Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
06-11-2018 Council Meeting Packet
EXPANDED AGENDA CITY COUNCIL AGENDA Monday, June 11, 2018 *********** 6:30 p.m. (Broadcast live: http://northmetrotv.com/local- meetings/lino-lakes/) City Council: Mayor Reinert, Councilmembers Maher, Manthey, Rafferty and Stoesz City Administrator: Jeff Karlson LIQUOR COMPLIANCE HEARING, 6:00 P.M. Council Chambers (not televised) CITY COUNCIL MEETING, 6:30 P.M. Roll Call - Council Members Rafferty, Stoesz, Manthey, Maher, and Mayor Reinert were present Pledge of Allegiance Open Mike / Public Comment - none Setting the Agenda: Addition or deletion of agenda items The agenda was approved as presented SPECIAL PRESENTATION Promotion to Police Sergeant: Curt Boehme American Legion Post 566, Presentation of Awards: - Lino Lakes Police Officer of the Year: Curt Boehme - Lino Lakes Firefighter of the Year: Brian Finke 1. CONSENT AGENDA A) Consideration of Expenditures: i) June 11, 2018 (Check No. 108237 through 108288 in the amount of $226,868.19 B) Consider Resolution 18-73, Approval the Renewal of Liquor, Wine and Beer Licenses C) Consider Resolution 18-74, Approving the Renewal of Tobacco Licenses D) Consider Resolution 18-75, Approving a Temporary On-Sale Liquor License, a Cabaret License, Exemption for Gambling Permit and Parade Run Permit for the Annual St. Joseph’s Catholic Church’s August Festival. E) Consider approval of May 29, 2018 Work Session Minutes Council Agenda -2- June 11, 2018 F) Consider approval of May 29, 2018 Council Minutes Action Taken: Motion by Rafferty, seconded by Maher, to approve Consent Agenda Items 1A through 1f as presented, was adopted 2. FINANCE DEPARTMENT REPORT A) Consider Accepting 2017 Audit Report, Redpath and Company, Ltd., Sarah Cotton Action Taken: Motion by Maher, seconded by Rafferty, to accept the 2017 Audit Report as presented, was adopted 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Resolution No. 18-71, Supporting Councilmember Stoesz’s Nomination to League of Minnesota Cities Board, Jeff Karlson Action Taken: Motion by Manthey, seconded by Maher, to approve Resolution No. 18-71 as presented, was adopted; Stoesz abstained B) Consider Appointment of Paid On-Call Fire Lieutenant, Karissa Bartholomew Action Taken: Motion by Manthey, seconded by Maher, to approve the appointment of Craig Menne as recommended, was adopted C) Consider Appointment of Police Officer, Karissa Bartholomew Action Taken: Motion by Manthey, seconded by Stoesz, to approve the appointment of Garrett Elertson as recommended, was adopted D) Consider Resolution 18-76, Liquor Compliance Violation, Julie Bartell & Lisa Hogstad-Osterhues Action Taken: Motion by Manthey seconded by Maher, to approve Resolution No. 18-76 as presented from the compliance hearing, was adopted 4. PUBLIC SAFETY DEPARTMENT REPORT No report 5. PUBLIC SERVICES DEPARTMENT REPORT No report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution 18-69, Approving Grading and Trunk Utility Agreement, Watermark, Diane Hankee Action Taken: Motion by Manthey, seconded by Maher, to approve Resolution No. 18-69 as presented, was adopted B) Nature’s Refuge, Katie Larsen i) Consider First Reading of Ordinance No. 05-18 Rezoning Property from R- 1, Single Family Residential to PUD, Planned Unit Development Council Agenda -3- June 11, 2018 Action Taken: Motion by Manthey, seconded by Stoesz, to approve the 1st Reading of Ordinance No. 05-18 as presented, was adopted ii) Consider Resolution No. 18-70 Approving PUD Development Stage Plan/Preliminary Plat No Action Taken C) Saddle Club Fourth Addition, Katie Larsen i) Consider First Reading of Ordinance No. 06-18 Rezoning Property from R- 1, Single Family Residential to PUD, Planned Unit Development Action Taken: Motion by Rafferty, seconded by Maher, to approve the 1st Reading of Ordinance No. 06-18 as presented, was adopted ii) Consider Resolution No. 18-72 Approving PUD Development Stage Plan/Preliminary Plat Action Taken: Motion by Rafferty, seconded by Maher, to approve Resolution No. 18-70 as presented, was adopted D) Consider 1st Reading Ordinance No. 07-18, Amending City Code Section 1007 Related Driveway Surfacing and Airplane Hangar and Hangar Access Performance Standards, Michael Grochala Action Taken: Motion by Rafferty, seconded by Maher, to approve the 1st Reading of Ordinance No. 07-18, was adopted 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Following adjournment of the regular meeting, the City Council will reconvene for a closed meeting (City Administrator’s review) Community Calendar – A Look Ahead June 11, 2018 through June 25, 2018 Wednesday, June 13 6:30 pm, Council Chambers Planning & Zoning Board Monday, June 18 6:00 pm, Community Room Jt. Mtg w/Advisory Bds Monday, June 25 6:30 pm, Community Room Council Work Session Monday, June 25 6:30 pm, Council Chambers City Council Meeting Updated 6/15/2018 CITY COUNCIL AGENDA Monday, June 11, 2018 *********** 6:30 p.m. (Broadcast live: http://northmetrotv.com/local- meetings/lino-lakes/) City Council: Mayor Reinert, Councilmembers Maher, Manthey, Rafferty and Stoesz City Administrator: Jeff Karlson LIQUOR COMPLIANCE HEARING, 6:00 P.M. Council Chambers (not televised) CITY COUNCIL MEETING, 6:30 P.M. Call to Order and Roll Call Pledge of Allegiance Open Mike / Public Comment Setting the Agenda: Addition or deletion of agenda items SPECIAL PRESENTATION Promotion to Police Sergeant: Curt Boehme American Legion Post 566, Presentation of Awards: - Lino Lakes Police Officer of the Year: Curt Boehme - Lino Lakes Firefighter of the Year: Brian Finke 1. CONSENT AGENDA A) Consideration of Expenditures: i) June 11, 2018 (Check No. 108237 through 108288 in the amount of $226,868.19 B) Consider Resolution 18-73, Approval the Renewal of Liquor, Wine and Beer Licenses C) Consider Resolution 18-74, Approving the Renewal of Tobacco Licenses D) Consider Resolution 18-75, Approving a Temporary On-Sale Liquor License, a Cabaret License, Exemption for Gambling Permit and Parade Run Permit for the Annual St. Joseph’s Catholic Church’s August Festival. E) Consider approval of May 29, 2018 Work Session Minutes F) Consider approval of May 29, 2018 Council Minutes Council Agenda -2- June 11, 2018 2. FINANCE DEPARTMENT REPORT A) Consider Accepting 2017 Audit Report, Redpath and Company, Ltd., Sarah Cotton 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Resolution No. 18-71, Supporting Councilmember Stoesz’s Nomination to League of Minnesota Cities Board, Jeff Karlson B) Consider Appointment of Paid On-Call Fire Lieutenant, Karissa Bartholomew C) Consider Appointment of Police Officer, Karissa Bartholomew D) Consider Resolution 18-76, Liquor Compliance Violation, Julie Bartell & Lisa Hogstad-Osterhues To Follow 4. PUBLIC SAFETY DEPARTMENT REPORT No report 5. PUBLIC SERVICES DEPARTMENT REPORT No report 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution 18-69, Approving Grading and Trunk Utility Agreement, Watermark, Diane Hankee B) Nature’s Refuge, Katie Larsen i) Consider First Reading of Ordinance No. 05-18 Rezoning Property from R- 1, Single Family Residential to PUD, Planned Unit Development ii) Consider Resolution No. 18-70 Approving PUD Development Stage Plan/Preliminary Plat C) Saddle Club Fourth Addition, Katie Larsen i) Consider First Reading of Ordinance No. 06-18 Rezoning Property from R- 1, Single Family Residential to PUD, Planned Unit Development ii) Consider Resolution No. 18-72 Approving PUD Development Stage Plan/Preliminary Plat D) Consider 1st Reading Ordinance No. 07-18, Amending City Code Section 1007 Related Driveway Surfacing and Airplane Hangar and Hangar Access Performance Standards, Michael Grochala 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Adjournment Following adjournment of the regular meeting, the City Council Council Agenda -3- June 11, 2018 will reconvene for a closed meeting (City Administrator’s review) Community Calendar – A Look Ahead June 11, 2018 through June 25, 2018 Wednesday, June 13 6:30 pm, Council Chambers Planning & Zoning Board Monday, June 18 6:00 pm, Community Room Jt. Mtg w/Advisory Bds Monday, June 25 6:30 pm, Community Room Council Work Session Monday, June 25 6:30 pm, Council Chambers City Council Meeting LIQUOR VIOLATIONS HEARING STAFF ORIGINATOR: Public Safety Director John Swenson HEARING DATE: June 11, 2018 TOPIC: Liquor License Violation – Don Julio’s VOTE REQUIRED: 3/5 BACKGROUND On November 21, 2017, members of the Police Division conducted alcohol compliance checks to ensure that licensed businesses in Lino Lakes were not furnishing alcohol to minors. These compliance checks were conducted by an underage employee of the Public Safety Department under the supervision of two police officers. At approximately 8:43 PM on November 21, 2017, the underage person entered Don Julio’s (701 Apollo Dr., Suite 120) and went to the bar where this person ordered, was served and paid for a beer. The bartender who served the underage person was later identified as Samuel Hernandez. Mr. Hernandez was charged with Furnishing Alcohol to a Person Under 21 (340A.503 Subd. 2) which is a gross misdemeanor. Mr. Hernandez plead guilty to this offense February 13, 2018 in Anoka County District Court. On February 18, 2018 at 11:55 PM, police staff responded to Don Julio’s (701 Apollo Dr., Suite 120) to check the welfare of a female caller. The female called Anoka County Dispatch and made odd comments, leading the dispatcher to believe there was problem. Upon the police officers arrival at the business they found the business to be closed, but the front entrance was unlocked. The police officers entered the business and interrupted an in-progress sexual assault. During the course of the investigation of the sexual assault, it was determined that the female victim of the sexual assault was 20 years. The victim had purchased and was served alcohol from two different employees’ of Don Julio’s. One of the employees (Simon Vicente) admitted to furnishing alcohol to the underage victim during the course of the investigations. Mr. Vicente furnished the victim with alcohol at least two times on February 18th with at least one of those occurring after the business closed at 10 PM on February 18, 2018. Mr. Vicente was charged with Criminal Sexual Conduct in the Third Degree (609.344 Subd. 1c) which is a felony. Mr. Vincente plead guilty to this offense April 3, 2018 in Anoka County District Court. The other employee involved (Erlin Perez) also admitted to furnishing alcohol to the underage victim and another person with the victim, during the course of the investigation. Mr. Perez was charged with Furnishing Alcohol to a Person Under 21 (340A.503 Subd.2). Mr. Perez failed to appear in Anoka County District Court on May 15, 2018 for his first appearance on this case; therefore, a warrant was issued for his arrest. Since November 21, 2017 staff is aware of three different employees of Don Julio’s who have provided alcohol to underage customers. One of the underage customers that was furnished alcohol was then sexually assaulted by Mr. Vicente, who identified himself as the manager of Don Julio’s. As outlined in Minnesota statute 340A.501 Responsibility of Licensee and adopted into City Code as reflected in City ordinance 701.01. MN statute 340A.501 Responsibility of Licensee states” Every licensee is responsible for the conduct in the licensed establishment and any sale of alcoholic beverage by any employee authorized to sell alcoholic beverages in the establishment is the act of the licensee for the purpose of all provisions of this chapter except sections 340A.701, 340A.702, and 340A.703. Below is a best practices grid to assist Council when reviewing liquor license violation cases within a one year time frame. The Council is not obligated to following this grid it is provided for Council discussion. 1st Violation 2nd Violation 3rd Violation 4th Violation Intoxicating liquor and Tobacco licensee $500 Civil Penalty $1,000 Civil Penalty & 5 days suspension $2,000 Civil Penalty & 10 days suspension Revocation RECOMMENDATION Staff recommends a $2,000 civil penalty and 10 days suspension of the City license to sell intoxicating liquor is recommended. ATTACHMENTS Section 701.01 of the City Code Minnesota State Statute 340A.501 & 340A.503 § 701.01 STATE LIQUOR LICENSING LAW. (1) Provisions of state law adopted. The provisions of M.S. Ch. 340A, as it may be amended from time to time, with reference to definitions of terms, applications for license, granting of license, conditions of license, restriction on consumption, provision of sales, conditions of bonds of license, hours of sales and all other matters pertaining to the retail sale, distribution and consumption of intoxicating liquor, are hereby adopted and made a part of this chapter as if fully set out herein. It is the intention of the City Council that all future amendments to M.S. Ch. 340A are hereby adopted by reference or referenced as if they had been in existence at the time this chapter was adopted. (2) City may be more restrictive than state law. The Council is authorized by the provisions of M.S. § 340A.509, as it may be amended from time to time, to impose and has imposed in this chapter, additional restrictions on the sale and possession of alcoholic beverages within its limits beyond those contained in M.S. Ch. 340A, as it may be amended from time to time. (Prior Code, § 701.01) (Am. Ord. 13-02, passed 10-28-2002) 340A.501 RESPONSIBILITY OF LICENSEE. Every licensee is responsible for the conduct in the licensed establishment and any sale of alcoholic beverage by any employee authorized to sell alcoholic beverages in the establishment is the act of the licensee for the purposes of all provisions of this chapter except sections 340A.701,340A.702,and 340A.703. History:1985 c 305 art 7 s 1;1987 c 152 art 1 s 1;art 2 s 2 Copyright ©2017 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 340A.501MINNESOTASTATUTES20171 340A.503 PERSONS UNDER 21;ILLEGAL ACTS. Subdivision 1.Consumption.(a)It is unlawful for any: (1)retail intoxicating liquor or 3.2 percent malt liquor licensee,municipal liquor store,or bottle club permit holder under section 340A.414,to permit any person under the age of 21 years to drink alcoholic beverages on the licensed premises or within the municipal liquor store;or (2)person under the age of 21 years to consume any alcoholic beverages.If proven by a preponderance of the evidence,it is an affirmative defense to a violation of this clause that the defendant consumed the alcoholic beverage in the household of the defendant's parent or guardian and with the consent of the parent or guardian. (b)An offense under paragraph (a),clause (2),may be prosecuted either in the jurisdiction where consumption occurs or the jurisdiction where evidence of consumption is observed. (c)As used in this subdivision,"consume"includes the ingestion of an alcoholic beverage and the physical condition of having ingested an alcoholic beverage. Subd.2.Purchasing.It is unlawful for any person: (1)to sell,barter,furnish,or give alcoholic beverages to a person under 21 years of age; (2)under the age of 21 years to purchase or attempt to purchase any alcoholic beverage unless under the supervision of a responsible person over the age of 21 for training,education,or research purposes.Prior notification of the licensing authority is required unless the supervised alcohol purchase attempt is for professional research conducted by postsecondary educational institutions or state,county,or local health departments;or (3)to induce a person under the age of 21 years to purchase or procure any alcoholic beverage,or to lend or knowingly permit the use of the person's driver's license,permit,Minnesota identification card,or other form of identification by a person under the age of 21 years for the purpose of purchasing or attempting to purchase an alcoholic beverage. If proven by a preponderance of the evidence,it shall be an affirmative defense to a violation of clause (1)that the defendant is the parent or guardian of the person under 21 years of age and that the defendant gave or furnished the alcoholic beverage to that person solely for consumption in the defendant's household. Subd.3.Possession.It is unlawful for a person under the age of 21 years to possess any alcoholic beverage with the intent to consume it at a place other than the household of the person's parent or guardian. Possession at a place other than the household of the parent or guardian creates a rebuttable presumption of intent to consume it at a place other than the household of the parent or guardian.This presumption may be rebutted by a preponderance of the evidence. Subd.4.Entering licensed premises.(a)It is unlawful for a person under the age of 21 years to enter an establishment licensed for the sale of alcoholic beverages or any municipal liquor store for the purpose of purchasing or having served or delivered any alcoholic beverage. (b)Notwithstanding section 340A.509,no ordinance enacted by a statutory or home rule charter city may prohibit a person 18,19,or 20 years old from entering an establishment licensed under this chapter to: (1)perform work for the establishment,including the serving of alcoholic beverages,unless otherwise prohibited by section 340A.412,subdivision 10; Copyright ©2017 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 340A.503MINNESOTASTATUTES20171 (2)consume meals;and (3)attend social functions that are held in a portion of the establishment where liquor is not sold. Subd.5.Misrepresentation of age.It is unlawful for a person under the age of 21 years to claim to be 21 years old or older for the purpose of purchasing alcoholic beverages. Subd.5a.Attainment of age.With respect to purchasing,possessing,consuming,selling,furnishing, and serving alcoholic beverages,a person is not 21 years of age until 8:00 a.m.on the day of that person's 21st birthday. Subd.6.Proof of age;defense;seizure of false identification.(a)Proof of age for purchasing or consuming alcoholic beverages may be established only by one of the following: (1)a valid driver's license or identification card issued by Minnesota,another state,or a province of Canada,and including the photograph and date of birth of the licensed person; (2)a valid military identification card issued by the United States Department of Defense; (3)a valid passport issued by the United States; (4)a valid instructional permit issued under section 171.05 to a person of legal age to purchase alcohol which includes a photograph and the date of birth of the person issued the permit;or (5)in the case of a foreign national,by a valid passport. (b)In a prosecution under subdivision 2,clause (1),it is a defense for the defendant to prove by a preponderance of the evidence that the defendant reasonably and in good faith relied upon representations of proof of age authorized in paragraph (a)in selling,bartering,furnishing,or giving the alcoholic beverage. (c)A licensed retailer or municipal liquor store may seize a form of identification listed under paragraph (a)if the retailer or municipal liquor store has reasonable grounds to believe that the form of identification has been altered or falsified or is being used to violate any law.A retailer or municipal liquor store that seizes a form of identification as authorized under this paragraph must deliver it to a law enforcement agency, within 24 hours of seizing it. Subd.7.[Repealed,1989 c 351 s 19] Subd.8.Prosecution;immunity.(a)A person is not subject to prosecution under subdivision 1, paragraph (a),clause (2),or subdivision 3,if the person contacts a 911 operator to report that the person or another person is in need of medical assistance for an immediate health or safety concern,provided that the person who initiates contact is the first person to make such a report,provides a name and contact information, remains on the scene until assistance arrives,and cooperates with the authorities at the scene. (b)The person who receives medical assistance shall also be immune from prosecution under paragraph (a). (c)Paragraph (a)also applies to one or two persons acting in concert with the person initiating contact provided that all the requirements of paragraph (a)are met. History:1985 c 305 art 7 s 3;1986 c 330 s 6;1986 c 444;1987 c 152 art 1 s 1;1989 c 301 s 13,14; 1990 c 602 art 5 s 2-4;1991 c 68 s 1;1991 c 249 s 20;1993 c 347 s 21;1993 c 350 s 13;1994 c 615 s 21; 1995 c 185 s 7;1995 c 186 s 67;1996 c 323 s 4;1996 c 442 s 24;1Sp1997 c 2 s 57;1999 c 202 s 7;2000 c 472 s 3;2005 c 131 s 7;2013 c 112 s 1;2015 c 9 art 2 s 6 Copyright ©2017 by the Revisor of Statutes,State of Minnesota.All Rights Reserved. 2MINNESOTASTATUTES2017340A.503 CITY COUNCIL AGENDA ITEM 1B STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 11, 2018 TOPIC: Resolution No. 18-73 Approving the Renewal of Liquor, Wine and Beer Licenses VOTE REQUIRED: 3/5 BACKGROUND All liquor, wine and beer (3.2) licenses in the City of Lino Lakes expire on June 30, 2018. Staff has been working with license holders on meeting the requirements for renewal so as to allow the council to consider approval at this time. A majority of these licenses require additional approval by the Minnesota Department of Public Safety Alcohol and Gambling Division and they will be forwarded to the state if local approval is granted. Attached is a list of the establishments that have submitted renewal applications. Under city policy, applicants applying for license renewal are required to undergo a background investigation each year. The Lino Lakes Public Services Department performs the investigation and reports any information that would make applicants ineligible for license renewal. Each license is contingent upon the background investigation. Licensees are also required to submit verification of liquor liability and workers’ compensation insurance as well as pay appropriate fees. No license will be released until all requirements are met. The city code requires that when the city council considers the issuance of a liquor license, opportunity shall be given to any person to be heard for or against the granting of the license. RECOMMENDATION Adopt Resolution 18-73 approving renewal of liquor, wine and beer licenses for the period of July 1, 2018 through June 30, 2019. ATTACHMENTS Resolution 18-73 Exhibit A - 2018-19 Liquor, Wine and Beer License Renewal List CITY OF LINO LAKES RESOLUTION NO. 18-73 Approving the Renewal of Liquor, Wine and Beer licenses for the 2018/2019 licensing period WHEREAS, the licensing period for liquor, wine and beer licenses in the City of Lino Lakes is one year, commencing on July 1 and ending on June 30 the following year; WHEREAS, the City Council is required to approve the renewal of liquor and wine licenses, in some cases, prior to State issuance of a license; WHEREAS, City staff has reviewed the renewal applications that have been submitted and verified that local licensing regulations are met; WHERAS, the Lino Lakes Public Service Department has conducted the required background investigations for license renewals; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA: The City of Lino Lakes hereby approves the renewal of liquor, wine and beer licenses as set forth in Exhibit A that is hereby attached, with said approval contingent upon applicants meeting all city and state requirements for said licenses. Adopted by the Council of the City of Lino Lakes this 11th day of June, 2018. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 2018-19 Liquor, Wine and Beer License Renewals Applicant License Type American Legion Post 566 7731 Lake Drive Lino Lakes, MN 55014 On Sale Club Sunday KLVZ Corporation - d/b/a Eagle Liquor 617 Apollo Drive Lino Lakes, MN 55014 Off Sale C.A. Wagner, Inc. - d/b/a The Tavern on Main 8001 Lake Drive Lino Lakes, MN 55014 Off Sale On Sale Sunday *2 a.m. JP’s Liquor, Wine and Beer 6501 Ware Road Lino Lakes, MN 55014 Off Sale Trapper’s Bar & Grill, LLC d/b/a Trapper’s 6810 Lake Drive Lino Lakes, MN 55014 Off Sale On Sale Sunday Anoka County - d/b/a Chomonix Golf Course 700 Aqua Lane Lino Lakes, MN 55014 On Sale Sunday Target Corporation - Store T-1448 749 Apollo Drive Lino Lakes, MN 55014 Off Sale Hammerheart, LLC - d/b/a:Hammerheart Brewing Co. 7785 Lake Drive Lino Lakes, MN 55014 Off-Sale Brewer On-Sale Taproom Rm Off-Sale Growler & Sunday Cherokee Liquors, Inc. d/b/a G-Will Liquors 8040 Lake Drive Lino Lakes, MN 55014 Off-Sale Rademacher Co Inc. Bill’s Superette 8020 Lake Drive Lino Lakes, MN 55014 3.2 Off Sale Fiesta Cancun Mexican Grill & Bar 7090 – 21st Avenue North Lino Lakes, MN 55038 On Sale Sunday Elwoods - Gratz Ventures, Inc. 7997 Lake Dr., Suite 130 Lino Lakes, MN 55014 3.2 On-Sale On Sale Wine Katrina’s Mexican Grill and Cantina d/b/a Fiesta Cancun Mexican Grill & Bar 566 Lilac Street Lino Lakes, MN 55014 On Sale Sunday Liquor Barrel – Gratz Ventures, Inc. 7997 Lake Dr., Suite 120 Lino Lakes, MN 55014 Off Sale Katana Sushi 730 Apollo Drive Suite 110 Lino Lakes, MN 55014 On Sale Sunday CITY COUNCIL AGENDA ITEM 1C STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 11, 2018 TOPIC Consider Resolution No. 18-74, Approving 2018-2019 Tobacco License Renewals VOTE REQUIRED: Simple Majority (3/5 Vote Required) INTRODUCTION All tobacco licenses in the City of Lino Lakes expire on June 30, 2018. Staff has been working with the license holders to put in place all renewal requirements to allow for Council consideration at this time. BACKGROUND Attached is a list of the establishments that have submitted renewal applications. As indicated, the applicants have completed the necessary documentation and paid the fee that is required for the license. The Lino Lakes Public Services Department performs the investigation and reports any information that would make applicants ineligible for license renewal. Each license is contingent upon the background investigation. No license will be released until all requirements are met. RECOMMENDATION Adopt Resolution 18-74, approving renewal of tobacco licenses for the period of July 1, 2018 through June 30, 2019. ATTACHMENTS Resolution 18-74 2018-2019 Tobacco License Renewal List CITY OF LINO LAK ES RESOLUTION NO. 18-74 Approving Renewal of Tobacco Licenses for the 2018/2019 Licensing Period WHEREAS, the licensing period for tobacco licenses in the City of Lino Lakes is one year, commencing on July 1 and ending on June 30 the following year; and WHEREAS, the City Council is required to approve the renewal of tobacco licenses; and WHEREAS, city staff has reviewed the renewal applications that have been submitted and verified that licensing requirements are met; and WHEREAS, the Public Safety Department has completed the required background investigations; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: The City of Lino Lakes hereby approves the renewal of tobacco licenses as set forth in Exhibit A that is attached to this resolution. Adopted by the Council of the City of Lino Lakes this 11th of June, 2018. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 2018-19 Tobacco License Renewal List Applicant License Type KLVZ Corporation - d/b/a Eagle Liquor 730 Apollo Drive, #190 Lino Lakes, MN 55014 Tobacco JP’s Liquor, Wine & Beer 6501 Ware Road Lino Lakes, MN 55014 Tobacco Holiday Stationstores d/b/a Holiday Stationstore #376 7509 Lake Drive Lino Lakes, MN 55014 Tobacco KRO, Inc. d/b/a Lino Lakes One Stop 6501 Ware Road, Suite 360 Lino Lakes, MN 55014 Tobacco Anoka County Parks Chomonix Golf Course 700 Aqua Lane Lino Lakes, MN 55014 Tobacco Fast Break 7601 Lake Drive Lino Lakes, MN 55014 Tobacco TJ Lino Lakes d/b/a Corner Express 7997 Lake Drive Lino Lakes, MN 55014 Tobacco Cherokee Liquors, Inc. d/b/a G-Will Liquors 8040 Lake Drive Lino Lakes, MN 55014 Tobacco Rademacher Co. Inc. d/b/a Bill’s Superette 8020 Lake Drive Lino Lakes, MN 55014 Tobacco Lakes 1 Stop 7090 21st Ave. No. Lino Lakes, MN 55038 Tobacco Lino Lakes Tobacco 717 Apollo Drive Suite 110 Lino Lakes, MN 55014 Tobacco Clayton Gratz Liquor Barrel 7997 Lake Drive Suite 120 Lino Lakes, MN 55014 Tobacco CITY COUNCIL AGENDA ITEM 1D STAFF ORIGINATOR: Lisa Hogstad-Osterhues, Deputy City Clerk MEETING DATE: June 11, 2018 TOPIC: Resolution No. 18-75, Approving an Application for a Temporary On-Sale Liquor License, a Cabaret License, Exemption for Gambling Permit and a Parade Run for the Annual St. Joseph’s Catholic Church August Festival VOTE REQUIRED: 3/5 INTRODUCTION St. Joseph Church is hosting its annual August Festival on Saturday, August 11th and Sunday, August 12th, 2018. BACKGROUND As part of the festival, food and beverages including strong beer and wine will be served. Although temporary on-sale liquor licenses are issued by the Minnesota Department of Public Safety, local approval is required. Staff has verified that St. Joseph’s Church is eligible under local ordinance for a temporary license. The Church has also made application to acquire a cabaret license. Bands will be playing live music in the church parking lot on Saturday from 5:00 p.m. to 11:00 p.m. and Sunday from 11:00 to 5:00 p.m. The Church has also applied for an Exempt Permit to allow charitable gambling. Non-profit organizations are allowed under State gambling laws to apply for an exempt permit if they conduct fewer than five (5) gambling occasions per year. St. Joseph Catholic Church conducts fewer than five. The Church has also applied for a Parade/Run event permit requesting city permission to conduct this activity. The event is a 5K Run starting at St. Joseph’s Parish church on Elm Street and running along the routes indicated on the attached map. There will be bathrooms available at the church as well as basic first aid. It anticipates there will be approximately 100 participants. The applications and the certificate of liability Insurance have been submitted to cover all of the above events and is filed in the office of the City Clerk. The proper fees have been paid. The Public Safety Department has reviewed the application and has signed off on the permit with the understanding that the applicants will continue to follow their instructions on safety. The applicant must have in place all necessary permissions for use of property involved in the event if private. RECOMMENDATION Approval of Resolution No. 18-75, Approving an Application for a Temporary On-Sale Liquor License, a Cabaret License, an Exemption for Gambling Permit and a Parade/Run permit for the Annual St. Joseph’s Catholic Church August Festival. ATTACHMENTS Map of the Race Resolution 18-75 CITY OF LINO LAKES RESOLUTION NO. 18-75 Approving Applications for a Temporary Liquor License, Cabaret License, Lawful Gambling Permit and a Parade/Run Permit for the Annual Festival at St. Joseph’s Catholic Church WHEREAS, St. Joseph’s Catholic Church has made application for a temporary on-sale liquor license, a cabaret license, an exempt lawful gambling permit and parade/run permit for their annual Summer Festival to be held August 11th and 12th, 2018; and WHEREAS, city staff has reviewed the applications submitted for festival events (temporary on-sale liquor, exempt gambling, cabaret and parade/run) for concurrence with city regulations; and WHEREAS, it is recommended that volunteers along the 5K run route have a cell phone to call 911 in case of an emergency and to have a first aid kit along the route as well as at St. Joseph’s Church. WHEREAS, the Permits are contingent on the background investigations being conducted by the Public Safety Department; and WHEREAS, St. Joseph’s Catholic Church has paid the required license fees; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota: That the City Council hereby approves a temporary on-sale liquor license, a cabaret license, an application for exemption for gambling permit and a parade/run permit for the 2018 St. Joseph’s Catholic Church Festival. Adopted by the Council of the City of Lino Lakes this 11th day of June, 2018. The motion for the adoption of the foregoing resolution was introduced by Council Member _____________and was duly seconded by Council Member _____ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _____________________ Jeff Reinert, Mayor ATTEST: ___________________________ Julianne Bartell, City Clerk CITY COUNCIL WORK SESSION May 29, 2018 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 DATE : May 29, 2018 4 TIME STARTED : 6:00 p.m. 5 TIME ENDED : 6:15 p.m. 6 MEMBERS PRESENT : Council Member Rafferty, Maher, 7 Manthey, Stoesz and Mayor Reinert 8 MEMBERS ABSENT : None 9 10 Staff members present: City Administrator Jeff Karlson; Public Safety Director John 11 Swenson; Human Resources Manager Karissa Henning; Finance Director Sarah Cotton; 12 City Clerk Julie Bartell 13 14 Review Regular Council Agenda of May 29, 2018 – 15 16 Item 2A, Issuance of Revenue Note for the City of Columbia Heights - Finance Director 17 Cotton explained that the resolution grants post approval (the council approved a 18 resolution earlier) to the City of Columbia Heights to issue the bonds. She also noted 19 that the City has a policy in place providing for collection of a $2,500 fee. 20 21 Council Member Stoesz suggested that the policy be brought to the City Economic 22 Development Advisory Committee for review. 23 24 Item 3A, Appointment of Accounting Clerk/ Utility Billing– Human Resources Manager 25 explained the process that has been used to identify a candidate for the vacant Utility 26 Billing/Accounting position in the Finance Department. She noted that the position 27 duties have been revised and the salary amended accordingly. Staff is recommending 28 that the candidate be granted step two on the salary scale. 29 30 Item 3B, Amending Chapter 301 of the City Code relating to Public Parks and Grounds, 31 providing an exception to alcohol restriction for community festival – City Clerk Bartell 32 noted that the council has reviewed and approved 1st Reading of this ordinance that would 33 allow for intoxicating beverages on park grounds for Blue Heron Days events. The 34 council would maintain consideration over these event by the requirement for a 35 resolution. Conditions could be placed on events through that process. Ms. Bartell 36 added that she investigated the possibility of limiting, by ordinance, the exception to beer 37 and wine and that is feasible. The council will consider the ordinance as presented. 38 39 The meeting was adjourned at 6:15 p.m. 40 41 These minutes were considered, corrected and approved at the regular Council meeting held on 42 June 11, 2018. 43 44 45 CITY COUNCIL WORK SESSION May 29, 2018 DRAFT 2 46 47 Julianne Bartell, City Clerk Jeff Reinert, Mayor 48 49 COUNCIL MINUTES May 29, 2018 DRAFT 1 CITY OF LINO LAKES 1 MINUTES 2 3 4 DATE : May 29, 2018 5 TIME STARTED : 6:30 p.m. 6 TIME ENDED : 7:00 p.m. 7 MEMBERS PRESENT : Council Member Rafferty, Maher, 8 Manthey, Stoesz and Mayor Reinert 9 MEMBERS ABSENT : 10 11 Staff members present: City Administrator Jeff Karlson; Director of Finance Sarah Cotton; City 12 Engineer Diane Hankee; Human Resources Manager Karissa Bartholomew; Director of Public Safety 13 John Swenson; and City Clerk Julie Bartell 14 15 PUBLIC COMMENT 16 17 No one was present to address the council regarding a matter not on the agenda. 18 19 SETTING THE AGENDA 20 21 The agenda was approved as presented. 22 23 SPECIAL PRESENTATION 24 25 Oath of Fire Service – Firefighters Menne, Cree, Marshik, Gustafson 26 27 Promotion to District Fire Chief: Mark Hokkanen 28 29 Promotion to Public Safety Captain: William Owens 30 31 Public Safety Department Volunteer Recognition 32 33 CONSENT AGENDA 34 35 Council Member Maher moved to approve the Consent Agenda, Items 1A through 1G, as presented. 36 Council Member Rafferty seconded the motion. Motion carried on a unanimous voice vote. 37 38 ITEM ACTION 39 40 Consideration of Expenditures: 41 42 May 29, 2018 (Check No. 108118 – 43 108236, $451,248.78) Approved 44 45 COUNCIL MINUTES May 29, 2018 DRAFT 2 May 7, 2018 Council Work Session Minutes Approved 46 47 May 14, 2018 City Council Meeting Minutes Approved 48 49 Consider Resolution 18-64, Approving a Peddler/Solicitor 50 License for Big Bell Ice Cream Approved 51 52 Consider Resolution 18-65 Approving Consumer Firework Approved 53 permit for Target Superstore 54 55 Consider Resolution 18-66 Approving a Special Event 56 for Permit for Target Superstore Approved 57 58 Consider Resolution 18-67, Approving a Peddler/Solicitor 59 License for The Window Store Approved 60 61 FINANCE DEPARTMENT REPORT 62 63 2A) Public Hearing for the Purpose of Providing Host Approval for the Issuance of a 64 Revenue Note by the City of Columbia Heights: i) Consider Resolution No. 18-68, Consenting 65 To and Approving the Issuance by the City of Columbia Heights of a Revenue Obligation for 66 the Benefit of Love To Grow On – Finance Director Cotton explained that, after a public hearing is 67 held, staff is requesting that the council consider a resolution approving the issuance of a revenue 68 obligation by the City of Columbia Heights for the benefit of Love to Grow On. The proceeds would 69 finance a new early childhood education center in Lino Lakes. 70 Mayor Reinert opened the public hearing. There being no one present wishing to speak, the public 71 hearing was closed. 72 Council Member Stoesz moved to approve Resolution No. 18-68 as presented. Council Member 73 Manthey seconded the motion. Motion carried on a voice vote. 74 75 ADMINISTRATION DEPARTMENT REPORT 76 3A) Consider Appointment of Accounting Clerk/ Utility Billing – Human Resources Manager 77 Bartholomew reviewed staff’s recommendation to hire Yelena Brook to the open position. She noted 78 Ms. Brook’s qualifications and education. 79 Council Member Rafferty moved to approve the appointment of Yelena Brook as recommended. 80 Council Member Maher seconded the motion. Motion carried on a voice vote. 81 82 3B) Consider 2nd Reading and Passage of Ordinance No. 04-18, Amending Chapter 301 of 83 the City Code relating to Public Parks and Grounds, providing an exception to alcohol 84 restriction for community festival – City Clerk Bartell reported that a local restaurant is interested 85 in offering food and craft beer at Lino Park during this year’s Blue Heron Days festival. In order for 86 the council to consider an application for this activity, a change to city regulations is necessary. She 87 COUNCIL MINUTES May 29, 2018 DRAFT 3 explained that Ordinance No. 04-18 would add language to allow intoxicating beverages at a City 88 park but only during the community festival and only when the council approves a specific event by 89 resolution. The resolution process would allow the city to impose conditions as appropriate. 90 Council Member Rafferty moved to waive the full reading of Ordinance No. 04-18. Council Member 91 Maher seconded the motion. Motion carried on a voice vote. 92 Council Member Rafferty moved to approve the 2nd Reading and passage of Ordinance No. 04-18 as 93 presented. Council Member Maher seconded the motion. Motion carried: Yeas, 5; Nays none. 94 95 PUBLIC SAFETY DEPARTMENT REPORT 96 97 There was no report from the Public Safety Department. 98 99 PUBLIC SERVICES DEPARTMENT REPORT 100 101 There was no report from the Public Services Department. 102 103 COMMUNITY DEVELOPMENT DEPARTMENT REPORT 104 105 6A) Drainage and Utility Easement Vacation: 106 i. Consider 2nd Reading of Ordinance No. 03-18, Outlot B of NorthPointe 5th Addition 107 ii. Consider Resolution No. 18-53, Summary Publication of Ordinance No. 03-18 108 109 City Engineer Hankee explained that staff is requesting that the council approve the 2nd Reading and 110 adoption of an ordinance vacating a drainage and utility easement as part of plans for the Northpointe 111 5th Addition development. The council approved the first reading of the ordinance at the last 112 meeting. 113 114 Council Member Manthey moved to waive the full reading of Ordinance No. 03-18. Council 115 Member Stoesz seconded the motion. Motion adopted on a voice vote. 116 117 Council Member Manthey moved to approve the 2nd Reading and passage of Ordinance No. 03-18 as 118 presented. Council Member Stoesz seconded the motion. Motion carried; Yeas, 5; Nays none. 119 120 Council Member Manthey moved to approve Resolution No. 18-53 as presented. Council Member 121 Stoesz seconded the motion. Motion carried on a voice vote. 122 123 6B) Consider Resolution 18-61, Approving Comprehensive Plan Amendment – Utility 124 Staging – City Engineer Hankee reviewed the staff recommendation to approve a Comprehensive 125 Plan Amendment to allow four existing homes along Ash Street to connect onto existing sewer lines. 126 She reviewed the analysis used to bring this matter forward. The amendments would be to the Land 127 Use Plan as well as Sanitary Sewer Plan. 128 129 Council Member Manthey moved to approve Resolution No. 18-61 as presented. Council Member 130 Stoesz seconded the motion. Motion carried on a voice vote. 131 COUNCIL MINUTES May 29, 2018 DRAFT 4 132 UNFINISHED BUSINESS 133 134 There was no Unfinished Business. 135 136 NEW BUSINESS 137 138 There was no New Business. 139 140 COMMUNITY CALENDAR 141 142 Community Calendar – A Look Ahead 143 May 29, 2018 through June 11, 2018 144 Monday, June 4 6:00 pm, Community Room Council Work Session 145 Thursday, June 7 8:00 am, Community Room EDAC 146 Monday, June 11 6:00 pm, Council Chambers Liquor Compliance Hrg 147 Monday, June 11 6:30 pm, Council Chambers Council Meeting 148 149 ADJOURN 150 151 There being no further business, Council Member Rafferty moved to adjourn at 7:00 p.m. Council 152 Member Maher seconded the motion. Motion carried. 153 154 These minutes were considered and approved at the regular Council Meeting, June 11, 2018 155 156 157 158 159 Julianne Bartell, City Clerk Jeff Reinert, Mayor 160 161 CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR: Sarah Cotton MEETING DATE: June 11, 2018 TOPIC: Accept 2017 Annual Audit Report VOTE REQUIRED: 3/5 BACKGROUND Andy Hering of Redpath and Company will be in attendance at the meeting to provide a brief overview of the City’s 2017 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 2017 annual audit was undertaken earlier this year, with field work being completed in 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 U.S. Government Auditing Standards, issued by the Comptroller General of the United States. The auditors concluded that the City’s financial statements for 2017 presented fairly, in all material respects, the financial position of the City as of December 31, 2017. 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 2016 Comprehensive Annual Financial Report. The city has received this award each year since 1995. We believe that the report issued for 2017 continues to uphold the high standards of reporting excellence that this prestigious award represents. RECOMMENDATION Following the presentation by Mr. Hering, staff recommends that the City Council formally, by motion, accept the 2017 Annual Audit Report. ATTACHMENTS 2017 Comprehensive Annual Financial Report 2017 Other Audit Reports COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE CITY OF LINO LAKES, MINNESOTA FOR THE YEAR ENDED DECEMBER 31, 2017 Prepared By: Finance Department Sarah Cotton, Director of Finance Paula Schloer, Accountant - 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 9 Organization Chart 10 Principal City Officials 11 Independent Auditor's Report 15 Management's Discussion and Analysis 19 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position Statement 1 33 Statement of Activities Statement 2 34 Fund Financial Statements: Balance Sheet - Governmental Funds Statement 3 36 Reconciliation of the Balance Sheet of Governmental Funds To the Statement of Net Position Statement 4 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 Statement of Net Position - Fiduciary Funds Statement 10 44 Notes to Financial Statements 45 Required Supplementary Information: Budgetary Comparison Schedule - General Fund Statement 11 86 Schedule of Changes in the Total OPEB Liability and Related Ratios Statement 12 92 Schedule of Proportionate Share of Net Pension Liability - General Employees Retirement Fund Statement 13 93 Schedule of Pension Contributions - General Employees Retirement Fund Statement 14 94 INTRODUCTORY SECTION FINANCIAL SECTION CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference No. Schedule of Proportionate Share of Net Pension Liability - Public Employees Police and Fire Fund Statement 15 95 Schedule of Pension Contributions - Public Employees Police and Fire Fund Statement 16 96 Schedule of Changes in the Net Pension Liability and Related Ratios - Lino Lakes Public Safety Department - Fire Division Statement 17 97 Schedule of Contributions - Lino Lakes Public Safety Department - Fire Division Statement 18 98 Notes to RSI 99 Combining and Individual Nonmajor Fund Financial Statements and Schedules: Combining Balance Sheet - Nonmajor Governmental Funds Statement 19 105 Combining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Governmental Funds Statement 20 106 Subcombining Balance Sheet - Nonmajor Special Revenue Funds Statement 21 108 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Special Revenue Funds Statement 22 109 Subcombining Balance Sheet - Nonmajor Debt Service Funds Statement 23 112 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Debt Service Funds Statement 24 115 Subcombining Balance Sheet - Nonmajor Capital Project Funds Statement 25 121 Subcombining Statement of Revenues, Expenditures and Changes in Fund Balance - Nonmajor Capital Project Funds Statement 26 124 Special Revenue Fund - Program Recreation Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Statement 27 128 Statement of Changes in Assets and Liabilities - Agency Funds Statement 28 129 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference No. Financial Trends: Net Position by Component Table 1 134 Changes in Net Position Table 2 136 Fund Balances, Governmental Funds Table 3 140 Changes in Fund Balances, Governmental Funds Table 4 142 Revenue Capacity: Assessed and Actual Value of Taxable Property Table 5 144 Direct and Overlapping Property Tax Capacity Rates Table 6 145 Principal Property Taxpayers Table 7 147 Property Tax Levies and Collections Table 8 148 Debt Capacity: Ratios of Outstanding Debt by Type Table 9 150 Ratios of Net General Bonded Debt Table 10 152 Direct and Overlapping Governmental Activities Debt Table 11 154 Legal Debt Margin Information Table 12 155 Demographic and Economic Information: Demographic and Economic Statistics Table 13 156 Principal Employers Table 14 157 Operating Information: Full-Time Equivalent City Government Employees By Function/Program Table 15 158 Operating Indicators by Function/Program Table 16 160 Capital Asset Statistics by Function/Program Table 17 162 Schedule of Long-Term Debt Exhibit 1 164 Schedule of Deferred Tax Levies Exhibit 2 166 Debt Service Payments to Maturity Exhibit 3 168 Insurance in Force Exhibit 4 170 Taxable Valuations, Tax Levies and Tax Rates Exhibit 5 172 STATISTICAL SECTION (UNAUDITED) OTHER INFORMATION (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 May 29, 2018 Honorable Mayor Members of the City Council Citizens of the City of Lino Lakes, Minnesota Minnesota State law requires that cities over 2,500 population publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants and submit them to the state auditor. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Lino Lakes, Minnesota for the fiscal year ended December 31, 2017. This report consists of management’s representations concerning the finances of the City of Lino Lakes. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Lino Lakes has established a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Lino Lakes’ financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Lino Lakes’ financial statements have been audited by Redpath and Company, Ltd., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2017, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit that there was a reasonable basis for rendering an unmodified opinion that the City’s financial statements for the fiscal year ended December 31, 2017, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Lino Lakes’ MD&A can be found immediately following the report of the independent auditors. 3 Profile of the Government The City of Lino Lakes, incorporated in 1955, is a growing community in the southeast corner of the County of Anoka. It covers an area of 33 square miles and has a population of approximately 21,100. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 25.8% since 2000. Within the City’s borders lies the 2,550 acre Rice Creek Chain of Lakes Regional Park. Access to St. Paul and Minneapolis is provided by I-35W and I-35E. The City Charter, as amended, establishes a mayor-council form of government and grants the city council full policy-making and legislative authority to the mayor and four council members. The City council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring a City administrator. The City administrator has the responsibility of carrying out the policies and ordinances of the City council, for overseeing the day-to-day operation of the city. The City council is elected at-large on a non-partisan basis, with council members serving four-year terms and the mayor serving a two-year term. Elections are held every two years with two council seats and the mayor being up for election each election cycle. The City provides a full range of municipal services. These services include: general government, public safety (police, fire and building inspection), public services (streets, fleet, parks and recreation), conservation of natural resources (environmental and solid waste abatement), community development, public improvements, providing and maintaining sanitary and storm sewer, water infrastructure, and two enterprise funds, the water and sewer funds. The annual budget is the foundation for the City of Lino Lakes’ financial planning and control. All divisions are required to submit appropriations requests to the City administrator for review and consolidation into a proposed budget. The City administrator is responsible for submitting the proposed annual budget to the City Council in August of each year. The city council is required to hold a public hearing on the proposed budget and to adopt by resolution a final budget and certify it no later than December 28. The budget amounts cannot increase beyond the estimated receipts except to the extent that actual receipts exceed the estimate. Division directors may make transfers of appropriations within a department, but transfers of appropriations between departments require council approval. Budget-to- actual comparisons for the general fund and the recreation program fund, the only funds for which an annual budget has been adopted, are provided in Statements 11 and 27, respectively. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Lino Lakes operates. Local economy. The economic development effort established by the City Council in 1993 increased the commercial/industrial tax base in the City from 3% of the total tax base to 9% in 2011. Development of three industrial parks - Apollo Business Park on 35W, Marshan Industrial Park on Lake Drive, and the Clearwater Creek Development Center on 35E, provided excellent opportunities for manufacturing and distribution businesses to move their headquarters to Lino Lakes. Before the recession began in late 2007 the Lino Lakes Town Center, comprising approximately 200 acres surrounding the 35W/Lake Drive interchange, was developing at a rapid pace. Super Target and Kohl’s anchor the shopping center quadrant, while Apollo Business Park brought approximately 1,000 new employees to the area. Land was purchased by Anoka County on a third quadrant for future development of a regional library. Due to economic conditions, the County has pushed back construction of the library to a future date. 4 Factors Affecting Financial Condition (Continued) In 2004, the City entered into an agreement with a master developer to develop 40 acres in the southeast quadrant of I-35W and Lake Drive. Called Legacy at Woods Edge, this mixed-use development is intended to include diverse opportunities for housing, retail and office uses. To date, the development includes the Lino Lakes Civic Complex (which houses the city hall and police station), the Chain of Lakes YMCA, a 60-unit workforce housing project, 13,000 square feet of leasable commercial space, and an assisted living facility. The Civic Complex and YMCA provide a civic and community focus as part of the vision for Town Center. A workforce family housing and assisted living facility provide diversity in housing to underserved populations within the City. In 2006, the City placed a major focus on reconstruction of the 35W/Lake Drive interchange and completion of public improvements in Legacy at Woods Edge to accommodate planned development and completed the improvements by 2008. However, it became evident at the end of 2007 that development was stalling. The recession has had negative impacts on the Legacy development. Both the master developer and lender defaulted, sending the remaining 22 acres intended for townhomes and commercial uses into tax forfeit. Development conditions have begun to improve relative to the Legacy property. During 2013, the assisted living facility purchased an adjoining parcel to expand its current operation. The 36-room addition was completed in 2014. In addition, the State Legislature approved City-initiated special legislation which has allowed the City to acquire the tax forfeited property from the State at no cost except for an administrative fee payable to Anoka County if future sale revenues exceed the value of the special assessments on the property. The acquisition of this property will allow the City greater control in marketing the property to potential developers. The solid foundation that was built and strong interest by developers prior to the recession ensures that better economic times will once again bring the interest in residential and commercial growth needed to complete the vision. Street, streetscape, water, sewer, and storm water improvements, as well as a small community park, have been installed within the development area and assessed to the development. The $11.1 million I-35W Interchange improvement was financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City has issued $4,215,000 in G.O. Tax Increment bonds and will use tax increment financing and Minnesota State Aid funds to finance its portion of the project cost. In anticipation of a strengthening economy, the City took the lead on developing the infrastructure needed to service future growth on the 35E/County Road 14 interchange area. A major reconstruction of the interchange completed a multi-year improvement of County Road 14 from Highway 61 in Hugo, through Centerville, to 35W in Lino Lakes. The City portion of the cost for this bridge reconstruction project is being financed through Anoka County, with the City issuing an initial $4.26 million General Obligation Note to the County. Due to cost savings in this project the Note was amended to $3.695 million in 2011. The city prepaid the Note with Anoka County in 2017 using MSA funds. With both major interstate interchanges complete, the City is preparing for development of several hundred acres in all quadrants of 35E/14. Interest in the commercial interchange has spurred the extension of Otter Lake Road North east of I-35E and the extension of 21st Avenue west of I-35E, which will leave the City well poised to accommodate significant future industrial, commercial and residential development. A McDonald’s restaurant was completed in 2014 at CSAH 14 and Otter Lake Road. In addition, Metropolitan Transit has constructed a 300 space Park and Ride at I35-E at CSAH 14 and 21st Avenue. Development activities continued to increase in 2017. Residential permit activity surpassed 100 for the second consecutive year with 133 issued. Commercial development continues to show signs of recovery as new construction activities and development planning emerges. National Builder, DR Horton 5 continued development of the 112 unit Woods Edge townhome development. Lennar Homes received planned unit development approval on the 871 lot Watermark development previously owned by aae Mattamy Homes. Lennar is anticipating development of the site in 2018. The 402,000 square-foot Distribution Alternatives building, developed by United Properties, was completed and occupied in 2017. Long-term financial planning. The City’s currently adopted five-year financial plan identifies street and utility improvements totaling $26,838,947 over the five-year period. These improvements are anticipated to be funded through a number of funding sources, including special assessments, municipal state aid road funds, the area and unit trunk fund, the stormwater management fund and voter-approved tax levies. The five-year plan also includes funding projections for operations and operating impacts for the five-year period. This plan is in the process of being revised to reflect the anticipated activity through the year 2022. Relevant Financial Policies The City uses a variety of financial policies to guide its fiscal actions and ensure fiscal stability. Fund balance policy. The City had adopted a Fund Balance policy which identified the required designated amounts in the Fund Balance of the General Fund at fiscal year-end and directed the transfer of any excess revenues to other funds for specific purposes, as identified annually. For the year ended December 31, 2011 and subsequent years, the City amended its Fund Balance policy to conform to the requirements of GASB 54. The new policy targets the unassigned fund balance of the general fund in a range of 40% to 50% of budgeted general fund expenditures and other financial uses. In addition, fund balances are classified in compliance with GASB 54 according to the hierarchy of usable fund balance resources. The unassigned general fund balance as of December 31, 2016 was $6,573,608 which is 64% of general fund budgeted expenditures and other financing uses for the year. Cash management policies and practices. The City’s policy is to invest all available moneys at competitive rates in accordance with Minnesota law. Investments are made by minimizing credit and market risks while maintaining a competitive yield. Funds are invested in certificates of deposit, state and local securities, and U.S. government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the investment policy annually. The City’s investment policy’s primary objective is safety of principal. Therefore, all deposits were either insured by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened economy, a historically low interest rate environment has persisted over the last several years and has had a dramatic impact on the city’s investment earnings. The average interest income yield on investments for 2017 was 0.62%. Total investment income also includes positive or negative changes in the fair value of investments. Changes in fair value of investments during the current year resulted in unrealized gains of $62,488, or 0.16%, for a total investment yield of 0.78%. The changes in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments the City intends to hold to maturity. It is the City’s practice to purchase and hold investments to maturity and, accordingly, changes in fair value over the term of the City’s investments are expected to net to book value. 6 Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awards the Certificate of Achievement for excellence in financial reporting to cities that meet certain criteria. The City of Lino Lakes received this award for its comprehensive annual financial report for the year ended December 31, 2016. This marks the twenty-second consecutive year the City has received this prestigious award. A governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report, the contents of which conform to program requirements. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2017 report to GFOA for consideration of the Certificate of Achievement for Excellence in Financial Reporting. We believe our current report continues to conform to the high standards of the Certificate program. The timely preparation of this report could not have been accomplished without the dedicated services of the Finance Department, auditors and other city staff. I want to express my appreciation to the Mayor and City Council for their support for maintaining the highest standard of professionalism in the management of the financial operation of the City. Respectfully submitted, Sarah R. Cotton Director of Finance 7 - This page intentionally left blank - 8 9 Ci t y o f L i n o L a k e s O r g a n i z a t i o n a l C h a r t Ci t y C o u n c i l Ci t y A d m i n i s t r a t o r Ad m i n i s t r a t i o n Fi n a n c e Co m m u n i t y De v e l o p m e n t Pu b l i c S e r v i c e s Pu b l i c S a f e t y Ci t y C l e r k Ac c o u n t i n g Pl a n n i n g Re c r e a t i o n Po l i c e D i v i s i o n Hu m a n R e s o u r c e s Ut i l i t y B i l l i n g Ec o n o m i c De v e l o p m e n t En g i n e e r i n g En v i r o n m e n t a l Se r v i c e s Go v e r n m e n t Bu i l d i n g s Pu b l i c W o r k s St r e e t / F l e e t / U t i l i t y Ma i n t e n a n c e Pa r k s Bu i l d i n g I n s p e c t i o n s Fi r e D i v i s i o n Se n i o r C i t i z e n Se r v i c e s Ad v i s o r y B o a r d & Co m m i s s i o n s Ne t w o r k Ad m i n i s t r a t i o n Em e r g e n c y Ma n a g e m e n t / Ad m i n i s t r a t i o n Pu b l i c I n f o r m a t i o n 10 CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2017 Term Expires Mayor: Jeff Reinert December 31, 2017 Councilmembers: William Kusterman December 31, 2017 Rob Rafferty December 31, 2017 Melissa Maher December 31, 2019 Michael Manthey December 31, 2019 City Administrator: Jeff Karlson Appointed Directors: Community Development Michael Grochala Appointed Finance Sarah Cotton Appointed Public Safety John Swenson Appointed Public Services Richard DeGardner Appointed 11 - This page intentionally left blank - 12 FINANCIAL SECTION 13 - This page intentionally left blank - 14 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota, as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. 15 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota, as of December 31, 2017, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 20 to the financial statements, the City of Lino Lakes, Minnesota adopted new accounting guidance, GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions for the year ended December 31, 2017. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison information, and the schedules of OPEB and pension information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and schedules, statistical section and other information are presented for purposes of additional analysis and are not a required part of the basic financial statements. 16 The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory section, the statistical section and other information have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 29, 2018, on our consideration of the City of Lino Lakes, Minnesota’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Lino Lakes, Minnesota’s internal control over financial reporting and compliance. REDPATH AND COMPANY, LTD. St. Paul, Minnesota May 29, 2018 17 - This page intentionally left blank - 18 MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Lino Lakes, Minnesota (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2017. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report. Financial Highlights The assets of the City exceeded its liabilities at the close of the most recent fiscal year by $93,293,613 (net position). Of this amount, $26,863,256 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors in accordance with the City's fund designations and fiscal policies. The City’s total net position increased by $5,442,106. As of the close of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $24,056,122, a decrease of $3,774,647. Of this amount, $5,289,641 is restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. At the end of the current fiscal year, the general fund balance was $6,816,925. Unassigned fund balance for the general fund was $6,573,608, or 65% of total general fund expenditures and other financing uses. Total outstanding debt decreased by $7,764,838 during 2017. Refunding bonds in the amount of $3,575,000 were issued during November 2016, the proceeds from which were used to pay off two bonds on February 1, 2017. In addition, the City prepaid the 2009A Series Note with Anoka County. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private-sector business. 19 Management’s Discussion and Analysis The Statement of Net Position presents information on all of the City’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, public services, conservation of natural resources and community development. The business-type activities of the City include a water utility and sewer utility. The government-wide financial statements are statements 1 and 2 of this report. Fund Financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the City's near term financial decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures and change in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 20 Management’s Discussion and Analysis The City maintains five individual major governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balance for the following major funds: General Fund G.O. Improvement Bonds of 2005A – Debt Service Fund G.O. Improvement Notes of 2009A – Debt Service Fund G.O. Improvement Bonds of 2016B – Debt Service Fund Area and Unit Charge – Capital Project Fund Data from the other governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for its General Fund and its Program Recreation special revenue fund. A budgetary comparison schedule has been provided for those funds to demonstrate compliance with this budget. The basic governmental fund financial statements are statements 3 through 6 of this report. Proprietary funds. The City maintains two enterprise funds as a part of its proprietary fund type. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its water and sewer utilities. The proprietary fund statements provide the same type of information as the government- wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer funds, which are considered to be major funds of the City. The basic proprietary fund financial statements are statements 7 through 9 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held by the City as an agent for individuals, private organizations, or other governments. Fiduciary funds are not reflected by the government-wide financial statements because the resources of those funds are not available to support the City’s own programs. The basic fiduciary fund statements are Statements 10 and 28. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government–wide and fund financial statements. The notes to the financial statements can be found following Statement 10. Other information. The combining statements referred to earlier in connection with non- major governmental funds are presented immediately following the required supplementary 21 Management’s Discussion and Analysis information. Combining and individual fund statements and schedules are presented as Statements 19 through 27. Government-Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $93,293,613 at the close of the most recent fiscal year. The largest portion of the City’s net position ($54,700,209, or 59%) reflects its net investment in capital assets (e.g. land, buildings, equipment, and infrastructure) less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Lino Lakes’ Net Position 2017 2016 2017 2016 2017 2016 Assets: Current and other assets $32,942,034 $37,480,144 $15,272,668 $14,501,255 $48,214,702 $51,981,399 Capital assets 42,611,027 41,154,425 31,831,950 31,860,608 74,442,977 73,015,033 Total assets $75,553,061 $78,634,569 $47,104,618 $46,361,863 $122,657,679 $124,996,432 Deferred outflows of resources $5,625,220 $8,780,333 $97,118 $168,302 $5,722,338 $8,948,635 Liabilities: Long-term liabilities outstanding $27,257,669 $42,409,997 $413,334 $468,598 $27,671,003 $42,878,595 Other liabilities 894,136 1,331,338 43,453 287,286 937,589 1,618,624 Total liabilities $28,151,805 $43,741,335 $456,787 $755,884 $28,608,592 $44,497,219 Deferred inflows of resources $6,410,858 $1,546,117 $66,954 $50,224 $6,477,812 $1,596,341 Net position: Net investment in capital assets $22,868,259 $18,597,344 $31,831,950 $31,860,610 $54,700,209 $50,457,954 Restricted 11,730,147 13,342,852 - - 11,730,147 13,342,852 Unrestricted 12,017,212 10,187,254 14,846,045 13,863,447 26,863,257 24,050,701 Total net position $46,615,618 $42,127,450 $46,677,995 $45,724,057 $93,293,613 $87,851,507 Governmental Activities Business-Type Activities Totals $11,730,147 of the City’s net position represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($26,863,257) may be used to meet ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. 22 Management’s Discussion and Analysis The City’s net position increased by $5,442,106 during 2017. Key elements of this increase are as follows: City of Lino Lakes’ Changes in Net Position 2017 2016 2017 2016 2017 2016 Revenues: Program revenues: Charges for services $3,600,902 $2,744,984 $2,849,797 $2,754,219 $6,450,699 $5,499,203 Operating grants and contributions 1,106,014 722,858 - - 1,106,014 722,858 Capital grants and contributions 4,141,383 5,046,307 836,029 1,543,947 4,977,412 6,590,254 General revenues: General property taxes 9,441,819 9,049,671 - - 9,441,819 9,049,671 Tax increment 312,152 293,829 - - 312,152 293,829 Grants and contributions not restricted to specific programs 181,712 91,385 - - 181,712 91,385 Unrestricted investment earnings 207,792 210,142 106,488 107,119 314,280 317,261 Gain on disposal of capital assets 38,022 66,255 - - 38,022 66,255 Total revenues 19,029,796 18,225,431 3,792,314 4,405,285 22,822,110 22,630,716 Expenses: General government 2,395,633 2,456,864 - - 2,395,633 2,456,864 Public safety 5,166,538 6,567,523 - - 5,166,538 6,567,523 Public services 5,492,395 6,228,893 - - 5,492,395 6,228,893 Conservation of naturual resources 200,016 216,905 - - 200,016 216,905 Community development 459,455 454,144 - - 459,455 454,144 Interest and fees on long-term debt 518,897 831,529 - - 518,897 831,529 Water - - 1,245,249 1,367,693 1,245,249 1,367,693 Sewer - - 1,901,821 1,850,962 1,901,821 1,850,962 Total expenses 14,232,934 16,755,858 3,147,070 3,218,655 17,380,004 19,974,513 Increase in net position before special item and transfers 4,796,862 1,469,573 645,244 1,186,630 5,442,106 2,656,203 Special item - 1,333,166 - - - 1,333,166 Transfers (308,694) (914,414) 308,694 914,414 - - Change in net position 4,488,168 1,888,325 953,938 2,101,044 5,442,106 3,989,369 Net position - January 1, as previously reported 42,819,930 40,754,159 45,724,057 43,800,459 88,543,987 84,554,618 Prior period adjustment (692,480) 177,446 - (177,446) (692,480) - Net position - January 1, as restated 42,127,450 40,931,605 45,724,057 43,623,013 87,851,507 84,554,618 Net position - December 31 $46,615,618 $42,819,930 $46,677,995 $45,724,057 $93,293,613 $88,543,987 Business-Type Activities TotalsGovernmental Activities Governmental Activities Governmental activities increased the City’s net position by $4,488,168 during 2017. The cumulative effect of increased charges for services and decreases in public safety expenses and public services spending account for the increase in 2017. This increase was partially offset by transfers out to business-type activities of $308,694. 23 Management’s Discussion and Analysis Below are specific graphs which provide comparisons of the governmental activities revenues and expenses: Charges for services 19% Operating grants and contributions 6% Capital grants and contributions 22% General property taxes 49% Other revenue 4% Governmental Activities - Revenues General government 17% Public safety 36% Public Services 39% Conservation of Natural Resources 1% Interest and Fees on Long- Term Debt 4% Community Development 3% Governmental Activities - Expenses 24 Management’s Discussion and Analysis Business-Type Activities Business-type activities increased the City’s net position by $953,938 during 2017. The increase was due to contributions of capital assets from private sources, as well as the City’s governmental activities, in the amount of $1,006,239. Below are specific graphs which provide comparisons of the business-type activities revenues and expenses: Charges for services 75% Capital grants and contributions 22% Unrestricted investment earnings 3% Business-Type Activities - RevenuesBusiness-Type Activities - RevenuesBusiness-Type Activities - Revenues Water 40% Sewer 60% Business-Type Activities - Expenses 25 Management’s Discussion and Analysis Financial Analysis of the Government's Funds Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. At the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $24,056,122. Approximately 22% of this total amount ($5,289,641) constitutes fund balance restricted by external constraints established by creditors, grantors, contributors, or by state statutory provisions. $344,976 of fund balance is not in a spendable form, $175,401 has been committed, $14,581,669 has been assigned, and $3,664,435 is unassigned. The fund balance of the General Fund increased by $560,734 in 2017, while the City anticipated the use of $518,000 of the general fund balance. Overall, signs of continued economic recovery are being seen with increased building and development activities taking place which resulted in increased license and permit revenues for the year. The City also saw a significant increase in the number of roofing and siding permits issued during the year due to a storm causing significant damage throughout the City in June of 2017. Finally, reduced expenditures, primarily for personal services through vacant positions, fuel costs, and professional and contractual services helped to increase the year end fund balance. The G.O. Improvement Bonds of 2005A fund balance decreased by $226,135. The 2005A series bonds were refunded in 2016 and the fund made a debt service payment of $2,420,000 in February 2017. The G.O. Improvement Note of 2009A fund, to service the debt issued by Anoka County as the City’s financial commitment for the I-35E interchange project, ended the year with a fund balance of $0, a decrease of $22. The City prepaid the note in 2017 using MSA funds. As deferred special assessments are received the MSA funds will be replenished. The outstanding balance on the note as of December 31, 2017 was $0. The G.O. Improvement Bonds of 2016B fund decreased by $1,932,000. The 2016B series bonds were issued to refund the 2005A series bonds and fund the Legacy at Woods Edge improvements. Future tax increment and land sale proceeds are expected to cover debt service and the interfund loan payable. The Area and Unit Charge fund has a total fund balance of $7,656,155, all of which is assigned for financing capital improvements. The fund balance during the current year increased by $1,389,955 due to the collection of prepaid special assessments and trunk utility development fees. 26 Management’s Discussion and Analysis The combined fund balance of other governmental funds decreased $3,567,167 during 2017. Primary reasons for the decrease include the issuance of $1,600,000 of G.O. Tax Abatement Refunding Bonds, Series 2016C, the proceeds from which were used to pay-off the G.O. Tax Abatement Bonds of 2006C on February 1, 2017. Also, the fund balance of the Municipal State Aid (MSA) Construction fund decreased $1,169,000 as MSA funds were used to prepay the 2009A Note with Anoka County for the city’s share of the 35E Interchange project. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The water fund has total net position at year-end of $22,621,564, of which $5,455,247 is unrestricted. The increase in net position of $602,293 was primarily due to capital contributions, partially offset by a net operating loss. The sewer fund has total net position at year-end of $24,056,431, of which $9,390,798 is unrestricted. The increase in net position of $351,645 was primarily due to capital contributions, partially offset by a net operating loss. Budgetary Highlights General Fund The General Fund budget was amended several times during the year to reflect increased revenues relative to building and licensing activities, state aid, and other operating transfers, as well as changes in expenditure areas due to personnel vacancies, changes to professional and contracted services, variances in supplies, investment in the Civic Complex air conditioning units, and finally the transfer for the park land loan and the comprehensive plan update budgeted over 3 years (2016-2018). The final amended expenditure budget was $150,759 less than the original adopted budget. Revenues were $5,934 over budget for the year. General property tax, intergovernmental revenue, and miscellaneous refunds and reimbursements were $66,444 under budget; however, this variance was more than offset by greater than anticipated license and permit revenues, fines and forfeits, and investment earnings. Expenditures came in under budget by $311,492 due to many factors including lower than expected personal service costs from vacant positions. Fuel and fleet maintenance supply costs were much lower than anticipated and the Civic Complex air-conditioning upgrades were not completed in 2017, resulting in favorability in capital outlay. 27 Management’s Discussion and Analysis Capital Asset and Debt Administration Capital assets. The City’s investment in capital assets for its governmental and business- type activities as of December 31, 2017, amounted to $74,442,977 (net of accumulated depreciation), an increase of $1,427,942 from the prior year. This investment in capital assets includes land, wetland credits, construction in progress, buildings, equipment, vehicles, and infrastructure. The City completed the Shenandoah Area street improvements, NorthPointe 2nd Addition infrastructure improvements, Fire Station #2, Pump House #6, the reconditioning of Water Tower #1, Aqua Lane to Blackduck Drive water main improvements, the build-out of two Ford F-650 light rescue fire vehicles, and the upgrade of the air conditioning system (Phase I ) at the Civic Complex. The City has continued to work to complete the Birch Street turn lanes and infrastructure improvements in 2017. In addition, the City began land preparation activities for NorthPointe Park, the upgrade of the air conditioning system (Phase II) at the Civic Complex, and the Council Chambers upgrade. Developer lead infrastructure improvements at various stages of completion include NorthPointe 3rd, 4th, 5th, and 6th Additions, Saddle Club 2nd and 3rdAdditions, Century Farms 6th Addition, Woods Edge 1st and 2nd Additions, Clearwater Creek, St Clair Estates, and Chavez Estates. City of Lino Lakes’ Capital Assets (Net of Depreciation) 2017 2016 2017 2016 2017 2016 Land $3,320,059 $3,275,859 $ - $ - $3,320,059 $3,275,859 Wetland credits 162,372 - - - 162,372 - Construction in progress 2,482,238 8,961,062 1,507,153 5,617,436 3,989,391 14,578,498 Buildings 6,376,011 2,706,355 - - 6,376,011 2,706,355 Office equipment and furniture 236,777 157,704 - - 236,777 157,704 Vehicles 2,016,355 1,370,732 - - 2,016,355 1,370,732 Machinery and shop equipment 1,133,624 1,017,332 147,568 167,440 1,281,192 1,184,772 Other equipment 267,096 206,385 - - 267,096 206,385 Infrastructure 26,616,495 23,458,996 30,177,229 26,075,734 56,793,724 49,534,730 Total $42,611,027 $41,154,425 $31,831,950 $31,860,610 $74,442,977 $73,015,035 Governmental Activities Business-Type Activities Totals Additional information on the City’s capital assets can be found in Note 5 to the financial statements. 28 Management’s Discussion and Analysis Long-term debt. At the end of the current fiscal year, the City had total bonded debt outstanding of $19,976,243. Of this amount, $14,714,250 comprises tax supported debt and $4,905,000 is special assessment debt. All outstanding debt carries the general obligation backing for which the City is liable in the event of default by the property owners subject to the specific taxes, special assessments or revenues pledged to the retirement of the debt. In addition, the City has a note payable to the City of Circle Pines for its share of the cost of capital equipment to be used by the North Metro Telecommunications Commission in the operation of a cable communications system in the amount of $233,475. City of Lino Lakes’ Outstanding Debt 2017 2016 2017 2016 2017 2016 General obligation bonds $14,947,725 $18,460,250 $ - $ - $14,947,725 $18,460,250 G.O. special assessment bonds 4,905,000 7,795,000 - - 4,905,000 7,795,000 Note payable - Anoka County - 1,345,000 - - - 1,345,000 Bond premium 123,518 140,831 - - 123,518 140,831 Total $19,976,243 $27,741,081 $0 $0 $19,976,243 $27,741,081 Business-Type Activities TotalsGovernmental Activities The City of Lino Lakes’ total bonded debt decreased by $7,764,838 during the current fiscal year. The key factors for the change include the issuance of $311,000 of Certificates of Indebtedness to finance capital equipment purchases, as well as principal retired in the amount of $8,508,525 during the year. Additional information on the City’s long-term debt can be found in Note 6. Requests for information. This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014. 29 - This page intentionally left blank - 30 BASIC FINANCIAL STATEMENTS 31 - This page intentionally left blank - 32 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION Statement 1 December 31, 2017 Governmental Business-Type Activities Activities Total Assets: Cash and investments $24,934,980 $13,921,698 $38,856,678 Accrued interest receivable 84,517 - 84,517 Due from other governmental units 133,556 1,614 135,170 Accounts receivable - net 51,052 376,957 428,009 Prepaid items 244,976 27,082 272,058 Internal balances (914,949) 914,949 - Inventory - 30,368 30,368 Taxes receivable 100,047 - 100,047 Special assessments receivable 7,954,861 - 7,954,861 Long-term notes receivable 225,000 - 225,000 Net pension asset 127,994 - 127,994 Capital assets - nondepreciable 5,964,669 1,507,153 7,471,822 Capital assets - net of accumulated depreciation 36,646,358 30,324,797 66,971,155 Total assets 75,553,061 47,104,618 122,657,679 Deferred outflows of resources related to pensions 5,625,220 97,118 5,722,338 Liabilities: Accounts payable and other current liabilities 736,608 43,453 780,061 Accrued interest payable 157,528 - 157,528 Compensated absences payable: Due within one year 492,042 38,130 530,172 Due in more than one year 276,866 28,426 305,292 Other post employment benefits 738,061 8,480 746,541 Bonds and notes payable: Due within one year 3,130,600 - 3,130,600 Due in more than one year 16,845,643 - 16,845,643 Net pension liability: Due in more than one year 5,774,457 338,298 6,112,755 Total liabilities 28,151,805 456,787 28,608,592 Deferred inflows of resources: Pension related 6,359,775 66,954 6,426,729 OPEB related 51,083 - 51,083 Total deferred inflows of resources 6,410,858 66,954 6,477,812 Net position: Net investment in capital assets 22,868,259 31,831,950 54,700,209 Restricted for: Debt service 10,564,305 - 10,564,305 Economic development 225,000 - 225,000 Tax increment purposes 479,695 - 479,695 Environmental improvements - nonexpendable 100,000 - 100,000 Environmental improvements - expendable 23,316 - 23,316 Other purposes 337,831 - 337,831 Unrestricted 12,017,212 14,846,045 26,863,257 Total net position $46,615,618 $46,677,995 $93,293,613 Primary Government The accompanying notes are an integral part of these financial statements. 33 CITY OF LINO LAKES, MINNESOTA STATEMENT OF ACTIVITIES For The Year Ended December 31, 2017 Program Revenues Charges For Functions/Programs Expenses Services Primary government: Governmental activities: General government $2,395,633 $550,117 Public safety 5,166,538 2,249,152 Public services 5,492,395 801,633 Conservation of natural resources 200,016 - Community development 459,455 - Interest and fees on long-term debt 518,897 - Total governmental activities 14,232,934 3,600,902 Business-type activities: Water 1,245,249 1,150,834 Sewer 1,901,821 1,698,963 Total business-type activities 3,147,070 2,849,797 Total primary government $17,380,004 $6,450,699 The accompanying notes are an integral part of these financial statements. 34 Statement 2 Operating Capital Grants and Grants and Governmental Business-Type Contributions Contributions Activities Activities Total $1,460 $ - ($1,844,056)$ - ($1,844,056) 351,258 - (2,566,128) - (2,566,128) 661,302 4,141,383 111,923 - 111,923 91,994 - (108,022) - (108,022) - - (459,455) - (459,455) - - (518,897) - (518,897) 1,106,014 4,141,383 (5,384,635)0 (5,384,635) - 421,608 - 327,193 327,193 - 414,421 - 211,563 211,563 0 836,029 0 538,756 538,756 $1,106,014 $4,977,412 (5,384,635)538,756 (4,845,879) General revenues: General property taxes 9,441,819 - 9,441,819 Tax increment 312,152 - 312,152 Grants and contributions not restricted to specific programs 181,712 - 181,712 Unrestricted investment earnings 207,792 106,488 314,280 Gain on disposal of capital assets 38,022 - 38,022 Transfers (308,694)308,694 - Total general revenues and transfers 9,872,803 415,182 10,287,985 Change in net position 4,488,168 953,938 5,442,106 Net position - January 1, as previously reported 42,819,930 45,724,057 88,543,987 Prior period adjustment (692,480) - (692,480) Net position - January 1, as restated 42,127,450 45,724,057 87,851,507 Net position - December 31 $46,615,618 $46,677,995 $93,293,613 Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government The accompanying notes are an integral part of these financial statements. 35 CITY OF LINO LAKES, MINNESOTA BALANCE SHEET Statement 3 GOVERNMENTAL FUNDS December 31, 2017 333 G.O. 342 G.O. Other Total Improvement Improvement 406 Area and Governmental Governmental General Fund Note of 2009A Bonds of 2016B Unit Charge Funds Funds Assets Cash and investments $6,648,162 $ - $944,886 $7,528,465 $9,813,467 $24,934,980 Accrued interest receivable 84,517 - - - - 84,517 Due from other governmental units 133,556 - - - - 133,556 Accounts receivable - net 23,758 - - 25,439 1,855 51,052 Prepaid items 243,317 - - - 1,659 244,976 Taxes receivable: Due from county 23,611 - - - 6,789 30,400 Delinquent 56,559 - - - 13,088 69,647 Special assessments receivable: Due from county - - - 2,400 798 3,198 Delinquent - - - 9,129 9,151 18,280 Deferred 329 2,639,483 2,994,379 1,117,458 1,181,734 7,933,383 Interfund loan receivable - - - 100,361 2,934,516 3,034,877 Long-term notes receivable - - - - 225,000 225,000 Total assets $7,213,809 $2,639,483 $3,939,265 $8,783,252 $14,188,057 $36,763,866 Liabilities, Deferred Inflows of Resources, and Fund Balances Liabilities: Accounts payable $194,538 $ - $705 $510 $257,313 $453,066 Salaries payable 110,845 - - - 453 111,298 Due to other governmental units 34,613 - - - 12,176 46,789 Contracts payable - - - - 125,455 125,455 Interfund loan payable - - 2,876,643 - 1,073,183 3,949,826 Total liabilities 339,996 0 2,877,348 510 1,468,580 4,686,434 Deferred inflows of resources: Unavailable revenue 56,888 2,639,483 2,994,379 1,126,587 1,203,973 8,021,310 Fund balance: Nonspendable 243,317 - - - 101,659 344,976 Restricted - - - - 5,289,641 5,289,641 Committed - - - - 175,401 175,401 Assigned - - - 7,656,155 6,925,514 14,581,669 Unassigned 6,573,608 - (1,932,462) - (976,711) 3,664,435 Total fund balance 6,816,925 0 (1,932,462) 7,656,155 11,515,504 24,056,122 Total liabilities, deferred inflows of resources, and fund balance $7,213,809 $2,639,483 $3,939,265 $8,783,252 $14,188,057 $36,763,866 The accompanying notes are an integral part of these financial statements. 36 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL Statement 4 FUNDS TO THE STATEMENT OF NET POSITION December 31, 2017 Fund balance - total governmental funds (Statement 3) $24,056,122 Net position reported for governmental activities in the Statement of Net Position is different because: Certain assets used in governmental activities are not current financial resources and, therefore, are not reported in the funds. Capital assets 42,611,027 Net pension asset 127,994 Other long-term assets are not available to pay for current-period expenditures and therefore, are reported as unavailable revenue in the funds: Delinquent taxes receivable 69,647 Delinquent special assessments receivable 18,280 Deferred special assessments receivable 7,933,383 Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Long-term liabilities at year end consist of: Bonds and notes payable (19,852,725) Unamortized bond premiums (142,182) Unamortized bond discounts 18,664 Accrued interest payable (157,528) Compensated absences payable (768,908) Other post employment benefits (738,061) Net pension liability (5,774,457) Deferred outflows and inflows of resources related to pensions and OPEB are associated with long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds. Balances at year end are: Deferred outflows of resources 5,625,220 Deferred inflows of resources (6,410,858) Net position of governmental activities (Statement 1)$46,615,618 37 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUNDS For The Year Ended December 31, 2017 327 G.O. Improvement General Fund Bonds of 2005A Revenues: General property taxes $7,338,876 $ - Tax increment - - Licenses and permits 1,447,571 - Intergovernmental 667,520 - Special assessments 4,293 - Charges for services 302,038 - Fines and forfeits 147,977 - Investment earnings 40,913 6,486 Miscellaneous 295,439 - Total revenues 10,244,627 6,486 Expenditures: Current: General government 1,945,691 - Public safety 4,347,108 - Public services 2,178,725 - Conservation of natural resources 183,392 - Community development 426,653 - Capital outlay: General government 87,104 - Public safety 66,587 - Public services - - Conservation of natural resources 8,247 - Debt service: Principal - 2,360,000 Interest and fiscal charges - 60,117 Total expenditures 9,243,507 2,420,117 Revenues over (under) expenditures 1,001,120 (2,413,631) Other financing sources (uses): Transfers in 439,373 2,187,503 Transfers out (879,759)(7) Issuance of debt - - Proceeds from sale of capital assets - - Total other financing sources (uses)(440,386)2,187,496 Net change in fund balance 560,734 (226,135) Fund balance - January 1 6,256,191 226,135 Fund balance - December 31 $6,816,925 $0 The accompanying notes are an integral part of these financial statements. 38 Statement 5 333 G.O. 342 G.O. Improvement Improvement 406 Area and Other Total Note of 2009A Bonds of 2016B Unit Charge Governmental Funds Governmental Funds $ - $ - $ - $2,121,713 $9,460,589 - - - 312,152 312,152 - - - - 1,447,571 - - - 413,433 1,080,953 287,628 - 1,325,125 666,928 2,283,974 - - 257,468 768,275 1,327,781 - - - 465,616 613,593 - - 69,217 91,176 207,792 - - - 115,201 410,640 287,628 0 1,651,810 4,954,494 17,145,045 - - - 6,978 1,952,669 - - - 13,409 4,360,517 - - 25,307 1,210,380 3,414,412 - - - - 183,392 - - - 6,491 433,144 - - - 228,895 315,999 - - - 893,831 960,418 - - - 868,184 868,184 - - - - 8,247 1,345,000 - - 4,353,525 8,058,525 68,707 17,015 - 494,190 640,029 1,413,707 17,015 25,307 8,075,883 21,195,536 (1,126,079)(17,015)1,626,503 (3,121,389)(4,050,491) 1,126,057 272,506 - 2,959,004 6,984,443 - (2,187,503)(236,548)(3,819,110)(7,122,927) - - - 311,000 311,000 - - - 103,328 103,328 1,126,057 (1,914,997)(236,548)(445,778)275,844 (22)(1,932,012)1,389,955 (3,567,167)(3,774,647) 22 (450)6,266,200 15,082,671 27,830,769 $0 ($1,932,462)$7,656,155 $11,515,504 $24,056,122 The accompanying notes are an integral part of these financial statements. 39 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 6 EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2017 Net change in fund balance - total governmental funds (Statement 5) ($3,774,647) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Depreciation (2,959,683) Capital outlay 2,152,848 Capital outlay not capitalized 118,240 Various other transactions involving capital assets increase (decrease) net position on the Statement of Activities, but are not reported in governmental funds because they do not provide (or use) current financial resources: Contributions of infrastructure from private sources 2,380,713 Contributions of infrastructure to business-type activities (170,210) Gain (loss) on disposal of capital assets (65,306) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Change in delinquent taxes receivable (18,770) Change in delinquent special assessments receivable 5,570 Change in deferred special assessments receivable (544,874) The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effects of bond premiums and discounts when the debt is first issued, whereas amounts are deferred and amortized over the life of the debt in the Statement of Activities. Bonds and notes issued (311,000) Repayment of principal 8,058,525 Amortization of bond premiums and discounts 17,313 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the Statement of Activities include the effects of the changes in these expense accruals as follows: Change in accrued interest payable 103,819 Change in compensated absences payable (34,493) Change other post employment benefits liability and related deferred inflows of resources 483 Pension expense in governmental funds is measured by current year employee contributions. Pension expense in the Statement of Activities is measured by the change in the net pension liability and related deferred inflows and outflows of resources. This is the amount by which pension expense differed from pension contributions.(470,360) Change in net position of governmental activities (Statement 2)$4,488,168 The accompanying notes are an integral part of these financial statements. 40 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION Statement 7 PROPRIETARY FUNDS December 31, 2017 601 Water 602 Sewer Total Assets: Current assets: Cash and cash equivalents $5,477,346 $8,444,352 $13,921,698 Due from other governmental units - 1,614 1,614 Accounts receivable - net 157,008 219,949 376,957 Prepaid items 9,255 17,827 27,082 Inventory 30,368 - 30,368 Interfund loan receivable - 914,949 914,949 Total current assets 5,673,977 9,598,691 15,272,668 Noncurrent assets: Capital assets: Construction in progress 772,676 734,477 1,507,153 Equipment 143,429 331,225 474,654 Water and sewer systems 24,949,194 23,048,571 47,997,765 Total capital assets 25,865,299 24,114,273 49,979,572 Less: Allowance for depreciation (8,698,982) (9,448,640) (18,147,622) Net capital assets 17,166,317 14,665,633 31,831,950 Total assets 22,840,294 24,264,324 47,104,618 Deferred outflows of resources related to pensions 48,559 48,559 97,118 Total assets and deferred outflows 22,888,853 24,312,883 47,201,736 Liabilities: Current liabilities: Accounts payable 8,256 7,054 15,310 Salaries payable 3,917 3,917 7,834 Due to other governments 11,683 2,769 14,452 Other accrued liabilities 3,289 2,568 5,857 Compensated absences payable - current portion 19,065 19,065 38,130 Total current liabilities 46,210 35,373 81,583 Noncurrent liabilities: Compensated absences payable - noncurrent portion 14,213 14,213 28,426 Other post employment benefits 4,240 4,240 8,480 Net pension liability 169,149 169,149 338,298 Total noncurrent liabilities 187,602 187,602 375,204 Total liabilities 233,812 222,975 456,787 Deferred inflows of resources related to pensions 33,477 33,477 66,954 Total liabilities and deferred inflows 267,289 256,452 523,741 Net position: Investment in capital assets 17,166,317 14,665,633 31,831,950 Unrestricted 5,455,247 9,390,798 14,846,045 Total net position $22,621,564 $24,056,431 $46,677,995 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, 2017 601 Water 602 Sewer Totals Operating revenues: Charges for services $1,065,379 $1,672,456 $2,737,835 Hook-up charges 33,010 26,497 59,507 Water meter sales 37,606 - 37,606 Other operating revenue 14,839 10 14,849 Total operating revenues 1,150,834 1,698,963 2,849,797 Operating expenses: Personal services 264,673 268,134 532,807 Materials and supplies 172,864 51,038 223,902 Contractual services 102,165 93,992 196,157 MCES sewer charges - 942,972 942,972 Depreciation 580,804 477,094 1,057,898 Utilities 102,877 41,297 144,174 Other 21,866 27,294 49,160 Total operating expenses 1,245,249 1,901,821 3,147,070 Operating income (loss)(94,415)(202,858)(297,273) Nonoperating revenues: Investment earnings 39,612 66,876 106,488 Income (loss) before contributions and transfers (54,803)(135,982)(190,785) Contributions and transfers: Capital contributions from private sources 421,608 414,421 836,029 Capital contributions from governmental activities 166,246 3,964 170,210 Transfer in 104,969 104,969 209,938 Transfer out (35,727)(35,727)(71,454) Total contributions and transfers 657,096 487,627 1,144,723 Change in net position 602,293 351,645 953,938 Net position - January 1 22,019,271 23,704,786 45,724,057 Net position - December 31 $22,621,564 $24,056,431 $46,677,995 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, 2017 601 Water 602 Sewer Totals Cash flows from operating activities: Receipts from customers and users $1,136,110 $1,695,698 $2,831,808 Payment to suppliers (444,107) (1,301,838) (1,745,945) Payment to employees (248,394) (252,391) (500,785) Net cash flows provided by operating activities 443,609 141,469 585,078 Cash flows from noncapital financing activities: Interfund loans provided to other funds - (355,839) (355,839) Transfers in 104,969 104,969 209,938 Transfers out (35,727) (35,727) (71,454) Net cash flows provided by (used in) noncapital financing activities 69,242 (286,597) (217,355) Cash flows from capital and related financing activities: Acquisition of capital assets (23,000) - (23,000) Net cash flows provided by (used in) capital and related financing activities (23,000) 0 (23,000) Cash flows from investing activities: Investment earnings 39,612 66,876 106,488 Net increase (decrease) in cash and cash equivalents 529,463 (78,252) 451,211 Cash and cash equivalents - January 1 4,947,883 8,522,604 13,470,487 Cash and cash equivalents - December 31 $5,477,346 $8,444,352 $13,921,698 Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) ($94,415) ($202,858) ($297,273) Adjustments to reconcile operating income (loss) to net cash flows from operating activities: Depreciation 580,804 477,094 1,057,898 Changes in assets and liabilities: Decrease (increase) in due from other governmental units - 409 409 Decrease (increase) in accounts receivable - net (14,724) (3,674) (18,398) Decrease (increase) in prepaid items 906 1,259 2,165 Decrease (increase) in inventory 51,459 - 51,459 Decrease (increase) in deferred outflows of resources 35,592 35,592 71,184 Increase (decrease) in payables (96,700) (146,504) (243,204) Increase (decrease) in other accrued liabilities (46) (582) (628) Increase (decrease) in compensated absences 83 83 166 Increase (decrease) in other post employment benefits 4,240 4,240 8,480 Increase (decrease) in net pension liability (31,955) (31,955) (63,910) Increase (decrease) in deferred inflows of resources 8,365 8,365 16,730 Total adjustments 538,024 344,327 882,351 Net cash provided by operating activities $443,609 $141,469 $585,078 Noncash investing, capital and financing activities: Contributions of capital assets $587,854 $418,385 $1,006,239 Business-Type Activities - Enterprise Funds The accompanying notes are an integral part of these financial statements. 43 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET POSITION Statement 10 FIDUCIARY FUNDS December 31, 2017 Assets: Cash and investments $1,719,511 Liabilities: Deposits payable $1,719,511 The accompanying notes are an integral part of these financial statements. 44 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes, Minnesota (the City) is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The basic financial statements of the City have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of significant accounting policies: A. FINANCIAL REPORTING ENTITY In accordance with GASB pronouncements and accounting principles generally accepted in the United States of America, the financial statements of the reporting entity include those of the City (the primary government) and its component units. The component units discussed below are included in the City’s reporting entity because of the significance of their operational or financial relationships with the City. COMPONENT UNITS In conformity with accounting principles generally accepted in the United States of America, the financial statements of the component units have been included in the financial report as blended component units. The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were a part of the City’s operation because the governing body is substantially the same as the governing body of the City and a financial benefit or burden relationship exists between the City and the EDA. The EDA does not issue separate financial statements. The Housing and Development Authority (HRA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City’s operations because the members of the City Council serve as commission members and a financial benefit or burden relationship exists between the City and the HRA. The HRA has not yet incurred any financial activity. B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the primary government and its component units. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or business-type activity are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or business-type activity. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or business-type activity and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or business-type activity. Taxes and other items not included among program revenues are reported instead as general revenues. The fund financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. The 45 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each displayed as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or incidental activities. The City reports the following major governmental funds: General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. General Obligation Improvement Bonds of 2005A Fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. The fund was closed in 2017. General Obligation Improvement Note of 2009A Fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. The note was used to finance improvement projects at the I-35E and County Road 14 interchange. General Obligation Improvement Bonds of 2016B Fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long-term debt. Area and Unit Charge Fund accounts for the collection of water and sewer unit charges to be used for debt payments and construction of governmental infrastructure. The City reports the following major proprietary funds: The Water Fund accounts for customer water service charges which are used to finance water system operating expenses. The Sewer Fund accounts for customer sewer service charges which are used to finance sanitary sewer system operating expenses. Additionally, the City reports the following fund type: Agency funds account for assets held as an agent for individuals, private organizations and other governmental units. The City’s agency fund accounts for pass-through contractor’s deposits relating to prospective developments. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements 46 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 imposed by the provider have been met. The City’s only fiduciary funds are agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all revenues, except reimbursement grants, to be available if they are collected within 60 days of the end of the current fiscal period. Reimbursement grants are considered available if they are collected within one year of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Property taxes, special assessments, intergovernmental revenues, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the City. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are transactions that would be treated as revenues, expenditures or expenses if they involved external organizations, such as buying goods and services or payments in lieu of taxes, are similarly treated when they involve other funds of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Proprietary Funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water and sewer enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. D. BUDGETS Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year-end. Budgeted amounts are reported as originally adopted and as amended by the City Council. Budgeted expenditure appropriations lapse at year end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is at present not considered necessary to assure effective budgetary control or to facilitate effective cash management. 47 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 E. LEGAL COMPLIANCE – BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget (including the General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The City Administrator is authorized to transfer appropriations within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may be authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to determine and calculate user charges. These debt service and budget amounts represent general obligation bond indenture provisions and net income for operation and capital maintenance and are not reflected in the financial statements. 7. A capital improvement program is reviewed periodically by the City Council for the Capital Project Funds. However, appropriations for major projects are not adopted until the actual bid award of the improvement. The appropriations are not reflected in the financial statements. 8. Expenditures may not legally exceed budgeted appropriations at the department level unless approved by the City Council. Therefore, the legal level of budgetary control is at the department level (i.e. administration, community development, public safety, public services, and other). 9. The City Council may authorize transfers of budgeted amounts between City funds. F. CASH AND INVESTMENTS Cash and investment balances from all funds are pooled and invested to the extent available in authorized investments. Investment income is allocated to individual funds on the basis of the fund's equity in the cash and investment pool. Investments are stated at fair value, except for investments in external investment pools that meet GASB 79 requirements, which are stated at amortized cost. Interest earnings are accrued at year-end. For purposes of the Statement of Cash Flows, the Proprietary Funds consider all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the Proprietary Fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. 48 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Permanently restricted cash and investments represents the principal and earnings portion of resources received that must be retained in a permanent fund. Only earnings from these funds may be used for purposes that support environmental maintenance and improvements. G. PROPERTY TAX REVENUE RECOGNITION The City Council annually adopts a tax levy and certifies it to the County in December (levy/assessment date) of each year for collection in the following year. The County is responsible for billing and collecting all property taxes for itself, the City, the local School District and other taxing authorities. Such taxes become a lien on January 1 and are recorded as receivables by the City at that date. Real property taxes are payable (by property owners) on May 15 and October 15 of each calendar year. Personal property taxes are payable by taxpayers on February 28 and June 30 of each year. These taxes are collected by the County and remitted to the City on or before July 15 and December 15 of the same year. Delinquent collections for November and December are received the following January. The City has no ability to enforce payment of property taxes by property owners. The County possesses this authority. Within the government-wide financial statements, the City recognizes property tax revenue in the period for which taxes were levied. Uncollectible property taxes are not material and have not been reported. Within the governmental fund financial statements, the City recognizes property tax revenue when it becomes both measurable and available to finance expenditures of the current period. In practice, current and delinquent taxes and received by the City in July, December, and the following January are recognized as revenue for the current year. Taxes collected by the county by December 31 (remitted to the City the following January) are classified as due from county. Taxes not collected by the county by December 31 are classified as delinquent taxes receivable. Delinquent taxes receivable are fully offset by deferred inflows of resources because they are not available to finance current expenditures. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per State Statute 473F. This statute provides a means of spreading a portion of the taxable valuation of commercial/industrial real property to various taxing authorities within the defined metropolitan area. The valuation "shared" is a portion of commercial/industrial property valuation growth since 1971. H. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited properties for the cost or a portion of the cost of special assessment improvement projects in accordance with State Statutes. These assessments are collectible by the City over a term of years usually consistent with the term of the related bond issue. Collection of annual installments (including interest) is handled by the County Auditor in the same manner as property taxes. Property owners are allowed to (and often do) prepay future installments without interest or prepayment penalties. Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. Within the government-wide financial statements, the City recognizes special assessment revenue in the period that the assessment roll was adopted by the City Council. Uncollectible special assessments are not material and have not been reported. Within the fund financial statements, the revenue from special assessments is recognized by the City when it becomes measurable and available to finance expenditures of the current fiscal period. In practice, current and delinquent special assessments received by the City are recognized as revenue for the current year. Special assessments are collected by the County and remitted by December 31 (remitted to the City the following January) and are also recognized as revenue for the current year. All remaining delinquent, deferred and special deferred assessments receivable in governmental funds are completely offset by deferred inflows of resources. I. INVENTORY For governmental funds, the original cost of materials and supplies are recorded as expenditures at the time of purchase. These funds do not maintain material amounts of inventories. Inventories of the proprietary funds are stated at cost, which approximates market, using the first-in, first-out (FIFO) method. J. PREPAID ITEMS Certain prepayments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Prepaid items are reported using the consumption method and recorded as expenditures/expenses at the time of consumption. K. INTERFUND TRANSACTIONS During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures / expenses initially made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund. Such advances are classified as “advances to/from other funds.” Long- term interfund loans are classified as “interfund loan receivable/payable.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” All other interfund transactions are reported as transfers. 50 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 L. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure assets (e.g. roads, sidewalks, street lights, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. All existing City infrastructure has been capitalized regardless of date placed in service. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. For the year ended December 31, 2017, no interest was capitalized in connection with construction in progress. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Position. Capital assets are depreciated using the straight-line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation purposes. Useful lives vary from 3 to 30 years for buildings, office furniture and equipment, vehicles, machine shop and equipment and other assets, and 15 to 50 years for infrastructure. M. COMPENSATED ABSENCES It is the City’s policy to permit employees to accumulate earned but unused vacation, PTO (Personal Time Off), extended leave and sick pay benefits. All vacation pay and PTO and the portion of sick pay allowable as severance is accrued in the government-wide and proprietary fund financial statements. The current portion is calculated based on historical trends. N. LONG-TERM OBLIGATIONS In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are amortized over the life of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. O. DEFINED BENEFIT PENSION PLANS For purposes of measuring the net pension liability, deferred outflows and inflows of resources, and pension expense, information about the fiduciary net position of the Public Employees Retirement Association (PERA) and additions to and deductions from PERA’s fiduciary net position have been 51 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 determined on the same basis as they are reported by PERA, except that PERA’s fiscal year end is June 30. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. P. DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense) that time. The City has one item that qualifies for reporting in the category. It is the pension related deferred outflows of resources reported in the government-wide Statement of Net Position and the proprietary funds Statement of Net Position. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to future periods, and therefore, will not be recognized as an inflow of resources (revenue) until that time. The City has pension and OPEB related deferred inflows of resources reported in the government-wide Statement of Net Pension and the proprietary funds Statements of Net Position. The City also has a type of item, which arises only under a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental fund balance sheet. The governmental funds report unavailable revenues from the following sources: property taxes and special assessments not collected within 60 days from year-end. Q. FUND BALANCE CLASSIFICATIONS In the fund financial statements, governmental funds report fund balance in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable - consists of amounts that are not in spendable form, such as prepaid items and corpus of any permanent fund. Restricted - consists of amounts related to externally imposed constraints established by creditors, grantors or contributors; or constraints imposed by state statutory provisions. Committed - consists of internally imposed constraints. These constraints are established by a resolution approved by the City Council, and committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by resolution. Assigned - consists of internally imposed constraints for the specific purpose of the City’s intended use. These constraints are established by the City Council and/or management. The City Council passed a resolution authorizing the Finance Director to assign fund balances and their intended uses. Unassigned - is the residual classification for the general fund and also reflects negative residual amounts in other funds. When both restricted and unrestricted resources are available for use, it is the City’s policy to first use restricted resources, and then use unrestricted resources as they are needed. 52 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 When committed, assigned or unassigned resources are available for use, it is the City’s policy to use resources in the following order: 1) committed 2) assigned and 3) unassigned. The City formally adopted a fund balances policy for the general fund. The policy establishes an unassigned fund balance range of 40% - 50% of general fund operating expenditures. R. USE OF ESTIMATES The preparation of financial statements in accordance with generally accepted accounting principles (GAAP) requires management to make estimates that affect amounts reported in the financial statements during the reporting period. Actual results could differ from such estimates. Note 2 DEPOSITS AND INVESTMENTS A. DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Custodial Credit Risk – Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Minnesota Statutes require that insurance, surety bonds or collateral protect all City deposits. The market value of collateral pledged must equal 110% of deposits not covered by insurance or bonds. The City has no additional deposit policies addressing custodial credit risk. At December 31, 2017, the bank balance of the City’s deposits was insured by the FDIC or covered by pledged collateral held in the City’s name. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. Authorized collateral includes the following: a) United States government treasury bills, treasury notes, treasury bonds; b) Issues of United States government agencies and instrumentalities as quoted by a recognized industry quotation service available to the government entity; c) General obligation securities of any state or local government with taxing powers which is rated “A” or better by a national bond rating service, or revenue obligation securities of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; d) General obligation securities of a local government with taxing powers may be pledged as collateral against funds deposited by that same local government entity; e) Irrevocable standby letters of credit issued by Federal Home Loan Banks to a municipality accompanied by written evidence that the bank’s public debt is rated “AA” or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation; and f) Time deposits that are fully insured by the Federal Deposits Insurance Corporation. At December 31, 2017, the carrying amount of the City’s deposits with financial institutions was $257,836. 53 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 B. INVESTMENTS Minnesota Statutes authorize the City to invest in the following: a) Direct obligations or obligations guaranteed by the United States or its agencies, its instrumentalities, or organizations created by an act of congress, excluding mortgage-backed securities defined as high risk. b) Shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are in securities described in (a) above, general obligation tax-exempt securities, or repurchase or reverse repurchase agreements. c) State and local securities as follows: 1) any security which is a general obligation of any state or local government with taxing powers which is rated “A” or better by a national bond rating service; 2) any security which is a revenue obligation of any state or local government with taxing powers which is rated “AA” or better by a national bond rating service; and 3) a general obligation of the Minnesota Housing Finance Agency which is a moral obligation of the State of Minnesota and is rated “A” or better by a national bond rating agency. d) Bankers acceptance of United States banks. e) Commercial paper issued by United States corporations or their Canadian subsidiaries, of the highest quality, and maturing in 270 days or less. f) Repurchase or reverse repurchase agreements with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000; a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York; certain Minnesota securities broker-dealers; or, a bank qualified as a depositor. g) General obligation temporary bonds of the same governmental entity issued under section 429.091, subdivision 7; 469.178, subdivision 5; or 475.61, subdivision 6. 54 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 At December 31, 2017, the City had the following investments and maturities: Fair Less Investment Type Rating Value Than 1 1 - 5 6 - 8 Wells Fargo money market NR $4,275,289 $4,275,289 $ - $ - Morgan Stanley money market NR 24,165 24,165 - - 4M Fund NR 7,207,927 7,207,927 - - Brokered CD's NR 16,419,585 6,887,755 8,413,876 1,117,954 Municipal bonds * 10,908,237 1,568,897 8,746,306 593,034 Federal Home Loan Mortgage Corp.AAA 1,482,210 - - 1,482,210 Total $40,317,413 $19,964,033 $17,160,182 $3,193,198 NR - Not Rated Total investments $40,317,413 * AAA $1,975,589; AA+ $463,359 Deposits 257,836 AA $3,507,002; AA- $2,967,505 Petty cash 940 A+ $710,532 Total cash and investments $40,576,189 Investment Maturities (in Years) These amounts are presented in the financial statements as follows: Cash and investments: Governmental and business-type (Statement 1)$38,856,678 Fiduciary (Statement 10)1,719,511 Total $40,576,189 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. The hierarchy has three levels. Level 1 investments are valued using inputs that are based on quoted prices in active markets for identical assets. Level 2 investments are valued using inputs that are based on quoted prices for similar assets or inputs that are observable, either directly or indirectly. Level 3 investments are valued using inputs that are unobservable. 55 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 The City has the following recurring fair value measurements at December 31, 2017: Investment Type 12/31/2017 Level 1 Level 2 Level 3 Investments at fair value: Brokered CD's $16,419,585 $ - $16,419,585 $ - Municipal bonds 10,908,237 - 10,908,237 - Federal Home Loan Mortgage Corp.1,482,210 - 1,482,210 - $0 $28,810,032 $0 Investments not categorized: Wells Fargo money market 4,275,289 ` Morgan Stanley money market 24,165 4M Fund 7,207,927 Total investments $40,317,413 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. 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 56 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 investments are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Concentration of Credit Risk – Concentration of credit risk is the risk of loss that may be attributed to the magnitude of a government’s investment in a single issuer. The City places no limit on the amount it may invest in any one issuer. At December 31, 2017, no individual investments exceeded 5% of the City’s total investment portfolio. Note 3 RECEIVABLES Significant receivable balances not expected to be collected within one year of December 31, 2017 are as follows: Property Special Taxes Assessments Notes Receivable Receivable Receivable Total Major Funds: General Fund $35,344 $ - $ - $35,344 G.O. Improvement Note of 2009A - 2,630,915 - 2,630,915 G.O. Improvement Bonds of 2016B - 2,994,379 - 2,994,379 Area and Unit Charge - 1,029,733 - 1,029,733 Nonmajor Funds 8,179 1,042,887 225,000 1,276,066 Total $43,523 $7,697,914 $225,000 $7,966,437 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 $56,559 $329 $56,888 G.O. Improvement Note of 2009A - 2,639,483 2,639,483 G.O. Improvement Bonds of 2016B - 2,994,379 2,994,379 Area and Unit Charge - 1,126,587 1,126,587 Nonmajor Funds 13,088 1,190,885 1,203,973 Total $69,647 $7,951,663 $8,021,310 57 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 5 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2017 was as follows: Beginning Ending Balance Increases Decreases Transfers Balance Governmental activities: Capital assets, not being depreciated: Land $3,275,859 $44,200 $ - $ - $3,320,059 Wetland credits - 162,372 - - 162,372 Construction in progress 8,961,062 2,742,038 (9,050,652) (170,210) 2,482,238 Total capital assets, not being depreciated 12,236,921 2,948,610 (9,050,652) (170,210) 5,964,669 Capital assets, being depreciated: Buildings 6,891,847 4,029,901 - - 10,921,748 Office equipment and furniture 659,440 124,186 - - 783,626 Vehicles 3,417,668 1,102,354 (175,204) - 4,344,818 Machinery and shop equipment 2,309,413 275,921 (28,017) - 2,557,317 Other equipment 1,034,126 77,284 - - 1,111,410 Infrastructure 80,738,460 5,144,197 - - 85,882,657 Total capital assets, being depreciated 95,050,954 10,753,843 (203,221)0 105,601,576 Less accumulated depreciation for: Buildings 4,185,492 360,245 - - 4,545,737 Office equipment and furniture 501,736 45,113 - - 546,849 Vehicles 2,046,936 396,889 (115,362) - 2,328,463 Machinery and shop equipment 1,292,081 154,165 (22,553) - 1,423,693 Other equipment 827,741 16,573 - - 844,314 Infrastructure 57,279,464 1,986,698 - - 59,266,162 Total accumulated depreciation 66,133,450 2,959,683 (137,915)0 68,955,218 Total capital assets being depreciated - net 28,917,504 7,794,160 (65,306) (170,210) 36,646,358 Governmental activities capital assets - net $41,154,425 $10,742,770 ($9,115,958) ($170,210) $42,611,027 Beginning Ending Balance Increases Decreases Transfers Balance Business-type activities: Capital assets, not being depreciated: Construction in progress $5,617,436 $1,006,237 ($5,116,520) $ - $1,507,153 Capital assets, being depreciated: Machinery and shop equipment 474,654 - - - 474,654 Water and sewer systems 42,858,242 4,969,313 - 170,210 47,997,765 Total capital assets, being depreciated 43,332,896 4,969,313 0 170,210 48,472,419 Accumulated depreciation for: Machinery and shop equipment 307,215 19,870 - - 327,085 Water and sewer systems 16,782,509 1,038,028 - - 17,820,537 Total accumulated depreciation 17,089,724 1,057,898 0 0 18,147,622 Total capital assets being depreciated - net 26,243,172 3,911,415 0 170,210 30,324,797 Business-type activities capital assets - net $31,860,608 $4,917,652 ($5,116,520) $170,210 $31,831,950 58 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Depreciation expense was charged to functions/programs of the City as follows: Governmental activities: General government $361,534 Public safety 346,690 Public services 2,248,202 Conservation of natural resources 850 Community development 2,407 Total depreciation expense - governmental activities $2,959,683 Business-type activities: Water $580,804 Sewer 477,094 Total depreciation expense - business-type activities $1,057,898 59 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 6 LONG-TERM DEBT The City issues general obligation bonds and certificates of indebtedness to provide funds for the acquisition and construction of major capital facilities and equipment. City indebtedness at December 31, 2017 consisted of the following: Final Issue Maturity Interest Original Payable Date Date Rate Issue 12/31/17 Governmental activities: General Obligation Bonds: 2015A Certificates of Indebtedness 02/01/15 12/31/18 1.00% $198,250 $66,250 2015B Certificates of Indebtedness 08/25/15 12/31/20 1.50%963,000 593,000 2016A Certificates of Indebtedness 02/01/16 12/31/19 1.00%469,000 314,000 2017A Certifciates of Indebtedness 03/01/17 12/31/20 1.00%311,000 311,000 G.O. CIP Refunding Bonds, Series 2006E 11/01/06 02/01/18 4.00% 2,990,000 425,000 G.O. TIF Bonds, Series 2007A 07/15/07 02/01/24 4.00% - 4.125% 4,215,000 1,625,000 G.O. Refunding Bonds, Series 2012A 11/15/12 02/01/24 1.00% - 2.00% 2,015,000 1,270,000 G.O. Bonds 2015A 08/01/15 02/01/31 2.00% - 3.00% 3,095,000 2,905,000 EDA Lease Revenue Bonds 2015B 10/01/15 04/01/36 2.00% - 3.00% 4,350,000 4,185,000 G.O. Utility Revenue Bonds, Series 2016A 11/23/16 02/01/27 2.00% 1,420,000 1,420,000 G.O. Tax Abatement Refunding Bonds 2016C 11/23/16 02/01/23 1.00% - 1.50% 1,600,000 1,600,000 Total General Obligation Bonds 21,626,250 14,714,250 Special Assessment Bonds: G.O. Imp & Utility Revenue Bonds, Series 2010A 07/09/10 02/01/20 2.00% - 3.00% 1,000,000 325,000 G.O. Improvement Bonds, Series, 2013A 07/15/13 02/01/24 1.25% - 4.00% 615,000 435,000 G.O. Improvement Bonds, Series 2014A 11/20/14 02/01/26 0.40% - 2.30% 2,645,000 2,170,000 G.O. Improvement Refunding Bonds, Series 2016B 11/23/16 02/01/21 0.875% - 1.50% 1,975,000 1,975,000 Total Special Assessment Bonds 6,235,000 4,905,000 G.O. Capital Note, Series 2016A 04/14/16 2/1/2026 2.00%294,525 233,475 Unamortized bond premiums 199,750 142,182 Unamortized bond discounts (51,997) (18,664) Compensated absences payable N/A 768,908 Total Government Activities $28,303,528 $20,745,151 Business-Type Activities: Compensated absences payable N/A $66,556 60 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 CHANGES IN LONG-TERM DEBT The following is a schedule of changes in City indebtedness for the year ended December 31, 2017: Beginning Ending Due Within Balance Additions Deletions Balance One Year Governmental Activities: General obligation bonds $18,196,250 $311,000 $3,793,000 $14,714,250 $2,084,250 Special assessment bonds 7,795,000 - 2,890,000 4,905,000 1,015,000 Total bonded debt 25,991,250 311,000 6,683,000 19,619,250 3,099,250 Improvement note 1,345,000 - 1,345,000 - - Capital note 264,000 - 30,525 233,475 31,350 Unamortized bond premiums 166,322 - 24,140 142,182 - Unamortized bond discounts (25,491) - (6,827) (18,664) - Compensated absences payable 734,415 614,868 580,375 768,908 492,042 Total governmental activities $28,475,496 $925,868 $8,656,213 $20,745,151 $3,622,642 Business-Type Activities: Compensated absences payable $66,390 $44,663 $44,497 $66,556 $38,130 DESCRIPTIONS OF LONG-TERM DEBT General Obligation Bonds – The bonds were issued for improvements or projects which benefited the City as a whole and, therefore, are repaid from ad valorem levies. Special Assessment Bonds – The bonds were issued to finance various improvements and will be repaid primarily from special assessments levied on the properties benefiting from the improvements. However, some issues are partly financed by ad valorem levies. Improvement Note – This note was used to finance improvement projects at the I-35E and County Road 14 interchange and was repaid primarily with special assessments levied on the properties benefiting from the improvements. Capital Note – This note was issued to fund the cost of the acquisition of capital equipment to be used by the North Metro Telecommunications Commission in the operation of a cable communications system. The note will be repaid from franchise fee revenue. Utility Revenue Bonds – These bonds were issued to finance various improvements in the water fund and will be repaid primarily from pledged revenues derived from the constructed assets. 61 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 DEBT SERVICE REQUIREMENTS Future principal and interest payments required to retire long-term debt are as follows: Years Ending December 31 Principal Interest Principal Interest 2018 $3,099,250 $417,929 $31,350 $4,670 2019 2,679,000 365,296 32,175 4,042 2020 2,506,000 320,811 33,000 3,399 2021 2,150,000 274,974 33,000 2,739 2022 1,440,000 236,339 33,825 4,191 2023-2027 4,675,000 742,488 70,125 - 2028-2032 1,970,000 361,919 - - 2033-2037 1,100,000 90,000 - - Total $19,619,250 $2,809,756 $233,475 $19,041 Bonded Debt Capital Note It is not practicable to determine the specific year for payment of long-term compensated absences payable. For governmental activities, compensated absences are liquidated by the General Fund. For business-type activities, compensated absences are liquidated by the Water and Sewer Funds. DEFERRED AD VALOREM TAX LEVIES – BONDED DEBT All long-term bonded indebtedness is backed by the full faith and credit of the City, including special assessment and revenue bond issues. General Obligation bond issues are financed by ad valorem tax levies and special assessment bond issues are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be financed partially or completely by ad valorem tax levies is sold, specific annual amounts of such tax levies are stated in the bond resolution and the County Auditor is notified and instructed to levy these taxes over the appropriate years. The future tax levies are subject to cancellation when and if the City has provided alternative sources of financing. The City Council is required to levy any additional taxes found necessary for full payment of principal and interest. The future scheduled tax levies are not shown as assets in the accompanying financial statements. Future scheduled tax levies for all bonds outstanding at December 31, 2017 totaled $13,005,401. CURRENT REFUNDINGS On November 23, 2016, the City issued $1,975,000 of Taxable General Obligation Improvement Refunding Bonds, Series 2016B with an average interest rate of 1.29%. On February 1, 2017, the net proceeds were used to redeem the 2018 through 2021 maturities of the Taxable General Obligation Improvement Bonds, Series 2005A with interest rates of 5.00% - 5.15%. The City refunded the bonds to reduce its total debt service payments over four years by $145,931 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $130,682. On November 23, 2016, the City issued $1,600,000 of General Obligation Tax Abatement Refunding Bonds, Series 2016C with an average interest rate of 1.34%. On February 1, 2017, the net proceeds were used to redeem the 2018 through 2023 maturities of the General Obligation Tax Abatement Bonds, Series 2006C with interest rates of 4.25% - 4.30%. The City refunded the bonds to reduce its total debt service payments over six 62 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 years by $133,718 and to obtain an economic gain (difference between the present value of the debt service payments on the old and new debt) of $124,952. REVENUE PLEDGED Future revenue pledged for the payment of long-term debt is as follows: 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 2015 - 2020 $1,316,355 $606,792 $633,871 2006E G.O. CIP Bonds Infrastructure improvements Ad valorem taxes 2007 - 2017 $433,500 $431,657 $462,493 2007A G.O. TIF Bonds Infrastructure improvements MSA funding via 2008 - 2023 $1,874,899 $475,481 $475,481 transfers, tax increment 2011 - 2019 $339,925 $111,955 $46,247 2012A G.O. Bonds Infrastructure improvements Ad valorem taxes and 2013 - 2023 $1,328,093 $242,020 $200,014 Special assessments 2013A Improvement Bonds Infrastructure improvements Special assessments 2014 - 2023 $494,160 $76,853 $63,606 2014A Improvement Bonds Infrastructure improvements Special assessments 2015 - 2025 $2,294,501 $402,927 $251,212 2015A G.O. Bonds Infrastructure improvements Ad valorem taxes 2016 - 2030 $3,397,356 $257,817 $271,621 2015B EDA Lease Revenue Bonds Construction of a fire station Ad valorem taxes 2016 - 2035 $5,687,956 $299,942 $315,855 2016A Capital Note Cable communications equipment Franchise fees 2016 - 2025 $252,516 $37,595 $37,595 2016A Utility Revenue Bonds Water infrastructure improvements 2017 - 2026 $1,565,300 $20,269 $274,474 2016B Improvement Bonds Infrastructure improvements Special assessments, 2017 - 2020 $2,028,048 $17,015 $ - tax increment 2016C G.O. Tax Abatement Bonds Infrastructure improvements Ad valorem taxes 2017 - 2022 $1,668,913 $14,671 $259,710 Trunk utility charges via transfers Revenue Pledged Current Year 2010A Improvement and Utility Revenue Bonds General and water infrastructure improvements Special assessments and trunk charges Note 7 CONDUIT DEBT The City has issued Industrial Development Revenue Bonds and Commercial Revenue Notes to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial facilities which are deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private sector entity served by the bond issue. The City is not obligated in any manner for the repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the 63 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 accompanying financial statements. At December 31, 2017, one series of Industrial Revenue Bonds was outstanding with an aggregate remaining principal balance of $60,000, and one series of Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $1,097,227. Note 8 DEFINED BENEFIT PENSION PLANS – PERA A. PLAN DESCRIPTION The City participates in the following cost-sharing multiple-employer defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA’s defined benefit pension plans are established and administered in accordance with Minnesota Statutes, Chapters 353 and 356. PERA’s defined benefit pension plans are tax qualified plans under Section 401(a) of the Internal Revenue Code. 1. General Employees Retirement Fund (GERF) All full-time (with the exception of employees covered by PEPFF) and certain part-time employees of the City are covered by the General Employees Retirement Fund (GERF). GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. The Basic Plan was closed to new members in 1967. All new members must participate in the Coordinated Plan. 2. Public Employees Police and Fire Fund (PEPFF) The PEPFF, originally established for police officers and firefighters not covered by a local relief association, now covers all police officers and firefighters hired since 1980. Effective July 1, 1999, the PEPFF also covers police officers and firefighters belonging to a local relief association that elected to merge with and transfer assets and administration to PERA. B. BENEFITS PROVIDED PERA provides retirement, disability, and death benefits. Benefit provisions are established by state statute and can only be modified by the state legislature. Benefit increases are provided to benefit recipients each January. Increases are related to the funding ratio of the plan. Members in plans that are at least 90% funded for two consecutive years are given 2.5% increases. Members in plans that have not exceeded 90% funded, or have fallen below 80%, are given 1% increases. The benefit provisions stated in the following paragraphs of this section are current provisions and apply to active plan participants. Vested, terminated employees who are entitled to benefits but are not receiving them yet are bound by the provisions in effect at the time they last terminated their public service. 1. GERF Benefits Benefits are based on a member’s highest salary for any five successive years of allowable service, age, and years of credit at termination of service. Two methods are used to compute benefits for PERA’s Coordinated and Basic Plan members. The retiring member receives the higher of a step- 64 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 rate benefit accrual formula (Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for a Basic Plan member is 2.2% of average salary for each of the first ten years of service and 2.7% for each remaining year. The annuity accrual rate for a Coordinated Plan member is 1.2% of average salary for each of the first ten years and 1.7% for each remaining year. Under Method 2, the annuity accrual rate is 2.7% of average salary for Basic Plan members and 1.7% for Coordinated Plan members for each year of service. For members hire prior to July 1, 1989, a full annuity is available when age plus years of service equal 90 and normal retirement age is 65. For members hired on or after July 1, 1989, normal retirement age is the age for unreduced Social Security benefits capped at 66. 2. PEPFF Benefits Benefits for the PEPFF members first hired after June 30, 2010, but before July 1, 2014, vest on a prorated basis from 50% after five years up to 100% after ten years of credited service. Benefits for PEPFF members first hired after June 30, 2014, vest on a prorated bases from 50% after ten years up to 100% after twenty years of credited service. The annuity accrual rate is 3% of average salary for each year of service. For PEPFF members who were first hired prior to July 1, 1989, a full annuity is available when age plus years of service equal at least 90. C. CONTRIBUTIONS Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions. Contribution rates can only be modified by the state legislature. 1. GERF Contributions Basic Plan members and Coordinated Plan members were required to contribute 9.1% and 6.5%, respectively, of their annual covered salary in calendar year 2017. The City was required to contribute 11.78% of pay for Basic Plan members and 7.5% for Coordinated Plan members in calendar year 2017. The City contributions to the GERF for the year ended December 31, 2017 were $192,510. The City contributions were equal to the required contributions as set by state statute. 2. PEPFF Contributions Plan members were required to contribute 10.8% of their annual covered salary in calendar year 2017. The City was required to contribute 16.2% of pay for PEPFF members in calendar year 2017. The City contributions to the PEPFF for the year ended December 31, 2017 were $416,665. The City contributions were equal to the required contributions as set by state statute. D. PENSION COSTS 1. GERF Pension Costs At December 31, 2017, the City reported a liability of $2,642,949 for its proportionate share of GERF’s net pension liability. The City’s net pension liability reflected a reduction due to the State of Minnesota’s contribution of $6 million to the fund in 2017. The State of Minnesota is considered a non-employer contributing entity and the state’s contribution meets the definition of a special funding situation. The State of Minnesota’s proportionate share of the net pension liability 65 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 associated with the City totaled $33,230. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2017, the City’s proportionate share was 0.0414%, which was an increase of 0.0027% from its proportionate share measured as of June 30, 2016. For the year ended December 31, 2017, the City recognized pension expense of $380,051 for its proportionate share of the GERF’s pension expense. In addition, the City recognized an additional $960 as pension expense (and grant revenue) for its proportionate share of the State of Minnesota’s contribution of $6 million to the GERF. At December 31, 2017, the City reported its proportionate share of the GERF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $87,104 $171,203 Changes in actuarial assumptions 438,787 264,956 Difference between projected and actual investment earnings 19,277 - Changes in proportion 118,300 86,926 Contributions paid to PERA subsequent to the measurement date 95,266 - Total $758,734 $523,085 $95,266 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31, Expense 2018 $100,060 2019 163,129 2020 (10,618) 2021 (112,188) 2022 - Thereafter - 2. PEPFF Pension Costs At December 31, 2017, the City reported a liability of $3,469,806 for its proportionate share of the PEPFF’s net pension liability. The net pension liability was measured as of June 30, 2017 and the total pension liability used to calculate the net pension liability was determined by an actuarial 66 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 valuation as of that date. The City’s proportion of the net pension liability was based on the City’s contributions received by PERA during the measurement period for employer payroll paid dates from July 1, 2016 through June 30, 2017, relative to the total employer contributions received from all of PERA’s participating employers. At June 30, 2017, the City’s proportion was 0.257%, which was a decrease of 0.002% from its proportion measured as of June 30, 2016. The City also recognized $23,130 for the year ended December 31, 2017 as revenue (and an offsetting reduction of net pension liability) for its proportionate share of the State of Minnesota’s on-behalf contributions to the PEPFF. Legislation passed in 2013 required the State of Minnesota to begin contributing $9 million to the PEPFF each year, starting in fiscal year 2014. For the year ended December 31, 2017, the City recognized pension expense of $874,127 for its proportionate share of the PEPFF’s pension expense. At December 31, 2017, the City reported its proportionate share of the PEPFF’s deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual economic experience $79,868 $927,062 Changes in actuarial assumptions 4,540,933 4,926,263 Difference between projected and actual investment earnings 46,997 - Changes in proportion 75,053 27,560 Contributions paid to PERA subsequent to the measurement date 220,753 - Total $4,963,604 $5,880,885 A total of $220,753 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability during 2018. Other amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as outflows: Year Ended Pension December 31, Expense 2018 $73,515 2019 73,518 2020 (53,354) 2021 (256,922) 2022 (974,791) Thereafter - The net pension liability will be liquidated by the general, water and sewer funds. 67 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 E. ACTUARIAL ASSUMPTIONS The total pension liability in the June 30, 2017 actuarial valuation was determined using the following actuarial assumptions: Inflation 2.50% per year Active member payroll growth 3.25% per year Investment rate of return 7.50% Salary increases were based on a service-related table. Mortality rates for active members, retirees, survivors, and disabilitants were based on RP-2014 tables for the GERF and PEPFF for males or females, as appropriate, with slight adjustments to fit PERA’s experience. Cost of living benefit increases for retirees are assumed to be 1% per year for the GERF through 2044 and PEPFF through 2064 and then 2.5% thereafter. Actuarial assumptions used in the June 30, 2017 valuation were based on the results of actuarial experience studies. The most recent four-year experience study in the GERF was completed in 2015. The most recent five-year experience study for PEPFF was completed in 2016. The following changes in actuarial assumptions occurred in 2017: General Employees Fund The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. Police and Fire Fund The single discount rate was changed from 5.6% to 7.5%. Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non-vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP-2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. 68 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing Joint and Survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.00 perfect for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. The long-term expected rate of return on pension plan investments is 7.5%. The State Board of Investment, which manages the investments of PERA, prepares an analysis of the reasonableness on a regular basis of the long-term expected rate of return using a building-block method in which best- estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce an expected long-term rate of return by weighting the expected future rates of return by the target asset allocation percentages. The target allocation and best estimates of geometric real rates of return for each major asset are summarized in the following table: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic stocks 39%5.10% International stocks 19%5.30% Bonds 20%0.75% Alternative assets 20%5.90% Cash 2%0.00% Totals 100% F. DISCOUNT RATE The discount rate used to measure the total pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and employees will be made at the rate set in Minnesota statutes. Based on that assumption, the fiduciary net position of the GERF and the PEPFF was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. At June 30, 2016, the Police and Fire Fund projected benefit payments to exceed the funds projected fiduciary net position after June 30, 2056 and therefore used a single discount rate of 5.6%, which as stated above, increased to 7.5% at June 30, 2017. 69 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 G. PENSION LIABILITY SENSITIVITY The following presents the City’s proportionate share of the net pension liability for all plans it participates in, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate 1 percentage point lower or 1 percentage point higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (6.5%) Discount Rate (7.5%) Discount Rate (8.5%) City's proportionate share of the GERF net pension liability $4,099,410 $2,642,949 $1,450,571 City's proportionate share of the PEPFF net pension liability $6,534,657 $3,469,806 $939,602 City's proportionate share of the H. PENSION PLAN FIDUCIARY NET POSITION Detailed information about each pension plan’s fiduciary net position is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. I. PENSION EXPENSE Pension expense recognized by the City for the year ended December 31, 2017 is as follows: GERF $381,011 PEPFF 874,127 Fire Pension Plan (Note 9)45,088 Total $1,300,226 Note 9 DEFINED BENEFIT PENSION PLAN – FIRE DIVISION A. PLAN DESCRIPTION The Lino Lakes Public Safety Department – Fire Division participates in the Statewide Volunteer Firefighter Retirement Plan (SVF), an agent multiple-employer lump-sum defined benefit pension plan administered by the Public Employees Retirement Association of Minnesota (PERA). The SVF plan covers volunteer firefighters of municipal fire departments or independent nonprofit firefighting corporations that have elected to join the plan. At December 31, 2017 (measurement date), the plan covered 23 active firefighters and zero vested terminated fire fighters whose pension benefits are deferred. The plan is established and administered in accordance with Minnesota Statutes, Chapter 353G. 70 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 B. BENEFITS PROVIDED The SVF provides lump-sum retirement, death, and supplemental benefits to covered firefighters and survivors. Benefits are paid based on the number of years of service multiplied by a benefit level per year of service approved by the City of Lino Lakes. Members are eligible for a lump-sum retirement benefit at 50 years of age with five years of service. Plan provisions include a pro-rated vesting schedule that increases from 5 years at 40% through 20 years at 100%. C. CONTRIBUTIONS The SVF is funded by fire state aid, investment earnings and, if necessary, employer contributions as specified in Minnesota statutes, and voluntary City contributions. The State of Minnesota contributed $113,797 in fire state aid to the plan for the year ended December 31, 2017. Required employer contributions are calculated annually based on statutory provisions. The City’s statutorily-required contributions to the SVF plan for the year ended December 31, 2017 were $0. The City’s contributions were equal to the required contributions as set by state statute, if applicable. In addition, the City made voluntary contributions of $58,800 to the plan. 71 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 D. PENSION COSTS At December 31, 2017, the City reported a net pension asset of $127,994 for the SVF plan. The net pension asset was measured as of December 31, 2017. The total pension liability used to calculate the net pension asset in accordance with GASB 68 was determined by PERA applying an actuarial formula to specific census data certified by the fire department. The following table presents the changes in net pension liability during the year. Plan Net Total Fiduciary Pension Pension Net Liability Liability Position (Asset) (a)(b)(a-b) Beginning balance December 31, 2016 $55,240 $44,527 $10,713 Changes for the year: Service cost 47,952 - 47,952 Interest on pension liability 6,191 - 6,191 Actuarial experience (gains) / losses (11,672) - (11,672) Projected investment earnings - 2,672 (2,672) Contributions - employer - 58,800 (58,800) Contributions - State of MN - 113,797 (113,797) Asset (gain) / loss - 6,481 (6,481) Benefit payouts - - - PERA administrative fee - (572)572 Net changes 42,471 181,178 (138,707) Balance end of year December 31, 2017 $97,711 $225,705 ($127,994) There were no benefit provision changes during the measurement period. For the year ended December 31, 2017, the City recognized pension expense of $45,088. At December 31, 2017, the City reported deferred inflows of resources from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Difference between projected and actual investment earnings $ - $5,264 Differences between expected and actual economic experience - 17,495 Total $0 $22,759 72 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Amounts reported as deferred outflows and inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended Pension December 31, Expense 2018 ($6,955) 2019 (6,956) 2020 (5,215) 2021 (3,633) 2022 - Thereafter - E. ACTUARIAL ASSUMPTIONS The total pension liability at December 31, 2017, was determined using the entry age normal actuarial cost method and the following actuarial assumptions: Retirement eligibility at the later of age 50 or 20 years of service Investment rate of return of 6.0% Inflation rate of 3.0% There were no changes in actuarial assumptions in 2017 F. DISCOUNT RATE The discount rate used to measure the total pension liability was 6.0%. The projection of cash flows used to determine the discount rate assumed that contributions to the SVF plan will be made as specified in statute. Based on that assumption and considering the funding ratio of the plan, the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. G. PENSION LIABILITY SENSITIVITY The following presents the City’s net pension asset for the SVF plan, calculated using the discount rate disclosed in the preceding paragraph, as well as what the City’s net pension asset would be if it were calculated using a discount rate 1% lower or 1% higher than the current discount rate: 1% Decrease in 1% Increase in Discount Rate (5.0%) Discount Rate (6.0%) Discount Rate (7.0%) Net pension asset $118,348 $127,994 $136,963 73 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 H. PLAN INVESTMENTS 1. Investment Policy The Minnesota State Board of Investment (SBI) is established by Article XI of the Minnesota Constitution to invest all state funds. Its membership as specified in the Constitution is comprised of the Governor (who is designated as chair of the Board), State Auditor, Secretary of State and State Attorney General. All investments undertaken by the SBI are governed by the prudent person rule and other standards codified in Minnesota Statutes, Chapter 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 Statewide Volunteer Firefighter Retirement Plan (VOLP) that includes allocations to domestic equity, international equity, bonds and cash equivalents. The long-term target asset allocation and long-term expected real rate of return is the following: Target Long-Term Expected Asset Class Allocation Real Rate of Return Domestic Stocks 35%5.10% International Stocks 15%5.30% Bonds 45%0.75% Cash 5%0.00% 100% The 6% long-term expected rate of return on pension plan investments was determined using a building-block method. Best estimates for expected future real rates of return (expected returns, net of inflation) were developed for each asset class using both long-term historical returns and long-term capital market expectations from a number of investment management and consulting organizations. The asset class estimates and the target allocations were then combined to produce a geometric, long-term expected real rate of return for the portfolio. Inflation expectations were applied to derive the nominal rate of return for the portfolio. 3. Description of significant investment policy changes during the year The SBI made no significant changes to their investment policy during fiscal year 2017 for the Statewide Volunteer Firefighter Retirement Plan. 74 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 I. PENSION PLAN FIDUCIARY NET POSITION Detailed information about the SVF plan’s fiduciary net position at June 30, 2017 is available in a separately-issued PERA financial report that includes financial statements and required supplementary information. That report may be obtained at www.mnpera.org. Note 10 POST-EMPLOYMENT BENEFITS OTHER THAN PENSIONS (OPEB) A. PLAN DESCRIPTION In addition to providing the pension benefits described in Note 8 and 9, the City provides post- employment health care benefits, as defined in paragraph B, through its group health insurance plan (the plan). The plan is a single-employer defined benefit OPEB plan administered by the City. The authority to provide these benefits is established in Minnesota Statutes Sections 471.61 Subd. 2a and 299A.465. The benefits, benefit levels, employee contributions and employer contributions are governed by the City and can be amended by the City through its personnel manual and collective bargaining agreements with employee groups. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75. B. BENEFITS PROVIDED The City is required by State Statute to allow retirees to continue participation in the City’s group health insurance plan if the individual terminates service with the City through service retirement or disability retirement. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City’s health benefits program until age 65. The City provides health coverage for peace officers or firefighters disabled or killed in the line of duty in accordance with Minnesota Statute 299A.465. The amount of coverage provided is equal to the employer portion of health insurance premiums that would have otherwise been paid if the officer or firefighter was an active employee. During 2017, benefits were provided to one officer disabled in the line of duty and one officer killed in the line of duty. All health care coverage is provided through the City’s group health insurance plans. The retiree is required to pay 100% of their premium cost for the City-sponsored group health insurance plan in which they participate. The premium is a blended rate determined on the entire active and retiree population. Since the projected claims costs for retirees exceed the blended premium paid by retirees, the retirees are receiving an implicit rate subsidy (benefit). The coverage levels are the same as those afforded to active employees. Upon a retiree reaching age 65, Medicare becomes the primary insurer and the City’s plan becomes secondary. 75 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 C. PARTICIPANTS As of the January 1, 2017 actuarial valuation, participants of the plan consisted of: Active employees 46 Inactive employees or beneficiaries currently receiving benefits 6 Total 52 D. TOTAL OPEB LIABILITY AND CHANGES IN TOTAL OPEB LIABILITY The City’s total OPEB liability of $746,540 was measured as of December 31, 2017, and was determined by an actuarial valuation as of January 1, 2017. Changes in the total OPEB liability during 2017 were: Balance - beginning of year $789,627 Changes for the year: Service cost 16,990 Interest 22,542 Changes of benefit terms - Differences between expected and actual experience (51,083) Changes in assumptions - Benefit payments (31,536) Net changes (43,087) Balance - end of year $746,540 E. ACTUARIAL ASSUMPTIONS AND OTHER INPUTS The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Inflation 3.50% Salary increases 3.50% Discount rate 2.85% Investment rate of return 2.85% Healthcare cost trend rates 8.00% for 2017, decreasing 1.00% per year to an ultimate rate of 3.00% for 2022 and beyond Retirees' share of benefit-related costs 100% Since the plan is funded on a pay-as-you-go basis, both the discount rate and the investment rate of return was based on the 20 year AA rated municipal bond rate as of November 22, 2017, obtained from www.fmsbonds.com/market-yields. Mortality rates were based on the SOA RP-2014 Total Dataset Mortality tables with Scale MP-2014 and Improvement Scale BB. 76 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Based on past experience of the plan, 90% of future retirees are assumed to continue medical coverage until age 65. 50% of police/fire employees are assumed to retire at age 55, the balance at age 65. 50% of other City employees are assumed to retire at age 62, the balance at age 65. F. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE DISCOUNT RATE The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using a discount rate that is 1% lower (1.85%) or 1% higher (3.85%) than the current discount rate: 1% Decrease Discount Rate 1% Increase (1.85%)(2.85%)(3.85%) Total OPEB liability $831,489 $746,540 $671,756 G. SENSITIVITY OF THE TOTAL OPEB LIABILITY TO CHANGES IN THE HEALTHCARE COST TREND RATES The following presents the total OPEB liability of the City, as well as what the City’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (7% decreasing to 2%) or 1% higher (9% decreasing to 4%) than the current healthcare cost trend rates: Healthcare Cost 1% Decrease Trend Rates 1% Increase (7% decreasing to 2%) (8% decreasing to 3%) (9% decreasing to 4%) Total OPEB liability $661,327 $746,540 $845,440 H. OPEB EXPENSE AND DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES RELATED TO OPEB For the year ended December 31, 2017, the City recognized $39,532 of OPEB expense. At December 31, 2017, the City reported deferred outflows and inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $0 $51,083 77 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Amounts reported as deferred outflows and inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended OPEB December 31,Expense 2018 ($3,923) 2019 (3,923) 2020 (3,923) 2021 (3,923) 2022 (3,923) Thereafter (31,468) ($51,083) Note 11 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. DEFICIT FUND BALANCES The City has deficit fund balances at December 31, 2017 as follows: Fund Balance Deficit Nonmajor Governmental Funds: G.O. Improvement Bonds of 2016B ($1,932,462) Tax Increment Financing 1-11 (777,999) Tax Increment Financing 1-12 (1,044) 2018 Street Reconstruction (197,668) The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. B. EXPENDITURES IN EXCESS OF BUDGET The following is a listing of departments within the General Fund that exceeded budget appropriations: Final Budget Actual Overage General government: Engineering/planning $105,706 $111,441 $5,735 Government buildings 603,318 636,089 32,771 Public services: Parks 639,281 664,740 25,459 Recreation 246,949 248,031 1,082 Additionally, actual expenditures of the Program Recreation Special Revenue Fund exceeded final budgeted expenditures by $26,511. 78 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 12 INTERFUND RECEIVABLES AND PAYABLES Long-term interfund loans are classified as interfund loan receivable/payable. A summary of such loans at December 31, 2017 is as follows: Receivable Payable Major Funds: G.O. Improvement Bonds of 2016B $ - $2,876,643 Area and Unit Charge 100,361 - Sewer Fund 914,949 - Nonmajor Funds: Closed Bond Fund 616,983 - Building and Facilities 2,317,533 - Dedicated Parks - 100,361 Tax Increment Financing 1-11 - 775,154 2018 Street Reconstruction - 197,668 $3,949,826 $3,949,826 Note 13 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2017 are as follows: Transfer In Transfer Out Major Funds: General Fund $439,373 $879,759 G.O. Improvement Bonds of 2005A 2,187,503 7 G.O. Improvement Note of 2009A 1,126,057 - G.O. Improvement Bonds of 2016B 272,506 2,187,503 Area and Unit Charge - 236,548 Water Fund 104,969 35,727 Sewer Fund 104,969 35,727 Nonmajor governmental funds 2,959,004 3,819,110 Total $7,194,381 $7,194,381 During 2017, transfers were made to provide funding for capital improvement projects and capital outlay in accordance with the City’s capital improvement plan. Transfers were also made to provide resources for debt service payments, to close capital project funds and debt service funds, and to allocate financial resources to funds that received benefit from services provided by another fund. These transfers are routine and consistent with past practices. 79 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 14 FUND BALANCE At December 31, 2017, a summary of the governmental fund balance classifications is as follows: G.O.Other General Improvement Area and Governmental Fund Bonds of 2016B Unit Charge Funds Total Nonspendable: Prepaid items $243,317 $ - $ - $1,659 $244,976 Corpus of permanent fund - - - 100,000 100,000 Total nonspendable 243,317 0 0 101,659 344,976 Restricted for: Debt service - - - 4,223,799 4,223,799 Economic development - - - 225,000 225,000 Blue Heron Days - - - 6,965 6,965 Narcotics and forfeiture funds - - - 330,866 330,866 Tax increment purposes - - - 479,695 479,695 Environmental purposes - - - 23,316 23,316 Total restricted 0 0 0 5,289,641 5,289,641 Committed for: Economic development - - - 88,251 88,251 Cable TV purposes - - - 83,946 83,946 Recreation purposes - - - 3,204 3,204 Total committed 0 0 0 175,401 175,401 Assigned for: Capital improvements - - 7,656,155 6,925,514 14,581,669 Unassigned 6,573,608 (1,932,462) - (976,711) 3,664,435 Total fund balance $6,816,925 ($1,932,462) $7,656,155 $11,515,504 $24,056,122 Note 15 PROPERTY UNDER LEASE AGREEMENT The City entered into an agreement to lease space within the City Hall Complex, which at year end had a cost of $4,744,742 and a net book value of $1,805,168, to New Creations Child Care and Learning Center, LLC. The lease is dated July 1, 2014 and continues through June 30, 2019. The lease requires escalating annual lease payments of between $5.94 and $8.65 per square foot over the lease term, for a total of $330,904. Approximate future minimum lease payments receivable under the noncancelable operating lease are as follows: Year Ending December 31, Amount 2018 $77,901 2019 39,522 $117,423 80 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 16 TAX INCREMENT DISTRICTS The City is the administrating authority for three tax increment districts. The City’s tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could have a material effect on the financial statements. The following table reflects values at December 31, 2017: TIF 1-5 TIF 1-11 TIF 1-12 Cottage TIF 1-10 Woods Clearwater Homesteads Panattoni Edge Creek Authorizing law M.S. 469 M.S. 469 M.S. 469 M.S. 469 Year established 1994 2004 2005 2006 Final year of district 2022 2023 2031 2026 Net tax capacity: Original $128 $15,869 $7,241 $11,731 Current (payable 2017)34,052 232,094 135,973 11,731 Captured - retained $33,924 $216,225 $128,732 $0 Note 17 COMMITMENTS AND CONTINGENCIES A. LITIGATION Existing and pending lawsuits, claims and other actions in which the City is a defendant are either covered by insurance, of an immaterial amount, or, in the judgment of the City’s management, remotely recoverable by plaintiffs. B. FEDERAL AND STATE FUNDS The City receives financial assistance from federal and state governmental agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, any such disallowed claims will not have a material effect on any of the financial statements of the individual fund types included herein or on the overall financial position of the City at December 31, 2017. C. COMMITTED CONTRACTS At December 31, 2017, the City had commitments of $194,558 for uncompleted construction contracts. 81 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 Note 18 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. Workers compensation coverage is provided through a pooled self-insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City’s workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid. Property and casualty insurance is provided through a pooled self-insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through commercial companies for claims in excess of various amounts. The City retains risk for the deductible portion of the insurance policies and for any exclusions from the insurance policies. These amounts are considered immaterial to the financial statements. The City continues to carry commercial insurance for all other risks of loss, including disability and employee health insurance. There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any of the past three fiscal years. Note 19 RECENTLY ISSUED ACCOUNTING STANDARDS The Governmental Accounting Standards Boards (GASB) recently approved the following statements which were not implemented for these financial statements: Statement No. 83 Certain Asset Retirement Obligations. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. Statement No. 84 Fiduciary Activities. The provisions of this Statement are effective for reporting periods beginning after December 15, 2018. Statement No. 85 Omnibus 2017. The provisions of this Statement are effective for reporting periods beginning after June 15, 2017. Statement No. 86 Certain Debt Extinguishment Issues. The provisions of this Statement are effective for reporting periods beginning after June 15, 2017. Statement No. 87 Leases. The provisions of this Statement are effective for reporting periods beginning after December 15, 2019. Statement No. 88 Certain Disclosures Related to Debt, including Direct Borrowings and Direct Placements. The provisions of this Statement are effective for reporting periods beginning after June 15, 2018. 82 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2017 The effect these standards may have on future financial statements is not determinable at this time, but it is expected that Statement No. 87 may have a material impact. Note 20 CHANGE IN ACCOUNTING PRINCIPLE For the year ended December 31, 2017, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. GASB Statement No. 75 established new accounting and financial reporting requirements for governments whose employees are provided OPEB. See Note 10 for further information. The standard required retroactive implementation which resulted in a restatement of net position for governmental activities at December 31, 2016. Certain amounts necessary to fully restate 2016 financial statements are not determinable, therefore, prior year comparative amounts have not been restated. Details of the prior period adjustment are as follows: Governmental Activities Net position - January 1, 2017, as previously reported $42,819,930 Prior period adjustment: Effect of implementing GASB Statement No. 75 (692,480) Net position - January 1, 2017, as restated $42,127,450 83 - This page intentionally left blank - 84 REQUIRED SUPPLEMENTARY INFORMATION 85 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 1 of 6 For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: General propery taxes: Current and delinquent $7,410,431 $6,407,494 $6,359,583 ($47,911) Fiscal disparities - 977,937 975,939 (1,998) Excess tax increments - 3,000 3,354 354 Total general property taxes 7,410,431 7,388,431 7,338,876 (49,555) Licenses and permits: Business 126,229 141,229 146,709 5,480 Non-business 486,524 1,238,524 1,300,862 62,338 Total licenses and permits 612,753 1,379,753 1,447,571 67,818 Intergovernmental: State: Police state aid 195,000 230,000 229,395 (605) OTS grant 110,000 85,000 84,385 (615) MSA maintenance 255,000 240,000 241,138 1,138 Other 14,000 22,000 29,108 7,108 County solid waste grant 107,409 107,409 83,494 (23,915) Total intergovernmental 681,409 684,409 667,520 (16,889) Special assessments 14,500 4,500 4,293 (207) Charges for services: General government 11,100 26,100 27,030 930 Engineering and planning fees 15,000 25,000 25,459 459 Public safety 189,200 189,200 187,988 (1,212) Public services 25,500 16,500 11,561 (4,939) Investment management charge to other funds 50,000 50,000 50,000 - Total charges for services 290,800 306,800 302,038 (4,762) Fines and forfeits 175,600 145,600 147,977 2,377 Investment earnings 30,000 30,000 40,913 10,913 Miscellaneous: Gas franchise fees 70,000 50,000 54,689 4,689 Building lease revenue 102,848 102,848 102,848 - Refunds and reimbursements 40,000 40,000 29,052 (10,948) Donations 5,000 500 500 - Other 2,500 105,852 108,350 2,498 Total miscellaneous 220,348 299,200 295,439 (3,761) Total revenues 9,435,841 10,238,693 10,244,627 5,934 86 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 2 of 6 For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: General government: Mayor and city council: Current: Personal services 43,733 43,733 38,966 4,767 Other services and charges 18,000 18,500 19,541 (1,041) Contractual services 17,500 17,500 17,265 235 Total mayor and city council 79,233 79,733 75,772 3,961 Elections: Current: Personal services 10,130 10,130 8,685 1,445 Supplies 800 800 257 543 Other services and charges 1,200 1,200 1,923 (723) Contractual services - - 382 (382) Capital outlay 4,600 4,600 4,685 (85) Total elections 16,730 16,730 15,932 798 Administration: Current: Personal services 472,255 455,255 447,735 7,520 Other services and charges 21,860 21,860 18,450 3,410 Contractual services 10,500 10,500 9,481 1,019 Total administration 504,615 487,615 475,666 11,949 Finance: Current: Personal services 317,635 320,835 319,495 1,340 Supplies 1,000 1,000 246 754 Other services and charges 207,088 207,088 181,219 25,869 Contractual services 101,067 101,067 101,932 (865) Total finance 626,790 629,990 602,892 27,098 Cable TV: Current: Personal services 2,340 2,340 2,477 (137) Capital outlay 500 500 - 500 Total cable TV 2,840 2,840 2,477 363 Legal consultants: Current: Contractual services 140,000 120,000 111,902 8,098 87 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 3 of 6 For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) General government: (continued) Engineering/planning: Current: Contractual services 105,706 105,706 111,441 (5,735) Charter commission: Current: Other services and charges 2,500 2,500 624 1,876 Government buildings: Current: Personal services 2,460 2,460 2,452 8 Supplies 48,400 48,400 47,139 1,261 Other services and charges 361,258 361,258 426,293 (65,035) Contractual services 64,200 64,200 77,786 (13,586) Capital outlay 37,000 127,000 82,419 44,581 Total government buildings 513,318 603,318 636,089 (32,771) Total general government 1,991,732 2,048,432 2,032,795 15,637 Public safety: Police: Current: Personal services 3,562,824 3,562,824 3,436,882 125,942 Supplies 33,150 33,150 27,183 5,967 Other services and charges 100,176 100,176 107,373 (7,197) Contractual services 56,520 56,520 41,702 14,818 Capital outlay 35,000 35,000 34,036 964 Total police 3,787,670 3,787,670 3,647,176 140,494 Fire protection: Current: Personal services 474,411 474,411 425,694 48,717 Supplies 16,050 16,050 8,135 7,915 Other services and charges 50,545 50,545 47,648 2,897 Contractual services 28,380 28,380 22,532 5,848 Capital outlay 36,614 36,614 32,551 4,063 Total fire protection 606,000 606,000 536,560 69,440 Building inspection: Current: Personal services 227,428 224,128 221,715 2,413 Supplies 1,650 1,650 591 1,059 Other services and charges 9,110 9,110 6,502 2,608 Contractual services 1,000 1,000 1,151 (151) Capital outlay 600 600 - 600 Total building inspection 239,788 236,488 229,959 6,529 Total public safety 4,633,458 4,630,158 4,413,695 216,463 88 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 4 of 6 For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) Public services: Streets: Current: Personal services 552,424 565,979 539,862 26,117 Supplies 159,000 166,097 124,256 41,841 Other services and charges 109,600 109,600 149,997 (40,397) Contractual services 198,000 73,000 95,822 (22,822) Total streets 1,019,024 914,676 909,937 4,739 Fleet: Current: Personal services 118,315 121,704 121,627 77 Supplies 194,000 165,000 139,794 25,206 Other services and charges 62,427 62,427 59,779 2,648 Contractual services 57,000 57,000 34,817 22,183 Total fleet 431,742 406,131 356,017 50,114 Parks: Current: Personal services 477,081 483,081 464,841 18,240 Supplies 26,500 26,500 29,574 (3,074) Other services and charges 39,000 54,000 62,612 (8,612) Contractual services 55,700 75,700 107,713 (32,013) Total parks 598,281 639,281 664,740 (25,459) Recreation: Current: Personal services 234,199 227,299 226,836 463 Supplies 2,500 2,500 2,756 (256) Other services and charges 16,150 16,150 18,001 (1,851) Contractual services 1,000 1,000 438 562 Total recreation 253,849 246,949 248,031 (1,082) Total public services 2,302,896 2,207,037 2,178,725 28,312 89 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 5 of 6 For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) Conservation of natural resources: Forestry: Current: Personal services 37,457 37,457 36,540 917 Supplies 4,350 4,350 5,276 (926) Other services and charges 380 380 352 28 Contractual services 15,000 15,000 8,704 6,296 Capital outlay 7,700 7,700 8,247 (547) Total forestry 64,887 64,887 59,119 5,768 Environmental: Current: Personal services 54,215 47,215 44,785 2,430 Supplies 1,000 1,000 802 198 Other services and charges 9,150 9,150 6,876 2,274 Contractual services 1,100 1,100 1,133 (33) Total environmental 65,465 58,465 53,596 4,869 Solid waste abatement: Current: Personal services 54,900 54,900 47,074 7,826 Other services and charges 11,500 11,500 11,298 202 Contractual services 41,000 41,000 20,552 20,448 Total solid waste abatement 107,400 107,400 78,924 28,476 Total conservation of natural resources 237,752 230,752 191,639 39,113 Community development: Community development: Current: Personal services 210,269 183,469 182,500 969 Supplies 100 100 41 59 Other services and charges 8,150 11,650 11,732 (82) Contractual services 900 900 905 (5) Total community development 219,419 196,119 195,178 941 Economic development: Current: Personal services 21,617 18,617 17,783 834 Other services and charges 90,100 90,100 85,327 4,773 Contractual services 400 400 695 (295) Total economic development 112,117 109,117 103,805 5,312 90 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 11 BUDGETARY COMPARISON SCHEDULE - GENERAL FUND Page 6 of 6 For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Expenditures: (continued) Planning and zoning commission: Current: Personal services 101,684 101,684 101,579 105 Supplies 200 200 34 166 Other services and charges 16,250 16,250 10,792 5,458 Contractual services 40,250 15,250 15,265 (15) Total planning and zoning commission 158,384 133,384 127,670 5,714 Total community development 489,920 438,620 426,653 11,967 Other: Contingency 50,000 - - - Total expenditures 9,705,758 9,554,999 9,243,507 311,492 Revenues over (under) expenditures (269,917) 683,694 1,001,120 317,426 Other financing sources (uses): Transfers in 317,717 439,373 439,373 - Transfers out (565,800) (879,152) (879,759) (607) Total other financing sources (uses)(248,083) (439,779) (440,386) (607) Net change in fund balance ($518,000) $243,915 560,734 $316,819 Fund balance - January 1 6,256,191 Fund balance - December 31 $6,816,925 91 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 12 SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS For The Year Ended December 31, 2017 2017 Total OPEB liability: Service cost $16,990 Interest 22,542 Changes of benefit terms - Differences between expected and actual experience (51,083) Changes in assumptions - Benefit payments (31,536) Net change in total OPEB liability (43,087) Total OPEB liability - beginning 789,627 Total OPEB liability - ending $746,540 Covered-employee payroll $3,499,836 Total OPEB liability as a percentage of covered-employee payroll 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. 92 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 13 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2017 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% 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. 93 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 14 SCHEDULE OF PENSION CONTRIBUTIONS - GENERAL EMPLOYEES RETIREMENT FUND For The Year Ended December 31, 2017 Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll Covered December 31, (a) Contribution (b) (a-b) (c) Payroll (b/c) 2015 $182,102 $182,102 $ - $2,428,027 7.5% 2016 193,684 193,684 - 2,582,452 7.5% 2017 192,510 192,510 - 2,566,800 7.5% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 94 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 15 SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2017 Proportionate Share Proportionate of the Net Pension Plan Fiduciary Proportion Share (Amount) Liability as a Net Position as Measurement Fiscal Year (Percentage) of of the Net Percentage of its a Percentage Date Ending the Net Pension Pension Covered Covered of the Total June 30, December 31, Liability Liability (a) Payroll (b) Payroll (a/b) Pension Liability 2015 2015 0.2490%$2,829,223 $2,284,973 123.8%86.6% 2016 2016 0.2590%10,394,121 2,495,778 416.5%63.9% 2017 2017 0.2570%3,469,806 2,643,314 131.3%85.4% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 95 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 16 SCHEDULE OF PENSION CONTRIBUTIONS - PUBLIC EMPLOYEES POLICE AND FIRE FUND For The Year Ended December 31, 2017 Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll Covered December 31, (a) Contribution (b) (a-b) (c) Payroll (b/c) 2015 $393,551 $393,551 $ - $2,429,327 16.2% 2016 424,970 424,970 - 2,623,271 16.2% 2017 416,665 416,665 - 2,572,006 16.2% The schedule is provided prospectively beginning with the City's fiscal year ended December 31, 2015 and is intended to show a ten year trend. Additional years will be reported as they become available. 96 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 17 SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION For The Year Ended December 31, 2017 Fiscal year ending and measurement date December 31, 2017 December 31, 2016 Total pension liability: Service cost $47,952 $38,419 Interest on pension liability 6,191 3,568 Changes of benefit terms - - Differences between expected and actual experience (11,672)(7,804) Changes of assumptions - - Benefit payments, including refunds of employee contributions - - Net change in total pension liability 42,471 34,183 Total pension liability - beginning 55,240 21,057 Total pension liability - ending (a)$97,711 $55,240 Plan fiduciary net position: Contributions - employer $58,800 $44,394 Contributions - State of Minnesota 113,797 - Net investment income 9,153 133 Benefit payments, including refunds of employee contributions - - Administrative expense (572) - Net change in plan fiduciary net position 181,178 44,527 Plan fiduciary net position - beginning 44,527 - Plan fiduciary net position - ending (b)$225,705 $44,527 Net pension liability/(asset) - ending (a) - (b)($127,994)$10,713 Plan fiduciary net position as a percentage of the total pension liability 231.0%80.6% Covered payroll N/A N/A Net pension liability as a percentage of covered employee payroll N/A N/A N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does not meet the definition of covered payroll. The City created its own fire department in 2016. Therefore, information prior to 2016 is not available. 97 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION Statement 18 SCHEDULE OF CONTRIBUTIONS - LINO LAKES PUBLIC SAFETY DEPARTMENT - FIRE DIVISION For The Year Ended December 31, 2017 Statutorily Contributions in Contribution Contributions as a Fiscal Year Required Relation to the Deficiency Covered Percentage of Ending Contribution Statutorily Required (Excess) Payroll Covered-Employee December 31, (a) Contribution (b) (a-b) (c) Payroll (b/c) 2016 $ - $44,394 ($44,394) N/A N/A 2017 - 58,800 (58,800) N/A N/A N/A - the Lino Lakes Fire Department is comprised of paid on-call firefighters, whose pay does not meet the defintion of covered payroll. The City created its own fire department in 2016. Therefore, information prior to 2016 is not available. 98 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2017 Note A LEGAL COMPLIANCE – BUDGETS The General Fund budget is legally adopted on a basis consistent with accounting principles generally accepted in the United States of America. The legal level of budgetary control is at the department level for the General Fund. Note B OPEB INFORMATION No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75 to pay related benefits. There are no factors that affect trends in the amounts reported, such as changes of benefit terms or assumptions. Note C PENSION INFORMATION PERA – General Employees Retirement Fund 2017 Changes Changes in Actuarial Assumptions: The Combined Service Annuity (CSA) loads were changed from 0.8 percent for active members and 60 percent for vested and non-vested deferred members. The revised CSA loads are now 0.0 percent for active member liability, 15.0 percent for vested deferred member liability and 3.0 percent for non-vested deferred member liability. The assumed post-retirement benefit increase rate was changed from 1.0 percent per year for all years to 1.0 percent per year through 2044 and 2.5 percent per year thereafter. 2016 Changes Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2035 and 2.5% per year thereafter to 1.0% per year for all future years. The assumed investment return was changed from 7.9% to 7.5%. The single discount rate was changed from 7.9% to 7.5%. Other assumptions were changed pursuant to the experience study dated June 30, 2015. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. PERA – Public Employees Police and Fire Fund 2017 Changes Changes in Actuarial Assumptions: The single discount rate was changed from 5.6% to 7.5%. Assumed salary increases were changed as recommended in the June 30, 2016 experience study. The net effect is proposed rates that average 0.34 percent lower than the previous rates. 99 CITY OF LINO LAKES, MINNESOTA REQUIRED SUPPLEMENTARY INFORMATION NOTES TO RSI December 31, 2017 Assumed rates of retirement were changed, resulting in fewer retirements. The Combined Service Annuity (CSA) load was 30 percent for vested and non-vested deferred members. The CSA has been changed to 33 percent for vested members and 2 percent for non- vested members. The base mortality table for healthy annuitants was changed from the RP-2000 fully generational table to the RP-2014 fully generational table (with a base year of 2006), with male rates adjusted by a factor of 0.96. The mortality improvement scale was changed from Scale AA to Scale MP- 2016. The base mortality table for disabled annuitants was changed from the RP-2000 disabled mortality table to the mortality tables assumed for healthy retirees. Assumed termination rates were decreased to 3.0 percent for the first three years of service. Rates beyond the select period of three years were adjusted, resulting in more expected terminations overall. Assumed percentage of married female members was decreased from 65 percent to 60 percent. Assumed age difference was changed from separate assumptions for male members (wives assumed to be three years younger) and female members (husbands assumed to be four years older) to the assumption that males are two years older than females. The assumed percentage of female members electing Joint and Survivor annuities was increased. The assumed post-retirement benefit increase rate was changed from 1.00 percent for all years to 1.00 percent per year through 2064 and 2.50 percent thereafter. 2016 Changes Changes in Actuarial Assumptions: The assumed post-retirement benefit increase rate was changed from 1.0% per year through 2037 and 2.5% per year thereafter to 1.0% per year for all future years. The assumed investment return was changed from 7.9% to 7.5%. The single discount rate changed from 7.9% to 5.6%. The assumed future salary increases, payroll growth, and inflation were decreased by 0.25% to 3.25% for payroll growth and 2.50% for inflation. Single Employer – Fire Division There are no factors that affect trends in the amounts reported, such as change of benefit terms or assumptions. With only two years reported in the RSI, there is no additional information to include in the notes. 100 COMBINING AND INDIVIDUAL NONMAJOR FUND FINANCIAL STATEMENTS AND SCHEDULES 101 - This page intentionally left blank - 102 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. DEBT SERVICE FUNDS Debt Service Funds are used to account for the accumulation of resources for, and payment of, interest, principal and related costs on general long-term debt. CAPITAL PROJECT FUNDS Capital Project Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). PERMANENT FUNDS Permanent Funds account for financial resources that are legally restricted to the extent that only earnings, and not the principal, may be used for purposes that support the City’s programs. The City maintains one permanent fund – the Environment and Stewardship Fund. This fund accounts for the use of funds received for environmental maintenance and improvements in the Foxborough area, as well as funds received for the Preserve area. 103 NONMAJOR GOVERNMENTAL FUNDS 104 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET Statement 19 NONMAJOR GOVERNMENTAL FUNDS December 31, 2017 Permanent Fund Total Environment and Nonmajor Special Debt Capital Stewardship Governmental Revenue Service Project Fund Funds Assets Cash and investments $622,865 $4,220,235 $4,847,051 $123,316 $9,813,467 Accounts receivable - net - - 1,855 - 1,855 Prepaid items 1,659 - - - 1,659 Taxes receivable: Due from county - 6,784 5 - 6,789 Delinquent - 12,845 243 - 13,088 Special assessments receivable: Due from county - 231 567 - 798 Delinquent - 1,074 8,077 - 9,151 Deferred - 850,252 331,482 - 1,181,734 Interfund loan receivable - - 2,934,516 - 2,934,516 Long-term notes receivable 225,000 - - - 225,000 Total assets $849,524 $5,091,421 $8,123,796 $123,316 $14,188,057 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $106,378 $3,450 $147,485 $ - $257,313 Salaries payable 453 - - - 453 Due to other governments 2,802 - 9,374 - 12,176 Contracts payable - - 125,455 - 125,455 Interfund loan payable - - 1,073,183 - 1,073,183 Total liabilities 109,633 3,450 1,355,497 0 1,468,580 Deferred inflows of resources: Unavailable revenue - 864,172 339,801 - 1,203,973 Fund balance: Nonspendable 1,659 - - 100,000 101,659 Restricted 562,831 4,223,799 479,695 23,316 5,289,641 Committed 175,401 - - - 175,401 Assigned - - 6,925,514 - 6,925,514 Unassigned - - (976,711) - (976,711) Total fund balance 739,891 4,223,799 6,428,498 123,316 11,515,504 Total liabilities, deferred inflows of resources, and fund balance $849,524 $5,091,421 $8,123,796 $123,316 $14,188,057 105 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND Statement 20 CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS For The Year Ended December 31, 2017 Permanent Fund Total Environment and Nonmajor Special Debt Capital Stewardship Governmental Revenue Service Project Fund Funds Revenues: General property taxes $ - $2,121,680 $33 $ - $2,121,713 Tax increment - - 312,152 - 312,152 Intergovernmental - - 413,433 - 413,433 Special assessments - 364,742 302,186 - 666,928 Charges for services 175,110 - 593,165 - 768,275 Fines and forfeits 465,616 - - - 465,616 Investment earnings 4,536 21,265 64,414 961 91,176 Miscellaneous 33,046 37,595 36,060 8,500 115,201 Total revenues 678,308 2,545,282 1,721,443 9,461 4,954,494 Expenditures: Current: General government - - 6,978 - 6,978 Public safety 13,409 - - - 13,409 Public services 179,480 - 1,030,900 - 1,210,380 Community development 607 - 5,884 - 6,491 Capital outlay: General government - - 228,895 - 228,895 Public safety 85,638 - 808,193 - 893,831 Public services 108,219 - 759,965 - 868,184 Debt service: Principal - 4,353,525 - - 4,353,525 Interest and fiscal charges - 488,354 5,836 - 494,190 Total expenditures 387,353 4,841,879 2,846,651 0 8,075,883 Revenues over (under) expenditures 290,955 (2,296,597) (1,125,208) 9,461 (3,121,389) Other financing sources (uses): Transfers in 88,959 1,595,477 1,274,568 - 2,959,004 Transfers out (121,656) (588,899) (3,108,555) - (3,819,110) Issuance of debt - - 311,000 - 311,000 Proceeds from sale of capital assets - - 103,328 - 103,328 Total other financing sources (uses) (32,697) 1,006,578 (1,419,659) 0 (445,778) Net change in fund balance 258,258 (1,290,019) (2,544,867) 9,461 (3,567,167) Fund balance - January 1 481,633 5,513,818 8,973,365 113,855 15,082,671 Fund balance - December 31 $739,891 $4,223,799 $6,428,498 $123,316 $11,515,504 106 SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds during the year. Program Recreation – established to account for various self-supporting recreational programs. Economic Development Authority – established to account for the receipt and uses of funds for economic development purposes. Cable TV Fund – established to account for activities relating to Cable TV. Blue Heron Days – established to account for the activities associated with the Blue Heron Days festival. Federal Narcotics – established to account for activities associated with the receipt and use of federal narcotics forfeitures. State Narcotics – established to account for activities associated with the receipt and use of state narcotics forfeitures DUI Forfeitures – established to account activities associated with the receipt and use of DUI forfeitures. 107 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 21 NONMAJOR SPECIAL REVENUE FUNDS December 31, 2017 Total 203 Nonmajor 201 Economic Special Program Development 204 Cable 205 Blue 206 Federal 207 State 208 DUI Revenue Recreation Authority TV Fund Heron Days Narcotics Narcotics Forfeitures Funds Assets Cash and investments $9,186 $88,456 $186,113 $8,244 $262,269 $23,636 $44,961 $622,865 Prepaid items 1,460 - - 199 - - - 1,659 Long-term notes receivable - 225,000 - - - - - 225,000 Total assets $10,646 $313,456 $186,113 $8,443 $262,269 $23,636 $44,961 $849,524 Liabilities and Fund Balance Liabilities: Accounts payable $2,932 $ - $102,167 $1,279 $ - $ - $ - $106,378 Due to other governments 2,802 - - - - - - 2,802 Salaries payable 248 205 - - - - - 453 Total liabilities 5,982 205 102,167 1,279 0 0 0 109,633 Fund balance: Nonspendable 1,460 - - 199 - - - 1,659 Restricted - 225,000 - 6,965 262,269 23,636 44,961 562,831 Committed 3,204 88,251 83,946 - - - - 175,401 Total fund balance 4,664 313,251 83,946 7,164 262,269 23,636 44,961 739,891 Total liabilities and fund balance $10,646 $313,456 $186,113 $8,443 $262,269 $23,636 $44,961 $849,524 108 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 22 EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS For The Year Ended December 31, 2017 Total 203 Nonmajor 201 Economic Special Program Development 204 Cable 205 Blue 206 Federal 207 State 208 DUI Revenue Recreation Authority TV Fund Heron Days Narcotics Narcotics Forfeitures Funds Revenues: Charges for services $108,892 $ - $66,218 $ - $ - $ - $ - $175,110 Fines and forfeits - - - - 433,941 11,024 20,651 465,616 Investment earnings 370 104 1,408 65 2,148 146 295 4,536 Miscellaneous - - - 22,731 - 5,377 4,938 33,046 Total revenues 109,262 104 67,626 22,796 436,089 16,547 25,884 678,308 Expenditures: Current: Public safety - - - - 679 6,143 6,587 13,409 Public services 142,696 - 9,533 27,251 - - - 179,480 Community development - 607 - - - - - 607 Capital outlay: Public safety - - - - 81,396 - 4,242 85,638 Public services - - 108,219 - - - - 108,219 Total expenditures 142,696 607 117,752 27,251 82,075 6,143 10,829 387,353 Revenues over (under) expenditures (33,434) (503) (50,126) (4,455) 354,014 10,404 15,055 290,955 Other financing sources (uses): Transfers in - 88,959 - - - - - 88,959 Transfers out - - - - (121,656) - - (121,656) Total other financing sources (uses) 0 88,959 0 0 (121,656) 0 0 (32,697) Net change in fund balance (33,434) 88,456 (50,126) (4,455) 232,358 10,404 15,055 258,258 Fund balance - January 1 38,098 224,795 134,072 11,619 29,911 13,232 29,906 481,633 Fund balance - December 31 $4,664 $313,251 $83,946 $7,164 $262,269 $23,636 $44,961 $739,891 109 - 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, 2017 334 G.O. 331 G.O. 332 G.O. Improvement 315 CIP TIF and Utility 335 G.O. Certificates Bonds Bonds Bonds Bonds of Indebtedness of 2006E of 2007A of 2010A of 2012A Assets Cash and investments $184,203 $970,261 $149,951 $849 $317,957 Taxes receivable: Due from county 2,021 1,489 - - 567 Delinquent 3,572 3,335 - - 1,148 Special assessments receivable: Due from county - - - - - Delinquent - - - - - Deferred - - - 447 16,420 Total assets $189,796 $975,085 $149,951 $1,296 $336,092 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $255 $255 $255 $255 Deferred inflows of resources: Unavailable revenue 3,572 3,335 - 447 17,569 Fund balance: Restricted 186,224 971,495 149,696 594 318,268 Total liabilities, deferred inflows of resources, and fund balance $189,796 $975,085 $149,951 $1,296 $336,092 112 Statement 23 339 EDA 341 G.O. 343 G.O. Total 336 G.O. 337 G.O. Lease 340 G.O. Utility Tax Nonmajor Improvement Improvement 338 G.O. Revenue Capital Revenue Abatement Debt Bonds Bonds Bonds Bonds Note Bonds Bonds Service of 2013A of 2014A of 2015A of 2015B of 2016A of 2016A of 2016C Funds $287,008 $1,035,505 $450,068 $257,616 $253 $254,460 $312,104 $4,220,235 - - 863 1,004 - - 840 6,784 - - 1,336 1,554 - - 1,900 12,845 - 231 - - - - - 231 - 1,074 - - - - - 1,074 452,098 381,287 - - - - - 850,252 $739,106 $1,418,097 $452,267 $260,174 $253 $254,460 $314,844 $5,091,421 $255 $255 $255 $255 $ - $705 $705 $3,450 452,098 382,361 1,336 1,554 - - 1,900 864,172 286,753 1,035,481 450,676 258,365 253 253,755 312,239 4,223,799 $739,106 $1,418,097 $452,267 $260,174 $253 $254,460 $314,844 $5,091,421 113 - This page intentionally left blank - 114 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES,Statement 24 EXPENDITURES AND CHANGES IN FUND BALANCE Page 1 of 2 NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2017 330 G.O. 328 G.O. 329 G.O. Utility 331 G.O. 315 Improvement Tax Abatement Revenue CIP Certificates of Bonds Bonds Bonds Bonds Indebtedness of 2005B of 2006C of 2006D of 2006E Revenues: General property taxes $633,871 $221 $966 $ - $462,493 Special assessments 131 4,886 159 21,036 276 Investment earnings 2,252 254 1,348 1,019 5,202 Miscellaneous - - - - - Total revenues 636,254 5,361 2,473 22,055 467,971 Expenditures: Debt service: Principal 583,000 - 1,755,000 70,000 405,000 Interest and fiscal charges 23,792 - 37,448 1,452 26,657 Total expenditures 606,792 0 1,792,448 71,452 431,657 Revenues over (under) expenditures 29,462 5,361 (1,789,975) (49,397) 36,314 Other financing sources (uses): Transfers in - - - 71,454 - Transfers out - (36,463) (67,132) (209,939) - Total other financing sources (uses)0 (36,463) (67,132) (138,485)0 Net change in fund balance 29,462 (31,102) (1,857,107) (187,882) 36,314 Fund balance - January 1 156,762 31,102 1,857,107 187,882 935,181 Fund balance - December 31 $186,224 $0 $0 $0 $971,495 115 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR DEBT SERVICE FUNDS For The Year Ended December 31, 2017 334 G.O. 332 G.O. Improvement 336 G.O. TIF and Utility 335 G.O. Improvement Bonds Bonds Bonds Bonds of 2007A of 2010A of 2012A of 2013A Revenues: General property taxes $ - $ - $176,943 $ - Special assessments - 247 23,071 63,606 Investment earnings - - 1,348 1,642 Miscellaneous - - - - Total revenues 0 247 201,362 65,248 Expenditures: Debt service: Principal 400,000 100,000 225,000 60,000 Interest and fiscal charges 75,481 11,955 17,020 16,853 Total expenditures 475,481 111,955 242,020 76,853 Revenues over (under) expenditures (475,481) (111,708) (40,658) (11,605) Other financing sources (uses): Transfers in 475,481 46,000 - - Transfers out - - - - Total other financing sources (uses)475,481 46,000 0 0 Net change in fund balance 0 (65,708) (40,658) (11,605) Fund balance - January 1 149,696 66,302 358,926 298,358 Fund balance - December 31 $149,696 $594 $318,268 $286,753 116 Statement 24 Page 2 of 2 339 EDA 341 G.O. 343 G.O. Total 337 G.O. Lease 340 G.O. Utility Tax Nonmajor Improvement 338 G.O. Revenue Capital Revenue Abatement Debt Bonds Bonds Bonds Note Bonds Bonds Service of 2014A of 2015A of 2015B of 2016A of 2016A of 2016C Funds $ - $271,621 $315,855 $ - $ - $259,710 $2,121,680 251,212 55 63 - - - 364,742 5,758 705 1,079 140 - 518 21,265 - - - 37,595 - - 37,595 256,970 272,381 316,997 37,735 0 260,228 2,545,282 370,000 190,000 165,000 30,525 - - 4,353,525 32,927 67,817 134,942 7,070 20,269 14,671 488,354 402,927 257,817 299,942 37,595 20,269 14,671 4,841,879 (145,957)14,564 17,055 140 (20,269) 245,557 (2,296,597) 465,084 195,852 - - 274,474 67,132 1,595,477 (269,412) - (5,953) - - - (588,899) 195,672 195,852 (5,953)0 274,474 67,132 1,006,578 49,715 210,416 11,102 140 254,205 312,689 (1,290,019) 985,766 240,260 247,263 113 (450)(450) 5,513,818 $1,035,481 $450,676 $258,365 $253 $253,755 $312,239 $4,223,799 117 - This page intentionally left blank - 118 CAPITAL PROJECT FUNDS Capital Project Funds account for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds. The City maintained the following nonmajor Capital Project Funds during the year: Closed Bond Fund – to account for excess funds from matured bond issues. Building and Facilities – to account for the activities associated with the maintenance and replacement of municipal buildings and facilities. Capital Equipment Revolving – to account for proceeds from Equipment Certificates and funds held to purchase capital equipment. Office Equipment Revolving – to account for the receipt and use of funds for office equipment purchases. Dedicated Parks – to account for the receipts and use of monies collected from park dedication fees. Tax Increment Financing Funds – to account for development projects financed with tax increments. Municipal State Aid (MSA) Construction – to account for the financing of future reconstruction of state aid eligible streets. Street Maintenance – to account for money received from levies, assessments, and developer charges for future street maintenance projects. Surface Water Management – to account for the financing of surface water management and storm water improvements. Street Reconstruction – to account for the financing of future reconstruction of City streets. Surface Water Maintenance – to account for surface water maintenance activities. 21st Ave Extension – this fund accounts for activities relating to the construction performed in the expansion of 21st Avenue within the City. Fire House #2 Construction – this fund accounts for activities relating to the construction of Fire House #2. Well #6 Construction – this fund accounts for activities relating to the construction of Well # 6 and well house. 119 Northpointe Improvements – this fund accounts for activities relating to the construction of streets and utilities within the Northpointe development. Birch Street / Centerville Road Improvements – this fund accounts for activities relating to the construction of street improvements and sanitary sewer in conjunction with Fire House #2. 2015 Street Reconstruction – this fund accounts for the construction and improvements to Shenandoah Street. Blackduck / Aqua Lane Watermain Extension – this fund accounts for activities relating to the trunk watermain improvements along Aqua Lane to north of Blackduck Drive. 2040 Comp Plan Update – this fund accounts for the financing sources received and expenditures incurred to update the City’s 2040 Comprehensive Plan. 2018 Street Reconstruction – this fund accounts for street and utility improvements within the West Shadow Lake Drive and LaMotte neighborhoods. 120 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET Statement 25 NONMAJOR CAPITAL PROJECT FUNDS Page 1 of 2 December 31, 2017 402 Capital 403 Office 405 411 Tax 417 Tax 301 Closed 401 Building Equipment Equipment Dedicated Increment Increment Bond Fund and Facilities Revolving Revolving Parks Financing 1-5 Financing 1-10 Assets Cash and investments $ - $190,359 $434,623 $45,356 $420,647 $290,444 $190,157 Accounts receivable - net - 1,855 - - - - - Taxes receivable: Due from county 5 - - - - - - Delinquent 243 - - - - - - Special assessments receivable: Due from county - - - - - - - Delinquent 4,801 - - - - - - Deferred 43,291 - - - - - - Interfund loan receivable 616,983 2,317,533 - - - - - Total assets $665,323 $2,509,747 $434,623 $45,356 $420,647 $290,444 $190,157 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $2,500 $9,588 $1,373 $ - $ - $ - Due to other governments 4,579 - - - - 425 481 Contracts payable - - - - 11,626 - - Interfund loan payable - - - - 100,361 - - Total liabilities 4,579 2,500 9,588 1,373 111,987 425 481 Deferred inflows of resources: Unavailable revenue 48,334 - - - - - - Fund balance: Restricted - - - - - 290,019 189,676 Assigned 612,410 2,507,247 425,035 43,983 308,660 - - Unassigned - - - - - - - Total fund balance 612,410 2,507,247 425,035 43,983 308,660 290,019 189,676 Total liabilities, deferred inflows of resources, and fund balance $665,323 $2,509,747 $434,623 $45,356 $420,647 $290,444 $190,157 121 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING BALANCE SHEET NONMAJOR CAPITAL PROJECT FUNDS December 31, 2017 418 Tax 419 Tax 421 Increment Increment 420 MSA Street Financing 1-11 Financing 1-12 Construction Maintenance Assets Cash and investments $ - $ - $843,374 $362,495 Accounts receivable - net - - - - Taxes receivable: Due from county - - - - Delinquent - - - - Special assessments receivable: Due from county - - - - Delinquent - - - - Deferred - - - - Interfund loan receivable - - - - Total assets $0 $0 $843,374 $362,495 Liabilities, Deferred Inflows of Resources, and Fund Balance Liabilities: Accounts payable $ - $ - $ - $81,227 Due to other governments 2,845 1,044 - - Contracts payable - - - 21,026 Interfund loan payable 775,154 - - - Total liabilities 777,999 1,044 0 102,253 Deferred inflows of resources: Unavailable revenue - - - - Fund balance: Restricted - - - - Assigned - - 843,374 260,242 Unassigned (777,999)(1,044) - - Total fund balance (777,999)(1,044)843,374 260,242 Total liabilities, deferred inflows of resources, and fund balance $0 $0 $843,374 $362,495 122 Statement 25 Page 2 of 2 Total 484 2040 Nonmajor 422 Surface 424 Surface 478 Fire 481 Birch St/ Comp 485 2018 Capital Water 423 Street Water House # 2 Centerville Rd Plan Street Project Management Reconstruction Maintenance Construction Improvements Update Reconstruction Funds $995,093 $706,274 $105,798 $92,081 $133,592 $36,758 $ - $4,847,051 - - - - - - - 1,855 - - - - - - - 5 - - - - - - - 243 567 - - - - - - 567 3,276 - - - - - - 8,077 203,449 84,742 - - - - - 331,482 - - - - - - - 2,934,516 $1,202,385 $791,016 $105,798 $92,081 $133,592 $36,758 $0 $8,123,796 $15,428 $ - $2,349 $1,888 $ - $33,132 $ - $147,485 - - - - - - - 9,374 - - 2,610 90,193 - - - 125,455 - - - - - - 197,668 1,073,183 15,428 0 4,959 92,081 0 33,132 197,668 1,355,497 206,725 84,742 - - - - - 339,801 - - - - - - - 479,695 980,232 706,274 100,839 - 133,592 3,626 - 6,925,514 - - - - - - (197,668) (976,711) 980,232 706,274 100,839 0 133,592 3,626 (197,668) 6,428,498 $1,202,385 $791,016 $105,798 $92,081 $133,592 $36,758 $0 $8,123,796 123 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2017 402 Capital 403 Office 405 301 Closed 401 Building Equipment Equipment Dedicated Bond Fund and Facilities Revolving Revolving Parks Revenues: General property taxes $33 $ - $ - $ - $ - Tax increment - - - - - Intergovernmental - - - - - Special assessments 14,775 - - - - Charges for services - 186,278 - - 361,788 Investment earnings 4,781 1,974 5,244 407 4,227 Miscellaneous - - 19,235 - 338 Total revenues 19,589 188,252 24,479 407 366,353 Expenditures: Current: General government 5,539 1,439 - - - Public services - - - - - Community development - - - - - Capital outlay: General government - 217,986 - 10,909 - Public safety - - 805,140 3,053 - Public services - - 305,912 1,710 339,636 Debt service: Interest and fiscal charges - - - - 5,836 Total expenditures 5,539 219,425 1,111,052 15,672 345,472 Revenues over (under) expenditures 14,050 (31,173) (1,086,573) (15,265)20,881 Other financing sources (uses): Transfers in 36,464 - - 25,000 50,000 Transfers out (317,717) - - - (14,257) Issuance of debt - - 311,000 - - Proceeds from sale of capital assets - - 103,328 - - Total other financing sources (uses)(281,253)0 414,328 25,000 35,743 Net change in fund balance (267,203) (31,173) (672,245)9,735 56,624 Fund balance - January 1 879,613 2,538,420 1,097,280 34,248 252,036 Fund balance - December 31 $612,410 $2,507,247 $425,035 $43,983 $308,660 124 Statement 26 Page 1 of 2 411 Tax 417 Tax 418 Tax 419 Tax 421 422 Surface Increment Increment Increment Increment 420 MSA Street Water 423 Street Financing 1-5 Financing 1-10 Financing 1-11 Financing 1-12 Construction Maintenance Management Reconstruction $ - $ - $ - $ - $ - $ - $ - $ - 39,653 151,542 120,957 - - - - - - - - - 397,433 - - - - - - - - - 273,219 14,192 - - - - - 45,099 - - 2,036 1,804 - - 18,822 3,256 6,516 5,412 - - - - 16,487 - - - 41,689 153,346 120,957 0 432,742 48,355 279,735 19,604 - - - - - - - - - - - - - 512,091 48,147 - 568 1,256 3,016 1,044 - - - - - - - - - - - - - - - - - - - - - - - - - - 24,349 - - - - - - - - - 568 1,256 3,016 1,044 0 512,091 72,496 0 41,121 152,090 117,941 (1,044) 432,742 (463,736) 207,239 19,604 - - - - - 540,800 67,927 - - (151,542) (120,957) - (1,601,538) - (30,355) - - - - - - - - - - - - - - - - - 0 (151,542) (120,957) 0 (1,601,538) 540,800 37,572 0 41,121 548 (3,016) (1,044) (1,168,796) 77,064 244,811 19,604 248,898 189,128 (774,983) - 2,012,170 183,178 735,421 686,670 $290,019 $189,676 ($777,999) ($1,044) $843,374 $260,242 $980,232 $706,274 125 CITY OF LINO LAKES, MINNESOTA SUBCOMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR CAPITAL PROJECT FUNDS For The Year Ended December 31, 2017 424 Surface 477 478 Fire 479 480 Water 21st Ave House # 2 Well #6 Northpointe Maintenance Extension Construction Construction Improvements Revenues: General property taxes $ - $ - $ - $ - $ - Tax increment - - - - - Intergovernmental - - - - - Special assessments - - - - - Charges for services - - - - - Investment earnings 1,175 - 710 222 2,555 Miscellaneous - - - - - Total revenues 1,175 0 710 222 2,555 Expenditures: Current: General government - - - - - Public services 106,608 - - - - Community development - - - - - Capital outlay: General government - - - - - Public safety - - - - - Public services - 1,851 4,339 13,813 199 Debt service: Interest and fiscal charges - - - - - Total expenditures 106,608 1,851 4,339 13,813 199 Revenues over (under) expenditures (105,433) (1,851) (3,629) (13,591)2,356 Other financing sources (uses): Transfers in 125,000 269,412 5,953 - - Transfers out - (67,927) - (9,291) (324,645) Issuance of debt - - - - - Proceeds from sale of capital assets - - - - - Total other financing sources (uses)125,000 201,485 5,953 (9,291) (324,645) Net change in fund balance 19,567 199,634 2,324 (22,882) (322,289) Fund balance - January 1 81,272 (199,634) (2,324) 22,882 322,289 Fund balance - December 31 $100,839 $0 $0 $0 $0 126 Statement 26 Page 2 of 2 483 Blackduck/ 484 2040 Total 481 Birch St/ 482 2015 Aqua Lane Comp 485 2018 Nonmajor Centerville Rd Street Watermain Plan Street Capital Improvements Reconstruction Extension Update Reconstruction Project Funds $ - $ - $ - $ - $ - $33 - - - - - 312,152 - - - 16,000 - 413,433 - - - - - 302,186 - - - - - 593,165 1,042 1,279 2,952 - - 64,414 - - - - - 36,060 1,042 1,279 2,952 16,000 0 1,721,443 - - - - - 6,978 - - - 166,386 197,668 1,030,900 - - - - - 5,884 - - - - - 228,895 - - - - - 808,193 878 652 66,626 - - 759,965 - - - - - 5,836 878 652 66,626 166,386 197,668 2,846,651 164 627 (63,674) (150,386) (197,668) (1,125,208) - - - 154,012 - 1,274,568 - (195,852) (274,474) - - (3,108,555) - - - - - 311,000 - - - - - 103,328 0 (195,852) (274,474) 154,012 0 (1,419,659) 164 (195,225) (338,148) 3,626 (197,668) (2,544,867) 133,428 195,225 338,148 - - 8,973,365 $133,592 $0 $0 $3,626 ($197,668) $6,428,498 127 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND - PROGRAM RECREATION Statement 27 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For The Year Ended December 31, 2017 Budgeted Amounts 2017 Actual Amounts Variance with Final Budget - Positive (Negative) Original Final Revenues: Charges for services $127,235 $127,235 $108,892 ($18,343) Investment earnings - - 370 370 Total revenues 127,235 127,235 109,262 (17,973) Expenditures: Public services: Current: Personal services 57,325 57,325 56,010 1,315 Supplies 36,160 36,160 32,811 3,349 Other services and charges - - 8,836 (8,836) Contractual services 22,000 22,000 45,039 (23,039) Capital outlay 700 700 - 700 Total expenditures 116,185 116,185 142,696 (26,511) Revenues over (under) expenditures 11,050 11,050 (33,434) (44,484) Other financing sources (uses): Transfers out (10,000) (10,000) - (10,000) Net change in fund balance $1,050 $1,050 (33,434) ($34,484) Fund balance - January 1 38,098 Fund balance - December 31 $4,664 128 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CHANGES IN ASSETS AND LIABILITIES Statement 28 AGENCY FUNDS For The Year Ended December 31, 2017 Balance Balance January 1,December 31, 2017 Additions Deletions 2017 Assets: Cash and investments $825,373 $1,070,581 $176,443 $1,719,511 Liabilities: Deposits payable $825,373 $1,070,581 $176,443 $1,719,511 129 - This page intentionally left blank - 130 STATISTICAL SECTION (UNAUDITED) 131 - This page intentionally left blank - 132 This part of the City of Lino Lakes, Minnesota's Comprehensive Annual Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City's overall financial health. Table Number Financial Trends Tables 1-4 These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity Tables 5-8 These tables contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity Tables 9-12 These tables present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information Tables 13-14 These tables offer demographic and economic indicators to help the reader understand the environment wihthin which the City's financial activities take place. Operating Information Tables 15-17 These tables contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive financial reports for the relevant year. STATISTICAL SECTION (UNAUDITED) Contents 133 CITY OF LINO LAKES, MINNESOTA NET POSITION BY COMPONENT Last Ten Fiscal Years (Accrual Basis of Accounting) 2008 2009 2010 2011 Governmental activities: Net investment in capital assets $28,472,865 $23,400,453 $22,562,217 $24,600,103 Restricted 9,870,676 9,414,474 8,428,025 11,598,803 Unrestricted 10,790,359 15,926,322 16,738,885 13,463,210 Total governmental activities net position $49,133,900 $48,741,249 $47,729,127 $49,662,116 Business-type activities: Net investment in capital assets $30,372,670 $30,071,840 $29,648,461 $29,216,866 Unrestricted 9,028,778 10,112,207 10,728,626 11,201,362 Total business-type activities net position $39,401,448 $40,184,047 $40,377,087 $40,418,228 Primary government: Net investment in capital assets $58,845,535 $53,472,293 $52,210,678 $53,816,969 Restricted 9,870,676 9,414,474 8,428,025 11,598,803 Unrestricted 19,819,137 26,038,529 27,467,511 24,664,572 Total primary government net position $88,535,348 $88,925,296 $88,106,214 $90,080,344 GASB 68 was implemented in 2015. Net position was restated for 2014 to reflect the reporting of net pension liability and pension related deferred outflows of resources. Net position for years prior to 2014 was not restated. GASB 75 was implemented in 2017. Net position was restated for 2016 to reflect the reporting of the OPEB liability and OPEB related deferred inflows of resources. Net position for years prior to 2016 was not restated. 134 Table 1 2012 2013 2014 2015 2016 2017 $22,166,342 $22,241,821 $19,540,807 $18,230,746 $18,597,344 $22,868,259 11,595,112 11,000,033 8,666,357 8,635,293 13,342,852 11,730,147 17,639,038 16,849,636 20,527,704 13,888,120 10,187,254 12,017,212 $51,400,492 $50,091,490 $48,734,868 $40,754,159 $42,127,450 $46,615,618 $28,798,095 $28,423,284 $27,556,022 $29,127,829 $31,860,610 $31,831,950 12,102,013 12,999,182 13,888,278 14,672,630 13,863,447 14,846,045 $40,900,108 $41,422,466 $41,444,300 $43,800,459 $45,724,057 $46,677,995 $50,964,437 $50,665,105 $47,096,829 $47,358,575 $50,457,954 $54,700,209 11,595,112 11,000,033 8,666,357 8,635,293 13,342,852 11,730,147 29,741,051 29,848,818 34,415,982 28,560,750 24,050,701 26,863,257 $92,300,600 $91,513,956 $90,179,168 $84,554,618 $87,851,507 $93,293,613 135 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2008 2009 2010 2011 Expenses Governmental activities: General government $2,323,358 $2,201,439 $1,987,415 $1,990,137 Public safety 4,051,162 4,299,366 3,971,261 4,019,101 Public services 8,528,574 5,341,113 5,092,970 9,329,451 Conservation of natural resources 184,624 215,607 197,571 139,544 Community development 1,114,158 1,005,997 1,105,254 617,747 Interest and fees on long-term debt 1,045,781 928,668 1,064,172 927,535 Total governmental activities expenses 17,247,657 13,992,190 13,418,643 17,023,515 Business-type activities: Water 1,020,770 1,089,569 1,045,901 966,643 Sewer 1,287,943 1,432,107 1,466,847 1,638,063 Total business-type activities expenses 2,308,713 2,521,676 2,512,748 2,604,706 Total primary government expenses $19,556,370 $16,513,866 $15,931,391 $19,628,221 Program revenues Governmental activities: Charges for services: General government $79,844 $101,741 $98,403 $103,687 Public safety 1,296,418 725,747 691,005 713,985 Public services 600,325 594,168 605,207 593,263 Conservation of natural resources 3,660 3,858 4,153 4,392 Community development 11,623 8,667 14,148 5,138 Operating grants and contributions 693,065 682,797 617,450 593,798 Capital grants and contributions 1,094,789 1,357,015 1,388,984 7,347,613 Total governmental activities program revenues 3,779,724 3,473,993 3,419,350 9,361,876 Business-type activities: Charges for services: Water 1,058,493 1,365,817 1,087,013 1,090,104 Sewer 1,472,093 1,502,164 1,498,218 1,494,188 Operating grants and contributions - 62,710 - - Capital grants and contributions 10,117 8,769 8,709 1,462 Total business-type activities 2,540,703 2,939,460 2,593,940 2,585,754 Total primary government program revenues $6,320,427 $6,413,453 $6,013,290 $11,947,630 136 Table 2 Page 1 of 2 2012 2013 2014 2015 2016 2017 $1,883,961 $1,566,388 $2,036,550 $2,016,351 $2,456,864 $2,395,633 4,046,415 3,950,197 4,107,759 5,135,865 6,567,523 5,166,538 6,795,150 5,376,671 5,880,030 7,971,712 6,228,893 5,492,395 184,051 141,204 159,649 186,111 216,905 200,016 430,121 404,726 407,448 432,268 454,144 459,455 837,755 951,842 618,680 632,876 831,529 518,897 14,177,453 12,391,028 13,210,116 16,375,183 16,755,858 14,232,934 949,121 927,800 965,641 1,394,897 1,367,693 1,245,249 1,527,637 1,584,395 1,628,258 2,089,842 1,850,962 1,901,821 2,476,758 2,512,195 2,593,899 3,484,739 3,218,655 3,147,070 $16,654,211 $14,903,223 $15,804,015 $19,859,922 $19,974,513 $17,380,004 $129,151 $93,118 $103,072 $818,468 $520,231 $550,117 642,745 697,584 763,470 199,498 1,359,426 2,249,152 668,128 632,002 621,221 603,866 865,327 801,633 19,297 1,347 1,882 - - - 16,940 28,118 39,395 - - - 450,179 527,368 840,676 526,107 722,858 1,106,014 5,125,693 941,960 335,733 1,176,732 5,046,307 4,141,383 7,052,133 2,921,497 2,705,449 3,324,671 8,514,149 8,848,299 1,371,809 1,208,742 965,425 1,014,836 1,094,897 1,150,834 1,505,781 1,516,397 1,564,099 1,621,633 1,659,322 1,698,963 - - 263,024 263,024 - - 20,018 883 1,035 3,035,031 1,543,947 836,029 2,897,608 2,726,022 2,793,583 5,934,524 4,298,166 3,685,826 $9,949,741 $5,647,519 $5,499,032 $9,259,195 $12,812,315 $12,534,125 137 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET POSITION Last Ten Fiscal Years (Accrual Basis of Accounting) 2008 2009 2010 2011 Net (expense) revenue: Governmental activities ($13,467,933) ($10,518,197) ($9,999,293) ($7,661,639) Business-type activities 231,990 417,784 81,192 (18,952) Total primary government, net (13,235,943) (10,100,413) (9,918,101) (7,680,591) General revenues and other changes in net position: Governmental activities: Property taxes 9,424,697 9,808,324 8,764,183 8,768,805 Unrestricted grants and contributions 129,607 11,321 4,389 4,072 Unrestricted investment earnings 576,071 429,325 225,677 251,250 Gain on disposal of capital assets 12,512 12,644 - 37,579 Special item - withdrawal from fire district - - - - Transfers (994,202) (136,068) (7,078) 66,122 Total governmental activities 9,148,685 10,125,546 8,987,171 9,127,828 Business-type activities: Unrestricted investment earnings 274,498 228,747 104,770 126,215 Transfers 994,202 136,068 7,078 (66,122) Total business-type activities 1,268,700 364,815 111,848 60,093 Total primary government $10,417,385 $10,490,361 $9,099,019 $9,187,921 Change in net position: Governmental activities ($4,319,248) ($392,651) ($1,012,122) $1,466,189 Business-type activities 1,500,690 782,599 193,040 41,141 Total primary government change in net position ($2,818,558) $389,948 ($819,082) $1,507,330 GASB 68 was implemented in 2015. Pension expense for years prior to 2015 was not restated. GASB 75 was implemented in 2017. OPEB expense for years prior to 2017 was not restated. 138 Table 2 Page 2 of 2 2012 2013 2014 2015 2016 2017 ($7,125,320) ($9,469,531) ($10,504,667) ($13,050,512) ($8,241,709) ($5,384,635) 420,850 213,827 199,684 2,449,785 1,079,511 538,756 (6,704,470) (9,255,704) (10,304,983) (10,600,727) (7,162,198) (4,845,879) 8,610,709 8,563,595 8,806,886 9,243,236 9,343,500 9,753,971 4,941 4,442 4,443 5,363 91,385 181,712 202,828 (54,204) 265,695 112,961 210,142 207,792 4,175 - 1,727 17,836 66,255 38,022 - - - - 1,333,166 - 41,043 (353,304) 69,294 66,834 (914,414) (308,694) 8,863,696 8,160,529 9,148,045 9,446,230 10,130,034 9,872,803 102,073 (44,773) 154,468 51,167 107,119 106,488 (41,043) 353,304 (69,294) (66,834) 914,414 308,694 61,030 308,531 85,174 (15,667) 1,021,533 415,182 $8,924,726 $8,469,060 $9,233,219 $9,430,563 $11,151,567 $10,287,985 $1,738,376 ($1,309,002) ($1,356,622) ($3,604,282) $1,888,325 $4,488,168 481,880 522,358 284,858 2,434,118 2,101,044 953,938 $2,220,256 ($786,644) ($1,071,764) ($1,170,164) $3,989,369 $5,442,106 139 CITY OF LINO LAKES, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years (Modified Accrual Basis of Accounting) 2008 2009 2010 2011 General Fund: Reserved $190,825 $196,568 $181,471 $ - Unreserved 5,393,316 5,191,396 5,445,334 - Nonspendable - - - 165,079 Unassigned - - - 5,440,101 Total general fund $5,584,141 $5,387,964 $5,626,805 $5,605,180 All other governmental funds: Reserved reported in: Special revenue funds $226,973 $227,176 $227,342 $ - Capital projects funds 812,400 736,772 658,875 - Debt service funds 3,405,272 3,457,349 2,986,102 - Permanent funds 100,000 100,000 100,000 - Unreserved reported in: Special revenue funds 106,573 93,956 110,471 - Capital projects funds 5,927,411 11,611,835 12,537,841 - Debt service funds - (558,443) (1,093,765) - Permanent funds 22,224 15,824 12,676 - Nonspendable - - - 906,010 Restricted - - - 2,658,010 Committed - - - 110,568 Assigned - - - 10,808,268 Unassigned - - - (3,154,496) Total all other governmental funds $10,600,853 $15,684,469 $15,539,542 $11,328,360 Total all funds $16,184,994 $21,072,433 $21,166,347 $16,933,540 The City implemented GASB Statement No. 54 for the fiscal year ended December 31, 2011. Information for years prior to 2011 is presented in accordance with fund balance classifications in effect at that time. 140 Table 3 2012 2013 2014 2015 2016 2017 $ - $ - $ - $ - $ - $ - - - - - - - 180,786 176,797 253,471 220,677 225,114 243,317 5,053,031 5,209,286 5,053,064 5,725,736 6,031,077 6,573,608 $5,233,817 $5,386,083 $5,306,535 $5,946,413 $6,256,191 $6,816,925 $ - $ - $ - $ - $ - $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 823,113 101,710 101,302 101,177 101,220 101,659 3,041,524 3,651,550 2,830,526 2,637,638 6,502,424 5,289,641 115,196 121,075 152,078 163,239 170,950 175,401 15,573,179 15,710,702 18,027,773 15,022,852 15,778,480 14,581,669 (3,262,728) (3,393,547) (375,851) (3,815,304) (978,496) (2,909,173) $16,290,284 $16,191,490 $20,735,828 $14,109,602 $21,574,578 $17,239,197 $21,524,101 $21,577,573 $26,042,363 $20,056,015 $27,830,769 $24,056,122 141 CITY OF LINO LAKES, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS Last Ten Fiscal Years 2008 2009 2010 2011 Revenues: Property taxes $9,095,085 $9,561,570 $8,647,488 $8,655,971 Licenses and permits 802,135 307,714 330,138 322,030 Intergovernmental 1,004,476 1,259,016 1,176,863 1,331,914 Special assessments 950,188 968,995 851,270 904,522 Charges for services 872,534 778,163 780,044 812,604 Fines and forfeits 133,531 111,807 127,203 154,020 Investment earnings 576,071 429,325 225,677 251,244 Miscellaneous 516,415 513,306 502,992 460,710 Total revenues 13,950,435 13,929,896 12,641,675 12,893,015 Expenditures: Current: General government 2,058,267 1,918,246 1,730,390 1,773,515 Public safety 3,806,389 4,122,352 3,798,106 3,791,329 Public services 6,575,568 3,071,646 2,848,232 3,251,923 Conservation of natural resources 183,024 209,466 185,232 134,122 Community development 1,113,232 1,005,095 1,098,682 624,286 Capital outlay 585,875 501,806 282,938 4,209,593 Debt service: Principal 1,749,000 1,908,000 1,866,000 2,030,000 Interest and fiscal charges 1,074,052 994,809 1,042,883 983,129 Bond issuance costs - - - - Total expenditures 17,145,407 13,731,420 12,852,463 16,797,897 Excess (deficiency) of revenues over expenditures (3,194,972) 198,476 (210,788) (3,904,882) Other financing sources (uses): Proceeds from sale of capital assets 13,750 35,700 20,600 50,953 Issuance of debt 209,000 4,596,000 1,170,000 120,000 Premium on bonds issued - 11,141 10,980 - Payment to refunded bond escrow agent - - (965,000) - Loan payable reapportionment - - - (565,000) Transfers in 4,763,391 1,413,985 1,195,747 2,971,715 Transfers out (4,796,159) (1,367,863) (1,127,625) (2,905,593) Total other financing sources (uses)189,982 4,688,963 304,702 (327,925) Special item - withdrawal from fire district - - - - Net change in fund balance ($3,004,990) $4,887,439 $93,914 ($4,232,807) Debt service as a percentage of noncapital expenditures 17.0%21.9%23.1%23.9% Debt service as a percentage of total expenditures 16.5%21.1%22.6%17.9% 142 Table 4 2012 2013 2014 2015 2016 2017 $8,560,340 $8,475,214 $8,612,011 $8,950,507 $9,369,090 $9,772,741 319,172 431,654 407,681 551,202 895,581 1,447,571 5,267,570 500,963 823,025 679,627 706,944 1,080,953 816,998 2,130,519 1,278,202 703,141 4,400,635 2,283,974 744,633 717,300 731,640 696,501 1,293,556 1,327,781 155,956 119,079 149,653 127,803 251,653 613,593 202,825 (53,466)265,794 112,915 210,142 207,792 414,088 384,749 767,477 766,072 417,448 410,640 16,481,582 12,706,012 13,035,483 12,587,768 17,545,049 17,145,045 1,619,215 1,569,722 1,692,175 1,643,966 1,845,667 1,952,669 3,861,265 3,744,957 3,845,732 11,895,482 4,333,080 4,360,517 4,396,406 3,956,766 4,156,497 4,779,696 3,203,837 3,414,412 176,318 134,127 149,292 191,038 201,635 183,392 435,154 418,533 402,750 422,935 425,402 433,144 616,931 291,135 674,488 1,566,057 3,044,615 2,152,848 2,145,000 2,214,000 3,664,000 2,802,511 2,769,525 8,058,525 831,875 774,172 696,780 542,166 816,362 640,029 47,054 17,137 - 62,831 98,906 - 14,129,218 13,120,549 15,281,714 23,906,682 16,739,029 21,195,536 2,352,364 (414,537) (2,246,231) (11,318,914)806,020 (4,050,491) 4,175 16,727 1,727 54,522 72,182 103,328 2,165,000 808,000 3,140,000 8,606,250 5,464,000 311,000 - 6,558 - 114,960 41,497 - - (435,000) - - - - - - - - - - 1,979,457 1,722,541 2,608,534 3,392,971 3,521,180 6,984,443 (1,910,435) (1,650,817) (2,539,240) (3,336,137) (3,241,959) (7,122,927) 2,238,197 468,009 3,211,021 8,832,566 5,856,900 275,844 - - - - 1,111,834 - $4,590,561 $53,472 $964,790 ($2,486,348) $7,774,754 ($3,774,647) 22.0%23.3%29.9%15.0%26.2%45.4% 21.1%22.8%28.5%14.0%21.4%41.0% 143 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 2008 $18,382,645 $3,431,107 $279,102 $22,092,854 38.97 $2,021,961,000 2009 18,919,087 4,002,349 275,496 23,196,932 38.73 2,102,473,000 2010 17,978,917 3,800,004 291,904 22,070,825 37.91 2,001,889,600 2011 16,214,698 3,223,901 303,964 19,742,563 42.04 1,804,121,500 2012 14,743,557 2,945,026 310,870 17,999,453 42.89 1,640,455,854 2013 13,693,905 2,571,769 336,047 16,601,721 46.77 1,519,857,242 2014 13,646,798 2,450,473 341,974 16,439,245 46.68 1,509,921,169 2015 15,455,516 2,536,783 347,316 18,339,615 43.77 1,694,366,064 2016 15,472,329 2,609,482 359,006 18,440,817 46.02 1,699,288,883 2017 16,480,328 2,767,099 396,378 19,643,805 45.14 1,808,417,118 The tax capacity (assessed taxable value) of the property is calculated by applying a statutory formula to the estimated market value of the property. Source: Anoka County, Minnesota Assessors' Office 144 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING PROPERTY TAX CAPACITY RATES 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 2008 34.560 4.407 38.967 35.258 31.078 6.956 73.292 112.259 2009 34.716 4.017 38.733 34.593 32.078 5.611 72.282 111.015 2010 34.086 3.819 37.905 37.285 35.189 5.879 78.353 116.258 2011 37.425 4.616 42.041 43.695 39.952 6.278 89.925 131.966 2012 37.501 5.393 42.894 40.010 41.146 6.691 87.847 130.741 2013 40.964 5.810 46.774 43.681 44.411 6.940 95.032 141.806 2014 39.784 6.899 46.683 46.186 43.239 6.712 96.137 142.820 2015 37.819 5.951 43.770 36.562 38.123 6.021 80.706 124.476 2016 35.025 10.994 46.019 36.426 38.894 6.405 81.725 127.744 2017 35.105 10.035 45.140 29.097 36.841 5.810 71.748 116.888 The majority of the City is serviced by School District 12. Rates for debt service are based on each year's requirements. Source: Anoka County Property Records and Tax Division City Direct Rate Overlapping Rates 145 - This page intentionally left blank - 146 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 Target Corporation $214,636 1 1.09% $278,554 1 1.26% Northern States Power Co 200,922 2 1.02% 143,459 3 0.65% WI MN AB BIYNAH LLC 196,198 3 1.00% - - - Moline Concrete Products 113,360 4 0.58% 131,936 5 0.60% Gargaro Properties LLC 111,084 5 0.57% 100,390 8 0.45% Taylor Corporation 94,804 6 0.48% 129,568 6 0.59% Kohl's Department Store 87,250 7 0.44% 140,306 4 0.64% Minnegasco Inc 81,806 8 0.42% - - - Marmon/Keystone Corp 78,202 9 0.40% - - - Lino Lakes Assisted Living LLC 73,803 10 0.38% - - - Lino Lakes Realty LLC - - 265,694 2 1.20% Legacy Holdings LLC - - 122,134 7 0.55% Lino Lakes Business Center LLC - - 96,204 9 0.44% F&G Incorporated - - 94,476 10 0.43% Total $1,252,065 6.38% $1,502,721 6.81% Source: Anoka County 2017 2008 147 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 2008 $7,973,236 $893,720 $8,866,956 $8,581,974 96.8% 2009 8,295,172 949,166 9,244,338 8,982,756 97.2% 2010 7,816,232 879,182 8,695,414 8,400,439 96.6% 2011 7,719,240 940,760 8,660,000 8,486,845 98.0% 2012 7,192,818 1,034,441 8,227,259 8,095,502 98.4% 2013 7,190,538 1,025,090 8,215,628 8,094,911 98.5% 2014 7,098,922 1,197,122 8,296,044 8,229,986 99.2% 2015 7,490,578 1,195,494 8,686,072 8,630,830 99.4% 2016 7,018,572 2,039,856 9,058,428 9,022,964 99.6% 2017 7,360,431 2,131,424 9,491,855 9,439,688 99.5% Current year levies and collections include State levy related credits, but do not include tax increment levies and collections. 148 Table 8 Total Collections to Date Collections in Percentage Outstanding Percentage Subsequent of Delinquent of Levy Years Amount Levy Taxes Outstanding $129,219 $8,711,193 98.2%$155,763 1.8% 194,540 9,177,296 99.3%67,042 0.7% 182,890 8,583,329 98.7%112,085 1.3% 126,993 8,613,838 99.5%46,162 0.5% 77,752 8,173,254 99.3%54,005 0.7% 68,948 8,163,859 99.4%51,769 0.6% 40,447 8,270,433 99.7%25,611 0.3% 25,712 8,656,542 99.7%29,530 0.3% 9,770 9,032,734 99.7%25,694 0.3% - 9,439,688 99.5%52,167 0.5% 149 CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Business-Type Governmental Activities Activities General General Special Other Obligation Fiscal Obligation Assessments Long-Term Revenue Year Bonds Payable Debt Bonds 2008 $11,184,000 $11,365,000 $ - $1,530,000 2009 10,712,000 10,265,000 4,260,000 1,170,000 2010 10,141,000 9,175,000 4,260,000 795,000 2011 9,421,000 7,985,000 3,695,000 405,000 2012 10,331,000 7,095,000 3,695,000 - 2013 9,610,000 5,975,000 3,695,000 - 2014 9,036,000 7,640,000 2,080,000 - 2015 16,377,291 6,620,000 1,720,000 - 2016 18,337,081 7,795,000 1,609,000 - 2017 14,837,768 4,905,000 233,475 - Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for personal income and population data. (1) Personal income information is not yet available for 2017 from the Bureau of Economic Analysis Report 150 Table 9 Total Percentage Percentage Primary of Assessed of Personal Per Government Market Value Income Capita $24,079,000 1.19%3.08%$1,205 26,407,000 1.24%3.44%1,301 24,371,000 1.22%3.13%1,206 21,506,000 1.19%2.59%1,049 21,121,000 1.29%2.46%1,024 19,280,000 1.27%2.19%925 18,756,000 1.24%2.04%888 24,717,291 1.46%2.64%1,205 27,741,081 1.63%2.84%1,334 19,976,243 1.10%(1)946 151 CITY OF LINO LAKES, MINNESOTA RATIOS OF NET GENERAL BONDED DEBT Last Ten Fiscal Years General Special Total Fiscal Obligation Assessments Primary Year Bonds Payable Government 2008 $11,184,000 $11,365,000 $22,549,000 2009 10,712,000 10,265,000 20,977,000 2010 10,141,000 9,175,000 19,316,000 2011 9,421,000 7,985,000 17,406,000 2012 10,331,000 7,095,000 17,426,000 2013 9,610,000 5,975,000 15,585,000 2014 9,036,000 7,640,000 16,676,000 2015 16,377,291 6,620,000 22,997,291 2016 18,337,081 7,795,000 26,132,081 2017 14,837,768 4,905,000 19,742,768 Details regarding the City's outstanding debt can be found in the notes to the financial statements. See the Demographic and Economic Statistics schedule for population data. Governmental Activities 152 Table 10 Less: Amounts Percentage Per Available in Debt Net of Assessed Per Capita (Total)Service Funds Bonded Debt Market Value Capita (Net) $1,128 $3,405,272 $19,143,728 0.95%$958 1,033 3,457,349 17,519,651 0.82%863 955 2,986,102 16,329,898 0.82%808 849 2,638,129 14,767,871 0.82%720 845 3,035,557 14,390,443 0.88%698 748 3,357,196 12,227,804 0.80%587 789 2,501,738 14,174,262 0.94%671 1,121 2,813,226 20,184,065 1.19%984 1,256 8,420,263 17,711,818 1.04%851 935 5,171,905 14,570,863 0.86%690 153 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT Table 11 As of December 31, 2017 Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable*Debt Overlapping debt: Anoka County $110,265,000 6.2%$6,816,325 ISD 12 95,953,685 44.2%42,382,122 ISD 624 88,915,000 3.2%2,808,741 ISD 831 159,565,000 7.2%11,467,589 Metropolitan Council 1,484,038,432 0.6%8,469,233 Rice Creek Watershed District 343,818 33.2%114,215 Anoka County Railroad Authority 24,310,000 6.2% 1,502,787 Total overlapping 73,561,012 City of Lino Lakes direct debt $19,976,243 100%19,976,243 Total direct and overlapping debt $93,537,255 *For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the City's boundaries and dividing it by each unit's total taxable assessed value. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Sources: taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt outstanding data provided by each governmental unit. 154 CITY OF LINO LAKES, MINNESOTA LEGAL DEBT MARGIN INFORMATION Table 12 Last Ten Fiscal Years Legal Debt Margin Calculation for Fiscal Year 2017 Market value $1,808,417,118 Applicable percentage 3% Debt limit 54,252,514 Debt applicable to limit: Total bonded debt 19,976,243 Less: Special assessment bonds (4,905,000) Tax abatement bonds (1,600,000) Tax increment bonds (1,625,000) Utility revenue bonds (1,420,000) 10,426,243 Legal debt margin $43,826,271 Net Debt Net Debt Legal Amount of Debt Applicable Fiscal Debt Applicable to Debt Applicable to to Limit Year Population Limit Limit Margin Debt Limit Per Capita 2008 19,987 $60,658,830 $3,804,000 $56,854,830 6.27% $190 2009 20,305 64,036,746 3,642,000 60,394,746 5.69% 179 2010 20,216 60,622,086 3,386,000 57,236,086 5.59% 167 2011 20,505 54,123,645 2,961,000 51,162,645 5.47% 144 2012 20,625 49,213,676 4,591,000 44,622,676 9.33% 223 2013 20,833 45,595,717 4,280,000 41,315,717 9.39% 205 2014 21,129 45,297,635 4,191,000 41,106,635 9.25% 198 2015 20,519 50,830,982 11,941,250 38,889,732 23.49% 582 2016 20,803 50,978,666 10,122,081 40,856,585 19.86% 487 2017 21,117 54,252,514 10,426,243 43,826,271 19.22% 494 Legal Debt Margin Calculation for Fiscal Years 2008 Through 2017 155 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 2008 19,987 $781,132 $39,082 6,768 6.9% 2009 20,305 768,341 37,840 6,725 7.8% 2010 20,216 777,912 38,480 6,523 7.1% 2011 20,505 831,170 40,535 6,426 5.9% 2012 20,625 857,753 41,588 6,421 5.6% 2013 20,833 879,903 42,236 6,392 4.5% 2014 21,129 917,252 43,412 6,410 3.4% 2015 20,519 934,764 45,556 6,371 3.3% 2016 20,803 975,682 46,901 6,473 3.9% 2017 21,117 Not available Not available 6,500 3.1% Sources: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census and 2016 which is a city estimate. (2) Information from Bureau of Economic Analysis Report. Anoka County statistics used as local information is unavailable. (3) Information from ISD # 12 website (audit report). (4) Information from MN Department of Employment and Economic Development. Anoka County statistics used as local information is unavailable. 156 CITY OF LINO LAKES, MINNESOTA PRINCIPAL EMPLOYERS 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 460 1 23.2% 600 1 33.1% ISD 12 - Centennial Schools 391 2 19.7% - - - Target Corporation 260 3 13.1% 240 3 13.2% Curtis 1000 (AdGraphics/Taylor Corp 200 4 10.1% 260 2 - Kohls 123 5 6.2% 160 5 8.8% Molin Concrete Products 120 6 6.1% 135 6 7.4% YMCA 120 7 6.1% 130 7 7.2% Distribution Alternatives 120 8 6.1% - - - Rehbein Transit, Inc.100 9 5.1% - - - Anoka County Juvenile Center 86 10 4.3% - - - Customer Manufacturing - - - 160 4 8.8% Synovis Interventional Systems - - - 70 8 3.9% Summit Fire Protection - - - 60 9 3.3% Total 1,980 1,815 (1)The statistic for total City employment is not available, therefore the percentage represents the percentage of the top ten listed. Information about the 10th largest employer of 2008 is not available. Source: City of Lino Lakes Official Statements and employer surveys 2017 2008 157 CITY OF LINO LAKES, MINNESOTA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM Last Ten Fiscal Years 2008 2009 2010 2011 General Government: Administration 5.00 5.00 4.00 3.50 Seniors 0.63 0.63 0.63 - Finance 3.50 3.50 3.00 3.00 Economic Development 1.00 1.00 1.00 1.00 Planning 2.00 2.00 2.00 1.00 Community Development 2.75 2.75 2.25 2.00 Building 1.00 1.00 1.00 - Other 1.40 1.40 1.40 0.70 Total General Government 17.28 17.28 15.28 11.20 Public Safety: Sworn Officers 27.00 27.00 27.00 25.00 Civilians 4.75 4.75 4.25 4.00 Fire - - - - Building Inspection 4.25 4.25 2.75 2.50 Total Public Safety 36.00 36.00 34.00 31.50 Public Works: Streets 7.35 7.35 6.85 7.00 Other 1.15 1.15 1.15 1.00 Total Public Works 8.50 8.50 8.00 8.00 Parks, Recreation and Forestry 9.80 9.80 9.30 9.00 Water 2.15 2.15 2.15 2.15 Sewer 2.15 2.15 2.15 2.15 Total 75.88 75.88 70.88 64.00 Source: City Finance Office Full-Time-Equivalent Employees as of December 31, 158 Table 15 2012 2013 2014 2015 2016 2017 3.50 3.50 3.50 3.50 4.00 4.00 - - - - - - 3.00 3.00 3.00 3.00 3.50 3.50 1.00 - - - - - 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 2.00 2.00 - - - - - - 0.70 0.70 0.70 0.70 0.65 0.65 11.20 10.20 10.20 10.20 11.15 11.15 25.00 25.00 25.00 26.00 27.00 27.00 3.00 3.00 4.00 4.00 4.50 4.50 - - 1.00 1.00 1.50 1.50 2.50 2.50 2.00 2.00 2.50 2.50 30.50 30.50 32.00 33.00 35.50 35.50 7.00 7.00 7.00 7.00 6.50 6.65 1.00 1.00 1.00 1.00 1.50 1.50 8.00 8.00 8.00 8.00 8.00 8.15 9.00 8.70 8.70 8.70 7.75 7.90 2.15 2.30 2.30 2.30 2.30 2.70 2.15 2.30 2.30 2.30 2.30 2.70 63.00 62.00 63.50 64.50 67.00 68.10 Full-Time-Equivalent Employees as of December 31, 159 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION/PROGRAM Last Ten Fiscal Years 2008 2009 2010 2011 General Government: Elections 2 1 2 1 Registered voters 12,723 11,805 12,284 11,705 Number of votes cast 11,051 4,354 8,545 4,314 Voter participation (registered)86.9%36.9%69.6%36.9% Public Safety: Police: Calls for Service 6,871 6,353 6,398 6,384 Traffic Citations & Warnings 3,252 3,187 2,743 2,604 Part I Crime Rate 1,461 1,075 982 1,117 Part II Crime Rate 3,767 3,151 2,911 2,911 Police: Case Numbers Generated Avg Response Time (Emergency & Non-Emergency) Part I Crime Offenses Part II Crime Offenses Clearance Rate Fire: Fire Call Load Fire Property Loss Fire Property Saved Fire Inspections Inspections: Building Permits (1) (2)5,041 1,535 509 452 Value of Building Permits $15,852,780 $9,586,160 $11,295,493 $11,192,264 Public Works: General Maintenance (hours)6,129 5,870 4,945 7,416 Street Mantenance (hours)3,851 3,267 3,099 4,352 Fleet Maintenance (hours)5,043 4,782 4,850 4,214 Snow Plowing/Sanding (hours)1,353 950 1,638 1,534 Culture and Recreation: Parks Park Maintenance (hours)11,136 12,406 9,257 9,813 Utilities: Water Maintenance (hours)5,716 5,041 3,560 3,568 Sanitary Sewer Maintenance (hours)3,760 3,486 3,531 3,557 (1) 4,337 and 581 repair permits issued in 2008 - 2009, respectively, due to storm damage. (2) Increase in permits issued - June 2017 storm damage. (3) The Public Safety Department modified the metrics maintained for business purposes in 2016. Those changes are reflected in the 2016 and 2017 Operating Indicators. Source: Various City Departments 160 Table 16 2012 2013 2014 2015 2016 2017 212121 13,478 12,020 12,610 12,143 13,636 12,624 11,546 1,575 7,854 4,085 11,562 2,165 85.7% 13.1% 62.3% 33.6% 84.8% 17.1% 6,344 6,210 6,281 6,210 6,210 (3) 2,694 2,597 2,296 2,199 2,199 (3) 983 918 631 1,226 1,091 (3) 2,396 2,144 1,836 2,395 3,635 (3) 16,321 18,199 5:26 minutes 4:42 minutes 224 176 746 808 73% 82% 269 316 $694,000 $325,100 $10,511,300 $6,342,100 53 117 459 490 431 654 761 5,422 $10,751,626 $17,683,665 $13,535,514 $26,570,593 $53,390,619 $50,984,047 6,939 3,994 5,200 7,839 5,534 6,313 5,926 5,740 3,840 3,347 4,053 3,765 3,945 4,548 4,746 4,322 4,437 3,986 594 1,639 2,141 754 960 928 9,739 8,480 8,537 8,332 9,698 8,576 3,585 3,119 3,189 3,240 3,539 3,278 3,517 3,109 3,178 3,240 3,539 3,278 161 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Table 17 Last Ten Fiscal Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Public Safety: Police: Stations 1111111111 Patrol Units 12 12 12 12 12 12 12 12 12 12 Fire: Stations 1111111222 Fire Trucks 5555555778 Public Works: Lights 673 673 673 673 673 673 673 673 815 838 Vehicles 29 29 29 29 29 29 29 29 39 39 City Streets (miles)100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 100.7 Culture & Recreation: Parks: Parks 18 18 18 18 18 18 18 18 17 18 Park Acres 141 141 141 141 141 141 141 141 139.6 147 Trails (miles)26 26 26 26 26 26 26 26 29.75 30 Park Shelters 7776666666 Basketball Courts 6666666666 Fishing Pier 111111111- Skating Rinks 4444444443 Soccer Fields 8888888864 Baseball/Softball Fields 20 20 20 20 20 20 20 20 8 8 Tennis Courts 222222222- Playgrounds 16 16 16 16 16 16 16 16 15 16 Water: Distribution System (miles)74.7 74.7 74.7 74.7 74.7 74.7 74.7 74.7 85.6 99.4 Water Connections 4,247 4,340 4,382 4,424 4,452 4,484 4,520 4,542 4,649 4,738 Gallons Pumped (millions)590 589 498 492 609 536 536 449 452 494 Number of Fire Hydrants 538 538 538 538 538 538 538 1024 1024 1028 Water Tower Capacity (millions gallons)2222222222 Sanitary Sewer: Collection System (miles)69.8 69.8 69.8 69.8 69.8 69.8 69.8 77.9 77.9 87.0 Sewer Connections 4,447 4,486 4,530 4,567 4,567 4,624 4,685 4,685 4,817 4,976 Storm Sewer: Pipe (miles)41.4 41.4 41.4 41.4 41.4 41.4 41.4 41.4 53.7 54.1 Source: Various City Departments 162 OTHER INFORMATION (UNAUDITED) 163 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF LONG-TERM DEBT December 31, 2017 Final Interest Issue Maturity Rates Date Date Long-term debt: General Obligation Bonds: 2014A Certificates of Indebtedness 1.00%2/1/14 12/31/17 2015A Certificates of Indebtedness 1.00%2/1/15 12/31/18 2015B Certificates of Indebtedness 1.50% 8/25/15 12/31/20 2016A Certificates of Indebtedness 1.00%2/1/16 12/31/19 2017A Certificates of Indebtedness 1.00%3/1/17 12/31/20 G.O. Tax Abatement Bonds, Series 2006C 4.00% - 4.30% 8/15/06 2/1/17 G.O. Utility Revenue Bonds, Series 2006D 4.00% - 4.15% 8/15/06 2/1/17 G.O. CIP Refunding Bonds, Series 2006E 4.00% 11/1/06 2/1/18 G.O. TIF Bonds, Series 2007A 4.00% - 4.125% 7/15/17 2/1/24 G.O. Refunding Bonds, Series 2012A 1.00% - 2.00% 11/15/12 2/1/24 G.O. Bonds 2015A 2.00% - 3.00% 8/1/15 2/1/31 EDA Lease Revenue Bonds 2015B 2.00% - 3.00% 10/1/15 4/1/36 G.O. Utility Revenue Bonds, Series 2016A 2.00% 11/23/16 2/1/27 G.O. Tax Abatement Refunding Bonds 2016C 1.00% - 1.50% 11/23/16 2/1/23 Total General Obligation Bonds Special Assessment Bonds: G.O. Improvement Bonds, Series 2005A 4.35% - 5.15% 11/1/05 2/1/17 G.O. Imp & Utility Revenue Bonds, Series 2010A 2.00% - 3.00% 7/9/10 2/1/20 G.O. Improvement Bonds, Series, 2013A 1.25% - 4.00% 7/15/13 2/1/24 G.O. Improvement Bonds, Series 2014A 0.40% - 2.30% 11/20/14 2/1/26 G.O. Improvement Refunding Bonds, Series 2016B 0.875% - 1.50% 11/23/16 2/1/21 Total Special Assessment Bonds G.O. Improvement Note, Series 2009A 3.70% - 4.00% 8/1/09 8/1/20 G.O. Capital Note, Series 2016A 2.00% 4/14/16 2/1/26 Total long-term debt 164 Exhibit 1 Payable Payable Principal Original Prior January 1, December 31, Due in Issue Payments 2017 Issued Payments 2017 2018 $495,000 $327,000 $168,000 $ - $168,000 $ - $ - 198,250 65,000 133,250 - 67,000 66,250 66,250 963,000 177,000 786,000 - 193,000 593,000 195,000 469,000 - 469,000 - 155,000 314,000 156,000 311,000 - - 311,000 - 311,000 102,000 2,460,000 705,000 1,755,000 - 1,755,000 - - 570,000 500,000 70,000 - 70,000 - - 2,990,000 2,160,000 830,000 - 405,000 425,000 425,000 4,215,000 2,190,000 2,025,000 - 400,000 1,625,000 190,000 2,015,000 520,000 1,495,000 - 225,000 1,270,000 230,000 3,095,000 - 3,095,000 - 190,000 2,905,000 195,000 4,350,000 - 4,350,000 - 165,000 4,185,000 170,000 1,420,000 - 1,420,000 - - 1,420,000 130,000 1,600,000 - 1,600,000 - - 1,600,000 225,000 25,151,250 6,644,000 18,196,250 311,000 3,793,000 14,714,250 2,084,250 5,550,000 3,190,000 2,360,000 - 2,360,000 - - 1,000,000 575,000 425,000 - 100,000 325,000 105,000 615,000 120,000 495,000 - 60,000 435,000 60,000 2,645,000 105,000 2,540,000 - 370,000 2,170,000 370,000 1,975,000 - 1,975,000 - - 1,975,000 480,000 11,785,000 3,990,000 7,795,000 0 2,890,000 4,905,000 1,015,000 4,260,000 2,915,000 1,345,000 - 1,345,000 - - 294,525 30,525 264,000 - 30,525 233,475 31,350 $41,490,775 $13,579,525 $27,600,250 $311,000 $8,058,525 $19,852,725 $3,130,600 2017 165 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2017 Year of Certificates of Certificates of Certificates of Levy/Indebtedness Indebtedness Indebtedness Collection 2015A 2015B 2016A 2017/2018 $70,258 $214,090 $167,097 2018/2019 - 213,119 167,559 2019/2020 - 214,216 - 2020/2021 - - - 2021/2022 - - - 2022/2023 - - - 2023/2024 - - - 2024/2025 - - - 2025/2026 - - - 2026/2027 - - - 2027/2028 - - - 2028/2029 - - - 2029/2030 - - - 2030/2031 - - - 2031/2032 - - - 2032/2033 - - - 2033/2034 - - - 2034/2035 - - - $70,258 $641,425 $334,656 166 Exhibit 2 G.O. G.O. EDA Lease Tax Abatement Certificates of Refunding G.O.Revenue Refunding Indebtedness Bonds Bonds Bonds Bonds 2017A 2012A 2015A 2015B 2016C Total $113,087 $176,390 $274,378 $319,397 $276,176 $1,610,873 111,395 180,012 270,178 315,722 289,097 1,547,082 111,353 178,080 271,228 317,297 301,570 1,393,744 - 175,896 266,923 316,877 313,567 1,073,263 - 178,794 267,868 316,299 325,054 1,088,015 - 176,109 273,958 320,814 - 770,881 - - 274,588 319,764 - 594,352 - - 269,863 318,557 - 588,420 - - 269,798 317,192 - 586,990 - - 222,364 315,669 - 538,033 - - 222,626 319,239 - 541,865 - - 222,758 317,244 - 540,002 - - 221,708 320,342 - 542,050 - - - 317,231 - 317,231 - - - 319,200 - 319,200 - - - 318,780 - 318,780 - - - 317,940 - 317,940 - - - 316,680 - 316,680 $335,835 $1,065,281 $3,328,238 $5,724,244 $1,505,464 $13,005,401 167 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY December 31, 2017 Certificates of Certificates of Certificates of Indebtedness Indebtedness Indebtedness 2015A 2015B 2016A Bonds payable $66,250 $593,000 $314,000 Future interest payable 663 17,880 4,720 $66,913 $610,880 $318,720 Payments to maturity: 2018 $66,913 $203,895 $159,140 2019 - 202,970 159,580 2020 - 204,015 - 2021 - - - 2022 - - - 2023 - - - 2024 - - - 2025 - - - 2026 - - - 2027 - - - 2028 - - - 2029 - - - 2030 - - - 2031 - - - 2032 - - - 2033 - - - 2034 - - - 2035 - - - 2036 - - - $66,913 $610,880 $318,720 168 Exhibit 3 Page 1 of 2 G.O. CIP G.O. Certificates of Refunding G.O. TIF Refunding G.O. Indebtedness Bonds Bonds Bonds Bonds 2017A 2006E 2007A 2012A 2015A $311,000 $425,000 $1,625,000 $1,270,000 $2,905,000 8,842 8,500 249,899 58,092 492,355 $319,842 $433,500 $1,874,899 $1,328,092 $3,397,355 $107,702 $433,500 $252,126 $244,660 $258,262 106,090 - 254,326 242,590 259,312 106,050 - 261,026 170,520 255,312 - - 267,126 168,560 256,263 - - 272,504 166,400 252,163 - - 282,016 169,001 253,013 - - 285,775 166,361 258,712 - - - - 259,263 - - - - 254,481 - - - - 254,362 - - - - 209,400 - - - - 209,587 - - - - 209,150 - - - - 208,075 - - - - - - - - - - - - - - - - - - - - - - - - - $319,842 $433,500 $1,874,899 $1,328,092 $3,397,355 169 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY December 31, 2017 G.O. Tax EDA Lease G.O. Utility Abatement Revenue Revenue Refunding Bonds Bonds Bonds 2015B 2016A 2016C Bonds payable $4,185,000 $1,420,000 $1,600,000 Future interest payable 1,502,956 145,300 68,913 $5,687,956 $1,565,300 $1,668,913 Payments to maturity: 2018 $300,888 $157,100 $244,150 2019 302,437 159,450 261,678 2020 298,937 161,700 273,770 2021 299,488 158,900 285,422 2022 299,012 156,100 296,605 2023 298,388 158,250 307,288 2024 302,538 155,350 - 2025 301,462 152,450 - 2026 300,237 154,500 - 2027 298,863 151,500 - 2028 297,338 - - 2029 300,587 - - 2030 298,613 - - 2031 301,106 - - 2032 298,062 - - 2033 298,800 - - 2034 298,200 - - 2035 297,200 - - 2036 295,800 - - $5,687,956 $1,565,300 $1,668,913 170 Exhibit 3 Page 2 of 2 G.O. G.O. Imp & G.O. G.O. Improvement Utility Revenue Improvement Improvement Refunding G.O. Capital Bonds Bonds Bonds Bonds Note 2010A 2013A 2014A 2016B 2016A Total $325,000 $435,000 $2,170,000 $1,975,000 $233,475 $19,852,725 14,925 59,160 124,502 53,048 19,041 2,828,796 $339,925 $494,160 $2,294,502 $2,028,048 $252,516 $22,681,521 $113,175 $74,460 $399,633 $501,575 $36,020 $3,553,199 110,025 72,900 406,158 506,780 36,217 3,080,513 116,725 71,100 401,788 505,868 36,399 2,863,210 - 69,000 406,390 513,825 35,739 2,460,713 - 71,500 162,055 - 35,904 1,712,243 - 68,900 159,280 - 36,053 1,732,189 - 66,300 161,151 - 36,184 1,432,371 - - 162,645 - - 875,820 - - 35,402 - - 744,620 - - - - - 704,725 - - - - - 506,738 - - - - - 510,174 - - - - - 507,763 - - - - - 509,181 - - - - - 298,062 - - - - - 298,800 - - - - - 298,200 - - - - - 297,200 - - - - - 295,800 $339,925 $494,160 $2,294,502 $2,028,048 $252,516 $22,681,521 171 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE Exhibit 4 December 31, 2017 Amount General Liability: Bodily Injury/Property Damage $2,000,000 Personal Injury/Police Professional Liability 2,000,000 Medical Expense Occurrence Limit 2,500 Medical Expense Aggregate 10,000 Property Damage ($1,000 Deductible) Property: Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers)37,927,418 Faithful Performance Blanket Bond 500,000 Storage Tank Liability 250,000 Rented/Leased Equipment ($1,000 Deductible)500,000 Public Official and Employee Liability ($1,000 Deductible each occurrence)1,500,000 Automotive: Bodily Injury and Property Damage 2,000,000 Comprehensive and Collision Actual Cash Value Uninsured Motorists 200,000 Worker's Compensation Statutory Employer Liability 1,500,000 Umbrella Liability 1,000,000 Crime - Theft Disappearance and Destruction ($1,000 Deductible)250,000 Coverage 172 CITY OF LINO LAKES, MINNESOTA TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit 5 Tax Capacity Tax Capacity Values Values 2016/2017 2015/2016 Taxable valuations: Total $19,643,805 $18,440,817 Fiscal disparities: Distribution 2,792,112 2,755,743 Contribution (1,168,180) (1,115,822) Less: Captured Tax Increment Value (293,970) (261,525) $20,973,767 $19,819,213 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes Levied: Revenue $7,360,431 35.105 $7,018,572 35.025 Bond and Interest 2,131,424 10.035 2,039,856 10.994 Totals $9,491,855 45.140 $9,058,428 46.019 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution. 173 - This page intentionally left blank - 174 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com MINNESOTA LEGAL COMPLIANCE REPORT To the Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota We have audited, in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements and have issued our report thereon dated May 29, 2018. The Minnesota Legal Compliance Audit Guide for Cities, promulgated by the State Auditor pursuant to Minn. Stat. § 6.65, contains seven categories of compliance to be tested: contracting and bidding, deposits and investments, conflicts of interest, public indebtedness, claims and disbursements, miscellaneous provisions, and tax increment financing. Our audit considered all of the listed categories. In connection with our audit, nothing came to our attention that caused us to believe that City of Lino Lakes, Minnesota failed to comply with the provisions of the Minnesota Legal Compliance Audit Guide for Cities. However, our audit was not directed primarily toward obtaining knowledge of such noncompliance. Accordingly, had we performed additional procedures, other matters may have come to our attention regarding the City of Lino Lakes, Minnesota’s noncompliance with the above referenced provisions. The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing, and not to provide an opinion on compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota May 29, 2018 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 www.redpathcpas.com INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota as of and for the year ended December 31, 2017, and the related notes to the financial statements, which collectively comprise the City of Lino Lakes, Minnesota’s basic financial statements and have issued our report thereon dated May 29, 2018. 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) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Lino Lakes, 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 the attention of those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Lino Lakes, Minnesota’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Lino Lakes, Minnesota’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. REDPATH AND COMPANY, LTD. St. Paul, Minnesota May 29, 2018 4810 White Bear Parkway, St. Paul, MN, 55110 651.426.7000 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, 2017. 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 of our audit. We have communicated such information in our letter to you dated April 16, 2018. Professional standards also require that we communicate to you the following information related to our audit. 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. As described in Notes 10 and 20 to the financial statements, the City implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions for the year ended December 31, 2017. As a result, the liability reported for OPEB on the City’s full-accrual financial statements significantly increased. Beginning net position of governmental activities has also been restated to account for this change. 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. We believe the most sensitive estimate affecting the City’s financial statements was the discount rate used to measure the net pension liability. This rate is based on actuarial studies. We evaluated the key factors and assumptions used to develop this estimate in determining that it is 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 8 – Defined Benefit Pension Plans – PERA and Note 20 – Change in Accounting Principle. The financial statement disclosures are neutral, consistent and clear. Difficulties Encountered in Performing the Audit We encountered no difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements that have an effect on our opinion on the financial statements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated May 29, 2018. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. City of Lino Lakes, Minnesota Communication With Those Charged With Governance Page 3 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Receivables related to the Legacy at Woods Edge Development At December 31, 2017, the balance of receivables related to the Legacy at Woods Edge Development was $6,646,176. The receivables are presented in the financial statements as special assessments receivable ($2,994,379) and interfund loans receivable ($3,651,797). 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. We were not engaged to report on the introductory section, the statistical section or the other information which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. City of Lino Lakes, Minnesota Communication With Those Charged With Governance Page 4 Restrictions on Use This information is intended solely for the use of the City Council and management of the City of Lino Lakes, Minnesota and is not intended to be, and should not be, used by anyone other than these specified parties. REDPATH AND COMPANY, LTD. St. Paul, Minnesota May 29, 2018 City of Lino Lakes, Minnesota 2017 Audit Review June 11, 2018 Andy Hering, CPA Phone: 651-407-5877 Email: ahering@redpathcpas.com 1 Excellence in Financial Reporting 2 Follow Up On 2016 Findings Internal Controls •Financial Statement Corrections finding which was triggered by an adjustment to the allocation of the net pension liability •Item Corrected Minnesota Legal Compliance •The City held two fixed income mutual funds which did not appear to be allowable investments under Statute 118A.04 •Item Corrected by selling the mutual funds on 5/24/17 3 Audit Process State statutes require an annual audit of the City’s financial records Engagement letter signed August 30, 2017 Preliminary audit procedures performed December, 2017 Fieldwork performed last week of April, completed May 2 Audit “exit” meeting with Finance Director May 22 Audit results discussed at Council workshop on June 4 Formal presentation of results to Council on June 11 4 Reports Issued by Auditor Opinion on the Fair Presentation of the Financial Statements Report on Internal Controls Report on Minnesota Legal Compliance Communication to Those Charged with Governance 5 Opinion on Financial Statements What did we do? •Audited the financial statements, which are the responsibility of management. How did we do it? •Audit Standards –GAAS (AICPA) –GAGAS (GAO) •Plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. What is the result? •An unmodified opinion was issued on the 2017 financial statements. 6 Report on Internal Controls What did we do? •We gained an understanding of internal controls in place and their effectiveness in order to design our audit procedures for expressing an opinion on the financial statements. How did we do it? •Obtain understanding of controls on each major class of transaction and account balance. •Select a sample of transactions and perform detailed tests to determine adherence to controls in place and effectiveness. What is the result? •No internal control findings. 7 Report on Minnesota Legal Compliance What did we do? •Followed the audit guide published by the Office of the State Auditor. The guide consists of seven sections: –Depositories of public funds and investments –Conflicts of interest –Public indebtedness –Contracting bid laws –Claims and disbursements –Tax increment –Miscellaneous provisions How did we do it? •Select sample of transactions to test for compliance with statutory provisions. What is the result? •No legal compliance findings. 8 Communication to Those Charged with Governance Accounting policies used and/or changed •No significant accounting policies were changed during 2017 •One new accounting standard was implemented during 2017 –GASB 75 Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions The liability for such benefits is now calculated differently Implementing the standard resulted in a restatement to beginning equity in the amount of $692,000 Accounting estimates in the financial statements. •The discount rate used to measure the net pension liability ($6,113,000) No difficulties encountered in performing the audit. No disagreements with management. Other Matters •Legacy at Woods Edge receivables •Property tax collection rate –99.5% for 2017. 9 CITY COUNCIL AGENDA ITEM 3A STAFF ORIGINATOR: Jeff Karlson, City Administrator MEETING DATE: June 11, 2018 TOPIC: Resolution of Support for LMC Board Nomination VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to consider a resolution of support for Councilmember Stoesz’s nomination to the League of Minnesota Cities Board of Directors. BACKGROUND Councilmember Stoesz is submitting an application to serve on the League of Minnesota Board of Directors. As part of the board application process, the City Council is requested to adopt the attached resolution of support for Councilmember Stoesz’s appointment. RECOMMENDATION Adopt Resolution No. 18-71, supporting Councilmember Stoesz’s appointment to the LMC Board of Directors. ATTACHMENTS Resolution No. 18-71 CITY OF LINO LAKES RESOLUTION NO. 18-71 SUPPORT FOR LEAGUE OF MINNESOTA CITIES BOARD NOMINATION WHEREAS, Dale Stoesz has served as at-large Councilmember for the City of Lino Lakes for years 2012 – 2015 and is currently serving a four-year term through the year 2021; and WHEREAS, Councilmember Stoesz served as a member of the Lino Lakes Planning Commission in years 2016 – 2017; and WHEREAS, Councilmember Stoesz has served in leadership roles for the City, including as Acting Mayor and President of the Lino Lakes Economic Development Authority; and WHEREAS, during his time in office, Councilmember Stoesz has served the Lino Lakes’ and regional community as an active member of several groups, including the North Metro Telecommunications Committee and Joint Law Enforcement Council; and WHEREAS, Councilmember Stoesz has provided extraordinary government service by sharing his professional expertise in the area of technology; and WHEREAS, Councilmember Stoesz is respected, both locally and regionally, for his character, integrity, knowledge, unending drive to improve city services, and his commitment to public service; and WHEREAS, Councilmember Stoesz has submitted his application to serve on the League of Minnesota Cities Board of Directors; and WHEREAS, the Lino Lakes City Council is confident that Councilmember Stoesz will fairly and thoughtfully represent the interests of cities throughout Minnesota and will be an active, dedicated and participatory member of the board. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lino Lakes that the City Council hereby supports the nomination and appointment of Councilmember Dale Stoesz to serve on the Board of Directors of the League of Minnesota Cities. Adopted by the Council of the City of Lino Lakes this 11th day of June 2018. The motion for the adoption of the foregoing resolution was introduced by Councilmember _______________and was duly seconded by Councilmember ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk CITY COUNCIL AGENDA ITEM 3B STAFF ORIGINATOR: Karissa Bartholomew, Human Resources Manager MEETING DATE: June 11, 2018 TOPIC: Appointment of Paid On-Call Fire Lieutenant VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve the appointment of Mr. Craig Menne for the Paid On-Call Fire Lieutenant position at Fire Station 2. BACKGROUND Previous Fire Lieutenant, Mark Hokkanen, was promoted to one of our District Fire Chief positions, creating a vacancy. At this time, staff has completed an internal recruitment process, provided a conditional offer, and is recommending the approval of Craig Menne for the Fire Lieutenant position. Mr. Menne has been a member of the Lino Lakes’ Public Safety Fire team for over a year serving as a Firefighter/ EMT, and has over fourteen years of experience. The hourly rate of pay would remain the same for Menne. However, he would now receive a monthly stipend of $225 as a Lieutenant. With the Council’s approval, Menne would start in the position of Fire Lieutenant on June 15, 2018. RECOMMENDATION Approve the appointment of Craig Menne for the Fire Lieutenant position at Fire Station 2. CITY COUNCIL AGENDA ITEM 3C STAFF ORIGINATOR: Karissa Bartholomew, Human Resources Manager MEETING DATE: June 11, 2018 TOPIC: Appointment of Police Officer VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to approve the appointment of Mr. Garrett Ellertson for a Police Officer position. BACKGROUND There are currently two Police Officer vacancies within the Public Safety Department. At this time, staff has completed one of the recruitment processes, provided a conditional offer, and is recommending the approval of Garrett Ellertson for a Police Officer position. Mr. Ellerston recently graduated from Alexandria Technical College, with an Associates degree in Law Enforcement, and meets all POST mandated requirements to be a Police Officer in the State. While in school, Ellertson was an active member of the Law Enforcement Club and he currently volunteers for Anoka County as a Special Deputy Reserve. The hourly rate of pay would be $25.62, which is step one of the union wage schedule. The Police Officer wage schedule has four steps. With the Council’s approval, Ellertson would start in the position of Police Officer on June 12, 2018. RECOMMENDATION Approve the appointment of Garrett Ellertson for the Police Officer position. 1 CITY COUNCIL AGENDA ITEM 6A STAFF ORIGINATOR: Diane Hankee PE, City Engineer MEETING DATE: June 11, 2018 TOPIC: Consider Resolution 18-69, Approving Grading and Trunk Utility Agreement, Watermark VOTE REQUIRED: 3/5 INTRODUCTION Staff is requesting Council consideration to approve the Grading and Trunk Utility Agreement for the Watermark development. BACKGROUND The Watermark PUD Development Stage Plan/Preliminary Plat was approved by Council on June 13, 2016. The developer has submitted for a Grading and Trunk Utility Agreement for the first phase of grading for the Watermark development. Staff has reviewed and approved the Grading and Trunk Utility construction plans. A Grading and Trunk Utility Agreement was prepared including the fees and securities to cover City review costs and ensure completion of the public and private improvements in accordance with the approved plans. The Agreement includes a special provision that if grades need to change due to changes in the master plan or final plat, it will be the sole responsibility of the Developer to re-grade the site at its own cost. The Watermark First Addition Final Plat has been submitted to the City and it is anticipated that it will be presented to Council in August of 2018. RECOMMENDATION Staff is recommending approval of Resolution No. 18-69 for the Watermark Grading and Trunk Utility Agreement. ATTACHMENTS 1. Resolution 2. Grading and Trunk Utility Agreement 3. Grading and Trunk Utility Plan CITY OF LINO LAKES RESOLUTION NO. 18-69 RESOLUTION APPROVING THE GRADING AND TRUNK UTILITY AGREEMENT FOR WATERMARK WHEREAS, the City Council approved the Development Stage Plan/Preliminary Plat for the Watermark PUD on June 13, 2016, and WHEREAS, the City has reviewed the grading and trunk utility construction plans and found it to be consistent with the comprehensive plan, zoning and subdivision ordinance. NOW, THEREFORE BE IT RESOLVED that The City Council of the City of Lino Lakes hereby approves the Grading and Trunk Utility Agreement between U.S. Homes Corp. d/b/a Lennar and the City of Lino Lakes for the Watermark PUD and authorizes the Mayor and City Clerk to execute such agreement on behalf of the City. Adopted by the Lino Lakes City Council this 11th day of June, 2018. The motion for the adoption of the foregoing resolution was duly seconded by Council Member _________________and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ___________________________ Jeff Reinert, Mayor ATTEST: ____________________________ Julianne Bartell, City Clerk GRADING AND TRUNK UTILITY AGREEMENT Watermark THIS AGREEMENT is made this _____ day of ____________, 2018, by and between the City of Lino Lakes, a Minnesota municipal corporation, and U.S. Homes Corp. d/b/a Lennar (“Developer”). 1. Subdivision. Developer received preliminary plat approval from the City by Resolution No. 16-51 for a plat known as Watermark (“Subdivision”). 2. Legal Description of Property. The Legal Description is attached hereto as Exhibit A. 3. Developer Plans. a. The subject property shall be graded and trunk sanitary sewer, water, and storm sewer utilities installed in accordance with the following Developer Plans, original copies of which are on file with the City Engineer. The Developer Plans may be prepared and revised after entering into this Agreement but must be approved by the City before commencement of any work. If the plans vary from the written terms of this Agreement, this Agreement shall control. b. The Developer Plans as of the date of this Agreement are Watermark Grading Development and Erosion Control Plan (Phase 1), and Trunk Utility Exhibit (Grading Agreement) prepared by Carlson McCain, dated May 31, 2018. 4. Permits. The Developer shall be responsible for securing site grading and development approvals and permits from appropriate Federal, State, Regional and Local jurisdictions prior to the commencement of site grading and trunk utility improvements. 5. Developer Improvements. The Developer shall secure a contractor to install these improvements, hereinafter referred to as the “Developer Improvements ,” which contractor shall be approved by the City in its absolute discretion. The cost of Developer Improvements is as shown on Exhibit B attached hereto. All Developer Improvements shall require City inspection and approval and, where appropriate, the approval of any other governmental agency having jurisdiction. The Developer shall construct and install at the Developer's expense the following improvements according to the following terms and conditions: a. No grading shall commence until all requirements of the Rice Creek Watershed District (RCWD) have been satisfied. b. All site grading shall be conducted in accordance with the grading plan as approved by the City and in accordance with NPDES and RCWD requirements. Watermark Grading and Trunk Utility Agreement June 11, 2018 page 2 The Developer shall perform the work in accordance with a Storm Water Pollution Prevention Plan (SWPPP) pursuant to Minnesota Pollution Control Agency (MPCA) requirements. c. The Developer shall grade the site to within 0.2 foot of the grades shown on the approved grading plan. No deviations will be allowed unless a revised plan is submitted and approved by the City and all other regulatory agencies. The Developer’s engineer shall certify in writing, with an as-built survey, that all grading complies with the approved grading plan. d. The surface water drainage ways shall be constructed and or graded. e. The Developer shall be responsible for ascertaining that site geotechnical and groundwater conditions are adequate and conforming with the grading and site improvement as proposed. f. The Developer shall maintain a clean site including the removal of sediment that may track offsite within public rights-of-way resulting from construction by the Developer, within five (5) days after notification by the City. 6. Time of Performance. The Developer shall install all required improvements enumerated in Paragraph 6 by November 30, 2018. The Developer may request a reasonable extension of time from the City. If the extension is granted, it shall be conditioned upon updating the security posted by the Developer to reflect cost increases and the extended completion date. 7. City Improvements. The Developer shall install the following public improvements at its sole cost. In the event these improvements need to be modified due to changes in the approved plans, Developer shall do so at its own expense. Developer expressly acknowledges that installing these utilities prior to receiving full project approvals is done at the Developer’s risk. Credit for installation of trunk utilities, as provided by City policy, shall not be provided to Developer until the final plat for the initial phase of th e Subdivision is approved by the City. a. Storm Water Trunk Line. Developer shall install a 42 to 60 inch diameter Reinforced Concrete Pipe under the berm on the eastern edge of the Subdivision pursuant to the approved Trunk Utility Exhibit prepared by Carlson McCain, dated May 31, 2018. b. Sanitary Sewer Trunk Line. Developer shall install the Sanitary Sewer Trunk line under “Street A” and along 20th Avenue North (CSAH 54) approximately 600 feet north as provided in the Trunk Utility Exhibit prepared by Carlson McCain, dated May 31, 2018. The Developer’s engineer shall certify in writing with an as-built survey that the location and elevation comply with the approved utility plan. Watermark Grading and Trunk Utility Agreement June 11, 2018 page 3 c. Water Trunk Line. Developer shall install the Water Trunk Line under “Street A,” as provided in the approved Trunk Utility Exhibit prepared by Carlson McCain, dated May 31, 2018. The Developer’s engineer shall certify in writing with an as- built survey that the location and elevation comply with the approved plans. 8. Record Drawings. a. Upon project completion, Developer shall submit record drawings, in electronic format, of all public and private infrastructure improvements, including grading, sanitary sewer, watermain, storm sewer facilities, and roads, constructed by Developer. The files shall be drawn in Anoka County NAD 83 Coordinate system and provided in both AutoCAD .dwg and Adobe .pdf file formats. The plans shall include accurate locations, dimensions, elevations, grades, slopes and all other pertinent information concerning the complete work. b. The Developer shall submit certified compaction testing results for the site grading operations. c. A summary of the record plan attribute data for the storm sewer, watermain, and sanitary sewer structures and pipes shall be submitted in th e form of an Excel Spreadsheet as provided by the City Engineer. d. No securities will be fully released until all record drawings have been submitted and accepted by the City Engineer. 9. Faithful Performance of Construction Contracts and Security. a. The Developer will fully and faithfully comply with all terms and conditions of any and all contracts entered into by the Developer for the installation and construction of all Developer Improvements. Prior to work commencing by the Developer, the Developer will furnish to, and at all times thereafter maintain with the City, a cash deposit, certified check, or Irrevocable Letter of Credit, based on one hundred fifty (150%) percent of the total estimated cost of the City Improvements and 35% of the total estimated cost of the Developer's Improvements. b. Irrevocable Letter of Credit. If an Irrevocable Letter of Credit is utilized, it shall be for the exclusive use and benefit of the City of Lino Lakes and shall state that it is issued to guarantee and assure performance by the Developer of all the terms and conditions of this Development Agreement and construction of all required improvements referenced therein in accordance with the ordinances and specifications of the City. The letter shall be in a form, and from a bank, as approved by the City. The City reserves the right to draw, in whole or in part, on any portion of the Irrevocable Letter of Credit for the purpose of guaranteeing the terms and conditions of this agreement. The Irrevocable Letter of Credit shall be Watermark Grading and Trunk Utility Agreement June 11, 2018 page 4 automatically extended for additional periods of one year from present or future expiration dates. The Irrevocable Letter of Credit may not be terminated without the City’s written consent. c. Reduction of Security. The Developer may request reduction of the Letter of Credit or cash deposit based on prepayment or the value of the completed improvements at the time of the requested reduction. Requests for reductions will not be unreasonably withheld provided proof of payment is provided. 10. Warranty. The Developer warrants all utility work required to be performed by it against poor material and faulty workmanship for a period of two years after its completion and acceptance by the City. Grass and sod shall be warranted to be alive, of good quality and disease free for 12 months after planting. Prior to final acceptance of the Developer Improvements the City shall require a Performance Bond or Cash Escrow to cover the warranty provisions of this Agreement. The amount shall be determined by the City Engineer. 11. Dedication. The Developer shall dedicate to the City, at no cost to the City, all permanent or temporary easements covering the City Improvements. The easements for the trunk water and sewer lines shall be co-extensive with street right-of-way within which the utilities are located, as those rights-of-way are shown on the Preliminary Plat. The required easements shall be in writing, in recordable form, containing such terms and conditions as the City shall determine. 12. Ownership of Improvements. Upon completion and City acceptance of the City Improvements, those Improvements lying within the approved easements shall become City property without further notice or action. 13. Recording and Release. The Developer agrees that the terms of this Grading Agreement shall be a covenant on any and all property included in the Subdivision. The Developer agrees that the City shall have the right to record a copy of this Grading Agreement with the Anoka County Recorder to give notice to future purchasers and owners. This shall be recorded against the Subdivision described on Page 1. 14. Escrow for City’s Costs. a. The Developer agrees to establish a non-interest-bearing escrow account with the City in an amount determined by the City Administrator or his designee for the payment of all costs incurred by the City related to the development of the Subdivision including, but not limited to, the following (See Exhibit B for breakdown of costs): i. Administration - 3% of Developer Improvement Costs Watermark Grading and Trunk Utility Agreement June 11, 2018 page 5 ii. City Engineering b. If the above escrow amounts are insufficient, the Developer shall make such additional deposits as required by the City. The City shall have a right to reimburse itself from the Escrow upon notice to the Developer, with suitable documentation supporting the charges. 15. Special Provisions. i. At the time of this Grading Agreement the construction plans submitted for grading include surface water management features that are part of the master development plan / preliminary plat. The surface water management plan for the development is not currently approved. If the grades need to change due to overall plan changes or final plat changes it will be the sole responsibility of the Developer to re-grade the site at its own cost. ii. Grading of this site will impede Anoka County Ditch (ACD) 55. The ditch is planned to be re-routed along the east and south boarder of the site. This work is permitted by RCWD. The Developer shall have RCWD approval, and ACD 55 re-route construction completed prior to disconnection of the existing alignment of ACD 55. iii. The Comprehensive Surface Water Management Plan (CSMP) for the North East Drainage Area includes the grading area. The CSMP identifies a pipe system within the grading limits. The Developer shall install the section of storm sewer pipe under the berm identified in the CSMP. iv. Developer shall provide a temporary drainage and utility easement, in a form acceptable to the City, for Trunk Sanitary Sewer, Watermain and Storm Sewer. The temporary easement shall be in effect until a final plat is approved over said easement area. The easement shall be provided, and approved, prior to any work being started on the site. v. Developer shall obtain temporary easements, in a form acceptable to the City, from Mattamy Minneapolis, LLC, d/b/a Mattamy Homes, for all grading activity undertaken for Developer’s Phase I grading on Mattamy’s property. No grading activity on Mattamy’s property shall occur prior to approval of the easements by the City and execution by Mattamy and Developer. vi. If Developer constructs a temporary surface water drainage ditch on Mattamy’s property as part of the Phase I grading, consistent with the easement requirements set forth above, removal of said ditch shall be required as part of the development of the 3rd Addition. Developer is solely responsible for maintenance of all temporary surface water drainage systems and shall defend Watermark Grading and Trunk Utility Agreement June 11, 2018 page 6 and indemnify the City from any and all claims and damages arising out of the construction and maintenance of such systems. vii. The temporary easements referenced in subparagraph iv. shall have a duration no longer than 4 years. If the temporary easements expire prior to construction of the 3rd Addition storm water improvements, Developer shall acquire permanent easements as necessary (if Developer has not otherwise obtained fee title to the necessary property) and construct the 3rd Addition storm water improvements as approved by the City. In no event shall the temporary drainage ditch and other related drainage improvements built within the temporary easement area be utilized as a permanent storm water solution. The City and Developer expressly enter into this Agreement with the understanding that a full storm water system, as set forth in [plans] are necessary and that the City would not approve the Phase I grading and associated storm water improvements without a guarantee from Developer that the full storm water system will be constructed. 16. Hours of Construction Activity. All construction activity shall be limited to the hours as follows: Monday through Friday 7:00 a.m. to 7:00 p.m. Saturday 9:00 a.m. to 5:00 p.m. Sunday and Holidays No working hours allowed 17. Insurance. Developer or its general contractor shall take out and maintain until one year after the City accepted the Developer Improvements, public liability and property damage insurance covering personal injury, including death, and claims for property damage which may arise out of the Developer's or general contractor’s work, as the case may be, or the work of its subcontractors or by one directly or indirectly employed by any of them. Limits for bodily injury and death shall be not less than Five Hundred Thousand and no/100 ($500,000.00) Dollars for one person and One Million and no/100 ($1,000,000.00) Dollars for each occurrence; limits for property damage shall be not less than One Million and no/100 ($1,000,000.00) Dollars for each occurrence; or a combination single limit policy of Two Million and no/100 ($2,000,000.00) Dollars or more. The City, its employees, its agents and assigns shall be named as an additional insured on the policy, and the Developer or its general contractor shall file with the City a certificate evidencing coverage prior to the City signing the plat. The certificate shall provide that the City must be given ten days advance written notice of the cancellation of the insurance. The certificate may not contain any disclaimer for failure to give the required notice. 18. Developer’s Default. In the event of default by the Developer as to any of the work to be performed by it hereunder, the City may, at its option, perform the work and the Watermark Grading and Trunk Utility Agreement June 11, 2018 page 7 Developer shall promptly reimburse the City for any expense incurred by the City, provided the Developer is first given notice of the work in default, not less than 48 hours in advance. This Agreement is a license for the City to act, and it shall not be necessary for the City to seek a court order for permission to enter the land. When the City does any such work, the City may, in addition to its other remedies, levy the cost in whole or in part as a special assessment against the Subject Property. Developer waives its rights to notice of hearing and hearing on such assessments and its right to appeal such assessments pursuant to Minnesota Statutes, chapter 429. 19. General. a. Binding Effect The terms and provisions hereof shall be binding upon and inure to the benefit of the heirs, representatives, successors and assigns of th e parties hereto and shall be binding upon all future owners of all or any part of the Subdivision and shall be deemed covenants running with the land. b. Validity. If a portion, section, subsection, sentence, clause, paragraph or phrase in this agreement is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect or void any of the other provisions of the Development Agreement. c. Notices Whenever in this agreement it shall be required or permitted that notice or demand be given or served by either party to this agreement to or on the other party, such notice or demand shall be delivered personally or mailed by United States mail to the addresses below by certified mail (return receipt requested). Such notice or demand shall be deemed timely given when delivered personally or when deposited in the mail in accordance with the above. The addresses of the parties are as set forth until changed by notice given as above. Attn: Joe Jablonski U.S. Homes Corp. dba Lennar 16305 36th Avenue, Suite 600 Plymouth, MN 55447 Community Development Director City of Lino Lakes Watermark Grading and Trunk Utility Agreement June 11, 2018 page 8 600 Town Center Parkway Lino Lakes, MN 55014 Watermark Grading and Trunk Utility Agreement June 11, 2018 page 9 DEVELOPER CITY OF LINO LAKES By ______________________ By _________________________ Mayor Its ______________________ ATTEST By _________________________ City Clerk STATE OF MINNESOTA ) ) SS COUNTY OF ANOKA ) This instrument was acknowledged before me on ________ day of ____________, 2018, by Jeff Reinert as Mayor of the City of Lino Lakes on behalf of said City. _______________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ANOKA ) This instrument was acknowledged before me on ________ day of ____________, 2018 by Julianne Bartell as City Clerk of the City of Lino Lakes on behalf of said City. _______________________________ Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF __________ ) Watermark Grading and Trunk Utility Agreement June 11, 2018 page 10 On this _______ day of _______________, 2018, before me, a Notary Public within and for said County, personally appeared ____________, __________________ of ___________________. (Developer), who executed the foregoing instrument. ______________________________ Notary Public This instrument was drafted by: City of Lino Lakes 600 Town Center Parkway Lino Lakes, Minnesota 55014 Watermark Grading and Trunk Utility Agreement June 11, 2018 page 11 EXHIBIT A Legal Description of Property 13-31-22-34-0001 THAT PRT OF SE1/4 OF SW1/4 OF SEC 13 TWP 31 RGE 22 LYG WLY OF I-35E, SUBJ TO EASE OF REC 13-31-22-33-0001 THE SW1/4 OF SW1/4 OF SEC 13 TWP 31 RGE 22, EX RD, SUBJ TO EASE OF REC 13-31-22-31-0002 THE S1/2 OF NE1/4 OF SW1/4 OF SEC 13 TWP 31 RGE 22, SUBJ TO EASE OF REC 13-31-22-32-0001 THE S1/2 OF NW1/4 OF SW1/4 OF SEC 13 TWP 31 RGE 22, EX RD, SUBJ TO EASE OF REC 13-31-22-31-0001 THE N1/2 OF N1/2 OF SW1/4 OF SEC 13 TWP 31 RGE 22, EX RD, SUBJ TO EASE OF REC Watermark Grading and Trunk Utility Agreement June 11, 2018 page 12 EXHIBIT B Securities, Escrows & Fees 6/8/2018 EXHIBIT B Securities, Escrows & Fees PROJECT: Watermark NUMBER OF REU's:0 APPLICANT: U.S. Homes Corp. d/b/a Lennar NO. OF LOT FRONTAGES 0 AREA (LOT 1 BLOCK 1):0 IMPROVEMENTS COST DEVELOPER IMPROVEMENT COSTS (Private) SITE GRADING $1,928,990 EROSION CONTROL $0 LANDSCAPING $0 PARKING LOT $0 STORM SEWER CONST.$0 SANITARY SEWER CONST.$0 WATERMAIN CONST.$0 LIGHTING $0 Total $1,928,990 Letter of Credit Amount X 35%$675,147 DEVELOPER IMPROVEMENT COSTS (Public) SITE GRADING $0 EROSION CONTROL $0 LANDSCAPING $0 TRAIL $0 STREETS $0 STORM SEWER CONST.$22,400 SANITARY SEWER CONST.$244,410 WATERMAIN CONST.$162,050 ENGINEERING & SURVEYING $0 Total $428,860 Letter of Credit Amount X 150%$643,290 ESCROW for CITY'S COSTS ADMINISTRATION $57,870 ENGINEER PLAN REVIEW $2,500 ENGINEER CONSTRUCTION SERVICES $23,579 PROJECT FINAL DOCUMENTS & CITY ENGINEER $3,000 STREET LIGHT INSTALLATION $0 STREET & STORMWATER MAINTENANCE $0 PROPERTY TAXES $0 TRAFFIC AND SIGNING IMPROVEMENTS $0 BOULEVARD TREE PLANTING $0 Total $86,949 DEVELOPMENT FEES PARK DEDICATION $0 PARK DEDICATION CREDIT $0 Subtotal Park Dedication Fee $0 AUAR $0 SEAL COATING FEE $0 GIS MAPPING FEE $0 STREET LIGHTING OPERATION $0 Total $0 TRUNK SANITARY SEWER TRUNK CHARGE PER ACRE $0 AVAILABILITY CHARGE PER SAC UNIT $0 TRUNK SANITARY SEWER CREDIT $0 TRUNK WATERMAIN TRUNK CHARGE PER ACRE $0 AVAILABILITY CHARGE PER SAC UNIT $0 TRUNK WATERMAIN CREDIT $0 TOTAL TRUNK SEWER & WATER FEES $0 SURFACE WATER MANAGEMENT $0 SURFACE WATER MANAGEMENT CREDIT $0 TOTAL SURFACE WATER MANAGEMENT FEES $0 Total $0 Letter of Credit Amount X 35% $0 SUMMARY OF SECURITIES, ESCROW & FEES SECURITY: DEVELOPER IMP'MENT COSTS $1,318,437 ESCROW FOR CITY COSTS $86,949 DEVELOPMENT FEES $0 SECURITY: TRUNK FEES $0 x x x x x x x x x x x x x x x x x x x x >> >> xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx >> x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x >> >> >> >> >> >> >> ohe ohe ugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugugug ututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututututut >>>>>>> | f:\jobs\6721 - 6740\6731 - watermark\cad c3d\engineering\grading\6731_exhibit ph 1 interim grading.dwgSave Date:06/08/18 LENNAR 16305 - 36th Avenue N. Suite 600 Plymouth, MN 55446 of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com WATERMARK Lino Lakes, Minnesota environmental engineering surveying · · · Drawn: Designed: Date: 1 1 Revisions: 1. PHASE 1 INTERIM GRADING & EROSION CONTROL PLAN JJO 4/16/18 BJK x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x >> x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x >>>> >> | > > > | 1TRUNK UTILITY EXHIBIT (TO BE INSTALLED UNDER GRADING AGREEMENT) ofWATERMARK Lino Lakes, MN of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\6721 - 6740\6731 - watermark\cad c3d\engineering\final utility\1st addition\6731_1st addition exhibits trunk san_wm & trail.dwgSave Date:05/31/18 environmental engineering surveying · · ·1 Revisions: 1.LENNAR 16305 36th Avenue N. - Suite 600 Plymouth, MN 55446 1 CITY COUNCIL AGENDA ITEM 6B STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: June 11, 2018 TOPIC: Nature’s Refuge i. Consider First Reading of Ordinance No. 05-18 Rezoning Property from R-1, Single Family Residential to PUD, Planned Unit Development ii. Consider Resolution No. 18-70 Approving PUD Development Stage Plan/Preliminary Plat VOTE REQUIRED: 3/5 INTRODUCTION Preferred Builders, Inc. submitted revised plans for Nature’s Refuge, a conservation residential subdivision, located north of Main Street and west of Lino Lakes Elementary School. The original development proposed 60 single family lots and the revised plans propose 62 lots. The development contains 3 parcels totaling approximately 95 gross acres. The Land Use Applications are: Rezone property from R-1, Single Family Residential to PUD, Planned Unit Development PUD Development Stage Plan/Preliminary Plat This staff report is based on review the following plan sets and documents: April 11, 2018: Preliminary Plan Set prepared by Carlson McCain April 11, 2018: Stormwater Pollution Prevention Plan prepared by Carlson McCain April 11, 2018: Stormwater Management Plan prepared by Carlson McCain April 11, 2018: Tree Inventory Report, prepared by Carlson McCain May 17, 2018: Traffic Study prepared by Spack Consulting April 18, 2018: Revised WCA Wetland Permit Application, prepared by Kjolhaug Environmental Services Company At the June 4, 2018 Council Work Session, the City Council reviewed the development and expressed concerns about the proposed PUD flexibilities and the lots that did not meet a minimum 10,800 sf net area. Resolution No. 18-70 includes the following PUD flexibilities that will be reviewed and revised at the June 4, 2018 Council meeting: 2 1. Reduced minor collector road right-of-way width from 80 feet to 60 feet on Street A and Street C 2. Reduced front setback from 40 feet to 30 feet on Street A and Street C 3. Reduced road surface width from 32 feet to 28 feet (back to back) on cul de sac Street D and cul de sac Street E 4. Reduced local road right-of-way width from 60 feet to 50 feet on Street E 5. Reduced front setback from 30 feet to 25 feet for Lots 1-5, Block 1 along Street E 6. Reduced lot depth from 135 feet to 120-125 feet for Lots 1-4, Block 5 along Street C 7. Landscaping shall be allowed in the drainage and utility easements covering the 15 foot wide landscape buffer area in Outlot E and Outlot F. BACKGROUND History The concept of Nature’s Refuge was first presented to the City in 2006 as a conservation subdivision. The original site was 232 gross acres (approximately 100 acres upland and 132 acres wetlands/conservation easements) and 278 single family units were proposed. A mandatory Environmental Assessment Worksheet (EAW) was prepared because the 278 housing units exceeded the 250 housing unit Environmental Review Record (ERR) threshold. It was determined the project did not have the potential for significant environmental effects and the Council passed Resolution No. 07-06 making a Negative Declaration on the Need for an EIS. The original project did not materialize past the EAW process due to the decline in the housing market and no preliminary plat was ever submitted. The proposed project is smaller in scope and size with 62 single family units on 95 gross acres. Existing Site Conditions The 95 gross acre site is north of CSAH 14 (Main Street), west of CSAH 23 (Lake Street) and immediately west of Lino Lakes Elementary School. The southern and central parts of the site consist of annually-tilled cropland. The northeastern part of the site consists of a large wetland complex. The northwestern part of the site includes woodlands. Rare plants and animal species (Blanding’s Turtle) have been documented on site. Ground elevations on the site range from 912 feet above msl in the southern part of the site where an equipment building is located, down to 902 feet above msl in the open water parts of the large wetland in the northeastern part of the site. Anoka County Ditch 32 (ACD 32) flows across the site from east to west. The upland soils beneath the topsoil are poorly graded sand with silt, not hydric and are classified as hydrologic groups A and B/D that signifies the soils are generally suitable for storm water infiltration. Groundwater was encountered at depths ranging from 4 to 11 feet which could affect infiltration. A large lot (2+ acre) rural subdivision exists along Wood Duck Trail immediately to the west of the proposed development. Four (4) single family homes exist along the north side of CSAH 14 (Main Street). Highland Meadows West, an R-1 residential subdivision, was platted in 2001 south of Main Street. 3 Zoning Current and Proposed Zoning The property is currently zoned R-1, Single Family Residential and will be rezoned to PUD- Planned Unit Development to allow flexibility in right-of-way width, setbacks and lot dimensions to support the conservation subdivision. Street A and Street C to the north are considered minor collector roads per the 2030 Transportation Plan. Standard ordinance requirements are 80 foot wide right-of-way with 40 foot setbacks. The intent of these requirements is to allow for any future road widening on major collector roads and provide greater separation along higher capacity roads. A 60 foot wide right-of-way with 30 foot setbacks is proposed to minimize quality wetland and rare plant species impacts. These standards are consistent with local roads and R-1 single family residential standards. The PUD development process implements the goals and policies of the comprehensive plan by providing flexibility from the strict standards of the zoning ordinance to allow for this type conservation subdivision development. Current Zoning R-1, Single Family Residential Proposed Zoning PUD, Planned Unit Development Current Land Use Agricultural Future Land Use per CP Low Density Residential (1.6 to 3.9 units per acre) Utility Staging Area 1A=2008-2015 Density The site is guided for low density residential development which requires a density of 1.6 to 3.9 units per acres. The proposed net density is 1.69 units per acre which is consistent with the Comprehensive Plan’s guided land use and density. Wetlands and wetland buffers make up 56 acres (59%) of protected open space. The following chart implements Met Council’s formula for calculating net density. Gross Area (acres) 95.05 Wetlands & Water Bodies (Ditch) (42.33) Public Parks & Open Space 0.00 Arterial ROW (1.33) Other (Utility Transmission Easement) (0.40) Other (Wetland Buffer Area Only) (14.20) Net Area (acres) 36.79 4 # of Units 62 Gross Density (units/acre) 0.65 Net Density (units/acre) 1.69 It should be noted the plan sheets do not include the Wetland Buffer Area on Outlot A. The chart above correctly includes this area. The plan sheets shall be revised accordingly. Surrounding Zoning and Land Use Direction Zoning Current Land Use Future Land Use North R-X, Rural Executive & R-1, Single Family Agricultural Low Density Sewered Residential South R-1, Single Family Single Family Residential Low Density Sewered Residential East R-1, Single Family & PSP, Public Semi-Public Single Family Residential & School Low Density Sewered Residential & Civic/Institutional West R, Rural Rural Residential Urban Reserve Zoning Requirements The site will be rezoned to PUD, Planned Unit Development to allow flexibility in right-of-way width and setback from minor collector road. A minor reduction in lot depths may also be considered. The regulations and performance standards of the R-1, Single Family Residential zoning district will be in effect unless otherwise stated in Council resolution or Development Agreement. Lot Comparison R-1 vs. Nature’s Refuge Standard R-1 Requirements Proposed Nature’s Refuge Min. Lot Size1 10,800 sf Ave. 12,998 sf gross Min. Lot Width 80 ft Min. = 80 ft Min. Lot Depth 135 ft Min. = 135 ft Lots 1-4, Block 5=120 ft2 Building Setback (feet) -From Local Streets 30 ft 30 ft Lots 1-5, Block 1 = 25 ft2 -From Collector or Arterial Streets 40 ft 30 ft (Street A-E)2 40 ft (Main Street) -Rear 5 --Principal 30 ft 30 ft -Accessory 5 ft 5 ft -Side --Principal 10 ft 10 ft --Accessory 5 ft 5 ft Buffer Adjacent to Collector 15 foot Required Impervious Surface 40% Required 1Net area required is 10,800 sf of contiguous buildable land 2PUD flexibility to be reviewed by Council A 15 foot wide landscape buffer has been provided along CSAH 14 (Main Street) outside of the existing 100 foot wide private utility easement and is contained in an outlot that will owned and maintained by a homeowner’s association (HOA). A 6 foot high privacy fence is proposed along Lot 1, Block 7 that will provide screening along CSAH 14. Shrubs and plantings are required along the exterior side of the fence. Staff would support reducing Street E right-of-way width to 50 feet and front setback to 25 feet to preserve the existing tree line and buffer between the residential properties along Woodduck Trail. Staff would also support reducing the lot depths of Lots 1-4, Block 5 from 135 feet to 120-125 feet to preserve the natural wetland resource and rare plant species. This lot depth reduction is similar to the flexibility provided to the Foxborough development that has several 120 foot deep lots. Building Type and Construction At the time of building permit, each individual single family dwelling unit will be reviewed for compliance with Section 1007.043(2)(a) General Building Provisions and the R-1, Single Family Residential requirements regarding floor area, garage and design and construction standards. Subdivision Ordinance Conformity with the Comprehensive Plan and Zoning Code The preliminary plat is consistent with the comprehensive plan for a conservation subdivision as discussed below. The PUD provides flexibility from the strict standards of the zoning ordinance. Blocks and Lots The preliminary plat has 62 single family lots and 6 outlots. The outlots are for stormwater management facilities, wetland areas, open space and trail corridors. 6 Ownership of each outlot (City, HOA, developer etc.) shall be determined at the time of final plat approval. Outlot F has been extended along the south boundary of Lot 1, Block 7 and incorporates the existing private utility easement. Instead of a 15 foot wide landscape buffer, a 6 foot high privacy fence is proposed along Lot 1, Block 7 that will provide screening along CSAH 14. The original preliminary plat indicated a ghost plat of potentially 8 more single family lots north of ACD 32. Due to a redesign in the sanitary sewer, the area north of ACD 32 can now be serviced. The revised preliminary plat proposes 5 single family lots north of ACD 32. A new ghost plat now extend further north onto the adjacent parcel. Streets and Alleys CSAH 14 (Main Street) is a Principal Arterial road. Streets A and Street C (north of Street A) are identified as minor collector roads in the Transportation Plan and provide a north-south corridor. The 1999 Anoka County TH 242/CSAH 14 Access Management Plan identifies at- grade full access at Wood Duck Trail and CSAH 23 (Lake Drive) and restricted movements along the site’s corridor. The site plan has been reviewed by Anoka County Highway Department. They have identified the need for additional right-of-way (70-75 feet) and right and left turn lanes on CSAH 14 (Main Street). Twelve foot wide east bound and west bound turn lanes have been shown on the site plan. Detailed construction plans shall be required with the PUD Final Plan/Final Plat. The internal road system (Streets A thru E) has 60 foot wide right-of-ways and 32 foot wide (back to back) paved road surface. The intersection of Street A and CSAH 14 (Main Street) has an 80 foot wide right-of-way and 42 foot wide (back to back) paved road surface. Sidewalks are proposed along the east side of both Street A and Street C. Staff would support reducing Street E right-of-way width to 50 feet and Street E front setback to 25 feet to preserve the existing tree line and buffer between the residential properties along Woodduck Trail. Street C terminates in a temporary dead-end to the west, abutting 8024 Wood Duck Trail. This stub provides opportunity for future extension and residential development to Wood Duck Trail. This is consistent with the County Access Management Plan. The revised plans propose full street, utility and trail construction of Street C north of ACD 32 to the property line. Five lots are proposed along the west side of the street. Street B provides future access to Lino Lakes Elementary School to the east. In 2017, the school began a building remodeling and parking lot reconstruction project. An opportunity to eliminate the school’s west driveway and connect with Nature’s Refuge was identified as a safety benefit. The City and Anoka County are working with the school district to complete this connection. Ultimately, it is the school districts decision when to make this connection. 7 The Traffic Study was revised on June 4, 2018 by Spack Consulting in relation to the Nature’s Refuge development. The results of the study are explained further in this staff report. Easements Standard drainage and utility easements at least 10 feet wide are provided along all lot lines. Easements at least 20 feet wide are provided over utility pipes. Drainage and utility easements are required to be dedicated 10 feet above the high water level over stormwater drainage ponds and 10 feet outward from the delineated wetland boundary. This requirement is satisfied because easements will be dedicated over the entire outlots. Rear lot lines also have a minimum 10 foot wide easement. Conservation easements shall be required over Outlots A, B, C and D. A 100 foot wide private utility easement in favor of Great River Energy exists along the southern boundary of the development. Storm Water Management and Erosion and Sediment Control Per the revised Stormwater Management Plan prepared by Carlson McCain dated April 11, 2018, all of the site’s stormwater eventually flows to ACD 32 and to the west. Stormwater leaves the project boundary at two locations: via ACD 32 and a small portion of the property discharges to a ditch along Main Street. The total proposed post-development impervious surface area is approximately 10.4 acres. Soils on the site are classified as Hydrologic Soil Group A/D. Groundwater elevations ranged from 898 feet to 904 feet. The Stormwater Management Plan and plan sheets identify four (4) stormwater ponds, one (1) infiltration basin and Wetland C on site. Pond 100 and Pond 400 are required for stormwater management. Pond 200 and Pond 300 are material excavation ponds. The storm water ponds and trails are located near the wetlands and upland buffers. This strategic design is the basis of the City’s greenway system by creating a multi-functional greenway corridor intended to provide areas for stormwater management, upland buffers for wetland protection and natural resource conservation, and open space and trails for people. A maintenance access trail is shown around Pond 200. This access trail will be graded but will not require gravel or paved improvements. Ownership of each outlot (City, HOA, developer etc.) shall be determined by the time of final plat approval. The site will be mass graded in one (1) phase. Residential home development will occur over several years. Utilities 8 Public water, sanitary and storm sewer utilities will be installed within the development. Sanitary Sewer A 21” trunk sanitary sewer main located along CSAH 14 (Main Street) serves the site. An 8” and 10” sanitary sewer pipe serves the site internally. Future development to the north will potentially require a lift station. Sanitary sewer will also be stubbed to the west to accommodate future development. Watermain A 12” trunk watermain located along CSAH 14 (Main Street) serves the site. An 8” and 16” watermain serve the site internally and loops the system to CSAH 14 (Main Street). Watermain will be stubbed to the west and north property boundaries for future development. Public Land Dedication The City will require cash in lieu of land dedication. Per the City’s Park, Greenway & Trail System Plan, a neighborhood park is not programmed for this area. Lino Lakes Elementary School is immediately adjacent to the development and provides a joint-use opportunity between the city and school for shared use of facilities. Nature’s Refuge 62 lots x $3,000 = $186,000 The Park, Greenway & Trail System Plan does identify the need for a future city trail running north-south through the development along greenway corridor. The revised plans show an 8.5 feet wide paved trail along the greenway corridor and Street C consistent with the Trail System Plan. Due to concerns regarding potential impacts to the rare plant species behind Lots 1-4, Block 5, staff recommends the trail corridor be constructed on the west side of the development along Pond 100 and 200 utilizing the maintenance access path. Outlot C of the revised plans accommodates a 25 foot wide trail corridor as required in the original review comments. Staff and the applicant will further evaluate whether a 25 foot wide outlot or trail easement will be required. Plans have been revised to include a 10 foot wide trail along CSAH 14 (Main Street). The timing of this trail construction is to be determined based on available funds. The section of sidewalk extending along Street A from Main Street to Street B shall also be revised to be an 8.5 foot wide trail. Credit will be given for trail and boardwalk construction. The Park Board reviewed the plans on February 5, 2018. The Board recommends collecting park fees to potentially fund enhancements at Lino Lakes Elementary School. The trail connection could occur behind Lot 12, Block 3 and the trail could be eliminated behind Lots 13-16, Block 3. A paved trail along Main Street is required. 9 Tree Preservation The goal of tree preservation is to minimize unnecessary loss of habitat, biodiversity and forest resource and to replace removed trees in areas where tree cover is most critical. The revised Tree Inventory Report prepared by Carlson McCain dated April 11, 2018 identifies 1,151 significant trees on site and 928 will be saved. The Tree Preservation Plan identifies the basic use area and environmentally sensitive areas. There are 209 trees within these areas proposed for removal. This requires 140 replacement trees for mitigation. The developer and Environmental Coordinator shall determine the best location for these replacement trees. The Environmental Coordinator also reviewed the Tree Preservation Plan and made suggestions for removal of hazardous or unhealthy trees. There are 14 non-significant trees proposed for removal. No mitigation is required for these trees. Landscaping Boulevard trees are required at the rate of one (1) tree per lot frontage for single family. There are 62 single family lots and 105 boulevard trees are proposed which is compliant with the ordinance. Open area landscaping standards required 1 large tree and 3 large shrubs per 2,000 sf. Per the Landscape Plan, there is 449,471 sf of open area requiring 224 overstory trees and 673 large shrubs. Desirable existing trees may be used to fulfill open area landscape requirements. The Environmental Coordinator shall detail the locations where open area mitigation trees shall be planted. Special attention will be made to preserve and/or create a landscape buffer along the west side of the development abutting the residential properties along Wood Duck Trail. A 15 foot wide landscape buffer has been provided along CSAH 14 (Main Street) outside of the existing 100 foot wide private utility easement and is contained in an outlot that will owned and maintained by a homeowner’s association (HOA). A 6 foot high privacy fence is proposed along Lot 1, Block 7 that will provide screening along CSAH 14. Shrubs and plantings are required along the exterior side of the fence. Environmental Assessment Worksheet (EAW) As previously noted, in 2006 a mandatory Environmental Assessment Worksheet (EAW) was prepared for the original Nature’s Refuge concept because the proposed 278 housing units exceeded the 250 housing unit threshold. The EAW thoroughly analyzed potential impacts to wetlands, rare plant and animal species, floodplain, water quality, noise, traffic and archeology. It was determined the project did not have the potential for significant environmental effects and the Council passed Resolution No. 07-06 making a Negative Declaration on the Need for an EIS. The scope and size of the current proposed Nature’s Refuge (62 housing units on 95 gross acres) is much smaller than the original 2006 proposal (278 housing units on 232 gross acres). An EAW is not required for the current proposed Nature’s Refuge because the 62 housing units do not exceed the 250 housing unit threshold. 10 Traffic Study A revised Traffic Study was prepared by Spack Consulting on June 4, 2018 based on 60 single family lots. Although the revised plans indicate 62 new single family lots, the data of the traffic study is still relevant. The development is forecasted to generate approximately 565 new trips per day with 45 new trips in the a.m. peak hour and 60 trips in the p.m. peak hour. Traffic impacts are analyzed in terms of volume and capacity. Volume quantifies the number of trips and capacity quantifies the number of vehicles the road can accommodate. Traffic Volumes Roadway Location Existing AADT Volumes1 2030 Forecasted Volumes2 CSAH 14 (Main Street) West of 4th Avenue 8,400 21,900 CSAH 14 (Main Street) Near Site 8,400 20,500 CSAH 14 (Main Street) East of CSAH 23 (Lake Drive) 8,200 10,950 CSAH 23 (Lake Drive) South of CSAH 14 (Main St) 11,000 14,600 CSAH 14 (Main Street) North of CSAH 14 (Main St) 8,700 15,300 1Year 2015 AADT Volumes from MnDOT Traffic Mapping Application 2Includes traffic from Nature’s Refuge Existing traffic volumes near the site are 8,400 AADT (annual average daily traffic). Nature’s Refuge will generate approximately 565 new trips per day. These projected traffic volumes are included in the 2030 forecasts. The traffic study also projected future development to the north of Nature’s Refuge. A potential of 99 single family homes could generate 934 new trips per day and Street B connection to Lino Lakes Elementary School could generate 482 trips per day. The traffic study notes the City’s 2030 Transportation Plan identifies CSAH 14 as a future four-lane divided road by the year 2030. It should be noted there is no timeframe as to when these improvements will occur. Traffic Capacity A ratio of volume to capacity is used to analyze traffic congestion. Per the traffic study, a 2- lane road is considered congested when volumes reach 8,900 to 18,300 vehicles per day. The existing 2015 AADT of 8,400 trips plus the proposed Nature’s Refuge trips of 565 equals approximately 8,965 trips per day near the site. Future development to the north and the school connection would increase to 10,381 trips per day. 11 Level of Service Level of service is a term to measure how traffic operates in intersections. An “A” level of service represents best conditions and an “F” represents the worse. Roadway Location Current 2015 LOS 2021 Build LOS CSAH 14 (Main Street) West of 4th Avenue C C CSAH 14 (Main Street) Near Site C C CSAH 14 (Main Street) East of CSAH 23 (Lake Drive) C C CSAH 23 (Lake Drive) South of CSAH 14 (Main St) C C CSAH 14 (Main Street) North of CSAH 14 (Main St) C C Per Section 1001.013(2)(c), a proposed subdivision shall meet the following requirements: 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. Per the traffic study, the existing LOS is C and the 2021 Build LOS is C. The proposed development meets the subdivision ordinance requirements. The traffic study notes the added roadway traffic due to the proposed Nature’s Refuge develop will have an impact on the surrounding roadways but that impact is minor. To mitigate impacts and improve safety, right and left turn lanes on CSAH 14 (Main Street) are being constructed. A southbound right turn lane from Street A onto CSAH 14 (Main Street) is also being constructed. This is supported by Anoka County Highway Department. The City and County are also working with Lino Lake Elementary School to eliminate their westerly driveway and connect with Nature’s Refuge. Wetlands A WCA Notice of Decision for the wetland boundary delineation was approved by RCWD on June 16, 2016. Seven (7) wetlands were delineated on site totaling 41.91 acres. ACD 32 is not classified as a wetland. A revised WCA Permit Application for wetland sequencing and mitigation was prepared by KJolhaug Environmental Services on April 18, 2018. The Nature’s Refuge project will require 1.67 acres of permanent wetland impact, and 3.83 acres of temporary wetland impact. Proposed wetland replacement includes a minimum of 2.6483 acres of onsite vegetative restoration and establishment of native dominated upland buffer adjacent to restored wetland plus 0.0976 acres of credit from a wetland bank in BSA7. 12 The project area is located within in the RCWD Lino Lakes Comprehensive Wetland Protection and Management Plan (CWPMP) area. The intent of the CWPMP is to preserve/enhance high-priority wetlands/wetland corridors. Six (6) of the 7 wetlands are in the Wetland Management Corridor (WMC). The exception is Wetland 1. Wetland buffer easements covering 14.2 upland acres will protect the WMC. In summary, post-development wetland hydrological regime is equal to predevelopment conditions, wetland water quality is higher overall than pre-development conditions, and wildlife habitat structure improves overall post-development likely due to removal/conversion of cropland to permanent upland buffer. Per Sheet W1, Wetland Buffer Exhibit prepared by Carlson McCain revision dated 4/11/18: Wetland Summary Total Delineated Wetlands 41.9 acres Wetland Fill 1.6 acres Wetland Enhancement 3.8 acres Vegetation Restoration 4.4 acres WMC Buffer Area 8.3 acres This sheet shall be revised to also include the WMC Buffer Area on Outlot A. Conservation easements shall be required over Outlots A, B, C and D. Rare & Endangered Species Minnesota endangered and threatened species must be considered when submitting a wetland replacement plan. A rare plant survey identified portions of three populations of state- threatened plant species that would be impacted by the development. A Takings Permit Application has been submitted to the MNDNR for their review and approval. Staff would support reducing the lot depths of Lots 1-4, Block 5 to 120-125 feet to protect this area of rare plant species habitat. Federal endangered species of concern in the region include the northern long-eared bat (NLEB). Based on the tree species present onsite and the fact that there are no known NLEB hibernacula or roosting colonies in the project vicinity, negative effects to the NLEB or its habitat are not expected. Floodplain The 2015 DFIRM indicates Zone A floodplain on site, mainly over the easterly wetland complex and along ACD 32. Per RCWD modeling data, the east floodplain base flood elevation is 904.5 and the west floodplain elevation is 904.2. Per Sheet FP, Floodplain Exhibit, 242 cy of floodplain fill is required. Proposed floodplain mitigation is 48,252 cy. 13 The floodplain impacts on the east side of the development are related to the stormwater pond and trail construction. Trail and storm pond design shall be revised to avoid the need for any floodplain fill. A FEMA Conditional Letter of Map Revision (CLOMR) or Letter of Map Revision (LOMR) is not required because floodplain impacts do not encroach into any single family lots. Growth Management Policy Per the Comprehensive Plan (page 3-27), an annual average of 230 units per year over each 5 year phasing period not to exceed 345 units in any 1 year is allowed. At the end of the 5 year phasing period unallocated units will be averaged out over the next 5 years. Nature’s Refuge is proposed to be graded and developed in one (1) phase. Homeowner’s Association (HOA) A homeowner’s association shall be required to maintain landscape buffer areas, any common area/signage and possibly certain stormwater ponds (i.e. Pond 300). Details regarding ownership and maintenance will be finalized during the final plat process. Comprehensive Plan Resource Management System Plan The Resource Management System Plan provides the conservation design framework for the Comprehensive Plan and sustainable decisions regarding growth and development. It provides a unified system approach to natural resource management and natural resource based amenities. Goals of the Resource Management System Plan include: Parks, Trails, Open Space and Recreation o Goal #3: Develop, maintain, and connect the current and proposed trails in the City of Lino Lakes and Rice Creek Regional Park in a manner that preserves and sustains the natural environment. Natural Resources and Amenities o Goal #1: Identify, protect and preserve the desirable natural areas and ecological and aquatic resources of the community. o Goal #2: Initiate and continue vigorous collaborations and programs to address, restore, and preserve the water quality of the region’s lakes, wetlands and other aquatic assets. Land Use Policies o Goal #1: Ensure that well-planned, quality residential, commercial, industrial and institutional development to accommodate the city’s projected growth needs 14 occurs in a manner that also conserves and enhances the city’s natural resources and amenities. The Resource Management System Plan identifies the following needs in the area: Proposed designated bike route Trails Greenway system connectivity An 8.5 foot wide trail is provided along the wetland corridor and greenway system. A 10 foot wide trail corridor is provided along CSAH 14 (Main Street). Future trail extensions to the north between the storm water ponds and wetland corridor would connect and further enhance the greenway and park system. Nature’s Refuge addresses the goals of the Resource Management System by creating a residential conservation subdivision and multi-functional greenway corridor that integrates the stormwater management system, wetland management and open space areas and trails into one unified system. Land Use Plan Goal 1: Create a unified vision and future for the city, promote a well-planned community, prevent fragmented development, address the impacts of development and redevelopment on natural resources, aesthetics and view corridors, and provide balanced land use and connectivity that ensures the integration of both sides of the regional park. Policies established to obtain this goal include: 1. Provide clearly defined incentives to achieve significant and discernable public values not achievable under conventional development standards. These public values include, but are not limited to: a. Preserving open space, providing park dedication and trails, and/or providing stormwater management areas, in excess of minimum standards to implement the Resource Management System Plan, as amended, and Rice Creek Watershed District’s Lino Lakes Resource Management Plan, as amended b. Restoring/enhancing ecological systems c. Managing stormwater using natural filtration and other ecologically based approaches d. Providing life-cycle and affordable housing e. Diversifying the tax base to lessen the tax burden on residential properties f. Providing infrastructure that benefits community beyond the project site that would otherwise not be financially feasible 2. Identify and define incentives offered to developers for achieving specific public values not achievable under conventional development standards. These incentives may include, but are not limited to: a. Reduced street and right-of-way widths b. Trunk utility and stormwater management fee credits c. Staging plan flexibility 15 3. Encourage master planning to accomplish the objectives of the Comprehensive Plan including, but not limited to, implementing the Resource Management System Plan, as amended, implementing Rice Creek Watershed District’s Lino Lakes Resource Management Plan, as amended, providing life-cycle housing, and diversifying the city’s tax base. As previously discussed, the site is guided for low density residential development which requires a density of 1.6 to 3.9 units per acres. The proposed net density is 1.69 units per acre which is consistent with the Comprehensive Plan’s guided land use and density. Wetlands and wetland buffers make up 58 acres (60%) of protected open space. Nature’s Refuge meets the land use goals by creating a residential conservation subdivision that supports public values by integrating the stormwater conveyance systems, wetland restoration and open space areas and trails into a multi-functional greenway corridor. The development implements the Resource Management Plan, provides housing, promotes pedestrian connectivity and diversifies the city’s tax base. Housing Plan Goal 3: Ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural amenities. Policies include linking trails to parks, lakes and schools. Nature’s Refuge meets the goal of the housing plan. The development is compatible with the existing adjacent residential and institutional (elementary school) land uses. Trails and sidewalk link the development to the natural resource, school and CSAH 14 (Main Street). Economic Development Goal 1: Expand and diversify the city’s tax base by encouraging mixed-use and nodal development to lessen the tax burden on residential properties. Policies include developing walkable neighborhoods with commercial nodes and amenities for residents. Nature’s Refuge meets the goals of the economic development plan. It is less than ½ mile west of the intersection of CSAH 14 (Main Street) and CSAH 23 (Lake Drive) which has been identified as a mixed use and commercial node in the city. The development provides an internal sidewalk and trail system to CSAH 14 (Main Street). A proposed regional trail corridor along CSAH 14 (Main Street) has been identified that will provide a future link from the residential development to the commercial node. Transportation Plan Goal 1: Plan for and achieve required street improvements and connectivity throughout the City of Lino Lakes. Goal 2: Ensure that streets and roads are as safe as possible. Goal 6: Promote alternative transportation such as bicycling, walking, transit and rail. 16 Policies: 1. Work to physically connect neighborhoods with roads and pedestrian/bicycle links. 2. Encourage sidewalks and separated pathways along all arterial collector, and local streets in developing residential and commercial areas. Goal 7: Maintain and coordinate the transportation system with adjacent communities, Anoka County, Washington County, Metropolitan Council and Mn/DOT. Policies: 1. Use the functional classification system to define and plan existing and new roadways. 2. Develop and utilize access management guidelines in conjunction with Anoka County. 3. Continue to work with surrounding jurisdictions, state and federal agencies to ensure an integrated transportation system. Nature’s Refuge meets the goals of the 2030 Transportation Plan. The Plan identifies the need for a north/south minor collector road through this development. Street A and Street C are the minor collector roads that will eventually extend north to Pine Street upon future development. Sidewalks and trails throughout the Nature’s Refuge provide alternative modes of transportation. The 1999 Anoka County TH 242/CSAH 14 Access Management Plan identifies at-grade full access at Wood Duck Trail and CSAH 23 and restricted movements in between. Nature’s Refuge is consistent with the access management plan. Sanitary Sewer Plan Goals of the sanitary sewer plan are to ensure well-planned, quality residential development that conserves and enhances the city’s natural resources and to provide an affordable and safe sanitary sewer system. Nature’s Refuge meets the goals of the sanitary sewer plans. The site is located in Sanitary Sewer District 2 (Sub-district 2B) and is ultimately served by MCES Interceptor 83-61, a 24- inch gravity sewer located in North Road which is adequately sized for the development in the district. The site is located in Utility Staging area 1A=2008-2015. Water Supply Plan A goal of the water supply plan is to provide residents affordable potable water that is safe and of high quality for daily consumption and fire demand. Nature’s Refuge meets the goals of the water supply plan. The site is served by a 12” watermain located along CSAH 14 (Main Street). The water system has capacity to serve this residential development. 17 Planning Districts The site is located in Planning District 2 and is guided for low density residential development. A recommendation for District 2 is to implement the Main Street Access Management Study. Nature’s Refuge implements this plan. The site is located within the Marshan resource management unit (RMU) that identifies wetlands, the wetland preservation corridor and greenway system. Wetland buffers and conservation easements will protect the natural resources. PUD Final Stage Plan/Final Plat A land use application for PUD Final Plan/Final Plat shall be required. Findings of Fact The Findings of Fact for the Rezoning and PUD Development Stage Plan/Preliminary Plat are detailed in Ordinance No. 05-18 and Resolution No. 18-70, respectively. RECOMMENDATION The Planning & Zoning Board held a public hearing on February 14, 2018 and continued the hearing to May 9, 2018. Public comments included concerns regarding groundwater and wetland impacts, tree removal and additional traffic onto Main Street. The Planning & Zoning Board voted 6-0 in favor of the Rezoning and PUD Development Stage Plan/Preliminary Plat for Nature’s Refuge. At the June 4, 2018 Council Work Session, the City Council reviewed the development and expressed concerns regarding the proposed PUD flexibilities, especially those lots that did not meet a minimum 10,800 sf net area. Resolution No. 18-70 includes those PUD flexibilities but can be revised at the June 4, 2018 Council meeting at Council’s discretion. ATTACHMENTS 1. Aerial Map 2. City Engineer Letter dated June 6, 2018 3. Ordinance No. 05-18 4. Resolution No. 18-70 5. Preliminary Plan Set revision date April 11, 2018 prepared by Carlson McCain 0 1,000 2,000500 Feet MAIN STMAIN ST LAKE DR LAKE DR PINE ST NEPINE ST NE HENRY LNHENRY LN DIANE ST DIANE ST EVA ST EVA ST 81ST ST81ST ST EVERGREEN TRLEVERGREEN TRL DANUBE ST DANUBE ST HIGHLAND DRHIGHLAND DR BL A C K B I R D L N BL A C K B I R D L N WOODDUCK TRL WOODDUCK TRL ANDALL STANDALL ST EE LL BB EE SS TT BB LLUUEEBBIILLLL LLNN MAPLE STMAPLE ST ORANGE STORANGE ST OLIVE STOLIVE ST AAEENNOONN PPLL Aerial MapNature's Refuge µ Building a legacy – your legacy. 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763‐541‐4800 Fax: 763‐541‐1700 Equal Opportunity Employer wsbeng.com S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 20180606 Natures Refuge Preliminary Plat Review traffic and geo.docx Memorandum To: Katie Larsen, City Planner From: Diane Hankee PE, City Engineer Chuck Rickart PE Traffic Engineer Date: June 6, 2018 Re: Nature’s Refuge Preliminary Plat Review WSB Project No. 011406-000 We have reviewed the Preliminary Plat documents received May 17, 2018 for the Nature’s Refuge development including: Groundwater Letter prepared by Haugo GeoTechnical Services Revised Traffic Study prepared by Spack Consulting dated May 17, 2018 and June 4, 2018 The following are our review comments that should be responded to in writing by the applicant. Engineering General The Nature’s Refuge development includes 95 acres north of CSAH 14 (Main Street), west of CSAH 23 (Lake Street) and east of Wood Duck Trail. The revised project proposes 62 single family houses and associated infrastructure. This property was originally part of a larger development of which an Environmental Assessment Worksheet (EAW) was prepared. The evaluation concluded that the project did not have the potential for significant environmental effects. The EAW included a comprehensive analysis of the area which we incorporated as part of our review for Nature’s Refuge. The site has relatively flat topography, with elevations ranging from 904 to 914. Much of the site is below 905, which is the approximate elevation of the delineated wetlands on the site. The geotechnical conditions of the site indicate that there is one foot of topsoil overlaying glacier outwash including silty sand and poorly graded sand. Sandy lean clay was found 29 and 40 feet below grade. The groundwater elevation at the south end of the site is 904 and 898 at the north end of the site. Ms. Katie Larsen June 6, 2018 Page 2 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 1. Street C shall be extended to the north side of Anoka County Ditch (ACD) 10-22-32. This includes the extension of sanitary sewer and watermain and culvert crossing reconstruction/extension. The road bed shall be graded and restored for future extension and paving. Street C extended to the north extents of the property. 2. Sheet 13 (Preliminary Site and Utility Plan) shows an Outlot C in the same locations as previously identified Outlot B. Outlot lettering updated 3. Each plan sheet should include an accurate legend. Legend updated. 4. This project is assumed to be phased with Blocks 3, 4, & 5 being constructed as Phase 2. 5. Standard Detail Plates from the City of Lino Lakes General Specifications and Standard Detail Plates dated February 2018 should be used in the “Details” section of the plans. Contact Ed Youngquist at the City of Lino Lakes for PDF versions. Grading, Erosion and Sediment Control The Nature’s Refuge development proposes the mass grading of 62 new single-family lots. It includes the extension of streets and utilities northerly from Main Street (CSAH 14). A project SWPPP was submitted and reviewed. Comments: 1. The applicant shall submit the earthwork volume data for excavation and embankment. Earthwork balance is attached. 2. The applicant shall ensure that the proposed grading is not in conflict with the existing elevation south of Street B at the edge of the site. FES added to catch runoff in the created low area. 3. Label pre-drainage and post-drainage directional flow arrows. This is shown on the drainage figures in the SWMP. Drainage arrows need to be shown. 4. Show locations for stockpiles and BMP measures for stockpile management. Stockpile locations will be determined by the grading contractor. BMP measures are detailed in the SWPPP. 5. The applicant shall show a screening berm along Main Street (CSAH 14) and grades to accommodate a trail, see comments in the transportation section. A berm is not possible with the drainage swale in the Outlot D. A 15’ landscape easement has been added along B4 L15-17 and a screening fence along B7 L1. Stormwater Management The existing site is undeveloped and has Anoka County Ditch (ACD) 10-22-32 flowing through the site from east to west. The site also contains several wetlands. The Nature’s Refuge development proposes a storm sewer and ponding system. The system shall meet the City’s and Rice Creek Watershed District’s (RCWD) Stormwater Management requirements. The total proposed impervious surface is 7.8 acres. They are proposing that the impervious areas be managed through storm water ponds, infiltration basins and wetlands and discharging to ACD 10-22-32. Ms. Katie Larsen June 6, 2018 Page 3 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 Basin NWL HWL Pond 100 902.5 905.2 Pond 200 901.5 902.6 Pond 300 902.0 Confirm 902.5 Pond 400 901.8 902.7 Basin 10 N/A 907.3 Wetland C 902.0 903.1 Per the submitted modeling the rate control for the site does not increase. The majority of the discharge leaving the site is through ACD 10-22-32. Comments: 1. RCWD is the ditch authority for ACD 10-22-32 and is responsible for the maintenance, function and capacity of the ditch. The City of Lino Lakes would be responsible for Pond 200 maintenance and function. The ditch, and its associated rights, extend east and shall not be routed through the pond. The easement will extend around the north end of the pond to provide RCWD with the access needed. This has been discussed with the watershed. Applicant shall address water quality calculations, and confirm whether Pond 200 is necessary for water quality treatment for the impervious surface increase. If the pond is not necessary to meet water quality treatment, then similar to Pond 300, Pond 200 is recommended to be private and be maintained by the Home Owners Association. If Pond 200 is necessary for water quality treatment, the applicant shall work with the City as well as the RCWD Ditch Authority. Pond 200 should be 2 cells separating ACD 10-22-32 into one basin, and the City Pond into a second basin as needed for water quality. 2. Pond 300 is not considered a stormwater pond. It doesn’t meet the requirements for water quality treatment due to the depth. It was not included as part of the water quality calculations. It is recommended that this borrow area should be private and maintained by the Home Owners Association.. Comment Noted 3. The applicant needs to adjust the location of the outlet control structures such that City can access and maintain. Specific to Pond 200. Access is provided to outlet control structures. 3A. Applicant to confirm that RCWD Ditch Authority to maintain outlets and culverts within ACD 10-22-32 easement and submit information to the City. 4. The applicant shall include the 10-day snowmelt event in modeling and update the proposed 10-day snowmelt HWLs on the plans. 10-day snow melt added to the models and report. Applicant shall include the modeled 10-day snowmelt HWLs on the plans. 5. The applicant shall confirm the amount of new impervious. There are different numbers in Section 1.2 and Section 2.5 of the Stormwater Management Plan, Section 2.2 of the Stormwater Pollution Prevention Plan (SWPPP), and the HydroCAD modeling. New impervious area has been recalculated and confirmed. Ms. Katie Larsen June 6, 2018 Page 4 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 Addressed for Stormwater Management Plan and HydroCAD. Applicant shall update the SWPPP. 6. See Table C3 in RCWD Rule C: Stormwater Management Plans for maximum curve numbers for existing conditions and adjust modeling accordingly. See section 4b for adjustments to curve numbers for proposed conditions. Curve numbers changed to match RCWD rules 7. The applicant shall confirm that the names of wetlands match between the existing conditions map and the existing conditions HydroCAD model. Node IDs are changed 8. The applicant shall provide the wetland susceptibility class, bounce, and inundation periods for impacted wetlands. See Table C4 and section 8 in RCWD Rule C. None of the wetlands provide retention or significant bounce in existing or proposed conditions because there is not a well-defined storage or outlet component. The submitted HydroCAD model indicates that wetlands on the site have storage and outlets. Please provide wetland susceptibility class, bounce, and inundation periods for impacted wetlands. 9. The applicant shall refer to Table C5 in RCWD Rule C for soil infiltration rates. Comment Noted Applicant shall update infiltration rate in HydroCAD model for IB10 to be consistent with soil boring and Table C5. 10. The applicant shall update water quality standards to be consistent with the requirement to treat 1.1-inches of runoff for new or reconstructed impervious surface per section 6c of RCWD Rule C. See Table C1 in RCWD Rule C for the TP removal factor for stormwater ponds and apply as necessary. The applicant shall verify that the site is meeting water quality treatment standards. Meeting the standards is not feasible on this site due to the high water table. The applicant needs to meet water quality standards for the site. Please update Appendix C to account for the TP removal factor indicated for stormwater ponds (Table C1 in RCWD Rule C or Table 2 in Lino Lakes Code of Ordinances Chapter 1011). The applicant shall consider including a water quality discussion in Section 2 of the Stormwater Management Plan. 11. The applicant shall verify HWLs for ponds. In some instances, they differ between the HydroCAD modeling and the plans. HWLs confirmed. The applicant shall revise the HWLs on the plans to match HydroCAD modeling. 12. The applicant shall clarify the intent of the low area on Outlot D. If intended to be a stormwater pond, please include it in modeling. Node added 13. The applicant shall revise the ACD number it varies throughout the Stormwater Management Plan and SWPPP narratives. Comment Noted and ditch ID consistent in report Addressed in Stormwater Management Plan. Applicant shall update the SWPPP. 14. The applicant shall verify the lot lines on Lot 12 Block 4, Lot 4 Block 1, and Lot 5 Block 1. It appears the structures may encroach on the drainage and utility easements. Plan updated. The applicant shall verify the lot lines on Lot 24 Block 7. It appears the structure may encroach on the drainage and utility easement. 15. The applicant shall include the bottom elevation of the infiltration basin on the grading plans. Elevations added. Ms. Katie Larsen June 6, 2018 Page 5 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 Applicant shall verify the bottom elevation, as it differs between HydroCAD model, plans, and Appendix C. Verify the culvert outlet elevation; outlet should be above the exfiltration elevation. As a note: planting medium is not necessary below the bottom of the infiltration basin. 16. The applicant shall verify the retention volume calculation for Pond 400 in Appendix C as there appears to be an error. The volumes are correct. 17. If needed, the opportunity may exist to maximize infiltration at the infiltration basin by constructing the basin to minimize the separation between the bottom of the basin and the water table. The basin needs minimum 3 feet separation from the water table and cannot be lowered. 18. The applicant shall verify that the HWL of the Infiltration Basin is 2.0 feet below the low entry elevations of surrounding buildings. Separation requirement is met 19. The applicant shall display and label emergency overflows with spot elevations and drainage arrows at all ponds and sags, specifically at the intersection of Street A and Street C and at the cul-de-sac of Street C. EOF’s added. 20. The applicant shall confirm that there is a 10-ft. setback between the HWL of the infiltration basin and the drainage and utility easements. HWL is covered by easement. 21. The applicant shall verify that the top berm of stormwater ponds is 2 ft. above the HWL of the pond. Berm updated. 22. The applicant shall label the safety bench on the plans. It shall be at least 10-ft wide. The pond slope cannot be greater than a 3:1 slope. Comment noted. The applicant shall label the safety bench on the plans. 23. The storm sewer system and grading in the rear yards of Lot 1-3 Block 1 should be evaluated to eliminate the middle structure and provide one EOF. The CB between Lot 1 & 2 should be moved north onto Lot 2 so that it is not on the property line. This is not possible to maintain minimum slopes. 24. The applicant shall update the drainage area characteristics for Pond 100 in Appendix C. While the calculations appear to be correct, the applicant shall update all ponds in Appendix C to indicate that 1.1” of runoff is the required water quality volume for new impervious area. 25. The applicant shall confirm the elevations of the broad crested rectangular weir outlets of Ponds P200. 26. The applicant shall verify NWLs (Pond 300, Wetland C) and 100-year HWLs (Pond 400) in Table 1. Note that infiltration basins do not have NWLs. 27. It is highly recommended (MPCA Stormwater Manual) that pond liners be installed at wet ponds in A or B soils. 28. The applicant shall confirm that the starting elevations for the HydroCAD modeled storm pond storage start at the bottom of the pond (and not below). Specific to Ponds P200. 29. On the Anoka County ditch system, there shall be consideration for beaver guards at all surface water structures. Water Supply There is an existing 12 inch diameter trunk watermain located along CSAH 14 (Main Street). The Nature’s Refuge development is proposed to be served by extending 8-inch diameter DIP watermain from an existing 8-inch diameter DIP watermain stub where Street Ms. Katie Larsen June 6, 2018 Page 6 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 A meets Main Street (CSAH 14), and installing 1-inch diameter Type K copper services. The City’s Comprehensive Plan requires that a 16 inch diameter trunk main be extended north/south in this area. The proposed watermain extends west and north for future connection / looping. Comments: 1. The applicant shall loop the system along the west side of Lot 25 Block 4 from Street C to Main Street. Watermain loop added. 2. The applicant shall install 16 inch diameter trunk watermain from Main Street north through the development. Along west side of Lot 25 Block 4 and to the north extents of Street C. Trunk oversizing credits will apply. Watermain sizing updated. 3. Watermain shall be extended north along Street C under ACD 10-22-32. Watermain extended to the northern property line. Sanitary Sewer There is an existing 21 inch diameter trunk sanitary sewer located along CSAH 14 (Main Street). The Nature’s Refuge development is proposed to be served by extending 8-inch diameter PVC sanitary sewer throughout the development from an existing sanitary sewer manhole in Main Street (CSAH 14) just south of Outlot E, and installing 4-inch diameter Schedule 40 PVC services. The City’s Comprehensive Plan requires that the sanitary system serves the future lift station and forcemain of Sanitary Sewer Sub-District 2K, discharging to the northernmost proposed manhole in Street C. Comments: 1. The applicant shall increase the mainline sanitary sewer in Street C and D to 10 inch diameter at minimum grade 0.28%. Trunk oversizing credits will apply. Sanitary sewer sizing updated. 2. The existing sanitary sewer stub at Main St and Street A shall be properly abandoned and plugged at the Manhole. Note added to abandon. 3. The applicant shall add a note that sanitary services require the contractor to provide X, Y and Z GPS coordinates of wyes and service ends for future locating requirements. This will be noted on final construction plans. 4. The applicant shall add a note that sanitary sewer pipe be installed with a tracer wire. A tracer wire box shall be provided at the surface for the ends of the sanitary sewer service tracer wire to provide access to wire ends for future locating requirements. This will be noted on the final construction plans. 5. Sanitary Sewer shall be extended north along Street C under ACD 10-22-32. Sanitary sewer extended to the northern property line. 6. Sanitary Sewer shall be extended west along Street C from the most westerly manhole to the same extent as the watermain. Sanitary stub added. Ms. Katie Larsen June 6, 2018 Page 7 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 Transportation The Nature’s Refuge subdivision is proposed on the north side of Main Street (CSAH 14) between Lake Drive (CSAH 23) and 4th Avenue. Access will be from a new street connection (Street A) to Main Street (CSAH 14). The development will be set for future extensions to the west, north, and to Lino Lakes Elementary. To improve access control on Main Street, the City is working with School to remove their west access and connect to Nature’s Refuge. A Traffic Study evaluating the Nature’s Refuge development was submitted by Spack Consulting. The development includes 60 single family homes that are anticipated to generate approximately 565 new trips per day, 45 new trips in the a.m. peak hour and 60 trips in the p.m. peak hour. Comments: 1. The Study needs to provide an analysis of the existing LOS with and without the proposed development as outlined in the Section 1001.013(2)(c). See revised memo from Spack. The revised Traffic Study addressed a portion of this comment. The Study should also consider what the impacts are for an interim analysis a year after the development is completed as well as the no-build conditions without development for comparison. The May 17, 2018 revised Traffic Study addressed a portion of this comment: on page 5 for the planning level screening analysis by including the 2015 no-build analysis. However, an interim year was not considered to address when improvements with a two lane facility may be need prior to the 4 lane facility being constructed. In addition, the Intersection Analysis on page 7 and 8 did not include the 2015 no-build or interim year analysis. Following discussions with the developers engineer an updated revised Traffic Study dated June 4, 2018 was prepared to address the remaining portion of the comment. The Study now includes the analysis of the interim 2021 conditions with the proposed development with existing geometric conditions. 2. Projected traffic from any future phases of development (extension of Street B, Street C, and Lino Lakes Elementary) that would use Street A to access Main Street (CSAH 14) should be included in the analysis. See revised memo from Spack. 3. It is anticipated that Street A would require designated turn lanes at Main Street. The Study should evaluate the intersection of the new Site Access Street (Street A) and Main Street (CSAH 14) for both safety and operations. It is anticipated that Anoka County Highway Department will require right and left turn lanes on CSAH 14 (Main Street). The turn lane construction shall be add throughout the preliminary plat documents. Turn lanes denoted throughout the plans. Detailed turn lane construction plans will be part of the final construction plans. Ms. Katie Larsen June 6, 2018 Page 8 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 4. Upgrading Main Street (CSAH 14) to a 4-lane roadway has been identified by both Anoka County and the City for some time in the future but has not been programed. Therefore, should the analysis show that existing conditions do not require improvements at Street A and Main Street (CSAH 14), documentation should be provided of when in the future with the existing lane configurations the improvements would be needed. See revised memo from Spack. 5. Assuming that the intersection of Main Street (CSAH 14) and Lake Drive (CSAH 23) will be addressed in the future, no further analysis over what is included in the current Traffic Study would be required. Comment noted. 6. Street A and Street C shall be 32 feet wide from face of curb to face of curb. The plans currently show back of curb. As discussed, 32’ back to back is acceptable. 7. The cul-du-sac widths can be reduced to 28 feet wide from face of curb to face of curb. Cul-de-sacs have been updated to 28’ back to back. As discussed, 28’ back to back is acceptable. Cul-de-sacs shall be 30’ back to back. 8. The ACD 10-22-32 crossing shall be wide enough to accommodate the road, a 5 foot buffer and an 8.5 foot wide trail with 4:1 side slope tapers. Ditch crossing updated. Street C extended to the northern property line. 9. The future trail extension along 10-22-32 should be relocated to the same crossing as Street C. Thus there would only be one ditch crossing. Ditch crossing updated. 10. There is a future trail planned along the north side of Main Street. The plans shall include the grading for this trail. This will likely also require hydrant relocation. Grading for a future trail has been incorporated. Hydrants will be relocated at the time of trail construction. 11. The applicant shall remove the trees identified in the Landscaping Plan from the sight line triangle of Street A and Main Street (CSAH) 14. Revised per city comments. 12. A bituminous trail is recommended through this site. As noted in the wetland section of this report the proposed location, along Lots 1-6 Block 3, is within the 25 foot buffer and should be relocated. The proposed trail location is allowed by RCWD rules and will therefore not be relocated. According to RCWD Rule F 6(e)(7)(iii) – Buffer may enclose a linear surface for non-motorized travel no more than 10 feet in width. The linear surface must be at least 25 feet from the wetland edge. The area of the linear surface will not be eligible for replacement credit. For projects proposing non- motorized travel no more than 10 feet in width, the linear surface may be reduced to less than 25 feet from the wetland edge based on compelling need and a TEP recommendation to the District in support that the wetland protection afforded is reasonable given the circumstances. Per Kjolhaug Environmental Services. 13. The proposed sidewalks were reviewed. Pedestrian curb ramps will be required, and reviewed with the final construction plans. Comment noted. 14. Street C temporary cul du sac should have continual curb and gutter and temporary paved eyebrows. The storm sewer will need to be adjusted. Temporary cul-de-sac and storm sewer has been updated. 15. The Revised Traffic Study provided a summary of the Level of Service for each intersection movement for CSAH 14 and Street A. It concludes that in the build 2030 and build 2030+ conditions the southbound left turn would operate at a LOS F. Are the recommended improvements discussed on page 9 of the Study included Ms. Katie Larsen June 6, 2018 Page 9 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 with the build analysis? If not, what is the change in Level of Service with these improvements? What is the Level of Service for the interim year (see comment #1)? What is the Level of Service in the no-build condition? This comment was not addressed in the May 17, 2018 revised Traffic Study. Following discussion with the developers engineer an updated revised Traffic Study, dated June 4, 2018 was prepared which did address the comment. The Study concluded that a southbound right turn lane would be needed at the CSAH 14 and Street A intersection. It appears the preliminary plat roadway width accommodates this and should be verified with the final plat (striping plan). Wetlands and Mitigation Plan The Nature’s Refuge development site includes 7 wetlands on 41.55 acres as outlined in the WCA Notice of Decision approved by RCWD. The plan proposes to fill 2 acres of wetlands, some of which are denoted as “high priority wetlands” in the city’s Comprehensive Plan. A wetland sequencing application was submitted by Kjolhaug Environmental Services to RCWD on January 8, 2018 and is currently incomplete. Approval of a complete sequencing application and submittal and approval of a wetland replacement plan will be required prior to issuance of a grading permit. Wetlands on the project are located within the Wetland Management Corridor and will require mitigation as noted in Rice Creek Watershed District’s Rule F (Wetland Alteration), Section 6(b). Wetland 1 is not located within the WMC. All other wetlands are located within the WMC. Per Kjolhaug Environmental Services. 1. An average 50-foot buffer (25-foot minimum) will be required around all wetland areas following construction. It does not appear that the proposed buffers meet the minimum buffer requirement in all locations. In an effort to minimize impacts to wetlands yet meet project purpose and need, proposed WMC buffer does not meet minimum requirements along some areas of proposed wetland fill. A variance application for these areas will be submitted to RCWD for review with the revised Wetland Permit. Per Kjolhaug Environmental Services. 2. A 10-foot bituminous trail is proposed within the upland buffer adjacent to the wetland in Outlot B. This trail must maintain 25-feet from the edge of the wetland. The City’s Environmental Coordinator is reviewing the wetland buffer areas. 3. Two deep (30+ foot deep) ponds (Pond 200 and Pond 300) are proposed adjacent to wetlands within the project. The adjacent wetlands are denoted as “high priority wetlands” in the city’s Comprehensive Plan and are noted as having exceptional vegetative diversity. The applicant shall take steps to ensure that the ponds will not drain the adjacent wetland areas. In the WCA Wetland Replacement Plan, the developer shall provide a plan to protect adjacent wetlands, the plan shall also include a mitigation plan if the wetlands are impacted post construction. With regards to pond construction and potential drainage effects on adjacent wetlands: Ms. Katie Larsen June 6, 2018 Page 10 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 Pond 300 in the northeast portion of the development area will be a maximum of 22 feet deep, has a predicted NWL of 902-ft, and has no outlet (no outlet structure or emergency overflow). In reality, the open water portion of Pond 200 will be the elevation of the local water table and will vary throughout the year as the water table does because the pond does not have a controlled outlet to stabilize water levels. Because the pond does not have an outlet to drawn water down, it will not drain nearby wetlands (there is no where to drain the water if there is no outlet). For these reasons, drainage effects to Wetlands 3, 3a, or 3b from Pond 200 construction are not expected to occur. A similar pond with no outlet was constructed onsite sometime after 1991 near the proposed wetland banking wetland. That large, deep, open-water pond was excavated adjacent to wetland and has not resulted in wetland drainage. Pond 200 will be excavated in around the west end of ACD 10-22-32 (west of the current ditch crossing). The ditch currently drains freely to the west (no controlled outlet). Water levels in the ditch were measured at 901.5-feet by the engineer. Therefore, newly constructed Pond 200 will have an OSC with V notch weir invert of 901.5-ft with the top of the weir at 902.5-ft. The adjacent wetland the southeast (Wetland 2) will have a NWL of 902.0-ft, and will have a raised outlet (EOF only) at 902.5-ft. Wetland 2 will need to be inundated with over 6 inches of water to outlet to Pond 200. That occurrence alone, usually occurring early in the growing season, will meet wetland hydrology requirements. For the remainder of the growing season, Pond 200 and adjacent Wetland 2 water levels will fluctuate with precipitation events and normal seasonal water table level variations. For these reasons, drainage effects to Wetland 2 from Pond 200 construction are not expected to occur. Wetland 4 to the northwest of Pond 200 will not have an outlet, will not be connected to Pond 200, and will be physically separated by the pond maintenance bench/berm. For these reasons, drainage effects to Wetland 4 from Pond 200 construction are not expected to occur. The current and proposed ditch crossing culvert invert elevations and size are equal pre and post development. Therefore, drainage effects to upstream wetlands are not expected to occur. Per Kjolhaug Environmental Services Applicant is submitting a geotechnical report addressing the existing wetland & soil conditions and present any proposals to protect the adjacent wetlands as needed. 4. A review of the DNR’s Natural Heritage Information System (NHIS) Database revealed that rare features have been recorded in or near the wetlands on the property. In 2002, toothcup (Rotala ramosior), a state threatened species, was located within one wetland that is proposed to be filled. Autumn fimbry (Fimbristylis autumnalis) and Blanding’s turtle (Emydoidea blandingii) have also been recorded near the project site. The developer will need to coordinate with the DNR to obtain a permit for the take (destroy, dig up, dispose of, possess, or transport) of threatened or endangered species. Ms. Katie Larsen June 6, 2018 Page 11 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 MnRAM guidance and the 2017 Native Plant Communities Assessment Final Report prepared by CCES have been reviewed. Based on this review and for WCA/RCWD purposes, vegetation quality for all wetlands onsite was determined to be low, with an associated RCWD wetland degradation status of marginally to severely degraded. Specifically: (1) rare plants found onsite are not persistent and therefore item i of the special features tab in MnRAM does not apply and vegetation quality is Low, and (2) although the Native Plant Communities Assessment Final Report identified rare species onsite, the report also states that (paraphrasing) “these rare species were located within areas dominated by crops or agricultural weeds. While state-listed species do occur within cropland and farmed wetland areas, their presence alone is not enough to classify these areas as native plant communities or rare native plant communities.” Rare plants were primarily found in disturbed, annually farmed wetland fringe areas. Per Kjolhaug Environmental Services. 5. The ghost plat shown in Outlot B on the north end of the project (Sheet 10) appears to propose future wetland impacts. These impacts should be taken into account during the sequencing efforts discussed by the Wetland Conservation Act Technical Evaluation Panel. Road alignments should be considered that would minimize future wetland impacts. The ghost plat is now shown to be proposed and has been modified to prevent wetland impacts. A permit to take has been submitted to DNR by CCES for all rare species located in the development footprint (areas that will be physically altered/graded/converted to another use). It is important to note that the presence of rare species onsite is largely a function annual soil disturbance/farming practices. Once farming practices on the site cease (with or without development), rare species occurrence on the site is predicted to drop. Per Kjolhaug Environmental Services. Geotechnical A geotechnical evaluation was completed in response to the concerns over draining the adjacent Pin Oak wetland and impacts to adjacent wells. 1. The introductory paragraph and overall report shall provide recommendations for not only “dewatering” but also reference the” large borrow areas (Ponds 200 & 300) adjacent to existing wetlands”. 2. The applicant shall provide a map of identifying the location and quantity of piezometers and another map of auger probes. 3. The applicant shall provide an evaluation of subsurface geologic feature mapping that can suspend water, or drain with the ground water flow in the absence of geologic “lens”. The Minnesota Geologic survey would be a good reference and soil augerings, mentioned above, to verify lens or no lens. 4. The applicant shall provide a document specifically outline the plan to address well impacts and a plan to address wetland impacts that may occur as a result of this development. The plan may include items suggested in geotechnical memo, clay berms and clay lining of the borrow areas. Ms. Katie Larsen June 6, 2018 Page 12 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 5. We recommend that the City, through the Development Agreement, require securities for mitigation costs associated with protecting the adjacent Pin Oak wetland and adjacent wells. Floodplain The floodplain within the Nature’s Refuge development is a Zone A. The 2015 DFIRM base flood elevation (BFE) from RCWD modeling identifies the BEF elevations of 904.5 (easterly floodplain) and 904.2 (westerly floodplain). The applicant is proposing to fill 37 cubic yards of floodplain and mitigate onsite. There are 29,533 cubic yards of floodplain mitigation proposed on site. 1. Floodplain impacts are proposed on site due to stormwater ponding and structures, and Lots 4-5 Block 3. A LOMR will be required. The applicant shall provide a copy of the CLOMR application to the City. The LOMR is to be in place prior to final plat. This is not required as the floodplain boundary does not encroach any of the lots. Drainage and Utility Easements The municipal infrastructure proposed with the Nature’s Refuge Preliminary Plat is generally within public right of way, easements and outlot. 1. Anoka County requires 75 foot right of way be dedicated along Main Street (CSAH 14). Right of way updated along Main Street. 2. The right of way shown in the Ghost Plat shall be dedicated with the Plat. Ghost plat is now shown to be proposed. 3. Street A, at Main Street (CSAH 14), will require turn lanes and thus additional right of way. Turn lanes added. No further Right of Way required. 4. Lot 25 Block 1 shall have a 20 foot drainage and utility easement for watermain looped connection. Easement added. 5. Lot 5 Block 1 shall be chamfered at the northeast corner to accommodate future access to Pond 100. Plan updated and access path added. 6. Bituminous trails shall be within 25 foot easements if not within right of way or outlot. Bituminous trail is only proposed in right of way or an outlot. Development Agreement A development agreement will be required with the final plat. Comment noted. Grading Agreement Not applicable at this time. Comment noted. Stormwater Maintenance Agreement A Stormwater Maintenance agreement will be required with the final plat. Comment noted. Ms. Katie Larsen June 6, 2018 Page 13 S:\Community Development\Projects\Planning Cases\Nature's Refuge\Staff Reports\20180611 CC (RZ & PUD PP)\20180611 v2 (revised 20180608)\a2 2018060 Permits Required The following permits shall be obtained prior to the issuance of a grading permit. Comment noted. Permits will be obtained. Permits #3 & #4 will be obtained prior to final utility construction. Comments: 1. NPDES Construction General Permit 2. City of Lino Lakes Zoning Permit for Grading 3. Minnesota Department of Health Watermain Extension Permit 4. MPCA Sanitary Sewer Extension Permit 5. Anoka County Permit for Work Within the ROW 6. Rice Creek Watershed Permit for Erosion and Sediment Control 7. Rice Creek Watershed Permit for Wetland Alteration 8. Rice Creek Watershed Permit for Stormwater Management (Rule C) 9. Rice Creek Watershed Permit for Floodplain Alteration (Rule E) 10. Rice Creek Watershed Permit for ACD 10-22-32 Alteration 11. FEMA Letter of Map Revision 12. DNR Permit for the Take or Endangered or Threatened Species Incidental to a Development Project. 13. DNR Water Appropriations Permit (for Construction Dewatering) 14. US Army Corps of Engineers Section 404 Permit If you or the applicant has any questions regarding these comments, please contact Diane Hankee at (651) 982-2430 or diane.hankee@ci.lino-lakes.mn.us. You may also contact Dane Ekdom at (763)762-2815 or dekdom@wsbeng.com. 1 1st Reading: Publication: 2nd Reading: Effective: CITY OF LINO LAKES ORDINANCE NO. 05-18 ORDINANCE TO REZONE PROPERTY FROM R-1, SINGLE FAMILY RESIDENTIAL TO PUD, PLANNED UNIT DEVELOPMENT FOR NATURE’S REFUGE The City Council of Lino Lakes ordains: Section 1: Findings of Fact 1. The City received a Land Use Application to rezone certain property from R-1, Single Family Residential to PUD, Planned Unit Development. 2. The Planning and Zoning Board held a public hearing on February 14, 2018 and continued the hearing to May 9, 2018. 3. Per Section 1007.015 (5), the Planning and Zoning Board shall consider possible adverse effects of the proposed rezoning and its judgement shall be based upon, but not limited to, the following factors: (a) The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. The proposed Nature’s Refuge PUD conservation subdivision is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development upholds the City’s public values by creating a multi-functional open space greenway corridor integrated with the stormwater conveyance system, wetland management and trails. Nature’s Refuge is consistent with residential land use and density requirements. Safe transportation corridors and public utilities also serve the development. (b) The proposed use is or will be compatible with present and future land uses of the area. The proposed Nature’s Refuge development is compatible with the present and future land uses of the area. Existing and future land use to the north, south, east and west is residential. Lino Lakes Elementary School is immediately east of the site. (c) The proposed use conforms with all performance standards contained herein. 2 The proposed Nature’s Refuge development conforms with all PUD performance standards as outlined in Section 1007.024(2) General Requirements and Standards: 1. Ownership. Preferred Builders, Inc. is the owner of the property. 2. Comprehensive Plan Consistency. The proposed PUD shall be consistent with the City Comprehensive Plan. The proposed Nature’s Refuge residential development is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development upholds the City’s public values by creating a multi-functional open space greenway corridor integrated with the stormwater conveyance system, wetland management and trails. Nature’s Refuge is compatible with existing and adjacent land uses. Safe transportation corridors and public utilities also serve the development. 3. Public or Common Open Space. Wetlands and wetland buffers make up 57 acres (60%) of protected open space. A park trail system is also proposed throughout the greenway corridor and along CSAH 14 (Main Street). 4. Operating and Maintenance Requirements for PUD Common Open Space/Facilities. A homeowners association shall be created and Declaration of Covenants and Conditions shall be recorded against the property at the time of final plat. Trail corridors will be deeded to the City. Drainage & utility easements and conservation easements will be dedicated to the City and/or RCWD. 5. Utilities. Public municipal utilities (water and sanitary) shall serve each individual single family lot. 6. Roadways, Private. There are no private roadways proposed in Nature’s Refuge. 7. Development Agreement. A Development Agreement detailing developer responsibilities and securities will be executed with the final plat. 3 (d) The proposed use can be accommodated with existing public services and will not overburden the City’s service capacity. The proposed Nature’s Refuge development can be accommodated with existing public services and will not overburden the City’s service capacity. The site is ultimately served by MCES Interceptor 83-61that is adequately sized for the development in the district. The existing water supply and water distribution system can provide adequate water volume and fire protection. Section 2: Amendment The Zoning Ordinance of the City of Lino Lakes is hereby amended to rezone the following described property from R-1, Single Family Residential to PUD, Planned Unit Development. Section 3: Legal Description PARCEL DESCRIPTION: (Per Schedule A of Title Commitment LT File No. 550831, with a commitment date of January 24, 2017 at 8:00 A.M., prepared by Land Title, Inc. issuing agent for First American Title Insurance Company) Parcel A: The Northeast Quarter of the Southeast Quarter (NE 1/4 of SE 1/4) of Section 5, Township 31, Range 22, except the South 208.74 feet of the East 208.74 feet thereof, Anoka County, Minnesota. (Abstract property) Parcel B: The Southwest Quarter of the Southeast Quarter of Section 5, Township 31, Range 22, Anoka County, Minnesota. Except the following described tracts: 1. Beginning at the Southeast corner of the said Section 5, thence North along East line thereof for 33 feet, thence West parallel to South line thereof for 2,219 feet to the actual point of beginning; thence continuing West on same course for 135 feet; thence North 3 degrees 26 minutes East for 242 feet; thence East parallel to described 1st course for 135 feet; thence South parallel to described 2nd course for 242 feet and to the actual point of beginning. 2. Beginning at the Southwest corner of said Southwest Quarter of Southeast Quarter; thence North along West line thereof a distance of 275 feet; thence East parallel with South line thereof a distance of 100 feet; thence South parallel with said West line a distance of 275 feet to said South line; thence West along said South line for a distance of 100 feet to the actual point of beginning. 3. Commencing at Southeast corner of said Southwest Quarter of Southeast Quarter; thence North along the East line thereof for a distance of 233 feet; thence West parallel to the South line thereof for a distance of 100 feet; thence South parallel to described 1st course 233 feet and to the South line of said Southwest Quarter of Southeast Quarter; thence East along said South line to the point of beginning. 4 4. That part of the Southeast Quarter of Section 5, Township 31, Range 22, Anoka County, Minnesota, described as commencing at the Southeast corner thereof; thence Northerly along the East line thereof for 33.00 feet; thence on an assumed bearing of North 89 degrees 19 minutes 35 seconds West and parallel with the South line of said Southeast Quarter for 2219.00 feet to the actual point of beginning; thence North 4 degrees 06 minutes 25 seconds East 242.00 feet; thence South 74 degrees 11 minutes 56 seconds East 204.14 feet; thence South 4 degrees 06 minutes 25 seconds West a distance of 221.68 feet to the South line of said Southeast Quarter; thence North 89 degrees 19 minutes 35 seconds West along said South line a distance of 200.27 feet to its intersection with a line that bears South 4 degrees 06 minutes 25 seconds West from the point of beginning; thence North 4 degrees 06 minutes 25 seconds East a distance of 33.05 feet to the point of beginning. 5. Parcel 13, Anoka County Highway Right of Way Plat No. 25 according to the map or plat thereof on file and of record in the office of the Anoka County Recorder. Parcel C: The South half of the Northwest Quarter of the Southeast Quarter of Section 5, Township 31, Range 22, Anoka County, Minnesota. (Abstract Property) Section 4: Development Regulations The development shall conform to the plans, requirements, and conditions of approval as listed in Council Resolution No. 18-70. Section 5: Effect This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter and upon the filing of the final plat. Adopted by the Lino Lakes City Council this 11th day of June, 2018. The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 1 CITY OF LINO LAKES RESOLUTION NO. 18-70 APPROVING PUD DEVELOPMENT STAGE PLAN/PRELIMINARY PLAT FOR NATURE’S REFUGE WHEREAS, the City received an application for PUD Development Stage Plan/Preliminary Plat for Nature’s Refuge hereafter referred to as “Development”; and WHEREAS, City staff has completed a review of the “Development” based on the following: April 11, 2018: Preliminary Plan Set prepared by Carlson McCain April 11, 2018: Stormwater Pollution Prevention Plan prepared by Carlson McCain April 11, 2018: Stormwater Management Plan prepared by Carlson McCain April 11, 2018: Tree Inventory Report, prepared by Carlson McCain May 17, 2018: Traffic Study prepared by Spack Consulting April 18, 2018: Revised WCA Wetland Permit Application, prepared by Kjolhaug Environmental Services Company; and WHEREAS, a public hearing was held before the Planning & Zoning Board on February 14, 2018 and continued to May 9, 2018 and the Board recommended approval of the “Development”; and NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT PUD, Planned Unit Development Per Section 1007.024(1) Purpose and Intent, the PUD, by allowing deviation from the strict provisions of this Ordinance related to setbacks, heights, lot area, width and depths, yards, etc., by conditional use permit or a mixture of uses by rezoning to a PUD District, is intended to encourage: a. A development pattern in harmony with the objectives of the Comprehensive Plan. The proposed Nature’s Refuge PUD conservation subdivision is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development upholds the City’s public values by creating a multi-functional open space greenway corridor integrated with the stormwater conveyance system, wetland management and trails. Nature’s Refuge is consistent with residential land use and density requirements. Safe transportation corridors and public utilities also serve the development. b. Innovations in development that address growing demands for all styles of economic expansion, greater variety in type, design, architectural standards, and siting of 2 structures through the conservation and more efficient use of land in such developments. Flexible site design with narrower right-of-way and reduced setbacks allows Nature’s Refuge to develop a residential conservation subdivision and construct of an extensive greenway corridor and storm water management system. c. The preservation and enhancement of desirable site characteristics such as existing vegetation, natural topography and geologic features and the prevention of soil erosion. Restoration and enhancements within Wetland 2 and Wetland 3 (wetland bank area) will boost vegetative diversity through release and stimulation of existing native seeds. Rare plant species will also thrive and expand as a result of the restoration. d. A creative use of land and related physical development which allows a phased and orderly transition of varying land uses in close proximity to each other. Nature’s Refuge creates a multi-functional greenway corridor by integrating the stormwater management system, wetland management and open space areas and trails into one unified system. The trails and sidewalks connect the residential development to the elementary school and Main Street. e. An efficient use of land resulting in smaller networks of utilities and streets thereby lowering development costs and public investments. Reduced right-of-way widths and setbacks provide an efficient use of land and lowers development and public investments. f. Promotion of a desirable and creative environment that might be prevented through the strict application of City zoning and subdivision regulations. Strict application of an 80 foot right-of-way width and 40 foot setback would result in greater impacts to the wetlands and natural resources. Preliminary Plat Per 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; 3 4. Local water management plan; 5. Capital improvement plan; and 6. Growth management policies, including MUSA allocation criteria. Nature’s Refuge 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. Nature’s Refuge is consistent with infill policies. The development is within the current Utility Staging Area 1A (2008-2015). The cost, operation and maintenance of the utility system is 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 requirements for level of service (LOS), as defined by the Highway Capacity Manual. The Traffic Study shall be revised to show traffic impacts at intersections along CSAH 14 (Main Street) will continue to operate acceptably at a Level of Service C. Right and left turn lanes on CSAH 14 (Main Street) are being constructed. This is supported by Anoka County Highway Department. The City and County are also working with Lino Lake Elementary School to eliminate their westerly driveway and connect with Nature’s Refuge. (d) Water supply. A proposed subdivision shall be deemed to have an adequate water supply. Nature’s Refuge will have an adequate water supply. A 12” trunk watermain located along CSAH 14 (Main Street) serves the site. An 8” and 16” watermain serve the site internally and loops the system to CSAH 14 (Main Street). Watermain will be stubbed to the west and north property boundaries for future development. (e) Waste disposal systems. A proposed subdivision shall be served with adequate waste disposal systems. Nature’s Refuge will be served with an adequate waste disposal system. A 21” trunk sanitary sewer main located along CSAH 14 (Main Street) serves the site. An 8” and 10” sanitary sewer pipe serves the site. Future development to the north will potentially require a lift station. Sanitary sewer will also be stubbed to the west to accommodate future development; and BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby provides the following PUD, Planned Unit Development flexibility for Nature’s Refuge: 1. Reduced minor collector road right-of-way width from 80 feet to 60 feet on Street A and Street C 2. Reduced front setback from 40 feet to 30 feet on Street A and Street C 4 3. Reduced road surface width from 32 feet to 28 feet (back to back) on cul de sac Street D and cul de sac Street E 4. Reduced local road right-of-way width from 60 feet to 50 feet on Street E 5. Reduced front setback from 30 feet to 25 feet for Lots 1-5, Block 1 along Street E 6. Reduced lot depth from 135 feet to 120-125 feet for Lots 1-4, Block 5 along Street C 7. Landscaping shall be allowed in the drainage and utility easements covering the 15 foot wide landscape buffer area in Outlot E and Outlot F; and BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby approves the PUD Development Stage Plan/Preliminary Plat for Nature’s Refuge subject to the following conditions: 1. Comments from WSB City Engineer letter dated June 6, 2018 shall be addressed. 2. Comments from the Environmental Coordinator letter dated April 30, 2018 shall be addressed. 3. Comments from Anoka County Transportation Division letter dated February 26, 2018 shall be addressed. 4. Applicant shall provide preliminary details for any proposed development monument/identification signs. 5. Details for right and left hand turn lanes on CSAH 14 (Main Street) shall be provided to the City and County at the time of PUD Final Plan/Final Plat submittal. 6. A copy of the RCWD permit application shall be submitted to the City. 7. Staff and the developer will further analyze if the trail corridor shall be dedicated via trail easement or deeded by outlot. 8. A separate plan sheet shall be created showing a Conservation Easement over all wetlands, buffers, ponds, trail and open space. a. The area of the Conservation Easement shall be calculated and consistent with the data shown on the preliminary plat. 9. Sheet 2, Preliminary Plat & Existing Conditions: a. The density chart shown on page 3 of this staff report shall be included on the plan sheet. i. The density calculations currently shown on the plan sheets are incorrect. b. The Wetland Buffer Area shall include the buffer on Outlot A. 10. Sheet 13, Preliminary Site and Utility Plan a. All Front Setback Lines shall be shown as 30’ unless approved otherwise. b. A future 25’ wide trail corridor shall be shown from Street C extending east along the north property line north of Pond 300. c. The section of sidewalk extending from Main Street to Street B shall also be revised to be an 8.5 foot wide trail. 11. Sheet 14, Preliminary Grading & Erosion Control Plan: a. The plan sheet and Wetland Summary shall include Outlot A and associated wetland buffer. 12. Sheet 15, Preliminary Grading & Erosion Control Plan: a. If Council approves setback and right-of-way width reductions, plan sheets shall be revised to show preservation of tree line along Lots 1-3, Block 1. 13. Sheet 16 & 17, Preliminary Grading & Erosion Control Plan: a. A future 25’ wide trail corridor shall be shown from Street C extending east along the north property line north of Pond 300. 5 b. If Council approves lot depth variation, plan sheets shall be revised accordingly with trail relocation to the west along Lots 1-4, Block 5. 14. Sheet L1 & L2, Site Landscape Plan: a. The developer and Environmental Coordinator shall determine the best location for replacement trees, and open area landscape trees and shrubs. b. Plans shall be revised to show the landscape buffer/planting screen in Outlot E and Outlot F a minimum double row of plants with triangulated spacing. c. No trees or shrubs shall be planted along the trail corridor or in wetland areas. d. The Landscape Legend shall include the plant symbol. e. Under Boulevard Tree Standards, omit “One tree per 70 lf…..”. f. Trees and shrubs in accordance with the landscape ordinance are required along the exterior side of the fence proposed along Lot 1, Block 7. 15. Sheet FP, Floodplain Exhibit: a. Trail and storm pond design shall be revised to avoid the need for any floodplain fill. i. Pond 300 shall be redesigned to not require floodplain fill south of the pond. ii. If the trail is relocated to the west, floodplain fill should be minimized. 16. Sheet W1, Wetland Buffer Exhibit: a. Plan sheet and Wetland Summary shall be revised to include Outlot A and associated wetland buffer. Preliminary comments to be addressed at a further specified date are as follows: 1. Sheet 4, Existing Conditions: a. Sheet 4 shows an existing garage structure in the southeast corner of Outlot A. It is assumed this garage belongs to 801 Main Street. i. The applicant shall work with the property owner to have the structure properly located on their property. ii. A zoning permit is required. iii. This shall be resolved prior to issuance of a grading permit. 2. Sheet 7, Existing Conditions: a. The existing pole barn and garage near 635 Main Street structures shall be removed prior to issuance of a grading permit. i. A demolition permit is required. b. The existing gravel driveway access onto CSAH 14 (Main Street) shall be removed with the issuance of a grading permit. 3. Ownership and maintenance responsibilities of each outlot shall be determined at the time of final plat. a. The applicant shall specifically detail the ownership, maintenance and conservation easement type proposed for the wetland bank land. 4. Draft homeowner’s association documents shall be submitted with the final plat application. 6 Adopted by the Council of the City of Lino Lakes this 11th day of June, 2018. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_cover.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 COVER 1 Know what's below. before you dig.Call R VICINITY MAP 35W BENCHMARK JJO 1. 1/15/18 Rev. Shts 15 & 16 Add USACE Wetland Natures Refuge Lino Lakes, Minnesota 2. 4/11/18 per City Comments P A R C E L A P A R C E L C EX C E P T I O N EX C E P T I O N EX C E P T I O N P A R C E L B (C.S.A.H. NO. 14)MAIN STREET EXCEPTION (5) OW N E R : OW N E R : OW N E R : OW N E R : OW N E R : OWNER: OWNER:OWNER:OWNER: OWNER: OWNER: OWNER: OWNER: OWNER: OWNER: OW N E R : OW N E R : OWNER: OWNER: OWNER: OWNER: EXCEPTION OW N E R : OWNE R : OWNER: OWNER: OWNER: OW N E R : OW N E R : OWNER: OWNER: OWNER: OWNER: OW N E R : OWNER: SEE SHEET 3 (8) OWNER: OWNER: OWNER: OWNER: (1 ) (2 ) (4 ) EX C E P T I O N (3 ) SEE SHEET 4 (9)SEE SHEET 5 (10) SEE SHEET 6 (11) SEE SHEET 7 (12) LEGEND BENCHMARK LEGAL DESCRIPTION SITE DATA PROPOSED SETBACKS VICINITY MAP of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com NATURES REFUGE Lino Lakes, Minnesota f:\jobs\5401 - 5420\5412 - natures refuge\cad\survey\preliminary plat\5412_prp-index.dwgSave Date:04/11/18 DRAWN BY: ISSUE DATE: FILE NO: environmental engineering surveying · · · PRELIMINARY PLAT & EXISTING CONDITIONS INDEX Revisions: 4/11/18 Revised Layout 957 JAB 11/14/2017 Thomas R. Balluff, L.S.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 Land Surveyor under the laws of the State of Minnesota. Print Name: Signature: Date:License #:11/14/2017 40361 18 2 Natures Refuge PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 SHEET NOTE P A R C E L A OWNER: OWNER: OWNER: OWNER: OWNER: OWNER: OWNER: OWNER: OWNER: OW N E R : LEGEND of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com NATURES REFUGE Lino Lakes, Minnesota f:\jobs\5401 - 5420\5412 - natures refuge\cad\survey\preliminary plat\5412_prp.dwgSave Date:04/11/18 DRAWN BY: ISSUE DATE: FILE NO: environmental engineering surveying · · · Thomas R. Balluff, L.S.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 Land Surveyor under the laws of the State of Minnesota. Print Name: Signature: Date:License #:40361 18 8JAB 95711/14/2017 11/14/2017 PRELIMINARY PLAT PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Revisions: 4/11/18 Revised Layout P A R C E L A OWNER: OWNER: OWNER: OWNER: OWNER: OW N E R : OWNER: OW N E R : OWNER: OWNER: OWNER: EXCEPTION LEGEND of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com NATURES REFUGE Lino Lakes, Minnesota f:\jobs\5401 - 5420\5412 - natures refuge\cad\survey\preliminary plat\5412_prp.dwgSave Date:04/11/18 DRAWN BY: ISSUE DATE: FILE NO: environmental engineering surveying · · · Thomas R. Balluff, L.S.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 Land Surveyor under the laws of the State of Minnesota. Print Name: Signature: Date:License #:40361 18 9 957 JAB 11/14/2017 11/14/2017 PRELIMINARY PLAT PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Revisions: 4/11/18 Revised Layout P A R C E L C OW N E R : OW N E R : OW N E R : OWNER: ST R E E T C S T R E E T C LEGEND OWNER: of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com NATURES REFUGE Lino Lakes, Minnesota f:\jobs\5401 - 5420\5412 - natures refuge\cad\survey\preliminary plat\5412_prp.dwgSave Date:04/11/18 DRAWN BY: ISSUE DATE: FILE NO: environmental engineering surveying · · · Thomas R. Balluff, L.S.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 Land Surveyor under the laws of the State of Minnesota. Print Name: Signature: Date:License #:40361 18 10 957 JAB 11/14/2017 11/14/2017 PRELIMINARY PLAT PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Revisions: 4/11/18 Revised Layout EXCEPTION P A R C E L B OWNER: OWNER: OW N E R : OW N E R : OW N E R : OW N E R : OW N E R : STREET C ST R E E T A STREET B ST R E E T C ST R E E T C STR E E T D ST R E E T E STREET A LEGEND of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com NATURES REFUGE Lino Lakes, Minnesota f:\jobs\5401 - 5420\5412 - natures refuge\cad\survey\preliminary plat\5412_prp.dwgSave Date:04/11/18 DRAWN BY: ISSUE DATE: FILE NO: environmental engineering surveying · · · Thomas R. Balluff, L.S.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 Land Surveyor under the laws of the State of Minnesota. Print Name: Signature: Date:License #:40361 18 11 95711/14/2017 11/14/2017 JAB PRELIMINARY PLAT PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Revisions: 4/11/18 Revised Layout EXCEPTION EXCEPTION EXCEPTION P A R C E L B (C.S.A.H. NO. 14) MAIN STREET EXCEPTION OWNER: OWNER: OWNER: OW N E R : OW N E R : OW N E R : OW N E R : OW N E R : STREET C ST R E E T A STREET B ST R E E T C STR E E T D ST R E E T E ST R E E T A EXCEPTION STREET A MAIN STREET LEGEND of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com NATURES REFUGE Lino Lakes, Minnesota f:\jobs\5401 - 5420\5412 - natures refuge\cad\survey\preliminary plat\5412_prp.dwgSave Date:04/11/18 DRAWN BY: ISSUE DATE: FILE NO: environmental engineering surveying · · · Thomas R. Balluff, L.S.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 Land Surveyor under the laws of the State of Minnesota. Print Name: Signature: Date:License #:40361 18 12 957 JAB 11/14/2017 11/14/2017 PRELIMINARY PLAT PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Revisions: 4/11/18 Revised Layout of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_site.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 PRELIMINARY SITE & UTILITY PLAN 13 SITE PLAN LEGEND Know what's below. before you dig.Call R JJO BENCHMARK 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_grade.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 PRELIMINARY GRADING & EROSION CONTROL PLAN 14 BENCHMARK Know what's below. before you dig.Call R LOC 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_grade.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 PRELIMINARY GRADING & EROSION CONTROL PLAN 15 BENCHMARK LOC 1. 1/15/18 Add USACE Wetland 2. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_grade.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 PRELIMINARY GRADING & EROSION CONTROL PLAN 16 BENCHMARK LOC 1. 1/15/18 Add USACE Wetland 2. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_grade.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 PRELIMINARY GRADING & EROSION CONTROL PLAN 17 BENCHMARK LOC 1. 4/11/18 per City Comments 905 910 915 920 925 of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 TREE PRESERVATION PLAN T1 BENCHMARK Know what's below. before you dig.Call R VICINITY MAP 35W 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 T2 BENCHMARK TREE PRESERVATION PLAN 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 T3 BENCHMARK TREE PRESERVATION PLAN 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 T4 BENCHMARK TREE PRESERVATION PLAN 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 T5 BENCHMARK TREE PRESERVATION PLAN 1. 4/11/18 per City Comments of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 T6 BENCHMARK TREE PRESERVATION PLAN 1. 4/11/18 per City Comments 905 910 915 920 925 of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_tree_mitigation.dwgSave Date:04/11/18 environmental engineering surveying · · ·T7 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 ADB 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS 10500 Bren Road E. Minnetonka, MN 55343 TREE PRESERVATION PLAN T7 BENCHMARK 1. 4/11/18 per City Comments SEE WETLAND REPLACEMENT PLAN PREPARED BY KJOLHAG ENVIRONMENTAL FOR WETLANDS AND BUFFER SEEDING REQUIREMENTS SOD IN R.O.W.(TYP.) SOD I N R . O . W . ( T Y P . ) MNDOT 25-131 SEED MIX SEE WETLAND REPLACEMENT PLAN PREPARED BY KJOLHAG ENVIRONMENTAL FOR WETLANDS AND BUFFER SEEDING REQUIREMENTS SEE WETLAND REPLACEMENT PLAN PREPARED BY KJOLHAG ENVIRONMENTAL FOR WETLANDS AND BUFFER SEEDING REQUIREMENTS SEE WETLAND REPLACEMENT PLAN PREPARED BY KJOLHAG ENVIRONMENTAL FOR WETLANDS AND BUFFER SEEDING REQUIREMENTS SOD (TYP.) EXISTING TREES TO REMAIN 6' PRIVACY FENCE OPEN SPACE 1 238,469 sf OPEN SPACE 3 83,306 sf OPEN SPACE 2 46,896 sf OPEN SPACE 4 32,488 sf OPEN SPACE 5 36,552 sfOPEN SPACE 6 11,760 sf A of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_landscape.dwgSave Date:04/11/18 environmental engineering surveying · · · 1. 4/11/18 per City Comments Revisions: NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Print Name: Signature: Date:License #: Drawn: Designed: 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 Landscape Architect under the laws of the State of Minnesota 11/14/2017 JAK 11/14/2017 James A. Kalkes RLA 45071 JAK SITE LANDSCAPE PLAN L1 2 WETLAND FRINGE MN SEED MIX 33-261 (OLD BWSR U6) MNDOT 260 MN SEED MIX 25-131 (OLD MNDOT 260) ALL AREAS DISTURBED BY CONSTRUCTION (USE EROSION CONTROL BLANKET NOT INTENDED TO BE SODDED, OR FOR SLOPES OVER 3:1)RETENTION BASINS HARDWOOD MULCH (NATURAL COLOR) SHREDDED HARDWOOD MULCH COMMERCIAL TURF - SOD HIGHLAND SOD (PEAT SOD IS UNACCEPTABLE) (FOR ALL SHEETS) SEED MIXTYPESYM. SEED MIX LEGEND (FOR ALL SHEETS) BOTANICAL NAME DECIDUOUS TREES KEY COMMON NAME 2.5"BB 5 SIZE ROOT QTY. 2.5"BB 43 Gleditsia triacanthos SHADEMASTER HONEYLOCUST 2.5"BB 24Celtis occidentalis HACKBERRY 2.5"BB 46Acer rubrum 'Nothwoods'NORTHHWOODS MAPLE var. inermis 'Shademaster'HL BL HB RM Quercus rubra RED OAK ORNAMENTAL TREES EVERGREEN TREES BLACK HILLS SPRUCE 6'BB 22Picea glauca var. DensataBH FU L L F O R M T O G R A D E LANDSCAPE LEGEND ST R A I T L E A D E R N O " V " C R O T C H 2.5"BB 46Ulmus x "Cathedral'CATHEDRAL ELMSM -SCOTCH PINE 6'BBPinus sylvestrisSP INSTALL HEIGHT MATURE HEIGHT 10'50' 15'60' 15'50' 14'50' 14'50' 6'40' 6'50' CH CANADIAN HEMLOCKTsuga canadensis 416'BB 6'40' EXISTING GRADE GUY WIRE WITH WEBBING FLAGGING- ONE PER WIRE PLANTING SOIL MIXTURE (SEE SPEC.) MINIMUM 1/2 WIDTH OF ROOT BALL 4"-6" SHREDDED BARK MULCH UNDISTURBED OR STABILIZED SUBSOIL NOTE: GUY ASSEMBLY OPTIONAL BUT CONTRACTOR ASSUMES FULL RESPONSIBILITY FOR MAINTAINING TREE IN A PLUMB POSITION FOR THE DURATION OF THE GUARANTEE PERIOD GUY ASSEMBLY- 16" POLYPROPYLENE OR POLYETHYLENE (40 MIL) 1-1/2" WIDE STRAP (TYP) DOUBLE STRAND 10 GA. WIRE, 2-7" ROLLED STEEL POSTS (MnDOT 3401) @ 180° O.C. (SEE STAKING DIAGRAM) COORDINATE STAKING TO INSURE UNIFORM ORIENTATION OF GUY LINES AND STAKES 2. TRIM OUT DEAD WOOD AND WEAK AND/OR DEFORMED TWIGS. DO NOT CUT A LEADER. DO NOT PAINT CUTS. 4. PLACE PLANT IN PLANTING HOLE WITH BURLAP AND WIRE BASKET, (IF USED), INTACT. BACKFILL WITHIN APPROXIMATELY 12" OF THE TOP OF ROOTBALL, WATER PLANT. REMOVE TOP 1/3 OF THE BASKET OR THE TOP TWO HORIZONTAL RINGS, WHICHEVER IS GREATER. REMOVE ALL BURLAP AND NAILS FROM TOP 1/3 OF THE BALL. REMOVE ALL TWINE. 3. SET PLANT ON UNDISTURBED NATIVE SOIL OR THOROUGHLY COMPACTED BACKFILL SOIL. INSTALL PLANT SO THE ROOT FLARE IS AT OR UP TO 2" ABOVE THE FINISHED GRADE. 6. WATER TO SETTLE PLANTS AND FILL VOIDS. 5. PLUMB AND BACKFILL WITH BACKFILL SOIL. 7. WATER WITHIN TWO HOURS OF INSTALLATION. WATERING MUST BE SUFFICIENT TO THOROUGHLY SATURATE ROOT BALL AND PLANTING HOLE. 8. PLACE MULCH WITHIN 48 HOURS OF THE SECOND WATERING UNLESS SOIL MOISTURE IS EXCESSIVE. 1. SCARIFY BOTTOM AND SIDES OF HOLE PRIOR TO PLANTING PLAN TREE WRAP BACKFILL MIX PAINTED FLUORESCENT ORANGE WHITE FLAGGING (TYP.) DOUBLE STRAND 12 GAUGE WIRE 8" 2-PLY NYLON STRAPS 8' STEEL TEE POST- 4 INCHES HARDWOOD MULCH FROM TOP 1/3 OF THE BALL REMOVE BURLAP & ROPE UNDISTURBED SUBSOIL 4 INCH DEEP SAUCER NOTE: SEE PLANTING NOTES FOR THE TYPE OF MULCH MATERIAL TO USE. 12" 6" 2' ( M I N . ) 6" 6"3 REQUIRED AT 120 AMERICAN LARCHLarix laricinaAL 306'BB 6'60' 2.5"BB 31Quercus bicolor SWAMP WHITE OAKWO 15'50' EXISTING TREES ONSITE TO REMAIN EXISTING TREES TO REMAIN ·OPEN AREA LANDSCAPE STANDARDS (DOES NOT INCLUDE SINGLE FAMILY LOTS) ··ONE TREE & 3 LARGE SHRUBS PER 2000sf OF SITE OPEN SPACE (COMMON AREAS) ···AREA "1" 238,469 sf = 119 TREES & 357 SHRUBS ···AREA "2" 46,896 sf = 23 TREES & 70 SHRUBS ···AREA "3" 83,306 sf = 42 TREES & 124 SHRUBS ···AREA "4" 32,488 sf = 16 TREES & 49 SHRUBS ···AREA "5" 36,552 sf = 18 TREES & 55 SHRUBS ···AREA "6" 11,760 sf = 6 TREES & 18 SHRUBS ····TOTAL = 224 TREES & 673 SHRUBS ··1 OVERSTORY TREE = 2 UNDERSTORY TREES ··1 LARGE SHRUB = 3 SMALL SHRUBS ·TREE PRESERVATION REPLACEMENT TREES =140 ·BUFFER AND SCREEN STANDARDS ··BETWEEN RESIDENTIAL AND ARTERIAL/COLECTOR STREETS =6' ht ···OVERSTORY 50lf / UNDERSTORY 25lf ·BOULEVARD TREE STANDARDS ··ONE TREE PER LOT & ··ONE TREE PER 70LF OF ROAD FRONTAGE ··TREES SHALL BE PLACED WITHIN 14' OF THE BACK OF CURB ··OVERSTORY / UNDERSTORY TREES = 105 ·PROPOSED TREES ··OPEN AREAS TREES/TREE PRESERVATION =224 ··OPEN AREAS SHRUBS =673 ··BOULEVARD TREES =105 ··BUFFER TREES =11 CITY of LINO LAKES LANDSCAPE CODE 2"BB 20 AUTUMN BRILLIANCE 2"BB 17Amelanchier x grandiflora 'Autumn Brilliance' RB SB ST R A I T L E A D E R NO " V " C R O T C H SPRING SNOW CRABAPPLE 2"BB 10Malus x 'Spring Snow'SS CL U M P FO R M JAPANESE TREE LILAC 2"BB 3Syringa ReticulataTL SERVICEBERRY 8'25' 8'20' 8'20' 8'25' SHILOH SPLASH RIVER BIRCHBetula nigra 'Shilo Splash' 910 905 925 920 915 PR O P E R T Y LI N E RO W LI N E MAIN STREET PROPOSED HOUSE of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_landscape.dwgSave Date:04/11/18 environmental engineering surveying · · · 1. 4/11/18 per City Comments Revisions: NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 Print Name: Signature: Date:License #: Drawn: Designed: 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 Landscape Architect under the laws of the State of Minnesota 11/14/2017 JAK 11/14/2017 James A. Kalkes RLA 45071 JAK L2 2LANDSCAPE DETAILS #5 CONT.-DBW Salix purpurea 'Nana'DWARF BLUE ARCTIC WILLOW 1'3'x4' #5 CONT.-BLACK CHOKEBERRYAronica melonocarpa elata 1.5'4'X4'BCB #5 CONT.-RED TWIG DOGWOODCornus Sericea 'Bailey'1.5'5'x5'RTD Ilex verticillata WINTERBERRY #5 CONT.WIN - Cornus racemosa GRAY DOGWOOD #5 CONT.SPF - 1.5'5'x5' 1.5'4'x4' SHRUBS BOTANICAL NAMEKEY COMMON NAME SIZE ROOT QTY.REMARKS LANDSCAPE LEGEND INSTALL HEIGHT MATURE HEIGHT QUANTITIES SHOWN IN THE PLANTING SCHEDULE ARE FOR THE CONTRACTOR'S CONVENIENCE. CONTRACTOR TO VERIFY QUANTITIES SHOWN ON THE PLAN. 2' ( M I N . ) 6"12" UNDISTURBED SUBSOIL ( SEE LANDSCAPE NOTES FOR TYPE OF MULCH ) REMOVE BURLAP & ROPE FROM TOP 1/3 OF BALL IF SHRUB IS B & B, THEN BACKFILL MIX 4 INCHES MULCH FLOODPLAIN EXHIBIT JJO FPof 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_floodplain exhibit.dwgSave Date:04/11/18 environmental engineering surveying · · ·18 Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 11/14/17 11/14/17 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 1 of 3890 Pheasant Ridge Drive NE, Suite 100 Blaine, MN 55449 Phone: (763) 489-7900 Fax: (763) 489-7959 www.carlsonmccain.com f:\jobs\5401 - 5420\5412 - natures refuge\cad\engineering\preliminary\5412_wetland buffer ex.dwgSave Date:04/11/18 environmental engineering surveying · · ·1 1. Revisions:Print Name: Signature: Date:License #: Drawn: Designed: 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 4/11/18 4/11/18 Brian J. Krystofiak, P.E. 25063 BJK NATURES REFUGE Lino Lakes, Minnesota PREFERRED BUILDERS, INC. 10500 Bren Road E. Minnetonka, MN 55343 WETLAND BUFFER EXHIBIT W1 BENCHMARK Know what's below. before you dig.Call R ADB Saddle Club 4th Addition Rezoning and PUD Development Stage Plan/Preliminary Plat June 11, 2018 City Council Meeting 1 Background•April 9, 2018: •Royal Oaks Realty, Inc. submitted a land use application •Rezoning and PUD Development Stage/PP •9 lot single family conservation subdivision •1 parcel = 5.25 gross acres •Development is called Saddle Club 4th Addition. 2 Background•April 30, 2018: •Applicant decided to eliminate 1 lot •Revised plans for an 8 lot single family conservation subdivision •This staff report reflects the 8 lot subdivision 3 4 Analysis•Saddle Club 4th Addition is an extension of the Saddle Club development and will connect Fox Road to the Foxborough residential development. •4th Addition is being developed on 5.25 acres that used to be owned by Comcast and was not part of original Saddle Club preliminary plat and final plat. •Therefore, a full preliminary plat and final plat are required. •Applicant developed both Foxborough and Saddle Club and has chosen to continue the Saddle Club name.5 History•The following summarizes the actions taken by the City, Comcast and Developer to construct the Fox Road connection: •April 11, 2016: Resolution No. 16-13, Council approved Saddle Club 2nd Addition Development Agreement •Agreement was contingent upon Developer and City entering into a purchase agreement for a portion of the Comcast parcel in order to install road and utility improvements 6 History•May 9, 2016: Resolution No. 16-35, Council approved Land Acquisition Escrow Agreement •Developer provided $100,000 deposit to secure City land acquisition from Comcast •August 22, 2016: Resolution No. 16-95, Council approved City acquiring a portion of the Comcast parcel •September 12, 2016: Ordinance No. 10-16, Council approved sale of Comcast land to Developer 7 Zoning Current Zoning R-1, Single Family Residential Proposed Zoning PUD, Planned Unit Development Current Land Use Vacant Residential Future Land Use per CP Low Density Residential (1.6 to 3.9 units per acre) Utility Staging Area 1A=2008-2015 8 •Reduced ROW width from 60 feet to 50 feet •Reduced front and rear setbacks from 30 feet to 25 feet •Consistent with Foxborough and Saddle Club 1st-3rd and Preserve at Lino Lakes Density Gross Area (acres)5.25 Wetlands & Water Bodies (1.62) Public Parks & Open Space 0.00 Arterial ROW 0.00 Other (Utility Transmission Easement)0.00 Other (Wetland Buffer Area)(1.32) Net Area (acres)2.31 # of Units 8 Gross Density (units/acre)1.52 Net Density (units/acre)3.46 •LDR = 1.6 to 3.9 units per acre •56% protected open space 9 Zoning Standard R-1 Requirements Foxborough Saddle Club 1st-3rd Saddle Club 4th Min. Lot Size1 10,800 sf Ave. = 12,632 sf Ave. = 11,957 sf Ave. = 14,478 sf Min. Lot Width 80 ft 80 ft 80 ft 80 ft Min. Lot Depth 135 ft 120 ft 135 ft 135 ft Building Setback (feet) -From Local Streets2 30 ft 25 ft 25 ft 25 ft -From Collector or Arterial Streets 40 ft NA NA NA -Rear --Principal 30 ft 25 ft 25 ft 25 ft -Accessory 5 ft 5 ft 5 ft 5 ft -Side --Principal 10 ft 10 ft 10 ft 10 ft --Accessory 5 ft 5 ft 5 ft 5 ft Buffer Adjacent to Collector 15 foot NA NA NA Impervious Surface 40% Reviewed at Building Permit Reviewed at Building Permit Reviewed at Building Permit 10 Preliminary Plat •SC 4th includes Outlot B, SC 3rd •8 SF lots •7 new lots •1 lot from SC 3rd •3 outlots •SW ponds •Wetlands •L2, B2 •Irregular shape but meets requirements •1 lot eliminated •House plan to be submitted 11 Street & Utilities •50’ ROW •32’ wide road •Temporary cul de sacs will be removed and restored •8” sanitary sewer •8” watermain loops the system 12 Utility Connection•Important component of the Saddle Club development was the Fox Road transportation connection and public utilities connection to the Foxborough development. 13 14 “Road Will Be Extended in the Future” Transportation StreetsAs detailed in the September 6, 2013 WSB Engineering Memo and analyzed during the Saddle Club development process, the Fox Road connection between Foxborough and Saddle Club is needed for the following reasons: •Providing connectivity between neighborhoods is consistent with the CSAH 34 study. •Providing the connection to Foxborough provides for better long term access to the development once Pheasant Run is converted to a right in/right out per the County’s long term plans.15 Streets•The connection to Foxborough distributes the traffic to other primary routes such as West Shadow Lake Drive (minor collector road). •There are a number of existing neighborhoods along CSAH 34 where traffic is forced on to CSAH 34 due to a lack of interconnectivity. Providing the connection to Foxborough prevents this issue from being perpetuated in this area. 16 Traffic Impact Study•A Traffic Impact Study was prepared by Spack Consultants in 2013 for the original Saddle Club development. •The study analyzed traffic impacts at the CSAH 34 (Birch Street) intersection and determined they will continue to operate acceptably at Level of Service A. •The additional 8 lots from Saddle Club 4th Addition and the connection of Fox Road will not negatively impact the level of service intersection operations. 17 1 43 2 1. By-pass Lane on Birch Street 2. Improvements to Old Birch Street 3. Future Fox Road and Public Utilities Connection 4. Connection to Pheasant Run South-Preserve at Lino Lakes 18 19 Overall Transportation Corridor •Local Neighborhood Traffic vs Non-Local Traffic •Connect neighborhoods 20 Park Dedication Saddle Club 4th Addition 8 lots x $3,000 =$24,000 21 22 Trail Corridor •Trail constructed from Foxborough development to Black Berry Court to Preserve at Lino Lakes •No additional trail improvements Tree Preservation•229 significant trees •83 green ash •Will be removed due to Emerald Ash Borer concerns •Of 146 remaining •47 saved •99 removed •15 of the 99 within natural resource protected area •Requires 8 replacement trees 23 24 Wetlands •4 delineated wetlands •1.62 acres •Wetland A •Isolated/incidenta l by USACE •Mitigation not required Wetlands Impacts •Wetland Fill = 0.50 ac •Wetland Mitigation = Purchase Wetland Bank Credits 25 Wetlands Buffer •WMC Buffer = 0.84 ac •Conservation Easements •Monument Signage Rare & Endangered Species•Blanding’s Turtle habitat •Lower profile curb similar to Foxborough will be installed in the Saddle Club 4th Addition development. •Seed bank existing in the wetland soils supports rare plant species. •Tops soils that are removed from the wetland buffer areas shall be returned to the same area to the greatest extent as possible. •This technique was implemented during the development of Saddle Club. 26 Cultural Resources•A Phase I Archeological Survey was performed by Nienow Cultural Consultants, LLC in November 2017. •The survey showed no historic or prehistoric cultural materials. •According to the conclusions of the report, there was no additional work related to the 4th Addition of Saddle Club needed. 27 Comprehensive Plan•SC 4th is consistent with: •Resource Management System Plan •Land Use Plan •Housing Plan •Economic Development Plan •Transportation Plan •Sanitary Sewer Plan •Water Supply Plan 28 Findings of Fact-Rezoning•Consistent with Comp Plan •Compatible with present and future land uses •Conforms with performance standards •Accommodated with existing public services and not overburden service capacity 29 Findings of Fact-PUD•Harmony with Comp Plan •Innovations in development •Preservation and enhancement of desirable characteristics •Creative use of land and related physical development •Efficient use of land resulting in smaller networks of utilities and streets •Promotion of desirable and creative environment 30 Findings of Fact-Preliminary Plat•Consistency with Comp Plan •Consistency with infill policies •Roads serving development meet LOS requirements •Water supply •Waste disposal systems 31 PUD Flexibility•Reduced road right-of-way width from 60 feet to 50 feet •Reduced front and rear setbacks from 30 feet to 25 feet •Consistent with Foxborough, Saddle Club and Preserve at Lino Lakes 32 Recommendation•P&Z Board held a public hearing on May 9, 2018. •Public comments include concerns regarding increased traffic, speed, tree removal and wetland impacts. •P&Z Board voted 6-0 in favor of the Rezoning and PUD Development Stage Plan/Preliminary Plat for Saddle Club Fourth Addition. 33 Council Action•Consider First Reading of Ordinance No. 06-18 Rezoning Property from R-1, Single Family Residential to PUD, Planned Unit Development •Consider Resolution No. 18-72 Approving PUD Development Stage Plan/Preliminary Plat 34 Nature’s Refuge City Council June 11, 2018 Background •62 lot conservation subdivision •Land Use Application •Rezoning from R-1 to PUD •PUD Development Stage Plan/PP 2 3 Lino Lakes Elementary 6 abutting rural SF lots History•2006: 1st concept of Nature’s Refuge •Original site = 232 gross acres •278 SF lots •Environmental Assessment Worksheet (EAW) •Determined no significant impact •No EAW required for current proposal •62 units < 250 unit threshold 4 5 EXISTING CONDITIONS •95 gross acres •Cropland, tree cover •High quality wetland complex •7 wetlands •41 acres •Rare plant and animal species •ACD 32 •GRE private utility easement Density Gross Area (acres)95.05 Wetlands & Water Bodies (Ditch)(42.33) Public Parks & Open Space 0.00 Arterial ROW (1.33) Other (Utility Transmission Easement)(0.40) Other (Wetland Buffer Area Only)(14.20) Net Area (acres)36.79 # of Units 62 Gross Density (units/acre)0.65 Net Density (units/acre)1.69 6 LDR = 1.6 to 3.9 units per acre 7 Original Site Plan •60 SF lots •Ave 80’ wide x 135’ deep •75’-78’ wide •133’-134 deep •No development north of ditch •8 lot ghost plat •Net density = 1.66 upa 1.Lots encroaching into some wetland buffers 2.Trail impacts on rare species 3.Maintaining tree buffer along west property line 4.Stormwater pond depth 1 2 3 4 8 1 3 2 Revised Site Plan •62 SF lots •Net density = 1.69 upa •80’ wide x 135’ deep •Development north of ditch 1.Eliminated lots encroaching into wetland buffers 2.Trail impacts on rare species •Relocated trail 3.Maintaining tree buffer along west property line •Street E •ROW 50 ft •Front setback = 25’ •Mitigation tree planting 4.Stormwater pond depth 4 9 Trail Location •Relocate trail to west side of wetland resource •Reduce rare species impacts •Incorporation Maintenance Access trail •Maintaining tree buffer along west property line •Street E •ROW 60 ft •Front setback = 25’ •Lot 23 & 24 width = 70 ft? •Connection to 10 ‘ wide trail on Main Street •5’ sidewalk installed •Trail •Sidewalk 10 A C B E Preliminary Plat •62 SF lots •6 outlots •SW Ponds •Wetlands & open space •Landscape buffers •Ownership of outlots TBD •HOA •Maintain landscape buffers D F Tree Preservation Plan•1,151 trees on site •928 trees saved •209 trees removed •140 replacement trees required for mitigation •Environmental Coordinator: removal of hazardous or unhealthy trees •Environmental Coordinator shall determine best location of replacement trees 11 12 Traffic Study•Revised Traffic Study was prepared by Spack Consulting on March 29, 2018. •Forecasted 565 new trips per day •45 new trips in the a.m. peak hour •60 trips in the p.m. peak hour. •8,400 AADT existing traffic volume near site on CSAH 14 •Capacity = 8,900 to 18,300 vehicles per day •8,400 existing + 565 new = 8,965 total 13 Level of Service 14 •Existing LOS = C •Proposed subdivision LOS cannot fall below C •2021 Build LOC = C •Proposed subdivision is compliant •EB and WB turn lanes on Main Street have been provided Roadway Location Current 2015 LOS 2021 Build LOS CSAH 14 (Main Street)West of 4 th Avenue C C CSAH 14 (Main Street)Near Site C C CSAH 14 (Main Street) East of CSAH 23 (Lake Drive)C C CSAH 23 (Lake Drive) South of CSAH 14 (Main St)C C CSAH 14 (Main Street) North of CSAH 14 (Main St)C C 15 WETLANDS •7 wetlands •41.9 acres total •Wetland Fill •1.6 acres •Wetland Enhancement •3.8 acres •Vegetation Restoration •4.4 acres •Wetland Buffer •14.2 acres •0.0976 acres wetland bank credit •MnRAM concludes no net loss of wetland hydrology, water quality or wildlife Findings of Fact•Section 1007.015 Administration: Amendments and Rezonings •Consistent with Comprehensive Plan •Compatible with present and future land uses •Conforms with performance standards •Public services capacity •Section 1007.024 PUD, Planned Unit Development •Harmony with Comprehensive Plan •Innovations in development •Preservation of desirable site characteristics •Creative use of land •Efficient use of land 16 17 PUD Flexibility Summary •Street A & C •Reduce ROW from 80’ to 60’ •Reduce front setback from 40’ to 30’ •Street D & E (cul de sacs) •Reduce road width from 32’ to 28’ •Street E •Reduce ROW from 60’ to 50’ •TBD with trail relocation •Block 1, Lots 1-5 •Reduce front setback from 30’ to 25’ •Block 5, Lots 1-4 •Reduce lot depth from 135’ to 120-125 ‘ •Landscaping in D&U OL E & F A C E D Block 5 Block 1 Lot 23 & 24 18 •Allow for Landscaping in D&U Easement Outlot E & F Res. No 18-70: PUD FlexibilityAll lots shall meet 10,800 sf net area requirements and be 80’ wide x 135’ deep 1.Reduced minor collector road right-of-way width from 80 feet to 60 feet on Street A and Street C 2.Reduced front setback from 40 feet to 30 feet on Street A and Street C 3.Reduced road surface width from 32 feet to 28 feet (back to back) on cul de sac Street D and cul de sac Street E 19 Res. No. 18-70: PUD Flexibility4.Reduced local road right-of-way width from 60 feet to 50 feet on Street E 5.Reduced front setback from 30 feet to 25 feet for Lots 1- 5, Block 1 along Street E 6.Reduced lot depth from 135 feet to 120-125 feet for Lots 1-4, Block 5 along Street C 7.Landscaping shall be allowed in the drainage and utility easements covering the 15 foot wide landscape buffer area in Outlot E and Outlot F 20 Planning & Zoning Board•P&Z Board held a public hearing on February 14, 2018 and continued the hearing to May 9, 2018. •Public comments included concerns regarding groundwater and wetland impacts, tree removal and additional traffic onto Main Street. •P&Z Board voted 6-0 in favor of the Rezoning and PUD Development Stage Plan/Preliminary Plat for Nature’s Refuge. 21 Council Action•Consider First Reading of Ordinance No. 05-18 Rezoning Property from R-1, Single Family Residential to PUD, Planned Unit Development •Consider Resolution No. 18-70 Approving PUD Development Stage Plan/Preliminary Plat •With proposed revisions 22 1 CITY COUNCIL AGENDA ITEM 6C STAFF ORIGINATOR: Katie Larsen, City Planner MEETING DATE: June 11, 2018 TOPIC: Saddle Club Fourth Addition i. Consider First Reading of Ordinance No. 06-18 Rezoning Property from R-1, Single Family Residential to PUD, Planned Unit Development ii. Consider Resolution No. 18-72 Approving PUD Development Stage Plan/Preliminary Plat VOTE REQUIRED: 3/5 INTRODUCTION On April 9, 2018, the applicant, Royal Oaks Realty, Inc., submitted a land use application for rezoning and PUD Development Stage/Preliminary Plat review. The proposed residential development was a 9 lot single family conservation subdivision located north of Foxborough and west of Saddle Club. It contains 1 parcel totaling approximately 5.25 gross acres. The development is called Saddle Club Fourth Addition. On April 30, 2018, the applicant decided to eliminate 1 lot and submitted revised plans for an 8 lot single family conservation subdivision. This staff report reflects the 8 lot subdivision. The Land Use Applications are: • Rezone property from R-1, Single Family Residential to PUD, Planned Unit Development • PUD Development Stage Plan/Preliminary Plat This staff report is based on review the following plan sets and documents: • 4/30/2018: Civil Plans, prepared by Plowe Engineering • 4/30/2018: Certificate of Survey and Preliminary Plat, prepared by E.G. Rud & Sons • 3/17/2017: Engineering Field Report, prepared by Carl Anderson Engineering • 3/13/2013: Northern Technologies, Inc. Soil Borings • 4/9/2018: Stormwater Drainage Report, prepared by Plowe Engineering • 3/22/2018: Wetland Permit Application prepared by Kjolhaug Environmental Services 2 ANALYSIS Saddle Club Fourth Addition is an extension of the Saddle Club development and will connect Fox Road to the Foxborough residential development. The Fourth Addition is being developed on 5.25 acres that used to be owned by Comcast and was not part of original Saddle Club preliminary plat and final plat. Therefore, a full preliminary plat and final plat are required. The applicant developed both Foxborough and Saddle Club and has chosen to continue the Saddle Club name. History Foxborough is a 56 lot conservation development that was platted in 2005. Fox Road was intentionally stubbed to the north for future development and road connectivity. Saddle Club is a 55 lot conservation development that was first platted in 2015. Fox Road was intentionally stubbed to the west for future development and road connectivity. The need for this connection was analyzed and documented throughout the original Saddle Club development process. The Saddle Club Fourth Addition is the final phase that will connect the two subdivisions as planned. The following summarizes the actions taken by the City, Comcast and Developer (DuPont Holdings, LLC) to construct the Fox Road connection: • April 11, 2016: Resolution No. 16-13, Council approved Saddle Club 2nd Addition Development Agreement o Agreement was contingent upon Developer and City entering into a purchase agreement for a portion of the Comcast parcel in order to install road and utility improvements • May 9, 2016: Resolution No. 16-35, Council approved Land Acquisition Escrow Agreement o Developer provided $100,000 deposit to secure City land acquisition from Comcast • August 22, 2016: Resolution No. 16-95, Council approved City acquiring a portion of the Comcast parcel • September 12, 2016: Ordinance No. 10-16, Council approved sale of Comcast land to Developer Existing Site Conditions The 5.25 gross acre site is located north of Foxborough and west of Saddle Club. The site consists of undeveloped woodland and wetland. Topography is generally flat with highest elevation at 896 ft and lowest elevation at 892 ft. Soils are clean fine to medium grain sand and are classified as hydrologic groups B. Piezometer testing located groundwater at depths ranging from 3 to 5 feet. Zoning Current and Proposed Zoning 3 The property is currently zoned R-1, Single Family Residential and will be rezoned to PUD, Planned Unit Development to allow for 50 foot wide right-of-way and 25 foot front and rear setbacks. This is consistent with the Foxborough and Saddle Club developments. The PUD development process implements the goals and policies of the comprehensive plan by providing flexibility from the strict standards of the zoning ordinance to allow for this type conservation subdivision development. Current Zoning R-1, Single Family Residential Proposed Zoning PUD, Planned Unit Development Current Land Use Vacant Residential Future Land Use per CP Low Density Residential (1.6 to 3.9 units per acre) Utility Staging Area 1A=2008-2015 Density The site is guided for low density residential development which requires a density of 1.6 to 3.9 units per acres. The proposed net density is 3.46 units per acre which is consistent with the Comprehensive Plan’s guided land use and density. Wetlands and wetland buffers make up 2.94 acres (56%) of protected open space. The following chart implements Met Council’s formula for calculating net density. Gross Area (acres) 5.25 Wetlands & Water Bodies (1.62) Public Parks & Open Space 0.00 Arterial ROW 0.00 Other (Utility Transmission Easement) 0.00 Other (Wetland Buffer Area) (1.32) Net Area (acres) 2.31 # of Units 8 Gross Density (units/acre) 1.52 Net Density (units/acre) 3.46 4 It should be noted that Saddle Club Fourth Addition incorporates Outlot B, Saddle Club 3rd Addition. This outlot was preliminary platted as 2 single family lots. The Fourth Addition is now utilizing 1 of the lots as a stormwater management pond. The other lot will remain as a single family lot. Surrounding Zoning and Land Use Direction Zoning Current Land Use Future Land Use North R-1, Single Family Utility (Comcast Property) Low Density Sewered Residential South PUD Single Family Residential Low Density Sewered Residential East PUD Single Family Residential Low Density Sewered Residential West R-1, Single Family Vacant Rural Residential Low Density Sewered Residential Zoning Requirements The property will be rezoned to PUD, Planned Unit Development to allow for the following flexibilities: • Reduced front and rear yard setback from 30 feet to 25 feet • Reduced road right of way from 60 feet to 50 feet This is consistent with Foxborough and Saddle Club developments. The regulations and performance standards of the R-1, Single Family Residential zoning district will be in effect unless otherwise stated in Council resolution or Development Agreement. Standard R-1 Requirements Foxborough Saddle Club 1st- 3rd Saddle Club 4th Min. Lot Size1 10,800 sf Ave. = 12,632 sf Ave. = 11,957 sf Ave. = 14,478 sf Min. Lot Width 80 ft 80 ft 80 ft 80 ft Min. Lot Depth 135 ft 120 ft 135 ft 135 ft Building Setback (feet) -From Local Streets2 30 ft 25 ft 25 ft 25 ft -From Collector or Arterial Streets 40 ft NA NA NA -Rear --Principal 30 ft 25 ft 25 ft 25 ft 5 -Accessory 5 ft 5 ft 5 ft 5 ft -Side --Principal 10 ft 10 ft 10 ft 10 ft --Accessory 5 ft 5 ft 5 ft 5 ft Buffer Adjacent to Collector 15 foot NA NA NA Impervious Surface 40% Reviewed at Building Permit Reviewed at Building Permit Reviewed at Building Permit 1Net area required is 10,800 sf of contiguous buildable land 2PUD flexibility required Building Type and Construction At the time of building permit, each individual single family dwelling unit will be reviewed for compliance with Section 1007.043(2)(a) General Building Provisions and the R-1, Single Family Residential requirements regarding floor area, garage and design and construction standards. Subdivision Ordinance Conformity with the Comprehensive Plan and Zoning Code The preliminary plat is consistent with the comprehensive plan for a conservation subdivision as discussed below. The PUD provides flexibility from the strict standards of the zoning ordinance. Blocks and Lots The preliminary plat has 8 single family lots and 3 outlots. The outlots are for stormwater management facilities and delineated wetland areas. As noted above, Saddle Club Fourth Addition incorporates Outlot B, Saddle Club 3rd Addition. This outlot was preliminary platted as 2 single family lots. The Fourth Addition is now utilizing 1 of the lots as a stormwater management pond. The other lot will remain for a single family house. Lot 2, Block 2 is an irregular shaped lot but meets the required lot dimensions is regards to size, width and depth. Similar to some lots in Foxborough and Saddle Club, this lot has limited rear yard area for accessory structures. The developer shall submit a house plan that includes a deck for this lot. The outlots will be deeded to the City. Streets and Alleys 6 Fox Road right-of-way will be 50 feet wide and the paved roadway will be 32 feet wide. This is consistent with Foxborough and Saddle Club. The temporary cul de sacs at the north and south end of Fox Road will be removed and restored to standard road widths. As detailed in the September 6, 2013 WSB Engineering Memo and analyzed during the Saddle Club development process, the Fox Road connection between Foxborough and Saddle Club is needed for the following reasons: 1. Providing connectivity between neighborhoods is consistent with the CSAH 34 study. 2. Providing the connection to Foxborough provides for better long term access to the development once Pheasant Run is converted to a right in/right out per the County’s long term plans. 3. The connection to Foxborough distributes the traffic to other primary routes such as West Shadow Lake Drive. 4. There are a number of existing neighborhoods along CSAH 34 where traffic is forced on to CSAH 34 due to a lack of interconnectivity. Providing the connection to Foxborough prevents this issue from being perpetuated in this area. Easements Standard drainage and utility easements at least 10 feet wide are provided along all lot lines. A 19 foot wide easement is dedicated along the east lot line of Lot 1, Block 2 to cover a storm sewer pipe. Drainage and utility easements are shown to be dedicated 10 feet above the high water level over stormwater drainage ponds and 10 feet outward from the delineated wetland boundary. Rear lot lines also have a minimum 10 foot wide easement. Conservation easements are required over wetland and greenway corridor outlots. These areas have been shown on the preliminary plat. A Right-of-Way, Drainage and Utility Easement was recorded in March 2017 granting the City a perpetual easement over the entire property for purposes of constructing street and utilities. This easement shall be vacated upon Council approval of the PUD Final Plan/Final Plat for Saddle Club Fourth Addition. Storm Water Management and Erosion and Sediment Control Per Sheet C1.1, Grading, Drainage and ESC Plan prepared by Plowe Engineering and dated April 30, 2018, one (1) stormwater pond is located in Outlot A and one (1) stormwater pond is located in Outlot C. Per the Stormwater Drainage Report, the water table elevation is too high to achieve the necessary 3 foot separation for infiltration so NURP ponding is proposed. Lot frontages and public street drainage is collected via catch basins and stormwater pipes that drain north on Fox Road into Pond 1 on Outlot A and then to Pond 2 on Outlot C. Rear lot run- off is routed onto pervious disconnected surfaces. The site will be mass graded and developed in one (1) phase. 7 Utilities Public water, sanitary and storm sewer utilities will be installed within the development. Sanitary Sewer An 8” sanitary sewer pipe will connect from Foxborough to Saddle Club along Fox Road and serve the site. Watermain An 8” watermain will connect from Foxborough to Saddle Club along Fox Road and serve the site. Public Land Dedication The City will require cash in lieu of land dedication. Per the City’s Park, Greenway & Trail System Plan, a neighborhood park is not programmed for this area. An existing trail system extends from Foxborough to Saddle Club and provides connection to Birch Park. No further trail construction is required. Saddle Club Fourth Addition 8 lots x $3,000 = $24,000 Tree Preservation The goal of tree preservation is to minimize unnecessary loss of habitat, biodiversity and forest resource and to replace removed trees in areas where tree cover is most critical. Sheet L2, Tree Inventory & Removals prepared by Plowe Engineering dated April 30, 2018 identifies 229 significant trees on site. Approximately 83 are green ash trees and will be removed due to Emerald Ash Borer concerns. Of the remaining 146 significant trees, approximately 47 trees will be saved and 99 will be removed. The Tree Preservation Plan identifies the basic use area and environmentally sensitive areas. Fifteen (15) of the 99 trees being removed are within the natural resource protected area. This requires the need for 8 replacement trees for mitigation. The Plan also identifies tree protection fencing for several higher quality tree stands. The Environmental Coordinator also reviewed the Tree Preservation Plan and made suggestions for removal of hazardous or unhealthy trees such as the green ash tree. He also notes there are smaller trees in the woodland that were not counted because the trees are less than 6 inches in diameter. There is also a heavy understory of Buckthorn, particularly on the Foxborough side that will maintain some screening. The Planning & Zoning Board recommended removal of the buckthorn which was acceptable to the Environmental Coordinator. 8 Landscaping Boulevard trees are required at the rate of one (1) tree per lot frontage for single family. There are 8 single family lots and 9 boulevard trees are proposed which is compliant with the ordinance. Open area landscaping standards required 1 large tree and 3 large shrubs per 2,000 sf. Per the Landscape Plan, there is 18,280 sf of open area requiring 10 overstory trees and 28 large shrubs. The Environmental Coordinator will work with the developer on the planting locations of these trees and shrubs. Environmental Assessment Worksheet (EAW) An EAW is not required for the current proposed Saddle Club Fourth Addition because the 8 housing units do not exceed the 250 housing unit threshold. Even when analyzing Saddle Club development as a whole, the 62 total housing units does not exceed the threshold. Transportation Improvements In conjunction with the original Saddle Club development, the following transportation safety improvements have been made: • By-pass lane was added to CSAH 34 (Birch Street) near Old Birch Street • Old Birch Street was terminated at CSAH 34 (Birch Street) with a cul de sac at the north end • Old Birch Street was milled and overlayed As previously noted, Foxborough is a 56 lot conservation development that was platted in 2005. Fox Road was intentionally stubbed to the north for future development and road connectivity. Saddle Club is a 55 lot conservation development that was first platted in 2015. Fox Road was intentionally stubbed to the west for future development and road connectivity. The need for this connection was analyzed and documented throughout the original Saddle Club development process. The Saddle Club Fourth Addition is the final phase that will connect the two subdivisions as planned. A Traffic Impact Study was prepared by Spack Consultants in 2013 for the original Saddle Club development. The study analyzed traffic impacts at the CSAH 34 (Birch Street) intersection and determined they will continue to operate acceptably at Level of Service A. The additional 8 lots from Saddle Club Fourth Addition and the connection of Fox Road will not negatively impact the level of service intersection operations. Wetlands Four (4) wetlands were identified and delineated on site totaling 1.62 acres. Wetland A was determined to be an isolated/incidental wetland by USACE and does not require compensatory mitigation. The project area is located within the Lino Lakes Comprehensive Wetland Protection and Management Plan (CWPMP). 9 A WCA Permit Application for wetland sequencing and mitigation was prepared by KJolhaug Environmental Services on March 22, 2018. As proposed, the project will require 21,705 square feet (0.4983-acres) of jurisdictional wetland fill within 2 separate wetland locations. Wetland buffer/conservation easement will cover 0.84 acres of upland area. Permanent wetland impacts are proposed to be replaced through the purchase of wetland bank credits from a Board of Water and Soil Resources (BWSR) and U.S. Army Corps of Engineers (USACE) certified wetland bank located within the same Bank Service Area and Minor Watershed as the proposed project. The proposed bank is also within a CWPMP area. Wetland Summary Total Delineated Wetlands 1.62 acres Wetland Fill 0.50 acres WMC Buffer Area 0.84 acres Wetland Mitigation Wetland Bank Credits Rare & Endangered Species Per the April 25, 2018 Environmental Board staff report, the area of Saddle Club Fourth Addition is a Blanding’s Turtle habitat. A Blanding’s turtle was found in the Foxborough area several years ago. Residents have recognized the rare turtle in other reported sightings. In order to minimize barriers to the Blanding’s turtle or any nesting turtle species, lower profile curb similar to Foxborough will be installed in the Saddle Club Fourth Addition development. The seed bank existing in the wetland soils supports rare plant species. Tops soils that are removed from the wetland buffer areas shall be returned to the same area to the greatest extent as possible. This technique was implemented during the development of Saddle Club. Cultural Resources A Phase I Archeological Survey was performed by Nienow Cultural Consultants, LLC in November 2017. The survey showed no historic or prehistoric cultural materials. According to the conclusions of the report, there was no additional work related to the Fourth Addition of Saddle Club needed. Floodplain The 2015 DFIRM indicates Zone A floodplain in the far northwest corner of the site in the wetland. No impacts to the floodplain are proposed. Comprehensive Plan Resource Management System Plan The Resource Management System Plan provides the conservation design framework for the Comprehensive Plan and sustainable decisions regarding growth and development. It provides 10 a unified system approach to natural resource management and natural resource based amenities. Goals of the Resource Management System Plan include: • Natural Resources and Amenities o Goal #1: Identify, protect and preserve the desirable natural areas and ecological and aquatic resources of the community. o Goal #2: Initiate and continue vigorous collaborations and programs to address, restore, and preserve the water quality of the region’s lakes, wetlands and other aquatic assets. • Land Use Policies o Goal #1: Ensure that well-planned, quality residential, commercial, industrial and institutional development to accommodate the city’s projected growth needs occurs in a manner that also conserves and enhances the city’s natural resources and amenities. The Resource Management System Plan identifies the need for greenway system connectivity in the area. Saddle Club Fourth Addition addresses the goals of the Resource Management System by connecting the Foxborough and Saddle Club residential conservation subdivisions. The development enhances the multi-functional greenway corridor by integrating the stormwater management system, wetland management and open space areas and trail corridor into one contiguous unified system. Land Use Plan Goal 1: Create a unified vision and future for the city, promote a well-planned community, prevent fragmented development, address the impacts of development and redevelopment on natural resources, aesthetics and view corridors, and provide balanced land use and connectivity that ensures the integration of both sides of the regional park. Policies established to obtain this goal include: 1. Provide clearly defined incentives to achieve significant and discernable public values not achievable under conventional development standards. These public values include, but are not limited to: a. Preserving open space, providing park dedication and trails, and/or providing stormwater management areas, in excess of minimum standards to implement the Resource Management System Plan, as amended, and Rice Creek Watershed District’s Lino Lakes Resource Management Plan, as amended b. Restoring/enhancing ecological systems c. Managing stormwater using natural filtration and other ecologically based approaches d. Providing life-cycle and affordable housing e. Diversifying the tax base to lessen the tax burden on residential properties 11 f. Providing infrastructure that benefits community beyond the project site that would otherwise not be financially feasible 2. Identify and define incentives offered to developers for achieving specific public values not achievable under conventional development standards. These incentives may include, but are not limited to: a. Reduced street and right-of-way widths b. Trunk utility and stormwater management fee credits c. Staging plan flexibility 3. Encourage master planning to accomplish the objectives of the Comprehensive Plan including, but not limited to, implementing the Resource Management System Plan, as amended, implementing Rice Creek Watershed District’s Lino Lakes Resource Management Plan, as amended, providing life-cycle housing, and diversifying the city’s tax base. As previously discussed, the site is guided for low density residential development which requires a density of 1.6 to 3.9 units per acres. The proposed net density is 3.46 units per acre which is consistent with the Comprehensive Plan’s guided land use and density. Wetlands and wetland buffers make up 2.94 acres (56%) of protected open space. Saddle Club Fourth Addition meets the land use goals by connecting 2 residential subdivisions and preventing fragmented development. It also creates a residential conservation subdivision that supports public values by integrating the stormwater conveyance systems, wetland management, open space areas and trail corridor into a multi-functional greenway corridor. The development implements the Resource Management Plan, provides housing, promotes pedestrian connectivity and diversifies the city’s tax base. Housing Plan Goal 3: Ensure housing development is compatible with existing and adjacent land uses and provides accessibility to key community features and natural amenities. Policies include linking trails to parks, lakes and schools. Saddle Club Fourth Addition meets the goal of the housing plan. The development is compatible with the existing adjacent conservation residential subdivisions. Economic Development Goal 1: Expand and diversify the city’s tax base by encouraging mixed-use and nodal development to lessen the tax burden on residential properties. Policies include developing walkable neighborhoods with commercial nodes and amenities for residents. Saddle Club Fourth Addition does not negatively impact the city’s economic development goals. Transportation Plan Goal 1: Plan for and achieve required street improvements and connectivity throughout the City of Lino Lakes. 12 Goal 2: Ensure that streets and roads are as safe as possible. Goal 7: Maintain and coordinate the transportation system with adjacent communities, Anoka County, Washington County, Metropolitan Council and Mn/DOT. Saddle Club Fourth Addition meets the goals of the 2030 Transportation Plan. The development provides connectivity between neighborhoods and implements the Anoka County CSAH 34 Access Management Plan. Sanitary Sewer Plan Goals of the sanitary sewer plan are to ensure well-planned, quality residential development that conserves and enhances the city’s natural resources and to provide an affordable and safe sanitary sewer system. Saddle Club Fourth Addition meets the goals of the sanitary sewer plans. The site is located in Sanitary Sewer District 1 (Sub-district 1B) and is in Utility Staging area 1A (2008-2015). The sanitary sewer system has capacity to serve the development. Water Supply Plan A goal of the water supply plan is to provide residents affordable potable water that is safe and of high quality for daily consumption and fire demand. Saddle Club Fourth Addition meets the goals of the water supply plan. The site is served by an 8” watermain along Fox Road. The water system has capacity to serve this residential development. Planning Districts The development is in Planning District 1 and the Reshanau Resource Management Unit (RMU). Incorporation of the wetland preservation corridor and greenway system into development has been identified as resource management recommendations. Saddle Club Fourth Addition implements this plan. PUD Final Stage Plan/Final Plat A land use application for PUD Final Plan/Final Plat shall be required. Findings of Fact The Findings of Fact for the Rezoning and PUD Development Stage Plan/Preliminary Plat amendment are detailed in Ordinance No. 06-18 and Resolution No. 18-72, respectively. 13 RECOMMENDATION The Planning & Zoning Board held a public hearing on May 9, 2018. Public comments include concerns regarding increased traffic, speed, tree removal and wetland impacts. The Planning & Zoning Board voted 6-0 in favor of the Rezoning and PUD Development Stage Plan/Preliminary Plat for Saddle Club Fourth Addition. ATTACHMENTS 1. Aerial Map 2. City Engineer Letter dated May 2, 2018 3. Environmental Coordinator Letter dated May 1, 2018 4. Ordinance No. 06-18 5. Resolution No. 18-72 6. Preliminary Civil Plan Set dated April 30, 2018 prepared by Plowe Engineering, Inc. 7. Preliminary Plat dated April 30, 2018 prepared by EG Rud & Sons, Inc. 0 500 1,000250 Feet AA SS PP EE NN LL NN OLD BIRCH STOLD BIRCH ST FOX RDFOX RD BLACK DUCK DR S BLACK DUCK DR S SOUTH TRAPPERS XING SOUTH TRAPPERS XING KK IILL LLDDEEEERR DDRR DD EE EE RR WW OOOODD CCIIRR HOLLY DR HOLLY DR BIRCH CT BIRCH CT FO X CIR FO X CIR FOX HOLW FOX HOLW SADDLE CLUB CT SADDLE CLUB CT DD EE EE RR WW OO OO DD LL NN RREE DD FF OO XX RRDD CCRRIIPPPPLLEECCRREEEEKK PPAASSSS PPHHEEAASSAANNTTRRUUNN SSMUSKRAT RUNMUSKRAT RUN FFOOXX CCVV CCRRIIPPPPLLEECCRR EEEEKKCCTT FFOOXXRRDD AASSPPEENN LLNN BEAVER TRLBEAVER TRL FFAA WWNNLLNN BBEEAAVVEERRCCII RR DD EE EE RRWW OOOODD LL NN Aerial Map µ Foxborough200556 lots Saddle Club 4th20188 lots Saddle Club 1st-3rd201555 lots Building a legacy – your legacy. 701 Xenia Avenue South Suite 300 Minneapolis, MN 55416 Tel: 763-541-4800 Fax: 763-541-1700 Equal Opportunity Employer wsbeng.com Memorandum To: Katie Larsen, City Planner From: Diane Hankee PE, City Engineer Dane Ekdom, EIT Date: May 2, 2017 Re: Saddle Club 4th Addition Preliminary Plat Review WSB Project No. 002988-560 We have reviewed the Preliminary Plat documents dated April 30, 2018 for the Saddle Club 4th Addition development in Lino Lakes, MN prepared by Plowe Engineering, Inc. and E. G. Rud & Sons, Inc. The following are our review comments that should be responded to in writing by the applicant. All plans, specifications, and construction activities shall reference the latest version of the City General Specifications and Standard Detail Plates for Street and Utility Construction dated February 2018, the 2013 CEAM, and the 2018 MnDOT Standard Specifications. Engineering The Saddle Club 4th Addition Preliminary Plat serves 8 new single-family lots, including the Saddle Club 3rd Addition Outlot B. The 4th Addition will include a roadway connection and water loop from the Fox Borough Development to the Saddle Club 3rd Addition. Grading, Erosion and Sediment Control Comments: 1. The applicant shall use detail plates from the City of Lino Lakes General Specifications and Standard Detail Plates, dated February 2018. 2. The applicant shall show construction entrances on the grading plan. 3. The applicant shall show the location for temporary/permanent erosion control measures and the estimated quantities for all BMPs. Note the seven day stabilization requirement (temp/perm). 4. The plans need to describe maintenance activities and when to complete maintenance. Show locations for stockpiles and BMP measures for stockpile management. Ms. Katie Larsen April 4, 2017 Page 2 5. The applicant shall add a note to the grading plan that street sweeping is required. 6. The SWPPP shall denote the inspection process/schedule for SWPPP activities as well as the person(s) to ensure the inspections and maintenance activities are being performed. 7. The applicant shall label the proposed high points between lots, and proposed elevations at property corners. 8. The applicant shall extend the existing and proposed grades to include tie in points with the previous Fox Borough Development as well as Saddle Club 3rd Addition. These grades should include updated grades after the removal of the temporary cul-de-sacs. 9. The applicant shall label the future High Point on Fox Road on the south end of the road. 10. The applicant shall show the limits of clearing and grubbing. 11. The applicant shall show/label inlet protection at the low point to the south within the Fox Borough Development. 12. The applicant shall include construction plans & details regarding the rain gardens at ST. 10+00. 13. The applicant shall show the reconstruction of the bituminous trail to the south all the way up to the existing pedestrian bridge to fix drainage issues along the path. The applicant shall also be extended through this area. 14. The applicant shall adjust driveway grades to a maximum of 8% slope. The applicant shall also show the driveway grade for Block 3, Lot 1. • Stormwater Management In April 2017, Permit #17-034 from the Rice Creek Watershed District was deemed incomplete. Permit #17-034 was for the original Saddle Club 4th Addition for surface water management. The RCWD permit is currently under review. Erosion control is required with this phase and includes the rock construction entrances and silt fence around the perimeter of the disturbed area. The SWPPP is under review by the City’s Environmental Coordinator. There is one stormwater quality pond, 1 stormwater basin, and 2 rain gardens in the proposed Saddle Club 4th Addition. Comments: 1. Add note to ‘Storm Sewer Notes’ to include the following verbiage: All joints to be wrapped with geotextile fabric (STR-11). 2. Add note to ‘Storm Sewer Notes’ that ‘The FES and last 3 pipe joints are to be tied’. 3. The applicant shall add catch basins to the low point at ST 2+32.92 to drain water at this point. 4. The applicant to provide explanation for shallow pipe grade from pond outlet to MH 202. 5. The applicant shall label the Normal Water Level (NWL) and High Water Level (HWL) for the wetland in Outlot E. 6. Spot elevation and flow arrows should be added for both of the proposed ponds as well as high points between homes. 7. The applicant shall label Emergency Overflows for catch basins in the street (low points). 8. The applicant shall provide explanation for Block 2, Lot 1 Drainage Easement width (min. 20’ wide). Ms. Katie Larsen April 4, 2017 Page 3 9. Block 3, Lot 1 shall have a minimum Low Floor Elevation of 898.5 to be 2 feet above the HWL of Pond 1. 10. The Low Floor elevations for Block 1, Lots 1 & 2, and Block 2, Lot 1 shall be a minimum of 4 feet above the groundwater level (based on the most conservative Piezometer reading). 11. The inlet and outlet elevations for Pond 1 shall be adjusted to meet NURP standards. 12. The applicant shall provide storm sewer calculations for all pipes and drainage areas to accommodate a 10-year rainfall event. 13. CBMH #102 shall have a 3 foot sump below the lowest invert. 14. FES #101 shall match the NWL for Pond #1. 15. The applicant shall add a callout to FES #101that says, “Rip Rap with Fabric.” Rip rap shall extend to the pond bottom as well. • Water Supply Saddle Club 4th Addition is served by 8 inch diameter DIP mainline water main, and 1 inch diameter copper services. Saddle Club 4th Addition will require the looping of the water main from Saddle Club 3rd Addition to the existing line in Fox Road (Fox Borough Development). Comments: 1. The applicant shall add a crossing note on plan and profile views that insulation is required. The ‘Water Main Notes’ note 2 shall have the following verbiage: Maintain 24-inch minimum vertical clearance between sewer and water main or water service crossings. Refer to Standard Detail Plate WAT-3. 2. The applicant shall add a note to ‘Water Main Notes’, to use 8’x8’x4” insulation at pipe crossings when there is less than 24” vertical clearance between the water main and sewer. 3. The applicant shall add a note to “Water Main Notes” that fittings shall be ductile iron Class 350 compact fusion-bonded epoxy coated. 4. The connect to existing water main at ST 4+20 shall include a new 8” gate valve to connect to the existing pipe 5. An 8” gate valve shall be called out for the match into existing water main from Saddle Club 3rd Addition. 6. The applicant shall provide 1 more hydrant for 400 feet minimum spacing. 7. The hydrant that is to be salvaged from the Fox Borough development to the south shall be a new hydrant at ST 4+00. • Sanitary Sewer Saddle Club 4th Addition is served by 8 inch diameter PVC mainline sanitary sewer, and 4 inch diameter Schedule 40 PVC services. The Saddle Club 4th Addition will be serviced from the existing line in Fox Road (Fox Borough Development). Ms. Katie Larsen April 4, 2017 Page 4 Comments: 1. Show the installation of tracer wire for all sanitary services. Provide access to wire ends for future locating requirements. 2. Add note to ‘Sanitary Sewer Notes’ that the contractor shall provide X, Y and Z GPS coordinates of wye and service end for future locating requirements. 3. The 4” sanitary service pipes shall be shown as Schedule 40. 4. Block 3, Lot 1 will require a sanitary service cleanout. This shall be shown on the plans and a detail shall be included in the plans as well. • Transportation The Saddle Club 4th Addition development extends Fox Road 400 feet to the southwest. The roadway is 32 feet wide back of curb to back of curb. Comments: 1. The applicant shall add a note to the typical street sections to seal the joints running between the edge of the bituminous street and the concrete curb with mastic joint sealant. 2. Update ‘Curb & Bituminous Notes’ note 2 to identify a “full depth” saw cut. 3. Update the street detail plate to show the correct urban street section. 4. The plans should show the existing and proposed street light locations. 5. The centerline profile shall be updated to include the new high point on the south end of Fox Road. 6. The applicant shall provide a recommendation for atypical section within the geotechnical report. The City is concerned with the roadway section through this area adjacent to the wetlands. • Floodplain There is existing floodplain on the northwest side of the project site and will not be impacted by Saddle Club 4th Addition. • Wetlands and Mitigation Plan Wetlands and mitigation plan are being reviewed by the City’s Environmental Coordinator. • Drainage and Utility Easements The Saddle Club 4th Addition development includes standard drainage and utility easements rear yard drainage easement areas. Block 2, Lot 1 has a 19’ Drainage and Utility Easement for storm sewer. Construction easements are being reviewed by the City’s Environmental Coordinator. Ms. Katie Larsen April 4, 2017 Page 5 • Development Agreement The Saddle Club 4th Addition will require a Development Agreement. • Grading Agreement (if applicable) A grading agreement is not applicable at this time. • Stormwater Maintenance Agreement (if applicable) A Stormwater Maintenance Agreement for the overall site was recorded with the 1st Addition of the Saddle Club development, but did not include the entire 4th Addition. The applicant shall work with Rice Creek Watershed District to either amend the original Stormwater Maintenance Agreement or complete a new Maintenance Agreement for the 4th Addition. • Permits Required The following permits shall be obtained prior to the issuance of a grading permit. Comments: 1. NPDES Construction General Permit 2. City of Lino Lakes Zoning Permit for Grading 3. Rice Creek Watershed Permit for Stormwater and Erosion and Sediment Control 4. US Army Corps of Engineers Section 404 – Individual Permit 5. MDH for Water System Extension 6. MPCA Sanitary Sewer Extension If you or the applicant has any questions regarding these comments, please contact Diane Hankee at (651) 982-2430 or diane.hankee@ci.lino-lakes.mn.us. You may also contact Dane Ekdom at (763) 762-2815 or dekdom@wsbeng.com. Page 1 Memo To: Katie Larsen From: Marty Asleson Date: May 1, 2018 Re: Environmental Board Recommendations for Foxburough 4th Addition The Lino Lakes Environmental Board had the following comments and recommendations about Saddle Club 4th Addition: • Install a lower profile curb similar to Foxburough in the Saddle Club 4th Addition development for amphibian travel • The ponds must be shown to have a 2-3 foot separation between the bottom of the pond and the ground water table if they are infiltration ponds. • Remove and replace all wetland top soils in buffer and wetland areas that would be graded and place the soils in the same place from where they were removed • During construction the developer must identify a person that will be doing the inspections. The person must be certified by the state to do inspections. All weekly and post rainfall inspections must be submitted to the City of Lino Lakes by the next day after inspections. Follow-up corrections must be submitted to the City after corrections are made. • Remove all Ash trees in areas where they may be a hazard impact to new residents, as well as an economic impact. • With little remaining for screening after the basic use area is cleared of trees, replacement trees should be planted in space left on the west and south side. This could mean in the Foxburough Conservation Easement area strip to the south of the project, with the permission of the Foxburough Association. Native shrubs should be planted to replace buckthorn that after tree clearing will be the Environmental Page 2 only effective screen still on site. Recommendation is to do this over a few years if there is concern about screening, so that the buckthorn can continue to screen until replaced. At the May 9, 2018 Planning & Zoning Board meeting, the Board recommended removal of the buckthorn with the initial tree removals. The Environmental Coordinator has no issue with this. • Evergreens in the ponds must be changed to fire adapted species. • Change Mock Orange, Privet, and Winged Spindle Tree in the planting pallet to something more natural like Gray Dogwood, Red Osier Dogwood, and Winterberry. • Enough money must be escrowed for one boulevard tree per frontage of each house. The trees must be 2” to 21/2 inches in diameter and balled and burlapped. • A Conservation Easement, naming the City and Watershed District as holders of the Easement, must be provided over the entire wetland Management Corridor Area including the buffer areas, and signs placed on property corners showing the location of the buffer. The sign must be approved by the City. The signs must be mounted on 4 inch by 4 inch treated posts. Signs must be in place immediately after grading is completed, and before any lots are sold. • A five-year maintenance plan for the restoration areas was provided by the developer. A summary of each year’s maintenance done must be submitted to the City at the end of each year. 1 1st Reading: Publication: 2nd Reading: Effective: CITY OF LINO LAKES ORDINANCE NO. 06-18 ORDINANCE TO REZONE PROPERTY FROM R-1, SINGLE FAMILY RESIDENTIAL TO PUD, PLANNED UNIT DEVELOPMENT FOR SADDLE CLUB FOURTH ADDITION The City Council of Lino Lakes ordains: Section 1: Findings of Fact 1. The City received a Land Use Application to rezone certain property from R-1, Single Family Residential to PUD, Planned Unit Development. 2. The Planning and Zoning Board held a public hearing on May 9, 2018. 3. Per Section 1007.015 (5), the Planning and Zoning Board shall consider possible adverse effects of the proposed rezoning and its judgement shall be based upon, but not limited to, the following factors: (a) The proposed action has been considered in relation to the specific policies and provisions of and has been found to be consistent with the official City Comprehensive Plan. The proposed Saddle Club Fourth Addition PUD conservation subdivision is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development upholds the City’s public values by creating a multi-functional open space greenway corridor integrated with the stormwater conveyance system and wetland management. Saddle Club Fourth Addition is consistent with residential land use and density requirements. Safe transportation corridors and public utilities also serve the development. (b) The proposed use is or will be compatible with present and future land uses of the area. The proposed Saddle Club Fourth Addition development is compatible with the present and future land uses of the area. Existing and future land use to the north, south, east and west is residential. (c) The proposed use conforms with all performance standards contained herein. 2 The proposed Saddle Club Fourth Addition development conforms with all PUD performance standards as outlined in Section 1007.024(2) General Requirements and Standards: 1. Ownership. Dupont Holdings LLC is the owner of the property. 2. Comprehensive Plan Consistency. The proposed PUD shall be consistent with the City Comprehensive Plan. The proposed Saddle Club Fourth Addition residential development is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development upholds the City’s public values by creating a multi-functional open space greenway corridor integrated with the stormwater conveyance system and wetland management. Saddle Club Fourth Addition is compatible with existing and adjacent land uses. Safe transportation corridors and public utilities also serve the development. 3. Public or Common Open Space. Wetlands and wetland buffers make up 2.94 acres (56%) of protected open space. 4. Operating and Maintenance Requirements for PUD Common Open Space/Facilities. Drainage & utility easements and conservation easements will be dedicated to the City and/or RCWD for operation and maintenance. 5. Utilities. Public municipal utilities (water and sanitary) shall serve each individual single family lot. 6. Roadways, Private. There are no private roadways proposed in Saddle Club Fourth Addition. 7. Development Agreement. A Development Agreement detailing developer responsibilities and securities will be executed with the final plat. (d) The proposed use can be accommodated with existing public services and will not overburden the City’s service capacity. The proposed Saddle Club Fourth Addition development can be accommodated with existing public services and will not overburden the City’s service capacity. The site is 3 served by MCES Lift Station L69 and is adequately sized for the development in the district. The existing water supply and water distribution system can provide adequate water volume and fire protection. Section 2: Amendment The Zoning Ordinance of the City of Lino Lakes is hereby amended to rezone the following described property from R-1, Single Family Residential to PUD, Planned Unit Development. Section 3: Legal Description The South 550.00 feet of the East 330.00 feet of the Southwest Quarter of the Southwest Quarter of Section 28, Township 31, Range 22, Anoka County, Minnesota. Outlot B, Saddle Club Third Addition, Anoka County, Minnesota. Section 4: Development Regulations The development shall conform to the plans, requirements, and conditions of approval as listed in Council Resolution No. 18-72. Section 5: Effect This ordinance shall be in force and effect from and after its passage and publication according to the Lino Lakes City Charter and upon the filing of the final plat. Adopted by the Lino Lakes City Council this 11th day of June, 2018. The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk 1 CITY OF LINO LAKES RESOLUTION NO. 18-72 APPROVING PUD DEVELOPMENT STAGE PLAN/PRELIMINARY PLAT FOR SADDLE CLUB FOURTH ADDITION WHEREAS, the City received an application for PUD Development Stage Plan/Preliminary Plat for Nature’s Refuge hereafter referred to as “Development”; and WHEREAS, City staff has completed a review of the “Development” based on the following: • 4/30/2018: Civil Plans, prepared by Plowe Engineering • 4/30/2018: Certificate of Survey and Preliminary Plat, prepared by E.G. Rud & Sons • 3/17/2017: Engineering Field Report, prepared by Carl Anderson Engineering • 3/13/2013: Northern Technologies, Inc. Soil Borings • 4/9/2018: Stormwater Drainage Report, prepared by Plowe Engineering • 3/22/2018: Wetland Permit Application prepared by Kjolhaug Environmental Services; and WHEREAS, a public hearing was held before the Planning & Zoning Board on May 9, 2018 and the Board recommended approval of the “Development”; and NOW, THEREFORE BE IT RESOLVED by The City Council of The City of Lino Lakes hereby makes the following: FINDINGS OF FACT PUD, Planned Unit Development Per Section 1007.024(1) Purpose and Intent, the PUD, by allowing deviation from the strict provisions of this Ordinance related to setbacks, heights, lot area, width and depths, yards, etc., by conditional use permit or a mixture of uses by rezoning to a PUD District, is intended to encourage: a. A development pattern in harmony with the objectives of the Comprehensive Plan. The proposed Saddle Club Fourth Addition PUD conservation subdivision is consistent with the goals and policies of the comprehensive plan in regards to resource management, land use, housing, transportation and utilities. The development upholds the City’s public values by creating a multi-functional open space greenway corridor integrated with the stormwater conveyance system and wetland management. Saddle Club Fourth Addition is consistent with residential land use and density requirements. Safe transportation corridors and public utilities also serve the development. b. Innovations in development that address growing demands for all styles of economic expansion, greater variety in type, design, architectural standards, and siting of structures through the conservation and more efficient use of land in such 2 developments. Flexible site design with narrower right-of-way widths and reduced setbacks allows Saddle Club Fourth Addition to develop a residential conservation subdivision and construct a multi- functional greenway corridor and storm water management system. Some lots may be custom graded for custom built homes. This will also preserve desirable natural resources and trees. c. The preservation and enhancement of desirable site characteristics such as existing vegetation, natural topography and geologic features and the prevention of soil erosion. Wetland buffers and conservation easements will protect the wetland vegetation areas. The seed bank existing in the wetland soils supports rare plant species. Tops soils that are removed from the wetland buffer areas shall be returned to the same area to the greatest extent as possible. d. A creative use of land and related physical development which allows a phased and orderly transition of varying land uses in close proximity to each other. Saddle Club Fourth Addition connects the Foxborough and Saddle Club conservation subdivisions and provides a contiguous multi-functional greenway corridor by integrating the stormwater management system, wetland management and open space areas and trails into one unified system. e. An efficient use of land resulting in smaller networks of utilities and streets thereby lowering development costs and public investments. Reduced right-of-way widths and setbacks provide an efficient use of land and lowers development and public investments. f. Promotion of a desirable and creative environment that might be prevented through the strict application of City zoning and subdivision regulations. Strict application of a 60 foot right-of-way width and 30 foot setback would result in greater impacts to the wetlands and natural resources. Preliminary Plat Per 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; 3 4. Local water management plan; 5. Capital improvement plan; and 6. Growth management policies, including MUSA allocation criteria. Saddle Club Fourth Addition 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. Saddle Club Fourth Addition is consistent with infill policies. The development is within the current Utility Staging Area 1A (2008-2015). The cost, operation and maintenance of the utility system is 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 requirements for level of service (LOS), as defined by the Highway Capacity Manual. Saddle Club Fourth Addition meets the requirements for level of service (LOS). A Traffic Impact Study analyzed traffic impacts at the CSAH 34 (Birch Street) intersection and determined they will continue to operate acceptably at Level of Service A. The additional 8 lots from Saddle Club Fourth Addition and the connection of Fox Road will not negatively impact the level of service operations. (d) Water supply. A proposed subdivision shall be deemed to have an adequate water supply. Saddle Club Fourth Addition will have an adequate water supply. The site is served by an 8” watermain along Fox Road. The water system has capacity to serve this 9 lot residential development. (e) Waste disposal systems. A proposed subdivision shall be served with adequate waste disposal systems. Saddle Club Fourth Addition will be served with an adequate waste disposal system. The site is served by an 8” sanitary sewer pipe will connect from Foxborough to Saddle Club along Fox Road. The sanitary system has capacity to serve this 9 lot residential development; and BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby provides the following PUD, Planned Unit Development flexibility for Saddle Club Fourth Addition: 1. Reduced road right-of-way width from 60 feet to 50 feet. 2. Reduced front and rear setbacks from 30 feet to 25 feet; and BE IT FURTHER RESOLVED by The City Council of The City of Lino Lakes hereby approves the PUD Development Stage Plan/Preliminary Plat for Saddle Club Fourth Addition subject to the following conditions: 4 1. Comments from WSB City Engineer letter dated May 2, 2018 shall be addressed. 2. Comments from the Environmental Coordinator letter dated May 1, 2018 shall be addressed. 3. A copy of the RCWD permit application shall be submitted to the City. 4. Developer shall prepared deeds for Outlots A, B and C. 5. Developer shall provide a house plan with deck for Lot 2, Block 2. 6. Right-of-Way, Drainage and Utility Easement shall be vacated in conjunction with Council approval of PUD Final Plan/Final Plat. 7. Sheet L2, Tree Inventory & Removals: a. Tree Inventory Table shall have consistent headers e.g. “Rem” vs “Save”. 8. Sheet S2, Preliminary Plat: a. It shall be noted on the preliminary plat that “Lot 2, Block 2 has limited ability to construct accessory structures, decks or additions.” Adopted by the Council of the City of Lino Lakes this 11th day of June, 2018. The motion for the adoption of the foregoing resolution was introduced by Council Member _______________and was duly seconded by Council Member ________________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: _______________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk TAG SPECIES DBH COND. NOTES REM? WMC?TAG SPECIES DBH COND. NOTES SAVE? WMC?TAG SPECIES DBH COND. NOTES SAVE? WMC? 1 Aspen 13 5 SAVE X 78 Hackberry 12 5 X 155 Oak, White 27 5 2 stem tree X 2 Aspen 12 5 SAVE X 79 Hackberry 7 5 X 156 Oak, White 18 5 X 3 Aspen 14 5 SAVE X 80 Hackberry 12 5 X 157 Oak, Red 25 6 X 4 Aspen 10 5 SAVE X 81 Ash, Green 12 4 X 158 Oak, Red 19 6 X 5 Oak, Red 9 6 SAVE 82 Ash, Green 13 4 X 159 Oak, Red 16 5 X 6 Oak, Red 22 5 SAVE X 83 Hackberry 8 5 X 160 Oak, Red 19 5 X 7 Cherry, Black 9 4 2 stem tree X 84 Ash, Green 7 4 X 161 Oak, White 17 4 X 8 Maple, Red 14 4 2 stem tree X 85 Hackberry 9 5 SAVE 162 Oak, White 21 5 X 9 Oak, Red 24 4 hanging broken branch SAVE 86 Ash, Green 16 4 SAVE 163 Oak, Red 16 4 X 10 Maple, Red 13 5 SAVE 87 Ash, Green 13 4 SAVE 164 Cherry, Black 11 4 X 11 Maple, Red 19 5 SAVE X 88 Ash, Green 12 4 SAVE 165 Oak, Red 24 4 X 12 Oak, Red 27 5 SAVE X 89 Ash, Green 6 5 SAVE 166 Cherry, Black 8 4 X 13 Ash, Green 13 5 X 90 Boxelder 7 5 SAVE 167 Oak, Red 23 5 SAVE 14 Oak, White 10 5 2 stem tree SAVE X 91 Boxelder 8 4 SAVE 168 Oak, Red 14 5 SAVE 15 Maple, Red 15 4 2 stem tree SAVE X 92 Ash, Green 8 5 SAVE 169 Maple, Red 12 5 SAVE X 16 Cherry, Black 12 5 SAVE 93 Ash, Green 13 4 SAVE 170 Oak, White 20 6 SAVE 17 Cherry, Black 12 4 X 94 Ash, Green 7 4 SAVE 171 Cherry, Black 8 5 X 18 Maple, Red 13 4 2 stem tree X 95 Ash, Green 12 4 SAVE 172 Oak, Red 8 4 X 19 Ash, Green 19 5 X 96 Ash, Green 9 4 SAVE 173 Oak, Red 25 5 X 20 Cherry, Black 6 4 X 97 Ash, Green 18 5 SAVE 174 Cherry, Black 11 5 2 stem tree SAVE X 21 Maple, Red 10 4 2 stem tree X 98 Ash, Green 13 5 SAVE 175 Ash, Green 8 4 SAVE 22 Ash, Green 18 5 X 99 Ash, Green 6 5 X 176 Ash, Green 7 4 SAVE 23 Maple, Red 20 5 X 100 Ash, Green 7 4 X 177 Ash, Green 21 4 2 stem tree SAVE 24 Maple, Red 24 4 X 101 Ash, Green 13 4 X 178 Boxelder 7 4 X X 25 Maple, Red 17 4 X 102 Ash, Green 15 5 X 179 Oak, Red 20 5 X X 26 Maple, Red 12 4 X 103 Hackberry 12 5 SAVE 180 Oak, White 20 4 X 27 Maple, Red 10 4 3 stem tree X 104 Ash, Green 22 4 SAVE X 181 Oak, White 22 5 X 28 Maple, Red 24 5 2 stem tree X 105 Hackberry 17 5 SAVE X 182 Oak, White 22 6 X 29 Cherry, Black 12 4 2 stem tree X 106 Hackberry 8 5 SAVE X 183 Oak, White 17 4 X 30 Ash, Green 19 4 X 107 Hackberry 7 5 SAVE X 184 Birch, Paper 13 5 X 31 Maple, Red 16 4 X 108 Hackberry 12 5 SAVE 185 Oak, White 12 4 X 32 Ash, Green 10 4 X 109 Hackberry 10 5 X 186 Oak, White 21 5 2 stem tree X 33 Oak, Red 19 6 X 110 Ash, Green 17 4 X 187 Hackberry 10 5 SAVE X 34 Maple, Red 23 4 X 111 Ash, Green 20 4 X 188 Hackberry 13 5 SAVE 35 Hackberry 9 5 X 112 Hackberry 6 5 X 189 Ash, Green 12 4 SAVE 36 Ash, Green 24 5 X 113 Ash, Green 7 4 X 190 Ash, Green 32 4 3 stem tree SAVE 37 Boxelder 6 4 X 114 Ash, Green 15 4 X 191 Ash, Green 13 4 SAVE 38 Ash, Green 15 4 X 115 Ash, Green 11 4 X 192 Ash, Green 13 5 SAVE X 39 Ash, Green 15 4 X 116 Hackberry 7 4 X 193 Hackberry 10 5 SAVE X 40 Ash, Green 13 5 X 117 Hackberry 7 4 X 194 Hackberry 12 5 SAVE X 41 Hackberry 6 5 X 118 Ash, Green 16 5 X 195 Ash, Green 16 5 SAVE X 42 Ash, Green 21 4 X 119 Ash, Green 11 5 X 196 Ash, Green 14 4 2 stem tree SAVE X 43 Ash, Green 7 4 X 120 Hackberry 8 5 X 197 Boxelder 9 4 SAVE 44 Boxelder 7 4 X 121 Ash, Green 7 4 SAVE 198 Boxelder 12 4 SAVE 45 Boxelder 8 4 X 122 Hackberry 7 5 SAVE 199 Ash, Green 21 5 X 46 Oak, White 10 5 X 123 Ash, Green 13 4 SAVE 200 Ash, Green 19 5 X 47 Oak, White 20 5 X 124 Ash, Green 24 5 SAVE 201 Aspen 7 4 SAVE 48 Ash, Green 7 5 X 125 Ash, Green 17 4 X 202 Aspen 8 5 SAVE 49 Ash, Green 15 5 X 126 Ash, Green 9 4 SAVE X 203 Birch, Paper 7 4 SAVE X 50 Ash, Green 16 5 SAVE 127 Ash, Green 28 4 2 stem tree SAVE 204 Aspen 8 5 SAVE X 51 Ash, Green 6 4 SAVE 128 Ash, Green 13 4 X X 205 Aspen 7 4 SAVE X 52 Ash, Green 16 4 X 129 Oak, White 18 4 X 206 Aspen 8 5 SAVE 53 Ash, Green 17 4 X 130 Hackberry 8 5 X 207 Aspen 9 5 SAVE 54 Ash, Green 9 4 X 131 Ash, Green 9 4 X 208 Aspen 8 5 SAVE X 55 Ash, Green 12 4 X 132 Hackberry 10 4 X 209 Aspen 9 5 SAVE X 56 Hackberry 9 5 X 133 Ash, Green 20 5 X 210 Ash, Green 6 4 SAVE 57 Hackberry 9 4 X 134 Ash, Green 8 4 X 211 Ash, Green 11 4 SAVE 58 Hackberry 7 5 X 135 Ash, Green 14 4 X 212 Ash, Green 6 4 SAVE 59 Ash, Green 24 5 X 136 Hackberry 12 5 X 213 Ash, Green 8 4 X 60 Hackberry 16 5 X 137 Hackberry 10 5 X 214 Ash, Green 7 5 SAVE 61 Ash, Green 23 5 X 138 Boxelder 13 5 X 215 Ash, Green 9 4 SAVE 62 Hackberry 11 4 X 139 Ash, Green 9 4 X 216 Ash, Green 10 5 SAVE 63 Hackberry 7 5 X 140 Cherry, Black 11 5 X 217 Ash, Green 9 5 SAVE 64 Cherry, Black 10 4 X 141 Oak, White 20 4 X 218 Aspen 6 5 X X 65 Boxelder 11 4 X 142 Maple, Red 15 4 X 219 Aspen 7 5 X X 66 Boxelder 10 5 X 143 Oak, White 14 5 X 220 Aspen 6 5 X X 67 Boxelder 12 5 X 144 Oak, White 12 6 X 221 Aspen 7 5 X X 68 Ash, Green 21 5 X 145 Boxelder 8 5 X 222 Aspen 10 5 2 stem tree X X 69 Ash, Green 22 4 X 146 Cherry, Black 8 4 X 223 Aspen 8 5 X X 70 Ash, Green 27 4 2 stem tree X 147 Oak, Red 24 4 X 224 Aspen 6 4 X X 71 Ash, Green 18 5 X 148 Maple, Red 16 5 SAVE 225 Oak, Red 20 5 X X 72 Hackberry 6 5 X 149 Oak, Red 14 5 SAVE 226 Aspen 6 5 X X 73 Hackberry 7 5 X 150 Oak, White 8 4 SAVE 227 Aspen 6 5 X X 74 Boxelder 7 4 X 151 Oak, Red 21 4 SAVE N.A. OAK 28 ?REAR OF LOT 1 X X 75 Boxelder 10 5 X 152 Oak, Red 24 4 SAVE N.A. OAK 16 ?REAR OF LOT 1 X X 76 Ash, Green 19 5 X 153 Oak, Red 21 4 X 77 Hackberry 9 5 X 154 Oak, White 12 5 X 1 CITY COUNCIL AGENDA ITEM 6D STAFF ORIGINATOR: Michael Grochala, Community Development Director MEETING DATE: June 11, 2018 TOPIC: Consider 1st Reading of Ordinance No. 07-18, Amending City Code Section 1007 Related to Driveway Surfacing, Airplane Hangar and Hangar Access Performance Standards VOTE REQUIRED: Simple Majority INTRODUCTION Staff is requesting City Council consideration to amend City Code Section 1007 to amend driveway, airplane hangar and hangar access performance standards. BACKGROUND Within the City of Lino Lakes are two unique residential developments that are constructed around private airports. Both Lino Air Park/Century Farm North and Surf Side Addition provide for the construction of airplane hangars and taxiway access to the airports. In December of 2017 the City Council was approached by representatives of Lino Air Park concerning hangar access from public roads. The representatives requested modification of existing City Zoning Ordinance requirements to provide additional flexibility to access airplane hangars from public streets. The City Council directed staff to work with the Air Park to develop a solution that would accommodate the needs of the property owners. ANALYSIS The City Zoning Ordinance establishes performance standards for accessory buildings, driveway construction, driveway access to public streets, driveway setbacks, and maximum impervious surface. These requirements include the following: 1007.043(4)(i)4.h. Lots that have shared ownership/membership in the Lino Airpark may have a three thousand two hundred (3,200) square foot accessory building as an airplane hangar provided that: i. The hangar be earth tone in color. ii. The hangar conform to Building Code standards for hangar use. 2 iii. The hangar location has direct taxiway access to the Lino Airpark runway. 1007.044(3)(h) 6.c. Except with special approval from the City Engineer, curb cut openings and driveways shall be a minimum of five (5) feet from the side yard property line in all districts. Any shared driveway shall include a maintenance and access agreement. 1007.044(3)(h)6.d. A single-family lot in a residential zoning district shall not have more than one driveway accessing a public street. 1007.044(3)(h)7. Curb Cut/Driveway Width. No curb cut shall exceed twenty-six (26) feet in width within a residential zoning district, or thirty-six (36) feet in width if the property is in a commercial, industrial, or public/semi-public zoning district, as measured at the street right-of- way line unless approved by the City Engineer. The driveway associated with such curb cut may increase in width at an angle not greater than forty-five (45) degrees. 1007.044(5)g. In the case of single family dwellings which lie upon lots smaller than one (1) acre, two family, townhouse and quadraminium dwellings, parking shall be prohibited in any portion of the front yard except designated driveways leading directly into a garage or one (1) open, surfaced space located on the side of a driveway, away from the principal use. Said extra space shall be surfaced in a manner consistent with §1007.044 (3)(h)9. of this Ordinance. Maximum Impervious Surface Currently 40% in Low Density Residential land use areas and 50% in a Medium Density Residential land use area. Driveway surfacing requirements are currently limited to residential and rural zoning district parking areas within section 1007.044 (11)(a)1. Based on the current ordinance provisions driveways can be extended to hangars provided: 1. They are setback from the property line 5 feet. Shared driveways are allowed with City Engineer Approval. 2. Only one driveway is allowed in Residential zoning district. Properties in Rural Zoning Districts may have a second driveway. 3. Impervious surface cannot exceed 40% in low density areas and 50% in medium density areas. However, due to the location and or configuration of houses on lots, mostly in Century Farm North, property owners are having difficulty meeting these minimum standards. In many cases the garage side of house is located 5 feet from the property line. Proposed Amendment Staff has worked with the City Attorney to address and clarify driveway surfacing requirements and develop a general provision section of the zoning ordinance that would relate specifically to air parks including both Lino Air Park and Surfside Addition. The provisions include the following: 3 1. Amends Section 1007.044 (3) h. to clarify requirements for surfacing of driveways. (Applies to all driveways and parking areas). Driveway must be hard surfaced unless property is 1 acre in size or greater. 2. Provides for a construction of a 3,200 square foot hangar at both private airports. The current ordinance only applies to Lino Airpark. 3. Allows for a 3 foot side yard driveway setback. Encroachment into the setback is allowed as a shared driveway with an access and maintenance agreement with abutting property owners. 4. Allows for improvements within drainage easement subject to City Engineer approval. The property owner is responsible for any removal costs. 5. Allows for a secondary access if principal driveway cannot be extended or expanded without encroachment into setback, abutting property or prohibited areas of front yard. 6. The allowable Maximum Impervious Surface percentage is increased to 65%. 7. Deletes the existing hangar provisions in Section 1007.043(4)(i)4.h. RECOMMENDATION The Planning & Zoning Board held a public hearing on May 9, 2018. Representatives of both Lino Air Park and Surf Side Seaplane base spoke in favor of the ordinance. The Board voted 6- 0 in favor of adopting the proposed amendment. . Staff is recommending approval of the 1st Reading of Ordinance No. 07-18 ATTACHMENTS 1. Ordinance No. 07-18. 1st Reading: Publication: 2nd Reading: Effective: CITY OF LINO LAKES ORDINANCE NO. 07-18 AN ORDINANCE AMENDING CITY CODE SECTION 1007 RELATED TO DRIVEWAY SURFACING AND AIRPLANE HANGAR AND ACCESS PERFORMANCE STANDARDS The City Council of Lino Lakes ordains: Section 1. Findings. The City Council finds that private airfields within the city are an existing land use supported in the City’s Comprehensive Plan. The development of performance standards for driveway surfacing, hanger construction and hangar access are in the best interests of the city to ensure safe operation and continued compatibility with adjacent land uses. Section 2. Amendment. Lino Lakes City Code Chapter 1007.043(4)(i)4.h. is hereby repealed as set forth below: 1007.043, (4)(i)4.h. Lots that have shared ownership/membership in the Lino Airpark may have a three thousand two hundred (3,200) square foot accessory building as an airplane hangar provided that: i. The hangar be earth tone in color. ii. The hangar conform to Building Code standards for hangar use. iii. The hangar location has direct taxiway access to the Lino Airpark runway. Section 3. Amendment. Lino Lakes City Code Chapter 1007.044(3)(h) is hereby amended as set forth below to include the following: 16. All driveways, approaches, sales lots, and parking areas, shall be hard surfaced using concrete, asphalt or equivalent paving materials as approved by the city engineer. a. In Commercial, Industrial and Public and Semi-public zoning districts the city may allow up to 25 percent of the required parking stalls be provided as green parking with a turf surface supported by a city approved parking lot sub-base and a turf-guard fabric. b. In Rural and Residential zoning districts, on lots one acre in size or greater, driveways, approaches, and parking areas shall be surfaced with asphalt, concrete, class 5 gravel or other surfacing material as may be approved by the City Engineer. Section 4. Amendment. Lino Lakes City Code Chapter 1007.044(11)(a) 1. is hereby amended as set forth below to include the following: 1. They are parked on an appropriate surface. Appropriate surface shall include asphalt, concrete, pavers, and environmentally conscious materials when approved by the city engineer. On properties over one acres in size, appropriate surface may also include rock or stone, when approved by the city engineer. in compliance with Section 1007.044(3)(h)16. Section 5. Amendment. Lino Lakes City Code Chapter 1007 is hereby amended as set forth below to include the following: 1007.057. AIR PARK HANGAR AND ACCESS PERFORMANCE STANDARDS (1) Purpose. The purpose of this section is to provide standards for the size of airplane hangars and access to airplane hangars constructed on single family lots that have taxiway access to an approved private use airport. (2) Definitions. The following definitions apply to this section: Air Park. A residential subdivision with permitted access to a private use airport. Airplane Hangar. An accessory building constructed on a single family lot where aircraft are stored. Such use is considered a residential accessory use incidental to the dwelling. Single Family Lot. A parcel of record or platted parcel containing a single family detached dwelling. (3) General Standards. The following standards shall apply to all air park single family lots: (a) Airplane Hangar. Air Park lots may have one airplane hangar not exceeding 3,200 square feet, provided that: a. The airplane hangar location has direct taxiway access to the runway. b. The airplane hangar be earth tone in color. (b) Driveways shall not be constructed closer than three feet to the property line. Exception. Encroachment into the three foot setback may be allowed for purposes of constructing a shared driveway with the abutting property owner provided that any shared driveway shall include a maintenance and access agreement executed by each property owner and recorded against each property with Anoka County. (c) The plans for driveways proposed to be placed within a drainage and utility easement must meet drainage requirements and be approved by the City Engineer prior to construction. Driveways placed within a drainage and utility easement are placed, by the owner, at the owner's risk of removal by the City or other agencies that may have legal use of the easement. Replacement of driveways removed for drainage or utility work shall be at the owner’s expense. (d) All driveways and approaches shall be hard surfaced in accordance with Section 1007.044(3)(h)16. (e) An air park single family lot may have one secondary public street driveway access subject to approval of the City Engineer and the following conditions: 1. The property owner demonstrates that the principal driveway access serving the single family dwelling cannot be extended or expanded to serve an airplane hangar without encroaching into required setbacks or abutting property or without violating section 1007.044(5)(g). 2. Secondary driveway width shall not exceed 12 feet. 3. No secondary driveway shall be within three feet of the property line unless a shared driveway access and maintenance agreement is executed by each property owner and recorded against each property with Anoka County. (f) Impervious Surface Coverage Area. The impervious surface of the property shall not exceed 65%. (g) All other provisions of Chapter 1007 and the City Code shall be applicable to the extent not in conflict with this section. Section 6. Effective Date. This Ordinance shall be effective from and after its passage and publication according to the Lino Lakes City Charter. Adopted by the Lino Lakes City Council this 11th day of June, 2018. The motion for the adoption of the foregoing ordinance was introduced by Council Member_____________and was duly seconded by Council Member ___________ and upon vote being taken thereon, the following voted in favor thereof: The following voted against same: ____________________________ Jeff Reinert, Mayor ATTEST: ________________________ Julianne Bartell, City Clerk