HomeMy WebLinkAbout06/04/2007 Council Packet (2)•
•
•
WORK SESSION AGENDA
CITY OF LINO LAKES
Monday
June 4, 2007
CITY COUNCIL WORK SESSION
Community Room (not televised)
5:30 P.M.
1. Hardwood Creek Development Update
2. Comprehensive Plan Update, Goals and Strategies
3. Audit Report (to follow on Friday)
4. Purchase Agreement — Anderson Builders (77th and Lake Drive)
5. Water Projects Update
a. Water Emergency and Conservation Plan
b. Treatment Feasibility Report
c. Utility Rate Study
6. 2007 — 2008 Council Goals (to follow on Friday)
7. VLAWMO Joint Powers Agreement
8. Compensation System — Update on pay equity; 2008 salary discussion
(from Council 5 -14 Council Meeting)
9. Wage Policy for Non -union staff (requested by Reinert & Bergeson)
10. Memorial
June 11 Council Meeting Agenda Review
Adjourn
4-741,k
S�.
CITY COUNCIL WORK SESSION
APPROVED
1 CITY OF LINO LAKES
2 LEADERSHIP WORK SESSION MINUTES
3
4
5 DATE : March 25 - 27, 2004
6 TIME STARTED : 5:30 P.M., March 25, 2004
7 TIME ENDED : 4:30 P.M., March 27, 2004
8 MEMBERS PRESENT : Councilmembers Carlson, Dahl, Reinert, Stoltz and
9 Mayor Bergeson
10 MEMBERS ABSENT : None
11
12 Staff members present: City Administrator, Gordon Heitke; Finance Director, Al Rolek; Public
13 Services Director, Rick DeGardner; Community Development Director, Michael Grochala; Public
14 Safety Director, Dave Pecchia and Consultant Carl Neu.
15
16 AGENDA
17
18 The work session meeting was called to order on Thursday, March 25, 2004 at 5:30 p.m. All council
19 members were present.
20
21 Carl Neu, workshop facilitator, presented and discussed concepts related to how councils function as
22 teams. The Strength Development Inventory (SDI), previously completed by council members, was
23 reviewed and discussed to assess how individual's strengths are used in relating to others and how
24 they change in different conditions.
25
26 The workshop was recessed at 9:30 p.m. until 1:00 p.m. Friday, March 26, 2004.
27
28 The workshop was reconvened by Acting Mayor Donna Carlson on Friday, March 26, 2004 at 1:10
29 p.m.
30
31 Staff present for the remainder of the workshop included City Administrator, Gordon Heitke; Finance
32 Director, Al Rolek, Public Services Director, Rick DeGardner; Director of Administration, Dan
33 Tesch; Community Development Director, Michael Grochala; Public Safety Director, Dave Pecchia.
34 Mayor Bergeson joined the meeting at 1:15 p.m. The remaining Councilmembers were present.
35
36 Workshop facilitator, Carl Neu, continued to present an overview of the concepts and characteristics
37 of higj-Ily effective city councils. The council and management team engaged in an exercise to
38 evaluate interpersonal and rational processes utilized in group decision making.
39
40 The concept of the council — staff partnership together with factors and elements contributing to its
41 effectiveness was reviewed.
42
43 Motion by Councilmember Reinert, seconded by Councilmember Stoltz, to recess the workshop at
44 8:00 p.m., to be reconvened Saturday, March 27, 2004 at 8:00 a.m. The motion passed unanimously.
45
46 Mayor Bergeson reconvened the workshop at 8:15 a.m. All of the Councilmembers were present.
47 Discussions continued regarding the roles of council and staff from the perspectives of: function,
48 performance, and wants and needs. Staff and council identified what was desired and expected of
49 each other.
MARCH 25 -27, 2004
610
CITY COUNCIL WORK SESSION MARCH 25-27, 2004
APPROVED
50
51 Additional discussions addressed the various forums in which the Council operates. Changes were
52 discussed related to the "open mike" agenda item, work session meetings, and the Planning & Zoning
53 Board/council relationship. The need for aligning the council and various advisory boards with the
54 vision and goals and instituting conflict of interest standards were discussed. The need for advisory
55 boards to be "at arms length" from the council and not influenced by councilmembers was discussed.
56 Councilmembers and staff agreed to address the following seven issues:
57
58 1. Revise the study session process.
59
60 2. Revise the Planning and Zoning Commission – City Council Working Relationship.
61
62 3. Align the community and the various boards and commissions to the Council's vision and
63 goals.
64
65 4. Review of the Comprehensive Plan.
66
67 5. Provide more timely information by staff to the city council.
68
69 6. Council will provide guidance on compensation policies to be followed.
70
71 7. A goalsetting session will be conducted at a full-day workshop on May 22, 2004.
72
73 There being no further business, Councilmember Dahl moved to adjoum at 4:30 p.m. Councilmember
74 Carlson seconded the motion.
75
76 Motion carried unanimously.
77
78 These minutes were considered and approved at the regular Council Meeting, September 13, 2004.
79
80
81 � 82
83 Ann Blair, ty Clerk
84
85
86 Transcribed by:
87 Gordon Heitke, City Administrator
88
89
90
91
2
Memorandum
To: Mayor and City Council Members
From: Daniel Tesch, Director of Administration
Date: 30 June 2005
RE: Non -Union Salaries
I apologize in advance for not being able to be with you at your 6 July work session. I have prepared the
following report regarding director and non -union salaries for 2005 that I am sending out under separate
cover in advance of your Wednesday meeting.
At the Council's 2004 goal setting session, concerns about management team compensation was raised.
Among the concerns raised then and subsequently include:
• Salary compression between directors and first line supervisors. This becomes especially apparent
when you factor in first line supervisors are eligible for overtime and directors are not.
• The management skills (supervision, budget, planning) required to handle a growing staff and
community.
• The increasingly complex projects being undertaken by the city.
• The out -of -the- ordinary number of evening meetings when compared to other cities.
• Concerns about employee retention, and the high cost to residents for replacing the
administrator /directors.
• Recouping lost market salary adjustments for certain management positions (2003 budget
reduction) - considering those increases were not lost to union employees.
It was suggested that we are an "above average community" and we want to be able to attract and retain
"above average" employees. Staff was asked to look at benchmark figures above the average. You will
find included in this packet a chart outlining by position, current salaries, the average salary for each
position and what salaries would look like at the 65% percentile. Increases are broken down into an annual
adjustment (Cost of Living) and a market increase. If a salary is already at or above the benchmark, the
employee will receive a 2% annual adjustment only.
The tool the city uses to determine benchmarks is the Stanton Survey. This document is produced annually
and looks at Twin Cities metro cities. We look specifically at Group VI Cities — cities between 10,000 and
25,000 in population. You will find attached a list of those cities, and note that we are approaching the
higher end of this group — approximately the 75th percentile in population.
In addition to salary considerations, this group will receive the same health insurance contributions, ability
to participate in Post - Retirement Health Care Savings Plan and other benefits as all employees.
This information is being sent out as an individual council mailing. Labor negotiations and background
information for all other employee groups are handled internally and not negotiated publicly. We appreciate
your treating this material as you would all other labor relation data.
}
AGENDA i't's M 3 B
STAFF MEMBER Daniel Tesch, Director of Administration
DATE 11 July 2005
SUBJECT Non -Union Salaries
VOTE REQUIRED 3/5
BACKGROUND
Each year the council is requested to consider the salaries of union and non -union employees
unless multi-year union contracts have been settled. The council has previously received
information outlining the recommendation for non -union and management team salaries. The
recommendation is for a two - percent annual adjustment and market adjustment (1 to 7.5 %) if
merited. Each position was matched with positions in the twin cities metro with populations of
10,000 to 25,000.
OPTIONS
1. Approve non -union salary recommendation as presented.
2. Return to staff for reconsideration.
RECOMMENDATION
Number One.
COUNCIL MINUTES JULY 11, 2005
APPROVED
358 Councilmember Carlson suggested on page 5, best practices, it should read "Council retreat" rather
359 than "Council and Staff retreat," for the first one. City Administrator Heitke asked if she was
360 suggesting a change in the objective to eliminate Staff.
361
362 Mayor Bergeson stated he does not think the goal precludes any arrangement. He noted there could
363 be numerous configurations and the objective would cover all of these.
364
365 Councilmember Dahl stated she would like a retreat for Council only and requested the wording be
366 changed. City Administrator Heitke stated some language relates to the budget setting process and a
367 retreat should occur prior to this process.
368
369 Councilmember Dahl moved to adopt Resolution No. 05 -94, Adopting 2005 -2006 Proposed Council
370 High - Priority Goals, Objectives, and Actions with the exception of changing the wording to "Council
371 will establish a date for a retreat before the budget financing process."
372
373 Motion failed for lack of a second.
374
375 Councilmember Reinert moved to adopt Resolution No. 05 -94, Adopting 2005 -2006 Proposed
376 Council High - Priority Goals, Objectives, and Actions. Councilmember Stoltz seconded the motion.
377
378 Mayor Bergeson stated this is an ambitious set of goals and the City would make a good faith effort.
379 He noted that at the work session, a disclaimer had been given stating they would try to follow the
380 goals where feasible. However, some may be unfeasible due to a conflict with another ordinance, etc.
381 or if they are not able to provide resources through the budget process.
382
383 Councilmember Carlson stated she does not believe there are too many goals, but agreed that
384 sometimes a goal may run into conflict with another goal or plan in existence.
385
386 Councilmember Stoltz stated this is a very aggressive set of goals. They are not perfect, but bring
387 accountability to the Staff.
388
389 Motion carried unanimously.
390
391 Resolution No. 05 -94 can be found in the City Clerk's office.
392
393 B. Consideration of Non -Union and Management Team Salaries
394
395 Director of Administration Tesch presented the Staff report, indicating Staff recommends approval.
396
397 Councilmember Carlson asked if Council could receive salaries in dollars in the future. Director of
398 Administration Tesch stated yes.
399
400 Councilmember Stoltz moved to approve non -union and management team salaries. Councilmember
401 Reinert seconded the motion.
402
9
COUNCIL MINUTES JULY 11, 2005
APPROVED
403 Councilmember Carlson expressed concern regarding a possible 9.5 percent increase. She asked if
404 the City would be paying overtime or additional benefits not provided in the past. She added low and
405 middle- incomes pay for this salary increase and she cannot justify it. Director of Administration
406 Tesch stated they are not eligible for overtime and will not be receiving additional benefits but they
407 are in the process of implementing post retirement health insurance for everyone.
408
409 Councilmember Carlson asked if each individual contributes to the post retirement health insurance
410 plan and if the City matches. Director of Administration Tesch stated the plan is like a savings plan
411 for health care and the City does not match.
412
413 Mayor Bergeson stated there is a range and 9.5 percent is the highest. He noted the City needs to
414 move along with inflation and be comparable with wages in similar cities.
415
416 Councilmember Dahl stated 9.5 percent is too open- ended. Director of Administration Tesch stated
417 there are a couple of past salary situations and now the City has an opportunity to make adjustments.
418 He noted the management group has received 1 -2 percent and other groups have received 3 percent.
419 He concluded the City is developing and some salaries have accelerated.
420
421 Councilmember Reinert stated although these are larger increases, the City needs to keep up with the
422 market or staff members will go elsewhere and it would cost the City more to replace these positions.
423
424 Councilmember Stoltz stated the numbers are from a regional organization and are an independent
425 collaboration. He noted Staff is managing the City 24/7 and the City is paying at market. He
426 suggested Council take into account benefits because they do not receive an elaborate package.
427
428 Mayor Bergeson stated information is from survey group 6 and Lino Lakes is towards the higher end
429 in population and workload. He stated the proposal is a target 65th percentile and he thinks this is an
430 appropriate place to be. Mayor Bergeson concluded if a salary is at or above benchmark, that member
431 will receive a 2 percent increase.
432
433 Motion carried. Vote 3:2 Councilmembers Carlson and Dahl opposed.
434
435 C. Authorize Solicitation of Quotes for Civic Complex Energy Conservation Improvements
436
437 City Administrator Heitke presented the Staff report, indicating Staff recommends approval.
438
439 Mayor Bergeson asked if there was a printed motion. City Administrator Heitke stated this item had
440 been added to the agenda on Friday per Councilmember request.
441
442 Councilmember Dahl asked if this is the last item needed to fix the building or would there be more
443 repairs. City Administrator Heitke stated this repair should eliminate the problem.
444
445 Councilmember Carlson asked about the roof leak. City Administrator Heitke stated he informed
446 Public Services Director DeGardner and he is looking into it.
447
10
2008 Draft OPERATING BUDGET
EXPENSES
2007 2006 Bud
6.1 Administrative/ Managerial
6.1.1 Day to day open
6.1.1.1 Office
6.1.1.2
6.1.1.3
Informatio
Insurance
rent, copies, post, tel, supplies
Website maintenance & upgrade
Computer system development
6.1.2.1
Administr
6.1.2.2
6.1.2.3
6.1.3
6.1.4
Administrator
summer intern
Water resources technician
$70, 000
$7,000
$55,000
Training (staff /Board)
Misc. & Cont.
Local Plan Development
Technical Local Plan development
Watershed Plan development
Program & Project Funds
6.3.4
6.3.6
Financial Incentives
Igcation
Lambert Lake (3 hr /mo @$50)
Grass & Rice Lks (1 hr /mo)
Whitaker weir & pond
6.3.8
6.3.8.1
6.3.8.2
Data Analy, - d Mont
6.3.8.3.
6.3.8.4
Citizen's Lake Monitoring
$2,000
$1,000
$7,000
$1,500
Ramsey Co lab work & bio asses $8,500
Lambert Cr. Data collection- equ $2,500
Storm Water Utility update
Total
INCOME
II
12 Fees for review service
Interest
Miscellanous WCA sub grant & other
Contributions*
Stormwater Utility
%
Gem Lake
2.86
Lino Lakes
3.58
North Oaks
28.9
Vadnais Heights
27.63
White Bear Lake
24.12
White Bear Twn
12.91
100
2004 tax value
$72,223,600
$43,278,300
$898,966,100
$828,693,400
$828,082,200
$415,279,400
$3,086,523,000
WS -1
WORK SESSION MEMORANDUM
To: City Council
From: Michael Grochala
Date: June 4, 2007
Re: Work Session Item 1
Hardwood Creek Update
PROJECT STATUS
During the past year staff and the development team have focused planning
efforts of development of the overall transportation system and surface water
management.
Transportation
As previously discussed and agreed upon by Anoka County, Centerville and Lino
Lakes the new CSAH 14/21 st Avenue was proposed to be constructed as a 3/4
intersection with the CSAH 14 reconstruction. A % intersection allows for both
right -in /right -out movements as well as left turns onto 21st Avenue. However, as
our traffic studies have been refined it became apparent that the limitation of
access focuses more traffic onto CSAH 54 and its intersection with CSAH 14.
Following additional traffic modeling and significant discussion with Anoka
County the 21st Avenue /CSAH 14 is being designed as a signalized intersection
with full movements to and from the north from CSAH 14. Southbound 21St
Avenue will be limited to a right -in only with the principle access (signalized)
coming from a new intersection opposite of the southbound I -35E off ramp.
Surface Water Management
Surface Water Management has been the primary topic of discussion over the
past six month with the development team, Rice Creek Watershed District
(RCWD) and the City. The entire site consists of heavily tiled, poorly drained
soils. As such storm water quality, volume, and rate control are critical issues for
the development of the site. The primary discussion have centered around
1
assumptions and extent of overland drainage currently leaving the site. We are
currently working with the watershed district to finalize the design criteria to use
for the site.
Approval Process
Staff has been working with the developer to establish the overall review
process. The PUD process includes both a development stage plan approval
and well as a final stage plan approval. Given the scope of the project, multiple
end users, and the development time frame of 5 -8 years staff is recommending a
process similar to what was done with the Legacy at Woods Edge project. This
would include a master plan approval and establishment of design guidelines at
the development stage approval with final stage plans covering the individual
development proposals. It is anticipated that each development area within the
site may require both preliminary plat and final plat approval following the
development stage approval.
Council Direction
Staff and the development team discussed the approval process with the
Planning & Zoning Board at their April regular meeting. The board was
comfortable moving forward with this process.
Staff is requesting council feedback with regard to the proposed process. Ms.
Kendra Lindahl, representing the developer, with be in attendance to address
council questions.
ATTACHMENTS
1. Concept Plan
•
•
,,, "to
-Af
t qr.
FUTUrEt TRAFFIC
SIGNAL: -
-r•
,... ,,.. „
Possible Future COMMERCIAL
. ,. ,
Road Alignment
....,
OPEN SPA
STORMWATE
MANAGEMEN
•
Concept Land Use Plan
z.m East Lino
ANDWR" Lakes, LLC
XcelEnergr
•
-
300' 600'
•
WS -2
WORK SESSION MEMORANDUM
To: City Council
From: Michael Grochala
Date: June 4, 2007
Re:
Work Session Item 2
Comprehensive Plan Update
Draft Goals and Strategies
PROJECT STATUS
Since the March "Kickoff" meeting the Comprehensive Plan Advisory Panel has
been working on the development of Goals and Strategies that will serve as the
foundation of the planning process. The draft Goals and Strategies represent
the work of the group over the past two months and are based on the 2030
Vision Plan accepted by the City Council in February.
The panel has met four times over the past two months. The first meeting
included an issues forum to identify the biggest issues facing the city and
included a SWOT (Strengths, Weaknesses, Opportunities and Threats) exercise.
The second panel meeting centered on a group discussion over the results of
the SWOT analysis. The panel discussed how future opportunities connect
and /or conflict with one another i.e., job creation and housing. The panel
identified the need for elements of the comprehensive plan to be mutually
supporting.
At the third panel meeting members were presented with a draft of the goals and
strategies based on the 2030 vision plan and their previous discussions. The
panel broke into small groups with each group reviewing all five topic areas; 1)
Community, Residential and Neighborhood Development; 2) Economic and
Commercial Development; 3) Community Amenities and Natural Resources; 4)
Roads and Transportation; and 5) Community Facilities.
The comments received from the advisory panel discussion were incorporated
into the draft document. The draft was then submitted to the City's advisory
1
boards for review and comment. On May 16, the advisory panel met for the
fourth time to complete the draft. Comments received from the advisory boards
were discussed by the panel and incorporated were applicable.
Council Direction
The draft Goals and Strategies, as presented, represent the collective work of
the citizen advisory panel and city advisory boards members. The draft goals
and strategies will serve as the basis for land use decisions as we move forward
into the land use alternatives phase of the process as well as development of the
Comprehensive Plan itself.
John Shardlow and Ciara Schlichting will be present to review the process and
the advisory panels work.
Staff is requesting council comments on the draft Goals and Strategies.
ATTACHMENTS
1. Draft Goals and Strategies
2. Newsletter No. 1
3. Newsletter No. 2
4. Newsletter No. 3
2
DRAFT- Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page I
Community, Residential and Neighborhood Development
Goal 1: Create a unified vision and future for the city, promote a well - planned community,
prevent fragmented development. address the impacts of development and redevelopment on
natural aesthetics and view corridors, and provide balanced land use and connectivity at
ensures the integration of both sides of the regional park.
Strategies:
1. Create a housing development plan that defines the types and locations of housing
development required to meet the community's projected needs.
2. Work closely with neighboring communities to ensure an integrated plan that is
consistent with the Metropolitan Council's requirements and compatible with adjacent
jurisdictions.
3. Ensure the comprehensive plan is kept current and provides a rationale for all decisions
with city -wide implications.
Goal 2: Ensure that zoning and subdivision ordinances and official maps are consistent with the
intent and specific direction provided within the land -use plan.
Strategies:
1. Ensure developers meet the standards specified within the land -use plan and official
controls, including zoning and subdivision ordinances and official maps.
2. Streamline the current permitting and development processes to facilitate the type of
development and redevelopment desired.
3. Coordinate the plans for housing with plans for light industrial and commercial
businesses to balance land uses, serve the quality of life needs of the residential areas,
foster a positive business climate for light industrial and commercial business, and
expand and balance the community's tax base.
4. Ensure compatibility of adjacent land uses.
5. Create a staging plan for future development.
6. Update zoning map to conform to land use map.
pr
re housing dc velopme eo patt e itli e:
accessibility to key community feat
nd natural amenities.'
Strategies:
1. Link trails to parks, lakes, and schools.
2. Establish guidelines for the appropriate inclusion of green spaces, paths, sidewalks, and
other people oriented amenities throughout the city.
3. Ensure commercial development and mixed -use areas are appropriately dispersed
throughout the city.
Goal 4 1 ? tain safe neighborhoods and community areas.
Goal 6: Enhance op .,:- senior housing
DRAFT - Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page 2
Strategies:
1. Maintain and ensure strong community support for the city's fire and police departments.
2. Encourage community involvement in Crime Prevention Programs.
3. Develop neighborhoods with mixed housing styles that promote diversity and attract all
age groups.
lity of affordable and life -cycle housing
Strategies:
1. Work with developers to identify innovative strategies for providing entry -level and life
cycle housing.
2. Use redevelopment tools to revitalize aging residential properties, made possible by
various federal, state, local government, and non -profit programs.
3. Provide expanded opportunities for housing ownership made available by various federal,
state, local government and non - profit agencies.
4. Streamline permitting and development processes to ease the rehabilitation or
improvement of existing homes and reduce unwarranted cost impacts on the price of
entry -level homes.
5. Provide for and designate appropriate areas for high- density and mixed -use development.
Strategies:
1. Complete a detailed citywide senior citizen housing needs study.
2. Develop partnerships with non - profit and private sector groups who assist in the creation
of senior housing.
3. Coordinate development of housing with retail accessibility (restaurants, shops,
groceries).
ere a ent ed -use development in appropriate and designated
akes
Strategies:
1. Ensure commercial and mixed -use development is dispersed throughout the city.
2. Ensure the Comprehensive Plan and official controls allow for mixed -use development,
including higher density residential.
3. Improve the design standards for commercial developments so they are more attractive,
user friendly, and integrated into the surrounding neighborhoods and adjacent areas.
DRAFT - Goals and Strategies
Goal 8: Promote community invohp
Lino Lakes 2030 Comprehensive Plan
Page 3
pi nt:,
Strategies:
1. Provide opportunities for and encourage citizens to participate in public forums.
2. Improve the current public participation process to elicit more citizen involvement.
Strategies:
1. Create design guidelines for new development that are intended to sustain Lino Lakes'
unique qualities.
2. Continue to promote Conservation Development as the City's preferred development
process where applicable.
Goal 10: Promote a unified communti
Strategies:
1. Promote the Town Center Area as the economic and social center of the community to
promote pride and "sense of community" in Lino Lakes.
2. Create, strengthen and maintain the appearance of the city's gateways and key
transportation corridors through streetscapes, design standards, trails, lighting, signage
and other tools.
Goal 11: Maintain existing housing stock to insure a high - quality environment in all residential
°Sorhoods.
Strategies:
1. Enforce necessary codes to ensure the continued compliance and maintenance of the
existing housing stock.
2. Identify methods and options to promote the improvement of the existing housing stock,
and to encourage the rehabilitation or redevelopment of substandard housing
3. Encourage in -fill housing where appropriate.
rdinate transportation !th lank
Strategies:
1. Analyze the traffic generation characteristics of proposed land uses to avoid exceeding
the capacity of local, county, and regional roadways.
2. Consider the impacts to neighborhoods when planning new or upgrading existing
roadways.
DRAFT - Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page 4
Economic and Commercial Development
Goal 1: Expand and dig ersify the city's tax base b
devcloprnent;
fixed -use and nodal
Strategies:
1. Encourage developers to take advantage of opportunities provided by mixed -use and
nodal development design standards especially within designated redevelopment areas.
2. Establish guidelines for the appropriate inclusion of green spaces, paths, sidewalks and
other people- oriented amenities within commercial areas and throughout the city.
3. Ensure commercial development is dispersed appropriately throughout the community
and in designated business development areas.
4. Develop walkable neighborhoods with commercial nodes and amenities for residents.
5. Integrate into neighborhoods those retail and service commercial activities that serve the
neighborhood.
Goal 2: Work wi developers to identify innovative strategies for attracting entry level an
usinesses to Lino Lakes.
snuffler entrepreneurs
Strategies:
1. Encourage new business owners and expanding entrepreneurial businesses to locate here
by offering available financial incentives when consistent with city policy.
2. Work with the current business community, the Chamber of Commerce and the city's
Economic Development Advisory Committee to attract new businesses and expand the
economic success of existing businesses.
3. Promote Lino Lakes' identity as a business friendly city.
Goal 3: Attract and
oarage new light industrial, high tech, business and professional services
enterprises and iaintain at and expand existing businesses in Lino Lakes.
Strategies:
1. Protect designated industrial areas from residential encroachment and marginal land uses
that will preclude the highest economic use of land available for commercial and light
industrial development.
2. Develop strategies and programs to attract high tech and high value industrial and
business and professional services enterprises that have an emphasis on job creation.
3. Encourage high -end business park development designed to attract medical, technology,
and similar industries, which provide quality employment opportunities and have low
service demand for municipal services.
4. Encourage a comprehensive business center with services such as wi -fi access, office
space, copy services, postal and overnight delivery pick up, and telephone services to
DRAFT - Goals and Strategies Lino Lakes 2030 Comprehensive Plan
Page 5
small and start-up entrepreneurial business owners and telecommuters who are able to
share space and costs.
5. Continue to support local business retention and expansion initiatives.
6. Recognize the fundamental linkage between housing and economic development and
work to match housing availability with community employment.
7. Promote the Anoka County Airport as an asset to corporate users.
ent, planned commercial and industrial ex
e to public infrastructure and trasportti
Strategies:
1. Identify key commercial and industrial development opportunities within the City's
planned growth areas in locations with access to major transportation systems.
2. Encourage compact commercial development that will make efficient use of
infrastructure and resources.
3. Require that new commercial, industrial, and institutional developments may only occur
in sewered areas.
4. Promote the rehabilitation and redevelopment of existing commercial facilities by
continuing to pursue and make available various financial programs and assistance.
5. Encourage the success of major regional commercial center which would include various
types of restaurants, shopping, and entertainment venues for both adults and children.
6. Review and clearly define design standards to promote consistent application and timely
approvals for commercial and industrial development.
7. Encourage the use of "Green" building techniques in new development.
Goal 5: Promote Lino Lakes. location \A, ithii1 the metropolitan region as am antage in doing
business.
Strategies:
1. Work to actively market Lino Lakes as a great place to live and work.
2. Collaborate with business support organizations to serve the needs to current and future
businesses.
3. Use available financial incentives (i.e TIF /tax abatements /grants, etc.) to attract
businesses to relocate or start up in Lino Lakes.
1
DRAFT - Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page 6
Roads and Transportation
Goal 1: Plan for and achie
of Lino kes.
ye
Strategies:
1. Develop a transportation plan that will identify and plan for needed public transportation
options and street construction, upgrading, and related funding requirements.
2. Ensure by 2030 that main east /west and north/south transportation corridors are of good
quality and allow for potential, required expansion and upgrades, i.e., widening,
expanded capacity, turn lanes, and accommodating pedestrian and bicycle facilities.
3. Identify and prepare appropriate plans, official controls, zoning and subdivisions
ordinances and regulations, and official maps for land use around identified potential
future interchanges.
4. Work to connect neighborhoods by minimizing the use of cul -de -sacs.
Strategies:
1. Identify potential traffic safety problem areas and adopt plans to lessen risks as traffic
volume increases along these problem stretches and intersections.
rve raffic flow despite increase in traffic numbers.
Strategies:
1. Plan for an expanded and improved road system to accommodate projected increases in
traffic volume accompanying predicted/planned growth and development.
2. Locate high- density housing along our traffic corridors.
3. Ensure, as areas are developed, that development bears the cost of this reconstruction to
the fullest extent possible.
4. Develop mass transit options to serve growing transportation demands.
DRAFT - Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page
Goal 4 ,, A tlxat local s t ets are maintained (or reconstructed to an acceptable level
Strategies:
1. Adopt, fund and steadfastly implement a Comprehensive Pavement Management Plan for
the maintenance and reconstruction, to an optimum level, of the city's streets in a
responsible and cost - effective manner.
2. Periodically review and monitor the effectiveness of the pavement management plan.
Amend policies and /or propose City Charter revisions to insure all components of the
plan are implemented in a responsible manner.
is and roads.
Strategies:
1. Plan for and develop park and ride opportunities that are adjacent to our arterial
roadways.
2. Find ways to minimize unnecessary heavy vehicle traffic.
3. In cooperation with Anoka County and other local units of government pursue state and
federal funding for mass transit.
,, dal 6: Promote
�, yl
alking, transit an
Strategies:
1. Support the planning and development of the established Rush Line transit corridor (rail
and bus) from the central cities through Hugo.
2. Provide local transit opportunities to access the Rush Line corridor.
3. Continue to work with Metro Transit to provide and expand safe, affordable and efficient
public transit.
4. Incorporate, where feasible, bicycle and pedestrian infrastructure and safety standards
when planning changes, additions, or maintenance to roads, sidewalks, bridges, paths, or
other public facilities.
5. Work to physically connect neighborhoods with roads and pedestrian/bicycle links.
6. Encourage sidewalks and separated pathways along all arterial collector, and local streets
in developing residential and commercial areas.
Goal 7 Maintain and c
County, Washington C
transportation system with adjacent communities, Anoka
Council and MnDOT.
Strategies:
1. Use the functional classification system to define and plan existing and new roadways.
2. Develop and utilize access management guidelines in conjunction with Anoka County.
3. Continue to work with surrounding jurisdictions, state and federal agencies to ensure an
integrated transportation system.
DRAFT - Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page 8
Community Amenities and Natural Resources
1. Parks, Trails, Open Space and Recreation
Coal 1: Continue development and maintenance of recreational actin ities that serve the
identified needs of the community and people of all ages, including,; where possible
neighborhood parks, larger multi -use area parks and the regional park.
Strategies:
1. Continue to pursue the development of a multi sports complex either on the city -owned
property at Birch and Centerville Roads or another suitable site.
2. Foster and maintain cooperation between the city and school districts to facilitate joint
use of indoor and outdoor facilities for organized and recreational activities.
3. Utilize the Rice Creek Regional Park as an aesthetic and recreational community amenity
with continued sensitivity to the preservation of biosystems and ecosystems within the
park.
4. Acquire, reserve and develop sufficient park and open space land to fulfill the identified
and projected needs of the present and future population.
5. Continue collaboration with the YMCA and similar organizations to provide recreational
facilities for the entire community.
6. Continue, whenever possible, inclusion of neighborhood parks in future developments
and planned redevelopments.
7. Direct and manage activities in an appropriate manner by balancing the use of
programming activities in the neighborhood parks.
Goal 2: Collaborate
Regional Park watea
y to guarantee and improve public
nal use and enjoyment of the commumty
Strategies:
1. Identify, develop and maintain new public access points to area lakes so that residents
can enjoy these unique recreational opportunities.
2. Ensure the new access points are designed to minimize adverse impacts on lakeshore
quality, water quality and adjacent environmental features: i.e. uplands, etc.
Goal 3: Develop, maintain. and connect the current and proposed trai
and Rice Creek Regional Palk in a manner that preserves and sustain
the City of Liar
natural envir
Strategies:
1. Continue to work with adjacently jurisdictions to achieve interconnectivity among trails.
2. As development occurs, require an interconnected trail system.
DRAFT - Goals and Strategies Lino Lakes 2030 Comprehensive Plan
Page 9
2. Natural Resources and Amenities
Goal 1: Identify, protect and
resources of the community.
Strategies:
1. Pursue a well - defined natural resource restoration and management plan for Lino Lakes.
2. Continue to provide natural resource staff and advisory board.
3. Maintain the partnership of Lino Lakes and Rice Creek Watershed District and other
groups such as Anoka County to maintain the aquatic and upland areas of the city.
4. Establish and fund programs to maintain or improve current green spaces owned by the
city.
5. Where possible, restore damaged or misused natural and ecologically significant areas to
their original state.
6. Require natural space buffers, where appropriate, around wetlands.
Goal 2: Initiate and continue vigorous collaborations and programs to address, restore, and
preserve the water quality of the region's lakes, wetlands and other aquatic assets.
Strategy:
1. Incorporate TMDL (total maximum daily load) limits, when determined, into the City's
Surface Water Management requirements to reduce degradation and improve the quality
of the city's and region's lakes, waterways and other aquatic resources.
2. Collaborate with adjacent jurisdictions and agencies to achieve TMDLs.
3. Land Use Policies and Practices
Goal 1: Ensure that well - planned, quality' residential and
accommodate ±he city s projected growth needs occurs
ances the city's natural resources and amenities.
Strategies:
1. Encourage developers, where appropriate, to use Open Space Design/Conservation
Development Track practices.
2. Extend the Conservation Development principles, to the extent feasible, to business and
commercial development.
3. Ensure the development of the land within the community is done in a way that
consciously preserves its natural resources and amenities.
4. Require wetland functional assessments, based on accepted methodology, on new
development projects to ensure valuable wetlands are preserved to the extent possible.
5. Promote business and commercial development that is conservation conscious,
aesthetically interesting, and recognizes that each individual land use activity contributes
to the total effect on the community's natural resources.
DRAFT - Goals and Strategies Lino Lakes 2030 Comprehensive Plan
Page 10
6. Recognize there are unique lands that the city /residents may not want to be developed:
a. Promote techniques that encourage developers to preserve the unique lands within
their development.
b. Partner with the Rice Creek Watershed District and /or other groups to purchase
unique ecological properties if they become threatened.
c. Develop innovative practices, when appropriate, to acquire unique lands to
prevent development.
d. Promote partnerships with established conservancy groups in order to "save"
these unique lands. Examples: Nature Conservancy.
7. Promote the use of quality and environmentally sound buffer areas between areas with
differing land uses.
8. Continue to use the Alternative Urban Areawide Review (AUAR) process to assess the
impact of development on the city's natural resources and infrastructure.
4. Other Ecological Challenges and Threats
Goal l : Identify and work cooperatively with the state and other local government entities to
develop approaches for addressing potential ecological challenges and threats that could
adversely affect Lino Lakes.
Strategies:
1. Identify and alert residents of potential ecological challenges and threats that can affect
Lino Lakes and the property of residents.
2. Plan and initiate cooperative efforts with the state and other local government entities for
programs that address and may manage these threats effectively.
3. Proactively educate the community and its residents of all ages about the specific actions
they can or may be asked to take in addressing these threats.
4. Continue to encourage and support programs that measure the effectiveness of Best
Management Practices.
DRAFT - Goals and Strategies
Lino Lakes 2030 Comprehensive Plan
Page 11
Community Facilities
Goal 1: Maintain the first -class education that the children of Lino Lakes are receiving, 'while
also providing opportunities for additional education for adults.
Strategies:
1. Work with the three school districts serving Lino Lakes to continue the level of education
that residents have come to expect.
2. Collaborate with the City's three school districts to provide opportunities for and actively
market continuing education programs.
3. Explore opportunities for locating an educational facility within the City that provides
training beyond high school.
Goal 2: Promote the usage, creation. uniqueness of conhinun t °acuities, while also
soliciting creative funding sources.
Strategies:
1. Promote the community green within the Legacy at Woods Edge development as a
gathering place for Lino Lakes' residents and visitors from around the region by
providing music and cultural activities.
2. Work with community groups such as athletic associations and service groups to gauge
and discuss the demand for additional community facilities to be built in Lino Lakes.
3. Collaborate with business partners to help fund additional community facilities.
4. Market the use of community facilities for events such as youth athletic tournaments,
social gatherings, and other community events.
5. Identify and market existing resources that are available for community use.
6. Promote usage of the City's and other community groups' websites, access cable
channels, buildings, and other resources.
7. Continue to work with the Anoka County Library System to establish a regional library in
Lino Lakes.
uality of our lakes and wetlands by managing storm
ies, while reducing pollutant and sediment loadings
quality degradation.
Strategy:
1. Implement the city's Surface Water Management Plan and Storm Water Pollution
Prevention Plan.
DRAFT - Goals and Strategies Lino Lakes 2030 Comprehensive Plan
Page 12
Goal 4: Provide the City s residents and businesses with affordable potable water that is safe and
high quality for daily consumption and lire demand._
Strategies:
1. Provide a low- maintenance, cost - effective water system that meets the long -term needs of
the City's residents and businesses.
2. Provide adequate water pressure for all residents and businesses.
3. Continue working with adjacent communities to provide a cooperative water system for
emergency services.
4. Provide water service for developing areas in a planned manner by constructing new
mains, water towers, wells and water treatment plans.
5. Protect the City's sustainable water supply through conservation by reducing the demand
for water, improving the efficiency of water use, and reducing loss and waste of water.
6. Protect the groundwater source from contamination by implementing the groundwater
protection plan.
Goal 5: Maintain the City's residents and'bustxes with an affordable and safe sanitary sewer
system
Strategies:
1. Provide a low - maintenance, cost - effective sewer system that meets the long -term needs
of the City's residents and businesses.
2. Provide sanitary services to undeveloped areas in a planned manner.
3. Provide for the capacity and extension of sanitary sewer to developed areas of the city
currently serviced by on -site systems.
4. Establish an on -site septic system inspection program to identify potential failing
systems.
5. Where possible, direct public sanitary sewer improvements to areas identified as having
failed on -site systems.
Strategies:
1. Ensure that governmental buildings and services are located so as to offer ease of access
and minimal response time.
2. Provide for adequate maintenance of the City's buildings and equipment and for their
orderly replacement.
3. Plan for necessary new or expanded public facilities through an annual capital
improvement program.
4. Hold public buildings to high architectural standards to create a sense of community
identity, ensure land use compatibility, and to serve as examples for private development.
I L)N
Spotlight on 2030 March 27,
Issue 200 1
Advisory Panel lists issues
during SWOT exercise
Below are the top responses identifying
strengths, weaknesses, opportunities
and threats in Lino Lakes. The number
of votes received is shown next to each
response.
Strengths
• Natural amenities (parks, open space,
lakes) - 18
• Location (dose to economic engines
Mpls /St. Paul) - 14
• Access to I -35E and I -35W - 13
• Conservation development - 6
• Sense of unique, small town community - 4
Weaknesses
• Commercial and industrial development
(lack of tax base, small businesses, bed
room community) - 26
• Lack of community identity (no social,
economic center, lack of community
gateways) - 12
• Deteriorating road system - 6
• Lack of diversified housing - 5
• City Charter - 4
Opportunities
• Conservation development - 13
• To have a novel plan - 9
• Location - 9
• AUAR process for comprehensive
planning - 7
• Amend City Charter - roads - 6
• Mass transit - 6
Threats
• Business climate - 16
• Water quality, pollution - 13
• Transportation issues - 9
• Private property rights - 5
• Failure to consistently implement plans - 5
Advisory Panel discuss
issues facing Lino Lakes
Input to be used to create city's goals and
policies for the 2030 Comprehensive Plan
In an effort to make the city's 2030
Comprehensive Plan citizen - driven,
an Issues Forum was conducted on
March 21 at Lino Lakes City Hall. The
2030 Comprehensive Plan Advisory
Panel spent the evening discussing
and wrestling with the biggest issues
facing the city currently.
To begin the meeting Ciara
Schlichting, of the planning consulting
firm Bonestroo, gave an introductory
presentation. Ciara Schlichting
described what a comprehensive plan
is, and why it is important to plan
for the future. Also included in the
presentation was information about
the Advisory Panel and how it was
selected. For the full presentation go
to the city's website at www,ci.lino-
lakes.mn.us.
At that point the Advisory Panel
formed smaller groups to discuss their
A member of the Advisory Panel
votes on his top issues in Lino Lakes.
thoughts about the top issues facing
Lino Lakes. A SWOT exercise was then
conducted. SWOT stands for Strengths
- Weaknesses - Opportunities - Threats.
Citizens were directed to think about
Lino Lake's strengths and weaknesses,
then to think about what opportunities
and threats the city faces in the future.
Getting thoughts out into the open
helps citizens see what kind of city
they have today and where they would
like it to go over the next 20 years.
The groups spent about 40 minutes
discussing all of these issues with each
other. After the discussion period,
Ciara Schlichting moderated a group
discussion where each group took
turns sharing their thoughts from the
SWOT exercise.
Every group contribution to the SWOT
exercise was written down and hung
up on the wall. The participants were
invited to vote on their top three
issues in each category,
The sidebar to the left shows the
issues that received the most votes
from the people at the forum. These
issues will be utilized to shape the
city's goals and polices, which is the
next step of the 2030 Comprehensive
Plan.
City of Lino Lakes
Michael Grochala,
Community Development Director
600 Town Center Parkway
Lino Lakes, MN 55014
michael .grochala @ci.lino - lakes.mn.us
Next step: The Advisory Panel will meet on
April 4 to discuss draft goals and policies.
If you have questions or comments, please contact:
compplan2030 @ci.lino- lakes. mn. us
Spotlight on 2030
April 13, 2007
Issue 2
Advisory Panel utilizes meeting to
explore and confer over important issues
Panel spent almost two hours sharing, listening and discussing issues that
they feel are important to the City of Lino Lakes' future
The 2030 Lino Lakes Comprehensive Plan Advisory Panel spent
the evening of April 4th at City Hall discussing and wrestling
with some of the biggest topics and issues facing Lino Lakes. To
begin the meeting Ciara Schlichting, of the planning consulting
firm Bonestroo, reported back the results of the SWOT exercise
that was conducted on March 21st. This exercise let advisory
panel members state what they thought the strengths,
weaknesses, opportunities, and threats were in Lino Lakes.
After the results had been reported back a discussion was
held that lasted almost two hours where a wide range of
topics were discussed. The Advisory Panel discussed how
future opportunities connect and /or conflict with one another
- job creation and housing, transportation and economic
development, transportation and housing, and conservation
development and housing. Some of the topics included:
housing conditions, the Metropolitan Council's definition of
affordable housing, redevelopment opportunities, conservation
development, job growth, and business retention and
expansion. This discussion afforded the Advisory Panel a chance
to express their opinions and to hear different view points on
the various topics that are important to the City's future. Also
the Advisory Panel was able to hear what city staff is currently
doing to address many of these issues already, while also
learning what limitations the City faces when trying to solve
some of the more complex subjects.
This discussion is feeding the creation of goals and strategies
for the 2030 Comprehensive Plan. The Advisory Panel will be
continuing its work on the goals and strategies for Lino Lakes
at its April 18th meeting. For more information of the 2030
Comprehensive Plan please visit www.ci.lino- lakes.mn.us.
Below is a list of topics that were discussed during the Advisory Panel meeting. The topics are organized by the
categories from the City's 2030 Vision Plan with Community Facilities added. The Panel ran out of time to discuss
Community Assets and Natural Resources.
Community, Residential
and Neighborhood
Development
- Redevelopment/lnfill
- Rehab and maintenance of
housing
- Tying together transportation
and residential uses
- Conservation development
and affordable housing; How
will it work together?
- Accommodating
affordable housing
- Metropolitan Council
mandates
Economic and Commercial
Development
- Proactive economic
development
- Business retention and
expansion
- Housing -jobs balance
- Capturing local dollars "On
Our Way Home"
- Marketing all assets; income,
businesses
- How does industrial,
commercial, and residential
development all work
together?
Roads and Transportation
- Light rail transit
- Multiple modes of
transportation
- Walkable communities
- Planned roads
- Coordination with County
Community Facilities
- Continuing education
- Post secondary
education (i.e. Minnesota
School of Business)
- Niche facility? Band shelter,
theater, fountain - Need for
community center?
- Community facilities as
economic generator
- Athletics
- Partner with large
corporations
City of Lino Lakes
Michael Grochala,
Community Development Director
600 Town Center Parkway
Lino Lakes, MN 55014
michael.grochala @ci.lino - lakes.mn.us
If you have questions or comments, please contact:
compplan2030 @ci.lino- lakes.mn. us
Spotlight on 2030
May 11, 2007
Issue 3
Welcome
to
World Cafe
Advisory Panel works on Goals
and Strategies during World Cafe
Panel spent their evening working in small groups
with different table themes from around the world
The 2030 Lino Lakes Comprehensive Plan Advisory
Panel met on the evening of April 18th to discuss
Goals and Strategies for the City of Lino Lakes.
The draft Goals and Strategies are based on the
2030 Vision Plan and discussions at the March
21st and April 4th Advisory Panel meetings.
This meeting had a unique flavor. A World Cafe
was held where the Advisory Panel sat in small
groups to discuss the Goals and Strategies in
five topic areas. Each table had a theme based
on a country from around the world. Tables
were decorated with the flags and maps of the
countries with a small treat that was symbolic of
each country.
This input was used to modify the next draft of
Goals and Strategies. The Advisory Panel's next
meeting will be on May 16th to continue its
discussion on Goals and Strategies. Below is a
summary of the discussions that were expressed
by the table hosts at the end of the evening.
Community, Residential and
Neighborhood Development
Much of the discussion focused on affordable and
lifecycle housing and where it would go and how
the city could accomplish this goal.
Economic and Commercial
Development
The table talked about the need for financial
incentives for business retention and expansion.
Also, the need for a market specialist was
discussed among other ideas for the city to
become more business friendly.
ml Community Amenities and Natural
Resources
Common sense should be used to conserve
natural resources. Lino Lakes is an attractive
place to live because of the environment, but a
balance between natural resource conservation
development will need to be found.
In Roads and Transportation
An effort should be made to connect
neighborhoods while balancing safety with traffic
movement. Also, new development should be
integrated with the transportation network.
PM Community Facilities
Many of the goals and strategies were common
sense, like keeping the water supply safe.
Members of the Advisory Panel met in small groups to discuss Goals and Strategies on
April 18th at Lino Lakes City Hall.
City of Lino Lakes
Michael Grochala,
Community Development Director
600 Town Center Parkway
Lino Lakes, MN 55014
michael.grochala @ci.lino- lakes.mn.us
If you have questions or comments, please contact:
compplan2030@alino-lakes.mn.us
WS -3
WORK SESSION MEMORANDUM
STAFF ORIGINATOR Al Rolek
MEETING DATE June 4, 2007
TOPIC 2006 Audit Report
Darwin Viker and Brock Geyen of Larson, Allen, Weishair & Company will be in attendance at the
meeting to distribute the 2006 Annual Financial Report and provide an overview of the City's
financial statements, present the auditor's management analysis and answer any questions you
may have with regard to the financial condition of the City.
The 2006 annual audit was undertaken by the City's auditors, Larson, Allen, Weishair &
Company, LLP, earlier this year, with field work being completed in late March. 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 2006 presented fairly, in all material respects, the financial position of the
City as of December 31, 2006. 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 2005 Comprehensive Annual Financial Report. We believe that the report issued
for 2006 continues to uphold the standards of reporting excellence that this prestigious award
represents.
The presentation at the work session will be comprehensive and is intended to provide the
opportunity for council members to ask any questions or make comments about the audit report
and the state of city finances. Mr. Viker and Mr. Geyen will also give an abbreviated presentation
at the regular City Council meeting on June 11, 2007, and the staff recommends that the City
Council formally, by motion, accept the 2006 Annual Audit Report at that time.
CITY OF LINO LAKES, MINNESOTA
OTHER AUDITOR REPORTS
YEAR ENDED DECEMBER 31, 2006
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
DECEMBER 31, 2006
Report on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an
Audit of Financial Statements Performed in Accordance
with Governmental Auditing Standards
Report on Minnesota Legal Compliance
Other Required Auditor Communications
Management Letter
New Accounting and Reporting Standards
New Auditing Standards
Page
1 -2
3
4 -6
7 -11
12
15
LarsonAlleri
CPAs, Consultants & Advisors
www.larsonallen.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 as
of and for the year ended December 31, 2006, which collectively comprise the City's basic financial
statements and have issued our report thereon dated May 30, 2007. 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.
Internal Control Over Financial Reporting
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 and not to provide an opinion on the 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 the internal control over financial reporting was for the limited purpose described in
the preceding paragraph and would not necessarily identify all deficiencies in internal control over
financial reporting that might be significant deficiencies or material weaknesses. However, as
discussed below, we identified a certain deficiency in internal control over financial reporting that we
consider to be a material weakness.
A control deficiency 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
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with U.S. generally accepted accounting principles such that
there is more than a remote likelihood that a misstatement of the City's financial statements that is more
than inconsequential will not be prevented or detected by the City's internal control over financial
reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that
results in more than a remote likelihood that a material misstatement of the financial statements will not
be prevented or detected by the City's internal control.
LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
INTERNATIONAL
During the course of the audit, we identified and proposed journal entries related to the year -end close-
out process. The absence of a complete control procedure or process in this area is considered a
material weakness because the potential exists that a material misstatement of the financial statements
could occur and not be prevented or detected by the City's internal control processes
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.
We noted certain other matters that were reported to the management of the City in a separate letter
dated May 30, 2007.
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 byanyone other than these specified parties.
Austin, Minnesota
May 30, 2007
(2)
lowveya L G�
LarsonAllen, LLP
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
LarssnAllen
CPAs, Consultants & Advisors
www.larsonallen.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, 2006, which collectively comprise the City's basic financial
statements and have issued our report thereon dated May 30, 2007.
We conducted our audit in accordance with U.S. generally accepted auditing standards, 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
Local Government, 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 Local Government 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.
Austin, Minnesota
May 30, 2007
(3)
LarsonAlien, LLP
IM % I A LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
INTERNATIONAL
Lars•nAllen
CPAs, Consultants & Advisors
www.Iarsonallen.com
OTHER REQUIRED AUDITOR COMMUNICATIONS
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
Dear Committee Members:
We have audited the financial statements of the governmental activities, business -type activities, each
major fund, and the aggregate remaining fund information of the City of Lino Lakes, Minnesota for the
year ended December 31, 2006, which collectively comprise the City's basic financial statements and
have issued our report thereon dated May 30, 2007. 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 January 4, 2007, our responsibility, as described by
professional standards, is to plan and perform our audit to obtain reasonable, but not absolute,
assurance that the financial statements are free of material misstatement and are fairly presented in
accordance with U.S. generally accepted accounting principles. Because an audit is designed to
provide reasonable, but not absolute assurance and because we did not perform a detailed examination
of all transactions, there is a risk that material misstatements may exist and not be detected by us.
As part of our audit, we considered the internal control of the City of Lino Lakes. Such considerations
were solely for the purpose of determining our audit procedures and not to provide any assurance
concerning such intemal 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.
Other Information in Documents Containing Audited Financial Statements
Our responsibility for other information in documents containing the City of Lino Lakes financial
statements, including the supplementary information, does not extend beyond the information identified
in our report on the financial statements, and we have no professional responsibility to perform audit
procedures on such other information.
(4)
LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
INTERNATIONAL
Significant Accounting Policies
Management is responsibility for selection and use of appropriate accounting policies. In accordance
with the terms of our engagement letter, we will advise management about the appropriateness of
accounting policies and their application. The significant accounting policies used by the City of Lino
Lakes are described in Note 1 to the financial statements. No new accounting policies were adopted
and the application of existing policies was not changed during 2006. We noted no transactions entered
into by the City during the year that were both significant and unusual, and of which, under professional
standards, we are required to inform you, or transactions for which there is a lack of authoritative
guidance or consensus.
Accounting Estimates
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, 2006.
Estimated current portion of compensated absences payable — Management's estimate of the
amount of the year -end compensated absences payable balance to be taken by employees
within one year of December 31, 2006 is based on historical trends and anticipated leave time
activity.
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.
Audit Adjustments
For purposes of this letter, professional standards define an audit adjustment as a proposed correction
of the financial statements that, in our judgment, may not have been detected except through our
auditing procedures. An audit adjustment may or may not indicate matters that could have a significant
effect on the City's financial reporting process (that is, cause future financial statements to be materially
misstated). We proposed audit adjustments during the course of our audit that were material to the
financial statements. In our judgment, the adjustments we proposed, whether recorded or unrecorded
by the City, either individually or in the aggregate, indicate matters that could have a significant effect on
the City's financial reporting process.
Management did not identify and we did not notify them of any uncorrected financial statement
misstatements.
(5)
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.
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 Citys 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.
Issues Discussed Prior to Retention of Independent Auditors
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.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing our audit.
This report is intended solely for the use of the Finance Committee, City Council, 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.
Austin, Minnesota
May 30, 2007
(6)
LarsonAllen, LLP
LarssnAllen
1.1.1.
CPAs, Consultants & Advisors
www.larsonallen.com
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
In planning and performing our audit of the financial statements of the City of Lino Lakes, Minnesota as
of and for the year ended December 31, 2006, in accordance with auditing standards generally
accepted in the United States of America, we considered the City's internal control over financial
reporting (internal control) 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. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and would not necessarily identify all deficiencies in internal control that might be significant deficiencies
or material weaknesses. In addition, because of inherent limitations in internal control, including the
possibility of management override of controls, misstatements due to error or fraud may occur and not
be detected by such controls. However, as discussed below, we identified one deficiency in internal
control that we consider to be material weaknesses.
A new audit standard, Statement on Auditing Standards 112 (SAS 112), Communicating Internal
Control Matters Identified in an Audit, is effective this year and states that "a control deficiency 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 misstatements on a timely basis."
The standard further states, "a significant deficiency is a control deficiency, or a combination of control
deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report
financial data reliably in accordance with generally accepted accounting principles such that there is
more than a remote likelihood that a misstatement of the entity's financial statements that is more than
inconsequential will not be prevented or detected by the entity's internal control."
The new standard (SAS 112) further states that, "a material weakness is a significant deficiency, or a
combination of significant deficiencies, that results in more than a remote likelihood that a material
misstatement of the financial statements will not be prevented or detected by the entity's internal
control."
Material Audit Adjustments - Internal Control over the Financial Reporting Process
Management is responsible for establishing and maintaining internal controls, including monitoring, and
for the fair presentation in the financial statements in accordance with U.S. generally accepted
accounting principles.
Management is also responsible for the accuracy and completeness of all financial records and related
information. Their responsibilities include adjusting the financial statements to correct material
misstatements.
�w LarsonAllen LLP is a member of Nexia International, worldwide network of independent accounting and consulting firms.
INTERNATIONAL
As part of the audit, we proposed the following entries:
- Reclassify bond proceeds in the Water Fund.
Reclassify refunding debt service expenditures.
Adjust accrued interest payable in the Water Fund.
To record a delinquent special assessment receivable and offsetting deferred revenue.
- To reclassify new bond issue costs and record 2006 amortization of bond issue costs in the
Water Fund.
To adjust net assets classification, Invested in Capital Assets Net of Related Debt in the
business -type funds.
The above entries relate to internal controls over the year -end close -out process. The absence of a
complete control procedure or process in this area is considered a material weakness because the
potential exists that a material misstatement of the financial statements could occur and not be
prevented or detected by the City's internal control processes.
During the course of our audit, several items came to our attention that we feel could be addressed by
the City of Lino Lakes to more efficiently run the City's operations or improve its internal controls. We
herein submit the following suggestions to the City of Lino Lakes for their consideration.
Auditor Comments:
Capital Project Deficits
The financial statements for the capital project funds are presented in Statements 3, 5, 12 and 13 of the
2006 Annual Financial Report. As of December 31, 2006, three of the capital project funds have deficit
fund balances equaling a combined deficit of $783,556. This compares to five capital project funds with
a combined deficit fund balance of $859,840 as of December 31, 2005. We would like to recognize the
significant improvements made related to fund balance deficits over the past three years. Of the three
remaining funds with a deficit, one is very typical for any city operating a TIF fund (TIF 1 -11), one is
simply a timing difference between expenditures and the related MSA funding source (CSAG 14/8
Reconstruction Project), and the last has specifically been addressed by the Council and a plan is being
implemented to reduce the deficit over the near future (Dedicated Parks).
SAC Revolving
The SAC Revolving Fund was established in 1990 to account for a refund from the MCES (formerly
MWCC) of past SAC charges which were paid by residents that had not hooked up to the sewer
system.
A summary of financial activity of this fund is as follows:
Revenue
SAC refund
Investment earnings
Total revenue
Expenditures:
Refunds
Fund balance - December 31, 2006
(8)
Prior
Years 2006 Total
$ 368,816 $
263,155 15,657
631,971 15,657
$ 368,816
278,812
647,628
$ 259,994 $ 334,244 594,238
$ 53,390
1
1 During 2006, the City Council approved a policy to return SAC plus interest to all affected property
owners. Those property owners that have access to City sewer service may return the refund to the City
provided they connect by December 31, 2007. The City will pay the SAC charge for those property
' owners. Any such property owner not connected by the end of 2007 shall be refunded the unused SAC
plus interest after December 31, 2007. The SAC liability will be entirely abated by December 31, 2007.
Area and Unit Charqe Fund
On January 11, 1988, the City Council approved Resolution 1 -88, which established the Area and Unit
Charge Fund for the City. The purpose of this fund is to collect various area and unit charges to be used
' to meet debt payments. Before October 1 of each year, the City estimates the required transfer needed
to meet debt payments for the subsequent year. In December, these estimated amounts are transferred
to the various debt funds. We recommend that the City continue to closely monitor actual versus
1 projected area and unit assessment collections to assure that debt payment requirements will be met.
Designations of balances required for debt service is necessary to define discretionary construction
1 balances available to the City. The financing plan for the following bond issues have pledged area and
unit charges for the repayment of debt service:
•
1 Improvement and Utility Bonds of 2004A
• Improvement Refunding Bonds of 1999A (Paid off in full during 2006)
• Water Revenue Bonds of 1999B
1 • Water Revenue Bonds of 1996B
The Improvement and Utility Bonds of 2004A have future debt service requirements (principal and
interest) totaling $1,633,469.
1 During 2006, a transfer of $359,680 was made to the Improvement Refunding Bonds of 1999A debt
service fund.
1 The Water Revenue Bonds of 1999B and 1996B have future debt service requirements totaling
$230,971 and $2,272,716 (principal and interest), respectively. The City annually transfers amounts
' from the Area and Unit Charge Fund to the Water Fund sufficient to help cover the debt services of
these bonds. During 2006, a transfer of $299,725 was made to the Water Fund. It is the City's intention
to repay the Water Revenue Bonds of 1999B and 1996B with revenues of the Water Fund. If revenues
are not sufficient to meet the debt requirements, funds will be transferred from the Area and Unit Charge
Fund.
In addition to the transfers above, the Area and Unit Charge Fund transferred $121,000 to the
1 Improvement Refunding Bonds of 2003A Fund and $333,265 to the Improvement Bonds of 1998A for
debt service requirements.
DEBT SERVICE FUNDS
Debt service funds are a type of governmental fund used to account for the accumulation of resources
for the payment of principal and interest on general obligation debt (other than enterprise fund debt).
Debt service funds may have one or a combination of revenue sources pledged to retire debt including
property taxes, tax increments, special assessments and area and unit charges.
1
1
1 (9)
The diverse nature of the type of debt included in the same fund type requires careful analysis to
determine the adequacy of the fund balance and projected fund balance. The following schedule
extracts information from Exhibits 2 and 3 of the 2006 Annual Financial Report to assist in this analysis.
The following schedule compares outstanding debt with assets pledged for debt retirement. This
comparison provides a means to judge (at least on a preliminary basis) the financial position of each
individual debt service fund.
December 31, 2006
Fund
Fund Description Balance
General Debt:
Certificates of Indebtedness
Lease Revenue Bonds of 1998A
Public Project Revenue Bonds 1999C
Tax Abatement Bonds 2006C
Utility Revenue Bonds 2006D
CIP Refunding Bonds 2006E
Special Assessment Debt:
Improvement Bonds of 2002A
Improvement Bonds of 2002B
Improvement Bonds of 2003A
Improvement Bonds of 2003B
Improvement Bonds of 2004A
Improvement Bonds of 2005A
Refunding Imp. Bonds of 2005B
Deferred
Revenue
Total
Deferred
Tax
Levies
Total
Resources
Available
Remaining
Debt Service
Scheduled
$ 99,567 $ 4,681 $ 104,248 $ 552,798 $ 657,046 $ 526,474
429,172 5,424 434,596 495,057 929,653 942,093
342,770 2,062 344,832 334,079 678,911 422,689
70,926 70,926 3,826,438 3,897,364 3,712,810
51,608 141,334 192,942 192,942 716,286
50,549 - 50,549 4,094,370 4,144,919 3,929,300
$ 1,044,592 $ 153,501 $ 1,198,093 $ 9,302,742 $ 10,500,835 $ 10,249,652 $ 251,183
Over
(Under)
Funded
$ 130,572
(12,440)
256,222
184,554
(523,344)
215,619
$ 434,031 $
1,162, 501
29,734
97,665
303,496
585,551
335,382
$ 2,948,360 $
111,656 $ 545,687 $ 42,698 $ 588,385
543,741 1,706,242 - 1,706,242
241,834 271,568 - 271,568
46,936 144,601 174,417 319,018
374,909 678,405 1,766,686 2,445,091
5,117,834 5,703,385 7,987,338 13,690,723
385,560 720,942 4,253,617 4,974,559
6,822,470 $ 9,770,830 $ 14.224,756 $ 23,995,586
$ 387,334
1,891,316
1,439,384
275,077
1,633,469
7,940,409
4,514,408
$ 18,081,397
$ 201,051
(185, 074)
(1,167,816)
43,941
811,622
5,750,314
460,151
$ 5,914,189
Note: Deferred revenue in the above table does not include the future scheduled "interest portion" of the
adopted assessment rolls. The 2OO4A Improvement Bonds also include a pledge from the Area and
Unit Fund that has not been included above.
The above table provides a means for the monitoring the status of the debt service funds. For the
General Debt funded solely by property taxes, it appears that there are adequate planned levies to retire
the debt when the future lease revenues scheduled to be received from the school district are included.
While in total the City has a surplus of total resources available over remaining scheduled debt service
based on the calculation above, certain individual funds are operating at a deficit. These deficits will
need to be funded by future adopted assessment rolls, special assessment levies, investment earnings,
transfers from other funds, property taxes or other available means.
Factors to consider when analyzing debt service funds:
• Are all the anticipated assessment rolls being adopted as soon as appropriate?
• Have all the planned financing sources been identified, such as pledged amounts from the area and
unit fund or future MSA funds?
• Are there significant "prepayments" received from property owners? In the current investment
environment, will the earnings the City will receive on these prepayments be lower than the interest
rate that was being charged on the adopted assessment roll?
The Area & Unit Fund is committed to the debt service of some special assessment bonds as well as
toward the water revenue bonds. The City's five -year operating plan addresses the above issues and
therefore, this comment is simply a reminder of the extent that repayment of certain debt is based on
pledged sources from the Area and Unit fund.
(10)
Budget Appropriations
Each year the City adopts an annual budget for the general fund. Each department receives an
appropriation based upon detailed budget estimates for individual expenditure accounts. Department
heads have the ability to transfer appropriations within a department. This can be helpful and improves
flexibility in meeting department needs as they change during the year. However, such a policy can
lead to unnecessary or unauthorized expenditures. For example, equipment purchases.
We suggest the City review this policy and consider adding controls on the amounts that can be
transferred within a department without bringing it to the City Council for approval. These controls could
include dollar limits, restrictions on the types of purchases or getting the approval of someone in
administration.
Developer Escrow Accounts
The City maintains an Agency Fund to account for the activity related to developer escrows. It is our
understanding that developers deposit an escrow prior to a project beginning and that certain costs may
be applied against this escrow. We noted that there are several escrow accounts that carry a "negative"
balance (which represents an additional receivable balance from the developer) or have remained idle
from the prior year. Efforts were made during 2006 by the City to reconcile negative and idle accounts
with the related developers. We recommend that the City continue this process.
Conclusion
We welcome the opportunity to discuss the points mentioned in this letter or any other accounting and
procedural issues in order to coordinate our efforts with you, the mutual objective being the
development of more effective accounting procedures for the City. We understand that some of the
aforementioned points are in the process of implementation or may already have been implemented;
however, these points are noted so that effective follow -up can be accomplished.
We sincerely appreciate all the courtesies and cooperation extended to us by you and the staff of the
City, and thank you for the opportunity to be of service to you. We look forward to working with you in
the future.
This report is intended solely for the use of the Finance Committee, City Council, 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.
LarsonAllen, LLP
Austin, Minnesota
May 30, 2007
New Accounting and Reporting Standards
Economic Condition Reporting – The Statistical Section (GASB Statements No. 44)
This statement is effective for periods beginning after June 15, 2005 and therefore, was implemented by
the City for the year ended December 31, 2006. The provisions of this statement significantly changed
the content and presentation of the information in the statistical section of the City's Comprehensive
Annual Financial Report (CAFR).
Other Post - Employment Benefits (GASB Statements No. 45)
In the past, most governmental employers offering post employment benefits accounted for them on a
pay -as- you -go basis. However, the Governmental Accounting Standards Board (GASB), in July 2004,
issued Statement No. 45, Accounting and Financial Reporting by Employers for Post employment
Benefits Other Than Pensions, which will make the pay -as- you -go accounting for these benefits a "thing
of the past ".
Why the change in position by the GASB, you ask? The answer is Tess than nebulous— frequency of
occurrence, significance, and disparity. Post employment benefits have become more prevalent in the
governmental arena as a means of attracting and retaining talented employees, as a result of
legislation, or a combination of the two. Post employment benefits may also comprise a significant cost
to the employer, especially if the benefits involve providing healthcare coverage after separation from
active employment. Further, these benefits represent a form of compensation, the cost of which should
be recognized over the period of time that an employee earns the benefit. Disparity in practice
developed as some governmental employers simply followed the pay -as- you -go accounting whereas
others opted to report an accrual -basis liability on their financial statements by following the provision of
Financial Accounting Standards Board Statement No. 106, Employers' Accounting for Postretirement
Benefits Other Than Pensions, which applies to the private sector.
Several bridges must be crossed on the path to adopting GASB Statement No. 45. First, the other post
employment benefits or "OPEB" benefits must be identified. Simply speaking, OPEB benefits under the
context of the new GASB standard are in essence any type of benefit provided to an employee over a
period of time after their separation from service, not necessarily retirement, and obviously not limited to
healthcare benefits.
Another important aspect is determining the "substantive plan ". The substantive plan is the employers'
and the employees' mutual understanding of the OPEB benefit, not necessarily what is written down. In
fact, the OPEB plan may not have been previously written down at all! Then one must determine
whether the substantive plan is a defined contribution plan or a defined benefit plan:
• a defined contribution OPEB plan, under GASB Statement No. 45, is "....plan having terms that
(a) provide an individual account for each plan member and (b) specify how contributions to an
active plan member's account are to be determined, rather than the income or other benefits the
member or his or her beneficiaries are to receive at or after separation from employment." This
is similar to a 401(k) plan or a 403(b) plan.
(12)
Other Post - Employment Benefits (GASB Statements No. 45) (Continued)
• conversely, a defined benefit OPEB plan is one "...having terms that specify the benefits to be
provided at or after separation from employment. These benefits may be specified in dollars (for
example, a flat dollar payment or an amount based on one or more factors such as age, years of
service and compensation), or as a type or level of coverage (for example, prescription drugs or
a percentage of healthcare insurance premiums)."
The third step is determining the OPEB liability. The OPEB liability for a defined contribution is simply
the unpaid contractually required payment, similar to an unpaid invoice. On the other hand, the OPEB
liability for a defined benefit pension plan is the cumulative unpaid or unfunded annual required
contribution or "ARC ", which will require an actuarial analysis.
For a defined benefit OPEB plan, the manner of funding the OPEB liability is an important consideration.
Under the new GASB standard, an OPEB liability will only be considered as funded to the extent that
assets are transferred to an irrevocable trust for the specific benefit of plan members (i.e. covered
employees) and their beneficiaries. Assets held in an irrevocable trust can be reported in fiduciary
financial statements and thus excluded from the employers' government -wide financial statements.
Employer assets that are simply "earmarked" to provide for OPEB benefits but that could otherwise be
re- directed to other uses are not considered by the GASB as funding of the OPEB liability. Therefore,
these earmarked assets continue to be reported in the government -wide financial statements. Said
another way, if the intended assets are not held in an irrevocable trust, the OPEB plan is considered
unfunded.
Recognizing the complexity of the new requirement, the GASB allowed for a phased -in implementation
depending on the employers' size. For instance, the effective date for implementing the OPEB standard
is for the first fiscal year beginning after December 15, 2006, 2007 or 2008 depending on whether an
employer was a phase 1, 2, or 3 implementer of GASB Statement No. 34, respectively. Based on this
schedule, implementation for the City would be required for the year ended December 31, 2008.
Given the time allowed before the required implementation dates, there are some important actions and
considerations that employers should initiate. First, the employer will need to understand the substantive
plan, and would be far the wiser to get it in writing as a formal plan agreement. Qualified and reputable
attorneys may need to be engaged for this task. Second, if the OPEB benefit is structured as a defined
benefit plan, as opposed to a defined contribution plan, the employer in all likelihood will need to engage
an independent actuary to measure the liability. Once the attomeys and the actuaries are engaged, the
employer would be wise to study several ad -hoc scenarios —for example, changing assumptions for
contribution rates, discount rates, demographics of the covered employee group, duration of coverage,
prospective vs. retroactive implementation, etc. —and evaluate the effects on their financial statements.
While Statement No. 34 was the most significant accounting standard to be issued by the GASB in the
last 20 years, Statement No. 45 is a close second. However, the GASB has allowed a generous
amount of time before the required implementation date. Use it vvisely!
Net Assets Restricted by Enabling Legislation (GASB Statements No. 46)
This statement is effective for periods beginning after June 15, 2005 and therefore, was implemented by
the City for the year ended December 31, 2006. The provisions of this statement require that limitations
on the use of net assets imposed by enabling legislation be reported as restricted net assets.
(13)
Accounting for Termination Benefits (GASB Statements No. 47)
The Governmental Accounting Standards Board (GASB) has issued Statement No. 47, Accounting for
Termination Benefits, to provide accounting guidance for state and local governmental employers
regarding benefits (such as early- retirement incentives and severance benefits) provided to employees
that are terminated. Statement No. 47 requires recognition of the cost of involuntary termination benefits
in the period in which a government becomes obligated to provide benefits to terminated employees,
which is not necessarily the same period as when the benefits are actually provided.
The Statement requires recognition of the cost of voluntary termination benefits when the termination
offer is accepted. The Statement provides an exception to the general recognition requirements for
termination benefits that affect defined benefit post employment benefits, such as pensions or retiree
healthcare. Those termination benefits should be accounted for in the same manner as defined benefit
pensions or other post employment benefits, although any increase in an actuarial accrued liability
associated with a termination benefit is required to be separately disclosed.
The Statement also elaborates on how to measure the cost of termination benefits and requires
disclosure of information about termination benefit arrangements, including a description of the plan and
the cost of the benefits.
Statement No. 47 is effective for financial statements for periods beginning after June 15, 2005.
However, for termination benefits that affect defined benefit post employment benefits other than
pensions, governments should implement Statement No. 47 simultaneously with Statement No. 45,
Accounting and Financial Reporting by Employers for Post employment Benefits Other Than Pensions.
Sales and Pledges of Receivables and Future Revenues and Intra - Entity Transfers of Assets and
Future Revenues (GASB Statements No. 48)
This statement is effective for periods beginning after December 15, 2006 and therefore, is applicable to
the City for the year ended December 31, 2007. This statement clarifies accounting treatment for
transactions involving the exchange of an interest in expected receivable or future revenue collections
for immediate cash payments.
Accounting and Financial Reporting for Pollution Remediation Obligations (GASB Statements
No. 49)
This statement is effective for periods beginning after December 15, 2007 and therefore, is applicable to
the City for the year ended December 31, 2008. GASB Statement No. 49 requires governments to
measure and report liabilities and expenditures resulting from pollution remediation obligations. The new
standard is applicable to all pollution remediation except as associated with the following:
Environmental obligations associated with landfills which are already covered under GASB
Statement No. 18: Accounting for Municipal Solid Waste Landfill Closure and Post - closure
Care Costs.
Future pollution remediation activities that are required when an asset is retired except for
newly retired assets where no liability has previously been recognized.
Asset impairments which are already covered under GASB Statement No. 42: Accounting
and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries.
Any pollution prevention costs, fines, penalties, or any other non - remediation expenditures.
Accounting for any environmental non - exchange transactions.
(14)
Accounting and Financial Reporting for Pollution Remediation Obligations (GASB Statements
No. 49) (Continued)
Expenditure recognition or asset capitalization occurs when one of the following five obligating events
takes place:
- The government is compelled to take pollution remediation action because of an imminent
endangerment.
The government violates a pollution prevention related permit or license.
- The government is named, or evidence indicates that it will be named, by a regulator as a
responsible party or potentially responsible party for remediation, or as a government
responsible for sharing costs.
- The government is named, or evidence indicates that it will be named, in a lawsuit to compel
participation in pollution remediation.
- The government commences or legally obligates itself to commence pollution remediation.
Costs of remediation should be accrued for all components (legal fees, site investigation costs, etc.) of
the obligation that are reasonably estimable. The standard outlines a method for recording a liability
based on estimated future remediation payments (expected cash flow technique = sum of all probability
weighted amounts in a range of possible estimated amounts). The liability should be reduced by any
estimated insurance or other recoveries that are not yet realized or realizable. An asset should be
reported separately for any known insurance or other recoveries that are already realized or realizable.
If liability recognition is necessary, it is required to be recorded at current value versus estimated future
inflating factors for such criteria as unknown technologies, laws or regulations. This liability amount is
carried forward unchanged until one of the five benchmarks occurs, there is a change in the remediation
plan, or there is a change in operating conditions.
Additional footnote disclosures accompanying recognition of a liability include explaining the nature and
source of the remediation obligation as well as the methods and assumptions used to estimate the
liability.
(15)
NEW AUDITING STANDARDS
There are two key new auditing standards that became effective for periods ending after December 15,
2006 and therefore, were applicable to this year's audit. All public accounting firms must comply with
these standards, as issued by the American Institute of CPAs, when performing audits. Several of the
requirements contained in these new standards significantly impacts the manner in which your audit is
conducted and, potentially, on its costs and findings. In an effort to serve you better and continue to gain
efficiency and understanding in the audit process, we have outlined some of the changes and their
impact on your audit.
STATEMENT OF AUDITING STANDARDS (SAS) 103: AUDIT DOCUMENTATION
This standard addresses the format and content of the auditors' workpapers, documentation procedures
and results. While you may not see these changes yourself, they will affect the time and effort we must
put into your audit. You can help mitigate the effect of this standard on your organization with up -front
planning and communications.
• First, the standard tells us that: `The auditor's report should not be dated earlier than the
date on which the auditor has obtained sufficient appropriate audit evidence to
support the opinion." On the surface, this requirement does not seem much different from
existing requirements; however, it has practical implications. A delay between the end of
audit fieldwork and approval of draft financial statements can result in a change in the report
date and require additional audit steps, such as updating attorney letters, reviewing
additional board minutes and interim financial statements, extending subsequent receipts
and disbursements testing, etc. for the intervening period. These additional steps would also
be required if a significant adjustment were to be made to the financial statements, or
information required in the footnotes were to be provided, after the initial fieldwork date.
Specific Impact: The audit report date we used for the 2005 audit under the old standards
was March 24, 2006, or essentially the last day of our on -site fieldwork. Under the new
standard, the 2006 audit report date is May 30, 2007. The impact on the audit is a
requirement to update certain procedures through this additional two months period between
our March fieldwork and audit report date.
• Second, we must now "lock down" audit files within 60 days of the issuance of the audit
report. This will make workpapers inaccessible for changes. Practically, this means that late
management responses can also cause the report date to change when they are
incorporated into Single Audit findings or management letter comments, with similar
implications for additional audit procedures and billings.
The audit documentation requirements of SAS 103 may reinforce the common perception that auditors
ask the same questions and make the same requests multiple times over the course of an annual audit
engagement. The purpose of follow -up requests, however, are designed to affirm representations and
ensure the completeness of the audit evidence documentation though our report date.
SAS 103 encourages the auditor to corroborate oral representations by client management. Auditors will
obtain audit evidence through inquiries of additional personnel and /or written documentation. Therefore,
accessibility and responsiveness of all staff to auditor inquiries will be necessary to have an efficient
audit. Corroborating information often resides outside the accounting office. For example, information
obtained through direct inquiry of non - finance office personnel.
Avoiding the effect of additional audit fees, the disruption associated with additional audit procedures
and further report delays that may result due to lack of audit staff available to perform the unanticipated
procedures requires clear communication of changes in audit circumstances and meeting schedules to
all parties (auditor, management and audit committee)well in advance of audit wrap -up.
(16)
SAS 112: COMMUNICATING INTERNAL CONTROL RELATED MATTERS NOTED IN THE AUDIT
This standard includes new language and definitions with which you will need to become familiar. The
standard replaces "reportable conditions" and "management points" with new terms as follows:
• Control Deficiency — "A control deficiency 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 misstatements on a timely basis."
• Significant Deficiency — "A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process
or report financial data reliably in accordance with GAAP such that there is more than a remote
likelihood that a misstatement of the entity's financial statements, that is more than
inconsequential, will not be prevented or detected by the entity's intemal control."
In other words, judging the impact of control deficiencies, singularly or collectively, could rise to
such a level that, in the auditor's judgment, possible misstatements could occur in the financial
statements.
• Material Weakness — "A material weakness is a significant deficiency, or combination of
significant deficiencies, that results in more than a remote likelihood that a material misstatement
of the financial statements will not be prevented or detected by the entity's intemal control."
In other words, depending upon the qualitative analysis of the significant deficiencies above on
the financial statements, as well as the number of such items encountered, any or all of the
above could rise to the level of material weakness.
You will note that these new definitions are broader and more inclusive than the previous
"reportable conditions" and "material weakness" that were reported to you under SAS 60.
Additionally, and perhaps most importantly to you, our communication of significant deficiencies and
material weaknesses must be in writing. Verbal communications of deficiencies will not be acceptable.
This means, these items must be included in our "management letter" (formerly SAS 60 report), which
state agencies and other constituents often request.
Nothing in the new standards precludes the auditor from orally communicating additional items that
he /she believes to be of potential benefit to management, such as recommendations for operational or
administrative efficiency or improvement in internal controls. If management responses are included in a
management letter, we will add a disclaimer according to the appropriateness or accuracy of the
response.
Remember, auditor awareness of control deficiencies varies with each audit and is influenced by the
nature, timing, and extent of audit procedures performed, as well as other factors from one year to the
next. Therefore, taking corrective action for all of one year's findings does not guarantee that new
exceptions will not present themselves the following year, even though financial procedures and
controls may not have changed.
(17)
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
I. INTRODUCTORY SECTION
Principal City Officials
Organizational Chart
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Page
Reference Number
1
3
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 Revenue,
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
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Statement of Cash Flows - Proprietary Funds
Statement of Net Assets - Fiduciary Funds
Notes to Financial Statements
Required Supplementary Information
General Fund:
Schedule of Revenues, Expenditures and Changes in Fund
Balance - Budget and Actual
Notes to Required Supplementary Information
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 Revenue, Expenditures and Changes in Fund
Balance — Budget and Actual
Statement of Changes in Assets and Liabilities — Fiduciary 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 Four Fiscal Years
Changes in Net Assets - Last Four Fiscal Years
Reference
Statement 9
Statement 10
Page
Number
32
33
34
Statementl l 55
62
Statement 12 63
Statement 13 71
Statement 14 79
Statement 15 80
Exhibit 1 81
Exhibit 2 83
Exhibit 3 85
Exhibit 4 88
Exhibit 5 89
Table 1 90
Table 2 91
CITY OF LINO LAKES, MINNESOTA
TABLE OF CONTENTS
Page
Reference Number
Fund Balances, Governmental Funds - Last Ten Fiscal Years Table 3 93
Changes in Fund Balances, Governmental Funds — Last Tem Fiscal Years Table 4 95
Assessed and Actual Value of Taxable Property -
Last Ten Fiscal Years Table 5 97
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
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL CITY OFFICIALS
December 31, 2006
Elected Officials
Mayor:
John Bergeson
Term Expires
December 31, 2007
Council Members:
Donna Carlson December 31, 2007
Daniel Stoltz December 31, 2007
Jeff O'Donnell December 31, 2009
Jeff Reinert December 31, 2009
Appointed Personnel
City Administrator Gordon Heitke
Director of Administration Daniel Tesch
Director of Finance Alan Rolek
Director of Public Safety David Pecchia
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 Services
Parks
Public Works
Recreation
Public Safety
Emergency Management
Administration
Human Resources
Administrative Services
2
Community Development
Planning
Economic Development
Engineering
Environmental Services
Inspections
Finance
Accounting
J
Management Infomration Systems
Utility Billing
June 1, 2007
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 U.S. 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, 2006.
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 LarsonAllen 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, 2006, 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, 2006, 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.
600 Town Center Parkway, Liio 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 20,290. 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 & fire), public works (streets & fleet), parks and recreation, conservation of natural resources
(environmental & 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 55 and 79,
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 The economic development effort established in 1993 by the city council has made an
impact in the diversity of the City's tax base. Since 1993, the city has added more than $108 million in additional
commercial /industrial market value. Development of the Apollo Business Park on I -35W is nearly completed,
with a Pomp's Tire building completed in 2006 and a Hampton Inn hotel currently under construction. The
Clearwater Creek Development Center on I -35E continues to attract industrial development. The commercial
retail center on Lake Drive and Apollo Drive in the Town Center area, known as the Lino Lakes Marketplace, has
continued to develop. The two anchor tenants, Target and Kohl's, were completed and opened in 2002. A Dairy
Queen Grill `n Chill restaurant was completed and opened in 2003, and a Discount Tire store opened in mid -
2004. Two retail buildings of approximately 6,000 square feet each were added to the area during 2005, and the
developer is currently obtaining leases for this space. A Wells Fargo branch bank was also constructed in this
area during 2005 and opened in early 2006.
4
Building permits for new homes in 2006 numbered 91, 105 fewer than were issued 2005, reflecting the softening
residential real estate market. A 12,582 square foot building was built by Schwan's in the Marshan Industrial
Park on the southwest quadrant of I -35W and Lake Drive was completed in 2005, further contributing jobs and
adding value to the city's growing commercial /industrial tax base. Construction of a two -story office building at
the intersection of Lake Drive and Hodgson Road was completed in 2006 and will house E.G. Rud Surveyors and
several other tenants.
The City initiated an Alternative Urban Areawide Review (AUAR) of property in excess of 4,000 acres in the
northeast quadrant of the city, which includes property in the I -35E corridor, to assess the impact of future
development scenarios in this area. The AUAR was completed and accepted by the City Council in October,
2005. The AUAR included the proposed Hardwood Creek development, a 360 acre master - planned mixed -use
development. If approved, the development would include approximately 1,100 dwelling units and 600,000
square feet of commercial /retail buildings and preserve 90 acres of green space.
Long -term financial planning. The city has entered into an agreement with Hartford Development LL, LLC, to
develop 40 acres in the southeast quadrant of I -35W and Lake Drive. This mixed -use development will occur
over a period of two to five years and will include up to 450 dwelling units, retail commercial business, a
community green and park and trail amenities and a 60 -unit motel. Anoka County is planning to locate a branch
library in close proximity to the development as well. Country Inn and Suites began construction in early 2006
and opened in November, 2006. The YMCA, in partnership with the city, is also planning a facility within the
development. The city's participation in the YMCA will be $2.35 million of the $8.2 million project, plus land
and infrastructure. The city has issued G.O. Tax Abatement bonds to finance its contribution to this project, as
well as $4.0 million in conduit debt. The city has also secured a CDBG grant of $125,000 to be used toward a
teen center within the YMCA. Construction on the facility began in late Fall, 2006 and the facility is scheduled
to open in mid -July, 2007.
To facilitate this development, street, streetscape, water, sewer, and storm water improvements have been
installed within the development area and assessed to the development. Improvements to the existing Lake Drive
and the construction of a new interchange at Interstate 35W and Lake Drive are planned to begin in May, 2007.
This construction will be completed by July, 2008, with the bridge remaining open throughout the construction
period. Engineering estimates for these improvements is estimated at approximately $10.4 million and will be
financed through the joint efforts of MNDOT, Anoka County and the City of Lino Lakes. The City will issue
G.O. Tax Increment bonds and use Minnesota State Aid funds to finance its portion of the project cost. It is
acknowledged that this development will result in additional ongoing costs involved in servicing and maintaining
the streets and public areas, which will be addressed in future operating budgets.
The city's five -year financial plan, adopted in December, 2006, identifies street and utility improvements totaling
$35,475,545 over the period of 2007 through 2011. 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, tax increment financing and voter - approved tax levies. Improvements to
several of the city's neighborhood parks and the city's trail system are also planned over this period in the
amount of $95,000. These improvements will be funded through park dedication fees and the dedicated parks
fund. The five -year plan also includes funding projections for operations and operating impacts for the period of
2007 -2011.
5
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 and last amended it in 1998. The City has implemented the Government Accounting
Standards Board (GASB) Statement No. 40 relating to Deposit and Investment Risk Disclosures and amending
GASB Statement No. 3, which can be found in the Notes to the Financial Statements beginning on page 42.
Cash temporarily idle during the year was invested in certificates of deposit, commercial paper, and obligations
of the U.S. Treasury. 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 low interest rate environment has persisted over the few years and has had a
significant impact on the city's investment earnings. The average yield on investments for 2006 was 5.14 %.
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.
Pension benefits. The City of Lino Lakes participates in a statewide defined benefit pension plan administered
by the Public Employees Retirement Association of Minnesota (PERA). All full -time and part-time employees
are covered by PERA. PERA administers the Public Employees Retirement Fund (PERF) which is a cost -
sharing, multiple - employer retirement plan. A plan description and funding policy are included in the Notes to
the Financial Statements beginning on page 49.
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, 2005. This
marks the tenth consecutive year that 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 2006 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.
6
1
1
I also want to express my appreciation to the Mayor and City Council for their support for maintaining the
highest standard of professionalism in the management of the financial operation of the City.
Respectfully submitted,
I (
Alan J. Rolek
Director of Finance
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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, 2005
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
*Cr' 1190A0
8
Executive Director
II.
FINANCIAL
SECTION
Lars•nAllen
CPAs, Consultants & Advisors
www.larsonallen.com
INDEPENDENT AUDITORS' REPORT
Honorable Mayor and
Members of the City Council
City of Lino Lakes, Minnesota
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, 2006, which collectively comprise the City's basic financial
statements as listed in the table of contents. These basic financial statements are the responsibility of the City's
management. Our responsibility is to express an opinion on these basic 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 opinion.
In our opinion, the basic financial statements referred to above present fairly, in all material respects, the
financial position of the governmental activities, the business -type activities, each major fund, and the aggregate
remaining fund information of the City of Lino Lakes, Minnesota as of December 31, 2006, and the respective
changes in financial position and cash flows, where applicable, thereof and for the year then ended in conformity
with U.S. generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated May 30, 2007 on our
consideration of the City of Lino Lakes Minnesota's internal control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, grants, 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.
The management's discussion and analysis and budgetary comparison information as listed in the table of
contents are not a required part of the basic financial statements but are supplemental information required by
U.S. generally accepted accounting principles. We have applied certain limited procedures, which consisted
principally of inquires of management regarding the methods of measurement and presentation of the required
supplementary information. However, we did not audit the information and express no opinion on it.
I SIAVIO VA
INTERNATIONAL
9
LarsonAllen LLP is a member of Nexia International, a worldwide network of independent accounting and consulting firms.
Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The
accompanying supplementary information, such as the introductory section, combining fund financial statements,
supplementary financial information and statistical section listed in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. Such information,
except for the introductory and statistical sections on which we express no opinion, has been subjected to the
auditing procedures applied in our audit of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
Austin, Minnesota
May 30, 2007
10
LarsonAllen LLP
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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, 2006. 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 $91,136,637 (net assets). Of this amount $21,397,013 (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 $6,133,384.
• As of the close of the current fiscal year, the City of Lino Lakes' governmental funds reported
combined ending fund balance of $16,155,382, a decrease of $5,147,604 in comparison with the
prior year. Approximately 68% of this total amount, or $10,950,496 is available for spending at the
City's discretion (unreserved fund balance).
• At the end of the current fiscal year, unreserved fund balance for the general fund was
$5,337,225, or 68% of total general fund expenditures.
• The City of Lino Lakes' total bonded debt decreased by $1,608,000 (6 percent) during the current
fiscal period. The key factors for the decrease were the refunding of the 1998A and 1998B
Improvement bonds that were be called and retired in February, 2006, and the partial refunding of
the 1998A Lease Revenue Bonds that were called and retired on December 1, 2006.
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).
11
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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 two
categories: governmental funds and proprietary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -term inflows
and outflows of spendable resources, as well as on balances of spendable resources available at the end
of the fiscal year. Such information may be useful in evaluating a government's near -term 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 forty -three 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,
Area and Units Charge fund, Legacy Woods Edge Improvement fund and Chain of Lakes YMCA fund, all
of which are considered to be major funds. Data from the other thirty -eight 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
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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 -54 of this report.
Other information. The combining statements and schedules referred to earlier in conjunction with
nonmajor governmental funds can be found on pages 63 -78 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 $91,136,637 at the close of the most recent fiscal
year, an increase of $6,133,384 from the previous year.
By far the largest portion of the City of Lino Lakes' net assets (65 percent) 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.
A condensed version of the Statement of Net Assets at December 31, 2006 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
2006
$ 27,167,139
51,159,427
78,326,566
22,410,771
1,145, 647
23,556,418
2005
$ 32,881,762
45,450, 783
78,332,545
25,425,155
1,819, 307
27,244,462
Business -Type Activities
2006
$ 8,772,775
31,591,370
40,364,145
3,897,167
100,489
3,997,656
2005
$ 5,718,353
30, 767, 824
36,486,177
2,452,500
118,507
2,571,007
Total
2006 2005
$ 35,939,914 $ 38,600,115
82,750,797 76,218,607
118,690,711 114,818, 722
26,307,938
1,246,136
27,554,074
29,549,174
10,704,508
14,516,466
$ 54,770,148
25,460,528
12,050,484
13,577,071
$ 51,088,083
29,485,942 28,342,832
6,880,547 5,572,338
$ 36,366,489 $ 33,915,170
27,877,655
1,937,814
29,815,469
59,035,116 53,803,360
10, 704,508 12,050,484
21, 397,013 19,149,409
$ 91,136,637 $ 85,003,253
Of the remaining balance of the City of Lino Lakes' net assets, restricted net assets (12 percent) are to be
used for debt service requirements and a nonexpendable environmental fund. Unrestricted net assets (23
percent) 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, 2006
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
$3,682,065, thereby accounting for 60 percent of the total growth in the net assets of the City of Lino
Lakes. The most significant change in governmental net assets is due to the effect of accounting for net
assets under the full accrual basis. Under full accrual accounting, current year outlay for infrastructure will
be expensed over the useful life of the infrastructure. This capital outlay for the infrastructure is budgeted
for during the current year.
Business -type activities. Business -type activities increased the City of Lino Lakes' net assets by
$2,451,319, thereby accounting for 40 percent of the total growth in the net assets of the City of Lino
Lakes. Developers' contribution of infrastructure assets to the water and sewer funds accounted for a
significant portion of that increase.
Condensed statements of revenues, expenses, and changes in net assets highlights are as follows for the
year ended December 31, 2006:
Governmental Activities Business -Type Activities Total
2006 2005 2006 2005 2006 2005
1
1
1
1
1
1
REVENUES
Program Revenues
Charges for Services $ 1,570,002 $ 1,772,586 $ 2,566,874 $ 2,392,934 $ 4,136,876 $ 4,165,520
Operating Grants and Contributions 643,749 761,924 - 643,749 761,924
Capital Grants and Contributions 5,963,204 10,128,024 1,535,631 1,733,775 7,498,835 11,861,799
General Revenues
Property Taxes 8,128,684 7,247,977 8,128,684 7,247,977 III
Franchise Taxes 140,408 134,487 140,408 134,487
Other Taxes 852 951 - 852 951
Unrestricted Investment Earnings 713,794 433,387 253,787 120,310 967,581 553,697
Gain on Disposal of Capital Assets 33,217 - 33,217
Contributions to Permanent Fund 100,000 100,000
Other 60,955 60,955
Total Revenues 17,193,910 20,640,291 4,356,292 4,247,019 21,550,202 24,887,310
EXPENSES
General Government 2,886,825 2,941,279 2,886,825 2,941,279
Public Safety 3,516,376 3,091,174 3,516,376 3,091,174 I
Public Service 3,871,968 9,187,436 3,871,968 9,187,436
Parks, Recreation and Forestry 1,162,458 799,335 1,162,458 799,335
Conservation of Natural Resources 156,592 150,092 156,592 150,092
Community Development 691,880 383,211 691,880 383,211 I
Interest on Long -Term Debt 926,021 797,341 - 926,021 797,341
Water 976,575 876,592 976,575 876,592
Sewer 1,228,123 1,217, 825 1,228,123 1,217,825
Total Expenses 13,212,120 17,349,868 2,204,698 2,094,417 15,416,818 19,444,285
CHANGE IN NET ASSETS
BEFORE TRANSFERS 3,981,790 3,290,423 2,151,594 2,152,602 6,133,384 5,443,025
Transfers (299,725) (304,195) 299,725 304,195 -
CHANGE IN NET ASSETS 3,682,065 2,986,228 2,451,319 2,456,797 6,133,384 5,443,025
Net Assets - Beginning of Year 51,088,083 48,101,855 33,915,170 31,458,373 85,003,253 79,560,228
NET ASSETS - END OF YEAR $ 54,770,148 $ 51,088,083 $ 36,366,489 $ 33,915,1 fO $ 91,136,637 $ 85,003,253 I
14
1
1
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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
$7,000,000 --
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
,c.c.‘ec"t sa,kel Sep \cee e0 J toeS e ae�k
°\, te� ,6\c d o� �eSO o OR`
a \ 0 P` Q`� o � a � d e�
Gee a\�-\�taJ kdk`
eote o\ �� ��`es
G
oo`s
■ Expenses
■ Revenues
Revenues by Source - Governmental Activities
Unrestricted investment
earnings
4%
Franchise taxes
1%
Other
0%
Charges for services
9%
Operating grants and
contributions
4%
Property taxes
47%
15
Capital grants and
contributions
35%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$-
Water
Sewer
❑Expenses
• Revenues
Revenues by Source - Business -type Activities
Other
6%
Capital grants and
contributions
35%
16
Charges for services
59%
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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. In particular, unreserved fund balance may
serve as a useful measure of a government's net resources available for spending at the end of the fiscal
year.
As of the end of the current fiscal year, the City of Lino Lakes' governmental funds reported combined
ending fund balances of $16,155,382, a decrease of $5,147,604, or 24% lower than the previous year.
Approximately 68% of this total amount, or $10,950,496, constitutes unreserved fund balance, which is
available for spending at the government's discretion. The remainder of fund balance is reserved to
indicate that it is not available for new spending because it has already been committed 1) to liquidate
contracts and purchase orders of the prior period ($154,822), 2) to pay debt service ($3,992,952), 3) to
fund interfund advances ($957,112), or 4) to fund environmental improvements ($100,000).
The general fund is the primary operating fund of the City of Lino Lakes. At the end of the current fiscal
year, unreserved fund balance of the general fund was $5,337,225, while the total fund balance was
$5,490,234. As a measure of the general fund's liquidity, it may be useful to compare unreserved fund
balance and total fund balance to total fund expenditures. Unreserved fund balance represents 68
percent of total general fund expenditures, while total fund balance represents 70 percent of that same
amount.
The fund balance of the City of Lino Lakes' general fund increased by $41,426 during the current fiscal
year. A soft real estate market reduced building activities which significantly decreased permit revenue;
however, higher investment earnings were realized due to a rising rate environment. Reduced
expenditures, primarily for personal services, offset the reduced revenues, thereby contributing toward the
increase in fund balance. Overall, the general fund's revenues were slightly below the amended budget,
while expenditures were 3% below budgeted levels.
The G.O. improvement bonds 2005A fund has a total fund balance of $585,551, all of which is reserved
for the retirement of related debt. This is related to the bonds issued for the Legacy Woods Edge
improvement project.
The area and unit charge fund has a total fund balance of $2,599,590, of which $957,112 is reserved for
advances to other funds, and $1,642,478 is unreserved and available for financing capital improvements.
The fund balance during the current year increased by was $20,692.
The Legacy Woods Edge improvement fund balance decreased by $2,080,970, to $265,927 as the
improvements were made within this development throughout 2006.
The Chain of Lakes YMCA fund was created to track the city's contribution toward the construction of the
Chain of Lakes YMCA. G.O. Tax Abatement bonds were issued and the contribution was made to the
YMCA project during the year, effectively bringing the fund balance in this fund to zero at year end.
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 of $15,232,576, of which $2,544,523 are unrestricted. The increase in
net assets of $1,232,148 was primarily due to contributions from private sources, an operating transfer
from a capital projects fund and operating income.
17
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
Total net assets in the sewer fund at the end of 2006 were $21,133,913, of which $4,336,024 was
unrestricted. Net assets increased $1,219,171 during the current year resulting primarily from
contributions from private sources and operating income.
The water and sewer rates remained the same in 2006 as in 2005. A rate study is planned for 2007.
GENERAL FUND BUDGETARY HIGHLIGHTS:
The original budget was amended four times during the year reflecting donations and grants received
primarily for police personnel and equipment.
Revenues were $70,709 under budget. Lower building activity and, therefore, fewer building permits being
issued was the largest contributing factor. Federal and state intergovernmental revenues, primarily police
grant related, were slightly over budget for the year. Local government grants were significantly over
budget due to unexpected grant funds being received. Investment earnings, due to rising interest rates
were also significantly over budget. Public safety charges for service were also over budget due to
greater than expected traffic control contracts. Expenditures came in under the budgeted amounts by
$205,836 due mainly to lower than expected personal services costs. There were also net transfers from
the general fund of $623,311. This resulted in a net fund balance increase of $41,426 for the fiscal year
which was $59,426 more than budgeted.
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, 2006, amounts to $82,750,797 (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. The total increase in the City of Lino Lakes'
investment in capital assets (net of accumulated depreciation) was 9 percent. Most of this increase within
the governmental activities can be found in the addition of constructed streets, underground infrastructure
and vehicles. Within the business -type activities the most significant increases occurred in infrastructure
installation in relation to 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
2006
$ 2,809,059
5,066,936
4,593,749
514,309
951,072
291,928
408,798
36,523,576
$ 51,159,427
2005
$ 2,809,059
4,756,524
429,158
741,617
251,406
464,472
35,998,547
$ 45,450,783
Business -Type Activities
2006 2005
$ - $
356,061
109,244
31,482,126
$ 31,591,370
Total
1
1
1
1
1
1
1
1
1
1
1
1
2006
$ 2,809,059
5,066,936
4,593,749
514,309
951,072
61,914 401,172
408,798
30,349,849 68,005,702
$ 30,767,824 $ 82,750,797
2005
$ 2,809,059
356,061
4,756,524
429,158
741,617
313,320
464,472
66,348,396
$ 76,218,607 I
Additional information on the City's capital assets can be found in the notes to the financial statements on
pages 34 -54.
18
1
1
1
1
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
Long -term debt. At the end of the current fiscal year, the City of Lino Lakes had total bonded debt
outstanding of $25,557,000. Of this amount $7,747,000 comprises tax supported debt, $13,940,000 is
special assessment debt and $3,870,000 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.
G.O. Bonds
G.O. Special Assessment Bonds
G.O. Revenue Bonds
Total Outstanding Debt
Outstanding Debt at Year -End
Governmental Activities
2006
$ 7,747,000
13,940,000
2005
$ 5,335,000
19,405,000
$ 21,687,000 $ 24,740,000
Business -Type Activities Total
2006 2005 2006
$ - $ $ 7,747,000
- 13,940,000
3,870,000 2,425,000 3,870,000
$ 3,870,000 $ 2,425,000 $ 25,557,000
2005
$ 5,335,000
19,405,000
2,425,000
$ 27,165,000
The City of Lino Lakes' total bonded debt decreased by $1,608,000 (6 percent) during the current fiscal
year. The primary reasons for the decrease were refunding of the 1998A and 1998B Improvement bonds
that were be called and retired in February, 2006, and the partial refunding of the 1998A Lease Revenue
Bonds that were called and retired on December 1, 2006.
The City of Lino Lakes received an Aa3 rating from Moody's Investors Service for general obligation debt.
The represents an upgrade from the prior rating of Al. More detailed information on the City's long -term
liabilities is presented in the notes to the financial statements.
Additional information on the City's long -term debt can be found in the notes to the financial statements on
pages 34 -54.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES:
• The unemployment rate for the City of Lino Lakes is currently 4.1 percent, which is a slight
increase from a rate of 3.8 percent a year ago. This compares favorably to the state's average
unemployment rate of 4.2 percent and the national average of 4.3 percent.
• The City of Lino Lakes continues to see increased commercial /industrial construction growth.
Residential growth has slowed due to the general residential real estate market downturn, with
less than half the number of new home permits issued in 2006 from 2005. This is expected to
level off in 2007 with the beginning of a recovery of the housing market later in the year.
• Property tax reforms and State budget deficits have significantly impacted local government aid
payments the City of Lino Lakes receives. Local government aid and market value homestead
credit was reduced to zero for 2003, 2004, 2005 and 2006. While the City is exempted from local
government aid, market value homestead credit is expected to be received in 2007.
• The Federal Reserve Board has increased the federal funds rates significantly, which is expected
to result in increases in the City's investment earnings.
19
City of Lino Lakes, Minnesota
Management's Discussion and Analysis
December 31, 2006
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
BASIC FINANCIAL STATEMENTS
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS
December 31, 2006
Statement 1
Governmental Business -type
Activities Activities
Total
ASSETS
Cash and investments $ 15,872,714 $ 8,228,751 $ 24,101,465
Cash and investments with escrow agent 118,583 118,583
Accrued interest receivable 290,173 290,173
Accounts receivable 202,538 336,050 538,588
Due from other governments 143,582 143,582
Taxes receivable 171,652 171,652
Special assessments receivable 9,897,321 130,705 10,028,026
Prepaid items 154,822 56,302 211,124
Unamortized bond issue costs 215,754 20,967 236,721
Permanently restricted cash and investments 100,000 100,000
Capital assets:
Land 2,809,059 - 2,809,059
Construction in progress 5,066,936 - 5,066,936
Other capital assets, net of depreciation 43,283,432 31,591,370 74,874,802
Total assets 78,326,566 40,364,145 118,690,711
LIABILITIES
Accounts payable 249,374 25,071 274,445
Salaries payable 110,315 3,920 114,235
Contracts and retainage payable 413,601 - 413,601
Accrued interest payable 364,415 58,510 422,925
Due to other governments 7,942 - 7,942
Other accrued liabilities 12,988 12,988
Non - current liabilities:
Due within one year 2,342,742 2,035,826 4,378,568
Due in more than one year 20,068,029 1,861,341 21,929,370
Total liabilities 23,556,418 3,997,656 27,554,074
NET ASSETS
Invested in capital assets, net of related debt 29,549,174 29,485,942 59,035,116
Restricted for:
Debt service 10,604,508 10,604,508
Environmental improvements - nonexpendable 100,000 100,000
Unrestricted 14,516,466 6,880,547 21,397,013
Total net assets $ 54,770,148 $ 36,366,489 $ 91,136,637
21
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF ACTIVITIES
Year Ended December 31, 2006
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
$ 2,886,825 $
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
13,212,120
88,924
844,514
420,741
188,439
6,854
20,530
1,570,002
976,575
1,228,123
2,204,698
$ 15,416,818 $
Program Revenues
Operating
Grants and
Contributions Contributions
Capital Grants and
$ 58,356 $
176,321
169,744
206,500
32,828
643,749
1,175,172
1,391,702
2,566,874
4,136,876 $ 643,749
5,963,204
5,963,204
646,936
888,695
1,535,631
$ 7,498,835
General revenues:
Taxes:
Property taxes, levied for general purpose
Franchise Taxes
Other taxes
Unrestricted investment earnings
Gain on disposal of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets - beginning
Net assets - ending
22
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Statement 2
Net (Expense) Revenue and Changes in Net Assets
Governmental Business -type
Activities Activities
Total
$ (2,739,545) $ $ (2,739,545)
(2,495,541) (2,495,541)
2,681,721 2,681,721
(767,519) (767,519)
(116,910) (116,910)
(671,350) (671,350)
(926,021) (926,021)
(5,035,165) (5,035,165)
845,533 845,533
1,052,274 1,052,274
1,897,807 1,897,807
(5,035,165) 1,897,807 (3,137,358)
8,128,684 8,128,684
140,408 140,408
852 852
713,794 253,787 967,581
33,217 33,217
(299,725) 299,725 -
8,717,230 553,512 9,270,742
3,682,065 2,451,319 6,133,384
51,088,083 33,915,170 85,003,253
54,770,148 $ 36,366,489 $ 91,136,637
23
CITY OF LINO LAKES, MINNESOTA
BALANCE SHEET - GOVERNMENTAL FUNDS
December 31, 2006
Assets
Cash and investments
Cash and investments with escrow agent
Accrued interest receivable
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
Prepaid items
Advances to other funds
Total assets
Liabilities and equity
Liabilities:
Interfund payable
Accounts payable
Salaries payable
Contracts and retainage payable
Due to other governmental units
Advances from other funds
Deferred revenue
Total liabilities
Fund balances:
Reserved
Reserved for prepaid items
Reserved for debt retirement
Reserved for advances to other funds
Reserved for environmental improvements
Unreserved:
Designated:
General fund
Special revenue funds
Capital projects funds
Undesignated reported in:
Capital projects funds
Permanent funds
Total equity and other credits
Total liabilities and equity
General
G.O.
Improvement
Bonds 2005A
$ 4,944,198 $ 585,551
289,827
123,916
138,582
47,869
107,640
41,845
395,594
4,722,240
Area and
Unit
Charge
Legacy
Woods Edge
Improvement
$ 1,650,076 $ 713,639
21,798
22,921
2,461,078
969
1
1
1
1
1
1
1
1
153,009
- 957,112
$ 5,846,886 $ 5,703,385 $ 5,113,954 $ 713,639
132,760
110,132
6,120
8,422
21,943
107,640 5,117,834 2,483,999
356,652 5,117,834 2,514,364
153,009
5,337,225
585,551
957,112
1,642,478
64,990
382,722
447,712
265,927
5,490,234 585,551 2,599,590 265,927
$ 5,846,886 $ 5,703,385 $ 5,113,954 $ 713,639
The accompanying notes are an integral part of these basic financial statements.
24
1
1
1
1
1
1
1
1
1
1
Statement 3
Chain of Other
Lakes Governmental
YMCA Funds
$ $ 8,079,250
118,583
346
56,824
5,000
14,930
6,647
590
11,189
2,278,589
4,741
1,813
- $ 10,578,502
$ 47,869
43,202
183
8,936
1,822
957,112
2,305,298
3,364,422
1,813
3,407,401
100,000
82,385
1,552,153
2,064,950
5,378
7,214,080
$ 10,578,502
Total
Governmental
Funds
$ 15,972,714
118,583
290,173
202,538
143,582
47,869
122,570
48,492
590
429,704
9,461,907
5,710
154,822
957,112
$ 27,956,366
$ 47,869
249,374
110,315
413,601
7,942
957,112
10,014,771
11,800,984
154,822
3,992,952
957,112
100,000
5,337,225
82,385
3,194,631
2,330,877
5,378
16,155,382
$ 27,956,366
25
CITY OF LINO LAKES, MINNESOTA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE STATEMENT OF NET ASSETS
December 31, 2006
Statement 4
Total Fund Balances for Governmental Funds $ 16,155,382
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 2,809,059
Construction in progress 5,066,936
Buildings, Net of Accumulated Depreciation 4,593,749
Office Equipment and Furniture, Net of Accumulated Depreciation 514,309
Vehicles, Net of Accumulated Depreciation 951,072
Machinery and Shop Equipment, Net of Accumulated Depreciation 291,928
Other Equipment, Net of Accumulated Depreciation 408,798
Infrastructure, Net of Accumulated Depreciation 36,523,576 51,159,427
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. 10,014,771
Bond issuance costs are reported as expenditures in the governmental funds and are shown net of
accumulated amortization on the statement of net assets as prepaid items.
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
Compensated absence payable
Total Net Assets of Governmental Activities
The accompanying notes are an integral part of these basic financial statements.
26
215,754
(364,415)
(21,687,000)
(157,530)
18,523
(584,764) (22,410,771)
$ 54,770,148
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCE - GOVERNMENTAL FUNDS
Year Ended December 31, 2006
G.O. Area and Legacy
Improvement Unit Woods Edge
Revenue: General Bonds 2005A Charge Improvement
General property taxes $ 6,750,224 $ - $ - $
Tax increments -
Licenses and permits 581,582 -
Intergovernmental 398,786 - 84,462 1,036,812
Special assessments 689 743,564 699,679
Charges for services 281,839 - 219,829
Fines and forfeits 101,518 -
Investment earnings 192,046 12,290 81,088 77,617
Refunds and reimbursements 14,279 -
Miscellaneous 166,884 22,420
Total revenue 8,487,847 755,854 1,107,478 1,114,429
Expenditures:
Current:
General government 1,875,895
Public safety 3,314,159 - -
Public works 983,506 - 535,136 3,193,788
Parks, recreation and forestry 759,479 - -
Conservation of natural resources 143,653
Community development 683,036
Capital outlay:
General government 12,077
Public safety 36,641 -
Public works 5,492 1,611
Parks, recreation and forestry - -
Conservation of natural resources 2,316
Community development 6,856
Debt service:
Principal
Interest and fiscal charges 208,015
Total expenditures 7,823,110 208,015 535,136 3,195,399
Revenue over (under) expenditures 664,737 547,839 572,342 (2,080,970)
Other financing sources (uses):
Transfer in
Transfer out (623,311) (1,113,670)
Sale of property
Issuance of debt 564,585
Discount on bonds issued (2,565)
Premium on bonds issued
Payment to refunding bond escrow agent
Total other financing sources (uses) (623,311) (551,650)
Net increase (decrease) in fund balance 41,426 547,839 20,692 (2,080,970)
Fund balance
Beginning of year 5,448,808 37,712 2,578,898 2,346,897
Fund balance - December 31
$ 5,490.234 $ 585,551 $ 2,599,590 $ 265,927
The accompanying notes are an integral part of these basic financial statements.
27
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
t
Statement 5
Chain of Other Total
Lakes Governmental Governmental
YMCA Funds Funds
$ - $ 896,519 $ 7,646,743
- 456,520 456,520
- 581,582
- 298,459 1,818,519
- 1,457,168 2,901,100
- 185,883 687,551
- - 101,518
823 349,931 713,795
- 61,180 75,459
- 451,929 641,233
823 4,157,589 15,624,020
2,381,419
738,408 2,614,303
3,314,159
661,878 7,755,727
317,248 1,076,727
143,653
683,036
116,845 128,922
211,911 248,552
324,570 331,673
117,451 117,451
2,316
6,856
2,155,000 2,155,000
803,142 1,011,157
2,381,419 5,446,453 19,589,532
(2,380,596) (1,288,864) (3,965,512)
5,811,452 5,811,452
(18,044) (4,356,152) (6,111,177)
28,818 28,818
2,409,710 3,352,705 6,327,000
(11,070) (13,635)
450 450
(7,225,000) (7,225,000)
2,380,596 (2,387,727) (1,182,092)
(3,676,591) (5,147,604)
10,890,671 21,302,986
$ $ 7214,080 $ 16,155,382
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, 2006
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 6,900,199
Contributed capital assets 1,511,826
Gain on disposal of capital assets 33,217
Proceeds from sales of capital assets (43,856)
Depreciation expense (2,692,742) 5,708,644
$ (5,147,604)
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 general obligation bonds (6,020,000)
Issuance of equipment certificates (307,000)
Payment to refunded bond escrow agent 7,225,000
Bond premium (450)
Bond discount 13,635
Bond issuance costs 85,852
Repayment of bond principal 2,155,000
Interest expense for general obligation bonds (5,527)
Amortization of bond issuance costs (13,569)
Amortization of bond premium 19,086
Amortization of bond discount (706) $ 3,151,321
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, 2005 $ 9,974,886
Deferred revenue - December 31, 2006 10,014,771 $ 39,885
In the statement of activities, compensated absences 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 2006, compensated absence payable
increased. (70,181)
Change in Net Assets of Governmental Activities $ 3,682,065
The accompanying notes are an integral part of these basic financial statements.
29
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 NET ASSETS - PROPRIETARY FUNDS
December 31, 2006
Statement 7
Assets
Current assets:
Cash and cash equivalents
Accounts receivable
Prepaid items
Unamortized bond issue costs
Total current assets
Non - current assets:
Special assessments, long term
Capital assets:
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
Other accrued liabilities
Accrued interest payable
Bonds payable - current portion
Compensated absences payable - current portion
Total current liabilities
Non - current liabilities:
Bonds payable - long term
Compensated absences payable - long term
Total noncurrent liabilities
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
$ 4,113,623
143,482
5,361
20,967
4,283,433
130,705
48,690
108,296
18,189,822
18,346,808
(3,553,327)
14,793,481
14,924,186
19,207,619
Sewer
$ 4,115,128
192,568
50,941
4,358,637
210,570
20,783,469
20,994,039
(4,196,150)
16,797,889
16,797,889
21,156,526
$ 19,859 $
2,040
12,988
58,510
2,015,000
10,413
2,118,810
1,851,125
5,108
1,856,233
3,975,043
Totals
2006
$ 8,228,751
336,050
56,302
20,967
8,642,070
130,705
48,690
318,866
38,973,291
39,340,847
(7,749,477)
31,591,370
31,722,075
40,364,145
5,212 $ 25,071
1,880 3,920
12,988
58,510
2,015,000
20,826
2,136,315
10,413
17,505
5,108
5,108
22,613
12,688,053 16,797,889
2,544,523 4,336,024
$ 15,232,576 $ 21,133,913
1,851,125
10,216
1,861,341
3,997,656
29,485,942
6,880,547
$ 36,366,489
1
CITY OF LINO LAKES, MINNESOTA Statement 8
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS - PROPRIETARY FUNDS
Year Ended December 31, 2006
Totals
I
Water Sewer 2006
Operating revenue:
Charges for services $ 1,107,107 $ 1,371,832 $ 2,478,939
I
Hook -up charges 26,321 19,870 46,191
Water meter sales 32,783 32,783
iOther operating revenue 8,961 - 8,961
Total operating revenue 1,175,172 1,391,702 2,566,874
Operating expenses:
IPersonal services 164,548 151,643 316,191
Materials and supplies 219,842 23,184 243,026
Contractual services 41,310 77,895 119,205
I
MCES sewer charges 537,824 537,824
Depreciation 353,349 404,200 757,549
Utilities
Other 53,078 25,111 78,189
I
15,230 8,266 23,496
Total operating expenses 847,357 1,228,123 2,075,480
Net income from operations 327,815 163,579 491,394
I
Other income (expense):
Investment earnings 86,890 166,897 253,787
I
Special assessments 11,171 109 11,280
Bond interest (127,254) - (127,254)
Paying agent fees (1,964) - (1,964)
I
Total other income (expense) (31,157) 167,006 135,849
Net income before contributions and transfers 296,658 330,585 627,243
I
Contributions and transfers:
Contributions from private sources 635,765 888,586 1,524,351
Transfer in 299,725 299,725 1
Total contributions and transfers 935,490 888,586 1,824,076
Net income 1,232,148 1,219,171 2,451,319
I
Net Assets - January 1
14,000,428 19,914,742 33,915,170
Net Assets - December 31 $ 15,232,576 $ 21,133,913 $ 36,366,489
The accompanying notes are an integral part of these basic financial statements.
1
1
31 1
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
Year Ended December 31, 2006
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:
Transfer from capital project funds
Net cash flows from noncapital financing activities
Cash flows from capital and related financing activities:
Principal paid on revenue bonds
Proceeds from issuance of debt
Collection of special assessments
Interest and paying agent fees on revenue bonds
Acquisition of capital assets
Net cash flows from 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:
Decrease (increase) in receivables
Decrease (increase) in prepaid items
Increase (decrease) in payables
Net cash flows from operating activities
Water
Sewer
Totals
2006
$ 1,162,292 $ 1,369,295 $ 2,531,587
(356,659) (716,671) (1,073,330)
(152,176) (150,832) (303,008)
653,457 501,792 1,155,249
299,725
299,725
(295,000)
1,735,998
28,663
(151,334)
(4,302)
1,314,025
817
(52,442)
(51,625)
299,725
299,725
(295,000)
1,735,998
29,480
(151,334)
(56,744)
1,262,400
86,890 166,897 253,787
2,354,097 617,064 2,971,161
1,759,526 3,498,064 5,257,590
$ 4,113,623 $ 4,115,128 $ 8,228,751
$ 327,815
353,349
(12,880)
(216)
(14,611)
$ 653,457
- Water lines in the amount of $635,765 were contributed to the Water Fund in 2006.
- Sewer lines in the amount of $888,586 were contributed to the Sewer Fund in 2006.
The accompanying notes are an integral part of these basic financial statements.
32
$ 163,579
404,200
(22,407)
(44,991)
1,411
$ 501,792
$ 491,394
757,549
(35,287)
(45,207)
(13,200)
$ 1,155,249
CITY OF LINO LAKES, MINNESOTA
STATEMENT OF NET ASSETS - FIDUCIARY FUNDS
December 31, 2006
Assets
Cash and investments
Deposits receivable
Total assets
Liabilities
Accounts payable
Deposits payable
Total liabilities
The accompanying notes are an integral part of these financial statements.
33
1
Statement 10 1
1
Totals 1
2006 1
$ 1,103,463 I
10,520
$ 1,113,983 I
$ 17,213 1
1,096,770
$ 1,113,983 1
1
1
1
1
1
1
1
1
1
1
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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
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 fmancial 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 fmancial 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, 2006
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 activity 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 fmancial 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.
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.
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
35
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
B. BASIC FINANCIAL STATEMENTS (CONTINUED)
2. Fund Financial Statements (Continued)
Chain of Lakes YMCA
The Chain of Lakes YMCA fund accounts for construction costs related to infrastructure improvements
for the Chain of Lakes YMCA.
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 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.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
36
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 item. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connections 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 be authorized by
the City Council with fund (contingency) reserves or additional revenues.
5. Formal budgetary integration is employed as a management control device during the year for the
General Fund.
37
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, 2006
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
E. LEGAL COMPLIANCE — BUDGETS (CONTINUED)
6. Legal debt obligation indentures determine the appropriation level and debt service tax levies for
the Debt Service Funds. Supplementary budgets are adopted for the Proprietary Funds to
determine and calculate user charges. These debt service and budget amounts represent general
obligation bond indenture provisions and net income for operation and capital maintenance and are
not reflected in the financial statements.
7. A capital improvement program is reviewed periodically by the City Council for the Capital
Project Funds. However, appropriations for major projects are not adopted until the actual bid
award of the improvement. The appropriations are not reflected in the financial statements.
8. Expenditures may not legally exceed budgeted appropriations at the total fund level. Monitoring
of budgets is maintained at the expenditure category level (i.e., personal services, supplies; other
services and charges; capital outlay) within each activity.
9. The City Council may authorize transfer 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, 2006
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 2006 totaled
$745,501. 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 funding
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
1
1
1
1
1
1
1
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 of 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 fund balance
reserve 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, 2006
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 on
other financing source. 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
In the governmental fund financial statements, reservations of fund balance represent those
portions of fund equity not appropriable for expenditure or legally restricted by outside parties for
use for a specific purpose. Designated fund balances represent tentative plans for future use of
financial resources that are subject to change.
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.
41
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 2 DEPOSITS AND INVESTMENTS
A. 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.
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 departments 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, 2006 is
$1,597,527 and $2,028,444, 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 finial 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 rate "A" or better
• Bankers 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 agreement 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.
42
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
At December 31, 2006, the City's investment balances were as follows:
Cash Investments Held by Trustee —
Type Amount
Mutual Funds $ 118,583
The above mutual funds invest in U.S. Treasury Securities. These investments are held by an
escrow agent in accordance with escrow agreements established with the sale of the Lease Revenue
Bonds Series 1998A, the Public Project Revenue Refunding Bonds Series 1999C, and CIP
Refunding bonds 2006E. The proceeds of these issues were used to finance the construction of the
Civic Complex, to refund the 2000 through 2010 maturities of the City's 1990A Public Project
Revenue Bonds, and to partially refund the 1998A Civic Complex Lease Revenue Bonds.
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:
Type
Minnesota Municipal Money
Market Trust Fund
Commercial Paper
Government Agencies
Mutual Fund
Total
Credit Risk
Total
$ 737,598
12,660,093
9,579,318
252,572
$ 23,229,581
12 Months
or Less
13 to 24
Months
$ 737,598 $
12,660,093
5,731,449
252,572
$ 19,381,712
2,867,461
$ 2,867,461
25 to 60 More than
Months 60 Months
$ $
588,782 391,626
$ 588,782 $ 391,626
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
Commercial Paper
Commercial Paper
Government Agencies
Mutual Fund
Total
43
Credit
Quality Rating
Aa2
P -1
Not Rated
Aaa
Not Rated
Amount
$ 737,598
9,904,020
2,756,073
9,579,318
252,572
$ 23,229,581
1
1
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 2 DEPOSITS AND INVESTMENTS (CONTINUED)
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 fair 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 market value of instruments.
Credit Risk — 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.
Custodial Credit Risk
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.
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 percent of the City's total investments:
Type Amount Percentage
Federal Home Loan Bank $ 5,880,499 25.31%
Federal Home Loan Mortgage Corporation 2,877,466 12.39%
Mitsubishi Commercial Paper 2,561,206 11.03%
Panterra Commercial Paper 1,699,120 7.31%
General Electric Capital Services Commercial Paper 1,499,916 6.46%
44
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 3 CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2006 was as follows:
Governmental Activities:
Capital Assets, Not Being Depreciated
Land
Construction in Progress
Total Capital Assets, Not Being Depreciated
Capital Assets, Being Depreciated:
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Office Equipment and Furniture
Vehicles
Machinery and Shop Equipment
Other Equipment
Infrastructure
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Governmental Activities Capital Assets, Net
Beginning
Balance
Increases
$ 2,809,059 $ -
5,066,936
2,809,059 5,066,936
6,444,455
969,182
1,522,524
687,177
960,837
67,328,650
77,912,825
(1,687,931)
(540,024)
(780,907)
(435,771)
(496,365)
(31,330,103)
(35,271,101)
42,641,724
$ 45,450,783
52,415
159,555
389,288
83,967
2,659,864
3,345,089
(215,190)
(74,404)
(178,433)
(34,206)
(55,674)
(2,134,835)
(2,692,742)
652,347
$ 5,719,283
Depreciation expense was charged to governmental functions as follows:
Governmental Activities:
General Government
Public Safety
Public Services
Parks, Recreation and Forestry
Community Development
Total Depreciation Expense, Govemmental Activities
Beginning
Balance
Business -Type Activities:
Capital Assets, Not Being Depreciated
Construction in Progress
Total capital assets, not being depreciated
Capital Assets, Being Depreciated:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Capital Assets, Being Depreciated
Accumulated Depreciation for:
Buildings
Machinery and Shop Equipment
Water and Sewer Lines
Total Accumulated Depreciation
Total Capital Assets, Being Depreciated, Net
Business -Type Capital Assets, Net
$ 356,061
356,061
48,690
265,977
37,094,480
37,409,147
(48,690)
(204,063)
(6,744,631)
(6,997,384)
30,411,763
$ 30,767,824
45
$ 259,907
106,244
2,148,248
177,843
500
$ 2,692,742
Increases
Decreases
Ending
Balance
- $ 2,809,059
5,066,936
7,875,995
6,496,870
(69,655) 1,059,082
(184,187) 1,727,625
(30,399) 740,745
960,837
69,988,514
(284,241) 80,973,673
(1,903,121)
69,655 (544,773)
182,787 (776,553)
21,160 (448,817)
(552,039)
(33,464,938)
273,602 (37,690,241)
(10,639) 43,283,432
$ (10,639) $ 51,159,427
Decreases
Ending
Balance
$ $ (356,061) $
(356,061)
56,718
1,880,438
1,937,156
(9,388)
(748,161)
(757,549)
48,690
(3,829) 318,866
(1,627) 38,973,291
(5,456) 39,340,847
(48,690)
3,829 (209,622)
1,627 (7,491,165)
5,456 (7,749,477)
1,179,607 31,591,370
$ 1,179,607 $ (356,061) $ 31,591,370
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 4 CITY INDEBTEDNESS
City indebtedness at December 31, 2006 is composed of the following:
Final
Issue Maturity Interest Original
Date Date Rate Issue
Payable
12/31/2006
Governmental Activities:
General Obligation Bonds:
2004A Equipment Certificates 2/1/2004 12/31/2007 4.00% $ 274,000 $ 98,000
2005A Equipment Certificates 2/1/2005 12/31/2008 4.00% 107,000 72,000
2006A Equipment Certificates 2/1/2006 12/31/2009 4.00% 307,000 307,000
Civic Complex Lease Rev. Bonds, Series 1998A 8/1/1998 2/1/2019 4.20 % -5.35% 5,350,000 865,000
Public Project Revenue Ref. Bonds, Series 1999C 9/1/1999 2/1/2010 4.75 % -5.10% 980,000 385,000
G.O. Tax Abatement Bonds, Series 2006C 8/15/2006 2/1/2023 4.00 % -4.30% 2,460,000 2,460,000
G.O. Utility Revenue Bonds, Series 2006D 8/15/2006 2/1/2017 4.00% -4.15% 570,000 570,000
G.O. CIP Refunding Bonds, Series 2006E 11/1/2006 2/1/2018 4.00% 2,990,000 2,990,000
Total General Obligation Bonds 13,038,000 7,747,000
Special Assessment Bonds:
G.O. Improvement Bonds, Series 2002A 8/1/2002 2/1/2013 3.00 % -4.10% 645,000 355,000
G.O. Improvement Bonds, Series 2002B 8/1/2002 2/1/2013 3.20% -5.55% 2,110,000 1,580,000
G.O. Improvement Refunding Bonds, Series 2003A 12/1/2003 2/1/2019 3.00 % -4.10% 2,090,000 1,210,000
G.O. Improvement Bonds, Series 2003B 12/1/2003 2/1/2014 3.20 % -5.55% 250,000 225,000
G.O. Improvement and Utility Bonds, Series 2004A 11/15/2004 2/1/2020 1.90 % -4.45% 1,330,000 1,265,000
G.O. Improvement Bonds, Series 2005A 11/1/2005 2/1/2021 4.35% -5.15% 5,550,000 5,550,000
G.O. Improvement Refunding Bonds, Series 2005B 11/1/2005 2/1/2015 3.75 % -5.00% 3,755,000 3,755,000
Total Special Assessment Bonds 15,730,000 13,940,000
Total Bonds 28,768,000 21,687,000
Unamortized Bond Discounts (6,057) (18,523)
Unamortized Bond Premiums 179,797 157,530
Compensated Absences Payable N/A 584,764
Total Governmental Activities $ 28,941,740 $ 22,410,771
Business -Type Activities:
Revenue Bonds:
G.O. Water Revenue Bonds, Series 1996B 10/1/1996 2/1/2012 4.10 % -5.70% $ 3,320,000 $ 1,910,000
G.O. Water Revenue Refunding Bonds, Series 1999B 9/1/1999 2/1/2008 4.25 % -4.90% 680,000 220,000
G.O. Water Revenue Refunding Bonds, Series 2006F 11/1/2006 2/1/2012 3.55 % - 3.625% 1,740,000 1,740,000
Total Revenue Bonds 5,740,000 3,870,000
Unamortized Bond Discounts (4,002) (3,875)
Compensated Absences Payable N/A 31,042
Total Business -Type Activities $ 5,735,998 $ 3,897,167
46
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 4 CITY INDEBTEDNESS (CONTINUED)
The following is a schedule of changes in City indebtedness for the year ended December 31, 2006:
Governmental activities:
Bonded debt:
General Obligation
Special Assessment
Unamortized Bond Discounts
Unamortized Bond Premiums
Compensated Absences Payable
Total Governmental Activities
Business -Type Activities:
Revenue Bonds
Unamortized Bond Discounts
Compensated Absences Payable
Total Business -Type Activities
Payable
12/31/2005
Payable Due Within
Issues Payments 12/31 /2006 One Year
$ 5,335,000 $ 6,327,000 $ 3,915,000 $ 7,747,000 $ 553,000
19,405,000 - 5,465,000 13,940,000 1,420,000
(5,594) (13,635) (706) (18,523)
176,166 450 19,086 157,530 -
514,583 481,321 411,140 584,764 369,742
25,425,155 6,795,136 9,809,520 22,410,771 2,342,742
2,425,000
27,500
2,452,500
1,740,000 295,000 3,870,000
(4,002) (127) (3,875)
25,603 22,061 31,042
1,761,601 316,934 3,897,167
2,015,000
20,826
2,035,826
Total $ 27,877,655 $ 8,556,737 $ 10,126,454 $ 26,307,938 $ 4,378,568
All long -term bonded indebtedness outstanding at December 31, 2006 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.
Govemmental Activities Business -Type Activities
Principal Interest Principal Interest Total
Years ending December 31,
2007 $ 1,973,000 $ 896,348 $ 2,015,000 $ 107,437 $ 4,991,785
2008 1,699,000 844,898 325,000 61,546 2,930,444
2009 1,625,000 772,961 360,000 48,611 2,806,572
2010 1,460,000 702,373 375,000 35,471 2,572,844
2011 1,560,000 636,818 390,000 21,701 2,608,519
2012 -2016 7,700,000 2,100,156 405,000 7,341 10,212,497
2017 -2021 5,055,000 663,448 - 5,718,448
2022 - 2023 615,000 26,983 641,983
Total $ 21,687,000 $ 6,643,985 $ 3,870,000 $ 282,107 $ 32,483,092
Description and Restrictions of Long -Term 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 issued to finance various improvements and will be repaid
primarily from special assessments levied on the properties benefiting from the improvements. However,
some issues are partly financed by ad valorem levies.
47
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, 2006
Note 4 CITY INDEBTEDNESS (CONTINUED)
Public Project Revenue Bonds and Civic Complex Lease Revenue Bonds — These bonds were issued by the
Economic Development Authority (EDA) of Lino Lakes for the purpose of financing the construction of
public facilities. Pursuant to Minnesota Statutes and a lease purchase contract between the EDA and the
City of Lino Lakes, a Trust Indenture between the EDA and a regional bank has been established for the
purpose of financing payment of these bonds. The City has pledged rental payments in amounts equal to
the debt service requirements and plans to annually appropriate City funds available for this purpose. As
required by bond covenant, a reserve account has been established with a trustee, which is to be used to pay
principal and interest on the bonds in the event that other available resources are inadequate to do so.
On November 1, 2006 the City issued $2,990,000 of General Obligation Capital Improvement Plan
Refunding Bonds, Series 2006E. The proceeds were used on December 1, 2006 to prepay a portion of the
February 1, 2010 sinking fund payment and the February 1, 2011 through February 1, 2019 sinking fund
payments (representing a portion of the February 1, 2011 term bond, and all of the February 1, 2013 and
February 1, 2019 term bonds) of the Lino Lakes Economic Development Authority's Lease Revenue Bonds,
Series 1998A. This partial refunding reduced the City's total future debt service payments by approximately
$353,728, and resulted in a present value savings of approximately $237,273.
On November 1, 2006 the City issued $1,740,000 of General Obligation Water Revenue Refunding Bonds,
Series 2006F. The proceeds will be used to prepay the February 1, 2008 through February 1, 2012
maturities of the City's General Obligation Water Revenue Bonds, Series 1996B. This "crossover
refunding" reduced the City's total future debt service payments by approximately $73,160, and resulted in a
present value savings of approximately $75,521.
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 2006 is computed as
follows:
Market value
Applicable percentage
Debt Limit
12/31/06
$ 1,734,317,800
2.0%
34,686,356
Amount of debt applicable to debt limit:
Total bonded debt 25,557,000
Less: Special assessment bonds (13,940,000)
Public project revenue bonds (385,000)
Tax abatement bonds (2,460,000)
Utility revenue bonds (570,000)
Revenue bonds (3,870,000)
Total debt applicable to debt limit 4,332,000
Legal debt margin $ 30,354,356
48
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 Public Employees Retirement Fund (PERF) 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.
PERF 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 percent
of average salary for each of the first 10 years of service and 2.7 percent for each remaining year. The
annuity accrual rate for a Coordinated Plan member is 1.2 percent of average salary for each of the first
10 years and 1.7 percent for each remaining year. Under Method 2, the annuity accrual rate is 2.7
percent of average salary for Basic Plan members and 1.7 percent for Coordinated Plan members for
each year of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of
service.
For PERF 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 PERF and PEPFF. That report may be obtained on the intemet 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.
49
1
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, 2006
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. PERF Basic Plan members and
Coordinated Plan members are required to contribute 9.10% and 5.50% respectively, of their annual
covered salary. Contribution rates in the Coordinated Plan will increase in 2007 to 5.75 %. PEPFF
members were required to contribute 7.0% of their annual covered salary in 2006. That rate will
increase to 7.8% in 2007. The City is required to contribute the following percentages of annual
covered payroll: 11.78% for Basic Plan PERF members, 6.0% for Coordinated Plan PERF members,
and 10.5% for PEPFF members. Employer contribution rates for the Coordinated Plan and PEPFF will
increase to 6.25% and 11.7 %, respectively, effectively January 1, 2007. The City's contributions to the
Public Employees Retirement Fund for the years ending December 31, 2006, 2005, and 2004 were
$156,599, $136,230, and $128,263, respectively. The City's contributions to the Public Employees
Police & Fire Fund for the years ending December 31, 2006, 2005, and 2004 were $187,212,
$158,282, and $146,820, 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, 2006 as follows:
Fund Balance
Deficit
Dedicated Parks $ (735,240)
Tax Increment Financing 1 -11 (23,586)
CSAH 14/8 Reconstruction Project (24,730)
The City intends to fund these deficits through future tax levies, special assessment levies, tax
increments, transfers from other funds, and various other sources.
B. Expenditures in Excess of Budget
The following fund had expenditures in excess of budget for 2006:
Budget Actual Excess
Program Recreation Special Revenue Fund $ 163,840 $ 182,690 $ (18,850)
50
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 9 CONTINGENCIES
Litigation - The City attorney has indicated that existing and pending lawsuits, claims and other actions in
which the City is a defendant are either covered by insurance; of an immaterial amount; or, in the judgment
of the City attorney, remotely recoverable by plaintiffs.
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 fmancial statements of the individual fund types included herein or on the
overall financial position of the City at December 31, 2006.
Note 10 DEFERRED AD VALOREM TAX LEVIES - BONDED DEBT
General Obligation bond issues sold by the City are fmanced by ad valorem tax levies and special
assessment bond issues sold by the City are partially fmanced by ad valorem tax levies in addition to special
assessments levied against the benefiting properties. When a bond issue to be fmanced 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, 2006.
Future scheduled tax levies for all bonds outstanding at December 31, 2006 totaled $23,527,497.
Note 11 DESIGNATIONS AND RESERVATIONS OF FUND EQUITY
At December 31, 2006, the City had designated and reserved portions of its various fund equities through
legal restriction and City Council authorization. Major fund equity appropriations at
December 31, 2006 are shown on the various balance sheets as segregations of the fund equity. A summary
of such designations and reservations at December 31, 2006 is as follows:
Governmental Activity:
General Fund
Reserved for Prepaid Items $ 153,009
Designated for Cash Flow Reserve 5,337,225
Improvement Bonds of 2005A
Reserved for Debt Retirement 585,551
Area and Unit Charge
Reserved for Advance to Other Funds 957,112
Designated for Capital Improvements 1,642,478
Other Nonmajor Governmental Funds
Reserved for Prepaid Items 1,813
Reserved for Debt Retirement 3,407,401
Reserved for Environmental Improvements 100,000
Designated for Recreation Purposes 82,385
Designated for Capital Improvements 1,552,153
51
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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 2006 was $113,365.
Note 13 INTERFUND RECEIVABLE AND PAYABLES
Individual fund receivable and payable balances at December 31, 2006 are as follows:
Receivable
Governmental Activity:
General Fund
Other Nonmajor Governmental Funds
Payable
$ 47,869 $
$ 47,869
47,869
$ 47,869
Interfund receivable and payable balances represent the elimination of negative cash between funds.
Note 14 INTERFUND TRANSFERS
Individual fund transfers for fiscal year 2006 are as follows:
Governmental Activity:
General Fund
Area and Unit Charge
Legacy Woods Edge Improvement Fund
Chain of Lakes YMCA
Other Nonmajor Governmental Funds
Total Governmental Activity
Business -Type Activity:
Water Fund
Transfer In
5,811,452
5,811,452
299,725
$ 6,111,177
Transfer Out
$ (623,311)
(1,113,670)
(18,044)
(4,356,152)
(6,111,177)
$ (6,111,177)
Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of
the transfers are to provide funding for capital improvement projects, capital outlay, and debt service as
well as open and close funds.
52
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
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.
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
fmancial 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, 2006, two series of
Industrial Revenue Bonds were outstanding with aggregate remaining principal balances of $1,435,000 and
$2,400,000, respectively, and two series Commercial Revenue Notes were outstanding with an aggregate
remaining principal balance of $3,500,000 and $500,000, respectively.
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 continues through
June 30, 2009 and requires payments of $110 per square foot over the lease term for a total of $1,200,000.
The schedule of remaining payments is as follows:
Amount
2007 $ 112,500
2008 112,500
2009 75,000
Total $ 300,000
53
1
1
CITY OF LINO LAKES, MINNESOTA
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
Note 17 LEASE COMMITMENT (CONTINUED)
The prorated carrying value of the building being leased is as follows:
Building $ 929,970
Less Accumulated Depreciation (216,993)
Net $ 712,977
Note 18 JOINT FIRE VENTURE
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.
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 2006, the City of Lino Lakes' contributions to the District were as follows:
Operating $ 412,726
Capital 68,800
Total $ 481,526
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, 2006 are as follows:
Total Assets $ 922,572
Total Liabilities 72,267
Total Net Assets 850,305
Total Operating Revenue 623,113
Total Operating Expenses 620,213
54
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, 2006
Statement 11
Page 1 of 7
Revenue:
General property taxes:
Current and delinquent $ 6,752,626 $ 6,752,626 $ 6,092,038 $ (660,588)
Fiscal disparities - - 658,186 658,186
Total general property taxes 6,752,626 6,752,626 6,750,224 (2,402)
Licenses and permits:
Business 37,950 37,950 39,621 1,671
Non - business 831,150 831,150 541,961 (289,189)
Total licenses and permits 869,100 869,100 581,582 (287,518)
Intergovernmental:
Federal:
Other 25,000 25,000 16,127 (8,873)
State:
Market Value Credit 3,579 3,579
Police state aid 130,000 130,000 159,105 29,105
MSA maintenance 160,000 160,000 147,324 (12,676)
Other 15,000 15,000 11,880 (3,120)
County/Regional:
Solid waste 35,000 35,000 32,828 (2,172)
Other 5,000 5,000 27,943 22,943
Total intergovernmental 370,000 370,000 398,786 28,786
Special Assessments:
Penalties and Interest 5,000 5,000 689 (4,311)
Charges for services:
General government 27,500 27,500 28,866 1,366
Planning/engineering 15,000 15,000 8,200 (6,800)
Fees retained from collection for
other governments - SAC /surcharge 4,000 4,000 4,139 139
Administrative charge - other funds 55,000 55,000 50,000 (5,000)
Aerial map charge - other funds 12,000 12,000 12,330 330
Public safety 86,000 91,600 178,304 86,704
Total charges for services 199,500 205,100 281,839 76,739
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Fines and forfeits 110,000 110,000 101,518 (8,482)
Investment earnings 80,000 80,000 192,046 112,046
Refunds and reimbursements 20,000 20,000 14,279 (5,721)
Miscellaneous:
Gas franchise fees 115,000 115,000 113,365 (1,635)
Cable TV 24,000 24,000 27,043 3,043
Donations 5,000 7,730 2,730 (5,000)
Other 23,746 23,746
Total miscellaneous 144,000 146,730 166,884 20,154
Total Revenue 8,550,226 8,558,556 8,487,847 (70,709)
55
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Statement 11
Page 2 of 7
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Expenditures:
General government:
Mayor and council:
Current
Personal services $ 41,521 $ 41,521 $ 34,172 $ 7,349
Supplies 400 400 538 (138)
Other services and charges 78,590 78,590 79,531 (941)
Contractual Services 34,246 34,246 28,437 5,809
Total mayor and council 154,757 154,757 142,678 12,079
Elections:
Current
Personal services 24,050 24,050 17,226 6,824
Supplies 100 100 337 (237)
Other services and charges 400 400 1,679 (1,279)
Contractual Services 1,000 1,000 175 825
Capital outlay 18,000 18,000 2,919 15,081
Total elections 43,550 43,550 22,336 21,214
Administration:
Current
Personal services 441,351 441,351 418,563 22,788
Supplies 10 (10)
Other services and charges 20,100 20, 100 19,637 463
Contractual Services 10,800 10,800 15,787 (4,987)
Total administration 472,251 472,251 453,997 18,254
Finance:
Current
Personal services 283,231 283,231 275,841 7,390
Supplies 1,500 1,500 1,040 460
Other services and charges 58,700 58,700 49,882 8,818
Contractual Services 80,900 80,900 79,153 1,747
Capital outlay 16,500 16,500 1,835 14,665
Total finance 440,831 440,831 407,751 33,080
Cable TV:
Current
Personal services 3,116 3,116 1,985 1,131
Supplies 50 50 - 50
Capital outlay 500 500 467 33
Total cable TV 3,666 3,666 2,452 1,214
Consultants:
Current
Legal 178,080 178,080 155,639 22,441
56
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
2006
Statement 11
Page 3 of 7
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
General government: (continued)
Engineering /planning:
Current
Contractual services $ 245,000 $ 245,000 $ 231,568 $ 13,432
Total engineering/planning 245,000 245,000 231,568 13,432
Senior Service
Current
Personal services 29,173 29,173 30,493 (1,320)
Other services and charges 1,150 1,150 1,820 (670)
Total charter commission 30,323 30,323 32,313 (1,990)
Charter commission:
Current
Other services and charges 1,875 1,875 2,082 (207)
Total charter commission 1,875 1,875 2,082 (207)
General government buildings:
Current
Personal services 91,587 91,587 81,444 10,143
Supplies 42,500 42,500 45,804 (3,304)
Other services and charges 302,880 302,880 279,722 23,158
Contractual services 29,000 29,000 30,186 (1,186)
Total general government buildings 465,967 465,967 437,156 28,811
Total general government
2,036,300 2,036,300 1,887,972 148,328
57
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Public safety:
Police:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total police
Fire protection:
Current
Contractual services
Building inspection:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total building inspection
Total public safety
Public works:
Streets:
Current
Personal services
Supplies
Other services and charges
Contractual services
Total streets
Fleet:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total fleet
Statement 11
Page 4 of 7
2006
Original
Budget
$ 2,427,227
37,841
82,940
23,250
26,826
2,598,084
411,100
Final
Budget
$ 2,427,227
46,171
82,940
23,250
26,826
2,606,414
411,100
Variance with
Final Budget
Actual Positive (Negative
$ 2,363,910
50,688
109,690
39,752
33,512
2,597,552
412,726
308,159 308,159 283,829
1,630 1,630 536
27,575 27,575 19,416
2,600 2,600 33,612
1,000 1,000 3,129
340,964 340,964 340,522
3,350,148 3,358,478 3,350,800
492,800
104,500
67,690
28,500
693,490
91,213
158,000
44,880
2,700
6,000
302,793
Total public works 996,283
58
492,800
104,500
67,690
28,500
693,490
91,213
158,000
44,880
2,700
6,000
302,793
996,283
442,582
90,436
63,037
43,881
639,936
100,479
189,426
51,696
1,969
5,492
349,062
988,998
$ 63,317
(4,517)
(26,750)
(16,502)
(6,686)
8,862
(1,626)
24,330
1,094
8,159
(31,012)
(2,129)
442
7,678
50,218
14,064
4,653
(15,381)
53,554
(9,266)
(31,426)
(6,816)
731
508
(46,269)
7,285
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
2006
Statement 11
Page 5of7
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Parks and recreation:
Parks:
Current
Personal services $ 455,713 $ 455,713 $ 438,001 $ 17,712
Supplies 42,000 42,000 41,652 348
Other services and charges 36,110 36,110 40,956 (4,846)
Contractual services 10,950 10,950 12,742 (1,792)
Total parks 544,773 544,773 533,351 11,422
Recreation:
Current
Personal services 225,481 225,481 218,196 7,285
Supplies 2,500 2,500 1,406 1,094
Other services and charges 14,600 14,600 5,379 9,221
Contractual services 800 800 1,147 (347)
Total recreation 243,381 243,381 226,128 17,253
Total parks and recreation
788,154 788,154 759,479 28,675
Conservation of natural resources:
Forestry:
Current
Personal services 30,351 30,351 29,863 488
Supplies 1,400 1,400 1,030 370
Other services and charges 1,025 1,025 355 670
Contractual services 4,750 4,750 5,325 (575)
Capital outlay 5,000 5,000 566 4,434
Total forestry 42,526 42,526 37,139 5,387
Environmental:
Current
Personal services 61,852 61,852 59,966 1,886
Supplies 700 700 470 230
Other services and charges 9,765 9,765 6,306 3,459
Contractual services 2,300 2,300 432 1,868
Capital outlay 1,750 1,750 1,750 -
Total environmental 76,367 76,367 68,924 7,443
59
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Conservation of natural resources: (continued)
Solid waste abatement:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total solid waste abatement
Total conservation of natural resources
Community Development:
Community Development:
Current
Personal services
Supplies
Other services and charges
Contractual Services
Capital outlay
Economic Development:
Current
Personal services
Supplies
Other services and charges
Contractual services
Total economic development
Planning and zoning commission:
Current
Personal services
Supplies
Other services and charges
Contractual services
Capital outlay
Total planning and zoning commission
Total community development
Total Expenditures
Revenue over Expenditures
Statement 11
Page 6 of 7
1
1
1
2006
I
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative i
$ 26,749 $ 26,749 $ 27,886 $ (1,137)
I
- - 50 (50)
2,200 2,200 746 1,454
16,400 16,400 11,224 5,176 '
5,000 5,000 5,000
50,349 50,349 39,906 10,443
169,242 169,242 145,969 23,273
I
214,573 214,573 206,278 8,295 II
200 200 62 138
5,980 5,980 8,276 (2,296)
I
1,300 1,300 640 660
600 600 241 359
222,653 222,653 215,497 7,156
1
83,428 83,428 80,452 2,976
200 200 201 (1)
31,600 31,600 9,551 22,049
121,110 121,110 120,661 449
236,338 236,338 210,865 25,473
1
155,653 155,653 149,802 5,851
250 250 45 205
24,845 24,845 51,927 (27,082)
37,250 37,250 55,141 (17,891)
3,500 3,500 6,615 (3,115)
221,498 221,498 263,530 (42,032)
680,489 680,489 689,892 (9,403)
8,020,616 8,028,946 7,823,110 205,836
529,610 529,610 664,737 135,127
1
60
CITY OF LINO LAKES, MINNESOTA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2006
Statement 11
Page 7 of 7
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative
Other financing sources (uses):
Transfer in $ 39,000 $ 39,000 $ - $ (39,000)
Transfer out (586,610) (586,610) (623,311) (36,701)
Total other financing sources (uses) (547,610) (547,610) (623,311) (75,701)
Net increase (decrease) in fund balance $ (18,000) $ (18,000) 41,426 $ 59,426
Fund Balance - January 1 5,448,808
Fund balance - December 31 $ 5,490,234
61
CITY OF LINO LAKES, MINNESOTA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2006
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
General government
Senior service $ 30,323 $ 32,313 $ (1,990)
Charter commission 1,875 2,082 (207)
Public safety
Fire protection 411,100 412,726 (1,626)
Public works
Fleet 302,793 349,062 (46,269)
Community development
Planning and zoning commission 221,498 263,530 (42,032)
62
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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 three 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.
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.
SAC Revolving - to account for refunds from the Metropolitan Council Environmental Service for
properties that paid Sewer Area Charges (SAC) that will be collected in the future.
Interim Construction - to account for the construction of public improvements.
Town Center Project and Infrastructure Funds - to account for costs associated with the construction of
the City Town Center project.
Tax Increment Funds - to account for development projects financed with tax increments.
Capital Project Funds (Continued)
Birch Hodgson Street Improvement Fund — to account for costs to improve the intersection at Birch Street and
Hodgson Road.
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.
CSAH 14/8 Reconstruction Fund — established to account for the costs associated with the reconstruction of County
and State Highways 14 and 8.
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.
1
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Special Revenue Debt Service
Economic Special Improvement Improvement
Development Program Revenue Bonds of Bonds of
Authority Recreation Subtotal 1998A 1998B
Assets
Cash and investments $ $ 82,117 $ 82,117 $ - $ 1
Cash and investments
with escrow agent
Accrued Interest Receivable -
Accounts receivable 574 574
Due from other governmental units
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred - Due from County - - -
Prepaid Items 1,813 1,813
Total assets $ $ 84,504 $ 84,504 $ $
Liabilities and Fund Balance 1
Liabilities:
Interfund payable $ S - $ - $ $
Accounts payable 123 123
Salaries Payable 183 183
Contracts and retainage payable - -
Due to Other Governments
Advances from Other Funds
Deferred revenue
Total liabilities 306
306
Fund balance (deficit):
Reserved for Prepaid Items 1,813 1,813
Reserved for Debt Retirement - -
Reserved for Environmental Improvement
Unreserved:
Designated:
Recreation Programs 82,385 82,385
Capital improvements - -
Undesignated
Total fund balance (deficit) 84,198 84,198
Total liabilities and fund balance $ $ 84,504 $ 84,504 $ $ 1
1
1
63 1
Statement 12
Page 1 of 4
Debt Service (continued)
Lease Improvement Public Project Improvement
Certificates Revenue Refunding Refunding Improvement Improvement Refunding
of Bonds Bonds Bonds Bonds of Bonds of Bonds of
Indebtedness of 1998A of 1999A of 1999C 2002A 2002B 2003A
$ 97,835 $ 283,329 $ $ 330,982 $ 434,031 $ 1,159,675 $ 28,603
4,681
1 ,732
87,202
346
56,250
5,424
2,045
11,042
2,062
746
1,257 - 4,384
110,399 543,741 237,450
- 2,826 1,131
$ 104,248 $ 434,596 $ $ 344,832 $ 545,687 $ 1,706,242 $ 271,568
4,681
4,681
5,424 2,062 111,656 543,741 241,834
5,424 2,062 111,656 543,741 241,834
99,567 429,172 342,770 434,031 1,162,501
29,734
99,567 429,172 342,770 434,031 1,162,501 29,734
fi 104,248 $ 434,596 $ $ 344,832 $ 545,687 $ 1,706,242 $ 271,568
64
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Debt Service (continued)
Improvement and Improvement Tax Utility
Improvement Utility Revenue Refunding Abatement Revenue
Bonds of .Bonds of Bonds of Bonds Bonds
2003B 2004A 2005B 2006C 2006D
Assets
1
1
1
1
Cash and investments $ 97,529 $ 303,496 $ 333,929 $ 70,926 $ 51,608
Cash and investments
with escrow agent -
Accrued Interest Receivable
Accounts receivable
Due from other governmental units -
Taxes receivable:
Delinquent 326 2,437 - -
Due from County 136 913 - -
Delinquent tax increment -
Special assessments receivable:
Delinquent - 1,566 - - '
Deferred 46,610 374,909 381,557 - 141,334
Due from County - - 540 -
Prepaid Items
Total assets $ 144,601 $ 678,405 $ 720,942 $ 70.926 $ 192,942
Liabilities and Fund Balance
Liabilities:
Interfund payable
Accounts payable
Salaries Payable
Retainage payable
Due to Other Governments
Advances from Other Funds
Deferred revenue
Total liabilities
46,936 374,909 385,560 141,334
46,936 374,909 385,560 141,334
Fund balance (deficit):
Reserved for Prepaid Items - -
Reserved for Debt Retirement 97,665 303,496 335,382 70,926 51,608
Reserved for Environmental Improvement - _
Unreserved:
Designated:
Recreation Programs
Capital improvements
Undesignated
Total fund balance (deficit) 97,665 303,496 335,382 70,926 51,608
Total liabilities and fund balance $ 144,601 $ 678,405 $ 720,942 $ 70,926 $ 192,942
65
3
1
1
1
1
1
1
1
1
1
Statement 12
Page 2 of 4
Debt Service (continued) Capital Projects
CIP
Refunding Debt Capital Capital Closed
Bonds Service Improvement Equipment Bond Street
2006E Subtotal Projects Revolving Fund Fund Reconstruction Sealcoating
$ 30,210 $ 3,222,153 $ 1,111,500 $ 47,018 $ 1,040,230 $ 601,393 $ 222,708
20,339
118,583
346
56,250
14,930
5,572
7,207 - - 80
1,836,000 18,346 1,040
4,497 - 37 - -
$ 50,549 $ 5,265,538 $ 1,111,500 $ 47,018 $ 1,058,613 $ 601,393 $ 223,828
1,858,137
1,858,137
50,549 3,407,401
- $ - $ $
10,147 12,566
10,147
18,346 1,120
30,912 1,120
- - 601,393 222,708
1,111,500 36,871 1,027,701 - -
50,549 3,407,401 1,111,500 36,871 1,027,701 601,393 222,708
$ 50,549 $ 5,265,538 $ 1,111,500 $ 47,018 $ 1,058,613 $ 601,393 $ 223,828
66
1
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Capital Projects (continued)
Surface Town Town
Water SAC Interim Center Center
Management Revolving Construction Project Infrastructure
Assets
Cash and investments $ 236,924 $ 54,139 $ 294,253 $ 295,700 $ 23,202
Cash and investments
with escrow agent
Accrued Interest Receivable
Accounts receivable -
Due from other governmental units 5,000
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent 3,902
Deferred 423,203
Due from County 207
Prepaid Items -
Total assets $ 669,236 $ 54,139 $ 294,253 $ 295,700 $ 23,202
Liabilities and Fund Balance
Liabilities:
Interfund payable $ - $ $ $ $ -
Accounts payable 17,590 749 -
Salaries Payable - -
Retainage payable 2,418 -
Due to Other Governments
Advances from Other Funds
Deferred revenue 427,105
Total liabilities 447,113 749
Fund balance (deficit):
Reserved for Prepaid Items
Reserved for Debt Retirement
Reserved for Environmental Improvement -
Unreserved:
Designated:
Recreation Programs - -
Capital improvements 222,123 - 294,253 - 23,202
Undesignated - 53,390 - 295,700 -
Total fund balance (deficit) 222,123 53,390 294,253 295,700 23,202
Total liabilities and fund balance $ 669,236 $ 54,139 $ 294,253 $ 295,700 $ 23,202
1
67 1
Statement 12
Page 3 of 4
Capital Projects (Continued)
Tax Tax Tax Tax Tax
Increment Increment Increment Increment Increment Birch Street
Financing Financing Financing Financing Financing Hodgson Road Dedicated
1 -4 1 -5 1 -9 1 -10 1 -11 Improvement Parks
35,470 $ 34,500 $ 120,436 $ 64,179 $
1,075
82
508
$ 13,559 $ 228,390
35,470 $ 34,500 $ 121,593 $ 64,179 $ 508 $ 13,559 $ 228,390
$ $ $ $ 23,139 $ $
369 816 395 447
6,518
1,822 - -
957,112
82 508 -
2,191 898 395 24,094 963,630
35,470 32,309 120,695 - -
- - - 63,784 (23,586) 13,559 (735,240)
35,470 32,309 120,695 63,784 (23,586) 13,559 (735,240)
35,470 $ 34,500 $ 121,593 $ 64,179 $ 508 $ 13,559 $ 228,390
68
CITY OF LINO LAKES, MINNESOTA
COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS
December 31, 2006
Assets
Cash and investments
Cash and investments
with escrow agent
Accrued Interest Receivable
Accounts receivable
Due from other governmental units
Taxes receivable:
Delinquent
Due from County
Delinquent tax increment
Special assessments receivable:
Delinquent
Deferred
Due from County
Prepaid Items
Total assets
Liabilities and Fund Balance
Capital Projects
Office
Equipment CSAH 14/8 Capital
Municipal Revolving Reconstruction Projects
State Aid Fund Project Subtotal
$ 133,620 $ 112,381 $ - $ 4,669,602
5,000
1,075
590
3,982
442,589
244
$ 133,620 $ 112,381 $ - $ 5,123,082
Liabilities:
Interfund payable $ $ $ 24,730 $ 47,869
Accounts payable - 43,079
Salaries Payable
Retainage payable - 8,936
Due to Other Governments - 1,822
Advances from Other Funds - - 957,112
Deferred revenue - 447,161
Total liabilities 24,730 1,505,979
Fund balance (deficit):
Reserved for Prepaid Items
Reserved for Debt Retirement
Reserved for Environmental Improvement
Unreserved:
Designated:
Recreation Programs
Capital improvements - 1,552,153
Undesignated 133,620 112,381 (24,730) 2,064,950
Total fund balance (deficit) 133,620 112,381 (24,730) 3,617,103
Total liabilities and fund balance $ 133,620 $ 112,381 $ - $ 5,123,082
Permanent
Fund
Statement 12
Page 4 of 4
Foxborough
Environment Total
Fund 2006
$ 105,378 $ 8,079,250
118,583
346
56,824
5,000
14,930
6,647
590
11,189
2,278,589
4,741
1,813
$ 105,378 $ 10,578,502
$ 47,869
43,202
183
8,936
1,822
957,112
2,305,298
3,364,422
1,813
3,407,401
100,000 100,000
82,385
1,552,153
5,378 2,070,328
105,378 7,214,080
$ 105,378 $ 10,578,502
70
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Revenue:
General property taxes
Tax increments
Intergovernmental
Special assessments
Charges for services
Investment earnings
Refunds and reimbursements
Miscellaneous
Total revenue
Special Revenue
Economic
Development
Authority
Expenditures:
Current:
General govemment: 201
Public works:
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Principal
Interest and fiscal charges
Total expenditures 201
Revenue over (under) expenditures (201)
Other financing sources (uses):
Transfer in 201
Transfer out
Sale of property
Issuance of debt
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses) 201
Net increase (decrease) in fund balance
Fund balance (deficit)
Beginning of year
Program
Recreation
185,883
4,526
190,409
182,690
182,690
7,719
Fund balance (deficit) - December 31 $ $
Special
Revenue
Subtotal
185,883
4,526
190,409
201
182,690
182,891
7,518
201
Debt Service
Improvement
Bonds of
1998A
42,328
1,029
43,357
290,000
68,588
358,588
(315,231)
333,265
(2,570,000)
201
7,719 7,719
76,479 76,479
84,198 $ 84,198 $
71
(2,236,735)
(2,551,966)
2,551,966
Improvement
Bonds of
1998B
$ 146,359
58,106
17,244
221,709
120,000
33,726
153,726
67,983
(445,582)
(1,310,000)
(1,755,582)
(1,687,599)
1,687,599
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3
1
Statement 13
Page 1 of 4
Debt Service (continued)
Lease Improvement Public Project Improvement
Certificates Revenue Refunding Refunding Improvement Improvement Refunding
of Bonds Bonds Bonds Bonds of Bonds of Bonds of
Indebtedness of 1998A of 1999A of 1999C 2002A 2002B 2003A
$ 278,846 $ 329,430 $ $ 120,031 $ $ $
- - - - - 871
34 38 323 16 13,899 894,537 100,764
6,296 26,371 11,479 18,689 24,876
112,500
285,176 468,339 323 131,526 32,588 919,413 101,635
255,000 210,000 355,000 105,000 100,000 185,000 445,000
21,723 283,911 8,542 23,805 14,745 85,355 45,882
276,723 493,911 363,542 128,805 114,745 270,355 490,882
8,453 (25,572) (363,219) 2,721 (82,157) 649,058 (389,247)
3,389,387 359,680 - 121,000
(478,207) (163)
(3,345,000)
(433,820) 359,517 121,000
8,453 (459,392) (3,702) 2,721 (82,157) 649,058 (268,247)
91,114 888,564 3,702 340,049 516,188 513,443 297,981
$ 99,567 $ 429,172 $ $ 342,770 $ 434,031 $ 1,162,501 $ 29,734
72
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Revenue:
General property taxes
Tax increments
Intergovernmental
Special assessments
Charges for services
Investment earnings
Refunds and reimbursements
Miscellaneous
Total revenue
Expenditures:
Current:
General government:
Public works:
Parks, recreation and forestry
Capital outlay:
General government
Public safety
Public works
Parks, recreation and forestry
Debt service:
Debt Service (continued)
Improvement and Improvement Tax Utility
Improvement Utility Revenue Refunding Abatement Revenue
Bonds of Bonds of Bonds of Bonds Bonds
2003B 2004A 2005B 2006C 2006D
$ 21,853 $
5,868
3,546
31,267
70,950
11,785 167
3,104
45,238
955
82,735 167 3,104 46,193
Principal 25,000 65,000 - -
Interest and fiscal charges 11,450 46,880 117,919 512
Total expenditures 36,450 111,880 117,919 512
Revenue over (under) expenditures (5,183) (29,145) (117,752) 2,592
Other financing sources (uses):
Transfer in 445,582 18,044
Transfer out -
Sale of property
Issuance of debt 50,290
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses)
1
1
1
1
1
1
1
1
46,193
5,415
445,582 68,334 5,415
Net increase (decrease) in fund balance (5,183) (29,145) 327,830 70,926 51,608
Fund balance (deficit)
Beginning of year 102,848 332,641 7,552
Fund balance (deficit) - December 31 $ 97,665 $ 303,496 $ 335,382 $ 70,926 $ 51,608
73
1
1
1
1
1
1
1
Statement 13
Page 2 of 4
Debt Service (continued) Capital Projects
CIP
Refunding Debt Capital Capital Closed
Bonds Service Improvement Equipment Bond Street
2006E Subtotal Projects Revolving Fund Fund Reconstruction Sealcoating
$ $ 896,519 $ - $ $ - $ $
871 -
1,232,101 5,717 45,360 115
11,383 136,924 46,563 53 44,558 26,530 8,707
- - - - - 61,180
112,500 130,369 -
11,383 2,378,915 176,932 53 50,275 71,890 70,002
7,653 16,140 -
- - 75,000 299,632
77,771
211,911
324,444
- 2,155,000
40,104 803,142
40,104 2,958,142 85,424 536,355 16,140 75,000 299,632
(28,721) (579,227) 91,508 (536,302) 34,135 (3,110) (229,630)
478,207 5,145,165 239,423 163 300,000
(3,389,387) (4,313,339) (42,813)
2,000 26,750
2,990,000 3,045,705 - 307,000
450 450 -
(7,225,000)
79,270 (3,347,019) (40,813) 573,173 163 300,000
50,549 (3,926,246) 50,695 36,871 34,298 (3,110) 70,370
7,333,647 1,060,805 993,403 604,503 152,338
$ 50,549 $ 3,407,401 $ 1,111,500 $ 36,871 $ 1,027,701 $ 601,393 $ 222,708
74
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Revenue:
General property taxes
Tax increments
Intergovernmental
Special assessments
Charges for services
Investment earnings
Refunds and reimbursements
Miscellaneous
Total revenue
Capital Projects (Continued)
Surface Town Town
Water SAC Interim Center Center
Management Revolving Construction Project Infrastructure
173,875
9,357
183,232
15,657 12,633 12,696 996
15,657 12,633 12,696 996 1
1
1
1
1
1
1
Expenditures:
Current:
General government: - 334,244
Public works: 210,641
Parks, recreation and forestry -
Capital outlay:
General government
■ Public safety
Public works 126
Parks, recreation and forestry -
Debt service:
Principal
Interest and fiscal charges -
Total expenditures 210,767 334,244
Revenue over (under) expenditures
Other financing sources (uses):
Transfer in
Transfer out
Sale of property
Issuance of debt
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses)
(27,535) (318,587) 12,633 12,696 996
Net increase (decrease) in fund balance (27,535) (318,587) 12,633 12,696 996
Fund balance (deficit)
Beginning of year 249,658 371,977 281,620 283,004 22,206
Fund balance (deficit) - December 31 $ 222,123 $ 53,390 $ 294,253 $ 295,700 $ 23,202
75
1
1
1
1
1
1
1
Statement 13
Page 3 of 4
Capital Projects (Continued)
Tax Increment Tax Increment Tax Increment Tax Increment Tax Increment Birch Street
Financing Financing Financing Financing Financing Hodgson Road Dedicated
1 -4 1 -5 1 -9 1 -10 1 -11 Improvement Parks
$ $ $ - $ - $
39,120 210,050 206,483
1,524 1,487
1,524
4,192
1,689
- $ $
867 -
50,000
287
12,553
209,060
40,607 214,242 208,172 867 50,287 221,613
37,565 176,502 165,099 476
134,558
26 - - - 117,425
26 37,565 176,502 165,099 476 251,983
1,498 3,042 37,740 43,073 391 50,287 (30,370)
30,000
30,000
1,498 3,042 37,740 43,073 391 50,287 (370)
33,972 29,267 82,955 20,711 (23,977) (36,728) (734,870)
$ 35,470 $ 32,309 $ 120,695 $ 63,784 $ (23,586) $ 13,559 $ (735,240)
76
CITY OF LINO LAKES, MINNESOTA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - NONMAJOR GOVERNMENTAL FUNDS
Year Ended December 31, 2006
Capital Projects
Office
Equipment CSAH 14/8 Capital
Municipal Revolving Reconstruction Projects
State Aid Fund Project Subtotal
Revenue:
General property taxes $ $ $ $ -
Tax increments - 456,520
Intergovernmental 247,588 297,588
Special assessments - 225,067
Charges for services - -
Investment earnings 2,172 2,302 203,956
Refunds and reimbursements - 61,180
M isceI Ianeous 339,429
Total revenue 249,760 2,302 1,583,740
Expenditures:
Current:
General government: 528 738,207
Public works: 66,787 9,818 661,878
Parks, recreation and forestry 134,558
Capital outlay:
General government 39,074 116,845
Public safety - 211,911
Public works 324,570
Parks, recreation and forestry 117,451
Debt service:
Principal
Interest and fiscal charges
Total expenditures 66,787 39,602 9,818 2,305,420
Revenue over (under) expenditures 182,973 (37,300) (9,818) (721,680)
Other financing sources (uses):
Transfer in 96,500 666,086
Transfer out - (42,813)
Sale of property 68 28,818
Issuance of debt 307,000
Premium on bonds issued
Payment made to refunding
bond escrow agent
Total other financing
sources (uses) 96,568 959,091
Net increase (decrease) in fund balance 182,973 59,268 (9,818) 237,411
Fund balance (deficit)
Beginning of year (49,353) 53,113 (14,912) 3,379,692
Fund balance (deficit) - December 31 $ 133,620 $ 112,381 $ (24,730) $ 3,617,103
77
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Permanent
Fund
Statement 13
Page 4 of 4
Fox borough
Environment Totals
Fund 2006
$ $ 896,519
456,520
298,459
1,457,168
- 185,883
4,525 349,931
- 61,180
451,929
4,525 4,157,589
738,408
661,878
317,248
116,845
211,911
324,570
117,451
2,155,000
803,142
- 5,446,453
4,525 (1,288,864)
5,811,452
(4,356,152)
28,818
3,352,705
450
(7,225,000)
(2,387,727)
4,525 (3,676,591)
100,853 10,890,671
$ 105,378 $ 7,214,080
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, 2006
Statement 14
Revenue:
Charges for services:
Recreation Fees
Investment earnings
Total revenue
2006
Variance with
Original Final Final Budget
Budget Budget Actual Positive (Negative)
$ 185,800 $ 185,800 $ 185,883 $ 83
4,526 4,526
185,800 185,800 190,409 4,609
Expenditures:
Current:
Personal services 103,510 103,510 98,013 5,497
Supplies 41,080 41,080 81,292 (40,212)
Other services and charges 2,300 2,300 785 1,515
Contractual services 12,950 12,950 2,600 10,350
Capital outlay 4,000 4,000 4,000
Total expenditures 163,840 163,840 182,690 (18,850)
Net increase (decrease) in fund balance $ 21,960 $ 21,960 7,719 $ (14,241)
Fund balance - January 1 76,479
Fund balance - December 31 $ 84,198
79
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 OF CHANGES IN ASSETS AND LIABILITIES - FIDUCIARY FUNDS
Year Ended December 31, 2006
Statement 15
Assets
Cash and investments
Deposits receivable
Total assets
Balance Balance
January 1, December 31,
2006 Additions Deductions 2006
$ 1,380,493 $ 2,395,592 $ 2,672,622 $ 1,103,463
10,520
- 10,520
$ 1,391,013 $ 2,395,592 $ 2,672,622 $ 1,113,983
Liabilities
Accounts payable $ 88,580 $ 1,102,456 $ 1,173,823 $ 17,213
Deposits payable 1,302,433 1,293,136 1,498,799 1,096,770
Total Liabilities $ 1,391,013 $ 2,395,592 $ 2,672,622 $ 1,113,983
80
SUPPLEMENTARY FINANCIAL INFORMATION
CITY OF LINO LAKES, MINNESOTA
COMBINED SCHEDULE OF INDEBTEDNESS
December 31, 2006
General Obligation Bonds:
2003A Equipment Certificates
2003B Equipment Certificates
2004A Equipment Certificates
2005A Equipment Certificates
2006A Equipment Certificates
Civic Complex Lease Revenue Bonds, Series 1998A
Public Project Revenue Refunding Bonds, Series 1999C
G.O. Tax Abatement Bonds, Series 2006C
G.O. Utility Revenue Bonds, Series 2006D
G.O. CIP Refunding Bonds, Series 2006E
Total General Obligation Bonds
Special Assessment Bonds:
G. 0. Improvement Bonds of 1998A
G. 0. Improvement Bonds of 1998B
G. 0. Improvement Refunding Bonds of 1999A
G. 0. Improvement Bonds of 2002A
G. 0. Improvement Bonds of 2002B
0. 0. Improvement Refunding Bonds of 2003A
G. 0. Improvement Bonds of 2003B
G. 0. Improvement and Utility Bonds of 2004A
G. 0. Improvement Bonds of 2005A
G. 0. Improvement Refunding Bonds of 2005B
Total General Improvement Bonds with special assessments pledged
Revenue Bonds:
G. 0. Water Revenue Bonds of 1996B
G. 0. Water Revenue Refunding Bonds of 1999B
G. 0. Water Utility Revenue Refunding Bonds of 2006F
Total Revenue Bonds
Total City indebtedness
81
Interest
Rates
Dated
Final
Maturity
Date
6.00% 2/1/03 12/31/06
4.00% 3/31/03 12/31/06
4.00% 2/1/04 12/31/06
4.00% 2/1/05 12/31/08
4.00% 2/1/06 12/31/09
4.20 % -5.35% 8/1/98 2/1/19
4.75 % -5.10% 9/1/99 2/1/10
4.00 % -4.30% 8/15/06 2/1/23
4.00 % -4.15% 8/15/06 2/1/17
4.00% 11/1/06 2/1/18
4.50 % -4.90% 8/1/98 2/1/15
4.50 % -4.90% 8/1/98 2/1/15
4.25 % -4.70% 9/1/99 2/1/06
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
4.10 % -5.70% 10/1/96 2/1/12
4.25 % -4.90% 9/1/99 2/1/08
3.55 % - 3.625% 11/1/06 2/1/12
1
1
1
1
1
1
1
1
t
1
1
1
1
1
1
1
1
1
1
Exhibit 1
Prior Years Principal Interest
Original Payable 2006 Payable Due Due
Issue Payments 1/1/06 Issued Payments 12/31/06 In 2007 In 2007
$ 130,000 $ 90,000 $ 40,000 $ $ 40,000 $ $ $
200,000 115,000 85,000 85,000
274,000 81,000 193,000 95,000 98,000 98,000 3,920
107,000 - 107,000 35,000 72,000 35,000 2,880
- - 307,000 307,000 90,000 26,479
5,350,000 930,000 4,420,000 - 3,555,000 865,000 230,000 26,046
980,000 490,000 490,000 - 105,000 385,000 100,000 16,640
2,460,000 2,460,000 99,398
570,000 570,000 22,223
2,990,000 2,990,000 - 89,700
7,041,000 1,706,000 5,335,000 6,327,000 3,915,000 7,747,000 553,000 287,286
4,310,000 1,450,000 2,860,000
2,000,000 570,000 1,430,000
1,725,000 1,370,000 355,000
645,000 190,000 455,000
2,110,000 345,000 1,765,000
2,090,000 435,000 1,655,000
250,000 250,000
1,330,000 1,330,000
5,550,000 5,550,000
3,755,000 3,755,000
23,765,000 4,360,000 19,405,000
3,320,000 1,220,000 2,100,000
680,000 355,000 325,000
4,000,000 1,575,000 2,425,000
1,740,000
1,740,000
2,860,000
1,430,000
355,000 - -
100,000 355,000 110,000 10,883
185,000 1,580,000 190,000 76,568
445,000 1,210,000 440,000 34,000
25,000 225,000 25,000 10,584
65,000 1,265,000 75,000 44,499
5,550,000 195,000 272,576
3,755,000 385,000 149,469
5,465,000 13,940,000 1,420,000 598,579
190,000 1,910,000 1,910,000 52,440
105,000 220,000 105,000 8,155
1,740,000 46,842
295,000 3,870,000 2,015,000 107,437
$ 34,806,000 $ 7,641,000 $ 27,165,000 $ 8,067,000 $ 9,675,000 $ 25,557,000 $ 3,988,000 $ 993,302
82
1
CITY OF LINO LAKES, MINNESOTA
SCHEDULE OF DEFERRED TAX LEVIES
December 31, 2006
1
Public
Lease Project G. 0.
Year of Equipment Equipment Equipment Revenue Refunding Improvement
Levy/ Certificates Certificates Certificates Bonds Bonds Bonds
Collection of 2004A of 2005A of 2006A of 1998A 1999C of 2002A
2006/2007 $ 107,016 $ 39,774 $ 122,303 $ 177,056 $ 119,952 $ 5,259 1
2007/2008 40,404 122,603 191,213 109,557 7,467
2008/2009 120,698 126,788 104,570 6,496
2009/2010 - 5,446
2010/2011 - 9,645
2011/2012 - 8,385
2012/2013
2013/2014
2014/2015 -
2015/2016 - - - 1
2016/2017 - -
2017/2018 - -
2018/2019 - - -
2019/2020 - - -
2020/2021 - - -
2021/2022 - -
$ 107.016 $ 80,178 $ 365,604 $ 495,057 $ 334,079 $ 42,698
1
1
1
1
1
83
Exhibit 2
G. O.
Improvement
Bonds
of 2003B
G.O.
Improvement
and Utility
Bonds
of 2004A
G. O.
Improvement
Bonds
of 2005A
$ 22,828 $ 128,292 $
21,844 126,520
20,741 124,472
19,534 127,439
23,524 124,793
21,917 127,187
20,248 129,268
23,781 125,772
122,133
128,853
124,548
125,388
125,898
126,123
570,502
568,297
569,084
569,084
568,297
566,722
569,609
566,197
567,247
572,497
571,184
574,072
574,907
579,639
G. O.
Improvement
Refunding
Bonds
of 2005B
G. O. G. O.
Tax CIP
Abatement Refunding
Bonds Bonds
2006C 2006E
$ 585,113 $
574,022
557,484
546,197
524,213
512,925
490,613
463,050
86,656
108,591
108,591
140,091
196,581
235,011
245,511
255,381
264,458
278,140
285,411
297,263
313,472
323,316
337,517
350,447
$ 125,580
125,580
209,580
442,470
445,410
468,720
459,060
443,940
449,820
460,110
464,100
Total
$ 2,090,331
1,996,098
1,948,504
1,850,261
1,892,463
1,940,867
1,914,309
1,878,121
1,403,658
1,439,600
1,445,243
996,723
1,014,277
1,029,078
337,517
350,447
$ 174,417 $ 1,766,686 $ 7,987,338 $ 4,253,617 $ 3,826,437 $ 4,094,370 $23,527,497
84
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS
December 31, 2006
Bonds payable
Future interest payable
Totals
Payments to maturity:
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Equipment Equipment Equipment
Certificates Certificates Certificates
2004A 2005A 2006A
G. O.
Improvement
Bonds
of 2002A
$ 98,000 $ 72,000 $ 307,000 $ 355,000
3,920 4,360 41,194 32,334
$ 101,920 $ 76,360 $ 348,194 $ 387,334
$ 101,920 $ 37,880
38,480
$ 116,479
116,765
114,950
G. O.
Improvement
Bonds
of 2002B
$ 1,580,000
311,316
$ 1,891,316
G. O.
Improvement
Refunding
Bonds
2003A
1
1
1
1
1
$ 1,210,000
229,384 1
$ 1,439,384
1
1
1
1
1
1
1
1
1
1
1
1
$ 120,883 $ 266,568 $ 474,000
117,253 267,688 82,813
29,893 272,613 81,301
28,930 271,388 79,611
27,930 269,310 82,638
31,830 271,395 80,537
30,615 272,354 78,438
81,088
78,488
80,788
77,988
79,994
- 81,700
$ 101,920 $ 76,360 $ 348,194 $ 387,334 $ 1,891,316 $ 1,439384
85
Exhibit 3
G. O.
Improvement
Bonds
2003B
$ 225,000
50,077
$ 275,077
G. O.
Improvement
and Utility
Bonds
2004A
$ 1,265,000
368,469
G. O.
Improvement
Bonds
2005A
$ 5,550,000
2,390,409
$ 1,633,469 $ 7,940,409
G. O.
Improvement
Refunding
Bonds
2005B
G.O. G.O. G.O.
Tax Utility CIP
Abatement Revenue Refunding
Bonds Bonds Bonds
2006C 2006D 2006E
$ 3,755,000 $ 2,460,000 $ 570,000
759,408 1,252,810 146,286
$ 4,514,408 $ 3,712,810 $ 716,286
Civic
Complex
Revenue
Bonds
of 1998A
$ 2,990,000 $ 865,000
939,300 77,093
$ 3,929,300 $ 942,093
$ 35,584 $ 119,500 $ 467,577 $ 534,469 $ 99,398 $ 22,223 $ 89,700 $
34,590 117,437 537,286 549,469 103,420 72,122 119,600
33,490 115,187 534,111 538,813 103,420 70,122 119,600
32,315 112,900 534,486 523,063 103,420 68,122 198,000
35,950 120,420 534,111 512,219 132,820 66,122 415,300
34,390 117,700 532,986 491,375 185,520 69,022 417,800
32,778 114,810 531,111 477,875 221,320 71,722 439,300
35,980 116,702 533,361 456,625 231,020 69,292 430,000
118,182 529,736 430,500 240,043 66,832 415,600
114,382 530,236 248,381 69,254 420,800
115,482 534,611 260,858 71,453 430,100
116,382 532,861 267,464 - 433,500
117,013 534,633 278,327
117,372 534,784 293,233
538,519 - 302,183
315,103
326,880
250,968
281,125
289,250
120,750
$ 275,077 $ 1,633,469 $ 7,940,409 $ 4,514,408 $ 3,712,810 $ 716,286 $ 3,929,300 $ 942,093
86
CITY OF LINO LAKES, MINNESOTA
DEBT SERVICE PAYMENTS TO MATURITY - ALL BONDS (CONTINUED)
December 31, 2006
Exhibit 3 (Continued)
G.O. Water
Public G. O. G. O. Water Utility
Project Water Revenue Revenue
Revenue Revenue Refunding Refunding
Bonds Bonds Bonds Bonds
of 1999C of 1996B of 1999B of 2006F Totals
Bonds payable $ 385,000 $ 1,910,000 $ 220,000 $ 1,740,000 $ 25,557,000
Future interest payable 37,689 362,716 10,971 218,698 7,236,434
Totals $ 422,689 $ 2,272,716 $ 230,971 $ 1,958,698 $ 32,793,434
Payments to maturity:
2007 $ 116,640 $ 299,680 $ 113,154 $ 46,842 $ 3,313,465
2008 111,790 298,915 117,817 268,729 3,235,299
2009 101,964 419,034 408,612 3,232,360
2010 92,295 419,682 410,472 2,995,434
2011 418,864 - 411,702 3,027,386
2012 416,541 412,341 3,061,437
2013 - 2,270,323
2014 1,954,068
2015 - 1,879,381
2016 1,463,841
2017 1,490,492
2018 1,430,201
2019 1,011,673
2020 945,389
2021 840,702
2022 315,103
2023 - 326,880
$ 422,689 $ 2,272,716 $ 230,971 $ 1,958,698 $ 32,793,434
87
CITY OF LINO LAKES, MINNESOTA
INSURANCE IN FORCE
December 31, 2006
Exhibit 4
Coverage Amount
General Liability:
Bodily Injury /Property Damage $ 1,000,000
Personal Injury /Police Professional Liability 1,000,000
Employee Benefit Liability 1,000,000
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) 21,460,722
Faithful Performance Blanket Bond 500,000
Storage Tank Liability 100,000
Rented/Leased Equipment ($500 Deductible) 250,000
Public Official and Employee Liability ($500 Deductible each occurrence) 1,000,000
Automotive:
Bodily injury and property damage 1,000,000
Comprehensive and Collision Actual Cash Value
Uninsured motorists 1,000,000
Workmen's compensation Statutory
Umbrella Liability 1,000,000
Crime - Theft Disappearance and Destruction ($500 Deductible) 100,000
88
CITY OF LINO LAKES, MINNESOTA
TAXABLE VALUATIONS, TAX LEVIES AND TAX RATES Exhibit
Tax Capacity Tax Capacity
Values Values
2005/2006 2004/2005
Taxable valuations:
Total $ 18,850,702 $ 16,620,861
Fiscal disparities:
Distribution 1,797,349 1,749,152
Contribution (1,010,480) (881,474)
Less: Captured Tax Increment Value (389,386) (274,702)
$ 19,248,185 $ 17,213,837
Tax Tax
Certified Capacity Certified Capacity
Levy Rate Levy Rate
Taxes Levied:
Revenue $ 7,042,626 36 $ 6,342,211 37
Bond and Interest 934,281 5.354 927,091 5.385
Totals
$ 7,976,907 41.398 $ 7,269,302 42.223
The tax capacity rate is based on the total certified levy net of the fiscal disparity distribution
89
III.
STATISTICAL
SECTION
CITY OF LINO LAKES, MINNESOTA
NET ASSETS BY COMPONENT,
LAST FOUR FISCAL YEARS
(accrual basis of accounting)
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Primary Government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
Table 1
Fiscal Year
2003
$ 25,993,905
3,568,555
15,668,226
$ 45,230,686
$ 25,537,383
3,778,936
$ 29,316,319
$ 51,531,288
3,568,555
19,447,162
$ 74,547,005
2004
2005 2006
$ 28,807,262 $ 25,460,528 $ 29,549,174
3,045,052 12,050,484 10,704,508
16,249,541 13, 577, 071 14, 516, 466
$ 48,101,855 $ 51,088,083 $ 54,770,148
$ 26,713,498
4,744,875
$ 31,458,373
$ 28,342,832 $ 29,485,942
5,572,338 6,880,547
$ 33,915,170 $ 36,366,489
$ 55,520,760 $ 53,803,360 $ 59,035,116
3,045,052 12,050,484 10,704,508
20,994,416 19,149,409 21,397,013
$ 79,560,228 $ 85,003,253 $ 91,136,637
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 FOUR FISCAL YEARS
(accrual basis of accounting)
Expenses
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 expenses
Business -type activities:
Water
Sewer
Total business -type activities
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General Government
Public Safety
Public Works
Parks, Recreation and Forestry
Conservation of Natural Resources
Community Development
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water
Sewer
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (Expense) /Revenue
Governmental activities
Business -type activities
Total primary government net expense
Table 2
Fiscal Year
2003
$ 6,092,587
2,648,944
1,162,412
932,113
111,946
859,110
815,681
$ 12,622,793
968,458
1,046,170
2,014,628
$ 14,637,421
$ 102,520
964,034
493,312
250,816
5,369
28,210
633,691
4,536,567
$ 7,014,519
1,064,326
1,216,589
2,719,081
4,999,996
$ 12,014,515
$ (5,608,274)
2,985,368
$ (2,622,906)
91
2004
$ 2,524,387
2,799,294
7,254,708
1,196,096
116,869
420,874
748,832
$ 15,061,060
914,039
1,130,994
2,045,033
$ 17,106,093
$ 122,861
1,049,858
454,191
242,857
11,763
28,952
677,079
7,515,238
$ 10,102,799
979,075
1,280,652
1,589,419
3,849,146
$ 13,951,945
$ (4,958,261)
1,804,113
$ (3,154,148)
2005
$ 2,941,279
3,091,174
9,187,436
799,335
150,092
383,211
797,341
$ 17,349,868
876,592
1,217,825
2,094,417
$ 19,444,285
$ 111,480
998,210
434,087
196,951
4,873
26,985
761,924
10,128,024
$ 12,662,534
1,031,175
1,361,759
1,733,775
4,126,709
$ 16,789,243
$ (4,687,334)
2,032,292
$ (2,655,042)
2006
$ 2,886,825
3,516,376
3,871,968
1,162,458
156,592
691,880
926,021
$ 13,212,120
976,575
1,228,123
2,204,698
$ 15,416,818
$ 88,924
844,514
42 ^,741
186,439
6,854
20,530
643,749
5,963,204
$ 8,176,955
1,175,172
1,391,702
1,535,631
4,102,505
$ 12,279,460
$ (5,035,165)
1,897,807
$ (3,137,358)
CITY OF LINO LAKES, MINNESOTA
CHANGES IN NET ASSETS,
LAST FOUR FISCAL YEARS (Continued)
(accrual basis of accounting)
Fiscal Year
2003
General Revenues and Other Changes in Net Assets
Governmental activities:
Property taxes
Unrestricted grants and contributions
Unrestricted investment earnings
Gain on sale of capital assets
Miscellaneous
Transfers
Total governmental activities
Business -type activities:
Unrestricted investment earnings
Transfers
Total business -type activities
Total primary government
Change in Net Assets
Governmental activities
Business -type activities
Total primary government net expense
2004
2005 2006
$ 6,847,470 $ 6,630,279 $ 7,383,415 $ 8,269,944
194,220 221,302 433,387 713,794
1,280,957 33,217
- 160,955
(301,355) (303,108) (304,195) (299,725)
$ 6,740,335 $ 7,829,430 $ 7,673,562 $ 8,717,230
20,866 34,833
301,355 303,108
322,221 337,941
$ 7,062,556 $ 8,167,371
120,310
304,195
424,505
$ 8,098,067
253,787
299,725
553,512
$ 9,270,742
$ 1,132,061 $ 2,871,169 $ 2,986,228 $ 3,682,065
3,307,589 2,142,054 2,456,797 2,451,319
$ 4,439,650 $ 5,013,223 $ 5,443,025 $ 6,133,384
Note: The City began to report accrual information when it implemented GASB 34 in fiscal year 2003.
92
CITY OF LINO LAKES, MINNESOTA
FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Fiscal Year
1997 1998 1999 2000
General Fund
Reserved $ 99,820 $ 98,453 $ 115,359 $ 105,052
Unreserved 2,958,092 3,312,879 3,319,115 3,436,544
Total general fund $ 3,057,912 $ 3,411,332 $ 3,434,474 $ 3,541,596
All other Governmental Funds
Reserved reported in:
Special Revenue Funds $ 323 $ 264 $ - $ 1,017
Capital Projects Funds 991,824 990,455 989,506 1,572,422
Debt Service Funds 1,009,512 1,989,218 3,824,337 4,101,453
Permanent Funds -
Unreserved reported in:
Special Revenue Funds 37,800 36,956 33,961 49,232
Capital Projects Funds 9,941,448 12,099,048 4,340,900 4,990,610
Debt Service Funds - (6,234) (28,568)
Permanent Funds - - -
Total all other governmental funds $ 11,980,907 $ 15,115,941 $ 9,182,470 $ 10,686,166
Total all funds $ 15,038,819 $ 18,527,273 $ 12,616,944 $ 14,227,762
93
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Table 3
Fiscal Year
2001
$ 105,969
3,818,700
$ 3,924,669
$ 1,551
1,843,423
1,768,402
41,195
6,242,862
(41, 953)
2002 2003
$ 120,727 $ 133,921
4,232,291 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
$ 9,855,480 $ 9,497,813 $ 10,544,688
$ 13,780,149 $ 13,850,831 $ 15,454,578
2004 2005
$ 142,492 $ 148,652
5,067,973 5,300,156
$ 5,210,465 $ 5,448,808
$ 1,718
957,112
2,556,300
57,616
6,241,408
452,972
94
$ 1,763
957,112
7,371,359
100,000
74,716
7,348,375
853
$ 10,267,126 $ 15,854,178
$ 15,477,591 $ 21,302,986
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
$ 10,665,148
$ 16,155,382
CITY OF LINO LAKES, MINNESOTA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS,
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
Revenues
Property Taxes
Licenses and Permits
Intergovernmental
Special Assessments
Charges for Services
Fines and Forfeits
Investment Earnings
Miscellaneous
Total revenues
Fiscal Year
1997
$ 3,438,104
566,561
1,255,395
2,870,510
598,920
99,390
712,851
748,406
10,290,137
Expenditures
Current:
General Government 2,415,733
Public Safety 1,661,090
Public Works 764,592
Parks, Recreation and Forestry 581,830
Conservation of Natural Resources
Community Development
Capital outlay 961,325
Debt Service
Principal 408,000
Interest and fiscal charges 473,398
Construction /Acquisition 2,983,749
Total expenditures
10,249,717
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
Transfer In
Transfer Out
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of
noncapital expenditures
1998
$ 3,844,699
726,599
2,411,186
2,973,299
651,041
102,489
1,119,621
321,219
12,150,153
1999
2000
$ 4,571,934 $ 5,213,896
823,719 884,746
1,047,725 802,456
2,519,598 3,106,359
562,359 618,295
87,434 124,458
230,921 930,177
472,609 685,621
10,316,299 12,366,008
2,512,284 2,644,205 3,145,791
1,778,863 1,951,820 2,126,696
673,156 627,925 838,789
663,566 755,215 828,852
561,160 218,981 106,543
623,360 1,576,616 617,345
740,000 1,190,734 1,448,570
527,782 1,076,079 1,041,882
12,468,230 8,775,128 725,663 I
20,548,401 18,816,703 10,880,131
1
1
1
1
1
1
1
1
1
1
40,420 (8,398,248) (8,500,404) 1,485,877
1,171,020
272,000
(272,000)
1,171,020
$ 1,211,440
11,806,000
2,312,920
(2,150,161)
11,968,759
$ 3,570,511
14.0% 17.0%
95
3,600,539
(961,098)
948,297
(997,663)
2,590,075
$ (5,910,329)
26.8%
325,450
526,843
(847,352)
4,941
$ 1,490,818
26.1%
1
1
1
1
1
1
1
1
Table 4
Fiscal Year
2001 2002
$ 5,856,349
1,016,456
2,101,953
1,783,237
684,264
101,559
571,248
699,020
12,814,086
$ 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
2,652,762 2,893,683 5,808,015 2,261,908 2,701,731 2,614,303
2,212,932 2,463,004 2,609,171 2,798,013 3,099,032 3,314,159
1,134,874 1,245,451 1,770,649 5,126,578 7,071,322 7,755,727
914,432 952,039 969,597 954,945 1,111,301 1,076,727
139,599 111,880 114,580 115,631 140,334 143,653
683,036
992,339 1,057,099 622,218 515,287 464,553 835,770
2,097,050 2,851,332 1,684,450 1,960,000 2,016,000 2,155,000
960,281 1,030,395 865,638 798,405 838,950 1,011,157
501,810 1,833,592 229,321 -
11,606,079 14,438,475 14,673,639 14,530,767 17,443,223 19,589,532
1,208,007 (2,503,444) (768,463) (1,382,779)
332,030 2,878,201
(1,680,000)
412,239
(719,889)
(1,655,620)
851,472
(1,155,547)
2,574,126
$ (447,613) $ 70,682
30.2% 33.6%
2,673,565
1,120,223
(1,421,578)
2,372,210
$ 1,603,747
18.4%
1,280,957
1,604,000
(6,057)
(1,170,000)
5,283,306
(5,586,414)
1,405,792
(3,738,910) (3,965,512)
280,269
9,412,000
176,231
2,651,469
(2,955,664)
9,564,305
$ 23,013 $ 5,825,395
19.7%
16.8%
28,818
6,327,000
450
(13,635)
(7,225,000)
5,811,452
(6,111,177)
(1,182,092)
$ (5,147,604)
16.9%
CITY OF LINO LAKES, MINNESOTA
ASSESSED AND ACTUAL VALUE OF TAXABLE PROPERTY,
LAST TEN FISCAL YEARS
Payable
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Residential
Property
$ 7,652,684
8,272,475
8,560,188
9,428,655
10,763,728
9,179,811
10,649,345
12,252,347
14,055,076
15,825,619
Commercial/
Industrial
Property
$ 692,288
972,430
1,089,469
1,574,470
1,872,003
1,202,560
1,487,554
1,982,146
2,290,829
2,740,583
Source: Anoka County, Minnesota Assessors' Office
Personal
Property
$ 462,282
434,234
393,365
395,637
393,728
246,594
251,016
259,194
274,956
271,665
Total Taxable
Assessed
Value
$ 8,807,254
9,679,139
10,043,022
11,398,762
13,029,459
10,628,965
12,387,915
14,493,687
16,620,861
18, 837, 867
Table 5
Total Direct
Tax Rate
Note: The tax capacity (assessed taxable value) of the property is calculated by applying a
statutory formula to the estimated market value of the property.
97
$ 31.17
30.44
36.04
35.96
35.90
53.08
47.60
42.29
42.22
41.40
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
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
Fiscal Debt Total District ISD Anoka Taxing Total Overlapping
Year Basic Rate Service Direct # 12 County Districts Overlapping Tax Rate
1997 28.171 2.996 31.167 66.000 30.542 5.197 101.739 132.906
1998 27.443 2.994 30.437 59.004 30.618 6.342 95.964 126.401
1999 28.503 7.536 36.039 64.802 32.265 6.830 103.897 139.936
2000 28.407 7.554 35.961 58.230 30.861 7.635 96.726 132.687
2001 28.903 6.995 35.898 69.888 28.859 6.903 105.650 141.548
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
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
2006 1997
Table 7
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 $ 263,094 1 1.37 % $
Lino Lakes Realty LLC 240,710 2 1.25
Kohl's Department Store 162,956 3 0.85
Xcel Energy 133,655 4 0.69 254,647 1 2.51
Moline Concrete Products 112,313 5 0.58 51,254 5 0.50
Taylor Corporation 110,926 6 0.58
Gargaro Properties LLC 85,878 7 0.45
Marmon /Keystone Corporation 80,960 8 0.42
Lino Lakes Business Center 78,802 9 0.41
F &G Incorporated 76,746 10 0.40
Minnesota Pipeline Company 6,333 2 0.06
Minnegasco, Inc. 62,298 3 0.61
Anoka Electric Cooperative 56,175 4 0.55
Custom Manufacturing 38,521 6 0.38
Nol -Tec Systems 35,526 7 0.35
Lino Lakes Investments 35,200 8 0.35
BBJ, LLC 27,610 9 0.27
United Power Association 27,246 10 0.27
Total $ 1,346,040 6.99 % $ 594,810 5.85 %
Source: Anoka County
99
CITY OF LINO LAKES, MINNESOTA
PROPERTY TAX LEVIES AND COLLECTIONS.
LAST TEN FISCAL YEARS
Fiscal
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Taxes Levied for the Fiscal Year
Operating Debt
Tax Levy Tax Levy
$ 3,027,448
3,274,364
3,255,587
3,611,498
4,105,048
4,885,509
5,180,932
5,623,542
6,342,211
7,042,626
$ 321,952
315,253
860,725
960,390
993,561
1,016,649
943,689
927,078
927,091
934,281
Total Tax
Levy
$ 3,349,400
3,589,617
4,116,312
4,571,888
5,098,609
5,902,158
6,124,621
6,550,620
7,269,302
7,976,907
Collected within the
Fiscal Year of Levy
Amount
$ 3,316,426
3,564,611
4,085,625
4,534,998
5,047,912
5,847,692
6,062,273
6,145,419
6,881,838
7,594,019
Percentage
of
Levy
99.0%
99.3%
99.3%
99.2%
99.0%
99.1%
99.0%
93.8%
94.7%
95.2%
Notes:
Current year levies and collections include Sate levy related credits (HACA and Market
Value Credit).
Does not include tax increment levies and collections.
100
1
Collections
in Subsequent
Years
$ 31,634
27,552
21,163
42,227
50,389
56,678
85,631
46,536
45,869
Total Collections to Date
Percentage
of
Amount Levy
$ 3,348,060
3,592,163
4,106,788
4,577,225
5,098,301
5,904,370
6,147,904
6,191,955
6,927,707
7,594,019
Outstanding
Delinquent
Taxes
100.0% $ 1,340
100.1% (2,546)
99.8% 9,524
100.1% (5,337)
100.0% 308
100.0% (2,212)
100.4% (23,283)
94.5% 358,665
95.3% 341,595
95.2% 382,888
Table 8
Percentage
of Levy
Outstanding
0.0%
-0.1%
0.2%
-0.1%
0.0%
0.0%
-0.4%
5.5%
4.7%
4.8%
CITY OF LINO LAKES, MINNESOTA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Year
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Governmental Activities
General
Obligation
Bonds
$ 1,415,000
6,862,734
6,904,570
6,911,450
6,686,430
6,244,450
6,030,000
5,764,000
5,335,000
7,177,000
Special
Assessments
Payable
$ 7,455,000
13,215,000
14,045,000
13,165,000
10,195,000
11,640,000
12,840,000
11,580,000
19,405,000
13,940,000
Other
Long -Term
Debt
$
946,020
1,459,352
1,209,352
959,352
Business -Type
Activities
General
Obligation
Revenue
Bonds
$ 4,215,000
4,075,000
4,550,000
4,340,000
3,465,000
3,220,000
2,970,000
2,705,000
2,425,000
4,410,000
Total
Primary
Government
$ 13,085,000
25,098,754
26,958,922
25,625,802
21,305,782
21,104,450
21,840,000
20,049,000
27,165,000
25,527,000
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.
(1) = Personal income information is not available for 2006 from the State of Minnesota Jobs Training
Research Statistics Department.
102
Table 9
Percentage
of Personal Per
Income Capita
3.55 % $ 899
6.14 1,667
5.96 1,711
4.96 1,526
3.94 1,225
3.69 1,176
3.64 1,189
3.13 1,071
3.95 1,379
(1) (1)
103
CITY OF LINO LAKES, MINNESOTA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
As of December 31, 2006
Overlapping:
Anoka County
ISD 12
ISD 624
ISD 831
SISD 916
Metropolitan Council
Total Overlapping
City of Lino Lakes Direct Debt
Table 10
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
$ 101,865,000
112,110,000
72,235,000
74,765,000
12,320,000
185,560,000
$ 4,717,000
6.5% $ 6,623,852
49.4% 55,368,520
3.6% 2,573,232
7.6% 5,645,962
2.7% 329,826
0.6% 1,196,482
71,737,874
100% 4,717,000
Total Direct and Overlapping Debt: $ 76,454,874
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.
Does not include general obligation debt supported by special assessments, utility revenues,
tax or aid anticipation certificates, State -aid road or revenue debt.
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
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
as a percentage of debt limit
Fiscal Year
1997 1998 1999 2000
$ 11,053,924 $ 12,548,476 $ 13,754,748 $ 15,507,964
299,297 5,853,841 5,894,844 5,976,450
$ 10,754,627 $ 6,694,635 $ 7,859,904 $ 9,531,514
2.71% 46.65%
105
42.86% 38.54%
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Table 11
Legal Debt Margin Calculation for Fiscal Year 2006
Market value $ 1,734,317,800
Debt limit (2% of market value) 34,686,356
Debt applicable to limit 4,332,000
Legal debt margin $ 30,354,356
Fiscal Year
2001 2002 2003 2004 2005 2006
$ 18,073,714 $ 20,688,642 $ 25,024,436 $ 28,616,070 $ 30,698,674 $ 34,686,356
5,836,430 5,479,450 5,350,000 5,169,000 4,845,000 4,332,000
$ 12,237,284 $ 15,209,192 $ 19,674,436 $ 23,447,070 $ 25,853,674 $ 30,354,356
32.29% 26.49% 21.38% 18.06% 15.78% 12.49%
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
1997 14,560 $ 368,426 $ 25,304 6,190 2.5%
1998 15,053 408,824 27,159 6,487 1.9
1999 15,760 452,407 28,706 6,732 2.5
2000 16,791 516,659 30,770 6,845 2.6
2001 17,386 540,531 31,090 6,911 4.1
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 20,290 (2) (2) 6,986 4.1
Source:
(1) = Estimates from Metropolitan Council, except for 2000 which is per the U.S. Census.
(2) = Information from State Demographers Office (Bureau of Economic Analysis Report).
(3) = Information from Independent School District No. 12.
(4) = Information from the State of Minnesota Jobs Training Research Statistics Department and is
unavailable for 2006.
107
CITY OF LINO LAKES, MINNESOTA
PRINCIPAL EMPLOYERS,
CURRENT YEAR AND NINE YEARS AGO
Employer
State of Minnesota Corrections
Target Corporation
AdGraphics
Synovis Interventional Systems
Summit Fire Protection
Molin Concrete Products
Anoka County Juvenile Center
Kohl's Department Store
Nol -Tech Systems, Inc.
Custom Manufacturing
Northern Wholesale
Mag -Con, Inc.
Total
2006
(1)
Percentage
of Total
Employees Rank Employment
450 1
230 2
200 3
180 4
175 5
163 6
150 7
115 10
65 8
50 9
1,778
Source: City of Lino Lakes Official Statements
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Table 13
(2)
1997
Employees
400
215
70
125
35
60
55
45
1,005
(1)
Percentage
of Tota I
Rank Employment
1
2
4
3
8
5
6
7
N/A %
N/A
N/A
N/A
N/A
N/A
N/A
N/A
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.
(2) = Employer information for 1997 is only available for the eight largest employers within the City of Lino Lakes.
108
CITY OF LINO LAKES, MINNESOTA
Full- time - Equivalent Employees by Type
Last Ten Fiscal Years
Full- time - Equivalent Employees as of December 31,
1997 1998 1999 2000 2001 2002
General Government
Administration 4.30 4.80 5.00 5.00 5.00 5.00
Seniors - 0.63 0.63 0.63 0.63
Finance 2.50 2.50 2.50 2.75 3.50 3.50
Economic Development 2.00 2.00 2.00 3.00 1.75 1.75
Planning 1.00 2.00 2.00 2.00 2.00 2.00
Community Development - - - 2.00 2.00
Engineering 2.50 1.00 0.50 -
Building 1.00 1.00 1.00
Other 1.50 0.55 0.55 0.55 0.55 0.55
Total General Government 13.80 12.85 13.18 14.93 16.43 16.43
Public Safety 1
Officers 17.50 19.50 19.50 21.00 21.00 22.00
Civilians 3.50 4.00 4.00 4.00 4.00 4.00
Building Inspection 2.20 2.70 2.50 3.00 3.00 4.00 1
Total Public Safety 23.20 26.20 26.00 28.00 28.00 30.00
Public Works
Streets 5.00 5.00 5.00 5.35 5.85 5.85
Other 1.00 1.00 1.00 1.15 1.15 1.15
Total Public Works 6.00 6.00 6.00 6.50 7.00 7.00
Parks, Recreation and Forestry 7.25 8.68 9.05 9.15 9.15 9.15 '
Water 1.50 2.00 1.95 1.80 2.15 2.15
Sewer 1.50 2.00 1.95 1.80 2.15 2.15 I
1
1
1
Total 53.25 57.73 58.13 62.18 64.88 66.88 1
Source: City Finance Office
109
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Table 14
2003 2004 2005 2006
5.00
0.63
3.50
1.00
2.00
2.00
5.00
0.63
3.50
1.00
2.00
2.00
5.00
0.63
3.50
1.00
2.00
2.75
5.00
0.63
3.50
1.00
2.00
2.75
1.00 1.00 1.00 1.00
0.55 0.55 1.15 1.15
15.68 15.68 17.03 17.03
22.00
4.00
4.00
22.00
4.00
4.00
25.00
4.75
4.25
26.00
4.75
4.25
30.00 30.00 34.00 35.00
5.85 5.85 6.35 6.85
1.15 1.15 1.15 1.15
7.00 7.00 7.50 8.00
9.15 9.15 9.05 9.55
2.15 2.15 2.15 2.15
2.15 2.15 2.15 2.15
66.13 66.13 71.88 73.88
110
CITY OF LINO LAKES, MINNESOTA
OPERATING INDICATORS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
Fiscal Year
1997 1998 1999 2000
General Government
Elections 1 2 1 2
Registered voters 7,354 8,674 8,435 10,125
Number of votes cast 3,274 6,747 2,952 8,073
Voter participation (registered) 44.5% 77.8% 35.0% 79.7%
Public Safety
Police
Calls for Service 6,651 6,508 5,828 6,218
Traffic Citations & Warnings 2,398 2,088 2,258 2,548
Part I Crimes 280 323 254 307
Part II Crimes 958 892 791 946
Inspections
Building Permits 597 911 893 1,186
Inspections N/A N/A N/A N/A
Value of Building Permits $32,666,843 $48,683,257 $54,522,159 $57,080,794
Public Works
General Maintenance (hours) N/A N/A N/A N/A
Street Maintenance (hours) N/A N/A N/A N/A
Fleet Maintenance (hours) N/A N/A N/A N/A
Snow Plowing /Sanding (hours) N/A N/A N/A N/A
Culture and Recreation
Parks
Park Maintenance (hours) N/A N/A N/A N/A
Utilities
Water Maintenance (hours) N/A N/A N/A N/A
Sanitary Sewer Maintenance (hours) N/A N/A N/A N/A
Source: Various City Departments
Notes:
Information not available is labeled N /A.
111
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Table 15
Fiscal Year
2001 2002 2003 2004 2005 2006
1 2 1 2 1 2
9,349 9,423 9,911 11,718 11,035 11,618
3,089 8,291 4,650 10,147 5,288 8,284
33.0% 88.0% 46.9% 86.6% 47.9% 71.3%
6,569 7,318 7,668 7,538 7,766 7,418
2,333 2,611 2,564 3,258 3,631 5,958
343 404 370 316 257
1,120 1,259 1,004 644 591
1,042 860 826 835 837 686
N/A N/A N/A N/A N/A N/A
$74,974,042 $53,977,610 $55,864,076 $61,579,910 $53,686,592 $42,078,007
N/A N/A 2,656 3,263 6,014 5,692
N/A N/A 4,082 3,533 3,106 3,631
N/A N/A 3,780 3,804 4,440 4,460
N/A N/A 1,020 855 1,003 867
N/A N/A N/A 10,210 10,577 10,368
N/A N/A N/A 4,349 3,904 4,387
N/A N/A N/A 3,347 4,092 3,347
112
CITY OF LINO LAKES, MINNESOTA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
Last Ten Years
Function /Program
Fiscal Year
1997 1998 1999 2000
Public Safety
Police
Stations 1 1 1 1
Patrol Units 8 8 9 9
Fire (Joint Powers)
Stations in City 1 1 1 1
Fire Trucks 4 4 4 4
Public Works
Lights 350 350 397 397
Vehicles 26 26 27 27
City Streets (miles) 76.9 80.8 85.6 90.3
Culture & Recreation
Parks
Parks 16 16 17 17
Park Acres 126 126 133 133
Trails (miles) 10.5 13 14 14
Park Shelters 3 3 3 3
Basketball Courts 3 3 4 4
Fishing Pier 1 1 1 1
Skating Rinks 5 5 5 4
Soccer Fields 8 8 8 8
Baseball /Softball Fields 18 18 18 18
Tennis Courts 2 2 2 2
Playgrounds 13 13 14 15
Water
Distribution System (miles) 27.4 31.5 37.5 40.0
Water Connections 2,326 2,476 2,655 2,922
Gallons Pumped (millions) 258 294 293 373
Number of Fire Hydrants 262 286 326 357
Water Tower Capacity (millions gallons) 2 2 2 2
Sanitary Sewer
Collection System (miles) 39.3 42.2 47.5 49.8
Sewer Connections 2,544 2,773 2,846 3,104
Storm Sewer
Pipe (miles)
Source: Various City Departments
20.8 21.4
113
21.8 25.6
Table 16
Fiscal Year
2001 2002 2003 2004 2005 2006
1 1 1 1 1 1
9 9 9 10 11 12
1 1 1 1 1 1
4 4 4 4 4 5
405 486 489 489 559 673
27 28 28 29 29 29
91.9 93.2 93.8 94.3 95.5 96.0
17 18 19 19 18 18
133 138 142 142 141 141
14 14 18 18 19 20
3 4 4 5 5 7
4 5 6 6 6 6
1 1 1 1 1 1
4 4 4 4 4 4
8 8 8 8 8 8
18 18 18 18 18 20
2 2 2 2 2 2
15 16 17 17 17 16
42.5 42.5 46.2 48.2 50.8 51.1
3,263 3,433 3,548 3,738 3,957 4090
407 358 518 474 475 565
398 409 452 490 523 558
2 2 2 2 2 2
51.3
3,343
28.1
51.3
3,636
29.8
59.2 61.4 63.5 63.3
3,763 3,960 4,142 4282
31.3 31.9
33.1 34.1
WS — Item 4
WORK SESSION STAFF REPORT
Work Session Item 4
Date: Council Work Session, June 4, 2007
To: City Council
From: Mary Divine
Re: Purchase Agreement — Anderson Builders
In January 2007 the city entered into an agreement with Anderson Builders to
allow them a period of time to investigate the development potential of three acres
of city -owned land on Lake Drive, just north of 77th Street. Staff has been
working with Anderson Builders towards a purchase agreement and is continuing
to work on terms of the agreement this week. Additional information will be
available in the Council's Friday Update.
1
WS — Item 5a.
WORK SESSION STAFF REPORT
Work Session Item 5a.
Date: June 4, 2007
To: City Council
From: Verne Jacobsen, TKDA
Re: Water Emergency and Conservation Plan
Background
Public water suppliers that service more than 1,000 people are required to have a Water
Emergency and Conservation Plan approved by the Department of Natural Resources
(Minnesota Statutes 103G.291). These plans were first required in 1996 and must be
updated every ten years. The Minnesota Department of Natural Resources has prepared a
schedule for each public water supplier, with a due date for the City of Lino Lakes of
October 15, 2007. The plan must address supply and demand reduction measures and
allocation priorities and must identify alternative sources of water for use in an
emergency.
The current Water Emergency and Conservation Plan was created by TKDA in 1997 and
revised in 2004 to meet the requirements of a federal mandate of the USEPA, under the
Homeland Security Act. That federal mandate required the City of Lino Lakes to prepare
a Water System Vulnerability Assessment and amend and update the Water Emergency
and Conservation Plan with the purpose of evaluating the existing security of the water
system.
The Water Emergency and Conservation Plan Benchmarks and Conservation Measures
are below. The City must address these items through their report to the DNR.
Benchmarks and Conservation Measures. The annual DNR Appropriation permit
approvals will be based on meeting specified benchmarks listed below. If water demands
exceed Benchmarks for unaccounted water, residential per capita, and peak demands then
permit approval will be contingent on implementation of one or all the listed
Conservation Measures or Programs until the benchmark is achieved.
1
Benchmarks
Conservation Measures or Programs
Unaccounted Water
(water withdrawals minus sales)
Less than 10%
If over 10 %, a plan is required that
addresses reduction of unaccounted water
through universal metering and accounting
of water use, routine meter testing and
repair, and distribution system leak
detection and repair.
➢ Metering of source water and
customers.
➢ Accounting for public uses.
➢ Water audits to determine
unaccounted water.
➢ A leak detection survey that also
includes an inspection of hydrants
once each year.
➢ Operational procedures that include
an established schedule for
repairing leaks within 30 days.
➢ Operational procedures that include
an established schedule for meter
testing, maintenance and repair.
Residential Gallons Per Capita
Less than 75 GPCD
If over 75 GPCD, a plan is required that
evaluates and implements measures
targeted at reducing residential per capita.
➢ Analyze residential customer use to
determine reasons for high per
capita use.
➢ Customer education a minimum of
four times per year that targets
reduction of indoor and outdoor
uses.
➢ Contact customers with high
volumes and large volume increases
and offer home audits and
conservation tips.
➢ Incentive programs to reduce per
capita use, such as distributing
showerheads, aerators, leak
detection kits, or soil moisture
meters, rebates for washing
machines or ULF toilets rebate
programs, or other types of
incentives.
Peak Demands
If over a ratio of 2.6, a plan is required to
2
Maximum Day to Average Day
Ratio Less than 2.6
reduce peak demands.
➢ Ordinances for lawn watering
including time of day, scheduling
(along with information on how
often to water) and water wasting
(runoff) with adequate enforcement
and penalties for noncompliance.
➢ Development approvals with
criteria that minimize large open
turf areas, require organic soil
augmentation for new turf areas on
sandy soils, and require one or more
trees for new construction.
➢ Customer education/conservation
tips during summer peak demands a
minimum of four times between
May and September of each year.
➢ Conservation Water Rate Structure:
Increasing block or summer
surcharge with 25 -cent minimum
increments between blocks or
normal rates.
Rate Structures - A conservation or conservation neutral rate structure is required that
does not include any volume of water in the service or base charge (lifeline exceptions
allowed).
Monitoring Plan — A monitoring plan approved by DNR that includes monthly water
level readings in production wells and/or observation that may be required. Monitoring
data must be submitted to DNR once each year or upon request.
Sustainability — All impacts and limits on natural resources and other water users must
be satisfied.
Currently, the City is below the maximum threshold of 10% unaccounted water so our
established practices are working appropriately.
For benchmark item Residential Gallons Per Capita, the DNR is following the AWWA
Research Foundation study that found the average indoor water use in a conserving
home is 45.2 GPCD (gallons per capita day). The study also found that the average
indoor water use for a non - conserving home is 63.9 GPCD. The DNR requires Cities
to be at 75 GPCD. Lino Lakes is currently at 90 GPCD. Our task is to reduce
consumption from our current 90 GCPD to 75 GCPD (20 %).
3
The current peak demand ratio for the City is 3.3. A reduction of over 25% in the peak
water demand will be required.
This item was discussed at the May 30, 2007 Environmental Board Meeting.
Comments from that meeting will be sent out in the Friday update.
Requested Council Direction
This is an informal item that requires no action at this time. We are requesting input from
the City Council on how to obtain the DNR benchmarks.
4
WS — Item 5b.
WORK SESSION STAFF REPORT
Work Session Item 5b.
Date: June 4, 2007
To: City Council
From: Verne Jacobsen
Re: Water Treatment Plant Feasibility Study
Background
Lino Lakes water supply is provided by the Jordon sandstone aquifer. This source is
considered abundant and meets all health requirements. The City does not treat its
water for iron and/or manganese removal, softening, or any other conventional
treatment processes. The City does provide chemical additions including disinfection
and fluoridation at the wellhead.
While iron and manganese do not pose a health problem at the levels found in Lino
Lakes' groundwater, they tend to present problems with appearance, taste, and odor as
well as problems with staining and other utility concerns. The current level of water
complaints is not sufficient to warrant treatment at this time. However, due to the
complexities of a water treatment facility and efficient integration of a facility into the
City's system of pipes, wells and storage, advanced planning is necessary.
For these reasons, the City Council authorized staff to undertake the preparation of a
water treatment plant feasibility study in January. All the background data and
documents have been collected. This information has been tabulated for use in the
study. The study is expected to be completed and presented to the City Council in
September. It will address treatment needs, location, costs and possible funding
options.
1
The City is currently taking soil borings of two locations within the City along Birch
Street as potential sites for a water treatment plant. One site is on a vacant property
currently owned by the school district on the north side of Birch Street opposite the
intersection of Joyer Lane. The other site is on City owned property (currently in
agricultural use) located southeast of the intersection of Birch Street and Centerville
Road.
Requested Council Direction
This is an informal item that requires no action at this time. We are requesting any input
the City Council may have.
2
WS -5c
WORK SESSION MEMORANDUM
To: City Council
From: Al Rolek
Date: June 4, 2007
Re: Review of Utility Rates /Utility Rate Study
cc:
The city staff periodically reviews and suggests adjustments to the utility rates charged to
customers for the water and sewer utilities. The last time rates were adjusted was in
2003.
Utility rates are set based upon a number of factors. Among these are the cost of
providing the service, or operations costs; the cost of extending the utility network, or
infrastructure costs; financing and servicing of debt; and the cost of replacing worn
facilities and systems, referred to as depreciation or replacement costs. Other
considerations in setting rates are regulatory guidelines, conservation measures and rate
comparisons with other area communities.
A key element to be considered in establishing water rates is conservation of the resource.
The city is currently in the process of completing a Water Emergency and Conservation
Plan. This plan, required by the MN DNR, establishes methods for the city to conserve
its water usage to the greatest degree possible and, importantly, plans future infrastructure
needs, including sizing of trunk water mains, new wells, storage capacity and water
treatment facilities. In addition, the plan establishes guidelines for residential
consumption of water. A recommendation will be included in the plan to structure water
rates in tiers to encourage water conservation.
TKDA is also in the process of completing a feasibility study for water treatment facilities
in the city. The measures included in the conservation plan are important to the sizing of
the treatment facilities and, therefore, influence the cost of construction.
In September, 2006, the city requested and received a proposal from Springsted, Inc. to
conduct a comprehensive utility rate study. The proposal has recently been refreshed.
The study would include reviewing current and background utility data, including
historical financial information, volumes, capital improvements, debt service
requirements, policies and practices, growth trends and reviewing engineering studies,
including the recent conservation plan and water treatment feasibility study. Springsted
then would evaluate the current data and consider future needs in developing a
comprehensive report which would recommend and justify any future rate adjustments.
It is necessary to undertake the study at this time to complement the conservation plan
and to implement rate structure recommendations and any rate adjustments in 2008.
Springsted would need 12 to 16 weeks to complete the study, and would then present
their formal report to the City Council. The cost of the study is proposed to be $27,750
(unchanged from September, 2006), which would be financed equally from the water and
sewer funds. A copy of the proposal is attached for your review. Staff is recommending
engaging Springsted, Inc. to complete this study.
Sprin steel
Water and Wastewater Fee Study
Work Plan May 2007
Objectives)
The purpose of this study is to assist the City of Lino Lakes in evaluating the financial
operations of its Water and Wastewater Utilities to determine the necessary level of user
fees and charges that will provide adequate cash flow to pay for current plant expenditures,
anticipated future operating and maintenance expenses, debt service including principal and
interest, utility improvements asset replacement, and adequate cash reserves. Rate
recommendations will reflect the each Utility's recent cost experience as well as anticipated
future costs during the nominal period for which rates are projected.
Task 1 Review Background Information
➢ Internal review of background information:
- Review historical financial information, volumetric rates, basic facility
charges, contractual charges and other fees and charges that provide
sources of revenue for each Utility
- Review the current allocation of costs to functional cost components and to
rates and charges for each utility
- Review any current allocations of capital costs to connection and other
charges and fees for each utility
- Review current and historical billing data for each utility
— Review current funding practices, funding sources and policies related to
financing capital improvements for each utility
- Review and update the City's existing capital improvement plan for each
utility identifying the sources of funding for each improvement
- Review any existing debt service coverage requirements for both senior
and subordinate debt and the impact of adding additional debt to finance
new capital improvements for each Utility
- Review ordinances, policies and practices related to user fees, connection
fees and other charges for utility services
- Review the historical growth of the customer base and projections for
anticipated growth for each utility
- Review any engineering studies, cost of services studies and other relevant
studies related to each Utility
- Review the planning period to be used in the study
➢ Analyze information and develop preliminary availability fees for each Utility
and cost of service analysis for each Utility
— Analyze the information to identify any omissions and /or inconsistencies
and collect additional information, as needed
City of Lino Lakes, Minnesota
Water and Wastewater Fee Study
May 2007
Page 2
— Develop projected customer growth and future service demands based
upon the existing systems and anticipated growth
— Project the cost of providing services for each Utility
Task 11 - Conduct Study
➢ Develop a financial projection of each Utility that integrates all anticipated
revenue sources, including interest on the cash balance, anticipated operating
expenditures including existing and projected new depreciation, anticipated
capital expenditures, existing debt service, projected debt service for identified
projects and changes in the customer base over the planning period:
— Develop a ten -year forecast of revenues and expenditures for each Utility
to determine the adequacy of revenues provided by existing rates
— Evaluate the impact of anticipated capital improvement financing options
on rates, fees and charges
— Develop recommendations for the financing of the anticipated capital
improvements based on the above impact analysis
— Identify the overall change in revenue required to provide for adequate
funding for major capital improvement programs, to meet all recurring
annual operating and capital expenditures, to cover all debt service
requirements, to comply with any existing revenue bond covenants, and to
maintain sufficient cash balances and capital reserves (as defined by the
City) for each Utility The projections will be made using an income
statement approach and will include a yearly cash flow analysis
— Develop preliminary rate schedules for each Utility that provides revenue
recovery at levels necessary to support the Utility's operation as defined
above. Rates developed will include user fees, capacity fees, connection
charges and other fees and charges that provide sources of revenue to the
Utility
— Perform a sensitivity analysis to illustrate the impacts of adverse
assumption changes (e.g. future growth, operating costs)
➢ Evaluate each Utility's current service fees and charges to determine whether
there are additional service fees and charges that are currently not assessed
and that may be applicable to the Utility's provision of services and,
conversely, whether there are fees and charges that can be reduced or
eliminated
➢ Project the fiscal impact of proposed changes to fees and charges on each
Utility's current rates, fees and charges
— Develop recommendations for any changes to fees and charges, together
with the impact on current rates and charges
— Make recommendations for changes in existing ordinances, resolutions
and policies necessary to implement any new fees and charges
recommended
➢ If we make a recommendation to increase rates or charges, Springsted will:
City of Lino Lakes, Minnesota
Water and Wastewater Fee Study
May 2007
Page 3
— Evaluate and compare the proposed fee structure with the Utility's current
fee structure and with the fee structure of at least three other similarly -sized
local government utility operations in the area
— Prepare sample bills for a minimum of 6 customers from representative
customer classes, comparing existing rates and charges to proposed rates
and charges
— Review and make recommendations for changes needed in existing
ordinances, resolutions and policies
➢ Develop a ten -year financial projection of capital expenditure needs related to
growth that integrates all anticipated revenue sources, anticipated capital
expenditures, and existing and projected debt service over the planning period:
— Develop preliminary availability fee that provides revenue recovery at levels
necessary to support the capital needs
— Perform a sensitivity analysis to illustrate the impacts of adverse
assumption changes (e.g. future growth,)
Task III - Present and Review Draft Report
➢ Springsted will prepare a Draft Report of Findings that will contain our findings
and recommendations. This review document will form the core of our final
report. We will submit fifteen bound copies plus one reproducible copy to the
City for their review and comment
➢ We will meet with City to review and discuss the Draft Report in a workshop
session
➢ Based on our discussion and review of the Draft Report, Springsted will make
modifications or changes, incorporating the City's comments into the final
report, as appropriate.
Task IV - Present and Review Final Report
➢ Springsted will present the Final Report of Findings and Recommendations in
a City Council regular or workshop session
➢ We will provide fifteen bound copies of the final study plus one reproducible
copy of the final report
Expectations
In order to conduct this study, the City will need to designate a staff member to serve as a
project manager. This person will be responsible for assisting Springsted with gathering
accurate and timely data needed to complete the project and to assist in arranging for
required meetings. At a minimum the following information will be needed to complete the
study:
Financial Feasibility Study Required Information
➢ Copy of your most recent and previous two years Comprehensive Annual
Financial Reports
City of Lino Lakes, Minnesota
Water and Wastewater Fee Study
May 2007
Page 4
➢ Copy of your current and previous two years budgets including revenues and
expenditures for each utility
➢ A list of the anticipated capital expenditures for the current year indicating item
to be purchased or the expenditure to be made, amount, and anticipated
funding source for each utility
➢ A listing of all anticipated capital expenditures for the planning period 2008
through the 2018 (or lesser timer period if 2007 to 2017 is not available)
indicating item to be purchased, amount, and anticipated funding source for
each utility
➢ Copy of your current depreciation schedule and depreciable life use for various
assets
➢ Copies of any current policies related to capital expenditures and /or funding for
them including special assessments
➢ Copies of any current policies related to fund balances and /or cash balances
➢ Copies of existing debt schedules for any outstanding debt, i.e. bonds,
equipment certificates, lease- purchase agreements
➢ Information about Utility sales in terms of volumes and fee revenue for each of
your customer classes
➢ Information related to the anticipated growth in both residential and
commercial /industrial utility sales during the planning period
➢ Current schedule of user fees and charges
➢ Copies of any engineering studies, cost of services studies and other relevant
studies related to each Utility and this study
Compensation
We propose to complete this study as described in this proposal for the lump sum fee of
$27,750 exclusive of any out -of- pocket expenses such as travel and copying. This amount
would include up to three on -site meetings. We will complete the study within 16 weeks of
receiving the notice to proceed provided that all necessary information is made available to
Springsted in a timely manner and that City staff is available for required meetings. This draft
schedule does not anticipate any unforeseen delays or other circumstances that would result
in a later completion date. Should any unforeseen delays or circumstances arise, Springsted
can draw on its staff of 70 professionals to keep the project on schedule to the greatest extent
possible.
Springsted would invoice the City for work completed based on the following schedule:
Completion of Task II
Completion of Task III
Completion of Task IV
50%
40%
10%
50%
90%
100%
City of Lino Lakes, Minnesota
Water and Wastewater Fee Study
May 2007
Page 5
Should the City request and authorize additional work outside the scope of services described
in this proposal or additional revisions beyond those agreed upon at the discussion and
review of the draft report and preliminary model, we would invoice the City at our standard
hourly fees.
007Stand r
Fee
Title
Rate
Principal & Senior Officer
Officer & Project Manager
Senior Associate
Associate
Support Staff
$210
$180
$150
$135
$ 60
WS — Item 6
WORK SESSION STAFF REPORT
Work Session Item 6
Date: Council Work Session, June 4, 2007
To: City Council
From: Gordon Heitke
Re: Council Goal, Objectives and Action Plan
Background
The City Council met on March 28, 2007 to establish goals and specific performance
objectives for the remainder of Calendar Year 2007 and Calendar Year 2008. As done in
the past, staff has added proposed action steps and has identified lead parties, contributors
and funding sources for your consideration.
Attached is an initial draft for Council review. Since this will be the first time that the
Council will review the goals and objectives, along with the actions proposed by staff,
formatting, etc. has been left until after this initial review and discussion.
Please note that there is no Goal 5 and that the proposed actions for Goal 8 related to
public safety will be presented at the work session.
Requested Council Direction
Staff is seeking any desired changes from the Council. The goals document has not been
placed on a regular council agenda for action to afford adequate time for Council review
and discussion.
Attachment
1. Goals, Objectives, Management Action Plan: 2007 -2008
1
DRAFT
Goals, Objectives, Management Action Plan: 2007 -2008
Listed below are the revised goals established by the City Council for the
period 2008 through 2013 and specific performance objectives for the
remainder of Calendar Year 2007 and Calendar Year 2008, as established
at the march 28, 2007 goals setting session. As done in the past, staff has
added proposed action steps and has identified lead parties, contributors
and funding sources for your consideration.
1. Complete Town Center
A. Calendar Year 2007 & 2008:
(1) Objective: Complete development of owner and rental
housing component over five -year period.
(2) Objective: Complete development of commercial
component over five -year period.
a. Key Action Steps: Aggressively market and continue to
support developers' marketing efforts.
b. Lead party: Community Development Staff
Key Contributors: Hartford Development
c. Funding Source: General Fund. Primarily Staff Time
2. Plan for and implement needed local regional
transportation improvements.
A. Calendar Year 2007:
(1) Objective: Pursue funding for local transportation
improvements for; 1) 49/J Intersection; 2) Lake Drive /Main
Street Intersection; and 3) Northerly bypass (Main St - 35W
to 35E).
a. Key Action Steps:
i. Support Anoka County appliciations for obtaining
Federal Funding
1
ii. Continue working with Anoka County on planning
efforts
b. Lead party: Community Development Staff
Key Contributors: City Council
Anoka County
Springsted Inc.
Finance Department
c. Funding Source: General Fund. Primarily Staff Time
B. Calendar Year 2008:
(2) Objective: Prepare an Access Management Plan for Birch
Street that includes provisions for pedestrian and bicycle
safety improvements.
(3)
a. Key Action Steps:
i. Retain professional services to conduct planning
study
b. Lead party: Community Development Staff
Key Contributors: Anoka County
Planning and Zoning Board
City Council
Public Works and Public Services
c. Funding Source: General Fund. Primarily Staff Time.
May have a cost share with Anoka County.
35W to 35E.
(3) Incorporate Northerly By -pass (Main St. 35W to 35E) into
Comprehensive Plan
a. Key Action Steps:
i. Identify transportation corridor and adopt policy
language to recognize future need
b. Lead party: Community Development Staff
Key Contributors: Anoka County
Comp Plan Advisory Panel
Planning and Zoning Board
City Council
c. Funding Source: General Fund. Included with
Comprehensive Plan Update
2
2. Plan for and implement needed local regional
transportation improvements.
A. Calendar Year 2007:
(2) Objective: Pursue funding for local transportation
improvements for; 1) 49/J Intersection; 2) Lake Drive /Main
Street Intersection; and 3) Northerly bypass (Main St - 35W
to 35E).
b. Key Action Steps:
i. Support Anoka County appliciations for obtaining
Federal Funding
ii. Continue working with Anoka County on planning
efforts
b. Lead party: Community Development Staff
Key Contributors: City Council
Anoka County
Springsted Inc.
Finance Department
c. Funding Source: General Fund. Primarily Staff Time
B. Calendar Year 2008:
(2) Objective: Prepare an Access Management Plan for Birch
Street that includes provisions for pedestrian and bicycle
safety improvements.
(3)
b. Key Action Steps:
Retain professional services to conduct planning
study
b. Lead party: Community Development Staff
Key Contributors: Anoka County
Planning and Zoning Board
City Council
Public Works and Public Services
c. Funding Source: General Fund. Primarily Staff Time.
May have a cost share with Anoka County.
35W to 35E.
(3)
Incorporate Northerly By -pass (Main St. 35W to 35E) into
Comprehensive Plan
b. Key Action Steps:
Identify transportation corridor and adopt policy
language to recognize future need
b. Lead party: Community Development Staff
Key Contributors: Anoka County
Comp Plan Advisory Panel
Planning and Zoning Board
City Council
c. Funding Source: General Fund. Included with
Comprehensive Plan Update
3. Goal: Review and update the City Charter so that it reflects and
facilitates current and future needs of the City.
a. Specific Performance Objectives to be completed during the remainder of
2007:
(1)
Completion of Citizen Charter Task Force Study (June 1,
e 25, 2007).
Key Action Steps:
i. Citizen Task Force completes research
ii. Task Force prepares written report
iii. Task Force presents report to City Council
Lead Party:
Key Contributors:
Citizens Task Force
General public
Charter Commission
City Council
TKDA
Springsted Inc.
Kennedy and Graven
City Staff
Funding sources: General Fund
(2) Accept report of the Citizen Charter Task Force.
Key Action Step:
i. City Council takes formal action to accept report
Lead Party:
4
City Council
(3)
Key Contributors:
Funding sources: No funds required
Take appropriate Council action on
recommendations contained in the report which
may include:
ballot, or
• Placing specific street project(s) on ballot.
Key Action Steps:
i. City Council considers findings and
recommendations of report
ii. City Council determines whether to support
amendments to the charter
iii. If Council supports amending the charter, a
process is identified for developing the
specific amendment. (Alternatives provided
in statutes.)
iv. Proposed amendment is drafted.
v. City Council acts to place amendment
question on ballot (September 10), if process
includes referendum
vi. Public information program is developed
and implemented, if process includes
referendum
vii. Referendum held Nov. 6, if included in
process
Lead Party:
Key Contributors:
City Council
Citizens Task Force
Charter Commission
General public
TKDA
Springsted Inc.
Kennedy and Graven
City Staff
Funding sources: General Fund
b. Specific Performance Objectives to be completed in 2008:
(1) Amend the City Charter in accordance with the
election, or by ordinance (if process does not
include referendum)
(2) Place appropriate street project(s) on ballot.
Lead Party: City Council
Key Contributors: Kennedy and Graven
Funding sources: General Fund
4. Goal: Review and update City's Recreation
projects and priorities.
A. Calendar Year 2007
(1) Objective: Review and update Park Dedication Ordinance
a. Key Action steps:
i. City staff prepares Park Dedication Analysis
report
ii. Park Board reviews and comments on report
iii. City Council considers proposed ordinance for
approval
b. Lead Party: Public Services Department
Key Contributors: Park Board
City Council
c. Funding Sources: Existing Personnel Budget
(2) Objective: Pursue additional Birch Street Pedestrian
Crossing
(3)
a. Key Action steps:
i. Evaluate, select, and prioritize potential
crossing locations
ii. Begin dialogue with Anoka County Highway
and Parks Departments
iii. Begin exploring potential funding sources
b. Lead Party: Public Services Department
Key Contributors: Anoka County Highway Department
Anoka County Parks Department
c. Funding Sources: Existing Personnel Budget, Professional Services Budget
Objective: Complete Legacy Trail Project
a. Key Action steps:
i. Oversee construction of the trail
b. Lead Party: Public Services Department
Key Contributors: TKDA
c. Funding Sources: Special Assessments and Legacy Park Dedication
(4) Objective: Redevelop Lino Park
(5)
a. Key Action steps:
i. City Staff /TKDA prepare plans and
specifications
ii. City Council accepts plans and specifications,
authorizes advertising for bids
iii. City Council awards bid
iv. City Staff/TKDA oversees implementation of
redevelopment plan
b. Lead Party: Public Services Department
Key Contributors: TKDA
City Council
c. Funding Sources: Dedicated Parks Fund
Objective: Analyze potential development of recreation
complex
a. Key Action steps:
i. Develop feasibility study of phasing plan for
eventual completion of improvements
ii. Park Board reviews and comments on
feasibility study
iii. City Council accepts feasibility study
b. Lead Party: Public Services Department
Key Contributors: Brauer and Associates, Ltd
TKDA
Park Board
City Council
c. Funding Sources: $30,000 for preparation of feasibility study. No dollars
included in 2007 budget
B. Calendar Year 2008
(1) Objective: Consider potential development of recreation
complex
a. Key Action steps:
i. Develop alternative financing plans necessary
to complete recommended phasing efforts
7
ii. City Council determines whether to proceed
with phasing plan. If so, City Council identifies
preferred financing plan, and sets timeline for
Phase I improvements
iii. City staff analyzes /determines whether any
modifications to master plan are warranted
b. Lead Party: Public Services Department
Key Contributors: Finance Department
Springsted, Inc.
City Council
c. Funding Sources: Up to $10,000 for consultant fees to develop financing
options
6. Goal:Diversify, expand, and enhance the City's tax base.
A. Calendar Year 2007:
(1) Objective: Analysis of where economic development
opportunities exist within the City for expansion of the City's
tax base.
a. Key Action Steps:
Identify opportunities as part of Comprehensive Plan
Update Process
b. Lead party: Community Development Staff
Key Contributors: Comprehensive Plan Advisory Panel
EDAC
c. Funding Source: General Fund. Primarily Staff Time
B. Calendar Year 2008:
(1) Objective: Develop Marketing Plan.
b. Key Action Steps:
i. Complete market study based on identified available
commercial /industrial land uses
ii. Develop effective marketing materials based on
results of the market potential in Lino Lakes
b. Lead party: Community Development Staff
Key Contributors: EDAC
City Council
c. Funding Source: General Fund. Will need to provide
funding for Marketing Consultant
(2) Objective: Align Economic Development and Marketing
strategy to the Comp Plan.
(3)
c. Key Action Steps:
Identify opportunities for expansion of commercial
and industrial tax base (see Objective 1)
Review and update EDAC economic development
goals and strategies to ensure it reflects:
• 2030 Community Vision
• Market study's assessment of
city's opportunities and timeline
b. Lead party: Community Development Staff
Key Contributors: Comprehensive Plan Advisory Panel
EDAC
c. Funding Source: General Fund. Primarily Staff Time
Objective: Establish the necessary internal organization
capability to promote expansion and marketing of economic
development opportunities.
d. Key Action Steps:
Define economic development expectations based
on results of market study, existing available land
use and existing development standards
ii. Evaluate staff organization and effectiveness in
promoting economic development opportunities
iii. Establish public relations campaign that is
consistently applied by city council, staff and city
advisory boards to ensure city's positive economic
development message reaches the development
community
b. Lead party: Community Development Staff
Key Contributors: City Council
EDAC
Comprehensive Plan Task Force
c. Funding Source: General Fund. Primarily Staff Time
(4) Objective: Review project approval process (pending
Comprehensive Plan Update and approval schedules).
e. Key Action Steps:
i. Evaluate current approvals process and identify
areas for improvement (pending update of Comp
Plan)
ii.
b. Lead party: Community Development Staff
Key Contributors: City Council
Comprehensive Plan Advisory Panel
c. Funding Source: General Fund. Primarily Staff Time
7. Goal: Establish an appropriate revenue generation
and allocation policy for the City.
a. Specific Performance Objectives for the remainder of 2007:
(1)
Objective: Review Stormwater Utility Study
Key Action Steps:
a) Review /Revise original SWU Study
b) Present draft proposal to City Council
c) Create Public Information Materials /Mailings
d) Hold Public Information Meetings — Public
Input
e) Hold public hearing /Approve SWU
f) Implement Utility — 2008/2009
Lead party:
Key Contributors:
Finance /Community Development Staff
City Council
SEH, Inc.
Public Services
Funding Sources: Stormwater Management Fund /development related fees
(2) Objective: Develop action plan based upon
results of the review.
See # (1) above.
(3)
Objective: Obtain citizen input as to how funds
are allocated:
• Budget information session
• Town Hall meetings
• Other appropriate forums /methods for achieving
citizen input.
10
Is this related to the SWU or is this separate? If SWU,
see # (1). If not, we already have public forums during
the budgeting process, including work sessions, council
meetings and public hearings.
(4) Objective: Review financing policies around
infrastructure implementation.
Key Action Steps:
1) Review policy with City Council.
a) If determined no change needed, done.
b) If determined that change is needed,
2) Formulate /Adopt new infrastructure financing
(special assessment) policy
a) Acquire /review policies from other cities
b) Review policy samples and formulate draft
policy
c) Present /review draft policy with City Council
d) Hold public hearing /Approve Policy
Lead party:
Key Contributors:
Finance Staff
City Council
Community Development
SEH, Inc.
Springsted, Inc.
Public Services
Funding Sources: General Fund /Area & Unity Fund
(5) Objective: Complete a Utility Rate Study.
Key Action Steps:
a) Complete Water Emergency and
Conservation Plan — establish rate structure
b) Obtain Utility Rate Study proposal (Done)
b) City Council authorize rate study (June 25)
c) Complete study and present to City Council
d) City Council accept study
e) Hold public hearing /adopt rates
f) Implement new rates — January, 2008
Lead party: Finance Staff
Key Contributors: City Council
SEH, Inc.
Springsted, Inc.
Public Services
Funding Sources: Water /Sewer Funds - equally
b. Specific Performance Objectives for 2008: Implement the
policies established during 2007.
8. Goal: Maintain safe neighborhoods and community
areas.
a. Specific Performance Objectives to be pursued during the
remainder of 2007 and into 2008 as necessary:
(1) Continue to promote the importance of establishing
a sense of security throughout the community and
maintaining support for the Fire Department, Police
Department, and community involvement of the
following groups:
• Explorers
• Reserve Officers
• Office Volunteers
• Public Safety City Commission
• Chaplain
• Community Emergency Response Teams
• Neighborhood Watch
• National Night Out
• Business Watch
(2) Adopt a Crime Free Multi- Housing Ordinance.
(3) Adopt a Megahertz Public Safety Radio System
Ordinance (800 Megahertz)
(4) Update Emergency Plan during 2007 and conduct a
functional exercise of the plan in 2008.
(5) Review Task Force options pertaining to the
following areas:
• Gang Task Force
• Drug Task Force
• Violent Offenders Task Force
9. Address projected housing needs for the City of Lino
Lakes.
A. Calendar Year 2007:
(1) Objective: Provide land use areas in the Comp Plan that
would allow densities that make affordable housing possible.
f. Key Action Steps:
Align Comp Plan land use map with housing goals
ii.
b. Lead party: Community Development Staff
Key Contributors: Comprehensive Plan Advisory Panel
c. Funding Source: General Fund. Primarily Staff Time
B. Calendar Year 2008:
(1) Objective: Evaluate incentives that will encourage the
private sector to supply affordable housing products
(examples: density bonuses, lot size flexibility).
g. Key Action Steps:
i. Work with development community to use best
management practices for locating affordable
housing product within new development
ii. Evaluate programs for maintaining current housing
stock
b. Lead party: Community Development Staff
Key Contributors: City Council
c. Funding Source: General Fund. Primarily Staff Time
(2) Objective: Provide Integrate life cycle /affordable housing
into new residential cotea neighborhoods.
h. Key Action Steps:
Work with development community to use best
management practices for locating affordable
housing product within new development ( See
objective 1)
b. Lead party: Community Development Staff
Key Contributors:
13
c. Funding Source: General Fund. Primarily Staff Time
Objective: Develop Ordinances and related policies to keep
housing affordable, safe, and attractive.
i. Key Action Steps:
i. See Police Department Goals
ii.
b. Lead party: Community Development Staff
Key Contributors:
c. Funding Source: General Fund. Primarily Staff Time
WS — Item 7
WORK SESSION STAFF REPORT
Work Session Item 7
Date: Council Work Session, June 4, 2007
To: City Council
From: Gordon Heitke
Re: VLAWMO JPA Amendments
Background
The VLAWMO Board is considering establishing a storm water utility as a means of
generating revenue rather than relying on annual general fund appropriations from its
member units. This change will require an amendment to the current joint powers
agreement between members. Discussions are also continuing as to whether the JPA will
have to be modified, as being requested by the state oversight agency, the Board of Water
and Soil Resources (BWSR), to give final authority to the VLAWMO board for setting
budgets, rather than approval by the governing body of each member.
Council member /VLAWMO board member Carlson has asked that the attached
information be provided to the rest of the Council as background information on current
VLAWMO Board discussions.
Requested Council Direction
Council member Carlson is looking to update the rest of the Council on the VLAWMO
issues and discussions and may be seeking the Council's position on some issues
Attachment(s)
1. Schilling memos, dated May 18 and May 25, 2007
2. Storm Water Utility Feasibility /Implementation Study
3. Agenda — May 17, 2007 VLAWMO JPA Meeting
4. Roger Jensen letter, May 24, 2007
5. Proposed JPA changes
Memorandum - Schilling Consultant Services LLC
Date: May 18, 2007
To: Ms. Stephanie McNamara, Administrator and Board of Directors
Vadnais Lake Area Water Management Organization
C: VLAWMO Board of Directors
From: Joel G. Schilling, Principal
RE: VLAWMO Joint Powers Agreement, Amendment Draft for a Storm Water Utility
Attached for your review at the May 24th meeting is an amendment draft to the VLAWMO Joint Powers Agreement (JPA)
pertaining to the establishment of a Storm Water Utility (a.k.a. storm sewer utility). The JPA amendment was prepared
by Mr. Charles LeFevere, Attorney with Kennedy & Graven, Chartered, a member of our project team.
Subdivision 24, paragraph 3) discusses the establishment of a Total Maximum Utility Charges amount for the VLAWMO.
Based upon the initial concept effort to look at a VLAWMO utility, we estimated (January 19, 2007 memorandum report)
that a single family residential charge of $1.00 /month would generate approximately $392,000 in revenue without a credit
system in place. Therefore, we recommend a Total Maximum Utility Charge amount of $450,000 as an adequate amount
over the short-term (3 — 5 years) to fund the VLAWMO services without having to go back to its Members to amend the
Joint Powers Agreement.
We believe the amended JPA provides the necessary authority for the VLAWMO to move forward with conducting the
SWU feasibility study and have a system in place for fiscal year 2008.
(Z,j,
3' �
��2
05/21/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 1
AMENDMENT TO
JOINT POWERS AGREEMENT
THIS AMENDMENT is made and entered into as of the last date of execution by and between the participating
units of local govemment of the cities of Gem Lake, Lino Lakes, North Oaks, Vadnais Heights and White Bear Lake and
the Township of White Bear (hereinafter collectively referred to as "Members ").
WHEREAS, the Members are parties to an agreement entitled JOINT POWERS AGREEMENT TO PROTECT
AND MANAGE THE VADNAIS LAKE AREA WATERSHED (hereinafter the "Agreement"), pursuant to which the
Members have formed a watershed management organization in accordance with Minnesota Statutes, Section 103B.201
et seq. (the "Metropolitan Surface Water Management Act"); and
WHEREAS, the parties have agreed that it is reasonable, appropriate and in the best interests of the public to
amend the Agreement as hereinafter set forth.
NOW, THEREFORE, on the basis of the premises and the mutual promises herein set forth, the Members agree
as follows:
1. Section VI is amended by adding new Subdivision 24 as follows:
Subdivision 24. Storm Sewer Utility.
1) The Board may establish, operate and fund a storm sewer utility in accordance with Minnesota
Statutes, Section 444.075 and subject only to the limitations thereof and of this Agreement. The
utility may include all storm sewer systems and facilities including ditch systems transferred to
the Commission pursuant to Minnesota Statutes, Section 103B.211, Subd.1(a)(4), drainage
systems conveying surface water between Member jurisdictional boundaries and any other
activities and facilities authorized by Minnesota Statutes, Section 444.075.
2) The Board may enter into such contracts with Members, other units of government or other
parties as the Board deems reasonable and necessary for the operation of the storm sewer
utility, including but not limited to, contracts for construction, operation, repair and maintenance
of facilities, and for collection of storm sewer charges.
3) The Board may not establish rates at an amount that will result in annual charges of more than
the Total Maximum Utility Charges without the consent of a majority of the Members by
resolution by their goveming bodies. The Total Maximum Utility Charges for 2007 are
$ . Thereafter, the Total Maximum Utility Charges will increase or decrease
each year based on the annual change in the Consumer Price Index ( "CPI ") (U.S. Department
of Labor: Not seasonally adjusted, Midwest urban, All Items, All Urban Consumers) from March
of the year that is two years prior to the year the charges are imposed to March of the year
before the charges are imposed. (For example, the Total Maximum Utility Charges for 2008 will
be determined by the change in the CPI from March 2006 to March 2007. This would make
CPI adjustment numbers available during 2007, leaving sufficient time to establish rates and
budgets for 2008.)
4) The Board may set and collect fees and charges for expenses of the utility in accordance with
Minnesota Statutes, Section 444.075.
5) The Board may adopt and enforce rules and regulations for the operation of the storm sewer
utility.
6) Any Member may create, operate and maintain its own storm sewer utility and collect fees and
charges for its own storm sewer facilities. Such utility may be operated independently by the
Member or cooperatively by agreement between the Commission and the Member.
05/21/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 2
7) The Board is not authorized to issue and sell obligations to finance its utility.
2. Section VI is amended by adding new Subdivision 25 as follows:
Subdivision 25. County Tax Levy. The Board shall have the authority to certify for payment by the
counties all or any part of the cost of a capital project contained in the capital improvement program of
the Watershed Management Plan, in accordance with Minnesota Statutes, Section 103B.251.
3. Section VI is amended by adding new Subdivision 26 as follows:
Subdivision 26. Funding of Capital Projects. Capital projects may be funded by Member
contributions in accordance with Subdivision 6 of this Section, Storm Sewer Utility Charges in
accordance with Subdivision 24 of this Section, a County Tax Levy in accordance with Subdivision 25 of
this Section, by separate agreement between the Commission and all Members contributing to the cost
of a project, or any combination of such means of funding.
This Amendment may be executed in several counterparts and all counterparts so executed shall constitute one
agreement that is binding on all of the Members notwithstanding that all of the Members are not signatory to the original of
the same counterpart.
05/21/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 3
IN WITNESS WHEREOF, the following parties have executed this Amendment on the day of last execution
hereof by all parties:
CITY OF GEM LAKE By:
Mayor
Dated: / / Attest:
City Clerk
CITY OF LINO LAKES By:
Mayor
Dated: / / Attest:
City Clerk
CITY OF NORTH OAKS By:
Mayor
Dated: / / Attest:
City Clerk
CITY OF VADNAIS HEIGHTS By:
Mayor
Dated: / / Attest:
City Clerk
CITY OF WHITE BEAR LAKE By:
Mayor
Dated: / / Attest:
City Clerk
WHITE BEAR TOWNSHIP By:
Chair
Dated: / / Attest:
05/21/07
46 Bertha Ct., Mahtomedi, MN 55115 -2031 4
Memorandum - Schilling Consultant Services LLC
Date: May 25, 2007
To: Ms. Stephanie McNamara, Administrator and Board of Directors
Vadnais Lake Area Water Management Organization (VLAWMO)
From: Joel G. Schilling, Principal
RE: VLAWMO Joint Powers Agreement - Amendments for Revenue Funding
Attached are the revised amendments to the VLAWMO Joint Powers Agreement adopted by motion at the May 24th
Board of Directors meeting. Specific changes from the May 18th draft document and incorporated within pages two
through 4 are as follows:
1. Deleted the word "Commission" and insert "Board" in Subdivision 24, paragraphs 1) and 6) and Subdivision 26.
2. Inserted $400,000 at the end of the first sentence of Subdivision 24, paragraph 3) reflecting the Total Maximum
Utility Charges for 2007.
3. The second sentence in Subdivision 24, paragraph 3) which begins "Thereafter, the Total .... Etc." pertaining to
the use of the Consumer Price Index (CPI) as an annual cost escalator for the Storm Water Utility was stricken.
The suggested JPA amendments relate primarily to authority for establishing a Storm Water Utility (a.k.a. Storm Sewer
Utility) and potential use of county levy authority for capital improvement projects, both in accordance with respective
Minnesota Statutes. Please contact me if you have any questions regarding the attached document.
05/30/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 1
AMENDMENT TO
JOINT POWERS AGREEMENT
THIS AMENDMENT is made and entered into as of the last date of execution by and between the participating
units of local government of the cities of Gem Lake, Lino Lakes, North Oaks, Vadnais Heights and White Bear Lake and
the Township of White Bear (hereinafter collectively referred to as "Members ").
WHEREAS, the Members are parties to an agreement entitled JOINT POWERS AGREEMENT TO PROTECT
AND MANAGE THE VADNAIS LAKE AREA WATERSHED (hereinafter the "Agreement "), pursuant to which the
Members have formed a watershed management organization in accordance with Minnesota Statutes, Section 103B.201
et seq. (the "Metropolitan Surface Water Management Act "); and
WHEREAS, the parties have agreed that it is reasonable, appropriate and in the best interests of the public to
amend the Agreement as hereinafter set forth.
NOW, THEREFORE, on the basis of the premises and the mutual promises herein set forth, the Members agree
as follows:
1. Section VI is amended by adding new Subdivision 24 as follows:
Subdivision 24. Storm Sewer Utility.
1) The Board may establish, operate and fund a storm sewer utility in accordance with Minnesota
Statutes, Section 444.075 and subject only to the limitations thereof and of this Agreement. The
utility may include all storm sewer systems and facilities including ditch systems transferred to
the Board pursuant to Minnesota Statutes, Section 103B.211, Subd.1(a)(4), drainage systems
conveying surface water between Member jurisdictional boundaries and any other activities and
facilities authorized by Minnesota Statutes, Section 444.075.
2) The Board may enter into such contracts with Members, other units of government or other
parties as the Board deems reasonable and necessary for the operation of the storm sewer
utility, including but not limited to, contracts for construction, operation, repair and maintenance
of facilities, and for collection of storm sewer charges.
3) The Board may not establish rates at an amount that will result in annual charges of more than
the Total Maximum Utility Charges without the consent of a majority of the Members by
resolution by their governing bodies. The Total Maximum Utility Charges for 2007 are
$400,000.
4) The Board may set and collect fees and charges for expenses of the utility in accordance with
Minnesota Statutes, Section 444.075.
5) The Board may adopt and enforce rules and regulations for the operation of the storm sewer
utility.
6) Any Member may create, operate and maintain its own storm sewer utility and collect fees and
charges for its own storm sewer facilities. Such utility may be operated independently by the
Member or cooperatively by agreement between the Board and the Member.
7) The Board is not authorized to issue and sell obligations to finance its utility.
05/30/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 2
2. Section VI is amended by adding new Subdivision 25 as follows:
Subdivision 25. County Tax Levy. The Board shall have the authority to certify for payment by the
counties all or any part of the cost of a capital project contained in the capital improvement program of
the Watershed Management Plan, in accordance with Minnesota Statutes, Section 103B.251.
3. Section VI is amended by adding new Subdivision 26 as follows:
Subdivision 26. Funding of Capital Projects. Capital projects may be funded by Member
contributions in accordance with Subdivision 6 of this Section, Storm Sewer Utility Charges in
accordance with Subdivision 24 of this Section, a County Tax Levy in accordance with Subdivision 25 of
this Section, by separate agreement between the Board and all Members contributing to the cost of a
project, or any combination of such means of funding.
This Amendment may be executed in several counterparts and all counterparts so executed shall constitute one
agreement that is binding on all of the Members notwithstanding that all of the Members are not signatory to the original of
the same counterpart.
05/30/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 3
IN WITNESS WHEREOF, the following parties have executed this Amendment on the day of last execution
hereof by all parties:
CITY OF GEM LAKE
Dated: / /
CITY OF LINO LAKES
Dated: / /
CITY OF NORTH OAKS
Dated: / /
CITY OF VADNAIS HEIGHTS
Dated: / /
CITY OF WHITE BEAR LAKE
Dated: / /
WHITE BEAR TOWNSHIP
Dated: / /
By:
Mayor
Attest:
City Clerk
By:
Mayor
Attest:
City Clerk
By:
Mayor
Attest:
City Clerk
By:
Mayor
Attest:
City Clerk
By:
Mayor
Attest:
City Clerk
By:
Chair
Attest:
05/30/07 46 Bertha Ct., Mahtomedi, MN 55115 -2031 4
Schilling Consultant Services LLC
STORM WATER UTILITY - FEASIBILITY / IMPLEMENTATION STUDY
FOR
VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION
SCOPE OF WORK
MAY 2007
Task One Technical Assessment Phase
Subtask 1 Parcel and Land Use Analysis
The Subtask will consist of a detailed analysis of the Metro- Regional parcel dataset using Geographic
Information System (GIS) software. Data analyses will include only those parcels within the
VLAWMO boundary. Information generated from Subtask I will be shared with VLAWMO Technical
Commission members and their respective local government staff for review to determine final parcel
dataset accuracy for the creating the Storm Water Utility (SWU). Assistance from VLAWMO member
staff is important to the success of setting up the dataset. Specific processes to be undertaken in the
Subtask 1 are as follows:
• Analyze the dataset for missing parcels, data errors or oriiissions, evaluate parcels that are within
VLAWMO boundary, but may not contribute runoff based on height -of -land topography or other
means; and evaluate nearby parcels which are outside VLAWMO and may contribute runoff based
on height -of -land topography or other means.
• Compare land use descriptors for parcels within the Metro - Regional dataset to the land use
categories presently in use for each of the VLAWMO members. Based upon the comparison,
prepare a VLAWMO land use category system for use in the SWU rate allocation process.
• Conduct a final evaluation all parcels and specific land use categories. Conduct a subset analysis of
respective land use categories using the most recent aerial photography to assure data set accuracy
and allocation of SWU rate assigmnents in the creation of a VLAWMO — SWU dataset for use in
Subtask 2.
Subtask 2 Storm Water Utility Rate Scenarios
Subtask 2 consists of conducting engineering and fiscal analyses of the VLAWMO — SWU dataset to
determine appropriate rates assigned to the various land uses. The outcome from the Subtask 2 will be a
draft SWU system that will satisfy the VLAWMO short and long -term revenue generation needs. The
VLAWMO Technical Commission will have an active role in developing outcomes from this Subtask 2.
Specific processes undertaken in Subtask 2 are as follows:
Page 1 of 3
05/24/07
Schilling Consultant Services LLC
• Review the VLAWMO Fiscal Year 2007 budget allocations for administration, operations &
maintenance activities, capital improvements and reserves. Conduct a similar review of the draft
VLAWMO Watershed Management Plan for projected short and long -term capital improvement
estimated expenditures. Determine revenue projections necessary for VLAWMO budgets in fiscal
years 2008 through 2012.
Conduct engineering and fiscal analyses of the VLAWMO — SWU parcel dataset and prepare three
utility rate scenarios achieving budget projections for short and long -term needs. The utility rate
scenarios will address different approaches, which may use average single - family parcel size,
different rates, and/or another mechanism which is appropriate and defendable. The analysis will
include evaluating those property land uses or cover types which the VLAWMO Technical
Commission may determine should be exempted from a VLAWMO — SWU (e.g. agriculture,
roadway right -of -way, parks or open space, etc.).
• Prepare an outline approach for a stormwater utility credit system. Such an outline will provide
examples used by other local government stormwater utilities in Minnesota and elsewhere along
with the pros and cons of each. It is recommended that a stormwater utility credit system if found to
be an acceptable approach by VLAWMO would not be implemented until 2008.
• Review and identify existing parcels within the VLAWMO — SWU dataset that are currently tax -
exempt parcels and not served by any VLAWMO member utility. Set -up a VLAWMO billing
system for such parcels. It should be noted that this parcel file subset of the VLAWMO — SWU
dataset is not expected to be a large file. Prepare a VLAWMO — SWU billing file system for
remaining utility subset. The subset file system will be prepared using appropriate data file
software suitable for both Anoka and Ramsey counties (e.g. spreadsheet or other) based upon
communications with county staff persons.
Estimated Cost for Task One: $21,000
Deliverable: VLAWMO parcel and data set files suitable for review by staff and the VLAWMO
Technical Commission, usage by Anoka and Ramsey counties for billing purposes and for billing those
parcels that may not be possible under the respective county system.
Task Two Public Information and Public Involvement Phase
This study phase consists of a two -part approach to assure that adequate efforts have been made to both
inform and involve the public in the establishment of a VLAWMO — SWU as well as its governing body
and members. Specific processes to be undertaken in the Task are as follows:
1. Prepare two SWU brochures that will both explain the existence and responsibilities for VLAWMO.
Additionally, the first brochure will explain the implementation of a SWU, its purpose and
outcomes for the regional area. The second brochure will address the potential SWU fee credit
option will be identified for possible implementation in 2008. An appropriate number (— 5,000)
color copies of the two brochures will be prepared for mailing by VLAWMO. Assist VLAWMO
staff in the preparation of any website updates and/or postcard notifications to fee payers further
directing them to information on the proposed SWU.
Page 2 of 3 05/24/07
Schilling Consultant Services LLC
2. Prepare information on the proposed SWU and attend at least two, but not more than four
VLAWMO Technical Commission meetings to present and discuss. Similarly, prepare and attend
one meeting each of VLAWMO members to explain the SWU and its application.
Estimated Cost for Task Two: $7,000
Deliverables: Preparation of two brochures and related SWU information for attendance at
information member meetings.
Task Three Final Report Phase
Task Four will be the completion and issuance of the Feasibility / Implementation Study report for the
VLAWMO — SWU. A total of fifteen (25 copies) of the report will be prepared and provided to
VLAWMO for distribution to both the VLAWMO Technical Commission and Board of Directors.
Estimated Cost for Task Two: $2,500
Deliverables: Preparation of Feasibility / Implementation Study report for VLAWMO staff ,
Technical Commission and Board of Directors. St--'14
Task Four SWU Follow -up Training and Information inquiries
Consultant team will provide up to two training events for VLAWMO staff. The training will the SWU
allocations spreadsheet software, parcel land use calculation and SWU rate determination for selected
representative parcels for each VLAWMO member, information to be provided to respective county
billing staff, procedure for annual updating of parcel dataset and other integral parts of the system. In
addition, consultant team will be available for questions regarding the VLAWMO SWU and its
development and operation for a period of up to one year following adoption by the VLAWMO Board
of Directors.
Estimated Study Cost Allocation
Task One: $21,000
Task Two $ 7,000
Task Three: $ 2,500
Task Four: $ 0
Total: $30,500
Page 3 of 3
S�t�
4,
35" j \- „v!
1(DC) - 7
05/24/07
Agenda
VLAWMO Joint Powers Agreement meeting
10:30 a.m., May 17, 2007
BWSR Office Building
1. Review of VLAWMO annual budget approval process
a. Annual process
b. BWSR concerns
c. Consensus (possible amendment discussion)
2. Stormwater Utility JPA amendment proposal
3. CIP levy JPA amendment proposal (103B.251)
LAW OFFICES OF
JENSEN, BELL, CONVERSE & ERICKSON, P.A.
Roger A. Jensen 1500 Wells Fargo Place Telephone (651) 223 -4999
James C. Erickson, Sr. *$ 30 East Seventh Street Facsimile (651) 223 -4987
Caroline Bell Beckman St. Paul, MN 55101
Charles R. Bartholdi
Mitchell W. Converse * Also Admitted in Wisconsin
Kari L. Quinn* tOf Counsel
Carol A. Baldwin $ Certified Civil Trial Specialist
Mark F. Gaughan
James C. Erickson, Jr.
Robert C. Bell t
Willard L. Converse t
May 24, 2007
VIA E -MAIL
Ms. Stephanie McNamara
Administrator — Wetlands
Vadnais Lake Area Water
Management Organization
800 East County Road E
Vadnais Heights, MN 55127
RE: Amendment to VLAWMO Joint Powers Agreement
Our File: 3518.1
Dear Stephanie:
You have asked me to draft an amendment to Article VIII of the VLAWMO Joint Powers
Agreement, dealing with apportionment of the various members' shares of the operating and
capital improvement budgets. This modification to the Agreement is being required by Brad
Wozney of the Minnesota Board of Water and Soil Resources (BWSR) who you and I met with
along with a representative of the attorney general's office. Their objection to the current Joint
Powers Agreement funding provision is that it allows any individual member to disapprove the
operating budget and capital improvement budget allocations and thus, in their words, "each
member has veto power on budgets and projects ".
The modifications to the Joint Powers Agreement, contained in the amended language of Article
VIII, a marked up and a clean copy of which I enclose herewith, provide for the following:
1. Members are given the opportunity to review and make recommendations to the
VLAWMO Board regarding the proposed operating and capital improvement
budgets for the following calendar year.
2. The VLAWMO Board makes a final determination on the operating and capital
improvement budgets and the allocation of the costs among members.
2
I 2OCT?
Page 2
05/24/07
3. If a member objects to its allocation, the decision of the Board may be appealed to
final and binding arbitration before a three party arbitration panel, one appointed
by the appealing member, anothbr appointed by the VLAWMO Board and a
neutral third -party arbitrator, who will act as chair, appointed by the Chief
Administrative Law Judge of the State or the Chief Judge of the Ramsey County
District Court. The decision of the arbitration panel will be final and binding and
will be enforceable in the District Court pursuant to Minnesota Statutes, Chapter
572, the Uniform Arbitration Act.
This procedure is similar to the procedure set forth in the Joint Powers Agreement establishing
the Shingle Creek Water Management Commission which includes the Cities of Brooklyn
Center, Brooklyn Park, Crystal, Maple Grove, Minneapolis, New Hope, Osseo, Plymouth and
Robbinsdale.
With the above - described modification to the Join Powers Agreement, the BWSR representative
has indicated that BWSR will approve the Agreement.
Call me if you have any questions or suggested modifications.
Very truly yours,
JENSEN, BELL, CONVERSE & ERICKSON
Roger A. Jensen
RAJ /sma
Enc.
VIII
FINANCING VLAWMO
Subdivision 1. Annual Operating Budget. On or before July 1st of each year, the Board shall
prepare a proposed annual operating budget for the following calendar year. The budget shall
provide funds to operate VLAWMO for the next calendar year. The proposed operating budget
and the sources for these funds shall be recommended for approval to the Members.
The annual operating budget may be funded by one or more of the following:
1) A An authorized special tax levy authorized by the State of Minnesota for an amount
approved by the Members;
2) VLAWMO operated Storm Water Utility authorized by the State of Minnesota and
approved by the Member:,;
3) Annual payment from each governmental unit party to this agreement and other
entities based on an annual assessment as determined in Subdivision 2 in this Section;
and
4) Service fees, grants, interest or other funding sources as available.
Each Member shall pay its annual assessment in the following manner:
1) The entire amount shall be due by January 31st of the year duc; or
2) One -half (1/2) of each Member's entire amount shall be due by January 31 of the year
due and the second one -half (1/2) of the entire amount shall be due by August 31 of
the y ar duc.
Failure to pay the required amounts by the due dates will cause a one (1) percent per month
service fee to be added to the unpaid amount due.
Subdivision 2. Budget Meeting and Approval. The proposed annual Operating and Capital
Improvement budgets for the next calendar year shall be prepared by July 1 of each calendar
year. Each member shall review the proposed operating budget and may make comments to the
Board regarding the shall either approve, reject or proposed an amended operating budget on or
before October 15th of each year. No response from a Member, within this time will be
After sabsy�t�rr o comni
Members, the Bawd shall confider Said com meats and shall adopt „a final o er ti ns b c ge on r
before October 1 of each ear.fmal approval of the proposed operating budget by each Member.
tThe Secretary shall certify and prepare a statement showing the approved operating budget and
the assessed amount to be paid by each Member on or before October 31 each year.
Subdivision 3. Annual Assessment for Services.
The annual contribution of each Member or other entity shall be calculated upon the following
formula:
� S\ c 2 , z. L;c i
1) Forty percent (40 %) based upon the assessed valuation of all real property of each
governmental unit within the Area;
2) Forty percent (40 %) based upon the total area of the property within each
governmental unit within the Area; and
3) Twenty percent (20 %) based upon the population of each governmental unit within t
the Area.
Subdivision 4. Capital Improvement Projects Program and Funding. On or before June 1
Jys' of each year the Board shall prepare a proposed capital improvements program and budget
for projects to be started or completed in the following year as described in the Water Plan and
shall submit the giliaeloi*LiviMiaiiii for approval by the Members. Each proposed
project shall be described and its estimated cost and time for completion shall be provided. Only
projects described in the Watershed Management Plan or its amendments may be included in the
capital improvement budget. Funding in the capital improvement budget shall be calculated as
follows:
1) If money raised by the Special tax levy or by the Storm Water Utility is to be used. for
Capital Projects, the Members shall be provided the opportunity to review and
approve co tt 1e .t p the amount of the tax levy that will be used for Capital Projects
within sixty (60) days of receipt of the Board's Capital Improvement Budget;
2) If a capital project is to be funded wholly or in part by one or more governmental
unit(s), they will be provided the opportunity to review aid comment }on and approve
or disapprove the capital improvement budget within sixty (60) days of receipt of the
Board's Capital Improvement Budget; and
3) If service fees, grants, interest or other funding sources are available the source and
amounts of such funds shall be shown.
the capital improvement
COisidere
Capital p!r� ® ® et 4ach governmental unit shall contribute its
budgeted share of the cost of constructing said capital improvement projects.
Subdivision 5 . Governmental Unit Financing. Members may establish a watershed
management tax district in the Area for the purpose of paying costs of the engineering and
planning required to develop a watershed management plan for the Area. After the plan is
adopted and approved, a tax district may be established for the purpose of paying capital costs of
projects described in the plan (including normal and routine maintenance of projects). If
required, the tax district shall be established by ordinance adopted after a hearing by a local
government unit, following provisions of Minn. Stat. Chapter 103B.
Subdivision 6 7. Reserve Funds. The Board may accumulate reserve funds for the purposes
herein mentioned and may invest funds of the Board not currently needed for its operations in the
manner and subject of the laws of Minnesota applicable to statutory cities. Any and all reserve
funds must be clearly indicated on the annual financial audit provided to the Members.
Subdivision 7 fit. Gifts; Grants; Loans. VLAWMO may, within the scope of this Agreement,
accept gifts, apply for and use grants or loans of money or other property from the United States,
the State of Minnesota, a unit of government or other governmental unit or organization or any
person or entity for the purposes described herein; may enter into any reasonable agreement
required in connection therewith, shall comply with any laws or regulations applicable thereto,
and may hold, use and dispose of such money or property in accordance with the terms of the
gift, grant, loan or agreement related thereto.
big aJa
a.2EC,4)
1) A governmental unit shall have thirty (30) days from receipt of the written decision on the
appeal by the Board to submit a dispute to arbitration by giving written notice to an officer
of the Board;
2) The Board of Arbitration shall consist of three Members, one appointed by the
governmental unit initiating the arbitration, one appointed by the Board and one appointed
by the Chief Administrative Law Judge of the State of Minnesota, if willing to do so and if
not, by the Chief Judge of the Ramsey County District Court. The third member so
appointed shall preside at the arbitration hearing;
3) The arbitration cost of the neutral arbitrator shall be divided equally between VLAWMO
and the government unit initiating the arbitration; and
4) Arbitration shall be conducted in accordance with the Uniform Arbitration Act (Minn. Stat.
Chapter 572), except as modified above.
Subdivision 9. Other Duties. The Commission shall exercise such other duties necessary and
incidental to the implementation of the purposes set forth herein as authorized by the Board.
SECTION VIII
FINANCING VLAWMO
Subdivision 1. Annual Operating Budget. On or before July 1st of each year, the Board shall
prepare a proposed annual operating budget for the following calendar year. The budget shall
provide funds to operate VLAWMO for the next calendar year. The proposed operating budget
and the sources for these funds shall be recommended for approval toreview and comment by the
Members.
The annual operating budget may be funded by one or more of the following:
1) An authorized special tax levy authorized by the State of Minnesota for an amount
approved by the Members;
2) VLAWMO operated Storm Water Utility authorized by the State of Minnesota and
approved by the Members;
3) Annual payment from each governmental unit party to this agreement and other entities
based on an annual assessment as determined in Subdivision 2 in this Section; and
4) Service fees, grants, interest or other funding sources as available.
Each Member shall pay its annual assessment in the following manner:
1) The entire amount shall be due by January 31st of the year due; or
2) One -half (1/2) of each Members entire amount shall be due by January 31 of the year due
and the second
one -half (1/2) of the entire amount shall be due by August 31 of the year due.
Failure to pay the required amounts by the due dates will cause a one (1) percent per month
service fee to be added to the unpaid amount due.
Subdivision 2. Budget Meeting and Approval. The proposed annual Operating and Capital
Improvement budget for the next calendar year shall be prepared by July 1 of each calendar year.
Each Member shall review the proposed operating budget and shall either approve. reject or
propose-an arn—en ed- operating -budt t on or before October 15th of each year. ? y -Fespt se frefr a
,'t � i la€ t a itl�i� }this tin }€ t� i.fld vil be- en be-een sideFed--appre-val-of-the-pfopesed-operating-b-adget,
After final approvalreview of the proposed operating budget by each Member, or failure to
respond by October 15th, and approval of the proposed operating budget by the Board, the
9
\cam zq �� �7
Secretary shall certify and prepare a statement showing the approved operating budget and the
assessed amount to be paid by each Member on or before October 31 of each year.
Subdivision 3. Annual Assessment for Services
The annual contribution of each Member or other entity shall be calculated upon the following
formula:
1) Forty percent (40 %) based upon the assessed valuation of all real property of each
governmental unit within the Area;
2) Forty percent (40 %) based upon the total area of the property within each governmental
unit within the Area; and
3) Twenty percent (20 %) based upon the population of each governmental unit within the
Area.
Subdivision 4. Capital Improvement Projects Program and Funding. On or before June 1 of
each year the Board shall prepare a capital improvements program and budget for projects to be
started or completed in the following year as described in the Water Plan and submit for
approvaireview and comment by the Members. Each proposed project shall be described and its
estimated cost and time for completion shall be provided. Only projects described in the
Watershed Management Plan or its amendments may be included in the capital improvement
budget. Funding in the capital improvement budget shall be calculated as follows:
1) If money raised by the Special tax levy or by the Storm Water Utility is to be used for
Capital Projects, the Members shall be provided the opportunity to review and
vprovecomment on the amount of the tax levy that will be used for Capital Projects
within sixty (60) days of receipt of the Board's Capital Improvement Budget;
2) If a capital project is to be funded wholly or in part by one or more governmental unit(s),
they will be provided the opportunity to review and •approve or-dis -app fevecomment on the
capital improvement budget within sixty (60) days of receipt of the Board's Capital
Improvement Budget; and
3) If service fees, grants, interest or other funding sources are available the source and
amounts of such funds shall be shown.
If the capital improvement budget is approved-as- p. vide - ah €we,- by the Board after reviewing
any comments submitted by the Members. each governmental unit shall contribute its budgeted
share of the cost of constructing said capital improvement projects.
Subdivision 5. Governmental Unit Financing. Members may establish a watershed
management tax district in the Area for the purpose of paying costs of the engineering and
planning required to develop a watershed management plan for the Area. After the plan is adopted
and approved, a tax district may be established for the purpose of paying capital costs of projects
described in the plan (including normal and routine maintenance of projects). If required, the tax
district shall be established by ordinance adopted after a hearing by a local government unit,
following provisions of Minn. Stat. Chapter 103B.
Subdivision 6. Reserve Funds. The Board may accumulate reserve funds for the purposes
herein mentioned and may invest funds of the Board not currently needed for its operations in the
manner and subject to the laws of Minnesota applicable to statutory cities. Any and all reserve
funds must be clearly indicated on the annual financial audit provided to the Members.
Subdivision 7. Gifts; Grants; Loans. VLAWMO may, within the scope of this Agreement,
accept gifts, apply for and use grants or loans of money or other property from the United States,
10
WS — Item 10
WORK SESSION STAFF REPORT
Work Session Item 10
Date: Council Work Session, June 4, 2007
To: City Council
From: Mary Alice Divine
Re: Silvera Memorial in Community Green
Background
Staff was requested to research a memorial commemorating Officer Silvera in the Woods
Edge Community Green. A potential site for a memorial was first reviewed. The specific
site within the green was selected in a grassy area on the western side of the park where
people are inclined to sit on the benches and enjoy the gardens.
The options that have been explored are as follows:
1. A cast bronze plaque is one of the most common and cost effective means of
providing an outdoor memorial with an inscription. It would cost
approximately $350 for a 12" x 12" bronze plaque. The plaque could be
mounted on a permanent fixture such as a stone or brick. Further estimates
would be required to determine the cost of building the foundation.
2. A second option is often used by cities when contemplating a public memorial
or public art. Forecast Public Art is a local non - profit consulting group that
works with cities to determine what is appropriate within their budget. The
consultant matches a Twin Cities artist with the particular project. They have
provided an estimate of services of $2,500 for their services, and
approximately $12,500 for completion of a small scale project. (See attached
Scope of Services.)
3. A third option is to work directly with a local artist. Peter Morales is a
respected sculptor who has made numerous stone public art sculptures. Mr.
Morales has discussed two options (See attached proposal and samples):
• Using natural boulders to create a structure within the park that would
include a sitting area carved into a rock and a hand carved inscription.
He has provided an estimate of $1,525, not including the cost of the
1
material, preparation of the site, or moving of the material. Rehbein
Companies, a local excavator, has offered to provide boulders for the
project. Mr. Morales would select the boulders and Rehbein will
relocate them to the site. The city would be responsible for laying a
natural base in the community green.
• Creation of two seating elements of carved limestone. The larger
seating element would partially surround a smaller one that would
have a planter carved into the middle. This can also include a hand
carved inscription. This option is estimated between $8,700 and
$10,400.
Requested Council Direction
Staff is seeking input and direction for the following:
• Preferred direction based on the options provided
• Pursue additional options
• Budget
Attachment(s)
1. Example of Option 1: bronze plaque
2. Scope of Services from Forecast Public Art (Option 2)
3. Artist's sketches of two stone memorials (Option 3)
4. Artist's Resume
5. Other examples of artist's work
2
oLAQLtr- oPrio1J
Page 1 of 1
http:// www. fortedwards .org/braddock/dowden/rock1.jpg 4/18/2007
Op-r-10,.3 g,
SCOPE OF SERVICES
FORECAST PUBLIC ART
JACK BECKER
Hi Mary,
Thanks for sending this information. From what I can tell you are
looking for a memorial project, possibly using stone, for the grassy
area of the small square site located within a larger area that
contains several "squares" and seating areas.
As you may know, FORECAST is the premier public arts facilitator in the
region, having worked with over 30 clients in the past five years,
including the City of St. Louis Park, New Brighton, Hennepin County
Libraries, the Metropolitan Council, the City of St. Paul, the McKnight
Foundation, neighborhood groups, non - profit facilities, and others. We
have a database of over 2,000 artists and an enormous resource library
at our fingertips to help us serve clients efficiently and
professionally.
I propose the following scope to help you accomplish this in a timely
and cost - effective manner.
As a consultant for the Officer Silvera Memorial, FORECAST will:
1. With information provided by the city council and other key
stakeholders, draft detailed information about the project, criteria
for success, and a list of concerns /desires.
2. Identify three highly qualified artists from the region and obtain
work samples, resumes and statements of interest regarding the project.
3. We will facilitate the review of these three candidates and help
forge consensus in the selection of one artist to commission.
4. We will provide the city a commissioning contract with the selected
artist, including a design phase that gives a clear visual depiction of
the proposed work, cost estimates and timetable for completion. This
contract is subject to review and revision by the city attorney.
5. Once the design phase is complete, we will help the decision - makers
to review and determine whether this will work or if revisions are
required. Once approved, the artist will be paid for the design phase
and implementation may commence.
6. FORECAST will monitor the progress of the artist until installation
of the memorial is complete.
The cost for FORECAST consulting time is $100 per hour. I estimate that
the above scope will require approximately 20 -25 hours over a five
month period. We will invoice monthly for the hours spent. Our
agreement can state "not to exceed" a dollar amount to protect the
client from overtime charges.
The budget for a memorial of this type can vary greatly, from $5,000 to
$50,000.
If stone can be obtained and the city can help with footings and site
work, (especially lighting), this will help reduce the cost. I believe
with some of this help, a high quality memorial that is relatively
maintenance free can be produced for approximately $12,500. The scale
would be small and low to the ground. I imagine taking up about 200
square feet of ground plane.
Keep in mind that highly qualified artists who produce truly beautiful
and lasting art cost more than those who are just out of school. Design
time would likely require 1/4 of the budget, materials 1/2, and 1/4 for
fabrication and installation.
I hope this information is helpful. If you need more information or
need clarification, please contact me at your convenience.
Thanks for this opportunity to work with the City of Lino Lakes.
Jack
N4THkP C..
Peter Morales
708 Vandalia St.
Saint Paul, MN 55114
Artist's Resume
651.253.4907
peter@balamstudios.com
My non - commissioned work touches on the expressive gestures and implied movement of abstracted zoomorphic
figures. The work engages the viewer viscerally, and calls to be touched; visually it is intriguing and
mysterious. My work is strongly influenced by pre - Columbian Mesoamerican art.
Non - Commissioned Studio Work
2006 Sol Rojo (porphyritic conglomerate, 12" x 6" x 10 "). Artist's collection, Saint Paul, MN
2006 Awe (dolomite, 12" x 8" x 8 "). Artist's collection, Saint Paul, MN
2006 Dissemble (Indiana limestone, 16" x 16" x 12 "). Artist's collection, Saint Paul, MN
2005 Leap (granite 9" x 9" x 6 "). Private collection. Saint Paul, MN.
2005 Lord of the Tassel (Indiana limestone 10" x 16" x 20 "). Private client. Saint Paul, MN.
2005 Eternal Return (Mankato limestone 16" x 6" x 8 "). Currently on display at Public Art Saint Paul. Saint Paul,
MN.
2004 Indefinite Present. Basswood. Model for larger sculpture 6" x 2" x 1.5 ". Artist's collection, Saint Paul, MN
2004 King's Knight Bubble Defense. Indiana limestone. 18" x 8" x 8 ". Artist's collection, Saint Paul, MN
2004 Jaguar Head Ball Marker. Polychrome Basswood. 6" x 6" x 3.5 ". Artist's collection, Saint Paul, MN
2003 Twirl (limestone, 10" x 16" x 20 "). Private collection. Saint Paul, MN. Artist's collection, Saint Paul, MN
Commissioned Work/Private
2005 Mediaeval Porphyry Altar Box (porphyritic conglomerate, 14" x 7" x 8 "). Private collection, Saint Paul, MN
Commissioned Work/Public Art
2005 Place for three Friends: Granite boulder seating, 12' x 3' x 2.5'.
Contracted by Landscape architect Regina Flanagan to create boulder seating for her Discovery Garden project at
Alpine Park. My responsibilities included: developing estimate of cost, material selection, developing plan for
fitting boulders to existing scheme, designing special seat to be carved on largest boulder and fitting the
boulders together. Aside from the obvious seat carved into one of the boulders, most of the carving is invisible
as it had to do with fitting the stones closely together, I used a torch and water to erase the tool marks and give
the stone surfaces a weathered look. I worked closely with Ramsey City staff on site whose help was most
needed to move the large boulders. Commissioned by the City of Ramsey for Discovery Garden at Alpine Park,
Ramsey Minnesota
2004 Book Benches: Limestone, dimensions variable.
The Wayzata Public Library and citizens of Wayzata commissioned six book - shaped stone benches for their
Children's Reading Garden. I developed perspective drawings and scale models of benches detailing how they
fit within the existing landscape scheme. I executed the sculptures in my workshop and assisted in
transportation and installation, working closely with Wayzata City staff. Wayzata Public Library, Wayzata, MN
2001 Jaguar Throne: Kasota limestone, 28" x 84" x 36 ".
I was invited by Public Art Saint Paul as part of their Stone Carving Symposium to create seating for Western
Sculpture Park in Saint Paul. I created a 1 inch -to- the -foot model of a crouching jaguar figure. I researched pre -
Columbian sculpture, images of jaguars and visited the large cats at the local Zoo to get a sense of what they
look like and how they move. The final sculpture takes into account the model, the research images and the
requirements for a functional bench. Western Sculpture Park, Saint Paul, MN
Works in Progress
2006 Here Together:Dragon Mural, Totems and Jaguar: Foam, plaster and paint, dimensions variable.
In collaboration with artist and art teacher Jill Michell, and her students at International Academy -LEAP. IA -LEAP
is a Saint Paul Public School that provides education to newly arrived immigrants of high school age.
We are currently creating a series of large -scale sculptures that will be permanently installed in the school library.
Along one wall a 3' by 25' swath of blue floating one inch from the wall will feature six brightly colored
dragon figures in high relief. The dragon images are taken from various cultural traditions. We are also working
on 8 large sculptures of animals that students have been researching in various classes. Dimensions variable
(14" x 24" x 20" — 14" x 36" x 24 "). Project will be completed in May 2006.
Activities
2006 International Stone Carving Symposium. Selected to represent Minnesota in a six -week stone carving
symposium hosting sculptors from: Japan, China, Egypt, Zimbabwe, Italy, Finland, Germany Mexico and the
United States. Sponsored by Public Art Saint Paul. Saint Paul, MN
2006 Arts Off Raymond (sculpture). Show of current work and collaborative work with Jill Michell at 708 Vandalia
St. Saint Paul, MN.
2005 Arts Off Raymond (stone sculpture). Show of current work at 708 Vandalia St. Saint Paul, MN.
2005 Ex -Voto. (Acrylic paint on Steel sheet, 6' x 9') Ex -voto (devotional painting) of miracle received by artist in
October of 1961. Ex -Voto Art Show at Mira Gallery. Fundraiser for Mira Gallery. Minneapolis, Minnesota
2005 Light Dark House: Temporary installation of wood, tarp and plastic sheathing, 8' x 8' x 9.5'.
I executed this work in collaboration with David Wyrick as participants in the Ice Shanty Projects — A Five -week
exhibition of ice shanty architecture, performance, and art on Medicine Lake, Plymouth, Minnesota.
David and I made a rough calculation of how much material we would need and then constructed rectangular and
square panels of wood and tarp of various colors prior to venturing on the ice. On the ice we built the structure
free -form, designing as we went. Sponsored by NoName Productions and the Soap Factory.
2002 Art in the Park. Polystyrene foam sculptures, dimensions variable.
I met with three groups of children ages 10 to 18 at Western Sculpture Park for three days to create large animals
selected by each group. Sponsored by Public Art Saint Paul and the Salvation Army at Western Sculpture Park,
Saint Paul, MN.
Finalist
2005 Central Avenue Public Art Project: Finalist.
I researched neighborhood interest in public art and possible themes for a sculpture along Central Avenue in
Northeast Minneapolis. I made a PowerPoint presentation before the selection panel. City of Minneapolis, MN.
2003 Lowertown Artway. Finalist.
Peter Morales /Artist's Resume page 2
I proposed a sheltered seating element for Lowertown Saint Paul. I presented a series of isometric drawings along
with photographs of the site and researched themes. Public Art Saint Paul. Saint Paul, MN.
Publicity
Abbe, Mary "Artists will make their mark in Minnesota Rocks! Minneapolis Star Tribune, Sunday, March 19, 2006
Abbe, Mary "Wayzata library throws and artistic garden party." Minneapolis Star Tribune, Sunday, August 1, 2004
Abbe, Mary, "Mobile Joins Sculpture Sprouting Around Town," Minneapolis Star Tribune, Sunday, September 9,
2001
Peiken, Matt "Shanty for the chic." Saint Paul Pioneer Press, Sunday, January 15, 2005
Shruti L. Mathur, "The Garden of Readin ", Minneapolis Star Tribune, Wednesday, July 7, 2004
Staff, "Bookish Benches," American Libraries, September 2004
Staff, "Stone Carving Symposium in Western Sculpture Park," Public Art Saint Paul Report, August, 2001
Woodward, Judy, "St. Paul rocks: Exhibit celebrates a city's history that has been carved in stone," Saint Paul
Villager, Wednesday, November 5, 2003
Related Work Experience
2005 Wellstone Memorial. Assistant Sculptor.
I worked as assistant to Philip Rickey, a Saint Paul based sculptor for work done on site in Northern Minnesota. My
responsibilities included collaboration in tool and material selection. Developing models and measuring devices
to fit large stones together. Executing carving and polishing of stone sculptures, helping to oversee other
assistants in grinding and polishing. Assisting in staging, loading for transport and installation of sculpture.
Philip and I worked long hours during many weeks and some weekends, we shared meals, living quarters and a
passion for sculpture and stone for over three months during the process. Commissioned by Wellstone Action.
Eveleth, Minnesota.
1993 -2005 Assistant Sculptor. For Phillip Rickey, Saint Paul based sculptor. Assistance in large public art projects,
gallery pieces, large outdoor sculpture. Media: Wood and stone.
1992 -2004 Assistant Sculptor. Myklebust- Sears. Assistant for large public art projects for Minneapolis /Saint Paul
based Artists, Andrea Myklebust and Stan Sears. Projects installed in the Twin Cities area, Greater Minnesota
including Rochester and Duluth. And out of state installations in Florida, California, Iowa and North Carolina.
Various media including: stone, bronze, wood, glass, masonry, and terrazzo.
Education
1993 M. A. Hispanic Literatures and Linguistics. University of Minnesota. Minneapolis, Minnesota.
1986 B. A. Biology. Ripon College. Ripon, Wisconsin.
Provenance
I was born and raised in Guatemala, Central America. I am a citizen of the United States. I speak French, Spanish
and English.
Peter Morales /Artist's Resume page 3
Page 1 of 1
(Jrr lv to --E- 5
• (/(s or NA-Tagtri- Goix-t--aeP-5
. C14-JsD ce A---10 6-
Nb CA-f-A)gb X-NekrTlvN1
http: / /www.balamstudios.com/ images / PublicArt /PeterMoralesAlpinePark.jpg 1/22/2007
Page 1 of 1
PEA Po I_-F s -
()-2°". C?
http: / /www.balamstudios.com/ images / PublicArt /PeterMoralesBookBenches.jpg 1/22/2007
Exterior Work - outdoor sculptural seating Page 3 of 5
Stoneboats, Minneapolis, MN
Granite, 1992. Each: 15' x 3' x 3'.
(Click thumbnail for larger view.)
accessible and designed to
be explored by touch.
Return to Portfolio
�I ME srQ Ni
A( PLC.
Two sculptural benches
designed for the Nicollet
Mall in downtown
Minneapolis. These carved
granite benches combine
the architectonic forms of
boats with the sinuous
muscularity of fishes, and
are carved of native Iridian
granite from Cold Spring,
Minnesota.
Return to Portfolio
Siscowet Bench, Duluth, MN
Bronze, 1990, 11' x 7' x 2'.
(Click thumbnail for larger view.)
Installed on the waterfront
in Canal Park, Duluth,
Minnesota. An air mattress,
ropes, water - surfaced map
of Lake Superior, propeller,
and native fish species
make up this bronze bench
on the waterfront.
Return to Portfolio
http: / /www.myklebust- sears.com /exterior2.html 4/18/2007
•
•
•
8. Goal: Maintain safe neighborhoods and community
areas.
a. Specific Performance Objectives to be pursued during the
remainder of 2007 and into 2008 as necessary:
(I) Continue to promote the importance of establishing
a sense of security throughout the community and
maintaining support for the Police Department, and
community involvement of the following groups:
• Explorers
• Reserve Officers
• Office Volunteers
io -(;,,,A (6,
( Deleted: Fire Department,
• Public Safety, Citizen Commission Deleted: City
• Chaplain
• Community Emergency Response Teams
• Neighborhood Watch
• National Night Out
• Business Watch
a. Key Action Steps: • { Formatted: Indent: Left 1.5
i. Complete assessment of departments' volunteer needs
and recruitment strategies
b. Lead Party: Police Department Staff
Key Contributors:
i. Existing Volunteers
c. Funding Source:
i. State Grant
ii: General Fund
(2) Adopt a Crime Free Multi- Housing Ordinance.
a. Key Action Steps: - I Formatted: Indent: Left: as'
i. Draft Ordinance
ii. City Staff /Atty Review
b. Lead Party: Police Department Staff
Key Contributors:
i. City Staff
ii. City Atty
iii. City Council
c. Funding Source:
i. General Fund
(3) Adopt an 800 Megahertz Public Safety Radio
System Ordinance, (—Deleted: (800 MMegaeeir,;
a. Key Action Steps:
i. Draft Ordinance
ii. City Staff/Atty Review
iii. Submit for countywide adoption
b. Lead Party: Police Department Staff
Key Contributors:
i. City Staff
ii. City/county Atty
iii. City Council
iv. County Board
c. Funding Source:
i. General Fund
(4) Update Emergency Plan during 2007 and conduct a
functional exercise of the plan in 2008.
a. Key Action Steps:
i. Research and update plan
ii. Update related ordinances
iii. Practice Plan
b. Lead Party: Police Department Staff
Key Contributors:
i. Centennial Fire District
ii. Public Services Staff
iii. Community Development Staff
iv. Anoka County Emergency Management
( Formatted: Indent: Left: 0.5"
c. Funding Source:
i. State Grant - Homeland Security and Emergency •
Management
ii. General Fund
(5)
Review Task Force options pertaining to the
following areas:
• Gang,
• Drug,
• Violent Offenders,
• Cyber Crimes
• Financial Crimes
a. Key Action Steps:
i. Statistical analysis and historical review of
crime in Lino Lakes
ii. Projection of future crime trends
iii. Evaluate applicability of Task Force Utilization
b. Lead Party: Police Department Staff
Key Contributors:
i. Public Safety Citizens Commission
•
•
•
•
Formatted: Indent: First line: 0"
( Deleted: Task Force
( Deleted: Task Force
Deleted: Task Force
( Formatted: Bullets and Numbering
Formatted: Bulleted + Level: 1 +
Aligned at: 2.5" + Tab after:
+ Indent at 2.75"
Formatted: Indent: Left: 2.5
Formatted: Numbered + Level: 1 +
Numbering Style: a, b, c, ... + Start
at: 1 + Alignment: Left + Aligned at:
1.5" + Tab after: 1.75" + Indent at:
1.75"
Formatted: Numbered + Level: 3 +
Numbering Style: i, ii, iii, ... + Start
at: 1 + Alignment: Right + Aligned
at: 2.63" + Tab after: 2.75" +
Indent at: 2.75"
Formatted: Numbered + Level: 1 +
Numbering Style: a, b, c, ... + Start
at: 1 + Alignment: Left + Aligned at:
1.5" + Tab after: 1.75" + Indent at:
1.75"
Formatted: Indent: Left: 1.75'
Formatted: Numbered + Level: 3 +
Numbering Style: i, ii, iii, ... + Start
at: 1 + Alignment: Right + Aligned
at: 2.63" + Tab after: 2.75" +
Indent at: 2.75"
•
•
•
ii. Local, County and State Law Enforcement
Agencies.
c. Funding Source:
i. State/Federal Grants
ii. Shared Cost Formulas with Participating
Agencies
iii. General Fund
•
•
Formatted: Numbered + Level: 1 +
Numbering Style: a, b, c, ... + Start
at: 1 + Alignment: Left + Aligned at:
1.5" + Tab after: 1.75" + Indent at:
1.75"
Formatted: Numbered + Level: 3 +
Numbering Style: i, ii, iii, ... + Start
at: 1 + Alignment: Right + Aligned
at: 2.63" + Tab after: 2.75" +
Indent at: 2.75"
Formatted: Indent: Left: 2.63 ",
Hanging: 0.5"
Formatted: Indent: Left: 2.5 ",
Hanging: 0.5"
1l 5 114 (e" U'( 1.'/`1/ e 7
ceg fin
May 18, 2007
Rick DeGardner, Mayor Bergeson, Ms. Carlson, Mr. O'Donnell, Mr. Reinert
Public Services Department
Lino Lakes City Hall
600 Town Center Parkway
Lino Lakes, Minnesota 55014
To Whom It May Concern:
This letter is to thank the City of Lino Lakes for installing a sign on our street that
alerts drivers that a "child with autism" resides nearby.
I requested the sign when it was recommended by a teacher at Blue Heron
Elementary. I spoke with Mr. DeGardner, who was excellent to work with. He responded
in a thoughtful and prompt manner. I hope that other cities will follow the example Mr.
DeGardner set in meeting the needs of citizens with disabilities.
The sign has had the intended effect. Motorists are slowing down and paying
closer attention to their driving.
Sincerely,
Unifer M. Miller
6918 Glenview Lane
Lino Lakes, MN 55014