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HomeMy WebLinkAbout05/29/2012 Council PacketEXPANDED AGENDA CITY COUNCIL AGENDA Tuesday, May 29, 2012 6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council: Mayor Reinert, Council Members O'Donnell, Roeser, Rafferty & Stoesz City Administrator: Jeff Karlson COUNCIL WORK SESSION, 5:30 P.11 Community Room (not televised) 1. Presentation of 2011 Audit Report 2. Revised Personnel Policy 3. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P 1I. ➢ Call to Order — 6:30 p.m. ➢ Roll Call - Council Members Stoesz, O'Donnell, Roeser & Rafferty, 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. CONSENT AGENDA A) Consideration of Expenditures: i) May 29, 2012 (Check No. 93341 through 93432) in the amount of $215,537.75; ii) Centennial Fire District (Check No. 5312, 5321 through 5355) in the amount of $85,993.95 Pg 1 -14 B) Consider approval of May 7, 2012 Work Session Minutes Pg 15 -19 C) Consider approval of May 144 2012 Council Meeting Minutes Action Taken: Motion by XX, seconded by XX, to approve the Consent Agenda, Items 1A through 1C, as presented, was adopted Pg 20 -23 N CE DEPARTMENT REPO A) Consider Accepting 2011 Annual Audit Report, CliftonLarsonAllen LLP, Al Rolek Action Taken: Motion by-XX, seconded by , to accept the Audit Report as presented, was adopted Pg 24 Council Agenda -2- EXPANDED AGENDA May 29, 2012 ADMINISTRATION DEPARTMENT REPORT A) Consider Approving M 012 P-rsonnel Policy, Jeff Karlson Pg 25 -83 Action Taken: Motion by :'4 , seconded by XX, to approve the Personnel Policy as, rese u` d, was adopted B) Consider Resolution No. 12 -39, Authorizing issuance of a special event permit for the Lino Lakes YMCA Farmers Market, Julie Bartell DIL Action Taken: Motion by XX, seconded by XX, to approve Resolution No. 12 -39 as presented, was adopted Pg 84 -85 PUBLIC SAFETY DEPARTMENT REPORT A) Drivers Diversion Program Update, John Swenson Action Taken: Motion : , seconded by XX, to receive and file the program up' : te, , as adopted PUBLIC SERVICES DEPARTMENT REPORT No report ITY DEVELOPMENT REPORT Consider Resolution No. 12 -44, Accepting Donations from Brian Haglund and Casey Block of the Blaine Jaycees for Blue Heron Days events and Blue Heron Rookery Management, A) Mary Alice Divine Action Taken: Motion by XX, seconded by XX, to approve Resolution No. 12 -44 as presented, was adopted `r V UNFINISHED BUSINESS None Pg 86 -88 Pg 89 -90 US ES Adjournment None 11- 10- Thursday, May 31 Monday, June 4 Monday, June 4 Thursday, June 7 Monday, June 11 Community Calendar — A Look Ahead May 29, 2012 through June 11, 2012 6:30 pm, Community Room 6:30 pm, Council Chambers 5:30 pm, Community Room 8:00 am, Community Room 6:30 pm, Council Chambers Special Charter Comm Park Board Council Work Session EDAC City Council Meeting k, Sc tSl6n 5- _2ot_LZ 3 o ( 130 - JC3�sPri2 Gut,tz,„ e:(J L(Lc.t.. 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LQ cii et-i,4- _AA, GL cc 2- 4 .Q - K Q. frJ % Q o � ci - � n V..CC, kJl 3IAA t (,t di20-0 at _ d , Za o a -fv I✓u l to J _ o t [4 „ £_ ` ___12--c- 41) D/L att /;a3 l„ Kg- DC Roll Call Date Us Zie 21 2_0 Roll Call Date Yea Yea Nay Abstain Absent Rob Rafferty f Jeff O'Donnell Jeff O'Donnell f Dave Roeser Dave Roeser Dale Stoesz Dale Stoesz Mayor Jeff Reinert Mayor Jeff Reinert Total Roll Call Date Roll Call Date Yea Nay Abstain Absent Rob Rafferty Jeff O'Donnell Dave Roeser Dale Stoesz Mayor Jeff Reinert Total Roll Call Date Yea Nay Abstain Absent Rob Rafferty Jeff O'Donnell Dave Roeser Dale Stoesz Mayor Jeff Reinert Total EXPANDED AGENDA CITY COUNCIL AGENDA Tuesday, May 29, 2012 6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council: Mayor Reinert, Council Members O'Donnell, Roeser, Rafferty & Stoesz City Administrator: Jeff Karlson COUNCIL WORK SESSION, 5:30 P.M. Community Room (not televised) 1. Presentation of Olt Audit Report 2. Revised Personnel Policy 3. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. ➢ Call to Order — 6:30 p.m. ➢ Roll Call - Council Members Stoesz, O'Donnell, Roeser & Rafferty, 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 amended to remove Item 3A (to be discussed at next work session) CONSENT AGENDA A) Consideration of Expenditures: i) May 29, 2012 (Check No. 93341 through 93432) in the amount of $215,537.75; ii) Centennial Fire District (Check No. 5312, 5321 through 5355) in the amount of $85,993.95 Pg 1 -14 B) Consider approval of May 7, 2012 Work Session Minutes Pg 15 -19 C) Consider approval of May 14, 2012 Council Meeting Minutes Pg 20 -23 Action Taken: Motion by Rafferty, seconded by Stoesz, to approve the Consent Agenda, Items 1A through 1C, as presented, was adopted Council Agenda -2- May 29, 2012 EXPANDED AGENDA 2. FINANCE DEPARTMENT REPORT A) Consider Accepting 2011 Annual Audit Report, CliftonLarsonAllen LLP, Al Rolek Action Taken: Motion by O'Donnell, seconded by Roeser, to accept the Audit Report as presented, was adopted Pg 24 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Approving May 2012 Personnel Policy, Jeff Karlson Pg 25 83 Removed from agenda (to be discussed at next work session) B) Consider Resolution No. 12 -39, Authorize issuance of a special Pg 84 -85 event permit for Lino Lakes YMCA Farmers Market, Julie Bartell Action Taken: Motion by Roeser, seconded by Rafferty, to approve Resolution No. 12 -39 as presented, was adopted 4. PUBLIC SAFETY DEPARTMENT REPORT A) Drivers Diversion Program Update, John Swenson No action requested PUBLIC SERVICES DEPARTMENT REPORT No report Pg 86 -88 COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 12 -44, Accepting Donations from Brian Pg 89 -90 Haglund and Casey Block of the Blaine Jaycees for Blue Heron Days events & Blue Heron Rookery Management, Mary Alice Divine Action Taken: Motion by Rafferty, seconded by Roeser, to approve Resolution No. 12 -44 as presented, was adopted . UNFINISHED BUSINESS None 8. NEW BUSINESS Adjournment None Meeting was adjourned at 7:03 p.m. . Thursday, May 31 ▪ Monday, June 4 4. Monday, June 4 A6- Thursday, June 7 • Monday, June 11 Community Calendar — A Look Ahead May 29, 2012 through June 11, 2012 6:30 pm, Community Room 6:30 pm, Council Chambers 5:30 pm, Community Room 8:00 am, Community Room 6:30 pm, Council Chambers Special Charter Comm Park Board Council Work Session EDAC City Council Meeting • • • CITY COUNCIL AGENDA Tuesday, May 29, 2012 * * * * * * * * * ** 6:30 p.m. (Scheduled to be broadcast on Channel 16) City Council: Mayor Reinert, Council Members O'Donnell, Roeser, Rafferty & Stoesz City Administrator: Jeff Karlson COUNCIL WORK SESSION, 5:30 P.M. Community Room (not televised) 1. Presentation of 2011 Audit Report 2. Revised Personnel Policy 3. Review Regular Agenda CITY COUNCIL MEETING, 6:30 P.M. ➢ Call to Order and Roll Call ➢ Pledge of Allegiance ➢ Open Mike / Public Comment ➢ Setting the Agenda: Addition or deletion of agenda items 1. CONSENT AGENDA A) Consideration of Expenditures: i) May 29, 2012 (Check No. 93341 through 93432) in the amount of $215,537.75; ii) Centennial Fire District (Check No. 5312, 5321 through 5355) in the amount of $85,993.95 Pg 1 -14 B) Consider approval of May 7, 2012 Work Session Minutes Pg 15 -19 C) Consider approval of May 14, 2012 Council Meeting Minutes Pg 20 -23 2. FINANCE DEPARTMENT REPORT A) Consider Accepting 2011 Annual Audit Report, CliftonLarsonAllen LLP, Al Rolek Pg 24 Council Agenda -2- May 29, 2012 3. ADMINISTRATION DEPARTMENT REPORT A) Consider Approving May 2012 Personnel Policy, Jeff Karlson Pg 25 -83 B) Consider Resolution No. 12 -39, Authorizing issuance of a special event permit for the Lino Lakes YMCA Farmers Market, Julie Bartell 4. PUBLIC SAFETY DEPARTMENT REPORT A) Drivers Diversion Program Update, John Swenson 5. PUBLIC SERVICES DEPARTMENT REPORT No report Pg 84 -85 Pg 86 -88 6. COMMUNITY DEVELOPMENT REPORT A) Consider Resolution No. 12 -44, Accepting Donations from Brian Haglund and Casey Block of the Blaine Jaycees for Blue Heron Days events and Blue Heron Rookery Management, Mary Alice Divine 7. UNFINISHED BUSINESS None 8. NEW BUSINESS None Pg 89 -90 Adjournment 4, Thursday, May 31 d. Monday, June 4 d. Monday, June 4 II. Thursday, June 7 +16. Monday, June 11 Community Calendar — A Look Ahead May 29, 2012 through June 11, 2012 6:30 pm, Community Room 6:30 pm, Council Chambers 5:30 pm, Community Room 8:00 am, Community Room 6:30 pm, Council Chambers Special Charter Comm Park Board Council Work Session EDAC City Council Meeting • • • • WS — Item 2 WORK SESSION STAFF REPORT Work Session Item No. 2 Date: May 29, 2012 To: City Council From: Jeff Karlson, City Administrator Re: Revised Personnel Policy Background During the May 7 work session, the Council provided comments on the revised Personnel Policy. After receiving feedback from the Council, staff revised the following policies: (1) Section 7.1, Tuition Reimbursement; and (2) Section 8.11, Computer Use Policy. The revised policies are attached for your review. If there are no further changes, I will be asking the Council to adopt the May 2012 Personnel Policy at the May 29 Council meeting. After the Personnel Policy is approved, I will be conducting a series of meeting with City staff to go over the updates. 7.1 Tuition Reimbursement The City provides financial support to employees for educational courses taken at accredited academic institutions to enhance their professional development and to improve their job skills. This policy is an IRS tax - exempt program. Full -time, non - probationary employees are eligible for this program. Eligibility for reimbursement of courses will be based on relevancy to the employee's current position and the availability of budgeted funds. The City may reimburse eligible employees upon presentation of the final grades in accordance with the following schedule: Grade of "A" 75% of tuition Grade of "B" 75% of tuition Grade of "C" 75% of tuition Grade of "D" 0% of tuition Grade of "F" 0% of tuition Grade of Pass or Fail 75% of tuition for "passing" In the event that an eligible employee receives a grade of "incomplete," no refund will be forthcoming until a final grade is earned. When the requisite course is completed and a final grade is issued, the employee will be reimbursed in accordance with the above schedule. A maximum of $3,750 per calendar year will be reimbursed for tuition only. Charges for textbooks, school supplies, activity fees, or other costs are not reimbursable. As a condition of this program, the employee must agree to pay back 100% of the amount reimbursed for the 12 -month period preceding the employee's termination date if the employee voluntarily resigns his/her position with the City of Lino Lakes. Eligible employees who receive assistance from other sources are eligible for reimbursement only if the cost of the tuition exceeds the amount of assistance received. No reimbursement will be made without prior approval from the employee's department director and the City Administrator. • • • • 8.11 Computer Use Policy A. Purpose and Scope This policy serves to protect the security and integrity of the City's electronic communications and information systems by educating employees about appropriate and safe use of technology resources. This policy applies to all individuals granted access to the City's network and information systems. This policy includes all City -owned computers (e.g. desktops and notebooks), as well as those connected to the City's network. B. Securing Desktop and Notebook Computers 1. Users will ensure reasonable physical safeguards to maintain desktop and notebook computer and peripheral equipment in such a way to avoid inadvertent disclosure of City information. 2. When leaving a desktop or notebook computer unattended, users shall apply the "Lock Workstation" feature where systems allow. 3. Unattended computers shall be secured from viewing by password protected screen savers, which should be set to automatically activate after a period of non -use. The period of non -use shall be for no more than 60 minutes. 4. Desktop computer users will store confidential and sensitive information on a network drive (shared directory on the City network) and not the user's hard drive. 5. Computers and monitors shall be turned off at the end of each workday unless you are instructed otherwise. 6. Additional security requirements may be required for computers containing data governed by other applicable state and federal laws, including law enforcement data and data associated with the Health Insurance Portability and Accountability Act (HIPAA). C. Physical Security Measures Physical security measures will be used to secure notebooks, computer media, and other forms of information storage media containing confidential or sensitive information. 1. Mobile notebook computers actively connected to the network or information systems must not be left unattended. 2. Notebook computers left in a vehicle shall not be visible except in police, utility department, or fire emergency vehicles where the device is mounted to the vehicle console. If possible, the notebook should be stored in a locked trunk. Weather conditions should be considered when leaving electronic equipment in a vehicle for long periods of time. Unattended vehicles shall be locked at all times. 1 3. Mobile notebook computers, computer media, and any other forms of removable storage should be stored in a secure location. 4. Other information storage media containing confidential data shall be stored in a secure location or locked cabinet when not in use. D. Peripheral Equipment Peripheral equipment (e.g. printers, faxes, copiers) that store, produce, and transfer or sensitive information, shall be protected from inadvertent or unauthorized access. Documents containing confidential or sensitive information should be cleared from printers and copiers immediately. E. Passwords User identification (name) and authentication (password) shall be required to access the operating system of all desktop and notebook computers. Employees may not share account or password information with another person. Internet accounts are to be used only by the assigned use of the account for authorized purposes. Attempting to obtain another user's password is strictly prohibited. Users are required to change or obtain a new password if they have reason to believe that any unauthorized person has obtained their password. Users are required to take all necessary precautions to prevent unauthorized access to Internet services. Supervisors are required to report immediately to IT staff when an employee resigns or is terminated. Employees are required to contact IT staff when they suspect their login ID has been compromised or when someone else has obtained their password. Employees are responsible for maintaining computer passwords by following these guidelines: Passwords must be a minimum of eight alphanumeric characters in length and be "complex." For a password to be complex it must contain three of the following four categories: English upper case letters, English lower case letters, numbers, or non- alphabetic characters found on the keyboard (e.g. !, #, $, %). • Passwords should not be stored in any location on or near your computer. • The computer system will prompt employees to update passwords every 90 days. • A password cannot be reused until after 10 change cycles. Password protection of any document is prohibited unless authorized by IT staff and the appropriate department director. This applies to any document stored on any drive (local or network), which includes diskettes, CDs, DVDs, flash drives, or any other storage device owned by the City. Any document found with unauthorized password protection will be deleted. confidential 2 • • • • • • F. Unauthorized Software Individual users are prohibited from installing or downloading software applications or executable files to any City -owned computer without prior authorization from IT staff. G. Viruses Desktop and notebook computer users shall not write, compile, copy, knowingly propagate, execute, or attempt to introduce any computer code designed to self - replicate, damage, or otherwise hinder the performance of any computer system. Suspected viruses should be reported immediately to IT staff. Viruses shall not be deleted without assistance unless instructed by IT staff. H. Monitoring The City of Lino Lakes reserves the right to inspect any data, emails, settings, or any other components of a City -owned computer at any time without an employee's consent. By using a City -owned computer, employees consent to any monitoring that may take place. An audit may result in the removal of hardware and software and further disciplinary action if any user is not complying with this policy. I. No Expectation of Privacy All technology systems are the property of the City of Lino Lakes. This includes, but is not limited to, all hardware, software, programs, applications, templates, documents, internal and external email messages, internet logs, and data files developed or stored by City -owned or leased technology systems. The City reserves the right to access and retrieve any data, messages, or files without prior employee consent. Users should have no expectation of privacy in the use of City technology. This includes personal email messages and Internet logs. J. Licensing To ensure license compliancy, all software must be purchased by and licensed to the City. 1. Development. Any software programs developed for use by the City becomes the property of the City. Software programs may not be sold or distributed without prior approval. 2. City -Owned Software. City -owned software may not be loaded on non -City owned equipment without prior approval. 3. Copyright Laws. City users are required to abide by software copyright law and licensing agreements. If there is any question about the legality of the software and documentation, it should be directed to IT staff. 3 K. Electronic Mail The City provides employees with individual email accounts for work - related use. Employees are encouraged to use email to further the goals and objectives of the City. An employee's personal email may be considered "public" data and may not be protected by privacy laws. Personal email may also be monitored without notice to the employee. All email messages will be deleted from the electronic mail system 120 days after receipt. If retention of any message is warranted beyond that period, the message should be moved to a permanent storage area. The following policies pertain to emails of both business and personal content: • Use extreme caution when communicating confidential or sensitive information via email. A good rule is to not communicate anything that you would not feel comfortable being made public. • Do not correspond by email on confidential communications (e.g., letters of reprimands, correspondence with attorneys, medical information). • Do not open email attachments or links from an unknown sender. Attachments are the primary source of computer viruses and should be treated with extreme caution. Delete junk or "spam" email without opening it if possible. L. Internet Use The City provides Internet access for employees to acquire and share information and to participate in educational and professional development activities. Employees should minimize unnecessary network traffic that might interfere with the ability of others to make effective use of this shared network resource. Use of the Internet through City computers is a privilege which may be revoked at any time for abusive conduct. Users are responsible for adhering to this policy when accessing the Internet. Failure to adhere to this policy puts the City and the individual at risk for legal and financial liabilities, potential embarrassment, and other consequences. The City retains the right to monitor any employee's use of the Internet without prior notice. The City may limit Internet activity in order to ensure the most efficient use of this resource. M. Inappropriate Use of Email and the Internet Use of the Internet and email in a manner that is not consistent with the mission of the City, misrepresents the City, or violates any City policy, is strictly prohibited. Email and Internet use at the City shall comply with all federal and state laws, City policies, and any contract. 4 • • • • • • The City allows limited personal use of email and Internet resources for communicating with family and friends, independent learning, and public service as long as it does not interfere with staff productivity, preempt City business, or consume City resources. The City prohibits the use of mass unsolicited mailings, access for non - employees to City resources or network facilities, competitive commercial activity, and the dissemination of chain letters. N. Failure to Comply Violations of this policy will be treated like other allegations of wrongdoing in the City in accordance with established procedures. Violations of this policy may subject the violator to one or more of the following: • Temporary or permanent revocation of network access and other equipment access. • Termination of employment. • Legal action according to applicable laws and contractual agreements. Revised: May 15, 2012 5 • • EXPENDITURES MAY 29, 2012 CHECK NO. 93341 - 93432 $215,537.75 P1 DRc2: 05/21/2012 Time 09:34:57 Ranges: Vendor #: (A) Invoice #: (A) Entry Journal #: (R) 10238 - 10257 Trans #: (A) Line #: (A) Due Date: (A) Bank #: (A) City of Lino Lakes FM Entry - Invoice Journal Operator: KKF Page: 1 Options: Detail / Summary: S Invoice Status: A # of copies: 1 Sort: A Check Over Expend: N Discount Vendor # Name # of items Net Gross Discount Lost 000080 ABLE HOSE AND RUBBER, INC. 1 333.11 333.11 .00 .00 000408 AFSCME COUNCIL #5 1 723.49 723.49 .00 .00 000100 AID ELECTRIC CORPORATION 4 1,930.65 1,930.65 .00 .00 000210 AMERICAN FASTENER & SUPPLY, INC. 2 169.46 169.46 .00 .00 000318 AMERIPRIDE LINEN /APPAREL SERVICES, INC. 1 149.89 149.89 .00 .00 007765 ANOKA COUNTY - ES 1 100.00 100.00 .00 .00 000370 ANOKA COUNTY CENTRAL COMMICATIONS 2 496.34 496.34 .00 .00 000420 ANOKA COUNTY PROPERTY RECORDS & TAXATION 1 155.30 155.30 .00 .00 000541 ASPEN MILLS, INC. 2 163.65 163.65 .00 .00 000610 'BAUER BUILT, INC. 1 189.00 189.00 .00 .00 000861 BEE LINE ALIGNMENT SERVICE 1 476.16 476.16 .00 .00 008293 BIFF'S INC. 1 475.37 475.37 .00 000724 BLUE TOW SERVICE, INC. 1 132.88 132.88 .00 008391 BOB BLUM 1 5.00 5.00 .00 .00 000833 BROCK WHITE COMPANY, LLC 1 360.98 360.98 .00 .00 000946 C. P. OFFICE PRODUCTS 1 91.96 91.96 .00 .00 000950 C. W. HOUI,E, INC. 1 612.50 612.50 .00 .00 001050 CENTENNIAL SCHOOLS ISD #12 2 2,448.00 2,448.00 .00 .00 001110 CENTENNIAL UTILITIES 1 1,557.92 1,557.92 .00 .00 007776 CENTURYLINK 1 52.39 52.39 .00 .00 004670 COMCAST 1 84.90 84.90 .00 .00 008588 CONCRETE YARD ORNAMENTS 1 720.00 720.00 .00 .00 • Date: 05/21/2012 Time 09:34:57 City of Lino Lakes FM Entry - Invoice Journal Operator: KKF Page:P 32 Discount �dor # Name # of items Net Gross Discount Lost 001187 CONNEXUS ENERGY 1 3,607.26 3,607.26 .00 .00 008589 CRIME REPORTS 1 7,832.64 7,832.64 .00 .00 001270 DALCO, INC. 1 20.21 20.21 .00 .00 001349 E. H. RENNER & SONS, INC. 1 450.00 450.00 .00 .00 001267 FAST BREAK CORNER MARKET, INC. 1 12.79 12.79 .00 .00 001528 MARY FOGARTY 1 12.95 12.95 .00 .00 001559 LINDA FRANCIS 1 619.18 619.18 .00 .00 001560 FRATTALLONE'S HARDWARE, INC. 1 16.01 16.01 .00 .00 008044 FREIMUTH ENTERPRISES, LLC 1 2,933.00 2,933.00 .00 .00 008587 KRISTINA GETSCHEL 1 10.00 10.00 .00 .00 007982 GOLD STAR AUTO BODY & FRAME 2 1,855.64 1,855.64 .00 .00 008240 GOPHER STATE ONE -CALL 1 568.60 568.60 .00 .00 005005 GREEN LIGHTS RECYCLING, INC. 1 64.05 64.05 .00 .00 001480 HAWKINS, INC. 1 70.00 70.00 .00 .00 004562 HD SUPPLY WATERWORKS, LTD. 2 11,756.25 11,756.25 .00 .00 008401 JANINE HEGGESTAD 1 30.00 30.00 .00 .00 •224 HUGO EQUIPMENT COMPANY 3 63.39 63.39 .00 .00 000303 INSTRUMENTAL RESEARCH, INC. 1 142.50 142.50 .00 .00 008394 JANI -KING OF MINNESOTA, INC. 2 3,624.13 3,624.13 .00 .00 007928 JONES, SHANNON G. 1 120.00 120.00 .00 .00 008221 JEFFREY KARLSON 1 290.31 290.31 .00 .00 001940 KEEPRS, INC. 1 10.69 10.69 .D0 .00 001860 KENNEDY & GRAVEN, INC. 1 3,740.61 3,740.61 .00 .00 008574 MARYANNE KUPPERSCHMIDT 1 38.00 38.00 .00 .00 002208 LAW ENFORCEMENT LABOR SERVICES, INC. 1 966.00 966.00 .00 .00 008123 LUBRICATION TECHNOLOGIES, INC. 2 8,708.07 8,708.07 .00 .00 000274 LYNN PEAVEY COMPANY 1 143.50 143.50 .D0 .00 • DP: 05/21/2012 Time 09:34:58 City of Lino Lakes FM Entry - Invoice Journal Operator: KKF Page: 3 Discount Vendor # Name # of items Net Gross Discount Lost 008509 MARGOLIS COMPANY 3 7,939.88 7,939.88 .00 007370 MARTY LAW FIRM, LLC 1 303.05 303.05 .00 .00 002550 MENARDS, INC. 2 57.95 57.95 .00 .00 002584 METRO SALES INCORPORATED 1 98.00 98.00 .00 .00 007694 METROPOLITAN COUNCIL 1 57,077.74 57,077.74 .00 .00 008591 MILLER'S CROSSROAD VILLA HOA 1 50.00 50.00 .00 .00 008205 MN BCA CRIMINAL JUSTICE TRNG & ED 1 225.00 225.00 .00 .00 002931 MN CHILD SUPPORT PAYMENT CENTER 3 1,029.66 1,029.66 .00 .00 008593 ROBERT MUELLER 1 2,450.00 2,450.00 .00 .00 004791 NAC MECHANICAL& ELECTRICAL SERVICES 1 979.01 979.01 .00 .00 007755 NELSON AUTO CENTER 2 51,201.43 51,201.43 .00 .00 003180 NEWMAN TRAFFIC SIGNS, INC. 1 196.22 196.22 .00 .00 000900 O'REILLY AUTOMOTIVE STORES, INC. 10 190.80 190.80 .00 .00 007705 OLSEN COMPANIES 2 1,294.60 1,294.60 .00 .00 003443 OTTER LAKE ANIMAL CARE CENTER, INC. 1 191.76 191.76 .00 .00 008592 HEATH PADDOCK 1 2,463.30 2,463.30 .00 .00 008247 PARK BUS COMPANY 1 587.50 587.50 .00 411 008242 KAY PETERSON 1 38.00 38.00 .00 008545 PRIMARY PRODUCTS COMPANY 1 65.39 65.39 .00 .00 007478 RECREATION, SPORTS & PLAY, INC. 1 271.46 271.46 .00 .00 000405 LESTER RYDEEN 1 166.76 166.76 .00 .00 008590 S K MASONRY INC 1 70.00 70.00 .00 .00 008390 CONNIE SCHMIDT 1 2.00 2.00 .00 .00 003974 SENSUS USA 1 1,524.60 1,524.60 .00 .00 000118 SNAP -ON INDUSTRIAL, INC. 2 1,189.16 1,189.16 .00 .00 008142 STAPLES ADVANTAGE 1 187.27 187.27 .00 .00 000365 STAPLES ADVANTAGE 3 1,432.73 1,432.73 .00 .00 • Date: 05/21/2012 Time: 09:34:58 City of Lino Lakes Operator: KKF Page:P 54 FM Entry - Invoice Journal Discount # Name # of items Net Gross Discount Lost 004240 STREICHER'S, INC. 1 144.27 144.27 .D0 .00 004340 T.A. SCHIFSKY AND SONS, INC. 2 4,606.52 4,606.52 .00 .00 000489 TDS METROCOM MN 1 992.70 992.70 .00 .00 004350 TKDA 1 70.79 70.79 .00 .00 004469 TOUSLEY FORD, INC. 5 177.12 177.12 .00 .00 007721 TRI -STATE BOBCAT, INC. 1 1,851.58 1,851.58 .00 .00 000147 TRICIA HAYNES 1 1,125.00 1,125.00 .00 .00 004560 U S BANK VISA 1 9,112.25 9,112.25 .00 .00 004730 VIKING INDUSTRIAL CENTER, INC. 1 522.49 522.49 .00 .00 004836 SANDIE WOOD 1 82.25 82.25 .00 .00 900479 'WRIGHT COUNTY HUMAN SERVICES AGENCY 1 128.28 128.28 .00 .00 003250 XCEL ENERGY 1 6,239.20 6,239.20 .00 .00 004880 ZACK'S INC. MUN. INDUS. SUP 1 67.30 67.30 .00 .00 Grand Totals: 126 215,537.75 215,537.75 .00 .00* • • DNB: 05/21/2012 Time: 09:36:38 Operator: KKF Ranges: Page: 1 City of Lino Lakes FM Entry - Invoice Payment - Department Report Fund: (A) Dept Id: (A) Program: (A) Vendor #: (A) Invoice #: (A) Schedule Journal #: (R) 10239 10258 Bank #: (A) Options: Print Ranges /Options: Y # of copies: 1 Page on Department: N Department Vendor Name Description Amount AFSCME COUNCIL #5 MAY 2012 UNION DUES 723.49 LAW ENFORCEMENT LABO MAY 2012 UNION DUE 966.00 MN CHILD SUPPORT PAY CHILD SUPPORT 1,029.66 WRIGHT COUNTY HUMAN CHILD SUPPORT 128.28 Total for Department 2,847.43* ADMINISTRATION U S BANK VISA MCMA ANNUAL SPRING CONFE 239.61 ADMINISTRATION KARLSON, JEFFREY MCMA, BOOK, PARKING, MEA 290.31 Total for Department 402 529.92* CHARTER MARTY LAW FIRM, LLC CHARTER AMENDMENT BALLOT 303.05 Total for Department 405 303.05* LEGAL CONSULTANTS KENNEDY & GRAVEN, IN PROFESSIONAL SERVICES 3,641.01 Total for Department 414 3,641.01* ECONOMIC DEVELOPMENT U S BANK VISA 8TH ANNUAL LAND DEVELOP 79.00 ECONOMIC DEVELOPMENT U S BANK VISA EDAC MTG SUPPLIES 14.18 Total for Department 415 93.18* PLANNING & ZONING U S BANK VISA MN GTS REGISTRATION 60.00 PLANNING & ZONING U S BANK VISA MN GTS REGISTRATION CRED -30.00 Total for Department 416 30.00* COMM DEV U S BANK VISA 8TH ANNUAL LAND DEVELOP 79.00 Total for Department 418 79.00* POLICE AID ELECTRIC CORPORA 7 CIVIL SIREN INSPECTION 631.50 POLICE LYNN PEAVEY COMPANY DGKT SK TES /TUBE /1.5X1.5 143.50 POLICE STAPLES BUSINESS ADV DELL 3000CN MAGENT INK C 75.87 POLICE STAPLES BUSINESS ADV OFFICE SUPPLIES 1,356.86 POLICE ANOKA COUNTY CENTRAL APRIL 2012 WIRELESS ACCE 442.34 POLICE ANOKA COUNTY CENTRAL MONTHLY 800 MHz RADIO SY 54.00 POLICE TDS METROCOM MN MONTHLY PHONE CHARGES 682.30 POLICE ASPEN MILLS, INC. M PAULSON UNIFORM ALLOWA 58.80 POLICE ASPEN MILLS, INC. T PETERSON UNIFORM ALLOW 104.85 POLICE CONNEXUS ENERGY MONTHLY ENERGY CHARGES 21.37 POLICE KEEPRS, INC. REPATCH 10.69 POLICE METRO SALES INCORPOR COPIER MAINTENANCE CONTR 98.00 POLICE OTTER LAKE ANIMAL CA CITY BOARDING /IMPOUND FE 191.76 • • • Date: 05/21/2012 Time: 09:36:38 Operator: KKF department Page: 2 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount POLICE POLICE POLICE POLICE STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS STREETS FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET FLEET • STREICHER'S, INC. U S BANK VISA MN BCA PRIMARY PRODUCTS COM Total for D D THILL UNIFORM ALLOWANC 144.27 J SWENSON UNIFORM ALLOWA 84.99 SCHIRMERS -CRIME SCENE CO 225.00 NITRILE GLOVES /PURELL HA 65.39 epartment 420 4,391.49* TDS METROCOM MN BROCK WHITE COMPANY, CONNEXUS ENERGY MENARDS, INC. NEWMAN TRAFFIC SIGNS XCEL ENERGY T.A. SCHIFSKY AND SO T.A. SCHIFSKY AND SO TKDA VIKING INDUSTRIAL CE OLSEN COMPANIES OLSEN COMPANIES ANOKA COUNTY - ES CENTURYLINK Total for Department 430 MONTHLY PHONE CHARGES 36.73 SAKRETE CONCRETE 180.49 MONTHLY ENERGY CHARGES 1,241.45 CEMENT MIX FOR CURB REPA 30.47 SIGNS 196.22 MONTHLY ELECTRIC CHARGES 222.28 AC FINE & MODIFIED ASPHA 2,305.13 AC MODIFIED ASPHALT 2,301.39 OTTER LAKE SVC RD CULVER 70.79 VESTS W /ZIPPER 174.17 SOSC CHAIN SLING /4 TON W 180.83 STD LIFT BEAM 466.48 CLASS 1 USED OIL 100.00 SIGNAL PHONE 52.39 7,558.82* ABLE HOSE AND RUBBER ABLE HOSE AND RUBBER ABLE HOSE AND RUBBER ABLE HOSE AND RUBBER SNAP -ON INDUSTRIAL, SNAP -ON INDUSTRIAL, AMERICAN FASTENER & AMERICAN FASTENER & BAUER BUILT, INC. BEE LINE ALIGNMENT S O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE O'REILLY AUTOMOTIVE FAST BREAK CORNER MA MENARDS, INC. TOUSLEY FORD, INC. TOUSLEY FORD, INC. TOUSLEY FORD, INC. TOUSLEY FORD, INC. TOUSLEY FORD, INC. U S BANK VISA WOOD, SANDIE #208 4" LONG W/0 TIP BLO 16.37 F6 FASTLOK CLAMP 9.23 RED JH HOSE UNIXUNI 120.48 T300 BANKING TOOL FOR 5/ 187.03 SOCKET /SHALLOW SKT /FLEXC 753.22 SOLUS PRO CF UPDATE 435.94 CHOPSAW BLADE 103.67 0 -RINGS 4.44 FR710 BW 94T - #373 189.00 BALL JOINT - REMOVE & REPL 476.16 BLEEDER SCREWS 12.80 ECONO MATIC+ 195.94 IDLER PULLEY 25.02 MINI BULB 5.99 MUFFLER /MONRO - MATIC + /SPR 262.52 OIL FILTER 9.30 RETURN MONRO - MATIC + /BLEE - 170.42 RETURNED ECONO MATIC+ - 195.94 SWAY LINK KT /MUFFLER CLA 45.59 CAR WASHES 12.79 VINYL TUBING /STOPS RUST 27.48 JEWELS - # 374 10.85 REMAN PUMP /SHAFT ASY -# 3 351.66 RETURN BEARING ASY -25.81 RETURN REMAIN PUMP - 199.77 SENSOR ASSY - # 373 40.19 DOT RECERTIFICATION -RYDE 90.00 TABS FOR # 502 17.75 P7 bps: 05/21/2012 Time 09:36:38 Department Operator: KKF Page: 3 City of Lino Lakes FM Entry - Invoice Payment - Department Report 'Vendor Name Description Amount FLEET FLEET FLEET TRI -STATE BOBCAT, IN INSPECTION - REPAIR FRON LUBRICATION TECHNOLO 1947.9 GALLONS 87 UNL LUBRICATION TECHNOLO 630.0 GALLONS 2 ULS RED Total for Department 431 GOVERNMENT BUILDINGS AID ELECTRIC CORPORA GOVERNMENT BUILDINGS AID ELECTRIC CORPORA GOVERNMENT BUILDINGS AMERIPRIDE LINEN /APP GOVERNMENT BUILDINGS TDS METROCOM MN GOVERNMENT BUILDINGS C. P. OFFICE PRODUCT GOVERNMENT BUILDINGS CENTENNIAL UTILITIES GOVERNMENT BUILDINGS CONNEXUS ENERGY GOVERNMENT BUILDINGS DALCO, INC. GOVERNMENT BUILDINGS FRATTALLONE'S HARDWA GOVERNMENT BUILDINGS XCEL ENERGY GOVERNMENT BUILDINGS U S BANK VISA GOVERNMENT BUILDINGS COMCAST GOVERNMENT BUILDINGS COMCAST REPLACE BAD SWITCHES & B STREET LIGHT LED RETROFI MONTHLY RUG /MAT REPLACEM MONTHLY PHONE CHARGES OFFICE SUPPLIES APR.2012 GAS USAGE /600 T MONTHLY ENERGY CHARGES BIG MOUTH RH BLUE BALLCOCK FOR 8 -1/2" & UP MONTHLY ELECTRIC CHARGES HAMMER DRILL POWER CORD LL CITY HALL INTERNET SE LL PUBLIC WORKS INTERNET GOVERNMENT BUILDINGS GOLD STAR AUTO BODY SQUAD 364 /DEER - 4/8/12 GOVERNMENT BUILDINGS GOLD STAR AUTO BODY SQUAD 374 /WINDOW DAMAGE GOVERNMENT BUILDINGS STAPLES ADVANTAGE OFFICE SUPPLIES GOVERNMENT BUILDINGS JANI -KING OF MINNESO MAY 2012 CLEANING CONTRA GOVERNMENT BUILDINGS CONCRETE YARD ORNAME LG PLANKS Total for Department 432 PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS PARKS RECREATION RECREATION SOLID WASTE SOLID WASTE SOLID WASTE RYDEEN, LESTER BUCCANEER PLUS HERBICIDE ANOKA COUNTY PROPERT TAX FORFEIT PARCEL -PIN 2 ' ANOKA COUNTY PROPERT TAX FORFEIT PARCEL -PIN 2 CENTENNIAL UTILITIES APR.2012 GAS USAGE /6811 CENTENNIAL UTILITIES APR.2012 GAS USAGE /6918 CENTENNIAL UTILITIES APR.2012 GAS USAGE /7204 CONNEXUS ENERGY MONTHLY ENERGY CHARGES U S BANK VISA DOGIPOT PET STATIONS U S BANK VISA LITTER BAGS - DOGGIE STATI VIKING INDUSTRIAL CE VESTS W /ZIPPER ZACK'S INC. MUN. IND ORANGE STIFF STREET BROO HUGO EQUIPMENT COMPA FUEL FILTER /GASKET /DIAPH HUGO EQUIPMENT COMPA NUT M8 FLANGE HUGO EQUIPMENT COMPA SEAL -OIL RECREATION, SPORTS & 2 FULL SIZE SOCCER NETS BIFF'S INC. MONTHLY RUBBISH REMOVAL Total for Department 450 U S BANK VISA PLAYGROUND SUPPLIES U S BANK VISA RECREATION STAFF MEETING Total for Department 451 TRICIA HAYNES FOGARTY, MARY U S BANK VISA TWO SHOWS -WARGO & RICE L RECYCLE DAY REIMBURSEMEN HOSE HOLDERS /COMM GARDEN 1,851.58 6,532.30 2,175.77 13,371.13* 382.90 527.25 149.89 163.45 91.96 1,436.16 912.57 20.21 16.01 4,318.13 34.04 42.45 42.45 1,129.74 725.90 187.27 3,624.13 720.00 14,524.51* 166.76 77.65 77.65 18.17 25.21 60.21 69.41 1,008.97 560.00 174.16 67.30 15.41 4.23 43.75 271.46 475.37 3,115.71* 792.82 14.73 807.55* 1,125.00 12.95 85.40 • Date: 05/21/2012 Time: 09:36:38 apartment SOLID WASTE SOLID WASTE FORESTRY FORESTRY FORESTRY Operator: KKF Page: 4 City of Lino Lakes FM Entry - Invoice Payment - Department Report Vendor Name Description Amount GREEN LIGHTS RECYCLI FREIMUTH ENTERPRISES Total for MARGOLIS COMPANY MARGOLIS COMPANY MARGOLIS COMPANY Total for RECYCLE FLUOR LAMPS /BALL 2012 SPRING RECYCLE DAY Department 462 BURR OAK /PIN OAK /LINDEN MAPLE /PIN OAK /WHITE OAK PIN OAK /HACKBERRY /WHITE Department 463 Total for Fund 101 JONES, SHANNON G. PETERSON, KAY BLUM, BOB SUMMER BOAT TOUR REFUND MARK TWAIN REFUND SENIOR TRIP REFUND 'KUPPERSCHMIDT, MARYA MARK TWAIN REFUND GETSCHEL, KRISTINA PROGRAM OVERPAYMENT REFU MILLER'S CROSSROAD V REFUND OF ROOM RESERVATI Total for Department ADULT INSTRUCTIONAL CENTENNIAL SCHOOLS I ZUMBA & TURBO KICK FACIL Total for Department 201 ADULT SPORTS SPECIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS ECIAL EVENTS /TRIPS CIAL EVENTS /TRIPS CIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS SPECIAL EVENTS /TRIPS YOUTH YOUTH YOUTH YOUTH YOUTH POLICE POLICE • INSTRUCTIONAL INSTRUCTIONAL, INSTRUCTIONAL INSTRUCTIONAL INSTRUCTIONAL U S BANK VISA GIFT CERTIFICATES -GREEN Total for Department 202 U S BANK VISA U S BANK VISA U S BANK VISA U S BANK VISA U S BANK VISA U S BANK VISA U S BANK VISA U S BANK VISA PRINCESS PARTY SENIOR BOOK CLUB SENIOR EVENT - HOMETOWN PI SENIOR SENIOR SENIOR SENIOR SENIOR PROGRAM - REDBOX PROGRAM - TARGET TRIP- HARRIET ISLA TRIP - HISTORY THEA TRIP -OLD LOG THEA PARK BUS COMPANY TRANSPORTATION SERVICES SCHMIDT, CONNIE SENIOR TRIP REFUND HEGGESTAD, JANINE AARP REFUND Total for Department 205 CENTENNIAL SCHOOLS I HAVE -A -BALL FACILITY REN CENTENNIAL SCHOOLS I PRESCHOOL DANCE FACILITY CENTENNIAL SCHOOLS I SOCCER MINI CAMP FACILIT CENTENNIAL SCHOOLS I TAE KWON DO FACILITY REN CENTENNIAL SCHOOLS I TOSS, KICK & CATCH FACIL Total for Department 207 Total for Fund 201 WOOD, SANDIE REGISTRATION FOR MARKED NELSON AUTO CENTER 2013 FORD POLICE INTERCE Total for Department 420 64.05 2,933.00 4,220.40* 1,923.75 993.00 5,023.13 7,939.88* 63,453.08* 120.00 38.00 5.00 38.00 10.00 50.00 261.00* 454.00 454.00* 50.00 50.00* 55.98 247.22 41.78 2.57 5.98 586.00 57.00 1,257.75 587.50 2.00 30.00 2,873.78* 252.00 450.00 243.00 797.00 252.00 1,994.00* 5,632.78* 43.00 51,201.43 51,244.43* P9 DP4 O 05/21/2012 Time: 09:36:38 Operator: KKF Page: 5 City of Lino Lakes FM Entry - Invoice Payment - Department Report Department Vendor Name Description Amount Total for Fund 402 51,244.43* GOVERNMENT BUILDINGS FRANCIS, LINDA IPAD 3 PURCHASE /APPLECAR 619.18 GOVERNMENT BUILDINGS U S BANK VISA LAPTOPS FOR KARLSON,DEGA 3,005.34 GOVERNMENT BUILDINGS U S BANK VISA OFFICE 2010 PROF LICENSE 689.89 Total for Department 432 4,314.41* Total for Fund 403 4,314.41* OTHER KENNEDY & GRAVEN, IN PROFESSIONAL SERVICES 99.60 Total for Department 499 99.60* Total for Fund 475 99.60* 5 K MASONRY INC MANHOLE COVERS REFUND 70.00 PADDOCK, HEATH OVERPAYMENT OF UTILITIES 2,141.30 Total for Department 2,211.30* WATER AMERICAN FASTENER & 33 -34 PREMIUM TAPE 61.35 WATER INSTRUMENTAL RESEARC TOTAL COLIFORM BACTERIA 142.50 WATER TDS METROCOM MN MONTHLY PHONE CHARGES 110.22 WATER C. W. HOULE, INC. APOLLO DRIVE HYDRANT REP 612.50 WATER CONNEXUS ENERGY MONTHLY ENERGY CHARGES 1,012.52 WATER E. H. RENNER & SONS, INSPECT WELL PUMPS 450.00 WATER HAWKINS, INC. CHLORINE CYLINDERS 70.00 WATER XCEL ENERGY MONTHLY ELECTRIC CHARGES 1,674.25 WATER SENSUS USA ANNUAL RENEWAL SENSUS SY 1,524.60 WATER HD SUPPLY WATERWORKS 3/4" ACCUSTREAM ECR METE 5,771.25 WATER HD SUPPLY WATERWORKS 5502 RADIOREAD HANDHELD 5,985.00 WATER NAC MECHANICAL& ELEC REPLACED ACTUATOR MOTOR/ 979.01 WATER OLSEN COMPANIES SOSC CHAIN SLING /4 TON W 180.82 WATER .OLSEN COMPANIES STD LIFT BEAM 466.47 WATER GOPHER STATE ONE -CAL APRIL 2012 LOCATES 284.30 Total for Department 494 19,324.79* Total for Fund 601 21,536.09* PADDOCK, HEATH OVERPAYMENT OF UTILITIES 322.00 Total for Department 322.00* SEWER AID ELECTRIC CORPORA REPAIR PUMP # 2 - NOT RU 389.00 SEWER BROCK WHITE COMPANY, SAKRETE CONCRETE 180.49 SEWER CENTENNIAL UTILITIES APR.2012 GAS USAGE /SUNRI 18.17 SEWER CONNEXUS ENERGY MONTHLY ENERGY CHARGES 349.94 SEWER XCEL ENERGY MONTHLY ELECTRIC CHARGES 24.54 SEWER VIKING INDUSTRIAL CE VESTS W /ZIPPER 174.16 SEWER METROPOLITAN COUNCIL JUNE 2012 WASTEWATER SVC 57,077.74 SEWER GOPHER STATE ONE -CAL APRIL 2012 LOCATES 284.30 Total for Department 495 58,498.34* • • Date: 05/21/2012 Time: 09:36:38 Operator: KKF •artrnent Vendor Name Description Amount Page: City of Lino Lakes FM Entry - Invoice Payment - Department Report Total for Fund 602 58,820.34* BLUE TOW SERVICE, IN CN 12- 089114 /'04 CHEV MO 132.88 WOOD, SA14DIE TITLE TRANSFER FOR FORFE 21.50 CRIME REPORTS CRIME MAPPING & CRIME ANALISYS TOOLS 7,832.64 MUELLER, ROBERT ESCROW RELEASE 2,450.00 Total for Department 10,437.02* Total for Fund 801 10,437.02* Grand Total 215,537.75* • • P11 P12 CENTENNIAL FIRE DISTRICT • Report Criteria: Report type: Summary • Check Register - FIRE GL Page: 1 Check Issue Dates: 5/5/2012 - 5/7/2012 May 21, 2012 09:03AM GL Check Check Vendor Description Check Period Issue Date Number Number Payee Amount 05/12 05/07/2012 5313 60115 FAIRVIEW PHARMACY SERVIC MEDICAL SUPPLIES 05/12 05/07/2012 5321 60100 FAIRVIEW HEALTH SERVICES MEDICAL SUPPLIES 509.64- V 36.06 Grand Totals: 773.58- • M = Manual Check, V = Void Check P13 CENTENNIAL FIRE DISTRICT Check Register- FIRE GL Page: 1 Check Issue Dates: 5/8/2012 - 5/21/2012 May 21, 2012 09:05AM Report Criteria: Report type: Summary GL Check Check Vendor Period Issue Date Number Number 05/12 05/18/2012 5327 130825 05/12 05/11/2012 5328 160050 05/12 05/21/2012 5329 10750 05/12 05/21/2012 5330 11565 05/12 05/21/2012 5331 30480 05/12 05/21/2012 5332 30485 05/12 05/21/2012 5333 30500 05/12 05/21/2012 5334 31008 05/12 05/21/2012 5335 31137 05/12 05/21/2012 5336 40200 05/12 05/21/2012 5337 50121 05/12 05/21/2012 5338 60650 05/12 05/21/2012 5339 70578 05/12 05/21/2012 5340 90160 05/12 05/21/2012 5341 120331 05/12 05/21/2012 5342 120450 05/12 05/21/2012 5343 130205 05/12 05/21/2012 5344 130475 05/12 05/21/2012 5345 160493 05/12 05/21/2012 5346 180290 05/12 05/21/2012 5347 180600 05/12 05/21/2012 5348 180601 05/12 05/21/2012 5349 190700 05/12 05/21/2012 5350 190800 05/12 05/21/2012 5351 210405 05/12 05/21/2012 5352 220200 05/12 05/21/2012 5353 240100 05/12 05/21/2012 5354 240200 05/12 05/21/2012 5355 250500 Grand Totals: Payee MINNESOTA Ul FUND PAETEC ANOKA CO CENTRAL COMMUN ASPEN MILLS, INC CENTENNIAL UTILITIES CENTER MART CENTURY LINK COMCAST CONNEXUS ENERGY DIVERSIFIED TEXTURING & EMERGENCY AUTOMOTIVE TE FRATTALLONE'S HARDWARE S GRAINGER IMAGE TREND, INC LEAGUE OF MN CITIES INS TR CITY OF LINO LAKES MMKR, INC MIDWAY FORD PREMIUM WATERS, INC RIVARD ELECTRIC CO, INC CITY OF ROSEVILLE CITY OF ROSEVILLE, FIRE DEP SPRING LAKE PARK FIRE DEPT ROBERT STAFKI UNIFORMS UNLIMITED, INC VERIZON WIRELESS XCEL ENERGY XTREME CUSTOM APPAREL & THE YOUTH'S SAFETY CO Description Check Amount UNEMP BENEFITS PHONES STATION 2 800 MHZ RADIO BATTERY UNIFORM APRIL STATION 1 UTILITIES FUEL CENTERVILLE PHONE INTERNET CENTERVILLE STATI ELECTRIC STATION 1 LOCKER TAGS F150 EMERGENCY LIGHTS BLDG MTC TOWELS/TISSUE /SCREENS MOBILE INSP SUPPORT EXCESS LIABILITY INS 4/12 -4/1 APRIL REIMBURSEMENTS FINAL 2011 AUDIT BILLING 2013 FORD EXPLORER BOTTLED WATER ELEC WORK CENTERVILLE MAY PHONE SERVICE 12 MINITOR V PAGERS TRAINING CENTER RENTAL SMALL TOOLS UNIFORMS CELL PHONES ELECTRIC STATION 2 UNIFORM SHIRTS FIRE PREVENTION BADGES .00 V 148.63 53.00 377.00 159.68 176.12 56.02 210.74 366.57 75.00 999.60 381.21 536.77 500.00 21,169.00 23,482.05 5,415.00 27,397.82 35.91 315.50 839.16 1,800.00 200.00 114.62 149.21 126.91 408.38 128.00 372.05 85.993.95 M = Manual Check, V = Void Check • P14 Julie Bartell From: Sent: To: Subject: Attachments: LINDA GRESBACK < GRESBACK @ci.circle- pines.mn.us> Monday, May 21, 2012 9:13 AM Jerry Streich; Theresa Bender; Alan Rolek; Julie Bartell; Jean Viger Fire Disbursements 05 07 12 FIRE DISBURSEMENTS.pdf; 05 21 12 FIRE DISBURSEMENTS 5327- 5355.pdf Please note checks 5322 -5326 were used for payroll. Linda Gresback City of Circle Pines /Centennial Utilities 200 Civic Heights Ci Circle Pines, MN 55014 Phone 763 -231 -2603 Fax 763- 785 -2859 • • 1 • • • 1 2 3 CITY COUNCIL WORK SESSION DRAFT CITY OF LINO LAKES MINUTES May 7, 2012 4 DATE : May 7, 2012 5 TIME STARTED : 5:30 p.m. 6 TIME ENDED : 8:45 p.m. 7 MEMBERS PRESENT : Council Member Stoesz, O'Donnell, 8 Rafferty, Roeser and Mayor Reinert 9 MEMBERS ABSENT : None 10 11 Staff members present: City Administrator Jeff Karlson; Community Development 12 Director Michael Grochala; Environmental Coordinator Marty Asleson; Finance Director 13 Al Rolek; Public Safety Director John Swenson; City Engineer Jason Wedel; City Clerk 14 Julie Bartell 15 1. City Application for Green Step Cities Program — Environmental Coordinator 16 Asleson explained the Minnesota GreenStep Cities program, that the city has been invited 17 to becomes an established city in the program, and introduced a student group from the 18 University of Minnesota to present information on the program. He also introduced 19 Phillip Muessig of the Minnesota Pollution Control Agency who is the program 20 coordinator. 21 Piper Donlin, U of M Student and Lino Lakes resident, began the presentation. She 22 noted that the city's current practices have been examined and it appears that it is very 23 close to being a first step Green Step city. Another student then noted the best 24 management practices (BMP) that are already in place as well as those that could be done. 25 Another student explained the economic benefits of the BMPs. Another student then 26 compared where another Minnesota city (Hopkins) is at in their process to become a 27 Green Step City. One benefit of being involved is qualification for the assistance of an 28 intern. The program is completely voluntary and there are 43 cities in the program 29 currently. Mr. Asleson has agreed to serve as the coordinator for the city. 30 When the mayor asked for more information on what the city gains from participation, 31 the students noted recognition of what the city has done, the economic benefits they have 32 mentioned, extra resources and no financial cost implication. Mr. Asleson added that the 33 City's Environmental Board recommended that the request to participate be forwarded to 34 the city council for consideration. The mayor noted some concern about the resolution 35 being vague and that he would want to be certain about what a commitment to the 36 program would mean; he feels the council is very purposeful about their decisions. The 37 students recommended that the program website provides good information that may be 38 helpful. Program Coordinator Muessig further explained benefits of the program, 39 including assistance in documenting what cities are doing environmentally and providing 40 helpful information on practices. A council member noted concern that city staff is very 41 busy and this could mean additional duties and also the council needs to know this would 42 be a good fit for this city. 1 P15 P 1 6 CITY COUNCIL WORK SESSION May 7, 2012 DRAFT 43 The council will continue to review the program. 44 2. Target/Lino Lakes Marketplace Stormwater Improvements — Community 45 Development Director Grochala noted recent discussions about possible improvements to 46 the stormwater infiltration basins located on the Lino Lakes Marketplace site. 47 Improvements being discussed would serve to improve the system from both a water 48 quality and a water quantity standpoint. The project would involve a partnership 49 arrangement between the Anoka Conservation District, Rice Creek Watershed District, 50 Target Corporation and the city and grant funds are being sought. The only cost to the 51 city would be staff time. The details of the proposed project are still evolving but staff 52 wanted to present the idea to the council before moving forward. The council concurred 53 that staff should continue in the current process. 54 3. Electronic Packet Cost Analysis — Finance Director Rolek explained that staff 55 has been exploring the possibility of converting from paper for council meeting packets to 56 providing information in an electronic form. The council requested that staff provide a 57 cost benefit analysis on such a conversion. Mr. Rolek reviewed the cost comparison 58 information that was included in his staff report that indicates the city could realize 59 savings by use of electronic packets. The mayor noted that he is interested in what types 60 of applications would be appropriate to use with this type of project; is there an 61 application that would apply directly to this type of use? 62 The council discussed the type of device they would use for electronic packets. Staff 63 will continue to look at applications that will be useful for city business and facilitate the 64 council process. 65 The council concurred that staff be directed to purchase two or three ]Pads to get the 66 process started. The mayor is particularly interested in applications and would like to 67 hear more. Administrator Karlson suggested that staff will check out firsthand what other 68 cities are using for applications for council packets and will return with a product 69 demonstration. 70 4. Revised Personnel Policy — Administrator Karlson noted that this policy has 71 needed updating for some time and he has made the effort to go through the entire policy 72 and make revisions and additions as necessary. He pointed out five areas of change in 73 particular: Health Care Benefits, Personal Time Off (combining vacation and sick time); 74 Tuition Reimbursement; Cell Phones and Computer Use Policy. He reviewed those 75 proposed areas of change and added that the section relating to the city's Drug and 76 Alcohol Policy has also received a major review and changes. 77 The council discussed the proposal to offer Personal Time Off (PTO) and heard that 78 many other cities are utilizing the policy. At this time it would be an optional choice (it 79 would have to be bargained with the unions) but mandating it for new employees would 80 be a good way to get it going. A council member suggested the concept of allowing 2 • • • • • • CITY COUNCIL WORK SESSION May 7, 2012 DRAFT 81 employees to "buy" vacation time, whereby they pay the cost of additional time off spread 82 throughout the year. Some concern was expressed about continuing the practice of 83 paying for unused sick time especially in light of the payments representing taxpayer 84 money. 85 The council discussed the city tuition reimbursement policy. It was suggested that an 86 eighty percent reimbursement rate seems high and perhaps a 50/50 city /employee 87 payment plan would be more of an incentive. A council member noted his awareness of a 88 federally imposed limit on what can be reimbursed and he suggested that staff research 89 that figure. It was also suggested that reimbursement be provided for graduate level 90 education only. The council did not concur with the concept of offering reimbursement 91 to graduate level and up only since organizations normally include individuals with all 92 levels of education and they all merit the incentive. It was suggested that language be 93 added that clarifies that the city assistance should be paid back if the employee leaves 94 within a certain period of time. As for the changes proposed, the council concurred with 95 the proposed health care, cell phone policy and Personal Time Off policy. They'd like to 96 see some revisions based on discussion within the tuition reimbursement policy. 97 Administrator Karlson noted he would be further reviewing the computer use policy. 98 5. Police Department Organizational Assessment — Chief Swenson distributed 99 department organizational charts indicating the organization before the proposed changes 100 and after. He clarified that Administrator Karlson prepared an organizational review in 101 2011 but that included only the two front office positions within the police department. 102 Chief Swenson noted the recent resignation of the Volunteer Coordinator and that 103 addressing that vacancy and the duties of that position became part of his reorganization 104 proposal. The recommendations included in his report include some restructuring within 105 the department but without additional hiring. It includes the elimination of one 106 elementary school officer assignment but with the understanding that the department will 107 have a conversation about how the department can continue to have a positive role in the 108 schools. He reviewed the budget implications (savings). When he was asked who 109 would be filling in for the responsibility of seeking grant funds, Chief Swenson explained 110 that everyone in his department has that responsibility. The mayor cautioned the Chief on 111 the prospect of adding a captain position to a department that has sometimes been viewed 112 as "top heavy ". Chief Swenson pointed out a comparison to the Hugo Department that 113 indicates the department structure would be appropriate. 114 The council concurred that they will consider the department restructuring at the next 115 council meeting. 116 6. Charter Commission Communications - City Clerk Bartell noted that the 117 Charter Commission Chair has sent two email communications that are included in the 118 packet. She provided the council with additional information from Chair Lyden that 119 explains the commission's intent as far as the tax exempt zone motion of the commission. 120 They are not forwarding the motion as a charter amendment proposal. The mayor noted 3 P17 P18 CITY COUNCIL WORK SESSION May 7, 2012 DRAFT 121 that the tax exempt zone section is actually covered within the proposed amendment that 122 has been forwarded to the Commission for their review. Community Development 123 Director Grochala added that the removal of tax exempt zone language alone is not 124 recommended. 125 Regarding the Charter Commission budget request, the mayor clarified that the council's 126 request to the commission is for their review of an amendment. A council member said 127 he understands the request for an attorney to review but he has a concern about the costs 128 not being contained. The council heard from Finance Director Rolek that the 129 Commission has not yet submitted any payment requests for their $1500 annn l budget 130 for 2012. The council concurred that the commission has budgeted funds available for 131 their expenses. 132 Community Development Director Grochala noted that staff has had discussions with the 133 Charter Commission Chair about having city staff and attorney Steve Bubul provide 134 infoiruation to the commission on the amendment. Mr. Grochala received the council's 135 authorization for staff and Mr. Bubul to present to the commission. 136 7. Monthly Progress Report — Administrator Karlson reviewed the two items on 137 the progress report. In regard to labor negotiations, he requested that the council meet in 138 closed session after the next regular council meeting for further discussion. 139 8. Transparency 140 (requested by Council Member Roeser and Mayor Reinert) 141 The mayor noted that he and Council Member Roeser have been speaking about the 142 possibility of instituting additional transparency measures within city government. 143 Council Member Roeser noted that he'd like the council to have discussion on some 144 ideas. He isn't aware of specific problems but would like to keep a good level of 145 openness and honesty. He suggests that all meetings regarding contracts with the city 146 could be recorded and available to the public within a certain period to keep all the 147 information clearly in view. Also for city boards and commissions, any group that 148 receives funding from the city could provide minutes to the city clerk within a established 149 period of time. Also candidates for city offices should be voting permanent residents of 150 the city. Additional contracting rules should be instituted to avoid unfair consideration to 151 former employees or relatives. These are general suggestions, not specific and are offered 152 only for discussion purposes. The mayor recommended that the list of ideas be given to 153 the city administrator and others should feel free to add ideas for better transparency. A 154 council member noted that ideas need to be crosschecked with laws to ensure the city's 155 authority. The council concurred that the transparency issue will continue to be 156 discussed. 4 • • • CITY COUNCIL WORK SESSION May 7, 2012 DRAFT 157 Not on Agenda - Mayor Reinert noted that he had the honor of speaking to elementary 158 students in the city about Arbor Day. They presented the city with an Arbor Day flag. 159 The council concurred that the flag will be flown at city hall during the month of May. 160 Review Regular Council Agenda — The agenda was reviewed and there were no 161 changes proposed. 162 The meeting was adjourned at 8:45 p.m. 163 164 These minutes were considered, corrected and approved at the regular Council meeting held on 165 May 29, 2012. 166 167 168 169 170 Julianne Bartell, City Clerk Jeff Reinert, Mayor 171 5 P19 • • • COUNCIL MINUTES 1 3 4 DRAFT CITY OF LINO LAKES MINUTES May 14, 2012 P20 5 DATE : May 14, 2012 6 TIME STARTED : 6:30 p.m. 7 TIME ENDED : 7:25 p.m. 8 MEMBERS PRESENT : Council Member Stoesz, O'Donnell, Rafferty, 9 Roeser, and Mayor Reinert 10 MEMBERS ABSENT : none 11 12 Staff members present: City Administrator Jeff Karison; Community Development Director Michael 13 Grochala; Chief of Police John Swenson and City Engineer Jason Wedel. 14 15 PUBLIC COMMENT 16 17 Adam Johnson, 2055 Otter Lake Drive, noted that he is in the process of petitioning the city for a 18 cartway and is trying to fulfill the requirement of serving a hearing notice on affected property 19 owners. The service is complete except for one property owner that is proving difficult to serve. He 20 will continue to work toward the goal of getting all necessary papers served before the July hearing on 21 the matter. "77 23 SETTING TIIE AGENDA 24 25 The agenda was approved as presented. 26 27 CONSENT AGENDA 28 29 Council Member O'Donnell moved to approve the Consent Agenda. Items 1A through 1E as 30 presented. Council Member Roeser seconded the motion. Motion carried on a unanimous voice vote. 31 32 ITEM ACTION 33 34 Consideration of Expenditures: 35 36 May 14, 2012 (Check No. 93218 - 93340 , $242,645.83) Approved 37 38 Centennial Fire District (Check No. 5309 - 39 5320, $3,086.82 Approved 40 41 April 23, 2012 Council Work Session Minutes Approved 42 43 April 23, 2012 Council Meeting Minutes Approved 44 1 P21 COUNCIL MINUTES May 14, 2012 DRAFT 45 Resolution No. 05 -40, Consumer Fireworks Permit 46 for Super Target Approved 47 48 April 23, 2012 Board of Appeal Minutes Approved 49 50 FINANCE DEPARTMENT REPORT 51 52 There was no report from the Finance Department. 53 54 ADMINISTRATION DEPARTMENT REPORT 55 56 There was no report from the Administration Department. 57 58 PUBLIC SAFETY DEPARTMENT REPORT 59 60 4A) Police Department Organizational Assessment, Department Reorganization and 61 Resolution No. 12 -43 Amending the Police Department Budget — The Mayor noted that the 62 council requested an organizational assessment of the Police Department. The assessment is the 63 basis for some proposed reorganization. He noted that there has been some misinformation that the 64 police officer assigned to elementary schools is being fired and sadly that misinformation is being 65 spread through school children; that is not the case and the Police Chief will explain the proposal. 66 67 Police Chief Swenson first explained that the department is one hundred percent committed to 68 participating and having an active role in the elementary schools in the city. Also he pointed out that 69 the sworn strength of the department will remain the same with the proposed reorganization. He 70 explained that his organizational review has been underway for about a year and during that time a 71 resignation occurred that allows a reorganization and budget savings. The proposal would create a 72 second captain position to assist with the volunteer oversight as well as administrative section duties. 73 This would involve reallocating within the current staff of the department. He noted the budget 74 savings that would occur in 2012 and going forward. The resolution included in his report is required 75 in order to move funds that will be required for the hiring process this year. 76 77 Council Member Roeser moved to approve the proposed reorganization plans and Resolution No. 12- 78 43 as presented. Council Member Stoesz seconded the motion. Motion carried on a unanimous 79 voice vote. 80 81 PUBLIC SERVICES DEPARTMENT REPORT 82 83 There was no report from the Public Services Department. 84 85 COMMUNITY DEVELOPMENT DEPARTMENT REPORT 86 87 6A) Resolution No. 12 -36, Approving Plans and Specifications and Authorizing Advertisement 88 for Bids for the 2012 Street Sealcoat Project — City Engineer Wedel reported that each year the city 89 selects a number of streets to be sealcoated based on the city's Pavement Management Plan. As the 2 • • COUNCIL MINUTES May 14, 2012 P22 DRAFT 90 city has looked at the streets proposed, more review indicated the streets in the Pheasant Hills 91 neighborhood would not benefit from sealcoating. Those streets were pulled off and replaced with 92 the next streets on the list. The proposed list is approximately 12 miles at a cost of about $316,000, 93 somewhat over the budget planned for sealcoating this year but proposed to be handled with overage 94 funds that have accumulated. The cost will be clarified once bids are received and a fmal low bid 95 accepted. 96 97 The council discussed with staff the possibility that other streets are in the same condition as Pheasant 98 Hills and how that will be addressed for pavement treatment. The council also asked that staff add 99 the plans for future roadwork on the Website. 100 101 Council Member O'Donnell moved to approve Resolution No. 12 -36, as presented. Council Member 102 Roeser seconded the motion. Motion carried on a unanimous voice vote. 103 104 6B) Resolution No. 12 -37, Approving Plans and Specifications and Authorizing Advertisement 105 for Bids for the 2012 Street Overlay Project — City Engineer Wedel explained that the city also 106 implements a street overlay program each year based on the city's Pavement Management Plan. This 107 year's project is Leonard Avenue and Bradley Street, originally planned for mill and overlay. Now, 108 after more review of the street, it has been determined that a reclamation project is more appropriate. 109 The reclamation involves pulling up the street, grinding that product down, and reusing that product 110 to pave the street. The cost of the project is fully included in the existing budget. The council 111 confirmed that the residents on that street will be well informed and issues minimized during any 112 construction period. 113 114 Council Member Roeser moved to approve Resolution No. 12 -37 as presented. Council Member 115 Stoesz seconded the motion. Motion carried on a unanimous voice vote. 116 117 6C) Resolution No. 12 -42, Approving Amendment to the I -35W /CSAH 14 Joint Powers 118 Agreement with Anoka County regarding Lilac Street Improvements — City Engineer Wedel 119 reported that staff is proposing an amendment to the city's joint powers agreement with Anoka 120 County relative to Lilac Street. The city has authorized that Lilac Street be included in Anoka 121 County's reclamation program, at the city's cost but with savings due to being a part of a larger 122 program. The funds are available mainly through funds given to the city from the county when Lilac 123 Street was taken back from them. 124 125 Council Member Rafferty moved to approve Resolution No. 12 -42 as presented. Council Member 126 Roeser seconded the motion. Motion carried on a unanimous voice vote. 127 128 6D) Resolution No. 12 -41, Approving a Municipal State Aid (MSA) Funding Advance, 129 I35W/Lake Drive and I35E /CSAH 14 Interchange Improvements — City Engineer Wedel 130 explained the request for an MSA advance. The request is based on communication from the 131 Minnesota Department of Transportation indicating advance of funds would be appropriate and to 132 make funds on hand for cities to utilize. The city's MSA funds for the future are mainly devoted to 133 payment for improvements to interchange projects in the city. 134 P23 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 COUNCIL MINUTES DR&FT May 14, 2012 Council Member Roeser moved to approve Resolution No. 12 -41 as presented. Council Member Rafferty seconded the motion. Motion carried on a unanimous voice vote. UNFINISHED BUSINESS There was no Unfinished Business. NEW BUSINESS There was no New Business. COMMUNITY CALENDAR Monday, May 21 Monday, May 28 Tuesday, May 29 Tuesday, May 29 Community Calendar — A Look Ahead May 14, 2012 through May 29, 2012 6:00 pm, Community Room Special Work Session CITY HALL CLOSED Memorial Day 5:30 pm, Community Room Council Work Session 6:30 pm, Council Chambers City Council Meeting ADJOURN There being no further business, Council Member Rafferty moved to adjourn to a closed session at 7:25 p.m. Council Member Roeser seconded the motion. Motion carried on a unanimous voice vote. These minutes were considered and approved at the regular Council Meeting, May 29, 2012. Julianne Bartell, City Clerk Jeff Reinert, Mayor 4 • • • • • • CITY COUNCIL AGENDA ITEM 2A STAFF ORIGINATOR Al Roiek MEETING DATE May.29, 2012 TOPIC Accept 2011 Annual Audit Report VOTE REQUIRED Simple Majority (3/5) BACKGROUND Rachel Flanders and Brady Hoffman of CiiftonLarsonAllen, LLC will be in attendance at the meeting to provide a brief overview of the City's 2011 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 2011 annual audit was undertaken earlier this year, with field work being completed in April. The auditors review all financial transactions and the financial reports of the City over the previous year for their fairness in presentation and for full disclosure of all material aspects of the 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 2011 presented fairly, in all material respects, the financial position of the City as of December 31, 2011. 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 2010 Comprehensive Annual Financial Report. This is the fifteenth year that the city has received this award. We believe that the report issued for 2011 continues to uphold the standards of reporting excellence that this prestigious award represents. Following the presentation by Ms. Flanders and Mr. Hoffman, staff recommends that the City Council formally, by motion, accept the 2011 Annual Audit Report. RECOMMENDATION Approve a motion accepting the 2011 Annual Audit Report. ATTACHMENTS 2011 Comprehensive Annual Financial Report 2011 Other Audit Reports P24 o�•ua� euosae uo 0 r 0 Ja2eueW 'uewjj.0H Apaig Janaed 'saapuel j suo!leJiunwWoJ Jo1.ipnd ITOZ 'TE -1aquaaDaa uoissas )IaoM eff) — !" 'f O z O r cD 41') —. cD O ©2012 CliftonLarsonAllen LLP ©2012 CliftonLarsonAllen LLP alba, WHY UOSJeluomiD • • • • o -'-. 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INTRODUCTORY SECTION Principal City Officials 1 Organizational Chart 2 Letter of Transmittal 3 Certificate of Achievement for Excellence in Financial Reporting 8 II. FINANCIAL SECTION Independent Auditors' Report 9 Management's Discussion and Analysis 11 Basic Financial Statements Statement of Net Assets Statement 1 21 Statement of Activities Statement 2 22 Balance Sheet - Governmental Funds Statement 3 24 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets Statement 4 26 Statement of Revenues, Expenditures, and Changes in Fund Balance - Governmental Funds Statement 5 27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance to the Statement of Activities Statement 6 29 Statement of Net Assets - Proprietary Funds Statement 7 30 Statement of Revenues, Expenses and Changes in Net Assets - Proprietary Funds Statement 8 31 Statement of Cash Flows - Proprietary Funds Statement 9 32 Statement of Net Assets - Fiduciary Funds — Agency Funds Statement 10 33 Notes to Financial Statements 34 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Required Supplementary Information General Fund: Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Notes to Required Supplementary Information Schedule of Funding Progress for Postemployment Benefit Plan Combining Fund Financial Statements Combining Balance Sheet — Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance — Nonmajor Governmental Funds Special Revenue Fund — Program Recreation: Schedule of Revenues, Expenditures and Changes in Fund Balance — Budget and Actual Statement of Changes in Assets and Liabilities — Fiduciary Funds — Agency Funds Supplementary Financial Information Combined Schedule of Indebtedness Schedule of Deferred Tax Levies Debt Service Payments to Maturity - All Bonds Insurance in Force Taxable Valuations, Tax Levies and Tax Rates III. STATISTICAL SECTION Net Assets by Component — Last Eight Fiscal Years Changes in Net Assets - Last Eight Fiscal Years Fund Balances, Governmental Funds - Last Ten Fiscal Years Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years Assessed and Actual Value of Taxable Property - Last Ten Fiscal Years Page Reference Number Statement 11 59 65 Statement 12 66 Statement 13 67 Statement 14 73 Statement 15 79 Statement 16 80 Exhibit 1 81 Exhibit 2 83 Exhibit 3 85 Exhibit 4 88 Exhibit 5 89 Table 1 90 Table 2 91 Table 3 93 Table 4 95 Table 5 97 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS Page Reference Number Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years Table 6 98 Principal Property Taxpayers Table 7 99 Property Tax Levies and Collections — Last Ten Fiscal Years Table 8 100 Ratios of Outstanding Debt by Type Table 9 102 Direct and Overlapping Governmental Activities Debt Table 10 104 Legal Debt Margin Information Table 11 105 Demographic and Economic Statistics Table 12 107 Principal Employers, Current Year and Nine Years Ago Table 13 108 Full -Time Equivalent Employees by Type Table 14 109 Operating Indicators by Function/Program Table 15 111 Capital Asset Statistics by Function/Program Table 16 113 I. INTRODUCTORY SECTION 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 e 1 1 CITY OF LINO LAKES, MINNESOTA PRINCIPAL CITY OFFICIALS December 31, 2011 Elected Officials Term Expires Mayor: Jeff Reinert December 31, 2013 Council Members: Dale Stoesz December 31, 2015 Rob Rafferty December 31, 2013 Jeff O'Donnell December 31, 2013 Dave Roeser December 31, 2015 Appointed Personnel City Administrator Jeff Karlson Director of Finance Alan Rolek Director of Public Safety John Swenson Director of Community Development Michael Grochala Director of Public Service Rick DeGardner 1 City of Lino Lakes Organizational Chart Citizens Honorable Mayor and City Council Commissions Cable ▪ Parks and Recreation ▪ Economic Development Planning and Zoning Fire - Environmental City Administrator City Clerk Professional Consultants Engineering Attorney Fiscal Public Senvices Parks Public Works Recreation Public Safety Administration Community Development Human Resources Administrative Services 2 Finance Planning Economic Development Engineering Environmental Services Inspections Accounting Management Information Systems Utility Billing 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 May 17, 2012 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, 2011. 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 CliftonLarsonAllen LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City for the fiscal year ended December 31, 2011, 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 unqualified opinion that the City's financial statements for the fiscal year ended December 31, 2011, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. GAAP require that management provide a narrative introduction, overview and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement MD &A and should be read in conjunction with it. The City of Lino Lakes' MD &A can be found immediately following the report of the independent auditors. 3 600 Town Center Parkway, Lino Lakes, Minnesota 55014 -1182 Phone: 651 - 982 -2400 • Fax: 651 - 982 -2499 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 20,300. The population has more than doubled from the 1990 census figure of 8,807 and has grown by 21% since 2000. Within the City's borders lies the 2,550 acre Rice Creek Chain of Lakes 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 and fire), public works (streets and fleet), parks and recreation, conservation of natural resources (environmental and solid waste abatement), 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 this report beginning on pages 57 and 78, 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. SuperTarget 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 2015. 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. However, 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. This $11.1 million 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. Once construction gains its footing again the City can assess the benefitting properties. The City continues to look for ways to resurrect the project and strives to be prepared to market the property when the economy recovers. Building activity and development continued to be soft in 2011, reflecting the nationwide market. Building permits for new homes in 2011 numbered 34, compared to 31 in 2010. This represents about 1/3 of the new home permits issued in 2007 and is down by approximately 83% from 2005. 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. With both major interstate interchanges complete, the City is preparing for development of several hundred acres in the northeast quadrant of 35E/14. Interest in the commercial interchange has spurred planning for an extension of Otter Lake Road North, which will leave the City well poised to accommodate significant future industrial, commercial and residential development. 5 Factors Affecting Financial Condition (Continued) Long -term financial planning. The city's current five -year financial plan, adopted in January, 2008, identifies street and utility improvements totaling $23,287,990 over the period of 2008 through 2012. These improvements are anticipated to be funded through a number of funding sources, including special assessments, municipal state aid road funds, the area and unit trunk fund, the stormwater management fund and voter - approved tax levies. Also included in the final year of the plan is a feasibility study for a new public works facility. Scheduled capital equipment and office equipment needs and the financing for those needs are also included in the plan. The five - year plan also includes funding projections for operations and operating impacts for the period of 2008 -2012. This plan is in the process of being revised to reflect the anticipated activity through the year 2016. 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, commercial paper and U.S. government agencies. Cash is pooled in one account to provide maximum return. The City Council reviews the investment policy annually. The City's investment policy's primary objective is safety of principal. Therefore, all deposits were either insured by Federal depository insurance or were collateralized as required by State Statute. Due to the weakened economy, a historically low interest rate environment has persisted over the last few years and has had a dramatic impact on the city's investment earnings. The average yield on investments for 2011 was 1.51 %. Investment income includes positive or negative changes in the fair value of investments. Changes in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments the City intends to hold to maturity. Risk management. The City's general property, liability and worker's compensation coverage is provided through the League of Minnesota Cities Trust (LMCIT). At the beginning of the insurance year, the city deposits with LMCIT a premium determined by calculating estimated payroll and applying experience modification ratios. An audit is performed at the end of the insurance year, which may produce a refund or an adjustment due. LMCIT's reserves and rates are reviewed annually by an actuary to assure that the program remains financially strong. 6 1 1 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, 2010. This marks the eleventh 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 generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. The City is submitting the 2011 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. A special thank you goes to city accountant, Paula Schloer, for her efforts in assembling and reviewing information presented in this report. I also want to express my appreciation to the Mayor and City Council for their support for maintaining the highest standard of 1 professionalism in the management of the financial operation of the City. Respectfully submitted, Alan J. Rolek 1 1 1 1 1 1 1 1 1 Director of Finance 7 Certificate of Achievement for Excellence in Financial Reporting Presented to City of Lino Lakes Minnesota For its Comprehensive Annual Financial Report for the Fiscal Year Ended December 31, 20 i 0 A Certificate of Achievement for Excellence is Financial Reporting is presented by the Gov enimeat Finance Officers Association of the United Stares and Canada to govYmment units and public employee retire-meat systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. e 4.0:40-• President 8 Executive Director II. FINANCIAL SECTION �T. CliftonLarsonAllen INDEPENDENT AUDITORS' REPORT Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota CliftonLarsonAllen LLP www.cliftonlarsonallen.com 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, 2011, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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, as of December 31, 2011, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 1Q to the basic financial statements, an error resulting in the understatement of capital assets due to not recording previously donated land as of December 31, 2010, was discovered by management. The financial statements include a restatement of beginning net assets to correct this error. As discussed in the notes to the basic financial statements, the City adopted the provisions of Government Accounting Standards Board Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, as of and for the year ended December 31, 2011. The statement results in the City reporting nonspendable, restricted, committed, assigned, and unassigned fund balances in its governmental funds. 9 Honorable Mayor and Members of the City Council City of Lino Lakes In accordance with Government Auditing Standards, we have also issued our report dated May 17, 2012 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and schedule of funding progress as listed on 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. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The other supplementary information and combining fund financial statements, as listed on the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information and combining fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements. 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. Minneapolis, Minnesota May 17, 2012 10 CliftonLarsonAllen LLP 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 As management of the City of Lino Lakes, Minnesota, we offer readers of the City of Lino Lakes' financial statements this narrative overview and analysis of the financial activities of the City of Lino Lakes for the fiscal year ended December 31, 2011. 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 on pages 3 -7 of this report. FINANCIAL HIGHLIGHTS • The assets of the City of Lino Lakes exceeded its liabilities at the close of the most recent fiscal year by $90,080,344 (net assets). Of this amount $24,664,572 (unrestricted net assets) 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 assets increased by $1,507,330 primarily due to reductions in community development activities, staffing levels, and interest payments on long -term debt. In addition, a prior period adjustment for unrecorded park land increased net assets by $466,800. • As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balance of $16,933,540, a decrease of $4,232,807 in comparison with the prior year primarily due to expenditures for the construction of the interchange at I- 35E /CSAH14. Approximately 13% of this total amount, or $2,285,605, is available for spending at the City's discretion (unassigned fund balance). • At the end of the current fiscal year, unassigned fund balance for the general fund was $5,440,101, or 64% of total general fund expenditures. • The City's total bonded debt decreased by $2,300,000 (11.4 %) during the current fiscal period. In addition, a note the City issued in 2009 to Anoka County for $4,260,000 for the City's portion 135E /County Road 14 interchange project cost was reduced to $3,695,000 due to project cost savings. Principal in the amount of $2,420,000 was retired during the year. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis are intended to serve as an introduction to the City of Lino Lakes' basic financial statements. The City of Lino Lakes' basic financial statements comprise three components: 1. Government -wide financial statements 2. Fund financial statements 3. Notes to the financial statements This report also contains other supplementary 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 of Lino Lakes' finances, in a manner similar to private - sector business. The statement of net assets presents information on all of the City of Lino Lakes' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Lino Lakes is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets 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 compensated absences and OPEB liabilities). 11 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Government -wide financial statements (Continued) Both of the government -wide financial statements distinguish functions of the City of Lino Lakes 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 of Lino Lakes include general government, public safety, public services, parks, recreation and forestry, conservation of natural resources and community development. The business -type activities of the City of Lino Lakes include a water utility and sewer utility. The government -wide financial statements can be found on pages 21 -23 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 of Lino Lakes, 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 of Lino Lakes 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 financing 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 government's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental functions and governmental activities. The City of Lino Lakes maintains thirty -seven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, G.O. Improvement Bonds 2005A fund, Improvement Bonds of 2009A fund, I -35E Interchange fund and Area and Units Charge fund, all of which are considered to be major funds. Data from the other thirty -two governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Lino Lakes adopts an annual appropriated budget for its general and program recreation special revenue funds. A budgetary comparison statement has been provided for these funds to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 24 through 29 of this report. Proprietary funds — The City of Lino Lakes maintains two proprietary type funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Lino Lakes uses enterprise funds to account for its sewer and water utilities. The proprietary fund statements 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 sewer fund and the water fund, which are considered to be major funds of the City of Lino Lakes. The basic proprietary fund financial statements can be found on pages 30 through 32 of this report. 12 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) Fiduciary funds Fiduciary funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. 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 on pages 34 -58 of this report. Other information — The combining statements and schedules referred to earlier in conjunction with nonmajor governmental funds can be found on pages 67 -80 of this report. GOVERNMENT -WIDE FINANCIAL ANALYSIS As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. The City of Lino Lakes' assets exceeded liabilities by $90,080,344 at the close of the most recent fiscal year, an increase of $1,507,330 from the previous year. This increase is primarily due to reductions in community development activities, staffing levels, and interest payments on long -term debt. In addition, a prior period adjustment for unrecorded park land increased net assets by $466,800. By far the largest portion of the City of Lino Lakes' net assets (60 %) reflects its investment in capital assets (e.g. land, buildings, machinery, equipment, and infrastructure), less any related debt used to acquire those assets that is still outstanding. The City of Lino Lakes uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Lino Lakes' investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Condensed versions of the statements of net assets at December 31, 2011 and 2010 are as follows: Current and Other Assets Capital Assets Total Assets Noncurrent Liabilities Outstanding Other Liabilities Total Liabilities Net Assets: Invested in Capital Assets, Net of Related Debt Restricted Unrestricted Total Net Assets Governmental Activities Business -Type Activities Total 2011 2010 2011 2010 2011 2010 $ 30,125,796 $ 31,085,069 $ 11,292,527 $ 10,830,886 $ 41,418,323 $ 41,915,955 42,067,496 41,950,227 29,621,802 30,442,635 71,689,298 72,392,862 72,193,292 73,035,296 21,845,856 24,336,418 685,320 969,751 22,531,176 25,306,169 24,600,103 11, 598, 803 13,463,210 22,562,217 8,428,025 16,738,885 40,914,329 41,273,521 450,334 835,278 45,767 61,156 496,101 896,434 29,216,866 11,201, 362 113,107, 621 114, 308, 817 22,296,190 25,171,696 731,087 1,030,907 23,027,277 26,202,603 29, 648, 461 53, 816, 969 11,598,803 10,728,626 24,664,572 52,210,678 8,428,025 27,467,511 $ 49,662,116 $ 47,729,127 $ 40,418,228 $ 40,377,087 $ 90,080,344 $ 88,106,214 Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (13 %) are to be used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (27 %) may be used to meet the government's ongoing obligations to citizens and creditors. 13 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) At the end of the current fiscal year, the City of Lino Lakes is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. Governmental activities Governmental activities increased the City of Lino Lakes' net assets by $1,466,189. Reductions in community development activities, staffing levels, and interest payments on long -term debt were directly attributable to the increase in City's net assets. During the year, there was a significant increase in capital grants and contributions which was due mainly to special assessments relating to the 135E /CSAH 14 interchange project. Additionally, there was a significant increase in public service expenditures which was caused mainly by the City's contribution towards the joint powers agreement with Anoka County for the County's 135E /CSAH 14 interchange project. In addition, a prior period adjustment for unrecorded park land increased net assets by $466,800. Business -type activities Business -type activities increased the City of Lino Lakes' net assets by $41,141. Investment earnings provided directly for this increase. Condensed statements of revenues, expenses, and changes in net assets highlights are as follows for the years ended December 31, 2011 and 2010: Governmental Activities Business -Type Activities Total 2011 2010 2011 2010 2011 2010 REVENUES Program Revenues: Charges for Services $ 1,420,465 $ 1,412,916 $ 2,584,292 $ 2,585,231 $ 4,004,757 $ 3,998,147 Operating Grants and Contributions 593,798 617,450 593,798 617,450 Capital Grants and Contributions 7,347,613 1,388,984 1,462 8,709 7,349,075 1,397,693 General Revenues: Property Taxes 8,513,559 8,568,236 - - 8,513,559 8,568,236 Franchise Taxes 149,118 150,924 - - 149,118 150,924 Other Taxes 106,128 45,023 - - 106,128 45,023 Contributions Not Restricted to Specific Programs 4,072 4,389 - - 4,072 4,389 Unrestricted Investment Earnings 251,250 225,677 126,215 104,770 377,465 330,447 Gain on Disposal of Capital Assets 37,579 - - - 37,579 - Total Revenues 18,423,582 12,413,599 2,711,969 2,698,710 21,135,551 15,112,309 EXPENSES General Government 1,990,137 1,987,415 1,990,137 1,987,415 Public Safety 4,019,101 3,971,261 4,019,101 3,971,261 Public Service 8,110,979 3,968,063 - - 8,110,979 3,968,063 Parks, Recreation and Forestry 1,218,472 1,124,907 - - 1,218,472 1,124,907 Conservation of Natural Resources 139,544 197,571 - - 139,544 197,571 Community Development 617,747 1,105,254 - - 617,747 1,105,254 Interest on Long -Term Debt 927,535 1,064,172 - - 927,535 1,064,172 Water 966,643 1,045,901 966,643 1,045,901 Sewer 1,638,063 1,466,847 1,638, 063 1,466,847 Total Expenses 17,023,515 13,418,643 2,604,706 2,512,748 19,628,221 15,931,391 CHANGE IN NET ASSETS BEFORE TRANSFERS 1,400,067 (1,005,044) 107,263 185,962 1,507,330 (819,082) Transfers 66,122 (7,078) (66,122) 7,078 - - CHANGEINNETASSETS 1,466,189 (1,012,122) 41,141 193,040 1,507,330 (819,082) Net Assets - Beginning of Year 47,729,127 48,741,249 40,377,087 40,184,047 88,106,214 88,925,296 Prior Period Adjustment 466,800 - - - 466,800 Net Assets - Beginning of Year, As Restated 48,195,927 48,741,249 40,37/,087 40,184,047 88,573,014 88,925,296 NET ASSETS - END OF YEAR $ 49,662,116 $ 47,729,127 $ 40,418,228 $ 40,377,087 $ 90,080,344 $ 88,106,214 14 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Below are specific graphs that provide comparisons of the government activities' direct program revenues with their expenditures. Any shortfalls in direct revenues are primarily supported by property tax levy or general state aid. Expenses and Program Revenues — Governmental Activities $9,000,000 $8,000,000 $7,000,000 $6,000,000 5,000,000 ,000,000 $3,000,000 $2,000,000 $1,000,0$0.0 �r1 �a� ' Q�� Q`ok- cr Revenues by Source — Governmental Activities Unrestricted grants and contributions 0% Franchise taxes 1% Property to xe s 46% Unrestricted investment earnings 1% Other 1% • Expe nses ■ Revenues Charges for services 8% Operating grants and contributions 15 3% Capital grants and contributions 40% CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) Below are specific graphs that provide comparisons of the business -type activities' direct program revenues with their expenditures. Excess revenues are retained within each fund until such time that capital replacement is needed. Expenses and Program Revenues — Business -type Activities $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600, 000 $400, 000 $200,000 $- 0 Expenses ■ Revenues Water Revenues by Source — Business -type Activities Operating grants and contributions 0% Capital grants and contributions 0% Sewer Other 4% Charges for services 95% 16 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS As noted earlier, the City of Lino Lakes uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. Governmental Funds — The focus of the City of Lino Lakes' governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Lino Lakes' financing requirements. GASB Statement 54, implemented for 2011, divides fund balances into five categories: Nonspendable, Restricted, Committed, Assigned and Unassigned. Definitions of these categories can be found in Note 1.0 in the Notes to the Financial Statements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for unrestricted spending at the end of the fiscal year. Approximately 13% of the total fund balance amount, or $2,285,605, constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is not available for new spending because it has already been committed for other purposes. As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported combined ending fund balances of $16,933,540, a decrease of $4,232,807, or 20 %, from the previous year. This reduction is primarily due to expenditures for the construction of the interchange at I- 35E /CSAH14. The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal year, unassigned fund balance of the general fund stood at $5,440,101, while the total fund balance was $5,605,180. As a measure of the general fund's liquidity, it may be useful to compare unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance represents 64% of total general fund expenditures, while total fund balance represents 66% of that same amount. The fund balance of the City of Lino Lakes' general fund decreased by $21,625 during the current fiscal year, while the city budget anticipated the use of up to $300,000 of the general fund balance. Overall, the continued soft real estate market again resulted in reduced building activities this year which decreased permit revenue. Even as signs of economic recovery were being seen, the remaining effects of the recession also had an impact on property tax delinquencies. In addition, reduced expenditures, primarily for personal services through vacant positions, and contractual services offset the reduced revenues. Overall, the general fund's revenues were within approximately 1.4% of the amended budget, while expenditures and transfers were 4.3% below budgeted levels. The G.O. improvement bonds 2005A fund has a total fund deficit of ($1,628,613). This fund is related to the bonds issued for the Legacy Woods Edge improvement project. The payment of debt service and delinquency in the collection of special assessments dedicated to this issue caused a significant decrease in this fund. An interfund loan from the Capital Improvements fund has aided in the payment of debt service for this issue. The Improvement Note 2009A fund, to service the debt issued to Anoka County as the City's financial commitment for the I -35E interchange project, ended the year with a fund balance of $491. This note was reduced during the year from the original $4,260,000 to $3,695,000 to reflect cost savings during the contruction of this project. The 135E Interchange fund has a fund balance deficit at year -end of ($6,842), reduced significantly due to the construction activities. The area and unit charge fund has a total fund balance of $3,828,636, of which $578,641 is nonspendable due to advances to other funds, and $3,249,995 is assigned for financing capital improvements. The fund balance during the current year increased by $249,726, due in large part to the increased special assessment collections in 2011. 17 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) Proprietary funds — The City of Lino Lakes' 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 assets at year -end of $17,857,797, of which $3,875,049 are unrestricted. The increase in net assets of $135,114 was primarily due to operating income and investment earnings. Total net assets in the sewer fund at the end of 2011 were $22,560,431, of which $7,326,313 was unrestricted. Net assets decreased $93,973 during the current year resulting primarily from operations, most notably increases in MCES sewage treatment costs. The water rates, which reflect water conservation efforts through a tiered rate structure, and sewer Rates were unchanged in 2011. A review of utility rates is scheduled for 2012. GENERAL FUND BUDGETARY HIGHLIGHTS The original budget was amended several times during the year reflecting donations and grants received primarily for police personnel and equipment, a reduction in expected state aid, and reallocating resources within the original budget. Revenues were $134,212 under budget for the year. This is due primarily to higher delinqencies in property tax collections. MSA maintenance payments came in over budget due to adjusted distribution formulas which increased the City's allocation. Investment earnings were slightly higher than the amended budget as a result of unrealized gains from increased market value of investments held. Lower building activity due to the recessed economy and, therefore, fewer new construction building permits being issued was also a factor. State intergovernmental revenues for police PERA aid were below budgeted levels for the year due to position vacancies. Local government grants were slightly over budget due to slightly higher grant funds allocated by the granting entity. Public safety charges for service were slightly over budget due to higher than expected traffic control contracts. Fines and forfeitures were over budgeted amounts due to the success of the City's Achieving Compliance through Education (ACE) program. Expenditures came in under the revenues by $720,339 due mainly to lower than expected personal services costs from vacant positions and reduced benefit costs. Energy costs for fuels and electricity were higher than budgeted amounts, and supplies costs were generally lower than anticipated. There were also net transfers from the general fund of $741,964. This resulted in a net fund balance decrease of $21,625 for the fiscal year. 18 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 CAPITAL ASSET AND DEBT ADMINISTRATION Capital assets — The City of Lino Lakes' investment in capital assets for its governmental and business - type activities as of December 31, 2011, is $71,689,298 (net of accumulated depreciation). This investment in capital assets includes land, buildings, office equipment and furniture, vehicles, machinery and equipment, other capital assets, and infrastructure. This represents a decrease in the City of Lino Lakes' investment in capital assets (net of accumulated depreciation) of approximately 1%. Due to the economic downturn, no new infrastructure projects were undertaken by the City, and therefore, the only additions were from projects in progress. The decrease within the governmental activities is attributable to the depreciation of constructed streets, underground infrastructure and vehicles. Within the business -type activities decreases were also attributable to depreciation of existing assets of the water and sewer funds. Land Construction in Progress Buildings Office Equipment and Furniture Vehicles Machinery and Shop Equipment Other Equipment Infrastructure Capital Assets, Net Capital Assets at Year -End (Net of Accumulated Depreciation) Governmental Activities Business -Type Activities 2011 2010 2011 2010 $ 3,275,859 $ 2,809,059 $ 211,705 - 3,542,239 3,728,690 - 447,690 360,674 1,192,147 1,223,361 - 197,507 232,749 204,551 232,546 271,875 - 32,967,803 33,323,819 29,417,251 $ 42,067,496 $ 41,950,227 $ 29,621,802 Total 2011 2010 $ - $ 3,275,859 $ 2,809,059 211,705 3,542,239 3,728,690 447,690 360,674 1,192,147 1,223, 361 182,348 402,058 415,097 232,546 271,875 30,260,287 62,385,054 63,584,106 $ 30,442,635 $ 71,689,298 $ 72,392,862 Additional information on the City's capital assets can be found in the notes to the financial statements on pages 34 -58. Long -term debt — At the end of the current fiscal year, the City of Lino Lakes had total bonded debt outstanding of $17,811,000. Of this amount $9,421,000 comprises tax supported debt, $7,985,000 is special assessment debt and $405,000 is revenue supported 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 carries a note to Anoka County for its share of the cost of the I -35E /County Road 14 Interchange project in the amount of $3,695,000. Outstanding Debt at Year -End Governmental Activities Business -Type Activities 2011 G.O. Bonds $ 9,421,000 $ 10,141,000 $ G.O. Special Assessment Bonds 7,985,000 9,175,000 G.O. Revenue Bonds - 405,000 Total Outstanding Debt $ 17,406,000 $ 19,316,000 $ 405,000 2010 2011 Total 2010 2011 2010 $ - $ 9,421,000 $ 10,141,000 - 7,985,000 9,175,000 795,000 405,000 795,000 $ 795,000 $ 17,811,000 $ 20,111,000 The City of Lino Lakes' total bonded debt decreased by $2,300,000 (11.4 %) during the current fiscal year. The key factors for the change include the issuance of $120,000 in 2011A Equipment Certificates and retirement of principal in the amount of $2,420,000 during the year. Additional information on the City's long -term debt can be found in the notes to the financial statements on pages 34 -58. 19 CITY OF LINO LAKES, MINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2011 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • The unemployment rate for the City of Lino Lakes at year -end is 5.9 %, which is a significant decrease from a rate of 7.1% a year ago. This is slightly higher than the state's average unemployment rate of 5.8% and significantly lower than the national average of 8.3% at the end of 2011. • Residential growth in the City has slowed significantly over the last several years due to the general residential real estate market downturn and current economic recession, with about one -third the number of new home permits issued in 2011 as in 2007, and less than 83% of new home permits issued in 2005. This is expected to level off in 2012, with hopes of the beginning of a recovery of the housing market in 2013. This, as well as falling property values of the existing tax base, will have a significant impact on the City's tax base for 2012 and beyond. • Energy costs, while relatively stable in recent months, are expected to continue to increase over the coming months. This will have an impact on the City's budget for the coming year and thereafter. • Property tax reforms and State budget deficits have significantly impacted state aid payments the City of Lino Lakes receives. Local government aid and market value homestead credit was reduced to zero for 2003 and 2004 -2011. The City is exempted from local government aid and the state legislature has discontinued the market value homestead credit in favor of a new market value exclusion, which excludes a portion of residential homestead property value from property taxes. • The Federal Reserve Board has continued the federal funds rates at historical lows, currently to between 0.00% — 0.25 %, which is expected to result in sizable decreases in the City's investment earnings. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City of Lino Lakes' finances for all of those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Director of Finance, City of Lino Lakes, 600 Town Center Parkway, Lino Lakes, Minnesota, 55014. 20 1 Y 1 BASIC FINANCIAL STATEMENTS CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS December 31, 2011 Statement 1 Governmental Business -type Activities Activities Total ASSETS Cash and investments $ 16,876,712 $ 10,224,890 $ 27,101,602 Accrued interest receivable 70,842 - 70,842 Accounts receivable 110,574 428,427 539,001 Due from other governments 150,962 1,728 152,690 Internal Balances (559,110) 559,110 Taxes receivable 441,759 - 441,759 Special assessments receivable 12,323,665 31,023 12,354,688 Long -term notes receivable 225,000 - 225,000 Prepaid items 167,448 19,572 187,020 Inventory - 27,433 27,433 Unamortized bond issue costs 198,063 344 198,407 Permanently restricted cash and investments 119,881 - 119,881 Capital assets: Land 3,275,859 - 3,275,859 Construction in progress 211,705 211,705 Other capital assets, net of depreciation 38,579,932 29,621,802 68,201,734 Total assets 72,193,292 40,914,329 113,107,621 LIABILITIES Accounts payable 160,539 22,857 183,396 Salaries payable 183,876 11,399 195,275 Contracts and retainage payable 4,820 - 4,820 Accrued interest payable 334,899 6,104 341,003 Due to other governments 1,186 - 1,186 Other accrued liabilities - 5,407 5,407 Non - current liabilities: Due within one year 2,554,343 432,646 2,986,989 Due in more than one year 19,291,513 17,688 19,309,201 Total liabilities 22,531,176 496,101 23,027,277 NET ASSETS Invested in capital assets, net of related debt 24,600,103 29,216,866 53,816,969 Restricted for: Debt service - expendable 11,478,922 11,478,922 Environmental improvements - nonexpendable 119,881 119,881 Unrestricted 13,463,210 11,201,362 24,664,572 Total net assets $ 49,662,116 $ 40,418,228 $ 90,080,344 The accompanying notes are an integral part of these basic financial statements. 21 CITY OF LINO LAKES, MINNESOTA STATEMENT OF ACTIVITIES Year Ended December 31, 2011 Functions/Programs Governmental activities: General government Public safety Public services Parks, recreation and forestry Conservation of natural resources Community development Interest on long -term debt Total governmental activities Business -type activities: Water Sewer Total business -type activities Total Expenses Charges for Services Program Revenues Capital Operating Grants Grants and and Contributions Contributions $ 1,990,137 $ 103,687 $ 4,019,101 713,985 8,110,979 382,287 1,218,472 210,976 139,544 4,392 617,747 5,138 927,535 - 17,023,515 1,420,465 966,643 1,638,063 2,604,706 $ 19,628,221 1,090,104 1,494,188 2,584,292 $ 4,004,757 10,341 $ 334,384 198,292 2,075 48,706 593,798 $ 593,798 89,937 7,257,676 7,347,613 731 731 1,462 $ 7,349,075 General revenues: Taxes: Property taxes, levied for general purpose Franchise taxes Other taxes Grants and contributions not restricted to specific programs Unrestricted investment earnings Gain on disposal of capital assets Transfers Total general revenues and transfers Change in net assets Net assets - beginning, as Previously Stated Prior Period Adjustment Net Assets - Beginning, as Restated Net assets - ending The accompanying notes are an integral part of these basic financial statements. 22 Statement 2 Net (Expense) Revenue and Changes in Net Assets Governmental Business -type Activities Activities Total $ (1,786,172) $ $ (1,786,172) (2,970,732) - (2,970,732) (272,724) (272,724) (1,005,421) (1,005,421) (86,446) (86,446) (612,609) (612,609) (927,535) (927,535) (7,661,639) (7,661,639) 124,192 124,192 (143,144) (143,144) (18,952) (18,952) (7,661,639) (18,952) (7,680,591) 8,513,559 8,513,559 149,118 149,118 106,128 106,128 4,072 4,072 251,250 126,215 377,465 37,579 37,579 66,122 (66,122) 9,127,828 60,093 9,187,921 1,466,189 41,141 1,507,330 47,729,127 40,377,087 88,106,214 466,800 - 466,800 48,195,927 40,377,087 88,573,014 $ 49,662,116 $ 40,418,228 $ 90,080,344 23 CITY OF LINO LAKES, MINNESOTA BALANCE SHEET - GOVERNMENTAL FUNDS December 31, 2011 G.O. Improvement Improvement Note Assets General Bonds 2005A 2009A Cash and investments $ 5,337,583 $ 2 $ 491 Cash and investments with escrow agent Accrued interest receivable 70,842 - Accounts receivable 86,822 Due from other governmental units 149,462 Interfund receivable - Taxes receivable: Delinquent 297,117 Due from county 98,305 Special assessments receivable: Delinquent - - Deferred 19,101 5,851,618 4,158,530 Due from county - - Long-term notes receivable - Prepaid items 165,079 Permanently restricted cash and investments - Advances to other funds Total assets $ 6,224,311 $ 5,851,620 $ 4,159,021 Liabilities and Fund Balances Liabilities: Interfund payable Accounts payable Salaries payable Contracts and retainage payable Due to other governmental units Advances from other funds Deferred revenue Total liabilities 113,145 183,762 4,820 1,186 316,218 619,131 $ 1,628,615 $ 5,851,618 4,158,530 7,480,233 4,158,530 Fund balances: Nonspendable 165,079 - Restricted - 491 Committed - Assigned - Unassigned 5,440,101 (1,628,613) - Total fund balances 5,605,180 (1,628,613) 491 Total liabilities and fund balances $ 6,224,311 $ 5,851,620 $ 4,159,021 The accompanying notes are an integral part of these basic financial statements. 24 1 1 I35E 1 Interchange $ 1 1 1 1 1 $ 3,759 3,083 1 6,842 1 (6,842) (6,842) 1 1 1 1 1 1 Statement 3 Area and Other Unit Governmental Charge Funds $ 3,217,984 $ 8,320,652 23,752 87,103 1,097,666 8,375 578,641 1,500 2,008,599 34,824 11,513 41,823 1,055,990 3,459 225,000 2,369 119,881 $ 5,013,521 $ 11,825,610 116 1,184,769 1,184,885 578,641 3,249,995 3,828,636 $ 5,013,521 $ 935,335 44,195 114 578,641 1,132,637 2,690,922 Total Governmental Funds $ 16,876,712 70,842 110,574 150,962 2,008,599 331,941 109,818 128,926 12,182,905 11,834 225,000 167,448 119,881 578,641 $ 33,074,083 $ 2,567,709 160,539 183,876 4,820 1,186 578,641 12,643,772 16,140,543 327,369 1,071,089 2,657,519 2,658,010 110,568 110,568 7,558,273 10,808,268 (1,519,041) 2,285,605 9,134,688 16,933,540 $ 11,825,610 $ 33,074,083 25 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2011 Total Fund Balances for Governmental Funds Total net assets reported for governmental activities in the statement of net assets is different because: Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. Those assets consist of: Land Construction in Progress Buildings, Net of Accumulated Depreciation Office Equipment and Furniture, Net of Accumulated Depreciation Vehicles, Net of Accumulated Depreciation Machinery and Shop Equipment, Net of Accumulated Depreciation Other Equipment, Net of Accumulated Depreciation Infrastructure, Net of Accumulated Depreciation Some of the City's property taxes and special assessments will be collected after year -end, but are not available soon enough to pay for the current period's expenditures and, therefore, are reported as deferred revenue in the governmental funds. Bond issuance costs are reported as expenditures in the governmental funds and are shown net of accumulated amortization on the statement of net assets. Interest on long -term debt is not accrued in governmental funds, but rather is recognized as an expenditure when due. Accrued interest for general obligation bonds is included in the statement of net assets. Long -term liabilities that pertain to governmental funds, including bonds payable, are not due and payable in the current period and, therefore, are not reported as fund liabilities. All liabilities - both current and long -term - are reported in the statement of net assets. Balances at year -end are: Bonds Payable Unamortized Premiums Unamortized Discounts Notes Payable Other Post Employment Benefits Compensated Absence Payable Total Net Assets of Governmental Activities The accompanying notes are an integral part of these basic financial statements. 26 $ 3,275,859 211,705 3,542,239 447,690 1,192,147 197,507 232,546 32,967,803 Statement 4 $ 16,933,540 42,067,496 12,643,772 198,063 (334,899) (17,406,000) (89,014) 27,621 (3,695,000) (72,808) (610,655) (21,845,856) $ 49,662,116 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS Year Ended December 31, 2011 Revenue: General property taxes Tax increments Licenses and permits Intergovernmental Special assessments Charges for services Fines and forfeits Investment earnings Refunds Miscellaneous Total revenue Expenditures: Current: General government Public safety Public works Parks, recreation and forestry Conservation of natural resources Community development Capital outlay: General government Public safety Public works Parks, recreation and forestry Conservation of natural resources Community development Debt service: Principal Interest and fiscal charges Total expenditures Revenue over (under) expenditures Other financing sources (uses): Transfer in Transfer out Sale of property Issuance of debt Loan payable reapportionment Total other financing sources (uses) Net increase (decrease) in fund balance Fund balance - beginning of year Fund balance - December 31 General $ 7,499,109 322,030 590,392 21,813 367,037 154,020 54,390 27,641 149,978 9,186,410 1,761,776 3,791,329 1,324,246 852,717 134,122 572,284 500 6,479 22,250 368 8,466,071 720,339 (741,964) (741,964) (21,625) 5,626,805 $ 5,605,180 G.O. Improvement Improvement Note Bonds 2005A 2009A $ - $ 315,000 219,848 534,848 (534,848) The accompanying notes are an integral part of these basic financial statements. 27 (534,848) (1,093,765) $ (1,628,613) 47,476 47,476 153,410 153,410 (105,934) 106,000 106,000 66 425 $ 491 135E Interchange 13,792 3,706,142 3,719,934 (3,719,934) 83,333 (565,000) (481,667) (4,201,601) 4,194,759 $ (6,842) Statement 5 Area and Other Total Unit Governmental Governmental Charge Funds Funds $ $ 912,149 $ 8,411,258 244,713 244,713 322,030 741,522 1,331,914 440,741 394,492 904,522 240,816 204,751 812,604 154,020 72,550 124,304 251,244 27,641 283,091 433,069 754,107 2,905,022 12,893,015 25,731 11,739 1,773,515 3,791,329 828,963 2,192,732 206,474 1,059,191 134,122 52,002 624,286 11,543 12,043 175,696 182,175 256,033 3,962,175 30,582 30,582 22,250 368 1,715,000 2,030,000 609,871 983,129 25,731 3,897,903 16,797, 897 728,376 (992,881) (3,904,882) 2,782,382 2,971,715 (478,650) (1,684,979) (2,905,593) 50,953 50,953 120,000 120,000 (565,000) (478,650) 1,268,356 (327,925) 249,726 275,475 (4,232,807) 3,578,910 8,859,213 21,166,347 $ 3,828,636 $ 9,134,688 $ 16,933,540 28 CITY OF LINO LAKES, MINNESOTA Statement 6 RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES Year Ended December 31, 2011 Net Change in Fund Balances -Total Governmental Funds 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, assets are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. Capital outlays $ 603,226 Contributed capital assets 1,980,000 Proceeds from sales of capital assets (50,953) Depreciation expense (2,919,383) $ (4,232,807) (349,531) The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported as an expenditure. In the statement of net assets, however, issuing debt increases long -term liabilities and does not affect the statement of activities and repayment of principal reduces the liability. Also, governmental funds report the effect of issuance costs, premiums and discounts when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Interest is recognized as an expenditure in the governmental funds when it is due. In the statement of activities, however, interest expense is recognized as it accrues, regardless of when it is due. The net effect of these differences in the treatment of general obligation bonds and related items is as follows: Issuance of equipment certificates (120,000) Repayment of bond principal 2,595,000 Change in accrued interest expense for general obligation bonds 76,214 Amortization of bond issuance costs (31,237) Amortization of bond premium 13,087 Amortization of bond discount (2,470) 2,530,594 Delinquent and deferred property taxes and special assessments receivable will be collected subsequent to year -end, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in the governmental funds. Deferred revenue - December 31, 2010 Deferred revenue - December 31, 2011 9,130,784 12,643,772 3,512,988 In the statement of activities, compensated absences and other post employment benefits are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). During fiscal year 2011, compensated absence payable and other post employment benefits payable decreased. 4,945 Change in Net Assets of Governmental Activities $ 1,466,189 The accompanying notes are an integral part of these basic financial statements. 29 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS - PROPRIETARY FUNDS December 31, 2011 Statement 7 Assets Current assets: Cash and cash equivalents Accounts receivable Due from other governmental units Interfund receivable Special assessments receivable Due from county - special assessments Prepaid items Total current assets Non - current assets: Special assessments, long term Inventory Unamortized bond issue costs Capital assets being depreciated: Buildings Equipment Water and sewer systems Total capital assets Less: allowance for depreciation Net capital assets Total noncurrent assets Total assets Liabilities Current liabilities: Accounts payable Salaries payable Deferred Revenue Accrued interest payable Bonds payable - current portion Compensated absences payable - current portion Total current liabilities Non - current liabilities: Compensated absences payable - long term Total liabilities Net assets Invested in capital assets, net of related debt Unrestricted Total net assets The accompanying notes are an integral part of these basic financial statements. 30 Water $ 3,649,473 217,426 12,997 1,644 8,640 3,890,180 Sewer $ 6,575,417 211,001 1,728 559,110 1,644 10,932 7,359,832 Total 2011 $ 10,224,890 428,427 1,728 559,110 12,997 3,288 19,572 11,250,012 14,738 14,738 27,433 27,433 344 - 344 48,690 - 48,690 152,648 340,843 493,491 19,784,263 21,258,093 41,042,356 19,985,601 21,598,936 41,584,537 (5,597,917) (6,364,818) (11,962,735) 14,387,684 15,234,118 29,621,802 14,430,199 15,234,118 29,664,317 18,320,379 22,593,950 40,914,329 17,736 5,700 5,407 6,104 404,936 13,855 453,738 8,844 462,582 5,121 5,699 13,855 24,675 8,844 33,519 22,857 11,399 5,407 6,104 404,936 27,710 478,413 17,688 496,101 13,982,748 15,234,118 29,216,866 3,875,049 7,326,313 11,201,362 $ 17,857,797 $ 22,560,431 $ 40,418,228 CITY OF LINO LAKES, MINNESOTA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS Year Ended December 31, 2011 Statement 8 Total Water Sewer 2011 Operating revenue: Charges for services $ 1,054,977 $ 1,486,616 $ 2,541,593 Hook -up charges 9,260 7,220 16,480 Water meter sales 10,561 10,561 Other operating revenue 15,306 352 15,658 Total operating revenue 1,090,104 1,494,188 2,584,292 Operating expenses: Personal services 175,906 177,758 353,664 Materials and supplies 154,450 73,029 227,479 Contractual services 92,345 163,233 255,578 MCES sewer charges - 720,986 720,986 Depreciation 421,616 446,577 868,193 Utilities 80,906 42,251 123,157 Other 19,903 14,229 34,132 Total operating expenses 945,126 1,638,063 2,583,189 Net income from operations 144,978 (143,875) 1,103 Other income (expense): Investment earnings 43,983 82,232 126,215 Special assessments 731 731 1,462 Bond interest (15,864) (15,864) Paying agent fees (5,653) (5,653) Total other income (expense) 23,197 82,963 106,160 Net income before contributions and transfers 168,175 (60,912) 107,263 Transfers: Transfer out (33,061) (33,061) (66,122) Change in Net Assets 135,114 (93,973) 41,141 Net Assets - January 1 17,722,683 22,654,404 40,377,087 Net Assets - December 31 $ 17,857,797 $ 22,560,431 $ 40,418,228 The accompanying notes are an integral part of these basic financial statements. 31 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS Year Ended December 31, 2011 Statement 9 Cash flows from operating activities: Cash receipts from customers Cash paid to suppliers Cash paid to employees Net cash flows from operating activities Cash flows from noncapital financing activities: Net transfers Cash flows from capital and related financing activities: Principal paid on revenue bonds Collection of special assessments Interest and paying agent fees on revenue bonds Acquisition of capital assets Net cash flows from (used) by capital and related financing activities Cash flows from investing activities: Interest on investments Net increase in cash and cash equivalents Cash and cash equivalents - January 1 Cash and cash equivalents - December 31 Reconciliation of operating income to net cash from operating activities: Operating income Adjustments to reconcile operating income to net cash flows from operating activities: Depreciation Change in assets and liabilities: (Increase) decrease in receivables Decrease in prepaid items Decrease in inventory Decrease in payables Net cash flows from operating activities The accompanying notes are an integral part of these basic financial statements. 32 Water $ 1,046,220 (356,940) (173,231) 516,049 (33,061) (390,000) 9,679 (22,468) (29,837) (432,626) 43,983 94,345 3,555,128 $ 3,649,473 Sewer $ 1,498,862 (1,019,639) (174,083) 305,140 Total 2011 $ 2,545,082 (1,376,579) (347,314) 821,189 (33,061) (66,122) (390,000) 1,030 10,709 - (22,468) (17,524) (47,361) (16,494) (449,120) 82,232 126,215 337,817 432,162 6,237,600 9,792,728 $ 6,575,417 $ 10,224,890 $ 144,978 $ (143,875) $ 421,616 446,577 (49,083) 4,674 781 635 143 - (2,386) (2,871) $ 516,049 $ 305,140 1,103 868,193 (44,409) 1,416 143 (5,257) $ 821,189 CITY OF LINO LAKES, MINNESOTA STATEMENT OF NET ASSETS - FIDUCIARY FUNDS - AGENCY FUNDS December 31, 2011 Statement 10 2011 Assets Cash and investments $ 700,980 Liabilities Deposits payable $ 700,980 The accompanying notes are an integral part of these financial statements. 33 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Lino Lakes is a public corporation formed under Minnesota Statute 410. As such, the City is under home rule charter regulations and applicable statutory guidelines. The basic financial statements of the City of Lino Lakes have been prepared in conformity with U.S. generally accepted accounting principles as applied to governmental units by the Governmental Accounting Standards Board (GASB). The following is a summary of the significant accounting policies: A. FINANCIAL REPORTING ENTITY As required by U.S. generally accepted accounting principles, the financial statements of the reporting entity include those of the City of Lino Lakes and its component units. A component unit is a legally separate entity for which the primary government is financially accountable, or for which the exclusion of the component unit would render the financial statements of the primary government misleading. The criteria used to determine if the primary government is financially accountable for a component unit include whether or not the primary government appoints the voting majority of the potential component unit's board, is able to impose its will on the potential component unit, is in a relationship of financial benefit or burden with the potential component unit, or is fiscally depended upon by the potential component unit. COMPONENT UNITS In conformity with U.S. generally accepted accounting principles, the financial statements of component units have been included in the financial reporting entity either as blended component units or as discretely presented component units. Blended Component Units The Economic Development Authority (EDA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the EDA is reported as if it were part of the City's operations because the members of the City Council serve as commission members. The EDA does not issue separate financial statements. The Housing and Redevelopment Authority (HRA) of Lino Lakes is an entity legally separate from the City. However, for financial reporting purposes, the HRA is reported as if it were part of the City's operations because the members of the City Council serve as commission members. The HRA has not yet incurred any financial activity. B. BASIC FINANCIAL STATEMENTS 1. Government -Wide Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) display information about the primary government and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. 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 to external parties for support. As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements. Exceptions to this general rule are charges between the City's enterprise funds and various other functions of government. Eliminations of these charges would distort the direct costs and program revenues reported for the various functions concerned. 34 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 1. Government -Wide Statements (Continued) In the government -wide statement of net assets, both the governmental and business -type activities columns: (a) are presented on a consolidated basis by column; and (b) are reported on a full accrual, economic resource basis, which recognizes all long -term assets and receivables as well as long -term debt and obligations. The City's net assets are reported in three parts: (1) invested in capital assets, net of related debt; (2) restricted net assets; and (3) unrestricted net assets. The City first utilizes restricted resources to finance qualifying activities. The statement of activities demonstrates the degree to which the direct expenses of each function of the City's governmental activities and different business -type activities are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or activity. Program revenues include: (1) fees, fines, and charges paid by the recipients of goods, services, or privileges provided by a given function or activity; and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or activity. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 2. Fund Financial Statements The fund financial statements provide information about the City's funds, including its fiduciary funds and blended component unit. Separate statements for each fund category (governmental, proprietary, and fiduciary) are presented. The emphasis of governmental and proprietary fund financial statements is on major individual governmental and enterprise funds, with each 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 The general fund is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. General Obligation Improvement Bonds 2005A Fund The general obligation improvement bonds 2005A fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long -term debt. Improvement Note 2009F Fund The improvement note 2009F fund accounts for the accumulation of resources for, and the payment of, interest, principal and related costs on general long -term debt. I35E Interchange Fund The I35E interchange fund accounts for the activity related to the I35E /CSAH 14 Interchange Reconstruction Project. 35 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. BASIC FINANCIAL STATEMENTS (CONTINUED) 2. Fund Financial Statements (Continued) Area and Unit Charge Fund The area and unit charge fund accounts for the collection of water and sewer unit charges to be used for debt payments and construction of infrastructure. The City reports the following major proprietary funds: Water Fund The water fund accounts for customer water service charges that are used to finance water operating expenses. Sewer Fund The sewer fund accounts for customer water service charges that are used to finance water operating expenses. Additionally, the City reports the following fiduciary funds: Agency Funds - to account for assets held as an agent for individuals, private organizations, other governmental units, and/or other funds. The City's agency fund accounts for pass- through contractor's deposits relating to prospective developments. C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The government -wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds, which are included in the Fiduciary Funds, do not have a measurement focus. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Private - sector standards of accounting and financial reporting issued on or before November 30, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private - sector guidance for their business -type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private- sector guidance. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. The City considers all revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long -term debt, compensated absences, and claims and judgments, which are recognized as expenditures to the extent that they have matured. Proceeds of general long -term debt and acquisitions under capital leases are reported as other financing sources. 36 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING (CONTINUED) Amounts reported as program revenues include: 1. Charges to customers or applicants for goods, services, or privleges provided, 2. operating grants and contributions, and 3. capital grants and contributions, including special assessments. 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 revenue of the City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, 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 U.S. generally accepted accounting principles. Annual appropriated budgets are adopted for the General Fund and the Program Recreation Special Revenue Fund. Budgeted expenditure appropriations lapse at year -end. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the appropriation, is not employed by the City because it is not presently considered necessary to assure effective budgetary control or to facilitate effective cash management. E. LEGAL COMPLIANCE — BUDGETS The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget (including the General Fund and Program Recreation Special Revenue Fund) for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. 3. The budget is legally enacted through passage of a resolution on a departmental basis and can be expended by each department based upon detailed budget estimates for individual expenditure accounts. 4. The City Administrator is authorized to transfer appropriations within any department budget. Additional interdepartmental or interfund appropriations and deletions are or may by authorized by the City Council with fund (contingency) reserves or additional revenues. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund. 6. Legal debt obligation indentures determine the 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. 37 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. LEGAL COMPLIANCE — BUDGETS (CONTINUED) 7. A capital improvement program is reviewed periodically by the City Council for the Capital Project Funds. However, appropriations 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 investments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of an advance from another fund shown as interfund receivables in the advancing fund in the governmental fund financial statements, and an interfund payable in the fund with the deficit, until adequate resources are received. These interfund payables are eliminated for statement of net assets presentation. Investments are stated at fair value and interest earnings are accrued at year -end. For purposes of the statement of cash flows the Proprietary Fund considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. All of the cash and investments allocated to the proprietary fund types have original maturities of 90 days or less. Therefore, the entire balance in such fund types is considered cash equivalents. Permanently restricted cash and investments represents the principal portion of resources received that must be retained in a permanent fund. Only earnings from these funds may be used for purposes that support environmental maintenance and improvements. G. PROPERTY TAX CREDITS Property taxes on homestead property (as defined by State Statutes) are partially reduced by property tax credits. These credits are paid to the City by the State in lieu of taxes levied against homestead property. The State remits these credits through installments each year. These credits are recognized as revenue by the City at the time of collection. 38 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. 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 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 State credits received by the City in July, December and the following January are recognized as revenue for the current year. Taxes and credits not received at the year -end are classified as delinquent and due from County taxes receivable. The portion of delinquent taxes not collected by the City in January is fully offset by deferred revenue because it is not available to finance current expenditures. Deferred revenue in governmental activities is susceptible to full accrual on the government - wide statements. The City's property tax revenue includes payments from the Metropolitan Revenue Distribution (Fiscal Disparities Formula) per State 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. Property taxes paid to the City through this formula for 2011 totaled $1,096,862. Receipt of property taxes from this "fiscal disparities pool" does not increase or decrease total tax revenue. I. SPECIAL ASSESSMENT REVENUE RECOGNITION Special assessments are levied against benefited 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. 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 revenues. Deferred revenue in governmental activities is susceptible to full accrual on the government -wide statements. 39 1 1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31,I2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. SPECIAL ASSESSMENT REVENUE RECOGNITION (CONTINUED) Once a special assessment roll is adopted, the amount attributed to each parcel is a lien upon that property until full payment is made or the amount is determined to be excessive by the City Council or court action. If special assessments are allowed to go delinquent, the property is subject to tax forfeit sale and the first proceeds of that sale (after costs, penalties and expenses of sale) are remitted to the City in payment of delinquent special assessments. Generally, the City will collect the full amount of its special assessments not adjusted by City Council or court action. Pursuant to State Statutes, a property shall be subject to a tax forfeit sale after three years unless it is homesteaded, agricultural or seasonal recreational land in which event the property is subject to such sale after five years. J. INVENTORIES The original cost of materials and supplies has been recorded as expenditures /expenses at the time of purchase in both the Governmental and Proprietary Funds. These funds do not maintain material amounts of materials and supplies. K. INTERFUND RECEIVABLES/PAYABLES During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. The year -end balances are classified as interfund receivables and payables on the governmental fund balance sheets. The non - current portion of interfund loans are reported as "advances to /from other funds." Advances between funds are offset by a nonspendable fund balance account in applicable governmental funds to indicate they are not available for appropriation and are not expendable from available financial resources. L. CAPITAL ASSETS Capital assets, which include property, plant, 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 exceeding the City's capitalization threshold of $2,500 are recorded at historical cost or estimated historical cost if purchased or constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. All existing City infrastructure has been capitalized regardless of date placed in service. Depreciation on exhaustible assets is recorded as an allocated expense in the Statement of Activities with accumulated depreciation reflected in the Statement of Net Assets. Capital assets are depreciated using the straight -line method over their estimated useful lives. Since surplus assets are sold for an immaterial amount when declared as no longer needed for City purposes, no salvage value is taken into consideration for depreciation purposes. Useful lives vary from 3 to 30 years for Buildings, Office Furniture and Equipment, Vehicles, Machine Shop and Equipment and Other assets, and 25 to 50 years for Infrastructure. Capital assets not being depreciated include land and construction in progress. 40 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. COMPENSATED ABSENCES It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay and the portion of sick pay allowable as severance pay is accrued as incurred in the government -wide and proprietary fund financial statements. The current portion is calculated based on historical trends. N. LONG -TERM OBLIGATIONS In the entity -wide financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight -line method. Bond issue costs, if material, are amortized over the term of the related debt using the straight -line method. In the governmental fund financial statements, bond premiums and discounts, as well as bond issue costs are recognized during the current period. The face amount of the debt issue is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures. O. FUND EQUITY At December 31, 2011, the City adopted GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. In the fund financial statements, governmental funds report fund balances in classifications that disclose constraints for which amounts in those funds can be spent. These classifications are as follows: Nonspendable — portions of fund balance related to prepaids, inventories, long -term receivables, and corpus on any permanent fund. Restricted — funds are constrained by external parties (statute, grantors, bond agreements, etc). Committed — funds are established and modified by a resolution approved by the City Council. Assigned — consists of internally imposed constraints. These constraints are established by the City Council and/or management. The City Council also delegates the authority to assign fund balance to the Finance Director. Unassigned — is the residual classification for the General Fund and also reflects negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, it is the City's policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned, and unassigned amounts are available, it is the City's policy to use committed first, then assigned, and finally unassigned amounts. The City formally adopted a fund balance policy for the General Fund. The policy establishes an unassigned fund balance range of 40% - 50% of General Fund operating expenditures. 41 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. INTERFUND TRANSACTIONS 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 or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All Interfund transactions are eliminated except for activity between governmental activities and business - type activities for presentation in the entity-wide statements of net assets and statements of activities. Q. PRIOR PERIOD ADJUSTMNENT The amount of land at December 31, 2010 was understated due to unrecorded donated land from previous years. A total of $466,800 was added to the beginning balance of land and the adjustment was posted to beginning net assets on the government -wide statement of activities. Note 2 DEPOSITS AND INVESTMENTS A. Components of Cash and Investments Cash and investments at year -end consists of the following: Deposits Investments Cash on Hand Total Cash and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Assets Cash and Investments - Statement of Net Assets - Fiduciary Funds Total $ 4,532,173 23,389,470 820 $ 27,922,463 $ 27,221,483 700,980 $ 27,922,463 Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net assets and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council. 42 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) A. Deposits (Continued) Custodial Credit Risk — Custodial credit risk for deposits is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a specific deposit policy for custodial credit risk but rather follows Minnesota Statutes for deposits Minnesota Statutes require that all deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or corporate surety bonds. Authorized collateral include: U.S. government treasury bills, notes, or bonds; issues of a U.S. government agency; general obligations of a state or local government rated "A" or better; revenue obligations of a state or local government rated "AA" or better; irrevocable standby letter of credit issued by a Federal Home Loan Bank; and time deposits insured by a federal agency Minnesota Statutes require securities pledged as collateral be held in safekeeping in a restricted account at the Federal Reserve Bank or at an account at a trust department of a commercial bank or other financial institution not owned or controlled by the depository. The carrying value and bank balance of the City's deposits in banks at December 31, 2011 is $4,532,173 and $4,770,040, respectively, and were entirely covered by federal depository insurance or by surety bonds and collateral in accordance with Minnesota Statutes. B. Investments The City may also invest idle funds as authorized by Minnesota Statutes as follows: • Direct obligations or obligations guaranteed by the United States or its agencies • Shares of investment companies registered under the Federal Investment Company Act of 1940 and received the highest credit rating, is rated in one of the two highest rating categories by a statistical rating agency, and all of the investments have a final maturity of thirteen months or less • General obligations rated "A" or better; revenue obligations rated "AA" or better • General obligations of the Minnesota Housing Finance Agency rated "A" or better • Banker's acceptances of United States banks eligible for purchase by the Federal Reserve System • Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by a least two nationally recognized rating agencies, and maturing in 270 days or less • Guaranteed investment contracts guaranteed by United States commercial banks or domestic branches of foreign banks or United States insurance companies if similar debt obligations of the issuer or the collateral pledged by the issuer is in the top two rating categories • Repurchase or reverse purchase agreements and securities lending agreements financial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers Investments Held with Broker — Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. Generally, the 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. Information about the sensitivity of the fair values of the City's investments to market interest rate risk fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: 43 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) Type Minnesota Municipal Money Market Trust Fund Federal Farm Credit Banks Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assn. Negotiable CDs Municipal Bonds Mutual Fund Total Credit Risk 12 Months 13 to 24 Total or Less Months $ 66,659 $ 66,659 $ 300,878 1,302,457 1,382,033 3,002,642 12,077,180 12,077,180 4,986,283 385,022 271,338 271,338 $ 23,389,470 $ 12,800,199 25 to 60 More than Months 60 Months $ - $ 300,878 1,302,457 300,215 1,081,818 1,550,956 1,451,686 682,673 2,126,401 1,792,187 $ 682,673 $ 4,278,450 $ 5,628,148 Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. The City's policy to minimize credit risk includes limiting investing funds to those allowable under Minnesota Statute 118A, annually appointing all financial institutions where investments are held, and diversifying the investment portfolio. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following chart summarizes year -end ratings for the City's investments as rated by Moody's Investors Service: Type Minnesota Municipal Money Market Trust Fund Federal Farm Credit Banks Federal Home Loan Bank Federal Home Loan Mortgage Corp. Federal National Mortgage Assn. Negotiable CDs Municipal Bonds Mutual Fund Total Credit Quality Rating Aa2 Aaa/AA+ Aaa/AA+ Aaa/AA+ Aaa/AA+ Not Rated A -Aaa Not Rated Amount $ 66,659 300,878 1,302,457 1,382,033 3,002,642 12,077,180 4,986,283 271,338 $ 23,389,470 The Minnesota Municipal Money Market Fund Trust is a common law trust organized in accordance with the Minnesota Joint Powers Act, which invests only in investment instruments allowable under Minnesota statutes as described on the previous page. Its investments are valued at amortized cost, which approximates market value in accordance with Rule 2a -7 of the Investment Company Act of 1940. The amortized cost method of valuation values a security at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the fair value of instruments. The Minnesota Municipal Money Market Trust Fund does not have its own credit rating. MBIA, Inc., who administers the Minnesota Municipal Money Market Fund Trust holds an organization credit rating of Aa2. For an investment, custodial credit risk is the risk that, in the event of failure of the counterparty, the City will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. The City's investment policy doesn't specifically address custodial credit risk. 44 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 2 DEPOSITS AND INVESTMENTS (CONTINUED) Concentration of Credit Risk The City places no limit on the amount that it may invest in any one issuer. The following is a list of investments which individually comprise more than 5% of the City's total investments: Type Amount Percentage Federal Home Loan Bank $ 1,302,457 5.57% Federal Home Loan Mortgage Corporation 1,382,033 5.91% Federal National Mortgage Association 3,002,641 12.84% Note 3 CAPITAL ASSETS Capital asset activity for the year ended December 31, 2011 was as follows: Beginning Beginning Prior Period Balance, Ending Balance Adjustment as Restated increases Decreases Balance Governmental Activities: Capital Assets, Not Being Depreciated: Land $ 2,809,059 $ 466,800 $ 3,275,859 $ - $ $ 3,275,859 Construction in Progress - - - 211,705 211,705 Total Capital Assets, Not Being Depreciated 2,809,059 466,800 3,275,859 211,705 3,487,564 Capital Assets, Being Depreciated: Buildings 6,499,752 6,499,752 30,582 6,530,334 Office Equipment and Fumiture 1,160,889 1,160,889 160,255 (14,755) 1,306,389 Vehicles 2,348,111 2,348,111 200,684 (172,166) 2,376,629 Machinery and Shop Equipment 693,565 693,565 693,565 Other Equipment 980,308 980,308 (27,860) 952,448 Infrastructure 75,713,197 - 75,713,197 1,980,000 - 77,693,197 Total Capital Assets, Being Depreciated 87,395,822 - 87,395,822 2,371,521 (214,781) 89,552,562 Accumulated Depreciation for: Buildings (2,771,062) (2,771,062) (217,033) (2,988,095) Office Equipment and Furniture (800,215) (800,215) (71,911) 13,427 (858,699) Vehicles (1,124,750) (1,124,750) (223,567) 163,835 (1,184,482) Machinery and Shop Equipment (460,816) - (460,816) (35,242) - (496,058) Other Equipment (708,433) (708,433) (35,614) 24,145 (719,902) Infrastructure (42,389,378) (42,389,378) (2,336,016) - (44,725,394) Total Accumulated Depreciation (48,254,654) (48,254,654) (2,919,383) 201,407 (50,972,630) Total Capital Assets, Being Depreciated, Net 39,141,168 39,141,168 (547,862) (13,374) 38,579,932 Governmental Activities Capital Assets, Net $ 41,950,227 $ 466,800 $ 42,417,027 $ (336,157) $ (13,374) $ 42,067,496 Depreciation expense was charged to governmental functions as follows: Governmental Activities: General Govemment $ 244,716 Public Safety 91,629 Public Services 2,423,523 Parks, Recreation and Forestry 158,665 Conservation of Natural Resources 350 Community Development 500 Total Depreciation Expense, Governmental Activities $ 2,919,383 45 i 1 e 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 3 CAPITAL ASSETS (CONTINUED) Beginning Ending Balance Increases Decreases Balance Business -Type Activities: Capital Assets, Not Being Depreciated: Construction in Progress Total Capital Assets, Not Being Depreciated Capital Assets, Being Depreciated: Buildings 48,690 - - 48,690 Machinery and Shop Equipment 464,203 47,360 (18,072) 493,491 Water and Sewer Lines 41,042,356 - - 41,042,356 Total Capital Assets, Being Depreciated 41,555,249 47,360 (18,072) 41,584,537 Accumulated Depreciation for: Buildings (48,690) - - (48,690) Machinery and Shop Equipment (281,855) (25,157) 18,072 (288,940) Water and Sewer Lines (10,782,069) (843,036) - (11,625,105) Total Accumulated Depreciation (11,112,614) (868,193) 18,072 (11,962,735) Total Capital Assets, Being Depreciated, Net 30,442,635 (820,833) - 29,621,802 Business -Type Capital Assets, Net $ 30,442,635 $ (820,833) $ - S 29,621,802 46 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 4 CITY INDEBTEDNESS City indebtedness at December 31, 2011 is composed of the following: Final Issue Maturity Interest Original Date Date Rate Issue Payable 12/31/2011 Govemmental Activities: General Obligation Bonds: 2008A Equipment Certificates 2/1/2008 12/31/2011 4.00% $ 209,000 $ - 2009A Equipment Certificates 4/1/2009 12/31/2012 3.00% 336,000 118,000 2010A Equipment Certificates 4/1/2010 12/31/2013 2.00 % - 3.00% 170,000 118,000 2011A Equipment Certificates 2/14/11 12/31/2014 1.00% 120,000 120,000 G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00 % -4.30% 2,460,000 2,430,000 G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00 % -4.15% 570,000 370,000 G.O. CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 2,605,000 G.O. Tax Increment Financing Bonds, Series 2007A 7/15/2007 2/1/2024 4.00 % - 4.125% 4,215,000 3,660,000 Total General Obligation Bonds 11,070,000 9,421,000 Special Assessment Bonds: G.O. Improvement Bonds, Series 2002A 8/1/2002 2/1/2013 3.00% -4.10% 645,000 60,000 G.O. Improvement Bonds, Series 2002B 8/1/2002 2/1/2013 3.20% -5.55% 2,110,000 515,000 G.O. Improvement Refunding Bonds, Series 2003A 12/1/2003 2/1/2019 2.00 % -4.25% 2,090,000 545,000 G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20% -5.60% 250,000 95,000 G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35% -5.15% 5,550,000 4,180,000 G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75 % -5.00% 3,755,000 1,690,000 G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A 7/9/2010 2/1/2020 2.00 % - 3.00% 1,000,000 900,000 Total Special Assessment Bonds 15,400,000 7,985,000 Total Bonds 26,470,000 17,406,000 Note Payable - Anoka County - 2009A 8/1/2009 8/1/2024 4.00 % -3.70% 4,260,000 3,695,000 Unamortized Bond Discounts (45,490) (27,621) Unamortized Bond Premiums 202,370 89,014 Compensated Absences Payable N/A 610,655 Other Post Employment Benefit Plan N/A 72,808 Total Governmental Activities $ 30,886,880 $ 21,845,856 Business -Type Activities: Revenue Bonds: G.O. Water Revenue Refunding Bonds, Series 2006F 11/1/2006 2/1/2012 3.55 % - 3.625% $ 1,740,000 $ 405,000 Unamortized Bond Discounts (4,002) (64) Compensated Absences Payable N/A 45,398 Total Business -Type Activities $ 1,735,998 $ 450,334 47 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 4 CITY INDEBTEDNESS (CONTINUED) The following is a schedule of changes in City indebtedness for the year ended December 31, 2011: Payable Payable Due Within 12/31/2010 Issues Payments 12/31/2011 One Year Governmental activities: Bonded debt: General Obligation $ 10,141,000 $ 120,000 $ 840,000 $ 9,421,000 $ 940,000 Special Assessment 9,175,000 1,190,000 7,985,000 1,205,000 Unamortized Bond Discounts (30,091) (2,470) (27,621) - Unamortized Bond Premiums 102,101 13,087 89,014 Note Payable - Anoka County 4,260,000 - 565,000 3,695,000 - Compensated Absences Payable 625,121 547,346 561,812 610,655 409,343 Other Post Employment Benefit Plan 63,287 27,268 17,747 72,808 - Total Governmental Activities 24,336,418 694,614 3,185,176 21,845,856 2,554,343 Business -Type Activities: Revenue Bonds 795,000 Unamortized Bond Discounts (826) Compensated Absences Payable 41,104 Total Business -Type Activities 835,278 Total 37,050 37,050 390,000 405,000 405,000 (762) (64) (64) 32,756 45,398 27,710 421,994 450,334 432,646 $ 25,171,696 $ 731,664 $ 3,607,170 $ 22,296,190 $ 2,986,989 All long -term bonded indebtedness outstanding at December 31, 2011 is backed by the full faith and credit of the City, including special assessment bond issues. For the governmental activities, compensated absences are generally liquidated by the general fund. Minimum annual principal and interest payments required to retire long -term debt, not including compensated absences payable are as follows. Years ending December 31, 2012 2013 2014 2015 2016 2017 -2021 2022 -2024 Total Description and Restrictions of Long -Ter Governmental Activities Business -Type Activities Principal Interest Principal Interest Total $ 2,145,000 $ 807,928 $ 405,000 $ 7,341 $ 3,365,269 2,175,000 748,305 - 2,923,305 1,931,000 658,459 2,589,459 2,260,000 578,331 2,838,331 1,940,000 494,390 2,434,390 8,375,000 1,418,405 9,793,405 2,275,000 228,102 2,503,102 $ 21,101,000 $ 4,933,920 $ 405,000 $ 7,341 $ 26,447,261 m Debt General Obligation Bonds - The bonds were issued for improvements or projects which benefited the City as a whole and are, therefore, repaid from ad valorem levies. Special Assessment Bonds - These bonds were is from special assessments levied on the properties partly financed by ad valorem levies. ued to finance various improvements and will be repaid primarily benefiting from the improvements. However, some issues are 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. 48 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 4 CITY INDEBTEDNESS (CONTINUED) In December 2009, the City of Lino Lakes entered into a joint powers agreement for a note payable with Anoka County for $4,260,000. The note payable with Anoka county is for the reconstruction of County State Aid Highway 14 (Main Street) and I -35E Interchange County Project. During 2011, the note payable balance was reduced by Anoka County due to lower than expected project costs. The amount of the note payable was reduced from $4,260,000 to $3,695,000. Liability for Compensated Absences — This liability represents vested benefits earned by governmental fund employees through the end of the year which will be paid or used in future periods. For the governmental activities, compensated absences are generally liquidated by the general fund. The liability for Proprietary Fund employees is included in the accrued liabilities of those funds. Note 5 LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Minnesota for bonded indebtedness payable principally from property taxes. The City of Lino Lakes' legal debt margin for 2011 is computed as follows: 12/31/11 Market value $ 1,804,121,500 Applicable percentage 3.0% Debt Limit 54,123,645 Amount of debt applicable to debt limit: Total bonded debt 17,811,000 Less: Special assessment bonds (7,985,000) Tax abatement bonds (2,430,000) Utility revenue bonds (370,000) Tax increment financing bonds (3,660,000) Revenue bonds (405,000) Total debt applicable to debt limit 2,961,000 Legal debt margin $ 51,162,645 49 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE A. PLAN DESCRIPTION All full -time and certain part-time employees of the City of Lino Lakes are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund (PEPFF) which are a cost - sharing, multiple - employer retirement plan. This plan is established and administered in accordance with Minnesota Statutes, Chapter 353 and 356. GERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated Plan members are covered by Social Security and Basic Plan members are not. All new members must participate in the Coordinated Plan. All police officers, firefighters and peace officers who qualify for membership by statute are covered by the PEPFF. PERA provides retirement benefits as well as disability benefits to members, and benefits to survivors upon death of eligible members. Benefits are established by State Statute, and vest after three years of credited service. The defined retirement benefits are based on a member's highest average salary for any five successive years of 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 step -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 10 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 10 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 PEPFF members, the annuity accrual rate is 3.0% for each year of service. For GERF and PEPFF members hired prior to July 1, 1989 whose annuity is calculated using Method 1, a full annuity is available when age plus years of service equal 90. Normal retirement age is 65 for Basic and Coordinated members hired prior to July 1, 1989. Normal retirement age is the age for unreduced Social Security benefits capped at 66 for coordinated members hired on or after July 1, 1989. A reduced retirement annuity is also available to eligible members seeking early retirement. There are different types of annuities available to members upon retirement. A single -life annuity is a lifetime annuity that ceases upon the death of the retiree, no survivor annuity is payable. There are also various types of joint and survivor annuity options available which will be payable over joint lives. Members may also leave their contributions in the fund upon termination of public service in order to qualify for a deferred annuity at retirement age. Refunds of contributions are available at any time to members who leave public service, but before retirement benefits begin. The benefit provisions stated in the previous paragraphs of this section are current provisions and apply to active plan participants. Vested, 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. PERA issues a publicly available financial report that includes financial statements and required supplementary information for GERF and PEPFF. That report may be obtained on the internet at www.mnpera.org, by writing to PERA at 60 Empire Drive #200, St. Paul, Minnesota, 55103 -2088 or by calling (651) 296 -7460 or 1- 800 - 652 -9026. 50 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 6 DEFINED BENEFIT PENSION PLANS — STATEWIDE (CONTINUED) B. FUNDING POLICY Minnesota Statutes, Chapter 353 sets the rates for employer and employee contributions. These statutes are established and amended by the state legislature. The City makes annual contributions to the pension plans equal to the amount required by state statutes. GERF Basic Plan members and Coordinated Plan members are required to contribute 9.10% and 6.25% respectively, of their annual covered salary. PEPFF members were required to contribute 9.6% of their annual covered salary in 2011. The City is required to contribute the following percentages of annual covered payroll: 11.78% for Basic Plan members, 7.25% for Coordinated Plan members, and 14.4% for PEPFF members. The City's contributions to the General Employees Retirement Fund for the years ended December 31, 2011, 2010, and 2009 were $187,186, $177,081, and $186,454, respectively. The City's contributions to the Public Employees Police & Fire Fund for the years ended December 31, 2011, 2010, and 2009 were $285,356, $280,046, and $303,949, respectively. The City's contributions were equal to the contractually required contributions for each year as set by state statute. Note 7 METROPOLITAN COUNCIL ENVIRONMENTAL SERVICES During 1971, the Metropolitan Waste Control Commission (MWCC) was organized to provide for consolidation of the sanitary sewer collection, treatment and disposal in the seven county metropolitan area surrounding Minneapolis and St. Paul. Previously, these operations were maintained by the city governments on an individual or collective basis. The MWCC merged with the Metropolitan Council during 1994 to form Metropolitan Council Wastewater Services (MCWS) and is now called the Metropolitan Council Environmental Services (MCES). The MCES bills the City annually based upon estimated volume and budgeted costs. The City follows the accounting policy of recognizing these charges as an expense of the sewer utility operation in the year for which they are billed. Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY A. Deficit Fund Balances The City has deficit fund balances at December 31, 2011 as follows: Fund Balance Deficit 35E Interchange $ (6,842) Dedicated Parks (578,237) Tax Increment Financing 1 -11 (764,145) G.O. Improvement Bonds 2005A (1,628,613) Traffic Control (176,659) The City intends to fund these deficits through future tax levies, special assessment levies, tax increments, transfers from other funds, and various other sources. 51 1 1 1 1 1 1 1 1 i 1 t 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 8 STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY (CONTINUED) B. Expenditures in Excess of Budget The following is a listing of expenditure categories that exceed budget appropriations for non -major funds: Budget Actual Excess Program Recreation Special Revenue Fund: Supplies $ 50,955 $ 118,134 $ (67,179) Note 9 CONTINGENCIES Tax Increment Districts — The City's tax increment districts are subject to review by the State of Minnesota Office of the State Auditor (OSA). Any disallowed claims or misuse of tax increments could become a liability of the applicable fund. Management has indicated that they are not aware of any instances of noncompliance which could have a material effect on the financial statements. Federal and State Funds — The City receives financial assistance from 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, 2011. Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT General Obligation bond issues sold by the City are financed by ad valorem tax levies and special assessment bond issues sold by the City are partially financed by ad valorem tax levies in addition to special assessments levied against the benefiting properties. When a bond issue to be 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. These future scheduled tax levies are not shown as assets in the accompanying financial statements at December 31, 2011. Future scheduled tax levies for all bonds outstanding at December 31, 2011 totaled $18,962,681. 52 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 11 FUND BALANCE At December 31, 2011, the City had various fund balances restricted, committed, or assigned through legal restriction and City Council authorization. Major fund balance appropriations at December 31, 2011 are shown on the various balance sheets as segregations of the fund balance. The fund balances are as follows: Total Nonspendable Restricted Committed Assigned Unassigned General Fund: $ 5,440,101 $ - $ - $ - $ - $ 5,440,101 Prepaid items 165,079 165,079 - Total General Fund 5,605,180 165,079 - 5,440,101 G.O. Improvement Bonds 2005A: Deficit Fund Balance (1,628,613) (1,628,613) Improvement Bonds 2009F: Debt Service 491 - 491 I35E Interchange: Deficit Fund Balance (6,842) - - (6,842) Area and Unit Charge: Advances to Other Funds 578,641 578,641 - Construction Projects 3,249,995 - - 3,249,995 Total Area and Unit Charge 3,828,636 578,641 3,249,995 Nonmajor Governmental Funds: Prepaid items 2,369 2,369 - - Long -term Loan Receivable 225,000 225,000 - Corpus of Permanent Fund 100,000 100,000 Program Recreation 110,568 - 110,568 - Environmental Improvements 19,881 19,881 Debt Service 2,637,638 2,637,638 - Construction Projects 7,558,273 - - 7,558,273 Deficit Fund Balance (1,519,041) - (1,519,041) Total Nonmajor Funds 9,134,688 327,369 2,657,519 110,568 7,558,273 (1,519,041) Total Fund Balances $ 16,933.540 $ 1,071,089 $ 2,658,010 $ 110,568 $ 10,808,268 $ 2,285,605 Note 12 SHARE IN GAS FRANCHISE PROFITS The City receives a share of the gross billing for natural gas sales by a neighboring City, which provides service within the City of Lino Lakes. The amount reported as revenue in the General Fund during fiscal year 2011 was $91,203. Note 13 INTERFUND RECEIVABLE AND PAYABLES The purpose of the interfund receivable and payable balances is for the elimination of negative cash between funds and at December 31, 2011 are as follows: Governmental Activity: G.O. Improvement Bonds 2005A I35E Interchange Other Nonmajor Governmental Funds Business -Type Activity: Sewer Fund 53 Receivable 2,008,599 559,110 Payable $ 1,628,615 3,759 935,335 $ 2,567,709 $ 2,567,709 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 13 INTERFUND RECEIVABLE AND PAYABLES (CONTINUED) Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and from other fund and at December 31, 2011 are as follows: Governmental Activity: Area and Unit Charge Other Nonmajor Governmental Funds Receivable Payable $ 578,641 $ 578,641 $ 578,641 $ 578,641 The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated Parks Fund. Note 14 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2011 are as follows: Transfer In Transfer Out Governmental Activity: General Fund $ - $ (741,964) Improvement Bonds of 2005A 83,333 - Improvement Bonds of 2009F 106,000 - Area and Unit Charge (478,650) Other Nonmajor Governmental Funds 2,782,382 (1,684,979) Total Governmental Activity 2,971,715 (2,905,593) Business -Type Activity: Water Fund (33,061) Sewer Fund (33,061) Total Business -Type Activity (66,122) Total $ 2,971,715 $ (2,971,715) Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open and close funds. Note 15 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and 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. 54 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 15 RISK MANAGEMENT (CONTINUED) Property and casualty insurance is provided through a pooled self - insurance program through the LMCIT. The City pays an annual premium to the LMCIT. The City is subject to supplemental 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 16 CONDUIT DEBT OBLIGATIONS 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 accompanying financial statements. As of December 31, 2011, two series of Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $765,000 and $400,000, respectively, and one series of Commercial Revenue Notes was outstanding with an aggregate remaining principal balance of $2,610,679. Note 17 LEASE COMMITMENT The City of Lino Lakes entered into an agreement dated December 8, 1997 to lease space within the City Hall complex to the Independent School District No. 12 (ISD 12). The lease term has been renewed as of July 1, 2009 and continues through June 30, 2011 and requires payments of $110 per square foot over the lease term for a total of $300,000. Effective February 14, 2011, the lease was further renewed through June 30, 2012 and requires two payments of $60,000 semi annually. The prorated carrying value of the building being leased is as follows: Building $ 929,970 Less: Accumulated Depreciation (371,988) Net $ 557,982 Note 18 JOINT VENTURES Fire The Centennial Fire District (the District) was established under a joint powers agreement between the City of Lino Lakes and two other cities. The general purpose of the District is to provide fire protection services including, but not limited to, fire prevention, firefighting and rescue service. Each member city is entitled to appoint two commissioners to the District's Board. 55 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 18 JOINT VENTURES (CONTINUED) Fire (Continued) Each calendar year, participating cities are to pay the District its share of the total operating and capital budget in accordance with a funding formula contained in Section VII of the joint powers agreement. The funding formula takes into account each city's average number of calls, population, and total market value. During 2011, the City of Lino Lakes' contributions to the District were as follows: Operating $ 525,842 Capital 87,000 Total $ 612,842 Separate financial statements of the District can be obtained by contacting the Centennial Fire District. The audited condensed financial statements of the District as of December 31, 2011 are as follows: Total Assets $ 1,524,597 Total Liabilities 109,106 Total Net Assets 1,415,491 Total Operating Revenue 923,222 Total Operating Expenses 818,638 Anoka County The City of Lino Lakes has a joint powers agreement with Anoka County for the reconstruction of County State Aid Highway 14 (Main Street) and I -35E Interchange County Project. Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN At December 31, 2008, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions. The City engaged an actuary to determine the City's liability for postemployment healthcare benefits other than pensions as of January 1, 2011. A. Plan Description The City provides benefits for retirees as required by Minnesota Statute §471.61 subdivision 2b. Active employees, who retire from the City when over age 50 and with 20 years of service, may continue coverage with respect to both themselves and their eligible dependent(s) under the City's health benefits program until age 65. Pursuant to the provisions of the plan, retirees are required to pay the total premium cost. As of December 31, 2011 there were approximately 49 active participants and 7 retired participants receiving benefits from the City's health plans. B. Funding Policy The City funds its OPEB obligation on a pay as you go basis. For fiscal year 2011, the City contributed $18,396 to the plan. 56 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) C. Annual OPEB Cost and Net OPEB Obligation The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution (ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any un- funded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually paid from the plan, and changes in the City's net OPEB obligation. Annual Required Contribution $ 29,449 Interest on Net OPEB Obligation 1,266 Adjustment to Annual Required Contribution (2,798) Annual OPEB Cost (Expense) 27,917 Contributions Made (18,396) Increase in Net OPEB Obligation 9,521 Net OPEB Obligation- Beginning of Year 63,287 Net OPEB Obligation- End of Year $ 72,808 The City's annual OPEB cost, the percentage of the annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011: Percentage Fiscal Annual of Annual Net Year OPEB OPEB Cost OPEB Ended Cost Contributed Obligation 12/31/2009 $ 41,152 45.9% $ 44,734 12/31/2010 40,404 51.1% 63,287 12/31/2011 27,917 65.9% 72,808 D. Funded Status and Funding Progress As of January 1, 2011, the most recent actuarial valuation date, the City's unfunded actuarial accrued liability (UAAL) was $474,770. The annual payroll for active employees covered by the plan in the actuarial valuation was $4,953,560 for a ratio of UAAL to covered payroll of 9.6 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. 57 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 19 OTHER POSTEMPLOYMENT BENEFIT PLAN (CONTINUED) E. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long -term perspective of the calculations. In the January 1, 2011 actuarial valuation, the projected unit credit actuarial cost method was used. The actuarial assumptions included a 2% inflation rate, a 2% investment rate of return (net of administrative expenses), which is a blended rate of the expected long -term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date. The initial healthcare trend rate was 0 %, increasing to an ultimate rate of 4% after three years. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at December 31, 2011 was not to exceed 30 years. 58 REQUIRED SUPPLEMENTARY INFORMATION CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 11 Page 1 of 6 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Revenue: General property taxes: Current and delinquent $ 7,599,240 $ 6,666,440 $ 6,521,402 $ (145,038) Fiscal disparities - 967,800 977,707 9,907 Excess tax increments - - - - Total general property taxes 7,599,240 7,634,240 7,499,109 (135,131) Licenses and permits: Business 79,200 89,200 85,446 (3,754) Non - business 334,500 239,500 236,584 (2,916) Total licenses and permits 413,700 328,700 322,030 (6,670) Intergovernmental: State: Market Value Credit 3,405 3,405 Police state aid 185,000 185,000 164,305 (20,695) MSA maintenance 185,000 185,000 198,292 13,292 Other 162,282 179,282 183,722 4,440 County/Regional: Solid waste 35,000 35,000 32,276 (2,724) Other 5,000 9,000 8,392 (608) Total intergovernmental 572,282 593,282 590,392 (2,890) Special Assessments: Penalties and Interest 6,000 6,000 21,813 15,813 Charges for services: General government 22,400 22,400 18,413 (3,987) Planning /engineering 6,000 6,000 5,048 (952) Fees retained from collection for other governments - SAC /surcharge 1,000 1,000 1,178 178 Administrative charge - other funds 50,000 50,000 50,000 Aerial map charge - other funds 4,000 4,000 90 (3,910) Public safety 290,000 290,000 292,308 2,308 Total charges for services 373,400 373,400 367,037 (6,363) Fines and forfeits 135,000 145,000 154,020 9,020 Investment earnings 60,000 50,000 54,390 4,390 Refunds 15,000 25,000 27,641 2,641 Miscellaneous: Gas franchise fees 105,000 105,000 91,203 (13,797) Cable TV 55,000 55,000 57,915 2,915 Donations 5,000 5,000 250 (4,750) Other 100,000 - 610 610 Total miscellaneous 265,000 165,000 149,978 (15,022) Total Revenue 9,439,622 9,320,622 9,186,410 (134,212) 59 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 11 Page 2 of 6 2011 Original Final Budget Budget Actual Variance with Final Budget Positive (Negative) Expenditures: General government: Mayor and council: Current: Personal services $ 40,573 $ 40,573 $ 32,277 $ 8,296 Other services and charges 33,000 33,000 25,013 7,987 Contractual Services 15,236 15,236 14,320 916 Total mayor and council 88,809 88,809 71,610 17,199 Elections: Current: Personal services 11,010 11,010 6,254 4,756 Supplies 300 300 15 285 Other services and charges 2,250 2,250 1,684 566 Contractual Services 500 500 500 Total elections 14,060 14,060 7,953 6,107 Administration: Current: Personal services 427,924 452,924 453,126 (202) Supplies - - 99 (99) Other services and charges 20,400 20,400 9,255 11,145 Contractual Services 3,400 3,400 3,539 (139) Total administration 451,724 476,724 466,019 10,705 Finance. Current: Personal services 300,164 300,164 298,891 1,273 Supplies 1,500 1,500 861 639 Other services and charges 102,825 102,825 100,188 2,637 Contractual Services 102,900 102,900 98,476 4,424 Total finance 507,389 507,389 498,416 8,973 Cable TV: Current: Personal services 2,163 2,163 1,654 509 Supplies 50 50 50 Total cable TV 2,713 2,713 2,154 559 Consultants: Current: Legal 175,000 185,000 171,875 13,125 60 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 11 Page 3 of 6 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) General government (continued): Engineering /planning: Current: Contractual services $ 176,600 $ 116,600 $ 113,186 $ 3,414 Senior Service: Current: Personal services (92) 92 Charter commission: Current: Other services and charges 1,500 1,500 1,500 General government buildings: Current: Personal services 91,910 61,910 62,726 (816) Supplies 37,500 37,500 26,861 10,639 Other services and charges 309,880 304,880 268,047 36,833 Contractual services 25,000 70,000 72,021 (2,021) Capital outlay - - - Total general government buildings 464,290 474,290 429,655 44,635 Total general government 1,882,085 1,867,085 1,762,276 104,809 Public safety: Police: Current: Personal services 2,981,380 2,931,380 2,907,888 23,492 Supplies 28,500 28,500 26,070 2,430 Other services and charges 81,050 89,050 86,461 2,589 Contractual services 37,000 37,000 36,471 529 Capital outlay 7,200 7,200 6,479 721 Total police 3,135,130 3,093,130 3,063,369 29,761 Fire protection: Current: Contractual services 525,844 525,844 525,842 2 Building inspection: Current: Personal services 198,719 198,719 194,805 3,914 Supplies 970 970 291 679 Other services and charges 12,420 12,420 12,910 (490) Contractual services 1,150 1,150 591 559 Capital outlay - - Total building inspection 213,259 213,259 208,597 4,662 Total public safety 3,874,233 3,832,233 3,797,808 34,425 61 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 11 Page 4 of 6 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Public works: Streets: Current: Personal services $ 536,538 $ 541,538 $ 526,908 $ 14,630 Supplies 130,500 130,500 125,026 5,474 Other services and charges 101,685 106,685 104,463 2,222 Contractual services 172,200 172,200 174,819 (2,619) Total streets 940,923 950,923 931,216 19,707 Fleet: Current: Personal services 92,761 97,761 94,044 3,717 Supplies 224,000 244,000 239,324 4,676 Other services and charges 56,070 71,070 57,961 13,109 Contractual services 2,700 2,700 1,701 999 Total fleet 375,531 415,531 393,030 22,501 Total public works 1,316,454 1,366,454 1,324,246 42,208 Parks and recreation: Parks: Current: Personal services $ 456,894 $ 464,394 $ 461,695 $ 2,699 Supplies 26,500 41,500 37,864 3,636 Other services and charges 50,700 50,700 40,350 10,350 Contractual services 45,850 45,850 35,094 10,756 Total parks 579,944 602,444 575,003 27,441 Recreation: Current: Personal services 275,708 266,708 260,945 5,763 Supplies 2,500 2,500 2,218 282 Other services and charges 16,600 16,600 14,228 2,372 Contractual services 800 800 323 477 Total recreation 295,608 286,608 277,714 8,894 Total parks and recreation 875,552 889,052 852,717 36,335 62 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 11 Page 5 of 6 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Conservation of natural resources: Forestry: Current: Personal services 33,407 33,407 33,319 88 Supplies 1,250 1,250 1,855 (605) Other services and charges 800 800 355 445 Contractual services 5,500 500 1 499 Total forestry 45,957 57,957 57,780 177 Environmental: Current: Personal services 50,504 50,504 50,102 402 Supplies 1,500 1,500 627 873 Other services and charges 9,480 9,480 4,089 5,391 Contractual services 1,550 6,550 6,432 118 Total environmental 63,034 68,034 61,250 6,784 Solid waste abatement: Current: Personal services $ 29,016 $ 29,016 $ 29,504 $ (488) Supplies - - - - Other services and charges 550 550 350 200 Contractual services 6,000 6,000 7,488 (1,488) Capital outlay - - - - Total solid waste abatement 35,566 35,566 37,342 (1,776) Total conservation of natural resources 144,557 161,557 156,372 5,185 63 CITY OF LINO LAKES, MINNESOTA GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 11 Page 6 of 6 2011 Variance with Final Budget Original Final Positive Budget Budget Actual (Negative) Community Development: Community Development: Current: Personal services 222,676 222,676 218,208 4,468 Supplies 100 100 17 83 Other services and charges 8,700 8,700 8,154 546 Contractual Services 1,330 1,330 1,160 170 Total community development 232,806 232,806 227,807 4,999 Economic Development: Current: Personal services 90,227 90,227 90,643 (416) Supplies 150 150 150 Other services and charges 49,500 59,500 50,854 8,646 Contractual services 400 400 710 (310) Total economic development 140,277 150,277 142,207 8,070 Planning and zoning commission: Current: Personal services 171,139 176,139 172,474 3,665 Supplies 250 250 35 215 Other services and charges 18,350 18,350 13,484 4,866 Contractual services 22,350 22,350 16,545 5,805 Total planning and zoning commission 212,089 217,089 202,638 14,451 Total community development 585,172 600,172 572,652 27,520 Other : Contingency 75,000 62,500 62,500 Total Expenditures 8,753,053 8,779,053 8,466,071 312,982 Revenue over Expenditures 686,569 541,569 720,339 178,770 Other financing sources (uses): Transfer out (686,569) (841,569) (741,964) 99,605 Net increase (decrease) in fund balance $ S (300,000) (21,625) $ 278,375 Fund Balance - January 1 5,626,805 Fund balance - December 31 $ 5,605,180 64 CITY OF LINO LAKES, MINNESOTA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION December 31, 2011 Note 1 BUDGETS The General Fund budget is legally adopted on a basis consistent with U.S. Generally Accepted Accounting Principles. The legal level of budgetary control is at the department level. The following is a listing of expenditures that exceeded budget appropriations. Final Budget Actual Actual in Excess of Budget General Fund: Conservation of natural resources: Solid waste abatement $ 35,566 $ 37,342 $ (1,776) CITY OF LINO LAKES, MINNESOTA SCHEDULE OF FUNDING PROGRESS FOR POSTEMPLOYMENT BENEFIT PLAN December 31, 2011 Statement 12 Actuarial UAAL as a Actuarial Accrued Percentage Actuarial Value of Liability Unfunded Funded Covered of Covered Valuation Assets (AAL) AAL Ratio Payroll Payroll Date (a) (b) (b -a) (a/b) (c) ((b -a) /c) 1/1/2008 $ $ 329,191 $ 329,191 - $ 4,859,980 6.8% 1/1/2011 474,770 474,770 - 4,953,560 9.6% 66 Nonmajor Governmental Funds Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for particular purposes. The City maintained the following nonmajor Special Revenue Funds during the year. Economic Development Authority - established to account for the receipt and uses of funds for economic purposes. Program Recreation - established to account for various self - supporting recreational programs. Debt Service Funds The Debt Service Funds account for the accumulation of 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 - 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 Project Funds Capital Project Funds account for the acquisition or construction of major capital facilities other than those financed by Proprietary Funds and Trust Funds. The City maintained the following nonmajor Capital Project Funds during the year: Capital Improvement Projects - to account for the proceeds from Equipment Certificates. Capital Equipment Revolving Fund - to account for funds held to purchase capital equipment. Closed Bond Fund - to account for excess funds from matured bond issues. Street Reconstruction - to account for the financing of future reconstruction of City streets. Sealcoating - to account for money received from assessments and developer deposits for future street sealcoating projects. Surface Water Management - to account for the financing of surface water management and storm water improvements. Birch Street Hodgson Road Improvement Fund - to account for costs to improve the intersection at Birch Street and Hodgson Road. Tax Increment Funds - to account for development projects financed with tax increments. Capital Project Funds (Continued) Dedicated Parks - to account for the receipts and use of monies collected from dedicated parks fees. Municipal State Aid - to account for the collection of assessments on municipal state aid projects. Office Equipment Revolving Fund - to account for the receipt and use of funds for office equipment purchases. Legacy Woods Edge Improvement Fund - the Legacy Woods Edge Improvement fund accounts for construction costs related to infrastructure improvements in the Legacy Woods Edge development. Traffic Signal - to account for costs associated with construction of traffic signals in the City. Permanent Funds Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City's programs. The City maintained the following nonmajor Permanent Fund during the year. Foxborough Environment Fund - established to account for the use of funds received for environmental maintenance and improvements in the Foxborough area. CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2011 Special Revenue Debt Service Lease Public Project Economic Special Certificates Revenue Refunding Development Program Revenue of Bonds Bonds Authority Recreation Subtotal Indebtedness of 1998A of 1 999C Assets Cash and investments $ $ 113,836 $ 113,836 $ 129,811 $ $ Accounts receivable - Due from other governmental units Interfund receivable Taxes receivable: Delinquent - 8,059 Due from county - 3,293 Special assessments receivable: Delinquent Deferred Due from county - - Long-term notes receivable 225,000 - 225,000 Prepaid items 2,369 2,369 Total assets $ 225,000 $ 116,205 $ 341,205 $ 141,163 $ $ Liabilities and Fund Balance (Deficit) Liabilities: Interfund payable $ $ - $ - $ $ $ Accounts payable 3,154 3,154 Salaries payable 114 114 Contracts and retainage payable - - Due to other govemments - Advances from other funds Deferred revenue 8,059 Total liabilities 3,268 3,268 8,059 Fund balance (deficit): Nonspendable 225,000 2,369 227,369 Restricted - 133,104 Committed 110,568 110,568 Assigned - - Unassigned - - Total fund balance (deficit) 225,000 112,937 337,937 133,104 Total liabilities and fund balance (deficit) $ 225,000 $ 116,205 $ 341,205 $ 141,163 $ $ 67 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Statement 13 Page 1 of 3 Debt Service (Continued) Improvement Improvement and Tax Improvement Improvement Refunding Improvement Utility Revenue Improvement Abatement Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds 2002A 2002B 2003A 2003B 2004A 2005B 2006C $ 228,292 $ 497,652 $ 147,244 $ 67,350 $ 899 275 - 2,053 3,249 56,847 106,612 122,328 31,626 $ 285,139 $ 604,264 $ 271,625 $ 103,399 $ $ - $ 56,847 106,612 124,381 56,847 106,612 124,381 228,292 497,652 147,244 $ - $ 35,774 35,774 67,625 228,292 497,652 147,244 67,625 $ 285,139 $ 604,264 $ 271,625 $ 103,399 $ 68 $ 324,213 $ 138,965 4,978 6,289 1,528 2,060 4,162 171,162 538 $ 506,581 $ 147,314 $ - $ 180,302 180,302 326,279 326,279 $ 506,581 6,289 6,289 141,025 141,025 147,314 1 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2011 Debt Service (continued) Capital Projects Utility CIP Improvement and Revenue Refunding TIF Utility Revenue Debt Capital Bonds Bonds Bonds Refunding Bonds Service Improvement 2006D 2006E 2007A 2010 Subtotal Projects Assets 1 Cash and investments $ 67,711 $ 759,335 $ 154,320 $ 109,770 $ 2,624,663 $ 946,336 Accounts receivable - - Due from other governmental units - - - Interfund receivable 1,069,505 Taxes receivable: Delinquent - 13,370 33,595 Due from county 4,079 11,235 I Delinquent tax increment - - Special assessments receivable: Delinquent 3,542 8,158 21,164 Deferred 129,516 121,307 739,398 Due from county 1,202 1,740 Long -term notes receivable Prepaid items Total assets $ 200,769 $ 776,784 $ 154,320 $ 240,437 $ 3,431,795 $ 2,015,841 1 Liabilities and Fund Balance (Deficit) Liabilities: Interfund payable $ - $ $ - $ - $ $ Accounts payable - - Salaries payable - Contracts and retainage payable - Due to other governments - Advances from other funds - Deferred revenue 133,058 13,370 - 129,465 794,157 Total liabilities 133,058 13,370 129,465 794,157 Fund balance (deficit): Nonspendable - - Restricted 67,711 763,414 154,320 110,972 2,637,638 - Committed - - Assigned - 2,015,841 Unassigned - - - Total fund balance (deficit) 67,711 763,414 154,320 110,972 2,637,638 2,015,841 Total liabilities and fund balance (deficit) $ 200,769 $ 776,784 $ 154,320 $ 240,437 $ 3,431,795 $ 2,015,841 Statement 13 Page 2 of 3 Capital Projects (Continued) Tax Capital Closed Surface Birch Street Increment Equipment Bond Street Water Hodgson Road Financing Revolving Fund Fund Reconstruction Sealcoating Management Improvement 1 -5 $ 184,259 $ 481,477 $ 587,203 $ 465,169 $ 374,653 $ 15,583 $ 78,255 1,500 939,094 - - 1,229 278 20,659 5,531 131,868 - 179,193 1,719 $ 184,259 $ 1,427,609 $ 719,071 $ 465,169 $ 577,724 $ 15,583 $ 78,255 - $ $ $ - $ - $ 1,929 10,438 6,760 131,868 199,852 6,760 131,868 1,929 210,290 184,259 1,420,849 587,203 463,240 367,434 15,583 18,232 18,232 60,023 184,259 1,420,849 587,203 463,240 367,434 15,583 60,023 $ 184,259 $ 1,427,609 $ 719,071 $ 465,169 $ 577,724 $ 15,583 $ 78,255 70 1 CITY OF LINO LAKES, MINNESOTA COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS December 31, 2011 Capital Projects (continued) Tax Tax Office Increment Increment Equipment Legacy Woods Financing Financing Dedicated Municipal Revolving Edge 1 -10 1 -11 Parks State Aid Fund Improvement Assets Cash and investments $ 188,669 $ $ 404 $ 1,439,143 $ 272,023 $ 548,979 Accounts receivable - - - - - Due from other governmental units - - - - Interfund receivable - - - Taxes receivable: Delinquent - - - - Due from county - - - - Delinquent tax increment - - - Special assessments receivable: Delinquent Deferred - - - - Due from county - Long -term notes receivable - - - Prepaid items - Total assets $ 188,669 $ $ 404 $ 1,439,143 $ 272,023 $ 548,979 Liabilities and Fund Balance (Deficit) Liabilities: Interfund payable $ - $ 763,725 $ $ $ - $ Accounts payable 42 420 - 4,931 Salaries payable - - - Contracts and retainage payable - - - Due to other governments - - Advances from other funds - 578,641 - Deferred revenue - Total liabilities 42 764,145 578,641 4,931 Fund balance (deficit): Nonspendable - - Restricted - Committed - - - Assigned 188,627 - 1,439,143 267,092 548,979 Unassigned - (764,145) (578,237) - - - Total fund balance (deficit) 188,627 (764,145) (578,237) 1,439,143 267,092 548,979 Total liabilities and fund balance (deficit) $ 188,669 $ $ 404 $ 1,439,143 $ 272,023 $ 548,979 1 1 1 1 1 71 1 Statement 13 Page 3 of 3 Permanent Capital Projects (Continued) Fund Capital Foxborough Traffic Projects Environment Signal Subtotal Fund Total 2011 $ 5,582,153 $ 119,881 $ 8,440,533 1,500 - 1,500 2,008,599 - 2,008,599 1,229 - 34,824 278 - 11,513 20,659 - 41,823 316,592 1,055,990 1,719 - 3,459 225,000 2,369 - $ 7,932,729 $ 119,881 $ 11,825,610 $ 171,610 $ 935,335 $ - $ 935,335 5,049 41,041 - 44,195 - - 114 578,641 - 578,641 338,480 - 1,132,637 176,659 1,893,497 2,690,922 100,000 327,369 - 19,881 2,657,519 - - - 110,568 - 7,558,273 7,558,273 (176,659) (1,519,041) (1,519,041) (176,659) 6,039,232 119,881 9,134,688 - $ 7,932,729 $ 119,881 $ 11,825,610 72 1 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2011 Special Revenue Debt Service I Lease Public Project Economic Special Certificates Revenue Refunding Development Program Revenue of Bonds Bonds Authority Recreation Subtotal Indebtedness of 1998A of 1999C Revenue: General property taxes $ - $ $ $ 264,457 $ 1,881 $ 1,270 Tax increments - - - Intergovernmental - - Special assessments - - 334 199 134 Charges for services - 204,751 204,751 - - Investment earnings 1,847 1,847 2,760 6,910 3,545 Miscellaneous - - - 120,000 Total revenue - 206,598 206,598 267,551 128,990 4,949 Expenditures: I Current: General government 395 395 Public works - Parks, recreation and forestry 206,474 206,474 Conservation of natural resources - _ Community development - Capital outlay: General government Public safety _ I Public works - _ Debt service: Principal - 240,000 Interest and fiscal charges - 19,695 - Total expenditures 395 206,474 206,869 259,695 - - Revenue over (under) expenditures (395) 124 (271) 7,856 128,990 4,949 Other financing sources (uses): Transfer in 395 395 - - Transfer out - (616,514) (276,121) Sale of property - Issuance of debt - - Premium on bonds issued I - - Payment made to refunding bond escrow agent Total other financing sources (uses) 395 - 395 (616,514) (276,121) Net increase (decrease) in fund balance 124 124 7,856 (487,524) (271,172) Fund balance (deficit) - Beginningofyear 225,000 112,813 337,813 125,248 487,524 271,172 Fund balance (deficit) - December 31 $ 225,000 $ 112,937 $ 337,937 $ 133,104 S $ 1 1 1 1 73 1 1 1 1 1 1 1 1 1 1 s 1 1 1 1 1 1 1 Statement 14 Page 1 of 3 Debt Service (Continued) Improvement Improvement and Tax Improvement Improvement Refunding Improvement Utility Revenue Improvement Abatement Bonds of Bonds of Bonds of Bonds of Bonds of Bonds of Bonds 2002A 2002B 2003A 2003B 2004A 2005B 2006C $ $ $ $ 21,271 $ - $ 120,389 $ 188,932 10,567 114,075 24,575 17,930 18,327 58,144 313 2,899 5,934 881 535 2,870 544 13,466 120,009 25,456 39,736 21,197 178,533 189,789 25,000 235,000 60,000 30,000 425,000 30,000 3,697 35,077 23,405 5,950 - 87,958 103,587 28,697 270,077 83,405 35,950 - 512,958 133,587 (15,231) (150,068) (57,949) 3,786 21,197 (334,425) 56,202 82,637 (236,385) 396,012 82,637 (236,385) 396,012 (15,231) (150,068) 24,688 3,786 (215,188) 61,587 56,202 243,523 647,720 122,556 63,839 215,188 264,692 84,823 $ 228,292 $ 497,652 $ 147,244 S 67,625 $ - $ 326,279 $ 141,025 74 1 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2011 Debt Service (Continued) Capital Projects Utility CIP Improvement and Revenue Refunding TIF Utility Revenue Debt Capital Bonds Bonds Bonds Refunding Bonds Service Improvement 2006D 2006E 2007A 2010 Subtotal Projects Revenue: General property taxes $ - $ 313,949 $ - $ $ 912,149 $ Tax increments - - - Intergovernmental - - - 89,937 Special assessments 17,504 633 262,735 - Charges for services - - - Investment eamings - 28 26,906 18,497 I Miscellaneous 120,000 148,892 Total revenue 17.504 314,582 - 28 1,321,790 257,326 Expenditures: Current: General government - - 2,370 Public works - 192,862 Parks, recreation and forestry - - Conservation of natural resources - - Community development - - Capital outlay: General government Public safety - Public works - - - Debt service: Principal 50,000 305,000 215,000 100,000 1,715,000 Interest and fiscal charges 16,889 111,067 152,394 30,386 590,105 - Total expenditures 66,889 416,067 367,394 130,386 2,305,105 195,232 Revenue over (under) expenditures (49,385) (101,485) (367,394) (130,358) (983,315) 62,094 Other financing sources (uses): Transfer in 66,122 616,514 366,626 236,385 1,764,296 Transfer out - - - (1,129,020) Sale of property Issuance of debt - - Discount on bonds issued I - - Premium on bonds issued Payment made to refunding bond escrow agent - - Total other financing sources (uses) 66,122 616,514 366,626 236,385 635,276 Net increase (decrease) in fund balance 16,737 515,029 (768) 106,027 (348,039) 62,094 Fund balance (deficit) - Beginning of year 50,974 248,385 155,088 4,945 2,985,677 1,953,747 Fund balance (deficit) - December 31 $ 67,711 $ 763,414 $ 154,320 $ 110,972 $ 2,637,638 $ 2,015,841 1 1 ,I 75 Statement 14 Page 2 of 3 Capital Projects (Continued) Capital Closed Surface Birch Street Tax Increment Equipment Bond Street Water Hodgson Road Financing Revolving Fund Fund Reconstruction Sealcoating Management Improvement 1 -5 $ $ - $ - $ - $ $ - $ 40,663 5,420 25,590 100,747 4,380 14,019 7,265 7,921 4,305 200 773 200 - - - - - - 4,580 19,439 32,855 7,921 105,052 200 41,436 175,696 256,033 8,974 420,389 44,891 37,081 431,729 8,974 420,389 44,891 - 37,081 (427,149) 10,465 32,855 (412,468) 60,161 200 4,355 200,000 276,121 16,570 445,000 50,953 120,000 370,953 276,121 16,570 445,000 (56,196) 286,586 49,425 32,532 60,161 200 4,355 240,455 1,134,263 537,778 430,708 307,273 15,383 55,668 $ 184,259 $ 1,420,849 $ 587,203 $ 463,240 $ 367,434 $ 15,583 $ 60,023 1 CITY OF LINO LAKES, MINNESOTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS Year Ended December 31, 2011 Capital Projects (Continued) Office Tax Increment Tax Increment Equipment Legacy Woods Financing Financing Dedicated Municipal Revolving Edge 1 -10 1 -11 Parks State Aid Fund Improvement Revenue: General property taxes $ - $ - $ - $ - $ - $ - Tax increments 146,442 57,608 - - - Intergovernmental - 631,585 20,000 Special assessments - - - Charges for services - - - - Investment earnings 1,740 724 23,854 3,493 6,875 Miscellaneous - 8,299 - - - Total revenue 148,182 57,608 9,023 655,439 3,493 26,875 Expenditures: Current: General government: - - Public works - - - Parks, recreation and forestry - - - - Conservation of natural resources - - - Community development 7,814 7,107 - Capital outlay: General government - 11,543 - Public safety - - - - Public works - - - - Parks, recreation and forestry - 30,582 - Debt service: Principal - - - - Interest and fiscal charges - 19,766 - Total expenditures 7,814 7,107 50,348 11,543 - Revenue over (under) expenditures 140,368 50,501 (41,325) 655,439 (8,050) 26,875 Other financing sources (uses): Transfer in 55,000 - 25,000 Transfer out (38,179) (50,000) - (467,780) - - Sale of property - - - - Issuance of debt - - - - Premium on bonds issued - - - - Payment made to refunding I bond escrow agent - - - Total other financing sources (uses) (38,179) (50,000) 55,000 (467,780) 25,000 Net increase (decrease) in fund balance 102,189 501 13,675 187,659 16,950 26,875 Fund balance (deficit) - Beginning ofyear 86,438 (764,646) (591,912) 1,251,484 250,142 522,104 Fund balance (deficit) - December 31 $ 188,627 8 (764,145) $ (578,237) $ 1,439,143 $ 267,092 $ 548,979 1 1 1 77 1 1 1 f 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Statement 14 Page 3 of 3 Permanent Capital Projects (Continued) Fund Capital Foxborough Traffic Projects Environment Total Signal Subtotal Fund 2011 $ $ - $ $ 912,149 244,713 244,713 741,522 741,522 131,757 394,492 204,751 94,046 1,505 124,304 157,391 5,700 283,091 1,369,429 7,205 2,905,022 11,344 - 11,739 170,821 828,963 - 828,963 206,474 52,002 52,002 11,543 - 11,543 175,696 - 175,696 256,033 - 256,033 30,582 - 30,582 1,715,000 19,766 609,871 170,821 1,385,929 3,897,903 (170,821) (16,500) 7,205 (992,881) 1,017,691 - 2,782,382 (555,959) - (1,684,979) 50,953 - 50,953 120,000 - 120,000 632,685 1,268,356 (170,821) 616,185 7,205 275,475 (5,838) 5,423,047 112,676 8,859,213 $ (176,659) $ 6,039,232 $ 119,881 $ 9,134,688 78 CITY OF LINO LAKES, MINNESOTA SPECIAL REVENUE FUND - PROGRAM RECREATION SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Year Ended December 31, 2011 Statement 15 Revenue: Charges for services: Recreation Fees Investment earnings Total revenue 2011 Original Final Budget Budget Actual Variance with Final Budget Positive (Negative) $ 171,525 $ 171,525 $ 204,751 $ 33,226 - 1,847 1,847 171,525 171,525 206,598 35,073 Expenditures: Current: Personal services 86,000 86,000 64,351 21,649 Supplies 50,955 50,955 118,134 (67,179) Other services and charges 1,000 1,000 395 605 Contractual services 27,150 27,150 23,594 3,556 Capital outlay 4,000 4,000 4,000 Total expenditures 169,105 169,105 206,474 (37,369) Net increase (decrease) in fund balance $ 2,420 $ 2,420 124 $ (2,296) Fund balance - January 1 112,813 Fund balance - December 31 $ 112,937 79 1 1 i 1 1 1 1 1 1 1 1 1 1 1 1 1 Fiduciary Funds Agency Fund Agency Funds are used to account for assets held by the City as an agent for individuals, private organizations, or other governments. The City maintained the following Agency fund during the year: Contractor's Deposits — to account for pass - through costs relating to prospective developers. CITY OF LINO LAKES, MINNESOTA Statement 16 STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS - AGENCY FUNDS Year Ended December 31, 2011 Balance Balance January 1, December 31, 2011 Additions Deductions 2011 Assets Cash and investments $ 753,507 $ 298,768 $ 351,295 $ 700,980 Deposits receivable 750 750 - Total assets $ 754,257 $ 298,768 $ 352,045 $ 700,980 Liabilities Deposits payable $ 754,257 $ 624,684 $ 677,961 $ 700,980 80 SUPPLEMENTARY FINANCIAL INFORMATION CITY OF LINO LAKES, MINNESOTA COMBINED SCHEDULE OF INDEBTEDNESS December 31, 2011 Interest Rates Dated Final Maturity Date General Obligation Bonds: 2008A Equipment Certificates 4.00% 2/1/08 12/31/2011 2009A Equipment Certificates 3.00% 4/1/2009 12/31/2012 2010A Equipment Certificates 2.00 % -3.00% 4/1/10 12/31/2013 2011A Equipment Certificates 1.00% 2/14/11 12/31/2014 G.O. Tax Abatement Bonds, Series 2006C 4.00% -4.30% 8/15/06 2/1/23 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. Tax Increment Bonds, Series 2007A 4.00 % - 4.125% 7/15/2007 2/1/2024 Total General Obligation Bonds Special Assessment Bonds: G. O. Improvement Bonds of 2002A G. O. Improvement Bonds of 2002B G. O. Improvement Refunding Bonds of 2003A G. O. Improvement Bonds of 2003B G. O. Improvement and Utility Bonds of 2004A G. O. Improvement Bonds of 2005A G. O. Improvement Refunding Bonds of 2005B G.O. Improvement & Utility Revenue Refunding Bonds, Series 2010A Total General Improvement Bonds with special assessments pledged Revenue Bonds: G. O. Water Utility Revenue Refunding Bonds of 2006F Total Revenue Bonds Other Long -Term Debt: Note Payable - Anoka County - 2009A Total City indebtedness 81 3.00 % -4.10% 8/1/02 2/1/13 3.20 % -5.55% 8/1/02 2/1/13 2.00 % -4.25% 12/1/03 2/1/19 3.20 % -5.60% 12/1/03 2/1/14 1.90 % -4.45% 11/15/04 2/1/20 4.35 % -5.15% 11/1/05 2/1/21 3.75 % -5.00% 11/1/05 2/1/15 2.00 % -3.00% 7/9/10 2/1/20 3.55 % - 3.625% 11/1/06 2/1/12 4.00 % -3.70% 8/01/09 8/1/24 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit 1 Prior Years Original Issue Payments Payable 1/1/11 Issued Principal Interest 2011 Payable Due Due Payments 12/31/11 In 2012 In 2012 $ 209,000 $ 135,000 $ 74,000 $ - $ 74,000 $ $ - $ - 336,000 104,000 232,000 114,000 118,000 118,000 3,540 336,000 - 170,000 - 52,000 118,000 58,000 3,540 170,000 120,000 - 120,000 39,000 2,300 2,460,000 - 2,460,000 - 30,000 2,430,000 85,000 100,520 570,000 150,000 420,000 - 50,000 370,000 55,000 14,023 2,990,000 80,000 2,910,000 - 305,000 2,605,000 320,000 97,800 4,215,000 340,000 3,875,000 215,000 3,660,000 265,000 142,026 11,286,000 809,000 10,141,000 120,000 840,000 9,421,000 940,000 363,749 645,000 560,000 85,000 25,000 60,000 30,000 1,829 2,110,000 1,360,000 750,000 235,000 515,000 250,000 21,395 2,090,000 1,485,000 605,000 60,000 545,000 60,000 20,538 250,000 125,000 125,000 30,000 95,000 30,000 4,390 1,330,000 1,330,000 - - 5,550,000 1,055,000 4,495,000 315,000 4,180,000 330,000 202,985 3,755,000 1,640,000 2,115,000 425,000 1,690,000 420,000 71,375 1,000,000 - 1,000,000 - 100,000 900,000 85,000 23,400 16,730,000 7,555,000 9,175,000 - 1,190,000 7,985,000 1,205,000 345,912 1,740,000 1,740,000 945,000 795,000 945,000 795,000 390,000 405,000 405,000 7,341 390,000 405,000 405,000 7,341 4,260,000 4,260,000 565,000 3,695,000 98,267 S 34,016,000 $ 9,309,000 $ 24,371,000 $ 120,000 $ 2,985,000 $ 21,506,000 $ 2,550,000 $ 815,269 82 1 CITY OF LINO LAKES, MINNESOTA SCHEDULE OF DEFERRED TAX LEVIES December 31, 2011 Public 1 Lease Project G. 0. G. 0. G. 0. Year of Equipment Equipment Equipment Revenue Refunding Improvement Improvement Improvement Levy/ Certificates Certificates Certificates Bonds Bonds Bonds Bonds Bonds I Collection of 2009A of 2010A of 2011A of 1998A 1999C of 2002A of 2003B of 2005A 2011/2012 $ 127,617 $ 64,617 $ 43,365 $ $ $ 8,385 $ 21,917 $ 566,722 2012/2013 64,890 42,851 - - - 20,248 569,609 2013/2014 - 43,481 - - 23,781 566,197 2014/2015 - 567,247 2015/2016 - - - 572,497 2016/2017 571,184 2017/2018 - - - - 574,072 2018/2019 - - - - 574,907 2019/2020 579,639 2020/2021 2021/2022 - 2022/2023 - - 2023/2024 - $ 127,617 $ 129,507 $ 129,697 $ $ - $ 8,385 $ 65,946 $ 5,142,074 1 1 1 1 1 1 1 1 1 1 83 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit 2 G.O. G.O. G.O. G.O. Improvement Tax CIP G. O. Improvement and Refunding Abatement Refunding TIF Utility Revenue Bonds Bonds Bonds Bonds Refunding Bonds of2005B 2006C 2006E 2007A 2010A Total $ 512,925 $ 235,011 $ 468,720 $ 432,943 $ 114,713 $ 2,596,935 490,613 245,511 459,060 442,813 123,427 2,459,022 463,050 255,381 443,940 493,843 121,433 2,411,106 - 264,458 449,820 495,103 124,688 1,901,316 278,140 460,110 500,983 121,537 1,933,267 - 285,411 464,100 506,023 118,387 1,945,105 297,263 - 268,723 120,488 1,260,546 313,472 271,243 117,180 1,276,802 323,316 278,593 124,372 1,305,920 - 337,517 285,313 - 622,830 350,447 291,403 641,850 - 301,855 301,855 - 306,127 306,127 $ 1,466,588 $ 3,185,927 $ 2,745,750 $ 4,874,965 $ 1,086,225 $ 18,962,681 84 CITY OF LINO LAKES, MINNESOTA DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS December 31, 2011 G. O. G.O. G.O. Improvement G.O. Equipment Equipment Equipment Improvement Improvement Refunding Improvement Certificates Certificates Certificates Bonds Bonds Bonds Bonds 2009A 2010A 2011A of 2002A of 2002B 2003A 2003B Bonds payable $ 118,000 $ 118,000 $ 120,000 $ 60,000 $ 515,000 $ 545,000 $ 95,000 Future interest payable 3,540 5,340 3,520 2,445 28,749 94,021 8,148 Totals $ 121,540 $ 123,340 $ 123,520 $ 62,445 $ 543,749 $ 639,021 $ 103,148 Payments to maturity: 2012 $ 121,540 $ 61,540 $ 41,300 $ 31,830 $ 271,395 $ 80,537 $ 34,390 2013 - 61,800 40,810 30,615 272,354 78,438 32,778 2014 41,410 - 81,088 35,980 2015 - - 78,488 2016 - - - 80,788 2017 - 77,988 2018 - - - 79,994 2019 - - - 81,700 2020 - - - 2021 2022 2023 2024 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 $ 121,540 $ 123,340 $ 123,520 $ 62,445 $ 543,749 $ 639,021 $ 103,148 85 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Exhibit 3 G. O. G.O. G.O. G.O. G.O. G. O. Improvement Tax Utility CIP G.O. Improvement and Improvement Refunding Abatement Revenue Refunding TIF Utility Revenue Bonds Bonds Bonds Bonds Bonds Bonds Refunding Bonds 2005A 2005B 2006C 2006D 2006E 2007A 2010A $ 4,180,000 $ 1,690,000 $ 2,430,000 $ 370,000 $ 2,605,000 $ 3,660,000 $ 900,000 1,152,838 166,375 740,332 47,575 382,100 909,155 122,375 $ 5,332,838 $ 1,856,375 $ 3,170,332 $ 417,575 $ 2,987,100 $ 4,569,155 $ 1,022,375 $ 532,986 $ 491,375 $ 185,520 $ 69,022 $ 417,800 $ 407,026 $ 108,400 531,111 477,875 221,320 71,722 439,300 416,026 116,600 533,361 456,625 231,020 69,292 430,000 463,426 114,700 529,736 430,500 240,043 66,832 415,600 464,326 117,250 530,236 - 248,381 69,254 420,800 469,526 114,250 534,611 260,858 71,453 430,100 473,926 111,250 532,861 267,464 - 433,500 252,126 113,175 534,633 278,327 - - 254,326 110,025 534,784 293,233 - 261,026 116,725 538,519 - 302,183 267,126 - - 315,103 272,504 - 326,880 - 282,016 - 285,775 $ 5,332,838 $ 1,856,375 $ 3,170,332 $ 417,575 $ 2,987,100 $ 4,569,155 $ 1,022,375 86 CITY OF LINO LAKES, MINI DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED) December 31, 2011 Exhibit 3 G.O. Water Utility Note Revenue Payable - Refunding Anoka Bonds County - of 2006F 2009A Totals Bonds payable $ 405,000 $ 3,695,000 $ 21,506,000 Future interest payable 7,341 1,267,407 4,941,261 Totals $ 412,341 $ 4,962,407 $ 26,447,261 Payments to maturity: 2012 $ 412,341 $ 98,267 $ 3,365,269 2013 132,558 2,923,307 2014 132,558 2,589,460 2015 - 495,558 2,838,333 2016 501,158 2,434,393 2017 506,158 2,466,344 2018 - 510,557 2,189,677 2019 518,408 1,777,419 2020 520,282 1,726,050 2021 - 526,092 1,633,920 2022 - 535,963 1,123,570 2023 - 484,848 1,093,744 2024 - - 285,775 $ 412,341 S 4,962,407 $ 26,447,261 CITY OF LINO LAKES, MINNESOTA INSURANCE IN FORCE December 31, 2011 Exhibit 4 Coverage Amount General Liability: Bodily Injury/Property Damage $ 1,500,000 Personal Injury/Police Professional Liability 1,500,000 Fire Legal Liability 50,000 Medical Expense Occurrence Limit 1,000 Medical Expense Aggregate 10,000 Property Damage ($500 Deductible) Property: Buildings and Contents (including Mobile and EDP - Electronic Equipment & Valuable Papers) 27,647,677 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 1,500,000 Comprehensive and Collision Actual Cash Value Uninsured motorists 200,000 Workmen's compensation Umbrella Liability Crime - Theft Disappearance and Destruction ($1,000 Deductible) 88 Statutory 1,000,000 250,000 CITY OF LINO LAKES, MINNESOTA Exhibit 5 TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Tax Capacity Tax Capacity Values Values 2010/2011 2009/2010 Taxable valuations: Total $ 19,783,539 $ 22,070,825 Fiscal disparities: Distribution 2,932,332 2,833,602 Contribution (1,576,375) (1,697,800) Less: Captured Tax Increment Value (251,890) (327,659) $ 20,887,606 $ 22,878,968 Tax Tax Certified Capacity Certified Capacity Levy Rate Levy Rate Taxes Levied: Revenue $ 7,719,240 37.425 $ 7,816,232 34.086 Bond and Interest 940,760 4.616 879,182 3.819 Totals $ 8,660,000 42.041 $ 8,695,414 37.905 The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution. 89 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 III. STATISTICAL SECTION Statistical Section (Unaudited) This part of the 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 overall financial health. The following are the categories of the various schedules that are included in this section. Financial Trends Tables 1 -4 These schedules contain trend information to help the reader understand how the City's financial performance and well -being have changed over time. Revenue Capacity Tables 5 -8 These schedules contain information to help the reader assess the City's most significant revenue sources. Debt Capacity Tables 9 -11 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information Tables 12 -13 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating information Tables 14 -16 These schedules contain service and infrastructure data to help the reader understand how the information the City's financial report relates to the services the City provides and the activities it performs. 1 1 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA NET ASSETS BY COMPONENT, LAST NINE FISCAL YEARS (accrual basis of accounting) Table 1 Fiscal 1 "car 2003 2004 2005 2006 2007 2008 2009 2010 2011 Governmental activities Invested in capital assets, net of related debt $ 25,993,905 $ 28,807,262 $ 25,460,528 $ 29,549,174 $ 36,789,153 $ 28,472,865 $ 23,400,453 $ 22,562,217 $ 24,600,103 Restricted 3,568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 Unrestricted 15,668,226 16,249,541 13,577,071 14,516,466 6,339,528 10,790,359 15,926,322 16,738,885 13,463,210 Total governmental activities net assets $ 45,230,686 $ 48,101,855 $ 51,088,083 $ 54,770,148 $ 53,453,148 $ 49,133,900 $ 48,741,249 $ 47,729,127 $ 49,662,116 Business -type activities Invested in capital assets, net of related debt $ 25,537,383 $ 26,713,498 $ 28,342,832 $ 29,485,942 $ 29,836,775 $ 30,372,670 $ 30,071,840 $ 29,648,461 $ 29,216,866 Unrestricted 3,778,936 4,744,875 5,572,338 6,880,547 8,063,983 9,028,778 10,112,207 10,728,626 11,201,362 Total business -type activities net assets $ 29,316,319 $ 31,458,373 $ 33,915,170 $ 36,366,489 $ 37,900,758 $ 39,401,448 $ 40,184,047 $ 40,377,087 $ 40,418,228 Primary Government Invested in capital assets, net of related debt $ 51,531,288 $ 55,520,760 $ 53,803,360 $ 59,035,116 $ 66,625,928 $ 58,845,535 $ 53,472,293 $ 52,210,678 $ 53,816,969 Restricted 3,568,555 3,045,052 12,050,484 10,704,508 10,324,467 9,870,676 9,414,474 8,428,025 11,598,803 Unrestricted 19,447,162 20,994,416 19,149,409 21,397,013 14,403,511 19,819,137 26,038,529 27,467,511 24,664,572 Total primary government net assets $ 74,547,005 $ 79,560,228 $ 85,003,253 $ 91,136,637 $ 91,353,906 $ 88,535,348 $ 88,925,296 $ 88,106,214 $ 90,080,344 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003. 90 CITY OF LINO LAKES, MINNESOTA CHANGES IN NET ASSETS, LAST NINE FISCAL YEARS (accrual basis of accounting) Fiscal Year 2003 2004 2005 2006 2007 2008 2009 Expenses Governmental activities: General Government $ 6,092,587 $ 2,524,387 $ 2,941,279 $ 2,886,825 $ 2,197,672 $ 2,323,358 $ 2,201,439 Public Safety 2,648,944 2,799,294 3,091,174 3,516,376 3,730,504 4,051,162 4,299,366 Public Services 1,162,412 7,254,708 9,187,436 3,871,968 10,580,560 7,608,626 4,027,553 Parks, Recreation and Forestry 932,113 1,196,096 799,335 1,162,458 1,357,133 919,948 1,313,560 Conservation of Natural Resources 111,946 116,869 150,092 156,592 183,420 184,624 215,607 Community Development 859,110 420,874 383,211 691,880 1,122,802 1,114,158 1,005,997 Interest on long -term debt 815,681 748,832 797,341 926,021 980,849 1,045,781 928,668 Total governmental activities expenses $ 12,622,793 $ 15,061,060 $ 17,349,868 $ 13,212,120 S 20,152,940 $ 17,247,657 $ 13,992,190 Business -type activities: Water $ 968,458 $ 914,039 $ 876,592 $ 976,575 $ 1,170,902 $ 1,020,770 $ 1,089,569 Sewer 1,046,170 1,130,994 1,217,825 1,228,123 1,298,963 1,287,943 1,432,107 Total business -type activities 2,014,628 2,045,033 2,094,417 2,204,698 2,469,865 2,308,713 2,521,676 Total primary government expenses $ 14,637,421 $ 17,106,093 $ 19,444,285 $ 15,416,818 $ 22,622,805 $ 19,556,370 $ 16,513,866 Program Revenues Governmental activities: Charges for services: General Government $ 102,520 $ 122,861 $ 111,480 $ 88,924 $ 91,646 $ 79,844 $ 101,741 Public Safety 964,034 1,049,858 998,210 844,514 1,078,995 1,296,418 725,747 Public Works 493,312 454,191 434,087 420,741 389,489 413,040 428,174 Parks, Recreation and Forestry 250,816 242,857 196,951 188,439 185,803 187,285 165,994 Conservation of Natural Resources 5,369 11,763 4,873 6,854 4,559 3,660 3,858 Community Development 28,210 28,952 26,985 20,530 15,839 11,623 8,667 Operating grants and contributions 633,691 677,079 761,924 643,749 851,791 693,065 682,797 Capital grants and contributions 4,536,567 7,515,238 10,128,024 5,963,204 7,189,346 1,094,789 1,357,015 Total governmental activities program revenues $ 7,014,519 $ 10,102,799 $ 12,662,534 $ 8,176,955 $ 9,807,468 $ 3,779,724 $ 3,473,993 Business -type activities: Charges for services: Water $ 1,064,326 $ 979,075 $ 1,031,175 $ 1,175,172 $ 1,215,763 $ 1,058,493 $ 1,365,817 Sewer 1,216,589 1,280,652 1,361,759 1,391,702 1,446,112 1,472,093 1,502,164 Operating grants and contributions 62,710 Capital grants and contributions 2,719,081 1,589,419 1,733,775 1,535,631 80,750 10,117 8,769 Total business- type activities program revenues 4,999,996 3,849,146 4,126,709 4,102,505 2,742,625 2,540,703 2,939,460 Total primary government program revenues $ 12,014,515 $ 13.951.945 $ 16,789,243 $ 12,279,460 $ 12,550,093 $ 6.320,427 $ 6,413,453 Net (Expense) /Revenue Governmental activities Business -type activities Total primary government net expense $ (5,608,274) $ (4,958,261) $ (4,687,334) $ (5,035,165) $ (10,345,472) $ (13,467,933) $ (10,518,197) 2,985,368 1,804,113 2,032,292 1,897,807 272,760 231,990 417,784 $ (2,622,906) $ (3,154,148) $ (2,655,042) $ (3,137,358) $ (10,072,712) $ (13,235,943) $ (10,100,413) General Revenues and Other Changes in Net Assets Governmental activities: Property taxes $ 6,847,470 $ 6,630,279 $ 7,383,415 $ 8,269,944 $ 8,785,280 $ 9,424,697 $ 9,808,324 Unrestricted grants and contributions 256,877 129,607 11,321 Unrestricted investment eamings 194,220 221,302 433,387 713,794 864,578 576,071 429,325 Gain on sale of capital assets 1,280,957 33,217 17,424 12,512 12,644 Miscellaneous 160,955 Transfers (301,355) (303,108) (304,195) (299,725) (895,687) (994,202) (136,068) Total governmental activities $ 6,740,335 $ 7,829,430 $ 7,673,562 $ 8,717,230 $ 9,028,472 $ 9,148,685 $ 10,125,546 Business -type activities: Unrestricted investment earnings $ 20,866 $ 34,833 $ 120,310 $ 253,787 $ 365,822 $ 274,498 $ 228,747 Transfers 301,355 303,108 304,195 299,725 895,687 994,202 136,068 Total business -type activities 322,221 337,941 424,505 553,512 1,261,509 1,268,700 364,815 Total primary government $ 7,062,556 $ 8,167,371 $ 8,098,067 $ 9,270,742 $ 10,289,981 $ 10,417,385 $ 10,490,361 Change in Net Assets Governmental activities Business -type activities Total primary government change in net assets $ 1,132,061 $ 2,871,169 $ 2,986,228 $ 3,682,065 $ (1,317,000) $ (4,319,248) $ (392,651) 3,307,589 2,142,054 2,456,797 2,451,319 1,534,269 1,500,690 782,599 $ 4,439,650 $ 5,013,223 $ 5,443,025 $ 6,133,384 $ 217,269 $ (2,818,558) $ 389,948 Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003. 91 Table 2 2010 2011 $ 1,987,415 $ 1,990,137 3,971,261 4,019,101 3,968,063 8,110,979 1,124,907 1,218,472 197,571 139,544 1,105,254 617,747 1,064,172 927,535 $ 13,418,643 $ 17,023,515 $ 1,045,901 $ 966,643 1,466,847 1,638,063 2,512,748 2,604,706 $ 15,931,391 $ 19,628,221 $ 98,403 $ 103,687 691,005 713,985 427,223 382,287 177,984 210,976 4,153 4,392 14,148 5,138 617,450 593,798 1,388,984 7,347,613 $ 3,419,350 0 9.361,076 $ 1,087,013 $ 1,090,104 1,498,218 1,494,188 8,709 1,462 2,593,940 2,585,754 S 6,013,290 $ 11,947,630 $ (9,999,293) $ (7,661,639) 81,192 (18,952) $ (9,918,101) $ (7,680,591) $ 8,764,183 $ 8,768,805 4,389 4,072 225,677 251,250 37,579 (7,078) 66,122 $ 8,987,171 $ 9,127,828 $ 104,770 $ 126,215 7,078 (66,122) 111,848 60,093 $ 9,099,019 $ 9,187,921 $ (1,012,122) $ 1,466,189 193,040 41,141 $ (819,082) $ 1,507,330 92 CITY OF LINO LAKES, MINNESOTA FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Table 3 General Fund Reserved Unreserved Nonspendable Unassigned Total general fund All Other Governmental Funds Reserved reported in: Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds Unreserved reported in: Special Revenue Funds Capital Projects Funds Debt Service Funds Permanent Funds Nonspendable Restricted Committed Assigned Unassigned Total all other governmental funds Fiscal Year 2002 $ 120,727 4,232,291 2003 $ 133,921 4,775,969 $ 4,353,018 $ 4,909,890 $ 2,430 1,946,617 1,818,859 25,200 6,317,650 (612,943) $ 1,759 1,946,618 2,482,184 32,704 5,406,014 675,409 2004 $ 142,492 5,067,973 $ 5,210,465 $ 1,718 957,112 2,556,300 57,616 6,241,408 452,972 2005 $ 148,652 5,300,156 $ 5,448,808 $ 1,763 957,112 7,371,359 100,000 74,716 7,348,375 853 $ 9,497,813 $ 10,544,688 $ 10,267,126 $ 15,854,178 Total all funds $ 13,850,831 $ 15,454,578 $ 15,477,591 $ 21,302,986 93 Table 3 (Continued) Fiscal Year 2006 $ 153,009 5,337,225 $ 5,490,234 $ 1,813 957,112 3,992,952 100,000 82,385 5,525,508 5,378 2007 $ 181,759 5,356,272 2008 $ 190,825 5,393,316 $ 5,538,031 $ 5,584,141 $ 226,921 885,825 3,925,402 100,000 100,955 8,395,827 17,023 $ 226,973 812,400 3,405,272 100,000 106,573 5,927,411 22,224 $ 10,665,148 $ 13,651,953 $ 10,600,853 $ 16,155,382 $ 19,189,984 $ 16,184,994 2009 $ 196,568 5,191,396 $ 5,387,964 $ 227,176 736,772 3,457,349 100,000 93,956 11,611,835 (558,443) 15,824 $ 15,684,469 $ 21,072,433 94 2010 2011 $ 181,471 $ 5,445,334 165,079 5,440,101 $ 5,626,805 $ 5,605,180 $ 227,342 $ 658,875 2,986,102 100,000 110,471 12,537,841 (1,093,765) 12,676 906,010 - 2,658,010 110,568 10,808,268 (3,154,496) $ 15,539,542 $ 11,328,360 $ 21,166,347 $ 16,933,540 CITY OF LINO LAKES, MINNESOTA CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS (modified accrual basis of accounting) Table 4 Revenues Property Taxes Licenses and Permits Intergovernmental Special Assessments Charges for Services Fines and Forfeits Investment Earnings Miscellaneous Total revenues Expenditures Current: General Government Public Safety Public Works Parks, Recreation and Forestry Conservation of Natural Resources Community Development Capital outlay Debt Service Principal Interest and fiscal charges Construction/Acquisition Total expenditures Excess (deficiency) of revenues over expenditures Other Financing Sources (Uses) Sale of Property Proceeds from Issuance of Debt Premium on Bonds Issued Discount on Bonds Issued Payment to Refunded Bond Escrow Agent Loan Payable Reapportionment Transfer In Transfer Out Total other financing sources (uses) Net change in fund balances Fiscal Year 2002 $ 6,243,200 913,498 858,816 2,050,015 611,414 100,393 447,182 710,513 11,935,031 2003 $ 6,687,516 766,524 2,011,285 2,812,386 658,370 97,223 194,049 677,823 13,905,176 2004 $ 6,523,938 867,909 2,419,531 1,587,510 639,565 106,053 221,303 782,179 13,147,988 2005 $ 7,230,287 812,172 1,808,111 1,769,821 601,548 100,980 433,385 948,009 13,704,313 2006 $ 8,103,263 581,582 1,818,519 2,901,100 687,551 101,518 713,795 716,692 15,624,020 2,893,683 5,808,015 2,261,908 2,701,731 2,614,303 2,463,004 2,609,171 2,798,013 3,099,032 3,314,159 1,245,451 1,770,649 5,126,578 7,071,322 7,755,727 952,039 969,597 954,945 1,111,301 1,076,727 111,880 114,580 115,631 140,334 143,653 - - 683,036 1,057,099 622,218 515,287 464,553 835,770 2,851,332 1,684,450 1,960,000 2,016,000 2,155,000 1,030,395 865,638 798,405 838,950 1,011,157 1,833,592 229,321 - - 14,43 8,475 14,673,639 14,530,767 17,443,223 19,589,532 (2,503,444) (768,463) (1,382,779) (3,738,910) (3,965,512) - - 1,280,957 280,269 28,818 2,878,201 2,673,565 1,604,000 9,412,000 6,327,000 - - 176,231 450 (6,057) - (13,635) (1,170,000) - (7,225,000) 851,472 1,120,223 5,283,306 2,651,469 5,811,452 (1,155,547) (1,421,578) (5,586,414) (2,955,664) (6,111,177) 2,574,126 2,372,210 1,405,792 9,564,305 (1,182,092) $ 70,682 $ 1,603,747 $ 23,013 $ 5,825,395 $ (5,147,604) Debt service as a percentage of noncapital expenditures 33.6% 95 18.4% 19.7% 16.8% 16.9% Table 4 (Continued) Fiscal Year 2007 2008 $ 8,529,846 $ 9,095,085 694,435 802,135 6,143,689 1,004,476 1,961,253 950,188 753,698 872,534 139,932 133,531 864,578 576,071 889,901 516,415 19,977,332 13,950,435 2009 $ 9,561,570 307,714 1,259,016 968,995 778,163 111,807 429,325 513,306 13,929,896 2010 $ 8,647,488 330,138 1,176,863 851,270 780,044 127,203 225,677 502,992 12,641,675 1,953,960 2,058,267 1,918,246 1,730,390 3,513,460 3,806,389 4,122,352 3,798,106 8,446,911 5,542,308 1,965,640 1,902,411 1,103,021 1,033,260 1,106,006 945,821 183,346 183,024 209,466 185,232 1,107,328 1,113,232 1,005,095 1,098,682 2,008,073 585,875 501,806 282,938 1,973,000 1,749,000 1,908,000 1,866,000 937,895 1,074,052 994,809 1,042,883 21,226,994 17,145,407 13,731,420 12,852,463 2011 $ 8,655,971 322,030 1,331,914 904,522 812,604 154,020 251,244 460,710 12,893,015 1,773,515 3,791,329 2,192,732 1,059,191 134,122 624,286 4,209,593 2,030,000 983,129 16,797,897 (1,249,662) (3,194,972) 198,476 (210,788) (3,904,882) 54,037 4,375,000 (25,798) 2,900,249 (3,019,224) 4,284,264 13,750 209,000 4,763,391 (4,796,159) 189,982 35,700 4,596,000 11,141 1,413,985 (1,367,863) 4,688,963 20,600 1,170,000 10,980 (965,000) 1,195,747 (1,127,625) 304,702 50,953 120,000 (565,000) 2,971,715 (2,905,593) (327,925) $ 3,034,602 $ (3,004,990) $ 4,887,439 $ 93,914 $ (4,232,807) 15.1% 27.6% 22.7% 23.7% 18.6% CITY OF LINO LAKES, MINNESOTA ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS Table 5 Commercial/ Total Taxable Payable Residential Industrial Personal Assessed Total Direct Year Property Property Property Value Tax Rate 2002 $ 9,179,811 $ 1,202,560 $ 246,594 $ 10,628,965 $ 53.08 2003 10,649,345 1,487,554 251,016 12,387,915 47.60 2004 12,252,347 1,982,146 259,194 14,493,687 42.29 2005 14,055,076 2,290,829 274,956 16,620,861 42.22 2006 15,825,619 2,740,583 271,665 18,837,867 41.40 2007 17,605,080 3,047,965 288,290 20,941,335 38.99 2008 18,382,645 3,431,107 279,102 22,092,854 38.97 2009 18,919,087 4,002,349 275,496 23,196,932 38.73 2010 17,978,917 3,800,004 291,904 22,070,825 37.91 2011 16,214,698 3,223,901 303,964 19,742,563 42.04 Source: Anoka County, Minnesota Assessors' Office 97 CITY OF LINO LAKES, MINNESOTA Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $100 of Tax Capacity) Table 6 City Direct Rate Overlapping Rates General Centennial Total Direct Obligation School Other and Debt Redevelopment Total District Anoka Taxing Total Overlapping Fiscal Year Basic Rate Service Debt Service Direct ISD # 12 County Districts Overlapping Tax Rate 2002 $ 43.940 $ 9.144 $ 53.084 $ 37.828 $ 37.976 $ 5.913 $ 81.717 $ 134.801 2003 40.268 7.335 47.603 37.467 37.714 7.050 82.231 129.834 2004 36.302 5.985 42.287 36.649 35.221 6.373 78.243 120.530 2005 36.838 5.385 42.223 37.486 33.080 6.696 77.262 119.485 2006 36.044 5.354 41.398 40.253 32.096 6.479 78.828 120.226 2007 34.356 4.638 38.994 38.090 30.696 5.578 74.364 113.358 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 Source: Anoka County Property Records and Tax Division Notes: The majority of Lino Lakes is served by Independent School District No. 12. Rates for debt service are based on each year's requirements. 98 CITY OF LINO LAKES, MINNESOTA PRINCIPAL PROPERTY TAXPAYERS, CURRENT YEAR AND NINE YEARS AGO Table 7 2011 2002 Percentage Percentage of Total of Total City City Taxable Taxable Taxable Taxable Net Tax Net Tax Net Tax Net Tax Taxpayer Capacity Rank Capacity Capacity Rank Capacity Target Corporation $ 241,894 1 1.22 % $ - % Lino Lakes Realty LLC 227,648 2 1.15 - - Xcel Energy 152,398 3 0.77 129,316 1 0.99 Moline Concrete Products 140,306 4 0.71 85,888 4 0.66 Kohl's Depaitment Store 130,194 5 0.66 - - Taylor Corporation 111,778 6 0.57 96,938 2 0.74 Gargaro Properties LLC 97,920 7 0.49 - EOC Lino Lakes LLC 96,246 8 0.49 Marmon/Keystone Corp 89,250 9 0.45 - Royal Oaks Realty Inc 79,789 10 0.40 - Lino Lakes Business Center - 93,570 3 0.72 Individual 72,200 5 0.55 F &G Incorporated - 62,078 6 0.48 Anoka Electric Cooperative - 41,040 7 0.32 Minnegasco, Inc. - 40,446 8 0.31 Northern Development LLC 39,958 9 0.30 DJT Properties, LLC 29536 10 0.23 Total Source: Anoka County $ 1,367,423 6.91 % 99 $ 690,970 5.30 % CITY OF LINO LAKES, MINNESOTA PROPERTY TAX LEVIES AND COLLECTIONS. LAST TEN FISCAL YEARS Table 8 Taxes Levied for the Fiscal Year Collected within the Fiscal Year of Levy Percentage Fiscal Operating Debt Total Tax of Year Tax Levy Tax Levy Levy Amount Levy 2002 $ 4,885,509 $ 1,016,649 $ 5,902,158 $ 5,847,692 99.1% 2003 5,180,932 943,689 6,124,621 6,062,273 99.0% 2004 5,623,542 927,078 6,550,620 6,145,419 93.8% 2005 6,342,211 927,091 7,269,302 6,881,838 94.7% 2006 7,042,626 934,281 7,976,907 7,594,019 95.2% 2007 7,558,995 897,333 8,456,328 8,324,180 98.4% 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% Notes: Current year levies and collections include State levy related credits (HACA and Market Value Credit). Does not include tax increment levies and collections. 100 Table 8 (Continued) Total Collections to Date Collections in Percentage Outstanding Percentage Subsequent of Delinquent of Levy Years Amount Levy Taxes Outstanding $ 56,678 $ 5,904,370 100.0% $ 87,237 6,149,510 100.0% 48,417 6,193,836 100.0% 56,188 6,938,026 95.4% 61,568 7,655,587 96.0% 101,847 8,426,027 99.6% 108,474 8,690,448 98.0% 106,254 9,089,010 98.3% 8,400,439 96.6% 8,486,845 98.0% 101 356,784 331,276 321,320 30,301 176,508 155,328 294,975 173,155 0.0% 0.0% 5.4% 4.6% 4.0% 0.4% 2.0% 1.7% 3.4% 2.0% CITY OF LINO LAKES, MINNESOTA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Table 9 Business -Type Governmental Activities Activities General General Special Other Obligation Total Fiscal Obligation Assessments Long -Term Revenue Primary Year Bonds Payable Debt Bonds Government 2002 $ 6,244,450 $ 11,640,000 $ - $ 3,220,000 $ 21,104,450 2003 6,030,000 12,840,000 2,970,000 21,840,000 2004 5,764,000 11,580,000 2,705,000 20,049,000 2005 5,335,000 19,405,000 2,425,000 27,165,000 2006 7,177,000 13,940,000 4,410,000 25,527,000 2007 11,569,000 12,520,000 1,855,000 25,944,000 2008 11,184,000 11,365,000 1,530,000 24,079,000 2009 10,712,000 10,265,000 4,260,000 1,170,000 26,407,000 2010 10,141,000 9,175,000 4,260,000 795,000 24,371,000 2011 9,421,000 7,985,000 3,695,000 405,000 21,506,000 Notes: Details regarding the District'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. 102 Table 9 (Continued) Less: Amounts Percentage Percentage Available in Debt Net of Assessed of Personal Per Service Funds Bonded Debt Market Value Income Capita $ 1,818,859 $ 19,285,591 0.60 3.57 $ 1,224 2,482,184 19,357,816 0.48 3.38 1,113 2,556,300 17,492,700 0.40 2.91 975 7,371,359 19,793,641 0.35 3.09 1,078 3,992,952 21,534,048 0.41 3.13 1,150 3,925,402 22,018,598 0.60 3.13 1,118 3,405,272 20,673,728 0.55 2.77 1,048 3,457,349 22,949,651 0.50 N/A 1,156 2,986,102 21,384,898 0.48 N/A 1,070 2,638,129 18,867,871 0.44 N/A 929 CITY OF LINO LAKES, MINNESOTA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT As of December 31, 2011 Table 10 Overlapping: Anoka County ISD 12 ISD 624 ISD 831 Metropolitan Council Anoka County Railroad Authority Total Overlapping City of Lino Lakes Direct Debt Total Direct and Overlapping Debt: Debt Outstanding $ 150,438,506 82,525,000 108,130,000 32,920,000 213,645,000 29,285,000 $ 21,506,000 Estimated Percentage Applicable 6.6% 48.0% 3.5% 7.7% 0.6% 6.6% Estimated Share of Overlapping Debt $ 9,962,720 39,609,047 3,806,186 2,544,506 1,330,641 1,939,385 59,192,485 100% 21,506,000 $ 80,698,485 Sources: Taxable value data used to estimate applicable percentages provided by the County Property Appraiser. Debt outstanding data provided by each governmental unit. Notes: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of 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. Determined by ratio of net tax capacity (after fiscal disparities and tax increment adjustment) of property subject to taxation in overlapping unit to valuation of property subject to taxation in City. 104 CITY OF LINO LAKES, MINNESOTA Legal Debt Margin Information Last Ten Fiscal Years Table 11 Fiscal Year 2002 2003 2004 2005 Debt limit $ 20,688,642 $ 25,024,436 $ 28,616,070 $ 30,698,674 Total net debt applicable to limit 5,479,450 5,350,000 5,169,000 4,845,000 Legal debt margin $ 15,209,192 $ 19,674,436 $ 23,447,070 $ 25,853,674 Total net debt applicable to the limit as a percentage of debt limit 26.49% 21.38% 18.06% 15.78% 105 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 1 1 1 Table 11 Legal Debt Margin Calculation for Fiscal Year 2011 Market value $ 1,804,121,500 Debt limit (3% of market value) 54,123,645 Debt applicable to limit 2,961,000 Legal debt margin $ 51,162,645 Fiscal Year 2006 2007 2008 2009 2010 2011 $ 34,686,356 $ 38,556,150 $ 60,658,830 $ 64,036,746 $ 60,056,688 $ 54,123,645 4,332,000 4,039,000 3,804,000 3,642,000 3,386,000 2,961,000 $ 30,354,356 $ 34,517,150 $ 56,854,830 $ 60,394,746 $ 56,670,688 $ 51,162,645 12.49% 10.48% 6.27% 5.69% 5.64% 5.47% 106 CITY OF LINO LAKES, MINNESOTA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN CALENDAR YEARS Table 12 (2) Personal Per Income Capita (3) (4) Fiscal (1) (thousands Personal School Unemployment Year Population of dollars) Income Enrollment Rate 2002 17,942 $ 572,099 $ 31,886 6,985 4.3 2003 18,368 600,266 32,680 6,992 5.0 2004 18,725 640,170 34,188 6,956 4.6 2005 19,698 686,968 34,875 6,934 3.8 2006 19,736 703,983 35,670 6,986 4.1 2007 19,851 745,901 37,575 6,874 4.8 2008 19,987 774,376 38,744 6,754 6.9 2009 20,305 N/A N/A 6,722 7.8 2010 20,400 N/A N/A 6,621 7.1 2011 20,300 N/A N/A 6,426 5.9 Source: (1) Estimates from Metropolitan Council, except for 2010 which is per the U.S. Census & 2011 which is city estimate (2) Information from Bureau of Economic Analysis Report - Anoka County statistics used as local information is unavailable (3) Information from ISD 12 Website (4) Information from MN Department of Employment and Economic Development - Anoka County statistics used as local information is unavailable Note: Information not available is marked N/A 107 1 1 1 1 1 1 1 t 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA PRINCIPAL EMPLOYERS, CURRENT YEAR AND NINE YEARS AGO Table 13 Employer 2011 2002 (1) (1) Percentage Percentage of Total of Total Employees Rank Employment Employees Rank Employment State of Minnesota Corrections 432 1 N/A % 600 1 N/A % ISD 12 - Centennial Schools 362 2 N/A N/A Target Corporation 260 3 N/A - N/A Curtis 1000 130 4 N/A - - N/A Kohls 121 5 N/A 160 3 N/A Molin Concrete Products 120 6 N/A 135 5 N/A YMCA 120 7 N/A - - N/A Rehbein Transit, Inc. 100 8 N/A 130 6 N/A Anoka County Juvenile Center 86 9 N/A 160 3 N/A Nol -Tech Systems, Inc. 70 10 N/A 57 10 N/A City of Lino Lakes - 67 8 N/A AdGraphics - - 300 2 Custom Manufacturing 60 9 Summit Fire Protection - 120 7 Total 1,801 - % 1,789 % Source: City of Lino Lakes Official Statements Notes: (1) = While information was obtainable for the largest employers within the City of Lino Lakes, information on the total employment within the City was not available. 108 CITY OF LINO LAKES, MINNESOTA Full- time - Equivalent Employees by Type Last Ten Fiscal Years Table 14 2002 2003 2004 2005 2006 General Government Administration 5.00 5.00 5.00 5.00 5.00 Seniors 0.63 0.63 0.63 0.63 0.63 Finance 3.50 3.50 3.50 3.50 3.50 Economic Development 1.75 1.00 1.00 1.00 1.00 Planning 2.00 2.00 2.00 2.00 2.00 Community Development 2.00 2.00 2.00 2.75 2.75 Engineering - Building 1.00 1.00 1.00 1.00 1.00 Other 0.55 0.55 0.55 1.15 1.15 Total General Government 16.43 15.68 15.68 17.03 17.03 Public Safety Officers 22.00 22.00 22.00 25.00 26.00 Civilians 4.00 4.00 4.00 4.75 4.75 Building Inspection 4.00 4.00 4.00 4.25 4.25 Total Public Safety 30.00 30.00 30.00 34.00 35.00 Public Works Streets 5.85 5.85 5.85 6.35 6.85 Other 1.15 1.15 1.15 1.15 1.15 Total Public Works 7.00 7.00 7.00 7.50 8.00 Parks, Recreation and Forestry 9.15 9.15 9.15 9.05 9.55 Water 2.15 2.15 2.15 2.15 2.15 Sewer 2.15 2.15 2.15 2.15 2.15 Total 66.88 66.13 66.13 71.88 73.88 Source: City Finance Office 109 1 i 1 1 1 1 1 1 1 1 1 1 1 1 r Table 14 (Continued) 2007 2008 2009 2010 2011 5.00 5.00 5.00 4.00 3.50 0.63 0.63 0.63 0.63 3.50 3.50 3.50 3.00 3.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 2.00 2.00 1.00 2.75 2.75 2.75 2.25 2.00 1.00 1.00 1.00 1.00 1.40 1.40 1.40 1.40 0.70 17.28 17.28 17.28 15.28 11.20 26.00 27.00 27.00 27.00 25.00 4.75 4.75 4.75 4.25 4.00 4.25 4.25 4.25 2.75 2.50 35.00 36.00 36.00 34.00 31.50 7.35 7.35 7.35 6.85 7.00 1.15 1.15 1.15 1.15 1.00 8.50 8.50 8.50 8.00 8.00 9.80 9.80 9.80 9.30 9.00 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 2.15 74.88 75.88 75.88 70.88 64.00 110 CITY OF LINO LAKES, MINNESOTA OPERATING INDICATORS BY FUNCTION /PROGRAM Last Ten Years Table 15 Function /Program Fiscal Year 2002 2003 2004 2005 General Government Elections Registered voters Number of votes cast Voter participation (registered) 2 1 2 1 9,423 9,911 11,718 11,035 88.0% 46.9% 86.6% 47.9% I/ 8,291 4,650 10,147 5,288 1 Public Safety Police: Calls for Service 7,318 7,668 7,538 7,766 Traffic Citations & Warnings 2,611 2,564 3,258 3,631 Part I Crimes 404 370 316 257 Part II Crimes 1,259 1,004 644 591 Inspections: Building Permits (1) 860 826 835 837 Inspections N/A N/A N/A N/A Value of Building Permits $53,977,610 $55,864,076 $61,579,910 $53,686,592 Public Works General Maintenance (hours) N/A 2,656 3,263 6,014 Street Maintenance (hours) N/A 4,082 3,533 3,106 Fleet Maintenance (hours) N/A 3,780 3,804 4,440 Snow Plowing /Sanding (hours) N/A 1,020 855 1,003 Culture and Recreation Parks: Park Maintenance (hours) N/A N/A 10,210 10,577 Utilities Water Maintenance (hours) N/A N/A 4,349 3,904 Sanitary Sewer Maintenance (hours) N/A N/A 3,347 4,092 Source: Various City Departments Notes: Information not available is labeled N /A. (1) 1,565 and 4,337 repair permits issued in 2007 and 2008, respectively, due to storm damage. 111 {I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 v 1 1 t 1 1 Table 15 (Continued) Fiscal Year 2006 2007 2008 2009 2010 2011 2 1 2 1 2 1 11,618 10,908 12,723 11,805 12,284 11,705 8,284 2,337 11,051 4,354 8,545 4,314 71.3% 21.4% 86.9% 36.9% 69.6% 36.9% 7,418 7,208 7,318 6644 6575 6360 5,958 3,796 3,304 3180 2744 2599 292 250 305 215 225 221 649 671 1,191 630 667 656 686 2,297 5,041 1,535 509 509 N/A N/A N/A N/A N/A N/A $42,078,007 $30,539,559 $15,852,780 $ 9,586,160 $ 11,295,493 $ 11,295,493 5,692 6,758 6,129 5,870 4,945 7,416 3,631 2,916 3,851 3,267 3,099 4,352 4,460 4,144 5,043 4,782 4,850 4,214 867 1,425 1,353 950 1,638 1,534 10,368 10,939 11,136 12,406 9,257 9,813 4,387 4,256 5,716 5,041 3,560 3,568 3,347 4,148 3,760 3,486 3,531 3,557 112 CITY OF LINO LAKES, MINNESOTA CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM Last Ten Years Table 16 Function/Program Fiscal Year 2002 2003 2004 2005 2006 Public Safety Police: Stations 1 1 1 1 1 Patrol Units 9 9 10 11 12 Fire (Joint Powers): Stations in City 1 1 1 1 1 Fire Trucks 4 4 4 4 5 Public Works Lights 486 489 489 559 673 Vehicles 28 28 29 29 29 City Streets (miles) 93.2 93.8 94.3 95.5 96.0 Culture and Recreation Parks: Parks 18 19 19 18 18 Park Acres 138 142 142 141 141 Trails (miles) 14 18 18 19 20 Park Shelters 4 4 5 5 7 Basketball Courts 5 6 6 6 6 Fishing Pier 1 1 1 1 1 Skating Rinks 4 4 4 4 4 Soccer Fields 8 8 8 8 8 Baseball/Softball Fields 18 18 18 18 20 Tennis Courts 2 2 2 2 2 Playgrounds 16 17 17 17 16 Water Distribution System (miles) 42.5 46.2 48.2 50.8 51.1 Water Connections 3,433 3,548 3,738 3,957 4,090 Gallons Pumped (millions) 358 518 474 475 565 Number of Fire Hydrants 409 452 490 523 558 Water Tower Capacity (millions gallons) 2 2 2 2 2 Sanitary Sewer Collection System (miles) 51.3 59.2 61.4 63.5 63.3 Sewer Connections 3,636 3,763 3,960 4,142 4,282 Storm Sewer Pipe (miles) Source: Various City Departments 29.8 113 31.3 31.9 33.1 34.1 1 1 1 1 1 1 1 1 1 1 i 1 1 1 1 1 1 1 1 i 1 1 K 1 1 1 1 1 Table 16 (Continued) Fiscal Year 2007 2008 2009 2010 2011 1 1 1 1 1 12 12 l2 12 12 1 1 1 1 1 5 5 5 5 5 673 673 673 673 673 29 29 29 29 29 96.1 96.1 96.1 96.1 96.1 18 18 18 18 18 141 141 141 141 141 29 29 29 29 29 7 7 7 7 6 6 6 6 6 6 1 1 1 1 1 4 4 4 4 4 8 8 8 8 8 20 20 20 20 20 2 2 2 2 2 16 16 16 16 16 51.5 51.5 51.5 51.5 51.5 4,112 4,247 4,340 4,382 4,424 595 590 589 498 492 558 558 558 558 558 2 2 2 2 2 64.5 64.5 64.5 64.5 64.5 4,428 4,447 4,486 4,530 4,567 34.3 34.3 34.3 114 34.3 34.3 CITY OF LINO LAKES, MINNESOTA OTHER AUDIT REPORTS YEAR ENDED DECEMBER 31, 2011 1 1 1 1 1 1 1 1 i 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA TABLE OF CONTENTS YEAR ENDED DECEMBER 31, 2011 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 1 REPORT ON MINNESOTA LEGAL COMPLIANCE 4 OTHER REQUIRED AUDITOR COMMUNICATIONS 5 CliftonLarsonAllen CliftonLarsonAllen LLP www.cliftonlarsonallen.com REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and Members of the City Council City of Lino Lakes, 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) as of and for the year ended December 31, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon dated May 17, 2012. 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. Internal Control Over Financial Re • ortin • In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing our auditing procedures 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's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as discussed below, we identified a certain deficiency in internal control that we consider to be a material weakness. 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. We consider the following deficiency in the City's internal control to be a material weakness: (1) Honorable Mayor and Members of the City Council City of Lino Lakes Material Audit Adjustment - Internal Control over the Financial Reporting Process Condition: Management noted that there was a material misstatement in the December 31, 2010 financial statements related to capital assets where land donated to the City in prior years was not capitalized. The amount of misstatement was material to the City's financial statements, and as a result, this misstatement was corrected by adjusting beginning net assets of the governmental activities. While the City's internal controls did detect the misstatement, it was not detected in a timely manner. Criteria: The City should have controls in place to prevent and detect a material misstatement in the financial statements in a timely manner. Management is responsible for the accuracy and completeness of all financial records and related information. Their responsibilities include adjusting the financial statements to correct material misstatements. Effect: Correction of a material misstatement in the financial statements. Cause: The City's established controls to ensure that all accounts are adjusted to their appropriate year -end balances in accordance with generally accepted accounting principles (GAAP) did not detect the misstatement in a timely manner. Recommendation: We recommend the City continue to evaluate its internal control processes to determine if additional internal control procedures should be implemented to ensure that accounts are adjusted to their appropriate year -end balances in accordance with GAAP. Management Response: Management did discover the understatement of capital assets during a review conducted for 2011. We agree that the discovery of the error or misstatement was untimely; it should have been discovered when the transaction occurred in the early 2000's. Management will continue to review is process to ensure that non -cash transactions are properly recorded. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of 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. The City's responses to the findings identified in our audit are described above. We did not audit the City's responses and, accordingly, we express no opinion on them. We noted certain matters that we reported to management of the City in a separate letter dated May 17, 2012. (2) Honorable Mayor and Members of the City Council City of Lino Lakes This report is intended solely for the information and use of the City Council, finance committee, management, the Office of the State Auditor, and federal awarding agencies and pass- through entities and is not intended to be and should not be used by anyone other than these specified parties. Minneapolis, Minnesota May 17, 2012 (3) CliftonLarsonAllen LLP et) CliftonLarsonAllen CliftonLarsonAllen LLP www.cliftonlarsonallen.com REPORT ON MINNESOTA LEGAL COMPLIANCE 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 as of and for the year ended December 31, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon dated May 17, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant to Minnesota Statute 6.65. Accordingly, the audit included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The Minnesota Legal Compliance Audit Guide for Political Subdivisions covers seven main 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 study included all of the listed categories. The results of our tests indicate that, with respect to the items tested, the City of Lino Lakes, Minnesota complied with the material terms and conditions of applicable legal provisions. This report is intended solely for the use of the City of Lino Lakes, Minnesota, the Office of the State Auditor, and other state agencies, and is not intended to be and should not be used by anyone other than these specified parties. Minneapolis, Minnesota May 17, 2012 (4) CliftonLarsonAllen LLP (V CliftonLarsonAllen CliftonLarsonAllen LLP www.cliftonlarsonallen.com OTHER REQUIRED AUDITOR COMMUNICATIONS 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, 2011, which collectively comprise the City's basic financial statements and have issued our report thereon dated May 17, 2012. Professional standards require that we provide you with the following information related to our audit. Our responsibility under U.S. Generally Accepted Auditing Standards and Government Auditing Standards As stated in our engagement letter dated December 22, 2011 our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. As part of our audit, we considered the internal control of the City. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the City's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our tests was not to provide an opinion on compliance with such provisions. 1. Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement. 2. We are responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures specifically to identify such matters. 3. We are also responsible for communicating matters regarding the provisions of the Minnesota Legal Compliance Audit Guide for Political Subdivisions, promulgated by the State Auditor pursuant Minnesota Statute 6.65. (5) Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota Planned scope and timing of the audit We performed the audit according to the planned scope and timing previously communicated to you in our meeting about planning matters on April 5, 2012. Significant audit findings 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 discussed in Note 1 to the financial statements, the City adopted GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions. Aside from the implementation of this standard, no other accounting policies were adopted and the application of existing policies was not changed during 2011. We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were: Estimated useful lives of depreciable capital assets — Management's estimate of useful lives for depreciable assets is based on guidance recommended by authoritative accounting literature and past experiences. The useful life of a depreciable asset determines the amount of depreciation that will be recorded in any given reporting period as well as the amount of accumulated depreciation that is reported at the end of a reporting period. Estimated year -end valuation of investments at fair value — Management's estimate of the fair value of investments is based on published market values at December 31, 2011. We evaluated the key factors and assumptions used to develop the above estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties encountered in performing the audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and uncorrected misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. Management did not identify and we did not notify them of any uncorrected misstatements. The following material misstatement was corrected by management: understatement of capital assets related to land contributed in prior years. (6) Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota Disagreements with management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the financial statements or the auditors' 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 17, 2012. Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's financial statements or a determination of the type of auditors' opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. 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. Other information in documents containing audited financial statements Our responsibility for the supplementary information accompanying the financial statements, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with U.S. generally accepted accounting principles, 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 have issued our report thereon dated May 17, 2012. Other information is being included in documents containing the audited financial statements and the auditors' report thereon. Our responsibility for such other information does not extend beyond the financial information identified in our auditors' report. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in such documents. As required by professional standards, we read the other information in order to identify material inconsistencies between the audited financial statements and the other information. We did not identify any material inconsistencies between the other information and the audited financial statements. (7) Honorable Mayor and Members of the City Council City of Lino Lakes, Minnesota With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management's responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI. This report is intended solely for the use of the City Council, finance committee, and management of the City of Lino Lakes and is not intended to be, and should not be, used by anyone other than these specified parties. Minneapolis, Minnesota May 17, 2012 (8) �dzio---c_ LLB CliftonLarsonAllen LLP P25 • CITY COUNCIL AGENDA ITEM 3A STAFF ORIGINATOR: Jeff Karlson MEETING DATE: May 29, 2012 TOPIC: Revised Personnel Policy VOTE REQUIRED: 3/5 INTRODUCTION The Council is being asked to adopt the revised Personnel Policy. BACKGROUND The Council reviewed the revised policy at the May 7 and May 29 work sessions. The most recent draft is attached for your consideration. RECOMMENDATION • Staff recommends approval of the May 2012 Personnel Policy. • P26 City of Lino Lakes Personnel Policy May 2012 • • • • TABLE OF CONTENTS SECTION 1 PURPOSE AND SCOPE PAGE 1.1 Purpose 1 1.2 Scope 1 1.3 Applicability to Unionized Personnel 1 1.4 Statement of Non - Discrimination 1 1.5 Confidentiality /Data Practices Advisory 2 1.6 Minnesota Personnel Record Review and Access Act 4 SECTION 2 DEFINITIONS 2.1 Definitions 5 SECTION 3 APPOINTMENTS AND EMPLOYMENT 3.1 Physical & Psychological Examination 6 3.2 Background Investigations 6 3.3 Probationary Period 6 3.4 Work Schedule 7 3.5 Performance Evaluations 7 3.6 Promotions 7 3.7 Veteran's Preference 7 3.8 Americans with Disabilities Act (ADA) 8 3.9 Disciplinary Steps 8 3.10 Grievance Procedures 9 SECTION 4 COMPENSATION 4.1 Position Classifications 11 4.2 Compensation Plan 11 SECTION 5 EMPLOYEE BENEFITS 5.1 Health Care Benefits 12 5.2 Pre -Tax Benefits 12 5.3 Health Insurance Continuation (COBRA) 12 5.4 Deferred Compensation 13 5.5 Long -Term Disability 13 5.6 Safety Committee 13 5.7 Employee Wellness 13 5.8 Employee Assistance Program (EAP) 14 5.9 Computer Purchase Plan 14 5.10 Post Employment Health Care Saving Account 15 5.11 College Savings Plan 15 i P27 P28 SECTION 6 ATTENDANCE AND LEAVES PAGE 6.1 Holidays 16 6.2 Vacation Leave 16 6.3 Sick Leave 17 6.4 Leave Donation Program 17 6.5 Workers' Compensation 19 6.6 Sick Child /School Child Leave 19 6.7 Funeral Leave 20 6.8 Military Leave 20 6.9 Time Off to Vote 20 6.10 Jury Duty 20 6.11 Serving as an Election Judge 21 6.12 Family Medical Leave Act (FMLA) 21 6.13 Parental Leave 23 6.14 Personal Leave of Absence 24 6.15 Leave without Pay 24 6.16 Bone Marrow Donation Leave 24 6.17 Absence without Leave 25 6.18 Severe Weather 25 6.19 Personal Time Off (PTO) Leave 25 SECTION 7 EDUCATION AND EXPENSE REIMBURSEMENT 7.1 Tuition Reimbursement 29 7.2 Travel Reimbursement 29 7.3 Mobile Phones 31 SECTION 8 CONDUCT AND ETHICS 8.1 Conduct as a City Employee 32 8.2 Political Activity 33 8.3 Conflict of Interest 33 8.4 Nepotism 33 8.5 Omnibus Child Support Enforcement Act 33 8.6 Workplace Harassment 33 8.7 Reporting Workplace Harassment 34 8.8 Drug and Alcohol Testing 35 8.9 Drug and Alcohol Testing for Commercial Drivers 45 8.10 Professional Appearance 48 8.11 Computer Use Policy 48 SECTION 9 SEPARATION FROM CITY EMPLOYMENT 9.1 Voluntary Resignation 52 9.2 Reduction in Force 52 9.3 Termination 52 9.4 Severance Pay 53 ii • P29 SECTION 10 DISCIPLINARY HEARINGS 10.1 Request for Hearing 54 10.2 Pre - Termination Hearing 54 10.3 Post - Discharge Hearing S4 10.4 Veterans' Preference Hearing 54 P30 SECTION l: PURPOSE AND SCOPE 1.1 Purpose The purpose of this policy is to establish a uniform and equitable system of personnel administration for employees of the City of Lino Lakes. Terms and conditions of employment not specifically established in this Personnel Policy shall remain solely within the discretion of the City to modify, establish, or eliminate. The City retains the full and unrestricted right to operate and manage all personnel, facilities, and equipment; to establish functions and programs; to set and amend budgets; to determine the utilization of technology; to establish and modify the organizational structure; to select, direct, and determine the number of personnel; to establish work schedules; and to perform any inherent managerial functions not specifically referred to in this policy. 1.2 Scope This handbook contains policies and procedures for supervisors and employees and does not apply to the following: • Elected officials and members of boards and commissions, unless specifically stated otherwise • Paid on call fire personnel • Consultants rendering professional services If a section in this personnel policy is held invalid by judicial or legislative action, the remainder of these policies will not be affected. 1.3 Applicability to Union Personnel The provisions of these policies and procedures shall also apply to all organized personnel who work under a collective bargaining agreement with the City. In the event of a conflict between the terms of a collective bargaining agreement and this policy, the terms of the collective bargaining agreement shall take precedence. 1.4 Statement of Non - Discrimination It is the policy of the City to provide equal employment opportunity to all persons. All employment policies and practices shall be non - discriminatory in compliance with federal laws, state statutes, and local ordinances. No individual shall, on the basis of race, color, creed, religious or political affiliation or belief, national origin, sex, sexual orientation, age, marital status, disability, or status with regard to public assistance, be excluded from employment or be subjected to discrimination regarding any and all terms and conditions of City employment. 1 • • • • • 1.5 Confidentiality /Data Practices Advisory During the course of City employment, an employee will likely be asked to provide personal information classified by state law as either private or confidential. Private data is information that generally cannot be given to the public but can be given to the subject of the data. Confidential data is information that generally cannot be given to either the public or to the subject of the data. The requested information will be used to evaluate the employee's job performance, eligibility, and abilities. If the employee provides false, incomplete or misleading information, the employee may be subject to discipline. A. Types of Data • Public Data. Information about a person that must be made available to the public or to the subject of the data. • Private Data. Information that can be given to the subject of the data upon request, but is not available to the public without permission or as specifically authorized by law. • Confidential Data. Tnfoimation that generally cannot be given to the public or the subject of the data. Personnel Data. Data on individuals collected because the individual is or was an employee, an applicant for employment, performs service on a voluntary basis, acts as an independent contractor with the City, or is a member of an advisory board, committee, or commission. Summary Data. Data about a person used to develop statistics or reports are considered public information, but the data does not identify any individual. B. Public Personnel Data With the exception of undercover law enforcement personnel, the following personnel data are public: name, gross salary, salary range, gross pension, contract fee, benefits, expense reimbursements, job title, job description, education and training background, previous work experience, dates of employment, status of complaints or charges against employees, outcome of complaints or disciplinary actions, work location, work telephone number, badge number, city and county of residence. C. Access to Personnel Files Other persons or entities that are authorized by law to receive infouuation in the employee's personnel file are: • Employees, agents and officials of the city who have a need to know about the information in the course of their duties or responsibilities; • The person who is the subject of private data; • People who have permission from the subject of the data; • The Internal Revenue Service and Minnesota Department of Revenue; • The Immigration and Naturalization Service; 2 P31 P32 • The Minnesota Department of Economic Security in any claim for reemployment benefits; • The Worker's Compensation Court in any claim for worker's compensation benefits; • Various insurance companies in any claim for insurance benefits; • Individuals who have obtained a court order for the information; • Participant in any litigation, mediation, veteran's preference hearing, grievance arbitration, or other administrative proceeding that involves the employee; • Labor organizations and the Bureau of Mediation Services. D. Private Data The following personnel data are considered private data on individuals and are not accessible to the public: social security number, age, sex, marital and family status, employee's home address and telephone number, criminal record, race and ethic data, insurance status, references, college transcripts (except for name of institution, degrees, and years attended), reference checks, medical records, psychological examinations, workers' compensation reports, physical limitations related to job, sick leave forms, medical reports, data collected from disciplinary proceedings, opinion questionnaires, names of applicants for employment until finalists are announced, employee assistance programs and exit interview responses. Private data is accessible to the subject employee, the employee's authorized representative, the immediate supervisor and department director, and other City staff persons or officials who have a legitimate need to know such data. No employee may disclose the home address, telephone number, or personal information about another employee to any third party without prior consent of the affected employee, as per section on "Informed Consent." Employment selection instruments and answer keys to such instruments are protected non - public data, except pursuant to a valid court order. E. Access to Data • Public Data. Access shall be provided to any person, without regard to the nature of the person's interest. Access must be provided by the Administration or other persons authorized by the City Administrator. Access must be provided within a reasonable time period. Interpretation shall be provided if requested. A fee may be charged for copying and mailing and for the time it takes to collect the information. • Private Data. Access to private data is available only to: (1) the subject of the data; (2) City employees who need access to the data; (3) agencies authorized by state or federal law who need access to specific data; and (4) agencies or individuals with written consent from the subject of the data. Personnel files will be maintained by the Administration Department. The City Administrator shall assure that access is provided only to the parties listed above. The identity and authority of an individual who seeks to gain access to private data must be confirmed. The time that access is available is limited to city hall business hours. No fees shall be charged in cases where the data subject only wishes to view private data. Fees may be charged for providing copies. 3 111 1.6 Minnesota Personnel Record Review and Access Act • • The Minnesota Personnel Record Review and Access Act provide the following rights and remedies to employees regarding their personnel files: • Employees have a right to review their file, upon a written request made in good faith, once every six months while employed. • After termination, employees may review their records once annually for as long as the City maintains the record. • The City must comply with an employee's written request to review his or his file within seven work days from date of request. • After the review, the employee may request, in writing, a copy of the record at no charge to the employee. • If the employee disputes information contained in the record and the City does not agree to remove or revise the disputed information, the employee may submit a written statement of up to five pages explaining the employee's position. This statement will be included in the personnel file for as long as the City maintains it. • If the City violates the statute, employees may bring a civil action to compel compliance and for actual damages and costs. • The City may not retaliate against employees for asserting their rights or remedies under the statute. If the City unlawfully retaliates against an employee, the employee may bring a civil action to compel compliance and for actual damages, back pay, reinstatement, equitable relief, and attorney fees. 4 P33 P34 SECTION 2: DEFINITIONS 2.1 Definitions The following words and phrases will have the meaning as defined herein: 1. Absent without Leave. Any absence of an employee from duty, including any absence for a single day or part of a day, which is not authorized by a specific leave of absence or time off under the provisions of this policy. 2. Administrative Leave. Paid leave granted to an employee, who is the subject of an investigation, when the City Administrator determines it is in the best interest of City employees and the public that the employee be removed from duty until the investigation is complete. 3. Anniversary Date. The month and day of initial hiring or promotion of a regular full -time or regular part-time employee. 4. Child. A biological, adopted, or foster child, a stepchild, a legal ward, or a child of a person standing in loco parentis. Child, for the purposes of Family Medical Leave, will be defined in accordance with 29 CFR 825.113. 5. Compensation Plan. A schedule of pay ranges for all job classifications within the City. 6. Computers. Includes desktops, laptops, tablets, notebooks, mobile devices, smart phones, servers, and other network equipment. 7. Domestic Partnerships. Employees may register a domestic partner with the City Administrator. Domestic partnerships apply only to sick leave and funeral leave. 8. Exempt Employee. Executive, administrative, and professional employees who are exempt from overtime pay as defined by the federal Fair Labor Standards Act. 9. Immediate Family Member. An immediate family member shall be defined as spouse, parent, spouse's parent, child, brother, sister, brother -in -law, sister -in -law, niece, nephew, grandparent of the employee or employee's spouse, and grandchild. 10. Job Classification. Refers to the act of assigning a position to its appropriate pay range based on the duties performed and the responsibilities assumed. 11. Non - Exempt Employee. An employee who is not exempt from the provisions of the Fair Labor Standards Act and is subject to overtime pay. 12. Pay Grade. A grouping of positions that are considered substantially equal for pay purposes. 13. Pay Range. A schedule of minimum and maximum pay rates, which are established for each job classification. 14. Job Reclassification. A change in a class of an individual position on the basis of revisions to job duties and responsibilities, which places the position in a higher or lower pay grade. 5 • • • • SECTION 3: APPOINTMENTS AND EMPLOYMENT 3.1 Physical & Psychological Examination An applicant or employee appointed to a position must be sufficiently healthy to satisfactorily perform the essential duties and responsibilities of the position. After a conditional offer of employment has been made, applicants may be required to undergo and pass an appropriate health screening, and may be required to undergo a physical and /or psychological examination prior to appointment to a position. The City will pay the total cost of pre - employment examinations. A medical evaluation report shall be prepared and filed in the employee's medical file. If a medical evaluation indicates that an applicant has a mental or physical condition which causes such applicant to be considered a serious health risk, or whenever the applicant is reported to have a condition that may substantially affect the applicant's ability to perform the essential functions of the position, the City may declare the applicant ineligible for consideration for appointment to the position. When an employee is receiving medical treatment, which includes a prescription drug that may affect the employee's ability to perform his or her job duties, the employee has a duty to notify his/her department director of such treatment. • 3.2 Background Investigations • Upon the request of the City Administrator or designee, the Police Department shall provide certain criminal history data contained in the Minnesota Criminal Justice Information System. This applies only to finalists for City employment. The City Administrator or designee must obtain the consent of the finalists before requesting the data, but an applicant's failure to provide consent may disqualify the applicant from an offer of employment. 3.3 Probationary Period Newly hired full -time and part-time employees will serve a six -month probationary period. During the probationary period, an employee may be transferred or dismissed at the City's sole discretion for any reason. A probationary employee cannot appeal this decision. Prior to the expiration of the probationary period, the employee's performance will be evaluated in writing by the employee's supervisor and given to the City Administrator with a recommendation that the employee be retained or not as a regular employee. The City Administrator may extend the probationary period for specific individuals for an additional six -month period upon the recommendation of the employee's department director. Vacation benefits shall accrue, but are not available to the employee until after successful completion of the probationary period without the permission of the City Administrator. 6 P35 P36 3.4 Work Schedule The regular work week normally consists of 40 hours. The regular 40 -hour work week includes two paid 15- minute breaks each work day. All employees will be provided with one unpaid meal period of 30 minutes each work day. Payment for time worked in excess of the regular work week shall be compensated at 11/4 times the regular rate of pay. This section does not apply to exempt employees. A department director, with approval from the City Administrator, may establish a modified work schedule for an employee if it benefits the City. 3.5 Performance Evaluations Employees generally receive an annual performance appraisal. The purpose of the performance review is to evaluate an employee's performance, to communicate supervisor's expectations, and to establish future goals and objectives. The supervisor will conduct an interview following the written evaluation. The written evaluation shall be filed in each employee's personnel file. An overall evaluation of "satisfactory performance" will be required prior to the granting of any step adjustment. 3.6 Promotions A department director and the City Administrator shall be responsible for determining whether an employee possesses the necessary qualifications for promotion to a particular position. Appropriate tests may be given to aid in this determination. Length of full -time employment with the City will be considered in promotions only when all other qualifications are equal. It shall be the policy of the City to fill vacancies by promoting current employees from within where practicable. This policy shall not be construed to preclude the City from external recruitment and selection of applicants from outside the municipal service, nor as a guarantee of promotion from within to any position for which job openings occur. All promotions shall be subject to a three -month probationary period. If the employee who has been promoted is found unsuited for the position to which promoted, such employee may be reinstated to his/her former position and rate of pay, or to another position in the same class if a vacancy exists. 3.7 Veteran's Preference The City's veteran's preference program shall be in accordance with state and federal law. 7 • • • • • 3.8 Americans with Disabilities Act (ADA) The Americans with Disabilities Act (ADA) protects qualified individuals with a disability against employment discrimination. The term "disability" includes physical or mental impairments that substantially limit one or more major life activities, or where an individual has a record of impairment or is regarded as having impairment. 3.9 Disciplinary Steps City employees shall be subject to disciplinary action for failing to fulfill their duties and responsibilities, including observance of work rules and conditions of employment. It is the policy of the City to administer disciplinary penalties without discrimination. Every disciplinary action shall be for "just cause" and the employee may use the grievance procedures as outlined in Section 3.10 of this Personnel Policy with respect to any disciplinary action that he /she believes is unjust or disproportionate to the offense committed. The City Administrator or a department director may direct an investigation into any alleged violation before any disciplinary action is taken. Any employee subject to the provisions of this policy or any other departmental policy may be terminated from City employment only for cause. The particular dismissal, demotion, or suspension shall be based on the individual facts and circumstances involved. Steps Except for severe infractions, disciplinary action will generally be progressive and follow the steps listed below: 1. Coaching. Any violation of rules and regulations will be explained to the employee by his/her supervisor, indicating the corrective action necessary to prevent recurring violations. 2. Written Reprimand. A written reprimand states that the employee is being disciplined for misconduct, describes the misconduct and past actions taken by the department director or City Administrator to correct the problem, and outlines future disciplinary action if the misconduct continues. The employee shall be given a copy of the reprimand and sign the original acknowledging that he /she has received the reprimand. The employee's signature does not mean that he /she agrees with the reprimand. 3. Suspension without Pay. Prior to the suspension, or as soon thereafter as possible, the employee shall be notified in writing of the reason for the suspension and its duration. Upon the employee's return to work, the employee shall be given a written statement outlining further disciplinary actions should the misconduct continue. An employee may be suspended pending investigation of an allegation. A copy of each written statement shall be placed in the employee's personnel file. If an allegation is proved to be false, the statement will be removed and the employee will receive back pay. 4. Demotion. The City Council may, upon recommendation of the department director and City Administrator, demote an employee for just cause. The employee will be provided with a written statement of the reason for the demotion. The written statement will be 8 P37 P38 furnished to the employee prior to the effective date of the demotion. An employee who is demoted shall not be required to serve a probationary period in the position in which the employee is being demoted. A regular employee who is demoted for disciplinary reasons may appeal the demotion through Section 3.10 of this policy. 5. Paid Administrative Leave. Paid administrative leave is granted in conjunction with an ongoing investigation or any time the City Administrator feels it is in the best interest of employees or members of the public to remove an employee from active duty. 6. Discharge. The City Administrator may discharge a non - probationary employee for just cause only, subject to City Council approval. A discharged employee will be notified at termination that he /she has a right to make a written request for the city's reasons for dismissal. If requested, the City will provide reasons, in writing, within five work days. This notice will provide, along with reasons in writing, rights contained in the veterans' preference law if applicable, a statement indicating that the employee may respond to the charges both orally and in writing, and that he /she may appear personally before the City Council. 3.10 Grievance Procedures It is the policy of the City to prevent the occurrence of grievances insofar as practical and to provide an orderly, efficient, and timely procedure for dealing with those which do occur. The procedure established herein will be followed by an employee in presenting a grievance to the City. Failure to follow the steps within the stated time limits may result in a denial of the grievance on procedural grounds. Steps 1. An employee claiming a violation concerning the interpretation or application of a City policy shall, within 21 calendar days after such alleged violation has occurred, present the grievance in writing to the employee's immediate supervisor. Such written grievance shall set forth the nature of the grievance, the facts on which it is based, the provisions of the policy allegedly violated, and identify the remedy requested. A grievance not resolved in Step 1 shall be appealed to Step 2 within 15 calendar days after the supervisor's response in Step 1. Any grievance not appealed in writing to Step 2 by the employee within 15 calendar days shall be considered waived. 2. A grievance unresolved in Step 1 and appealed to Step 2 shall be submitted in writing to the City Administrator within 15 days. The City Administrator will give an answer to Step 2 within 15 calendar days after receipt. The written response of the City Administrator shall constitute the City's final response to the employee's grievance. 3. If the grievance is not resolved in Step 2, and if the grievance relates to the interpretation of the City's Personnel Policy, the employee may appeal the grievance in writing to the City Council within 15 calendar days of receipt of the City Administrator's response in Step 2. Any grievance not appealed in writing to Step 3 within 15 calendar days shall be considered resolved. If appealed to the City Council, the Council may establish a date for 9 • • • • • • hearing the employee's grievance. Following determination by the City Council, a written response shall be provided to the employee within 15 calendar days of receipt of the written grievance. The written response of the City Council shall constitute the city's final response to the employee's grievance. 4. Employees considered essential employees as defined by FLSA guidelines, not already covered by a collective bargaining agreement are entitled to appeal a grievance, not resolved in Step 3, to the Minnesota Bureau of Mediation Service. The employee has 15 days following receipt of the city's Step 3 answer to submit for mediation. The city will discuss and respond in writing to the Step 3 grievance at the mediation session scheduled by the Bureau of Mediation Services. If the grievance is submitted to mediation and is not resolved, it may be appealed to arbitration within 15 calendar days following the city's Step 3 answer. 5. A grievance unresolved in Step 4 and appealed to Step 5 by the employee shall be submitted to arbitration subject to the provisions of the Public Employment Labor Relations Act of 1971, as amended. The employee shall notify the city of its intention to arbitrate the grievance within 15 calendar days following the city's final Step 4 answer. If the parties are unable to agree on the selection of an arbitrator, the employee shall request a list of arbitrators to be submitted to the parties by the Bureau of Mediation Services. The selection of an arbitrator shall be made in accordance with the "Rules Governing the Arbitration of Grievances" as established by the Bureau of Mediation Services. The arbitrator shall have no right to amend, modify, nullify, ignore, add to, or subtract from the terms and conditions of this policy. The arbitrator shall consider and decide only the specific issue(s) submitted in writing by the city and the employee, and shall have no authority to make decisions on any other issue not so submitted. The fees and expenses for the arbitrator's services and proceedings shall be borne equally by the city and the employee. 10 P39 P40 SECTION 4: COMPENSATION 4.1 Position Classifications The City shall establish and maintain a position classification plan for all positions covered in this policy. Each position with the city shall be assigned to a class on the basis of duties and responsibilities, authority, and complexity of position. The class may contain more than one position. A new class may be added when a new position is created and no class exists for the new position. 4.2 Compensation Plan The pay of City employees will be in accordance with the salary ranges approved by the City Council. The Council may make adjustments to any or all of the salary ranges in the City's compensation plan on an annual basis or for other pertinent reasons such as a job reclassification. Positions in the City's job classification system are assigned a pay range or grade based on the value of the tasks performed. The annual compensation plan is applicable to full -time and part - time employees and does not include elected officials, appointed officials, temporary employees, and those covered by collective bargaining agreements. A new employee may start at any step the salary range based on his/her qualifications and experience at the time of hire. Upon successful completion of the new employee's probationary period, the employee will advance to the next step in their pay range. Employees will be eligible for subsequent step increases annually on their anniversary date. 11 • SECTION 5: EMPLOYEE BENEFITS • • 5.1 Health Care Benefits The City provides a combination of health care benefits, such as medical, dental, long -term disability, and life insurance. Regular full -time and part-time employees are eligible for the health care benefit package commencing on the first day of employment. Employees are responsible for participating in the cost of health care benefits pursuant to the City's annual review of participation levels. Employees who provide proof of insurance through an immediate family member, or who are eligible for Medicare, may waive insurance coverage and receive a monthly cash payment, which is established by the City Council annually. 5.2 Pre -Tax Benefits On the first day of the month following six months of employment, employees are eligible to participate in the City's Health Care and Dependent Day Care Expense Reimbursement Plan. Under this program, employees may authorize the City to deduct, before taxes, expenses associated with the following: 1. Premium Conversion. This plan allows you to automatically pay your portion of the premiums for the City's health and dental insurance program with pre -tax dollars. 2. Health Care Flex Account. The employee may pay eligible "uncovered" medical and dental expenses with pre -tax dollars (e.g. deductibles and eyewear). 3. Dependent Day Care Flex Account. The employee may pay day care expenses with pre- tax dollars. Employees will be reimbursed for expenses incurred during the plan year, which runs from January 1 to December 31. Employees will be advised that money not spent during the plan year will be forfeited according to federal law. 5.3 Health Insurance Continuation (COBRA) The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under the City's health plan when a "qualifying event" would normally result in the loss of eligibility. Qualifying events include resignation, termination of employment, death of an employee, a reduction in an employee's hours, a leave of absence, an employee's divorce or legal separation, and a dependent child no longer meeting eligibility requirements. Under COBRA, the employee or beneficiary pays the full cost of coverage at the City's group rates plus any additional administrative fee, if applicable. 12 P42 The Finance Department will provide each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for COBRA coverage plan. The notice contains important information about the employee's rights and obligations. 5.4 Deferred Compensation The City will provide regular full -time and part-time employees the opportunity to participate in pre -tax retirement savings program through payroll deductions. This voluntary retirement saving plan is designed to allow tax savings for employees. Full -time employees will be permitted to receive a cash payment for 50 percent of their unused annual sick leave accrual exceeding 720 hours at the conclusion of each calendar year. The balance of the unused sick leave will be added to the employee's sick leave bank up to the maximum accrual of 960 hours. The cash payment will be paid at the conclusion of each calendar year into the employee's designated deferred compensation plan as authorized by the City. 5.5 Long -Term Disability Long -term disability insurance is provided to regular full -time and part-time employees. Long- term disability benefits are available based upon the terms and conditions contained in the contract with the long -term disability insurer. Terms and benefits under the program are subject to change from time to time. 5.6 Safety Committee The City of Lino Lakes recognizes its responsibility to provide the safest conditions for its employees by ensuring all reasonable safeguards are established in the workplace. Employees are responsible for observing all safety rules and for using all available safety equipment. Employees are also responsible for reporting any unsafe condition to their supervisor. The efficiency of any municipal operation can be measured directly by its ability to control unnecessary loss. To that end, the Lino Lakes Safety Committee was established. The Safety Committee is made up of employees who meet and examine the City's policies and procedures and review accident and injury reports. The Safety Committee also reviews and updates the City of Lino Lakes Safety Policies and Rules. 5.7 Employee Wellness Employees may convert accrued sick leave to pay for their monthly health club membership dues up to a maximum of $60 per month, provided that the employee maintains a sick leave balance of 80 hours. 13 • • • • • • Reimbursements are made on a monthly basis upon receipt of a completed form and evidence of payment to the health club. Forms are available in the Finance Department. The reimbursement is subject to federal, state and FICA tax withholdings. 5.8 Employee Assistance Program (EAP) Understanding that an employee's personal life may affect job performance, the City has contracted with an insurance provider to offer an Employee Assistance Program. This program is available to full and part-time employees and their immediate family members. Individuals can call a toll -free number 24 hours a day any day of the year and speak with a professional counselor who will assess the personal or family issue and provide ideas for resolution. 5.9 Computer Purchase Plan The Computer Purchase Plan is designed to assist employees and elected officials with the purchase and financing of laptops, tablets, desktop computers, and peripherals (e.g. routers, keypads, printers) so that City staff and officials can utilize the latest computing technology away from work and outside of normal working hours. Participation Participants must agree to comply with the requirements and provisions of the plan as set forth herein: • All regular, non - probationary employees and elected officials are eligible to participate in this plan. • This program is limited to 15 participants per year. • The City will finance up to $1,000 per participant, interest free. Repayment will be made through a payroll deduction. The term of the loan shall not exceed 24 months. Participants may not take out a second loan if there is still a balance on another loan. Upon selection of a computer package, the order must be approved by the Finance Director. If the order exceeds $1,000, the participant must submit payment for the balance before the order is made. • When the order is finalized with the purchase amount, the participant will be required to read and sign the Participation and Loan Agreement before the order is placed by the City. • The plan's continued availability will be dependent upon budgetary considerations. • At the time of separation from employment with the City or termination of office, any unpaid balance must be paid in full. If the participant defaults on repayment, the equipment must be returned to the City and the amount paid to date will not be refunded.. 14 P43 P44 5.10 Post Employment Health Care Saving Account The City has established a Post Employment Health Care Savings Account (HCSA) for eligible non -union employees. The purpose of this program is to allow employees to save money on a tax - free basis to pay for health- related expenses after separation from service with the City. The terms for participation are as follows: 1. Participation. All non -union employees are required to participate in the HCSA program. 2. Unused Compensation. Any unused vacation, sick leave, or personnel time off (PTO) severance pay will be contributed into the HCSA upon termination. 3. Salary Contributions. Eligible non -union employees having 25 years of PERA membership shall contribute three percent of their salary into their HCSA. Those with less than 25 years of PERA membership shall contribute two percent of their salary into the HCSA. Contributions shall be calculated and submitted each pay period. All other terms and conditions of this plan are outlined in the plan documents. 5.11 College Savings Plan Regular full -time and part-time employees may elect to contribute to the 529 Minnesota College Savings Plan through payroll deductions. The plan has special tax advantages that are designed to help college savings grow. All investment earnings and gains are income tax -free if used to pay for qualified higher education expenses. The Finance Department has more information on the 529 Minnesota College Savings Plan. 15 • • • SECTION 6: ATTENDANCE AND LEAVES 6.1 Holidays Regular full -time and part-time employees are entitled to the holidays described herein. Part- time employees received a prorata amount based on the number of hours worked each week. Temporary employees are not entitled to holiday pay. New Years' Day Martin Luther King, Jr. Day President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Christmas Eve Day Christmas Day New Year's Eve Day When a holiday falls on a Sunday, the following Monday is considered the holiday. When a holiday falls on a Saturday, the preceding, Friday is considered a holiday. In order to be eligible for paid holidays, employees must work on the day before and the day after such holiday, unless on paid leave. 6.2 Vacation Leave Vacation leave with pay is available to eligible employees to provide opportunities for rest, relaxation, and personal pursuits. No employee shall be permitted to waive such leave for the purpose of receiving double pay. Probationary and regular full -time employees earn paid vacation time according to the following schedule. Probationary employees may not take vacation during their probationary period without prior approval of the department director. Years of Continuous Service Start through 4th Year Beginning 5th Year Beginning 11th Year Beginning 12th Year Beginning 13th Year Beginning 14th Year Beginning 15th Year Beginning 16th Year Beginning 17th Year Beginning 18th Year Beginning 19th Year Beginning 20th Year Per Year 80 hours 120 hours 128 hours 136 hours 144 hours 152 hours 160 hours 168 hours 176 hours 184 hours 192 hours 200 hours 16 Per Pay Period 3.08 hours 4.62 hours 4.92 hours 5.23 hours 5.54 hours 5.85 hours 6.15 hours 6.46 hours 6.77 hours 7.08 hours 7.38 hours 7.69 hours P45 P46 Employees may not carry over more than 240 hours of accrued vacation into the next calendar year without approval from the City Administrator. Employees may elect to use accrued vacation at the end of their employment with the City. 6.3 Sick Leave Sick leave is accrued by all full -time employees at the rate of 3.69 hours per pay period. The maximum accumulation is 960 hours. In order to be eligible for sick leave with pay, an employee: • Shall report promptly to their department supervisor the reason for the absence. • Shall present a doctor's slip after three consecutive days absent from work. Regular part-time employees accrue sick leave on a pro rata basis. [See also Deferred Compensation Section 5.4 and Severance Section 9.4 for applicability to sick leave.] 6.4 Leave Donation Program The purpose of this program is to provide an opportunity for employees to voluntarily donate a portion of their accrued vacation, sick leave, or compensatory time to assist an employee who has exhausted paid leave due to a serious illness, injury, or impairment. A. Program Eligibility Only regular, non - probationary employees may participate in this program as a leave donor or recipient. An employee may request donated leave to care for an "immediate family" member when he or she is within one pay period of depleting all paid leave and is expected to be absent from work for more than five work days after exhausting all paid leave. To be eligible to donate leave time to another employee, the donating employee shall maintain a minimum leave balance as set forth in this policy. B. Leave Recipient Conditions The terms and conditions governing the Leave Donation Program are as follows: 1. Recipients must provide documentation to Administration from a treating physician regarding the illness or injury and the expected duration of the condition. 2. No employee will be allowed to receive more than 400 hours of donated leave for any serious health condition. This cap is prorated for part-time employees based on full -time equivalency status. 3. An employee is eligible to receive donated leave one time in a 12 -month period. 4. No employee who has historically maintained a minimal sick leave balance, or who has previously been warned or disciplined for abusing sick leave, will be eligible to receive donations. 17 • • • P47 5. Nothing in this policy will be construed to limit or extend the maximum allowable absence under the Family Medical Leave Act (FMLA). C. Leave Donor Conditions 1. Employees may donate a minimum of eight hours or a maximum of 40 hours paid leave provided they maintain a minimum balance of 80 hours of sick leave and 40 hours of vacation leave. 2. Employees who donate leave shall adhere to the confidentiality requirement set forth within the Leave Donation Form. Donations will remain anonymous to the recipient and other employees. 3. No provisions of this policy or its administration shall be subject to a grievance under a collective bargaining agreement. D. Administrative Procedures 1. Eligible employees wishing to participate in this program should contact Administration and request a "Donated Leave Request Form." If the employee is physically unable to apply, a member of the applicant's family may apply on his or her behalf. Appropriate documentation concerning the nature, severity, and anticipated duration of the medical condition is required with the Donated Leave Request Form. 3. If the employee is found to be eligible for donated leave, Administration will notify employees only giving the person's name and estimated number of days needed. The notification shall not include confidential medical information. 4. Employees wishing to donate accrued leave shall submit a Leave Donation Authorization Form to Administration. 5. Each hour of donor leave will be credited as an hour of leave for the recipient, regardless of any differences in pay levels. 6. Finance will subtract surrendered leave from the donor's accrued balance and credit the donated hours to the recipient's sick leave balance. 7. Donated leave hours will be processed in the order of the date on the Leave Donation Program Authorization Form in eight hour increments, starting with the recipient's department. Unused donated leave in will be returned to the donor. If there are multiple donors, the excess leave will be returned on a prorated basis according to the amounts donated. 8. Recipients will continue to accrue sick leave and vacation during the period of donated leave. The recipient's accrued paid leave during the absence shall be utilized prior to the donated leave. E. Program Exceptions Exceptions to these requirements may be approved by the City Administrator in rare circumstances. The City Administrator shall have the right to deny or limit the donation of leave or use of donated leave if it is determined to be in the best interests of the City of Lino Lakes. 2. 18 P48 F. Program Parameters The City reserves the right to modify or discontinue this policy at any time, with or without notice. No employee will be guaranteed access to donated leave and any employee may be denied based on the administrative discretion of the City of Lino Lakes. G. Confidentiality All information provided in leave donation request applications, leave donation forms, verification of medical conditions, and additional related information is confidential. 6.5 Workers' Compensation The City provides a comprehensive workers' compensation insurance program in accordance with Minnesota law. The City's policy regarding workers' compensation is as follows: 1. Workers' compensation benefits take effect after a waiting period of three calendar days following an on the job injury. Any time lost within the first three calendar days due to an injury will be paid through an employee's sick leave accrual. If no sick leave is available, any lost time will be without pay. 2. If time away from work due to the job- related injury extends beyond three calendar days, workers compensation pay will begin for those scheduled work days lost beginning on day four. If time away from work extends ten calendar days, workers' compensation will pay the initial three -day waiting period. The City will reimburse the employee for sick leave used during the initial waiting period. 3. All doctor appointments and long -term therapy appointments due to a work - related injury will be treated as leave without pay, with workers' compensation paid directly to the employee. 4. The City will pay the difference between an employee's gross salary and any workers' compensation reimbursement. This difference will be paid for consecutive lost time for any time over the three -day waiting period. The City will not pay the difference for doctor or therapy appointments. 5. An employee who sustains a work - related injury or illness must inform their supervisor immediately. A First Report of Injury form must be filed with the City. 6. Neither the City nor its insurance carrier will be liable for the payment of workers' compensation benefits for injuries that occur during an employee's voluntary participation in off -duty recreational, social, or athletic activities sponsored by the City. 6.6 Sick Child / School Child Leave In accordance with state law, the City provides the following leave for eligible employees. An eligible employee is any regular full -time or part-time employee who has been employed with the City for 12 months and has worked a minimum of 20 hours per week. For this section, "child" is 19 P49 defined as being less than 18 years of age, or under 20 years of age and attending secondary school. 1. Sick Child. City employees may use sick leave for absences due to the illness of a child in the same way that employees are able to use sick leave for their own illness. 2. School Child. City employees are granted up to 16 hours per school year to attend their child's school conferences or classroom activities when they cannot be scheduled during non -work hours. Employees may take unpaid time or use paid leave for this purpose. 6.7 Funeral Leave Paid funeral leave of up to three days may be granted for the death of an immediate family member, subject to approval of the department director or City Administrator. 6.8 Militant' Leave Military leaves of absence and re- employment rights of employees returning from active service with the armed forces shall be subject to applicable federal and state laws. Upon return from military leave of absence, a regular employee shall be reinstated to the employee's former position or to a position of like status and pay, provided that the employee is competent to perform all duties of the position to which assigned. If the position held by the employee no longer exists, the employee shall be reinstated to a position of like status and pay, provided it is practicable and the employee is competent to perform all duties of the position. 6.9 Time off to Vote Employees who are eligible to vote in an election have the right to be absent from work for the time necessary to appear at the employee's polling place, cast a ballot, and return to work on the day of that election without penalty or a wage deduction. 6.10 Jury Duty Employees called to serve as a juror, or subpoenaed as a court witness, shall receive their regular pay as if they were working. Any compensation the employee may receive as a result of jury duty or a witness fee, excluding mileage reimbursement if provided by the court, shall be turned over to the City. Employees are expected to report to work when they are released from court during regular office hours when practicable, and to make every effort to complete the work assigned to them during the time they are serving as jurors or witnesses. P50 6.11 Serving as an Election Judge An employee who has been selected to be an election judge may be absent from work without penalty while serving as an election judge. In addition to a 20 -day written notice, the employee will also submit a certification from the appointing authority stating the hourly compensation to be paid the employee for service as an election judge and the hours during which the employee will serve. The City will pay the difference between the employee's regular pay and the pay received for serving as an election judge. The employee may retain mileage expenses, if applicable. The city may restrict the number of employees who are absent from work to no more than 20 percent of the total work force at any single work site. Employees should check the "other allowable leave" portion of the Authorization for Time Off card, and write in "election judge." 6.12 Family Medical Leave Act (FMLA) Pursuant to the Family Medical Leave Act of 1993, the City provides up to 12 weeks of unpaid leave to eligible employees for reasons related to medical and family care. A. Eligible Employees Employees are eligible for family or medical leave if an employee has worked for the City for at least 12 months and worked at least 1,250 hours during the 12 months preceding the start of the leave. National Guard reservists returning from active duty will have their active time counted toward FMLA - eligibility. B. Qualifying Events An eligible employee will be granted up to 12 weeks leave during any 12 -month period for any of the following qualifying events: 1. Birth of a child or placement of a child with the employee for adoption or foster care. This entitlement expires 12 months after the birth or placement. 2. To care for a spouse, child, stepchild, or parent who has a serious health condition. This includes psychological, physical care, and sharing care duties. A child is defined as a person less than 18 years of age (or a person incapable of self -care because of a physical or mental disability) who is biological, adopted, a foster child or step child, ward of the employee, or a person with whom the employee is charged with parental rights. An eligible parent includes a biological parent or a person who was charged with parental rights, duties, and responsibilities over the employee when the employee was under the legal age, but does not include in -laws. 3. Because of a serious health condition making the employee unable to perform the essential functions of their position. "Serious health condition" is defined in Federal law 29 C.F.R. 825.116, but generally includes incapacity requiring absence from work or more than five days that also involves continuing treatment by a health care provider (also includes prenatal care). 21 • • • • • • C. Notice Requirements Thirty (30) days written notice is required if the leave is foreseeable. If 30 days notice is not possible, as much notice as is practical must be given. Planned medical treatments should be scheduled so that they will not unduly disrupt the City's operations. D. Insurance Benefits Health insurance coverage will be continued at the same level and under the same terms as if the employee continued working. Arrangements for payment of the employee's portion of premiums must be made by the employee through the Finance Department. In an employee fails to return from FMLA leave for reasons other than the continuation of the serious health condition of the employee or covered family member, the City may seek reimbursement for the premiums paid for group insurance benefits during the period of unpaid leave. E. Intermittent/Reduced Schedule Leave Leave requested because of a serious health condition of either a family member or the employee may be taken inteiruittently or on a reduced schedule if such leave is deemed to be medically necessary. Intermittent leave or a reduced schedule is not permitted for the birth, placement, or adoption of a child. F. Use of Accrued Sick Leave, Vacation, and PTO During the family and medical leave, employees are required to use accrued vacation, personnel time off (PTO), or sick leave prior to taking unpaid leave, except where the leave also qualifies for parental leave. Employees are not required to substitute compensatory time for unpaid leave. When sick, vacation, or PTO leave have been exhausted, any remaining time will be unpaid. Unpaid hours will not count towards seniority. C. Medical Certification Certification by a physician is required for FMLA leave due to a serious health condition or that of a child, step - child, parent, or spouse. The medical certification foil"' must include the following information: (1) date that the qualifying event started; (2) duration of the qualifying event; (3) appropriate medical facts; and (4) purpose the leave is needed. Administration may request additional medical information that provides an updated status of the employee's or family member's serious health condition and date of return. A second opinion from another health care provider may be requested by the City. If requested, the City will pay for the cost of a second opinion and will select a health care provider not regularly associated with the City. A "Certificate of Physician or Practitioner" form can be obtained from the payroll office located in the Finance Department. H. Health Care Providers "Health care providers" are defined a doctors of medicine or osteopathy, podiatrists, dentists, clinical psychologists, optometrists, chiropractors, nurse practitioners, nurse - midwives, clinical social workers (within certain limitations), Christian Science practitioners, a health care provider recognized by the City's group health plan, and a health care provider as defined above who 22 P51 P52 practices and is licensed in a country other than the United States. [Refer to 29 C.F.R. 825.118 for a complete list.] I. Recertification Recertification will be required if the employee requests an extension of the original length approved by the City or if the employee's circumstances change. Recertification may also be required if there is a question as to the validity of the certification if the employee is unable to return to work due to the serious health condition. J. Fitness for Duty Certification The City requires a medical certificate attesting to the employee's fitness for duty prior to the employee's return to work. The fitness for duty report must be based on the particular health condition(s) for which the leave was approved and must address whether the employee can perform the essential functions of the job. The City Administrator may consult with a physician or other expert to determine reasonable accommodations for any employee who is a "qualified disabled" employee under the Americans with Disabilities Act (ADA). The City will deny reinstatement until a fitness for duty certificate is provided. K. Record Retention Records on FMLA leave will be kept along with normal payroll records except that any medical record will be maintained separately in the employee's medical record file. L. Affect on Pension FMLA leave counts as continued service for purposes of retirement or pension plans. M. Reinstatement Employees returning from FMLA leave will return to their same position or an equivalent position upon return from FMLA leave (employees returning from FMLA leave due to a child with a serious health condition will be returned to the same position). 6.13 Parental Leave An employee who works 20 or more hours per week and has been employed more than 12 months is entitled to take an unpaid leave of absence in connection with the birth or adoption of a child. The leave may not exceed six weeks, and must begin not more than six weeks after the birth or adoption of the child. The employee is entitled to return to work in the same position and at the same rate of pay the employee was receiving prior to commencement of the leave. Group insurance coverage will remain in effect during the leave. If the employee has any FMLA leave eligibility remaining at the time this leave commences, this leave will also count towards FMLA leave. The two leaves will run concurrently until the 12 -week FMLA eligibility is exhausted. Employees may use accrued sick leave for either FMLA leave or Parental Leave. However, use of accrued sick leave is not required for the portion of leave counted as parental leave. 23 • • 6.14 Personal Leave of Absence The city provides leaves of absence without pay to regular full -time and part -time employees who wish to take time off from work to fulfill personal obligations unrelated to family or medically- related circumstances not covered by existing law. As soon as eligible employees become aware of the need for a personal leave of absence, they should request a leave in writing from their department director. Upon an affirmative recommendation from the department director, the City Administrator may approve a personal leave that does not exceed 90 days. Personal leave of up to one year, excluding military service or disability incurred while in the service of the City, requires City Council action. The minimum period for a personal leave shall be two weeks. Requests for personal leave will be evaluated based on a number of factors, including anticipated work load requirements, reasons for the requested leave, and staffing considerations during the proposed period of absence. Vacation and sick leave accruals, seniority, and paid holidays will be suspended during the leave and will resume upon return to active employment. All City contributions towards employee insurance coverage's will cease for non - medical leaves without pay. Insurance benefits may continue if fully subsidized by the employee through COBRA. If the employee chooses not to continue insurance coverage during a non- medical leave of absence, reinstatement into the group insurance program will be subject to any conditions imposed by the insurance provider. When personal leave ends, every reasonable effort will be made to return the employee to the same position, if it is available, or to a similar available position for which the employee is qualified. However, the City cannot guarantee reinstatement in all cases. If an employee fails to report to work promptly at the expiration of the approved leave period, the City will assume the employee has resigned. 6.15 Leave without Pay Regular full -time and part-time employees may request a leave without pay to attend to personal business without affecting their employment status. This leave needs to be approved in advance by the employee's department director. The maximum number of hours an employee may take leave without pay shall be 80 hours in one calendar year. 6.16 Bone Marrow Donation Leave A regular or probationary full -time or part-time employee who averages 20 or more hours per week who seeks to undergo a medical procedure to donate bone marrow will be granted up to 40 hours of paid leave. The city may regluire verification by a physician of the purpose and length of each leave requested. 24 P53 P54 6.17 Absence without Leave Any absence of an employee from duty for one day or part of a day that is not authorized by a specific leave of absence or time off under the provision of this policy shall be deemed an absence without leave. Any such absence shall be without pay and may be subject to disciplinary action. Any employee absent without leave for three consecutive days shall be deemed to have voluntarily resigned. 6.18 Severe Weather A severe weather condition is defined as a period when the City Administrator, upon consultation with the Public Services Director, deems travel to be hazardous. On days where severe weather conditions exist, the City's policy is to keep its offices and facilities open during regular work hours. In the event that a non - exempt employee is unable to report to work or wishes to leave early due to the existence of severe weather conditions, that employee may use accrued vacation, compensatory time, sick leave, or take time -off without pay for the hours not at work. Exempt employees are not required to use accrued paid leave for hours less than a half day. Essential or public works employees are exempt from this provision. 6.19 Personal Time Off (PTO) Leave Paid time -off benefits are currently separated into planned (vacation) and unplanned (sick leave) components. The personal time off (PTO) program combines these benefits into a single pool of paid time off benefits. A. Implementation Effective July 1, 2012, PTO leave will be implemented for benefit - earning employees who elect to receive such paid time off benefits. This policy replaces other paid leave provisions, which generally includes vacation and sick leave. PTO can be utilized for any purpose, subject only to necessary request and approval procedures consistent with City and departmental policies. B. Accrual Rates for Full -Time Employees Effective July 1, 2012, eligible full -time employees may elect to accrue personal time off based on the schedule below. A part-time employee who works a minimum of 20 hours per week accrues PTO on a prorated basis according to the number of hours budgeted for that position. Years of Service 0 -4 5 -10 11 12 13 14 15 Hours Earned Each Pay Period 4.615 6.153 6.461 6.769 7.076 7.384 7.692 Annual Accrual in Hours per Year 120 160 168 176 184 192 200 25 Days 15 20 21 22 23 24 25 • 16 17 8.000 208 26 8.307 216 27 18 8.615 224 28 19 8.923 232 29 20+ 9.230 240 30 PTO is accrued each pay period.. The PTO year for each new employee will begin on the date of employment with the City, or if there is a change of status, on the date the employee is eligible for PTO. Employees may not use personal time off until it has been credited to the employee's bank in the payroll system. Personal leave may be used in increments of 1/2 hour or more. The maximum amount of personal leave that can be carried into the next year is 600 hours. C. Use of Personal Time Off This PTO policy encourages advance planning of absences from work. To ensure necessary departmental coverage, non - emergency (planned) use of PTO should be requested in advance. Employees should give their supervisor advance notice equal to the amount of requested time off. Unplanned use of PTO may require documentation and requires notice within a timely manner of your scheduled work day. Established departmental rules and requirements concerning employee absences from work will be applied. In order to allow coordination of PTO with Family Medical Leave, employees seeking to use PTO may be required to provide pertinent information as to the purpose of the time off to allow a determination of whether the time will also qualify for Family and Medical Leave. If the PTO qualifies for Family and Medical Leave, the employee must take both leaves simultaneously. Probationary employees may use no more than 24 hours of PTO during the first six months of their probationary period without the approval of the City Administrator. This provision does not apply to employees serving a probationary period following a promotion, transfer, or demotion. D. General Provisions 1. Maximum Accrual. An employee may not carry over more than 600 hours of PTO from one year to the next unless a written request has been submitted to and approved by the City Administrator prior to December 15. Such waiver may be considered in the event of a special circumstance. 2. Denial of PTO Leave. A department director may deny a request for planned PTO leave when granting such leave would result in insufficient personnel to carry out necessary functions of the City. 3. Impact on Other Benefits. Employees using PTO will be considered working for the purpose of accumulating additional personal leave. The City will continue to make its contribution toward an employee's group insurance benefits. PTO will not continue to accrue during a suspension or while an employee is on an unpaid leave of absence. • 26 P55 P56 E. Conversion of Vacation Days and Sick Leave Accruals For employees who convert to the PTO plan, all accrued vacation leave (at hour for hour) and '/2 of accrued sick leave (480 hours maximum) will be converted to PTO leave up to a balance of 600 hours. Unconverted sick leave will be placed into an extended illness leave bank. F. Severance Payment Upon separation, employees will be compensated for any unused PTO balance provided the employee leaves the City in good standing. G. Extended Illness Leave Effective July 1, 2012, all regular benefit - earning employees who elect to participate in the PTO plan will convert to the extended illness leave plan. The extended illness leave bank is designed to protect an employee's PTO balance in the event of an illness or injury of more than two weeks. An employee may access extended illness leave in the event of an illness or injury, which extends beyond 10 work days. H. Definitions of Extended Illness Leave For the purposes of this extended illness leave policy, the following terms are defined as provided below. 1. Extended illness leave is an authorized absence from duty with pay that is granted to benefit - earning employees who have successfully completed the probationary period of employment with the City and who become ill or disabled for more than 10 work days. 2. Extended illness means a state of incapacity due to personal illness, or accidental bodily injury, which requires medical treatment by a licensed physician or health care provider and prevents an employee from performing the duties of his/her position. Extended illness leave may also be used by an employee to provide care to a family member during periods of illness in accordance with the provisions of this policy. If an employee exhausts his/her personal leave balance, extended illness leave will run concurrent with an authorized FMLA leave. 3. Extended illness leave is not a right an employee may exercise at the employee's discretion. Extended illness leave will be allowed by the City only in the case of verified necessity and actual need. The purpose of any extended illness leave is to provide income continuation during that period of time when the employee is unable to substantially perform the duties of his/her position. I. Extended Illness Leave Accrual Extended illness leave will be accrued from date of hire at the rate of two hours per pay period (52 hours per year to maximum of 520 hours). If an employee uses extended illness leave after attaining the full accrual of 520 hours, he /she will continue to accrue extended illness leave at two hours per pay period until reaching the maximum 520 -hour accrual. J. Administration of Extended Illness Leave Extended illness leave can be used only if an employee is on leave due to a certified illness or injury for 10 consecutive work days, except as provided below. Such extended illness leave will be administered as described below. 27 • • 1. Employees may not use extended illness leave until it has been credited to the employe& s bank in the payroll system. 2. To be eligible to receive extended illness leave benefits, an employee will inform his or her department director or Administration of his or her need to take extended illness leave. Employees are required to keep the City informed on a regular basis of their status to remain eligible for paid benefits. 3. The City reserves the right to have its own physician examine the employee periodically to render an opinion on whether the employee is able to return to work. If an employee is deemed to be able to resume productive work for the City, the employee will be directed to report to an appropriate work assignment. If the employee fails to report for work as directed, paid benefits may be terminated. 4. When an employee requests extended illness leave a physician's statement may be required by the City prior to the employee's return to work. The physician's statement must indicate the nature and length of the disability, any restrictions which the disability places upon the employee's ability to perform the work, and attest to the employee's ability to return to work. An employee who has been asked to provide such a statement will not continue receiving benefits until he /she has complied with this provision. 5. If an employee exhausts PTO leave before the 10 -day "waiting period" has been completed during a period of incapacity (as defined in this policy), extended illness leave will not be granted until after the 10 -day waiting period. 6. An employee who makes a false claim for extended illness leave benefits will be subject to disciplinary measures. 7. While receiving paid benefits under this section the employee will continue to accrue PTO leave and receive the City's contribution for health and dental insurance. 8. Extended illness leave balances will not be converted to any other form, such as severance pay, a health care savings account, or paid time off. 28 P57 P58 SECTION 7: EDUCATION AND EXPENSE REIMBURSEMENT 7.1 Tuition Reimbursement The City provides financial support to employees for educational courses taken at accredited academic institutions to enhance their professional development and to improve their job skills. This policy is an IRS tax- exempt program. Full -time, non - probationary employees are eligible for this program. Eligibility for reimbursement of courses will be based on relevancy to the employee's current position and the availability of budgeted funds. The City may reimburse eligible employees upon presentation of the final grades in accordance with the following schedule: Grade of "A" 75% of tuition Grade of `B" 75% of tuition Grade of "C" 75% of tuition Grade of "D" 0% of tuition Grade of "F" 0% of tuition Grade of Pass or Fail 75% of tuition for "passing" In the event that an eligible employee receives a grade of "incomplete," no refund will be forthcoming until a final grade is earned. When the requisite course is completed and a final grade is issued, the employee will be reimbursed in accordance with the above schedule. A maximum of $3,750 per calendar year will be reimbursed for tuition only. Charges for textbooks, school supplies, activity fees, or other costs are not reimbursable. As a condition of this program, the employee must agree to pay back 100% of the amount reimbursed for the 12 -month period preceding the employee's termination date if the employee voluntarily resigns from his/her position with the City of Lino Lakes. Eligible employees who receive assistance from other sources are eligible for reimbursement only if the cost of the tuition exceeds the amount of assistance received. No reimbursement will be made without prior approval from the employee's department director and the City Administrator. 7.2 Travel Reimbursement Employees who are authorized to travel for work - related purposes may be reimbursed for the actual cost of travel, meals, lodging, and other reasonable and necessary expenses. Eligible City employees include regular full -time and part-time employees and elected or appointed officials. It is the City's policy to prepay registration or out -of -state transportation costs whenever possible. 29 • • • A. Approvals and Advances Employee traveling overnight or outside the state must obtain prior approval by the department director, City Administrator, or City Council, whichever is applicable. Cash advances to defray expenses during authorized travel and conference attendance prior to the submission of an expense voucher must be approved by the City Council and shall be in an amount commensurate with expected needs. Requests for a travel advance should be made no later than seven days prior to departure. Unused travel advances must be returned to the City within five days after returning to work. B. Transportation Employees who use a personal vehicle for City business will be compensated for each mile driven at the IRS maximum rate for mileage. Transportation to and from work is not eligible for mileage reimbursement. Employees traveling outside the state will be reimbursed only for an economy class airline ticket. Automobile travel may be authorized in lieu of commercial transportation, but the total cost, including meals and lodging while traveling, shall not exceed the cost of a single round -trip economy class airline ticket to the conference location. The cost of a rental car may be reimbursable with prior approval of the City Administrator if transportation is necessary to and from the conference or if there is a cost savings to the City. Reasonable expenses for taxi and transfer service, hotel gratuity, parking, and other related travel expenses will be reimbursed with a proper receipt. Employees are responsible for accurately documenting mileage and travel expense claims. C. Meals Meals are reimbursable for overnight or out -of -state travel, which are not included in the registration fee for any event. The maximum daily per diem for meals is 550.00, including gratuities. The per diem guidelines for meals are as follows: $10.00 for breakfast, $15.00 for lunch, and $25.00 for dinner. Submission of a receipt is not required unless the per diem allowance is not adequate to cover the cost of a meal. Any reimbursement which exceeds the per diem must be approved by the City Administrator. The City will not reimburse for alcoholic beverages. D. Lodging The City will only reimburse for a single hotel accommodation rate, which is conveniently located near the conference. Lodging the night before the beginning of a conference is reimbursable. Lodging for conferences within the seven - county Twin Cities metropolitan area will be not reimbursed. Employee shall pay any additional costs for spouse and children. E. Expenses and Reports All travel expense vouchers must be submitted to the Finance Department within 30 days of the conference, seminar, or meeting. Expense receipts must accompany the voucher upon submission. Expenses not accompanied by a receipt will not be reimbursed. 30 P59 P60 7.3 Mobile Phones The City of Lino Lakes recognizes that cell phones and smart phone devices are tools needed to efficiently conduct City business. Issuance of a City -owned mobile phone or the payment of a mobile phone stipend serves a public purpose in providing employees with the ability to more effectively perform job - related duties in providing service to residents. The City Administrator or department director will determine which positions require a mobile phone and whether the needs are best served through issuance of a City -owned mobile phone or through a City -paid taxable monthly stipend for using their personal mobile phones. An employee who has been provided a City -owned mobile device must have it available during business hours, emergency responses, and other times as required. A taxable monthly stipend of $30 will be provided to employees who use their personal smart phone and need to remotely access network information and respond to email while out of the office. Employees who are provided a monthly stipend are responsible for all costs associated with the purchase, maintenance, replacement, and upgrade of their mobile device and for the cost of personal cellular service agreements. 31 • • • • SECTION 8: CONDUCT AND ETHICS • • 8.1 Conduct as a City Employee Chapter 204 of the Lino Lakes City Code outlines a Code of Conduct that applies to all "elected, appointed, and hired officials and employees of the City." Public officials and employees hold office for the benefit of the public. Elected officials and employees are expected to support and uphold the objectives of the electorate and the policies that support those objectives. Standards of conduct are as follows: A. Disclosure of Confidential Information No person covered by this code shall, without proper legal authorization, disclose confidential information concerning the property, government, or affairs of the City, nor shall a person use such information to advance their own financial or private interests or for any other person. B. Gifts Employees are prohibited from soliciting or accepting any gift or gratuity for more than $5.00 from any interested person, whether in the form of money, services, loan, travel, entertainment, hospitality, promise or any other form. Any "interested person" is any person who has a direct financial or economic interest in a decision that a City employee is authorized to make. C. Private Interests No person covered by this code shall appear on behalf of another" s private interest before the council or a committee, commission or agency of the City, nor shall he or she represent another private interest in any action or proceeding against the interest of the City in which the City is a partY. D. Privileges Persons covered by this code are prohibited from using their position to secure special privileges or exemptions. E. City Property No person covered by this code shall request or permit the use of city -owned vehicles, equipment, materials, or property for personal convenience or profit unless provided in City policy for use by officials or employees in the conduct of official business. F. Equal Treatment No person covered by this code shall grant any special consideration, treatment, or advantage to any citizen beyond that which is available to every other citizen. 32 P61 P62 8.2 Political Activity State law prohibits the City from imposing or enforcing limitations on the political activities of City employees beyond those established by state law. Employees are not prohibited from participating in local election campaigns or seeking appointment to public office. No City employee or official may use their official authority or influence to compel a person to apply for membership in or become a member of a political organization, to pay or promise to pay a political contribution, or to take part in a political activity. An employee elected to a public office may be required to resign or take a leave of absence if the duties of the elected office interfere with the employee's duties as a City employee. 8.3 Conflict of Interest The credibility of municipal government is based upon the confidence citizens have in how public employees and officials render fair and impartial services to all citizens without regard to personal interest or political influence. City employees and officials must avoid any activity that suggests a conflict of interest between their private interests and City responsibilities. When an employee believes the potential for a conflict of interest exists, it shall be the employee's responsibility to avoid the situation. 8.4 Nepotism Employment with the City is based on merit and ability. Whenever possible, no appointment will be made to an immediate family member of an elected official or employee of the City if the appointment is inconsistent with City policy. This provision does not apply to marital status, as protected under the Minnesota Human Rights Act. Family members eligible for employment with the City may be hired only if they will not be working directly for or supervising a relative, or will not occupy a position in the same line of authority within the organization. 8.5 Omnibus Child Support Enforcement Act The City of Lino Lakes complies with the guidelines established in the Omnibus Child Support Enforcement Act. Within 15 days of being hired, the City will submit certain information about the new employee to the Department of Human Services. Individuals are also required to voluntarily disclose information regarding court- medical support obligations. 8.6 Workplace Harassment The City of Lino Lakes is committed to creating and maintaining a comfortable and productive work environment free of harassment and discrimination. Employees must be free to exercise their duties without fear of verbal or physical intimidation or duress. The city realizes the 33 P63 • seriousness of harassment and expresses its earnest desire to prevent the occurrence of such incidents. Title 7 of the Federal Civil Rights Act of 1964 and Chapter 363 of Minnesota State Statutes prohibit discrimination and harassment in the workplace. It is the policy of the City of Lino Lakes to maintain an environment that is free from offensive conduct, harassment, and discrimination based on race, national origin, gender, religion, disability, age, marital status, sexual orientation, or status with regard to public assistance. It shall be a violation of this policy for any employee, agent, officer, council member or other City official to engage in offensive or harassing verbal or physical conduct of a sexual nature or regarding race, national origin, gender, religion, disability, age, marital status, sexual orientation, or status with regard to public assistance. The City will investigate all complaints of offensive, harassing, or violent conduct of a sexual nature to the extent evidence is available to verify the alleged harassment or any related retaliation. Sexual Harassment Prevention It is the City's goal to provide employees with a workplace free from sexual harassment and conduct that leads to claims of sexual harassment. Because sexual harassment is sometimes difficult for employees to recognize, the following definition, as defined by the Equal Employment Opportunity Commission (EEOC), is provided: Sexual or gender -based offensive conduct or harassment includes unwelcome physical or verbal conduct directed at an individual because of gender, unwelcome sexual advances, requests for sexual favors, sexually motivated physical conduct, or communication of a sexual nature when: (1) it a condition of hiring or promotion; (2) it becomes a factor in an employee's job duties or assignment; or (3) it creates an intimidating, hostile, or offensive environment in which to work. 8.7 Reporting Workplace Harassment Any person who believes he or she have been the victim of offensive conduct of a sexual nature or harassment based on race, national origin, gender, religion, disability, age, marital status, sexual orientation, or status with regard to public assistance, should report the alleged conduct immediately to the appropriate person, such as the department director or City Administrator. In addition to notifying management, the employee is also urged to document any further harassment or reprisals that occur after the complaint is made. The City encourages the reporting party or complainant to use the report form available from the City Administrator's office or available from the department director, but oral reports are considered complaints as well. Depending on the nature of the complaint, the City may take immediate steps, at its discretion, to protect the complainant and other employees or members of the public pending the completion of an investigation. 34 P64 8.8 Drug and Alcohol Testing The City of Lino Lakes has a vital interest in maintaining safe, healthful, and efficient working conditions for employees and recognizes that individuals who are impaired because of a controlled substance jeopardize the health and safety of employees and the public. It is the policy of the City to provide a drug and alcohol -free work environment. A. Definitions 1. Collection Site. A place designated by the City where employees with commercial driver's licenses present themselves for the purpose of providing a specimen of their urine or to take a breath test to be analyzed for the presence of alcohol. 2. Controlled Substance. Those substances identified in 49 C.F.R. § 40.21(a), which includes marijuana, amphetamines, opiates, (including heroin), phencyclidine (PCP), cocaine, and any of their metabolites within this definition. 3. Commercial Motor Vehicle. A motor vehicle or combination of motor vehicles use in commerce to transport passengers or property if the motor vehicle (1) has a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with gross weight rating of more than 10,000 pounds; or (2) has a gross weight rating of 26,001 or more pounds; or (3) is designed to transport 16 or more passengers, including the driver; or (4) is of any size and is used in the transportation of materials found to be hazardous for the purposes of the Hazardous Materials Transportation Act. Fire trucks and other emergency fire equipment are not considered commercial vehicles under this policy. 4. Confirmatory Test. A second controlled substance or alcohol test. For controlled substance testing, a confirmatory test is a second analytical procedure to identify the presence of a specific controlled substance or metabolite that is independent of the screen test and uses a different technique and chemical principal in order to ensure reliability and accuracy. For breath alcohol testing, the confirmatory test is a second breath alcohol test following an initial breath alcohol test with an alcohol concentration of 0.02 or higher. 5. Initial Screening Test. An analytical procedure to determine whether an employee may have a prohibited concentration of alcohol in his or her system. Initial breath alcohol screening tests will be conducted by utilizing an evidential breath testing device (EBT) that has met National Highway Traffic Safety Administration (NHTSA) specifications for precision and accuracy. Initial blood alcohol screening tests will be conducted by the laboratory in accordance with applicable law. In controlled substance testing, "initial screening test" means an immunoassay screen to eliminate "negative" urine specimens from further consideration. 6. Positive Test Result. A finding of the presence of alcohol or a controlled substance, or their metabolites in the sample tested in levels at or above the threshold detection level. 7. Reasonable Suspicion. A basis for forming a belief based on specific facts and rational inferences drawn from those facts. 8. Safety Sensitive Position. A job, including any supervisory or management position, in which an impairment caused by drug or alcohol usage would threaten the health and safety of any person. 35 • • • 9. Substance Abuse Professional (SAP). A licensed physician (medical doctor or doctor of osteopathy), licensed or certified psychologist, licensed or certified social worker, licensed or certified employee assistance professional, or licensed or certified addiction counselor (certified by the National Association of Alcoholism and Controlled Substance Abuse Counselors Certification Commission) with clinical experience in the diagnosis and treatment of alcohol and controlled substance - related disorders. B. Persons Subject to Testing Employees are required to report to work on time and in appropriate mental and physical condition for work as determined by their supervisor. No employee shall be under the influence of alcohol or a controlled substance, unless pursuant to a valid medical prescription and used as properly instructed while the employee is engaged in conducting City business. Violations of this policy will result in disciplinary action, up to and including termination. A violation of this policy may also have legal consequences under federal and state laws. As a condition of employment, each employee of the City must abide by the terms of this policy and report to his or her supervisor any instance where he or she has been charged under a criminal drug statute for a violation occurring on or off premises. If the employee's job requires the ability to drive a motor vehicle, the employee must immediately notify the appropriate supervisors of any loss, suspension, revocation, cancellation, or limitations of driving privileges. Under this policy, the City may test any applicant to whom an offer of employment has been made and may test any employee for alcohol and/or controlled substance under any of the following circumstances: 1. Pre - Employment Testing. Any job offer for a full -time or part-time "safety- sensitive" position with the City is conditional upon successful completion of a controlled substance test, among other conditions. If the job offer is withdrawn based on controlled substance test results, the City will inform the applicant of the reasons for the withdrawal. A failure of the controlled substance test, a refusal to take the test, or failure to meet other conditions of the job offer will result in a withdrawal of the offer of employment even if the applicant's provisional employment has begun. Temporary and seasonal employees are not subject to this policy, with the exception of those designated by the hiring department as safety - sensitive positions. 2. Reasonable Suspicion Testing. The City may require any employee in a safety - sensitive position to submit to alcohol and controlled substance testing where reasonable suspicion exists to believe the employee: • is-under the influence of alcohol or a controlled substance; or • has violated written work rules prohibiting the use, possession, sale, or transfer of controlled substance while on duty or operating a City vehicle or any other equipment; or • has sustRined a personal injury requiring medical care, or has caused another employee to sustain an injury requiring medical care; or • has caused a work - related accident or was operating or helping to operate machinery, equipment, or vehicles involved in a work - related accident; or 36 P65 P66 • Reasonable suspicion may be based upon, but is not limited to, facts regarding appearance, behavior, speech, breath, odor, possession, proximity to or use of alcohol or a controlled substance or containers of paraphernalia, poor safety record, excessive absenteeism, impairment of job performance, or any other circumstances that would cause a reasonable employer to believe that a violation of the City's policies concerning alcohol or controlled substance may have occurred. Observations for reasonable suspicion testing will be made by a supervisor or other person designated by the City who has received appropriate training in identification of actions, appearance and conduct of an employee which are indicative of the use of alcohol or controlled substance. These observations will be reflected in writing on a reasonable suspicion record form. Employees will be driven to the employer approved medical facility by their supervisor or a designated representative, or an on -site collection service will be contacted. The medical facility or on -site collection service will take the urine or blood sample and will forward the sample to an approved laboratory for testing. The results of any testing will be provided to Administration. 3. Return-to -Duty Testing. Before an employee will be allowed to return to duty, the employee will undergo a return -to -duty test on a date specified by a Substance Abuse Professional (SAP) or a Licensed Alcohol and Drug Counselor (LADC). The use of an LADC or SAP is at the sole discretion of the City. The test must indicate a negative breath alcohol concentration or a verified negative result for controlled substance use before the employee may return to work. Prior to a return-to -duty test the employee must be evaluated by a SAP or an LADC and participate in any recommended education or treatment program. The SAP or LADC will require a follow -up evaluation to determine if the employee has successfully completed the recommended program. The SAP or LADC will provide a written report for the City following the initial and follow -up evaluations with the employee. The return-to -duty test is not limited to a specific substance (i.e., the particular drug for which the employee tested positive). Additionally, if the SAP or LADC determines that a multiple - substance abuse problem exists, a controlled substance test may be performed in conjunction with an alcohol test. 4. Follow -Up Testing. Following a determination that an employee is in need of assistance in resolving problems associated with alcohol misuse or use of controlled substances, the employee is subject to unannounced follow -up alcohol or controlled substance testing as directed by the SAP or LADC for a period of up to two years following completion of a prescribed chemical dependency treatment program. The employee is also subject to all other required drug and controlled substance testing. A positive test in any follow -up testing or subsequent test will result in the employee's termination of employment with the City. 5. Post - Accident Testing. As soon as practicable following an accident involving a commercial driver operating a commercial motor vehicle on a public road, the City will test the driver for alcohol and controlled substances in the following circumstances: 37 P67 • • • The accident involves the loss of human life; or • The driver receives a citation for a moving traffic violation arising from the accident, which results in an injury or severe damage to one or more motor vehicles. A driver who is subject to post- accident testing must remain readily available for such testing. Drivers who are not readily available for such testing may be deemed by the City to have refused to submit to testing. Drivers are required to submit to post- accident controlled substance testing as soon as possible within 32 hours of the accident. If the driver is not tested within 32 hours after the accident, the City will cease its attempts to test the driver and prepare and maintain on file a record stating why the test was not promptly administered. Drivers are required to submit to post- accident alcohol testing as soon as possible within two hours; and in any event no more than eight hours after the accident. If the driver is not tested within two hours after the accident, the City will prepare and maintain on file a record stating why the test was not administered within that time. If the driver is not tested within eight hours after the accident, the City will cease its attempts to test the driver and prepare and maintain on file a record stating why the test was not administered. In the event of an accident, it is possible that the driver will be directed to submit to a breath, blood, or urine test for the use of alcohol or controlled substance administered by a federal, state, or local law enforcement officer. Whenever such a test is conducted by a law enforcement officer, the driver must contact the City and immediately report the existence of the test, providing the name, badge number, and telephone number of the law enforcement officer who conducted the test. 6. Random Testing. Random alcohol and controlled substance testing will be conducted as follows: • Alcohol testing will be administered at a number equal to or greater than 10% of the average number of driver positions. Controlled substance testing will be performed at a number equal to or greater than 50% of the average number of drivers. Under the selected process used, each driver will have an equal chance of being tested each time selections are made. Drivers may be selected for more than one test per year. • Test will be unannounced and spread reasonably through the calendar year. • Drivers selected for a random test will proceed immediately to the test site upon notification of being selected. • In the event a driver who is selected for a random test is on vacation or an extended medical absence they will be tested when they return. 7. Emergency Call Back to Work Provisions. If an employee is called back to work for an emergency and is suspected of being under the influence of drugs or alcohol, he or she will not be allowed to work and arrangements for transportation to the employee's home will be made. • 8. Right of Refusal. Employees have the right to refuse requested tests. However, refusal to submit to such tests will result in disciplinary action and will be considered in evaluating 38 P68 evidence related to violations of this or other employer policies. An employee who refuses to be tested shall not be permitted to operate a City vehicle or perform safety - sensitive work under any circumstances. 9. Cost of Required Testing. The City will pay for the cost of pre - employment, post - accident, and reasonable suspicion controlled substance and alcohol testing required of all job applicants and employees. Employees will pay for the cost of all requested confirmatory retests, return -to -duty and follow -up tests. C. Prohibition against Controlled Substance and Alcohol 1. Use and Possession of Alcohol or Controlled Substance. Employees are prohibited from the use, possession, transfer, transportation, manufacture, distribution, sale, purchase, solicitation to sell or purchase, or dispensation of alcohol or controlled substances while on duty or while operating any City vehicle, machinery, or equipment except (1) pursuant to a valid medical prescription used as properly instructed; or (2) the use of over -the- counter controlled substance used as intended by the manufacturer. 2. While Impaired of Alcohol or Controlled Substance. Employees are prohibited from having an alcohol concentration of 0.04 or more or any amount of a controlled substance in their urine or blood while on duty or while operating any City vehicle, machinery or equipment except (1) pursuant to a valid medical prescription used as properly instructed; or (2) the use of over -the- counter controlled substance used as intended by the manufacturer, or (3) as part of authorized duties within the scope of serving as police officer. 3. Driving While Impaired. A conviction of driving while impaired in a City -owned vehicle at any time during business or non - business hours or in an employee -owned vehicle while conducting City business may result in discipline, up to and including discharge. 4. Criminal Controlled Substance Convictions. Any employee convicted under any federal, state, or local statute for a controlled substance- related violation while operating any City vehicle, machinery, or equipment, or when performing any City business, must notify his or her supervisor and the City's Administration Department, in writing, of the conviction no later than five days after such conviction. Within 30 days after receiving notice from an employee of a controlled substance- related conviction, the City will take appropriate disciplinary action against the employee, up to and including discharge, and require the employee to satisfactorily participate in a controlled substance abuse program at the employee's own expense unless provided to the employee through the employee's own insurance coverage. The City, in its sole discretion, will determine what disciplinary action is appropriate. In the event notice is not provided to the supervisor and the employee is deemed to be incapable of working safely, the employee will not be permitted to work and will be subject to disciplinary action, including dismissal from employment. 5. Failure to Disclose Lawful Controlled Substance. Employees taking a lawful controlled substance, including prescription and over - the - counter controlled substances, which may impair their ability to perform their job responsibilities or pose a safety risk to themselves or others, must advise their supervisor of this before beginning work. It is the employee's responsibility to seek out information from his/her physician or pharmacist regarding 39 • • medication and any job performance impairment and relay that information to his/her supervisor. In the event of such disclosure, the employee will not be authorized to perform safety - sensitive functions unless a physician provides a release stating the employee is not impaired by the medication and can safely perform the safety - sensitive functions. 6. Refusal to Submit to a Required Alcohol or Controlled Substance Test. Employees and applicants have the right to refuse an alcohol or controlled substance test under this policy. If an applicant or employee refuses to submit to a required alcohol or controlled substance test, no test will be conducted. However, such a refusal will be considered a positive test result, which will disqualify the employee from performing safety sensitive functions, and result in disciplinary action. The City will provide the employee an opportunity to participate in either a controlled substance or alcohol counseling or rehabilitation program, whichever is more appropriate, as determined by the City after consultation with a SAP or LADC. If the employee refuses to participate in the counseling or rehabilitation program or fails to successfully complete the program as evidenced by withdrawal from the program before its completion, or tests positive on a confirmatory retest after completion of the program, or refuses a follow -up test, the City will discharge the employee. Participation by the employee in any recommended substance abuse treatment program will be at the employee's own expense or pursuant to coverage under an employee" s benefit plan. The SAP or LADC will determine if the employee has followed the rehabilitation program as prescribed. If an applicant refuses to submit to pre - employment testing, the job applicant will be considered to have withdrawn his or her application from employment. For purposes of this section, an employee or applicant refuses to submit to an alcohol or controlled substance test when the applicant or employee: • Fails to provide adequate breath for alcohol testing without a valid medical explanation after he or she has received notice of the requirement for breath testing; • Fails to provide adequate urine for controlled substance testing without a genuine inability to provide a specimen (as determined by a medical evaluation) after he or she has received notice of the requirement for urine testing; Fails to report for testing within 30 minutes, or another time frame specified by the City, when directed to report for off -site testing; Fails to remain at a testing site until testing is complete; • In a case of directly observed or monitored collection, fails to permit observation or monitoring; • Fails or declines to take a second test as required by the City and/or collector; or • Engages in conduct that clearly obstructs the testing process. Refusal by an applicant or employee to complete and sign required forms, to provide an adequate breath, blood, or saliva sample, or otherwise cooperate in a way that prevents the completion of the testing process, constitutes a refusal to test. D. Review and Notification of Test Results 1. Review by Medical Review Officer. Results of positive controlled substance tests and positive blood and urine alcohol tests will be sent by the testing laboratory to an 40 P69 P70 independent Medical Review Officer ( "MRO ") selected by the City. The MRO is responsible for reviewing and interpreting test results, reviewing the individual's medical history to explain a positive test result, and notifying individuals of confirmed positive test results. Prior to making a final decision to verify a positive test result, the MRO will give the individual an opportunity to discuss the test result. The MRO, or a medical staff person under the MRO's supervision, will contact the individual directly, on a confidential basis, to determine whether the individual wishes to discuss the test result. If the individual wishes to discuss the test result: • The individual may be required to speak or meet with the MRO, who will review the individual's medical history, including any medical records provided; • The individual will be afforded the opportunity to discuss the test results and to offer any additional or clarifying information which may explain the positive test result; • If there is some new information which may affect the original finding, the MRO may request the laboratory to perform additional testing on the original specimen in order to further clarify the results; and • A fmal determination will be made by the MRO that the test is either positive or negative and the individual will be so advised. If the MRO determines there is a legitimate medical explanation for a confirmed positive test result, the MRO will report the test result to the City as negative. If the MRO determines that there is no legitimate medical explanation for a confirmed positive test result, the MRO will report the positive test result to the City. Based on a review of laboratory reports, quality assurance and quality control data and other test results, the MRO may conclude that a particular confirmed test result is scientifically insufficient for further action. Under these circumstances, the MRO will conclude that the test is negative. Job applicants and employees are strongly encouraged to speak with the MRO to provide any valid explanation for a positive test result. The MRO will verify a test as positive without talking directly with the individual under the following circumstances: • The individual expressly declines the opportunity to discuss the test with the MRO after being contacted by the MRO or the MRO's staff representative; • Neither the MRO nor the City, after making all reasonable efforts, have been able to contact the individual within 14 days of the date on which the MRO receives the confirmed positive test result from the laboratory; or • The City has successfully made and documented a contact with the individual and instructed the individual to contact the MRO and more than five days have passed since the date the individual was successfully contacted. Once a positive test has been verified by the MRO, it can be re- opened only if the individual presents to the MRO information documenting that serious illness, injury, or other circumstances prevented the individual from being contacted as described above. If the individual expressly declines the opportunity to discuss the test with the MRO after 41 • • • being contacted by the MRO or the MRO's staff representative, the test cannot be reopened regardless of any explanation provided by the individual. Notification of Negative Test Results. In the case of job applicants, Administration will notify a job applicant verbally of a negative controlled substance result and the hiring process will resume. A negative test results notification form will also be sent to the job applicant. The job applicant may request a copy of the test result report from Administration. In the case of current employees, negative breath alcohol test results will be communicated to employees immediately upon conclusion of the breath alcohol test. Administration will verbally notify the employee and the employee's supervisor of a negative blood alcohol or urine controlled substance test result. In all cases, a negative test results notification form will also be sent to the employee. The employee may request a copy of the test result report from Administration. The employee will receive back pay for time lost and the City will not take any adverse action based on the negative test result. 3. Notification of Positive Test Results. Positive breath alcohol test results will be communicated to employees immediately upon conclusion of the breath alcohol test. In the case of positive blood alcohol or urine controlled substance test results, the MRO will contact the employee or job applicant to discuss the positive test result. Within three work days of receiving a confirmed positive test notification from the MRO, Administration will send to the supervisor and the employee or job applicant a positive test results notification letter containing further instructions. The employee or job applicant may contact Administration to request a copy of the test result report if desired. 4. Right to Provide Information After Receiving Test Results. Within three work days after notice of a positive controlled substance or alcohol test result on a confirmatory test, the employee or job applicant may submit information to the City or its MRO to explain the positive result. If the employee or applicant has tested positive for controlled substance use, the MRO may request the individual to indicate any over - the - counter or prescription medication the individual is currently taking or has recently taken and any other information relevant to the reliability of, or explanation for, the positive controlled substance test result. 5. Right to Confirmatory Retest. In the case of urine controlled substance testing and blood alcohol testing, a job applicant or employee may request a confirmatory retest of the original sample at the job applicant's or employee's own expense after notice of a positive test result on a confirmatory test. Within five work days after notice of the confirmatory test result, the job applicant or employee must notify the City or its MRO, in writing, of the job applicant's or employee's intention to obtain a confirmatory retest. Within three work days after receipt of the notice, the City will notify the original testing laboratory that the job applicant or employee has requested the laboratory to conduct the confirmatory retest or transfer the sample to another laboratory licensed to conduct the confirmatory retest. The original testing laboratory will ensure that the control and custody procedures are followed during transfer of the sample to the other laboratory. 42 P71 P72 The confirmatory retest will use the same controlled substance and/or alcohol threshold detection levels as used in the original confirmatory test. In the case of job applicants, if the confirmatory retest does not confirm the original positive test result, the City's job offer will be reinstated and the City will reimburse the job applicant for the cost of the confirmatory retest. In the case of an employee, if the confirmatory retest does not confirm the original positive test result, no adverse personnel action based on the original confirmatory test will be taken against the employee. The employee will be reinstated with any lost wages or salary for time lost pending the outcome of the confirmatory retest result, and the City will reimburse the employee for the cost of the confirmatory retest. 6. Right to Obtain Test Result Report. An employee or job applicant has the right to request and receive from the City a copy of the test result report on any controlled substance or alcohol test. Within three work days after receipt of a test result report from the testing laboratory, the City will inform the employee or applicant of this right. 7. Dilute Specimens. • Dilute Positives. If the City receives infoluiation that an employee has provided a dilute positive specimen, the City will consider the employee to have tested positive under this policy. • Dilute Negatives. If an employee provides a dilute negative specimen, the City will direct the employee to take a second screening test. The second screening test will be performed as soon as possible after the City receives word of the dilute negative specimen. E. Consequences for Employees Engaging in Prohibited Conduct 1. Job Applicants. The City's conditional offer of employment will be withdrawn from any job applicant who refuses to be tested or tests positive for any controlled substance as verified by a confirmatory test. 2. Employees. • No Adverse Action without Confirmatory Test. The City will not discharge, discipline, discriminate against, or request or require rehabilitation of an employee based on a positive test result from an initial screening test that has not been verified by a confirmatory test. • Suspension Pending Test Result. The City may temporarily suspend a tested employee with or without pay or transfer that employee to another position at the same rate of pay pending the outcome of the requested confirmatory retest provided the City believes that it is reasonably necessary to protect the health or safety of the employee, other employees, or the public. The employee will be asked to return home, and will be provided transportation to his or her home by the City. An employee who has been suspended without pay will be reinstated with back pay if the outcome of the requested confirmatory retest is negative. • First Positive Test Result. The City will not discharge an employee for whom a positive test result was the first such result for the employee on a controlled substance 43 • or alcohol test required by the City unless the City has independent grounds for doing so or the following conditions have been met: The City has first given the employee an opportunity to participate in either a drug or alcohol counseling or rehabilitation program, whichever is more appropriate, as determined by the city after consultation with a SAP or LADC. The City will determine whether to use an LADC or SAP. Participation by the employee in any recommended substance abuse treatment program will be at the employee's own expense or pursuant to the coverage under an employee benefit plan. The SAP or LADC will determine if the employee has followed the rehabilitation program as recommended. • Refusal to Participate in a Treatment Program. If the employee refuses to participate in the counseling or rehabilitation program or has failed to successfully complete the program, as evidenced by withdrawal from the program before its completion, the City will discharge the employee. • Second Positive Test Result. A second positive confirmed test result will result in dismissal proceedings against the employee. • Other Misconduct. Nothing in this policy Limits the right of the City to discipline or dismiss an employee on grounds other than a positive test result in a confirmatory test, including conviction of any criminal drug statute for a violation occurring in the workplace or violation of other City personnel policies. P. Appeal Process Concerning disciplinary actions taken pursuant to this policy, the appeal procedures are as follows: • Job applicants have no right of appeal. • Probationary, temporary, and seasonal safety- sensitive employees have no right of appeal. • Full -time and part-time non -union employees will follow grievance procedures included in this personnel policy. • Employees covered by a collective bargaining agreement may contact their respective union representatives. G. Contact for Additional Information If you have any questions about this policy or the City's controlled substance and alcohol testing procedures, you may contact your immediate supervisor or Administration to obtain additional information. H. Confidentiality and Privilege Test result reports and other information acquired in the drug or alcohol testing process are considered private data on individuals as defined in Minnesota Statute 13.02, Subd. 12. Test results and other information acquired in the drug or alcohol testing process shall not be disclosed to a third party individual, governmental agency, or private organization without the written consent of the employee or job applicant. Evidence of a positive test result on a confirmatory test may be: 44 P73 P74 1. Used in an arbitration proceeding pursuant to a collective bargaining agreement, an administrative hearing under Chapter 43A or other applicable state or local law, or a judicial proceeding provided that information is relevant to the hearing or proceeding. 2. Disclosed to any federal agency or other unit or the United States Government as required under federal law, regulation, or order, or in accordance with compliance requirements of a federal government contract. 3. Disclosed to a substance abuse treatment facility for the purpose of evaluation or treatment of the employee. 4. Disclosed to the consulting or treatment professional or drug evaluator. Positive test results acquired under this drug and alcohol testing program may not be used as evidence in a criminal action against the employee or job applicant. 8.9 Drug and Alcohol Testing for Commercial Drivers In accordance with procedures required by the Federal Highway Administration and U.S. Department of Transportation drug testing regulations, all drug test results that are initially positive will be confirmed by a second testing of the primary urine sample using the GCMS testing method or some comparably accurate method to confirm the test result. Any confirmed positive test results will be reviewed by a Medical Review Officer to verify a positive or negative finding. Alcohol testing will be conducted according to Federal Highway Administration and U.S. Department of Transportation alcohol testing regulations. All breath alcohol tests will be performed only on testing equipment approved by the U.S. Department of Transportation. To ensure that the policy is clearly communicated to all drivers and applicants to whom offers of employment or contracts have been made, and in order to comply with applicable federal law, drivers and applicants are required to review this policy and execute the "Certificate of Receipt" portion. Because changes in applicable law and the City's practices and procedures may occur from time to time, terms of this policy may change in the future, and nothing in this policy is intended to be a contract, promise, or representation of any specific term or condition of employment except to the extent required by law. In the event that applicable DOT or FMCSA regulations governing alcohol and controlled substance use and testing are supplemented or amended, this policy shall be deemed to have been amended to conform to the applicable regulations. Any revisions to the Federal Omnibus Transportation Employee Testing Act will take precedent over this policy to the extent the policy has not incorporated those revisions. A. Persons Subject to Testing All employees are subject to testing whose job duties include operating City vehicles that: 1. Have a gross vehicle weight rating of 26,001 pounds or more; or 2. Have a gross combination weight rating of 26,001 or more pounds inclusive of a towed unit with a gross vehicle weight rating of more than 10,000 pounds; or 3. Are designed to carry 16 or more passengers, including the driver; or 45 • • • 4. Are of any size and are used in the transportation of materials where the vehicle is required to be placarded under the Hazardous Materials Regulations 49 CFR part 172, subpart F (regardless of weight). All applicants, including current employees, applying for a position where duties include operating the vehicles described above, will be required to take a drug test after a job offer is made. The job is contingent upon a negative drug test report. In accordance with Federal Motor Carrier Safety Administration regulations, firefighters operating commercial motor vehicles necessary for the preservation of life or property are exempt from DOT testing requirements. Every driver will be subject to alcohol and controlled substance testing on a random selection basis. Drivers will be selected for testing by use of a scientifically valid method under which each driver has an equal chance of being selected each time selections are made. These random tests will be conducted throughout the calendar year. Each driver who is notified of selection for random testing must cease performing safety - sensitive functions and report to the designated test site immediately. It is mathematically possible that drivers may be selected for more than one random test per year. If a driver is selected for a random test while he or she is absent, on leave or away from work, that driver will be required to undergo the test when he or she returns to work. At this time, federal law requires the City to test at a rate of at least 50 percent of its average number of drivers for controlled substance each year, and to test at a rate of at least 10 percent of its average number of drivers for alcohol each year. These minimum testing rates are subject to change by the DOT. B. Removal from Safety - Sensitive Functions No driver may perform safety - sensitive functions, including driving a commercial motor vehicle, if the driver has engaged in conduct prohibited by federal law. No driver who is found to have an alcohol concentration of 0.02 or greater but less than 0.04 may perform or continue to perform safety - sensitive functions for the City, including driving a commercial motor vehicle, until the start of the driver's next regularly scheduled work day, but not less than 24 hours following administration of the test. If a driver tests positive under this policy, or is found to have an alcohol concentration of .02 or greater but less than .04, the driver will be removed from safety sensitive duties and escorted home. The driver should not drive home and will be given transportation to his or her home. The driver will then be placed on a leave of absence until a confirmatory test has been completed. C. Reasonable Suspicion A trained supervisor is required to conduct a test for drugs or alcohol if he or she suspects an employee is under the influence of drugs or alcohol. The suspicion must be based on specific observations by a trained supervisor concerning the employee's current appearance, behavior, speech, and smell that are usually associated with drug or alcohol use. A written record will be made of the observations leading to an alcohol or controlled substance test and signed by the trained supervisor within 32 hours of the observed behavior, or before the 46 P75 P76 results of the alcohol or controlled substances tests are released, whichever is earlier. The record will be submitted to Administration. When the City has reasonable suspicion to believe that the driver has engaged in conduct prohibited by federal law, the City must require the driver to submit to an alcohol or controlled substance test. If a reasonable suspicion alcohol test is not administered within two hours following the determination of reasonable suspicion, the City will prepare and maintain on file a record stating the reasons the alcohol test was not promptly administered and such record will be forwarded to Administration. If a reasonable suspicion alcohol test is not administered within eight hours following the determination of reasonable suspicion, the City will prepare and maintain on file a record stating the reasons the alcohol test was not administered, and will cease attempts to conduct the alcohol test. If a reasonable suspicion controlled substance test is not administered within 32 hours following the determination of reasonable suspicion, the City will cease attempts to administer a controlled substance test and will prepare a record stating the reasons for not administering the test. Notwithstanding the absence of a reasonable suspicion test, no driver may report for duty or remain on duty requiring the performance of safety - sensitive functions while the driver is under the influence of or impaired by alcohol, as shown by the behavioral, speech, and performance indicators of alcohol use, nor will the City permit the driver to perform or continue to perform safety - sensitive functions until (1) an alcohol test is administered and the driver's alcohol concentration is less than 0.02; or (2) 32 hours have elapsed following the determination of reasonable suspicion. D. Return -to -Duty and Follow -Up When an employee tests positive or refuses a test or violates other provisions of DOT and USCG testing regulations that employee cannot work again in DOT safety- sensitive positions until successfully completing a Substance Abuse Professional (SAP) evaluation and any subsequent prescribed education or treatment program. E. Return -to -Duty Testing After successfully completing the SAP requirements, the employee may be eligible to return to work. However, before the City can return the person to work in a safety - sensitive job, a SAP must determine that the employee successfully complied with the recommended treatment. The employee must then have a "return-to -duty test" and the test result must be negative. The SAP will also develop the employee's follow -up testing plan, outlining for the City the number and frequency of follow -up testing that will take place. The City is responsible for ensuring that the employee is tested according to the SAP's follow -up plan. These tests can be for drugs or alcohol or both. The SAP must direct at least six follow -up tests in the first 12 months after the person returns to safety- sensitive duties. However, the SAP can direct more tests and may extend them for up to five years. F. Cost of Required Testing The employee is responsible for paying for all costs associated with requested confirmatory retests, return -to -duty, and follow -up testing. 47 • • • • 8.10 Professional Appearance • Quality service, a positive attitude, good customer relations, and a professional appearance help create and maintain a favorable image of the City. Employees represent the City in their daily contact with residents, consultants, and businesses. The City expects employees to use good judgiiient in choosing their attire and in their grooming and personal hygiene. With the exception of employees required to wear uniforms or outdoor clothing, employees will adhere to "business casual" attire. Department directors, with authority from the City Administrator, may make the final determination as to appropriate attire based on the work environment. 8.11 Computer Use Policy A. Purpose and Scope This policy serves to protect the security and integrity of the City's electronic communications and information systems by educating employees about appropriate and safe use of technology resources. This policy applies to all individuals granted access to the City's network and information systems. This policy includes all City -owned computers, as well as those connected to the City's network. B. Securing Desktop and Notebook Computers 1. Users will ensure reasonable physical safeguards to maintain desktop and notebook computer and peripheral equipment in such a way to avoid inadvertent disclosure of City information. 2. When leaving a desktop or notebook computer unattended, users shall apply the "Lock Workstation" feature where systems allow. 3. Unattended computers shall be secured from viewing by password protected screen savers, which should be set to automatically activate after a period of - non -use. The period of non -use shall be for no more than 60 minutes. 4. Desktop computer users shall store confidential and sensitive information on a network drive (shared directory on the City network) and not the user's hard drive. 5. Computers and monitors shall be turned off at the end of each workday unless you are instructed otherwise. 6. Additional security requirements may be required for computers containing data governed by other applicable state and federal laws, including law enforcement data and data associated with the Health Insurance Portability and Accountability Act (HIPAA). C. Physical Security Measures Physical security measures shall be used to secure notebooks, computer media, and other forms of information storage media containing confidential or sensitive information. 48 P77 P78 1. Mobile notebook computers actively connected to the network or information systems must not be left unattended. 2. Notebook computers left in a vehicle shall not be visible except in police, utility department, or fire emergency vehicles where the device is mounted to the vehicle console. If possible, the notebook should be stored in a locked trunk. Weather conditions should be considered when leaving electronic equipment in a vehicle for long periods of time. Unattended vehicles shall be locked at all times. 3. Mobile notebook computers, computer media, and any other forms of removable storage should be stored in a secure location. 4. Other information storage media containing confidential data shall be stored in a secure location or locked cabinet when not in use. D. Peripheral Equipment Peripheral equipment (e.g. printers, faxes, copiers) that store, produce, and transfer confidential or sensitive information, shall be protected from inadvertent or unauthorized access. Documents containing confidential or sensitive information should be cleared from printers and copiers immediately. E. Passwords User identification (name) and authentication (password) shall be required to access the operating system of all desktop and notebook computers. Employees may not share account or password information with another person. Internet accounts are to be used only by the assigned use of the account for authorized purposes. Attempting to obtain another user's password is strictly prohibited. Users are required to change or obtain a new password if they have reason to believe that any unauthorized person has obtained their password. Users are required to take all necessary precautions to prevent unauthorized access to Internet services. Supervisors are required to report immediately to IT staff when an employee resigns or is terminated. Employees are required to contact IT staff when they suspect their login ID has been compromised or when someone else has obtained their password. Employees are responsible for maintaining computer passwords by following these guidelines: • Passwords must be a minimum of eight alphanumeric characters in length and be "complex." For a password to be complex it must contain three of the following four categories: English upper case letters, English lower case letters, numbers, or non- alphabetic characters found on the keyboard (e.g. !, #, $, %). • Passwords should not be stored in any location on or near your computer. • The computer system will prompt employees to update passwords every 90 days. A password cannot be reused until after 10 change cycles. Password protection of any document is prohibited unless authorized by IT staff and the appropriate department director. This applies to any document stored on any drive (local or network), which includes diskettes, CDs, DVDs, flash drives, or any other storage device owned by the City. Any document found with unauthorized password protection will be deleted. 49 • • • F. Unauthorized Software Individual users are prohibited from installing or downloading software applications or executable files to any City -owned computer without prior authorization from IT staff. G. Viruses Desktop and notebook computer users shall not write, compile, copy, knowingly propagate, execute, or attempt to introduce any computer code designed to self - replicate, damage, or otherwise hinder the performance of any computer system. Suspected viruses should be reported immediately to IT staff. Viruses shall not be deleted without assistance unless instructed by the IT staff. H. Monitoring The City of Lino Lakes reserves the right to inspect any data, emails, settings, or any other components of a City -owned computer at any time without an employee's consent. By using a City -owned computer, employees consent to any monitoring that may take place. An audit may result in the removal of hardware and software and further disciplinary action if any user is not complying with this policy. I. No Expectation of Privacy All technology systems are the property of the City of Lino Lakes. This includes, but is not limited to, all hardware, software, programs, applications, templates, documents, internal and external email messages, internet logs, and data files developed or stored by City -owned or leased technology systems. The City reserves the right to access and retrieve any data, messages, or files without prior employee consent. Users should have no expectation of privacy in the use of City technology. This includes personal email messages and Internet logs. J. Licensing To ensure license compliancy, all software must be purchased by and licensed to the City. 1. Development. Any software programs developed for use by the City becomes the property of the City. Software programs may not be sold or distributed without prior approval. 2. City -Owned Software. City -owned software may not be loaded on non -City owned equipment without prior approval. 3. Copyright Laws. City users are required to abide by software copyright law and licensing agreements. If there is any question about the legality of the software and documentation, it should be directed to IT staff. K. Electronic Mail The City provides employees with individual email accounts for work - related use. Employees are encouraged to use email to further the goals and objectives of the City. An employee's personal email may be considered "public" data and may not be protected by privacy laws. Personal email may also be monitored without notice to the employee. 50 P79 P80 All email messages will be deleted from the electronic mail system 120 days after receipt. If retention of any message is warranted beyond that period, the message should be moved to a permanent storage area. The following policies pertain to emails of both business and personal content: • Use extreme caution when communicating confidential or sensitive information via email. A good rule is to not communicate anything that you would not feel comfortable being made public. • Do not correspond by email on confidential communications (e.g., letters of reprimands, correspondence with attorneys, medical information). • Do not open email attachments or links from an unknown sender. Attachments are the primary source of computer viruses and should be treated with extreme caution. Delete junk or "spam" email without opening it if possible. L. Internet Use The City provides Internet access for employees to acquire and share infoimation and to participate in educational and professional development activities. Employees should minimize unnecessary network traffic that might interfere with the ability of others to make effective use of this shared network resource. Use of the Internet through City computers is a privilege which may be revoked at any time for abusive conduct. Users are responsible for adhering to this policy when accessing the Internet. Failure to adhere to this policy puts the City and the individual at risk for legal and financial liabilities, potential embarrassment, and other consequences. The City retains the right to monitor any employee's use of the Internet without prior notice. The City may limit Internet activity in order to ensure the most efficient use of this resource. M. Inappropriate Use of Email and the Internet Use of the Internet and email in a manner that is not consistent with the mission of the City, misrepresents the City, or violates any City policy, is strictly prohibited. Internet use at the City will comply with all federal and state laws, City policies, and any contract. The City allows limited personal use of email and Internet resources for communicating with family and friends, independent learning, and public service as long as it does not interfere with staff productivity, preempt City business, or consume City resources. The City prohibits the use of mass unsolicited mailings, access for non - employees to City resources or network facilities, competitive commercial activity, and the dissemination of chain letters. N. Failure to Comply Violations of this policy will be treated like other allegations of wrongdoing in the City in accordance with established procedures. Violations of this policy may subject the violator to one or more of the following: • Temporary or permanent revocation of network access and other equipment access. • Termination of employment. • Legal action according to applicable laws and contractual agreements. 51 • SECTION 9: SEPARATION FROM CITY EMPLOYMENT • • 9.1 Voluntary Resignation An employee wishing to leave City service in good standing must give two weeks written notice. Written resignations are considered effective upon receipt by the City. Failure to provide proper written notice may be cause for denying severance pay and future employment with the City. Unauthorized absences from work for a period of three consecutive work days may be considered a voluntary resignation not in good standing. 9.2 Reduction in Force The City may lay off employees whenever such action is made necessary as provided in the annual budget by reason of shortage of work or funds, the abolition of a position or because of changes in organization. Two weeks advance written notice of the lay -off shall be given. An employee may be transferred to another position if such employee is qualified. Qnmlifications and job performance shall be the determining factor for lay -offs. Employees who have been laid off will be recalled to their former position classification in the reverse order of their lay -off. 9.3 Termination Any employee subject to the provisions of this personnel policy may be discharged by the City for just cause only. Evidence of the following may be sufficient cause for termination, demotion, or other disciplinary action: 1. Incompetence or misconduct in the performance of duties. 2. Violation of any lawful regulation or administrative order, or an act of insubordination that results or reasonably might be expected to result in loss or injury to the City or to the public. 3. Unsatisfactory conduct in job performance resulting from being under the influence of alcohol or drugs. 4. Use of offensive conduct of language towards the public, municipal officers, or employees. 5. Carelessness or negligence in the handling, control, or use of City property or unauthorized use of City property. 6. Inducing or attempting to induce an officer or employee of the City to commit an unlawful act or to act in violation of a regulation or order. • 7. Dishonesty in the performance of duties. 8. Conviction of a crime directly related to the employee's position with the City. 52 P81 P82 9. Making false or misleading statements while conducting City business, or falsifying timesheets, reports, records, or documents. 10. Excessive tardiness or absenteeism, or abuse of leave. The particular dismissal, demotion or suspension shall be based on the facts and circumstances involved. The City may take disciplinary action while pursuing criminal prosecution against an employee. 9.4 Severance Pay An employee who has completed 10 years of service with the City and who leaves employment in good standing shall receive severance pay equal to 50 percent of the employee's current hourly pay rate. The maximum amount of severance pay shall be limited to a maximum of 480 hours. 53 • • • • SECTION 10: DISCIPLINARY HEARINGS • • 10.1 Request for Hearing When a regular full -time for part-time employee is dismissed or demoted for disciplinary reasons, the employee will be entitled to a hearing pursuant to this section of the Personnel Policy. If the employee is exonerated and reinstated to his or her former position, the rights of the employee will be retroactive to the effective date of the disciplinary action. 10.2 Pre - Termination (Loudermill) Hearing The Loudermill hearing, which serves as an initial check on the employment decision, will be conducted in accordance with federal law as provided in Cleveland Board of Education v. Loudermill. The employee will be given an opportunity to respond to the charges and present reasons to the City Council why the discharge should not occur. Probationary employees are not entitled to such a hearing. 10.3 Post- Discharge Hearing For a post - discharge hearing, the employee must first submit a written request to the City Administrator within 15 calendar days after receiving written notice of the discharge. The hearing before the City Council will be held no later than 10 calendar days from the date City Administrator's receipt of the written request for a hearing. If an employee is not satisfied with the decision of the City Council after the hearing, he or she may within seven calendar days submit the matter to a final hearing to be held by of board of three arbitrators: one appointed by the City Administrator, on by the employee, and the third selected by the two previously designated. By mutual agreement, the employee and the City Administrator may elect to appoint a single arbitrator through the Bureau of Mediation Services. The cost of the hearing shall be divided between the employee and the City. 10.4 Veterans' Preference Hearing A discharge hearing for a veteran employed with the City will be in accordance with state and federal law. Any veteran who has been notified of the intent to discharge from City employment will be notified in writing of such intent to discharge and of the veteran's right to request a hearing within 60 days of receipt of notice. The failure of the veteran to request a hearing within the provided 60 -day period will constitute a waiver of the right to a hearing and all other available legal remedies for reinstatement. If a veteran is a member of a labor union whose collective bargaining agreement provides for binding arbitration, the veteran may take advantage of both hearing processes. 54 P83 P84 STAFF ORIGINATOR: MEETING DATE: TOPIC: VOTE REQUIRED: INTRODUCTION CITY COUNCIL AGENDA ITEM 3B Julie Bartell, City Clerk May 29, 2012 Resolution No. 12 -39, Authorizing issuance of a Special Event Permit for the Lino Lakes YMCA Farmers Market 3/5 City Code Chapter 615 are the city's regulations regarding special events. The purpose of these regulations is to ensure that public events in the city are conducted with sufficient consideration given to public safety issues and to understand the need for city services. The city charges a fee of $50 for special event permits but waives the fee for events sponsored by non- profit groups. BACKGROUND The City has received an application from Sharna Braucks, Executive Director of the Lino Lakes YMCA, to conduct a Farmer's Market in the city's Village Green Park. The market would be open to the public on Thursdays from 3:00 p.m. until 7:00 p.m. from July 12 through September 27, 2012. The purpose of the market is to provide fresh fruits, vegetables and other Minnesota items to the community and promote healthy eating habits. The YMCA has submitted detailed plans indicating how the market site would be set up and maintained during operations, items that would be allowed for sale, site cleanup as well as parking plans. They have submitted a site plan also containing additional details about the parking and use of the park facility. These plans have been reviewed and approved by staff, including the police and fire department. RECOMMENDATION The Lino Lakes YMCA application for a special event permit meets the requirements of the city code and has not been found to present any safety concerns. Therefore, staff recommends that the council approve Resolution No. 12 -39, Authorizing issuance of a Special Event Permit for the Lino Lakes YMCA Farmers Market. P85 CITY OF LINO LAKES RESOLUTION NO. 12 -39 APPROVING A SPECIAL EVENT PERMIT FOR THE LINO LAKES YMCA FARMERS MARKET WHEREAS, the Executive Director the Lino Lakes YMCA has submitted an application for a special event permit; and WHEREAS, the YMCA wishes to establish a farmers market to be located at the City's Village Green Park, near the YMCA facility; and WHEREAS, the farmers market would be held every Thursday from July 12 and September 27, 2012 between the hours of 3:00 p.m. and 7:00 p.m.; and WHEREAS, the YMCA has submitted detailed plans to set up and operate a farmers market, including adequate parking plans; and WHEREAS, city staff has reviewed the special event plans and have determined that they meet the requirements of the city's ordinances; NOW, THEREFORE, BE IT RESOLVED by The City Council of The City of Lino Lakes, Minnesota: That the City Council hereby authorizes the issuance of a Special Event Permit to the Lino Lakes YMCA for Farmers Market to be held Thursdays, from July 12 through September 27, 2012. Adopted by the Council of the City of Lino Lakes this 29th day of May, 2012. 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: ATTEST: Julianne Bartell, City Clerk Jeff Reinert, Mayor • • • • • • CITY COUNCIL AGENDA ITEM 4A STAFF ORIGINATOR: Chief John Swenson MEETING DATE: May 29, 2012 TOPIC: Driving Diversion Program VOTE REQUIRED: No Action Needed — Information Only INTRODUCTION City Prosecutor Robb Olson and Chief Swenson will provide a brief overview of the Driving Diversion Program (DDP). BACKGROUND The DDP is a pilot program established during the 2009 Minnesota Legislative Session that was extended during the 2011 Legislative Session. The DDP enables jurisdictions to divert individuals who are cited for driving after revocation and driving after suspension. The DDP is administered by Diversion Solutions and has a proven track record in other jurisdictions of enabling drivers to obtain a valid drivers license while enabling the Courts to collect unpaid fines from previous violations. If a violator elects to participate in the DDP the jurisdiction issuing the citation collects a $100 fee to offset any related administrative and prosecution cost. Attached to this Staff report is an informational flier prepared by Diversion Solutions on the DDP. The City of Lino Lakes will be the first jurisdiction to offer the DDP in Anoka County. Several other jurisdictions in Anoka County will also be offering the DDP in near future. P86 P87 DDP DRIVING DIVERSION PROGRAM OVERVIEW Driving Diversion Program (DDP) was developed to allow participants to drive legally while paying outstanding citations and • This program is fully managed by Diversion Solutions at no cost to the city or county. • Participant must fulfill state designated requirements necessary to reinstate a participant's driver's license. • Breaks the cycle of repeat offenders who may owe thousands of dollars because they keep driving without a valid license, many times simply to get to work. WHAT IS DDP DDP is an accountability and learning program for participants. • Accountability — The diversion program will be in contact with participants on a monthly or bi- monthly basis until all requirements of the program have been completed (18 months). • Training — The participant must take part in the four hour Self Development Seminar which includes basic life skills, paper work required by state, etc. • Restitution — Offenders are required to pay full restitution on fines and fees as related to the revocation or suspension of participant's drivers' license. Diversion Solutions works directly with DVS. BENEFITS FOR YOUR OFFICE Reduces Recidivism Tracks Participants Reduces Court Case load Reduces Case load Generates income for cities, counties and state Driving Diversion Program I Diversion Solutions 1 1 of 2 DDP DRIVING DIVERSION PROGRAM • P88 • • MINIMUM PARTICIPANT REQUIREMENTS Approved by Department of Vehicle Services (DVS) Approved by Prosecuting Attorney Payment plans on fines and fees Participate in training Acquire and maintain insurance Must not have any major violations while in program PROGRAM INELIGIBILITY • CVO "Criminal Vehicular Operation" • Owing child support without payment plan • Judgments — must be paid to enter program • Fleeing an Officer • Canceled IPS (inimical to public safety) • 5th degree felony • Theft of a motor vehicle • DUI or DWI before hard revocation is finished BACKGROUND During the 2009 legislative session the "License Reinstatement Diversion Pilot Program" (Driving Diversion Program), was approved to run from July 1, 2009 through June 30, 2011. The 2011 legislative session extended the pilot for 2 years. Five cities were chosen for this pilot; St. Paul, Duluth, West St. Paul, South St. Paul, and Inver Grove Heights. New Jurisdictions: Minneapolis, Maplewood, Bloomington, lsanti, Maple Grove, Robbinsdale, Rockford, Medina, Deephaven, Loretto, Woodland, Faribault, Scott County, Goodhue County, Rice County, Steele County and St. Louis County Program became operational as of October 1, 2009. As of 12/31/2011 the program has paid off $1.2 million in fines. The average participant has seven citations with an average balance of $1700. Active (Good Standing) 1577 53.3% Failed to Meet Requirements (Out of Program) 956 32.3% Completed Program (Graduates) 426 14.4% Total Number Accepted into Program 2960 CONTACT Diversion Solutions, LLC 415 Main Street Red Wing, MN 55066 Phone: 1 -651- 385 -4341 Fax: 1-651-385-4343 Email: infcadiversionsolutions.net Driving Diversion Program 1 Diversion Solutions 1 2 of 2 STAFF ORIGINATOR: DATE: TOPIC: VOTE REQUIRED: INTRODUCTION CITY COUNCIL AGENDA ITEM 6A Mary Alice Divine May 29, 2012 Consideration of Resolution No. 12 -44 Accepting a Donation from the Blaine Jaycees for Lino Lakes Blue Heron Days Festival 3/5 The Blaine Jaycees have interest in supporting Blue Heron Days and other city festivals within Anoka County. Staff is seeking a recommendation to accept a donation for Blue Heron Days. BACKGROUND: The Jaycees are making a donation of $6,900 to the festival for the purpose of writing down the cost of Magic Bounce Inflatables wristbands for the Saturday, August 18 event in Lino Park. Magic Bounce, a Lino Lakes company, will be including the world's largest inflatable waterslide with this financial contribution. This contribution will make the family activities at Blue Heron Days more affordable to more families in the community. The Jaycees are also contributing an additional $1,500 to pay for an outdoor movie screen to reinstate the free family movie night. The Jaycees are also contributing $2,000 to assist with continued management of the blue heron rookery in Lino Lakes. RECOMMENDATION Staff is recommending approval of Resolution No. 12 -44 accepting the donations ATTACHMENTS 1. Resolution No. 12 -44 P89 P90 CITY OF LINO LAKES RESOLUTION NO. 12 -44 RESOLUTION ACCEPTING A DONATION FROM THE BLAINE JAYCEES FOR LINO LAKES BLUE HERON DAYS FESTIVAL AND HERON ROOKERY MANAGEMENT WHEREAS, Jaycees around the state of Minnesota are responsible for organizing cormmunity festivals. fundraisers for other nonprofits, and creating opportunities for community members to engage with one another through activities that develop leadership among local young people; and WHEREAS, The Blaine Jaycees have expressed interest in promoting and growing community participation at festivals within the Anoka County area; and WHEREAS, The Blaine Jaycees are donating $6,900.00 to the City of Lino Lakes allocated to promote and grow the Blue Herons Days festival; and WHEREAS, The Blaine Jaycees are donating $2,000.00 to the City of Lino Lakes to assist with management of the Heron Rookery in Lino Lakes; and WHEREAS, The Quad Area Chamber of Commerce is 2012 official financial managers of Blue Heron Days. NOW, THEREFORE BE IT RESOLVED, the Lino Lakes City Council does hereby accept the donation of $6,900.00 for purposes of providing funds to the Quad Area Chamber of Commerce for family oriented activities during Blue Heron Days and $2,000 to the City for management of the blue heron rookery in Lino Lakes. Jeff Reinert, Mayor Julianne Bartell, City Clerk Adopted by the Lino Lakes City Council this 29th day of May, 2012. 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: Whereupon said resolution was declared duly passed and adopted. • • •