CARE CENTER (6848 OTTER LAKE ROAD) WHEREAS, the City has completed review of the site and building plan for Otter Lake Animal Care Center located at 6848 Otter Lake Road; and WHEREAS, the parcel is legally described as follows: That part of the South Half of the Northwest Quarter of the Southwest Quarter of the Southeast Quarter of Section 24, Township 31, Range 22 and the North 65 feet of the Southwest Quarter of the Southwest Quarter of the Southeast Quarter of Section 24, Township 31, Range 22, Anoka County, Minnesota, described as follows: Beginning at a point 33 feet east and 800.77 feet north of the South Quarter corner, Section 24, Township 31, Range 22; thence east a distance of 325 feet; thence south a distance of 203 feet; thence west a distance of 325 feet; thence north a distance of 203 feet, more or less, to the point of beginning, except road, subject to easements of record; and; WHEREAS, Section 1007.020(5)(d) of the Lino Lakes Zoning Ordinance requires the execution of a site performance agreement prior to issuance of a building permit. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes that the Site Improvement Performance Agreement between the City of Lino Lakes and Wayne Scanlan is hereby approved and the Mayor and City Clerk are authorized to execute such agreements on behalf of the City. Adopted by the Council of the City of Lino Lakes this 13th day of June, 2022. The motion for the adoption of the foregoing resolution was introduced by Council Member_______________ and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Rob Rafferty, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk WS – 4 WORK SESSION STAFF REPORT Work Session Item No. 4 Date: June 6, 2022 To: City Council From: Meg Sawyer, HR & Communications Manager Re: Communications Staffing Update Background The Communications Specialist will be out on maternity leave from July through September for a total of 12 weeks. Staff is seeking Council support to hire a Communications Intern to work during that leave. Funds for the internship would be allocated from Communications Specialist’s unpaid leave. The Communications Intern would report to Meg Sawyer, HR & Communications Manager. The intern would be responsible for updating social media, website maintenance, photographing special events and staff photos, updating marketing materials and assisting with the City newsletter. Staff is currently interviewing candidates with an anticipated start date of June 20, 2022. Requested Council Direction Consider supporting the hiring of an intern to cover a temporary vacancy in the communications department. Attachments None WS – Item 5 WORK SESSION STAFF REPORT Work Session Item No. 5 Date: June 6, 2022 To: City Council From: Hannah Lynch, Finance Director Re: Proposed 2022 Rookery Activity Center Budget Background The City Council accepted the Recreation and Aquatic Center Feasibility Study prepared by ISG on June 28, 2021. At the November 1, 2021 City Council Work Session, a recreation center update was given and Council supported opening the recreation center with a target date of April 1st. The Rookery Activity Center began serving Endurance Fitness members on February 1, 2022 and officially opened to the public on May 23, 2022. There is currently no formal budget for the Rookery Activity Center Fund. Staff has been referencing the feasibility study for operating expenditures. Many of the improvement and opening costs to date have been funded with American Rescue Plan Act (ARPA) federal grant dollars. An update on the ARPA dollars appropriated the Rookery was given at the May 2, 2022 City Council Work Session. Staff is proposing a 2022 Rookery Activity Center Budget. The base budget was built from Year 1 projections in the feasibility study while considering that the facility was not fully operational until June 2022. Requested Council Direction Staff is prepared to discuss the Proposed 2022 Rookery Activity Center Budget. Attachments Proposed 2022 Rookery Activity Center Budget May YTD 2022 Account Budget Actual Base Proposed Description Number 2021 2022 Budget 2022 Budget Detail INTERGOVERNMENTAL OTHER FEDERAL REVENUE 202-000-3319-000 0 0 0 500,000 American Rescue Plan Act (ARPA) Funds OTHER GRANTS 202-000-3372-000 0 4,485 0 0 Twin Cities Gateway Marketing and Promotional Grant 0 4,485 0 500,000 CHARGES FOR SERVICES RETURN CHECK FEE 202-000-3413-000 0 0 0 0 ANNUAL MEMBERSHIP FEES 202-000-3470-000 0 49,741 0 61,374 MONTHLY MEMBERSHIP FEES 202-000-3471-000 0 29,865 918,349 260,653 DAILY USE FEES 202-000-3472-000 0 1,020 42,076 11,453 EF BASIC CLASSES/PROGRAMS 202-000-3473-000 0 0 0 1,000 EF PERSONAL & SPECIALTY TRAIN 202-000-3474-000 0 3,635 0 29,600 EF SPINNING CLASSES 202-000-3475-000 0 0 0 8,500 GYM RENTALS 202-000-3476-000 0 0 11,667 11,667 POOL RENTALS 202-000-3477-000 0 0 21,240 21,240 ROOM RENTALS 202-000-3478-000 0 0 10,500 10,500 NON-TAXABLE RETAIL 202-000-3479-000 0 0 583 583 TAXABLE RETAIL 202-000-3480-000 0 0 2,917 2,917 ENROLLMENT FEES 202-000-3481-000 0 195 0 11,750 PROGRAM REVENUE 202-000-3485-000 0 386 223,577 41,096 Swim Lessons, Gym Programs, Youth/Adult/Family Programs CHILD WATCH 202-000-3485-601 0 27 7,438 6,160 TOWEL SERVICE 202-000-3485-602 0 30 0 4,363 0 84,899 1,238,347 482,856 INVESTMENT EARNINGS INTEREST ON INVESTMNETS 202-000-3620-000 0 0 0 0 00 00 MISCELLANEOUS REFUNDS & REIMBURSEMENTS 202-000-3730-000 0 0 0 0 SILVER SNEAKERS 202-000-3731-000 0 379 0 17,234 RENEW ACTIVE/ONE PASS 202-000-3732-000 0 104 0 16,684 MISCELLANEOUS REVENUE 202-000-3810-000 0 0 0 0 0 483 0 33,918 OTHER OPERATING TRANSFERS 202-000-3920-000 0 0 0 0 00 00 TOTAL REVENUES 0 89,867 1,238,347 1,016,774 CITY OF LINO LAKES THE ROOKERY ACTIVITY CENTER (202) 2022 PROPOSED REVENUE BUDGET THE ROOKERY ACTIVITY CENTER (202-451)May YTD 2022 Object Budget Actual Base Proposed Description Code 2021 2022 Budget 2022 Budget Detail PERSONAL SERVICES SALARIES 4101-000 0 79,242 433,606 433,606 OVERTIME 4102-000 0 0 0 0 PART-TIME 4103-000 0 11,221 270,000 270,000 TEMPORARIES 4106-000 0 3,803 0 0 WELLNESS PROGRAM 4108-000 0 0 0 0 PERA 4121-000 0 6,295 42,645 42,645 SOCIAL SECURITY 4122-000 0 7,009 53,826 53,826 ICMA EMPLOYER CONTRIBUTION 4123-000 0 1,015 0 0 HEALTH INSURANCE 4131-000 0 8,797 67,176 67,176 LIFE & DISABILITY INSURANCE 4133-000 0 274 1,234 1,234 DENTAL INSURANCE 4134-000 0 445 3,028 3,028 REEMPLOYMENT INSURANCE 4141-000 0 0 0 0 WORKER'S COMPENSATION 4151-000 0 0 22,633 22,633 0 118,101 894,148 894,148 SUPPLIES OFFICE SUPPLIES 4200-000 0 0 5,500 5,500 Supplies for Office Operations MAINTENANCE SUPPLIES 4211-000 0 115 46,500 46,500 Janitorial Supplies CHEMICALS 4222-000 0 0 5,250 5,250 SMALL TOOLS 4240-000 0 0 9,000 9,000 Machinery/Equipment under $10,000 0 115 66,250 66,250 OTHER SERVICES AND CHARGES PROFESSIONAL SERVICES 4300-000 0 0 0 5,000 Repair/Calibration of HVAC System, Repairs in Building, Safety Systems Monitoring MUNICIPAL ATTORNEY 4301-000 0 0 3,333 3,333 MUNICIPAL ENGINEER 4304-000 0 0 0 0 OTHER CONSULTANT 4310-000 0 100 2,750 2,750 Metro-iNet Services, Computer Programs & Support, CivicRec License Subscription, WheniWork Scheduling Software TELEPHONE 4321-000 0 495 2,750 2,750 POSTAGE 4322-000 0 0 0 0 TRAVEL & TUITION 4330-000 0 0 3,000 3,000 PRINTING & PUBLISHING 4340-000 0 50 667 667 PAYMENT PROCESSING 4345-000 0 23 38,997 38,997 INSURANCE 4361-000 0 5,575 10,000 10,000 General Liability & Property Insurance UNIFORMS 4370-000 0 0 2,000 2,000 ELECTRICITY 4381-000 0 15,014 60,917 88,000 UTILITIES 4382-000 0 3,485 10,920 10,920 Water & Sewer Service HEAT 4383-000 0 13,439 55,750 55,750 SANITATION 4384-000 0 2,785 6,000 6,000 Refuse Collection 0 40,964 197,084 229,167 CONTRACTUAL SERVICES CONTRACTED SERVICES 4410-000 0 13,731 6,667 12,500 Copier Maintenance, Rug Service, Cleaning Services, Pest Control, Healthy Contributions, Canva CONT SRVS - FITNESS PROVIDER 4410-000 0 56,200 172,775 172,775 Endurance Fitness Monthly Fee, Setup Fee, and Share of Program Revenue SPECIAL PROJECTS 4418-000 0 0 8,750 8,750 Scholarship/Financial Aid SUBSCRIPTIONS & DUES 4452-000 0 40 500 500 MARKETING 4900-000 0 2,656 11,000 11,000 0 72,627 199,692 205,525 CAPITAL OUTLAY EQUIPMENT 5000-000 0 0 0 0 Machinery/Equipment over $10,000 00 00 TOTAL ROOKERY ACTIVITY CENTER 0 231,808 1,357,174 1,395,090 CITY OF LINO LAKES 50% Public Services Director 15% Public Services Administrative Assistant 100% Activity Center Manager 100% Aquatic Supervisor 2 - 100% Activity Center Coordinator 100% Bldg Custodial/Maintenance Supervisor 100% HR Assistant 2 - 100% Bldg Custodial/Maintenance Worker Part-time: Aquatics Fitness Instructor, Aquatics Lead, Child Watch Attendant, Custodial Worker, Guest Services Representative, Lifeguard, Manager On Duty, Recreation Attendant 2022 PROPOSED EXPENDITURE BUDGET Personal Facility Contract Capital Program Revenue Services Supplies Rental Services Outlay Total Net +/- 201-000-3885 Account 4106 4211 4412 4410 5000 603 Summer Swim 14,580 6,646 500 7,146 7,434 603 Summer Private Swim 4,320 1,332 1,332 2,988 603 Fall Swim Lessons 27,502 9,970 9,970 17,532 603 Fall Private Swim 6,840 1,998 1,998 4,842 53,242 19,946 500 - - - 20,446 32,796 604 Youth Programming 3,600 700 500 1,200 2,400 605 Gym Programs 4,000 500 500 3,500 606 Adult/Family Programs 3,600 700 500 1,200 2,400 GRAND TOTALS 64,442 21,346 2,000 - - - 23,346 41,096 CITY OF LINO LAKES ROOKERY ACTIVITY CENTER NET PROGRAM REVENUE 2022 PROPOSED BUDGET Expenditures WS – Item 6 WORK SESSION STAFF REPORT Work Session Item 6 Date: June 6, 2022 To: City Council From: John Swenson, Public Safety Director Re: Community Service Officer Staffing Background During the preparation of 2022 Budget with Council, it was decided to fund a third .5 Community Service Officer (CSO) until we filled our vacant 28th police officer position. One of our current CSOs will complete all POST mandates by mid-summer and staff is planning to seek authorization to promote this CSO to Police Officer once this candidate meets all POST requirements. This promotion would bring our CSO staff back to two .5 CSO positions. Since March 12, 2022 we have utilized the CSO position to assist with traffic management at Eagle Brook Church (EBC) during the Saturday and Sunday services. The Police Division has been providing traffic management assistance at EBC since it began conducting services in Lino Lakes and this is a requirement of the EBC Conditional Use Permit that was approved by the Council in 2004. It should be noted that EBC reimburses the City for all expenses (personnel, infrastructure, administrative oversight) incurred by the City to provide this service. The staffing demands of providing police officers to conduct traffic management at EBC have been significant over the years and has created challenges related to filling overtime slots for this detail. For the entire year of 2021 there were a total of 371 overtime shifts that were posted. Of those 371 overtime shifts we had to initiate the overtime forcing process 62 times or 16% of the time. Of those 62 initiated forcing processes 51 (82%) of those stemmed from EBC traffic management. The overtime forcing process is initiated when posted overtime shifts are not filled by police staff. Since utilizing the CSO position at EBC we have been able to reduce the number of police overtime shifts from 2 to 1 shift for traffic management per day on the weekends. This has resulted in a drop in the number of times we have had to initiate forcing of overtime for police personnel to fill EBC overtime shifts since March 12, 2022 (2 as of 5.31.2022). In order to continue with utilizing a CSO to assist with traffic management at EBC on the weekends, staff is recommending that we continue with three .5 CSO positions in the Police Division personnel budget. This recommendation is a permanent addition of one .5 position over the approved 2021 adopted budget. Based on the 2022 approved compensation plan, the total compensation cost of a .5 CSO position is $29,291 for an entire year. As previously noted the third .5 CSO position funding for 2022 was funded in the Adopted 2022 City Budget through June, 2022. If Council is supportive of continuing with the third CSO position the estimated total compensation costs for the remainder of 2022 would be $12,204.60. Since utilizing CSOs for traffic management at EBC we have billed EBC for this service consistent with billing for police personnel. The CSO billable rate is $43.00 per hour which covers the hourly personnel costs, vehicle, and administrative oversight. If we continue to utilize CSO for the remainder of 2022 for traffic management at EBC the total estimated revenue to the City will be $11,904. 7.1.2022 to 12.31.2022 2023 * Estimated Total Compensation 12,204.60$ $ 30,170.00 EBC Revenue 6,966.00$ $ 13,818.00 General Fund Obligation 5,238.60$ $ 16,352.00 * This estimate is a calculated using worst case 3% increase for all lines The general fund financial obligation of $5,238.60 for CSO coverage from July 1 through December 31, 2022 would be funded with funding available in the 2022 Police Division personnel budget. These available funds stem from position vacancies within the Police Division in 2022. If we continue with the third .5 CSO position, staff will include this position as a 2023 budget request. Authorizing a third .5 CSO would: Provide CSO staff on weekends relieving some call load volume from police officers on weekends as is practice during the week. Continue to provide CSO traffic management coverage at EBC relieving some of the overtime demands on police officers. Further enhance the CSO position as a feeder system for future police officer positions. Staff is seeking Council direction. Attachments